The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1951-01-25
Price Controls Nearer AS
Johnson Heuds The ECA

| Washington IPA) - Prospects
for price controls seemed nearer
Jan. 19, as a new boss for the
i Economic Sterilization Agency was
/ named. He is Eric Johnston, pres
ident of the Motion Picture Asso-
lciation. Johnston is the man who
larranged the off-the-record meeting
| i'm New York recently between top
labor and industry leaders.
| Johnston was appointed by Pres
ident Truman right after Alan Val
entine, to no-one's surprise, resign
ed as ESA head. He said he quit
because of differences Of opinion
on how and when to put overall
price and wage controls in effect
He thus brought into the open what
has been said off the record foI
weeks-that Valentine had been
rowing not only with Michael V
| lDiSalle, price administrator, but
also with Cyrus Ching, wage board
head.
| Nor had the fights been just
over the timing of controls, it was
reported There had been a sharp
difference Of opinion over whether
to announce wage and price con-
trolls simultaneously, and more inn
portant, over just how much auth
ority the wage board would have
In fact, the United Labor Policy
Committee had given notice that
unless the wage board got real
authority, labor would boycott the
board. Valentines replacement by
Johnston, therefore, was more than
a hint that there's gonna be some
lchanges made"
| However, how much Johnston's
appointment would speed controls
was still uncertain. Charles +. Will
son, director Of Defense Mobiliza-
ton, said he thought Johnston's APP
pointment would speed up "the
process of determination of the
form controls will take. But then
he added that Johnston would have
to have chance to study the stu
alton, and that he could not say
whether any plan would be put in
effect by Feb. /. Nor would he
make a guess as to any date. He
said there has been no decision on
unconstitutional controls versus
selective controls. He wouldn't even
say that a wage-price freeze would
result from the studies he said
Johnston will start at once.
A while back, Valentine vetoed
a plan by Disable for an immediate
30-day freeze. The week of Jan. Is
there had been rumors that CON
trolls were due soon, with possible
rollbacks of some prices to Jan. /.
Disable was reported as saying con-
trolls could be started within two
weeks, and Valentine holding out
for Feb. Is or March /. There were
reports that some selective controls
might be ordered within a week,
on such items as steel scrap. In
anticipation Of wage-price freeze
orders, ESA had announced l3
regional offices would open be-
tween Jan. 26 and Feb. /.
About the only prediction Wilson
would make was on rationing. He
told the Senate Small Business
Committee Jan. l8 that rationing
was unlikely. "If America can pro-
duce as think it can produce" he
said, we can put off that evil
day"
Meanwhile, pressure for controls
mounted, as the Bureau of Labor
Statistics revealed that retail food
prices reached a new record high
between Dec. 15 and Jan. 2, with
the index at 21S.9, one point above
the previous high mark of July 10,
l948. The index was SO points over
the pre-Korean level.
Average wholesale prices went
up again, for the tenth straight
week, to hit a new all-time high of
1857, up 3 percent for the week
ended Jan. l6, and 2.3 percent
above a month ago, 1879 percent
above pre-Korea, and 1S percent
above year ago. These wholesale
prices will be reflected in higher
retail prices later.
Macy's in New York, worlds
largest department store, took full
page newspaper advertisements
urging people to quit buying so
much, warned of the dangers of
fear buying, and came out for
across the board controls. The
Super Market Institute, claiming
to represent $500 owner-managed
supermarkets, urged a general
price ceiling. Representatives of a
million retail stores said if price
controls do come they ahould allow