The Daily Alaska empire. [volume] (Juneau, Alaska) 1926-1964, 1951-01-27
MOVE ONLY
ST0pGAp IS
REPORT NOW
Highest Levels Of Period
from Dec. 10 through
January IS
BY MAX HALL

WASHINGTON, jan 81 LIP -
The government ordered a long-ex-
pected temporary freeze of prices
and wages last night and then turn
ed today to the mountainous task
of making the controls work.
The Office of Price Sterilization
| ops, headed by Michael " Di-
Sale, flashed an SOS. to the FBI
| and other bureaus for help in en-
forcement.
President Truman ordered all
Federal agencies to pitch in as
needed.
One official said the OPS plans
a ruthless enforcement effort at
| the outset"
Oddly, at the same time, the OPS
enforcement chief suddenly re-
signed. He is Rear Admiral John H.
Hoover, retired Naval officer. His
treason for quitting was not clear.
Twin Freezes
The twin freezes were welcomed
by many men in Congress and in
business but labor leaders raised
! big protest over the wage freeze.
They want flexible controls that
will permit tagging wages to catch
up.
| The Wage Sterilization Board
| (WSB), which didn't order the wage
freeze and took no responsibility
for it, renewed its work today on a
flexible formula to replace the
freeze.
In a dramatic and turbulent set
ting, nearly exhausted officials
gave out the news of the freezes
/ piecemeal. The process lasted from
is pm. until nearly o'clock this
morning.
! All Prices Not Hit
The price freeze does not apply
to all prices. A long list OF items,
including many foods, will still have
leeway to rise.
But most prices were frozen at
the highest level of the period from
Dec. 10 through JAN rs day be-
fore yesterday. Since very few
things have dropped in price dur
ing that period, the general effect
is to freeze Jan. rs prices.
Wages, Salaries
Wages and salaries were simply
frozen as of Jan. Is, and no exemp-
tons were listed in the order.
Board Chairman Cyrus S. Ching
announced the wage freeze to the
press but he was careful to point
out that it was signed by Economic
Stabilizer Eric Johnston who hand
ed him the order Just 10 minutes
before the announcement was made.
Only Stopgap
The price freeze is only a stopgap,
too, and will melt gradually away
as soon as separate orders can be
prepared for various kinds of goods.
The only separate orders now in
existence are on automobiles and
hides. But plenty more orders are
coming. Edward Phelps, assistant
price director, said that within 80
days, most retailers and some
wholesalers will be under new or
ders controlling their sales mar
gins.
The freeze order does not apply
to farm prices of live animals and
other raw, Impressed goods.
Prices As Are
But certain foods, like beef. veal,
lamb, and pork, come under the
freeze that is, the professor, the
wholesalers, 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 a rise in the farmers price.
Some examples: Bread. eggs, poul-
try. fresh vegetables. peanuts.
oranges.
Exemptions
A number of items are specifical-
ly exempted from price controls by
the Defense Production Act. For
example, professional fees, insur-
ance rates, freight and passenger
rates, utility rates. real estate prices,
and the prices of newspapers. books.
magazines, motion. pictures, theater
tickets, and advertising rates charg-
ed by radio and television stations.
Rents are not controlled under
this order. but many areas OF the
country are still under Federal or
state rent controls.