Evening star., 1951-04-02
Economic Committee
Asks Drive Against
'6aIIoping Initiation
By Robert K. Walsh

Demands for a tighter wage
price control law and sharper cuts
in nonmilitary spending came
from the Senate House Economic
Committee today in a drive
against "galloping imitation"
The joint committees annual
report-adopted unanimously by
Democratic and Republican mem
bers but still containing many
differences of opinion-calied for
a special study of farm and food
prices.
It asSailed as IAN engine Of in
flation" the so-called escalator
wage contract provisions which
provide for automatic wage in
creases in accordance with rises
in the cost of living.
Rigid Economy Asked.
Calling for rigid economy in
Federal spending, the committee
frowned on some of the non-
military projects recommended by
President Truman in his economic
report to Congress last January.
In particular. the committee urged
a general reduction in dollar laid
grants to States.
Higher taxes were advocated by
the committee headed by Senator
O'Mahoney, Democrat, of Wyo-
ming. These should be high
enough to put the defense pro-
gram on a pay-as-you-go basis,
the report stated. A foot note,
signed by some of the members,
suggested an immediate tax in
crease to bring in $40 billion.
Senator Benton, a committee
member who entered some objec-
tions in the report, issued a separ-
ate statement last night calling
for congressional investigation
OF "chiselers and prof1teers." That
was part of f1ve-way national
crusade he suggested against in
filtration. -
Other points in his plan were
$40 billion tax increase, a Govern
ment requirement for posting of
retail price lists in all stores, a ma
tional committee of motion pic
ture, television and radio industry
officials to put across an anti
imitation program, and that all
local communities have commit
tees of housewives and others to
back up stabilization officials.
The economic committee de-
clared that imitation has knocked
out of the sky a large fraction of
the airplanes which our taxes
might otherwise have bought"
Unless inflation is halted, the
committee maintained, it will open
the way for "the Kremlin to de-
stroy the economic basis of this
Government and thereby the, hope
of a free world"
The reports handling Of the
escalator wage question drew some
dissent from Senators Douglas,
Democrat. of Illinois, and Benton.
Those Senators contended that the
escalator wage increases resulted
from price increases and did not
cause them.
Partial Report From Benton.
The reports demand for posi-
tive action to stabilize and, with
out Government subsidies, to re-
duce the cost of living" drew a
partial protest from Senator
Benton. He suggested some Fed
eral payments to producers and
professors to hold down retail
prices, particularly of food.
The joint committee includes
four Democratic and three Re-
publican Senators and four Dem
ocratic and three Republican
House members.
Senator Taft, Republican, of
Ohio, member. declared in ad-
vance of the report that it would
show that Democratic members
had done "a complete right about
face" from President Truman on
economic policy.
In its recommendation for more
taxes, the committee said they
may help to put a damper on
price increases progressively gnaw-
ing away at civilian income and
Government income
O'Mahoney Sees No Shift.
Chairman O'Mahoney, in a sep
arate statement, said there was
mo shift at all" in the Democratic
position, In view of changes in
the inf1ationary picture.
Criticizing price control law
ban on price restrictions for ag-
ricultural commodities under the
parity level, the committee said
this "tends to gear agricultural
prices to the highest level of in
dustrial prices"
1t described the parity provi-
sion and the wage escalator
clauses as part of IAN unbeatable
mechanism of built-in imitation