Evening star., 1951-08-05
As Senator Moody Sees 1t
By Blair Moody

|
suming public against higher
prices, and the Nations free
incentive system from being
burned out by spiraling imitation,
will be renewed in Congress during
the coming week.
The new National Production
Act, which President Truman
called the worst he had ever been
forced to sign, is glaringly def
cient in at least three respects
It's price control provisions were
so riddled by the congressional
coalition as to guarantee higher
prices, make black markets in
evitable, increase taxes, and dis
rupt the entire stabilization
process.
The Senate Banking and Cur.
rency Committee will meet shortly
to decide whether to attempt to
correct just one of those gross
blunders, or urge Congress to re-
verse itself on several important
points.
| Consumer Is Left Out.
The new law protects" nearly
everybody except the consumer.
The assumption of the inflationist
coalition seems to be that what
ever is going on under the hood,
the select few in the lush back
seat will enjoy the ride.
Here are the issues that will be
before the Banking Committee:
/. Restoration of slaughter quo
tas, eliminating the so-called
black market amendment which
stabiliZation officials say will make
adequate control of the price OF
meat impossible unless it is
changed.
|. The change already has beer
proposed by Senator Maybank
Democrat, of South Carolina, com.
mittee chairman, and Senator
Capehart of Indiana, senior
Republican on the committee
The present laws provision wa,
adopted. despite repeated warn.
ings by Senator Anderson, Demo
crat, of New Mexico, under tn,
apparent misrepresentation tina
OPS was seeking to reduce th'
slaughter of beef at a time whe1
prices were high.
Distribution Involved.
In the case Of some, this was
case of sheer misunderstanding O
the provision. Specifically, a limi
tation of, say, 80 per cent on tn,
amount of beef a packer has tt
turn out, in comparison with las
years slaughter, would appear t.
be exactly what opponents of tn,
lquotas charged.
/ Actually, the quotas are a de
Ivice not to reduce the amount O
meat produced. but to keep wha
is produced in legitimate channels
to distribute the kill fairly amonI
large and small professors, to keel
it out OF the black market.
i Quotas were based not on hoy
much OPS thought should b
slaughtered, but on actual ship
mentS Of cattle. If 80 per cent O
last years shipments were movin
!, into the pens, each Slaughtere
would be quoated at 80 per cent
II ITO per cent as many as 1876
were coming in, at ITO per cent
AS many small slaughterers hav
been vigorously pointing out, tha
prevented some packers, advan
tagged by size or geographical loca
ton, taking nearly all the meat
1t also provided checks agains
meat getting into the hands O
Iillegitimate slaughterers who ig
more price ceilings. The new May
bank-Capehart amendment woul,
now restore the quota power.
| 2. The manufacturers pricin
amendment, introduced in tn
: Senate-House conference by Sen
ator Capehart, which such mobili
zation officials as Messrs. Wilson
johnson and Disable have sal
: would make the whole effect t
check prices in that area unen
forceable. The President charge
it would crash through price cell
ings indiscriminately, like bull
dozer. i
This provision, too, has the rim
of sweet reasonableness when rea
specifically. 1t sounds, at frs
blush, very similar to Eric John
lston's pricing formula which
knocks out. In practice, however
it would be very different.
The Johnston formula provide,
that price ceilings shall not b
lower than the pre-Korean bas
! price. plus pre-Korean profit mar
gins, plus actual increases In la
/ hNys opoI a~e&n Fr4l.