Evening star., 1951-01-13
Truman Controls Plan
|AssaiIed in Congress-;
Tax Program Praised
By the Associated Press

VIII
BY the Associated Press
Congress members today cou.
pied sharp criticism of the admin.
istration's handling of the wage
price problem with praise fol
President Truman's stiff tax-boos
call.
One of the strongest blasts al
the wage-price control issue came
from Chairman OMahoney of thu
Senate-House Economic Commit.
tee, who usually is an enthusiastic
supporter of White House policy
on such matters.
He declared the economic re.
port which Mr.. Truman sent tt
Congress yesterday contains ap.
palling evidence of the progress o.
imitation" but mo record of any
positive steps taken as yet to hole
the line against imitation"
Senator O'Mahoney called TO,
immediate and general wage-prict
controls and said failure to &C
now could be disastrous" to tht
Nations economy and security
His theme Of criticism was voiced
too, by Senator Humphrey, Demo.
crat. of Minnesota and severa
Republicans.
Stats Being Gathered.
The President, in his economi,
report, told Congress that Gov.
ernment staffs are being gathered
to apply broader controls" ovel
prices and wages. At presen
controls are in effect only in tn,
automobile industry.
In the case of prices" Mr.. Tru.
man said, ."the general polio.
must be to hold the price lin,
with the utmost vigor."
That. Senator Flanders, Repub
lican, of Vermont commented, il
a good policy. ''but the admins
tration certainly isn't follow
ing it."
Senator Ives, Republican, O
New York said the President ha
been "derelict in setting up con
trolls under the authority which
Congress gave him months ago.
Senator Ives added that under tn,
circumstances "it i'll behooves hin
(the President) to cali for tn,
utmost vigor."
Capehart Demands Controls.
Senator Capehart, Republican
Of Indiana also demanded tina
Wage-price controls be imposed
across the board Immediately. 81
did Senator Bricker, Republican
of Ohio.
Senator O'Mahoney announced
that the Joint Economic Commit
tee, which he heads, will hole
public hearings on the genera
situation starting January %. HI
said the Government witnesse!
would include Charles E.. Wilson
director of defense mobilization
Alan Valentine, economic stabil
lzation chief, and Michael v. D
Sale. price administrator.
IF imitation continues to gail
cumulative force. it will not onl,
multiply the cost of the defens
program-it will not only under
mine production, destroy conf
dence and impair the value of tn
dollar-it will generate new fric
ton and economic strife and vii
become here at home the destruc
tive instrument that made it pos
sible for the Communists to tax
over Russia :" Senator O'Ma
honey said.
He added that unless imitation
is checked, taxation in the en'
will be unable to raise the sum
that every observer agrees ar
necessary"
Chairman George, Democrat, o
Georgia, of the Senate Financ
Committee, declined to speculate
on how big tax bulge the econ
omy will stand. But he told /,
reporter it would be futile to in
crease taxes without strong wage
price controls. He said such con
trolls should have been impose
by now.
Flanders for Tax Boost.
Senator Flanders said he goe
along with the President on a BIZ
tax increase. He said it shoult
start with a so per cent boost il
corporation taxes.
Senator Capehart said:
Il am in favor of increasing
taxes to whatever extent required
to offset the spending which will
be necessary. am 100 per cen
for pay-aS-you-go."
/ Senator Douglas, Democrat, O
Illinois put it this way:
1T is absolutely necessary t,
meet the added cost of the defens
program out of taxes, without bor
rowing"
Majority Leader Mcfarland salt
the budget must be balanced a
soon as possible and that 1--WE can
go on indefinitely with deflci
spending"
Mr.. Truman did not say how tn
taxes he has in mind should b.
raised, nor did he cite the amour
of increase he wants. He plan
to deal with those matters in /;
tax message later.