Evening star., 1951-02-02
Sterilization Agency
Seeks Replacement
For Stopgap Freeze
By jones Y. Newton

BY jones 7. Newton
Government stabilization Off
cials today tackled the compli-
Gated problem of replacing the
week-old price-wage freeze with
more permanent regulations aimed
at controlling living costs.
The plan Of Price Director
Michael V. Di Sale was to re-
place the general freeze with more
specific ceiling prices on the mil
lions of products. to be set on an
industry by industry basis. In
that way Mr.. Di Sale hoped to
rollback some prices from the high
level Of the freeze.
Chairman Cyrus s. Ching's
Wage Sterilization Board was still
struggling to work out a general
formula or yardstick for wage and
salary control in which pay
raises will be pegged at about 10
per cent above the Korean
level. Differences between labor
and industry members of the
board were delaying agreement on
a formula.
Military Items Exempted.
The first break in the week-old
price freeze came late yesterday
when the Office of Price Stabiliza-
tion Of Mr.. Disable announced
that all strictly military items
will be exempted from ceilings
That was in line with procedure
followed in World War II.
Shortly afterward the agency
approved an increase of from IS
to 80 cents per ton in the price of
coal.
officials said exemption Of mill
tary goods from control would
have little. If any, effect on the
prices of consumer goods or the
cost Of living. Military prices still
will be subject to control through
contract negotiations or later re-
negotiations by the Defense De-
partment to prevent excessive
profit.
Officials said that military pur-
chases were released from the
freeze "in order to insure that
price controls shall not interfere
with the defense effort"
Does Not Affect Components.
The action abolished ceilings ut
least until April l on a long list
of goods and services peculiar to
needs" These ranged
from secret weapons" and ifs
sionable materials" to aviation
gasoline. bombs. naval ships.
electronic equipment, armament
and military trucks.
The exemption does not affect
many of the component parts
which go into manufacture OF
military goods. However, it does
permit Mr.. Disable to raise ceilings
on such things whenever it ap-
pears that the ceiling price con
components) impedes or threatens
to impede" defense production.
Coal prices were raised to COM
pensate coal producers for the
increase in miners pay which be-
came effective yesterday.
1t will have the effect of per-
mltting an average increase of
about Is cents ton on soft coal
and of about 80 cents per ton
on hard or anthracite.
Price officials believed, however
that prices might not be raised
TO the limit because of competi-
ton with other fuels. oil and gas
Wrestling With Wage Problem.
The action yesterday applied
only to producers. Retail prices
will be lifted within few days
to conform to the higher producer
prices.
A few hours before ceilings were
dropped on military buying, the
Wage Sterilization Board-like
OPS a division Of the Economic
Sterilization Agency-approved q
"cost of living" pay boost of :
cents an hour for 10000 workers
in California plants of the North
American Aviation Co. This firm
has large military contracts.
The board made it clear. how
ever, that the approval did not
mean it had approved the genera
principle of cost of living" boosts
in the future.
Instead. WSB continued te
wrestle with numerous proposals
on which to base the Govern
ment's future wage policy.
Board Sharply Split.
There were continuing indica-
tions that the nine member board
was sharply split over just what te
do.
Ottlcials close to the situation
believed, however. that WSB even
tually would come out with a for
mula permitting a percentage pay
boost-possibly about 10 per cent
for all workers who have not
been given increases since some
specified date in 1850.
Mr.. Di Sale, meantime, CEN
tered his attention on a solution
to the question: What to dc
about meat and other food prices.
Spurred on by a report from
the Bureau of Labor Statistics
that food prices reached an all.
time peak during the first two
weeks of January. Mr.. Di Sales
lieutenants set March l as a prob.
able target date for imposition o1
ceilings. at all levels, on meat anc
other food prices where Fedora,
law permits.
RaIfimnrn planf Fire