Evening star., 1951-01-27
Controls
Continued From First Page.)

and enforcement of controls most
officials believe they will have to
employ many thousands.
The twin freezes were an
nounced in a dramatic and con-
fused setting after weeks of OFF,
cial hesitancy over whether to
take firm control action. The news
was given out piecemeal and the
process lasted from a 6 pm. news
conference until nearly o'clock
this morning when the last parts
of the price order text were given
out.
The wage order was signed by
Eric Johnston, the new economic
stabilization administrator, be-
cause the three labor members of
the Wage Sterilization Board re-
fused to approve the freeze.
But Chairman Cyrus S. Ching
of the Wage Board took part in
the news conference with Mr.. Di
Sale, having been handed the
wage order 10 minutes before by
Mr.. Johnston, who did not ap-
pear.
No Exceptions Listed.
Wages and salaries were simply
frozen as of January Is and no
executions were listed in the Or
der.
Thus Mr.. Ching's board was
under terrific pressure for speed
in completing the flexible control
formulas. There is grave threat
of unrest until the rules under
which wage increases will be al
lowed are issued.
Pending completion of the con-
trolls plan, many wage raises al
ready agreed to will be held up,
including the new $1.60 raise for
John L. Lewis 100000 coal miners
and the boosts to be given some
5000 telephone workers here.
: It was a near certainty, how
ever, that both new contracts will
come within the terms of the
wage formula covering "malad-
justments" which is to be issued.
That formula generally is ex-
pected to call for general pay in
creases of about 10 per cent from
the start of the Korean war to
date.
Rail Workers May Be Affected.
About 100000 operating rail-
road workers also apparently are
at least temporarily affected by
the freeze. Their four unions so
far have refused to approve a
tentative agreement giving them
wage raises.
Mr.. Ching announced the wage
freeze to reporters, but he was
careful to say that it was signed
by Mr.. Johnston, whose Economic
Sterilization Agency has policy
control over both the Wage Board
and Mr.. Di Salle's price office.
The price freeze will be replaced
gradually and as soon as separate
orders can be prepared for various
types Of goods and services.
More Orders Are Coming.
The only separate orders now
in existence are on automobiles
and hides But more orders are
coming. Edward Phelps, assistant
price director, said that within
80 days, most retailers and some
wholesalers will be under new
orders controlling their sales
margins.
The freeze order does not ap-
ply to farm prices of live animals
and other raw, Impressed goods.
But certain foods, like beef.
veal, lamb and pork, come under
the freeze-that is, the professor,
the wholesaler, and the retailer
must keep the price as it Is, at
least for the time being.
On most foods. however, prices
can be raised, all the way to the
consumer, whenever necessary to
reflect rise in the farmers price.
Some examples: Bread, eggs,
poultry, fresh vegetables, peanuts,
oranges.
Number of Items Exempted.
A number of items are specif1-
cally exempted from price controls
by the Defense Production Act.
For example, professional fees, in
surance rates, freight and passen-
ger rates, utility rates, real estate
prices and the prices of neWspa-
pers, books. magazines, motion
pictures, theater tickets and ad-
ertising rates charged by re
and television stations.
Rents are not controlled under
this order, but many areas OF the
country are still under Federal or
State rent controls.
Mr.. Di Sale said there are plen-
ty of goods in this country, and
rationing is not planned in the
near future, and maybe not at all
Seeks to Avoid Strikes.
Issuance of the price freeze was