Evening star., 1951-04-26
Truman Ready 10 Ask
Tighter Price Controls;
May Offer Plan Today

FloI VIICl FloH IVudY
President Truman is ready will
his new program for snoring vi
the sagging American pocketbook
In move to check skyrocketinl
living costs and strengthen tht
defense economy, the President
today or tomorrow-will send {
message to Congress asking fol
tighter food price controls, broad.
ened rent curbs and more power.
to deal with violators of mobiliza.
tion orders.
Bills will be introduced immedi.
ately to carry out the program
which entails revision of the De-
tense Production Act, which, fol
the most part, expires June 80, but
tough Shedding is forecast in Con-
greSs.
Chairmen Maybank and Spence
OF the Senate and House Banking
Committees, who got preview
Of the new plan at White House
conference late yesterday, said
they would start hearings on May
z and 8. respectively.
Wilson to Testify First.
Defense Mobilizer Charles e.
Wilson will be the first witness
before both groups and other Gov
ernment witnesses will follow. It
is hoped to get the Government
presentation concluded the first
week, and then move on to other
principals. Senator Maybank said
he anticipated plenty OF "argu-
nent."
The White House session was
attended also by Mr.. Wilson, Sta
bilization Administrator Eric
Johnston and Price Controller
Michael Disable.
Chairman Maybank sketched
these salient points of the pro-
posed legiSlation-barring last
minute changes.
/. A new formula for farm par
ity, which would "freeze" levels
at the start of the crop years for
various products, instead of pro-
viding monthly adjustments.
2. Strengthening rent control
on homes and extending the pro-
gram to commercial sites.
8. VERY much stronger" en-
forcement and penalty provisions
covering wage-price controls and
boarding of essential commodities.
Farm Subsidies Proposed. 3.
4. Payment of Government sub
sides on some imported agricul-
tu~al commodities to hold down
retail prices. No specific items are
listed, but Senator Maybank said
the administration might have in
mind coffee and cotton.
5. Authority for the Govern
ment to construct defense plants
in cases where 100 per cent Of
the output would go to the armed
forces and where private industry
is unable to do the job.
Mr.. Wilson said there was no
"freeze" on parity in the bill. but
his difference with Senator May
bank was seemingly a matter of
Interpretation. Parity is the for
nula designed to give farmers a
fair return in relation to the prices
they pay for industrial items.
Geared as it is to industrial costs,
it is flexible. The law now pro-
hibits ceilings on farm products
until they reach parity. Some now
are above parity and have been
placed under ceilings. Others still
are below parity.
Other Provisions Outlined.
In addition to the legislativeI
framework outlined by Senator
Maybank, other sources said the
bill probably would call for:
Authority for the President to-
decontrol either prices or wages
on selective basis, without re-
gard to a provision in the present
law which says wage and price
curbs must be removed stimuli
taneously in any given field:
Power for the President to con-
troll commodity speculation; and
Credit control on the purchaseI
of existing housing instead of only
new dwellings as at present.
Mr.. Wilson told reporters the
administration will seek no change
in the Wage Sterilization Board
provisions or other labor aspects
of the control program.
AS for the bill in general, Mr..
Wilson called it stronger than
the present law" and said "it will
plug some loopholes in controls" "
Such organizations as the CIO
and the AFL have declared one of /
the biggest loopholes in the exist
ing law is the section dealing with
farm and food prices. Farm State
members Of Congress and farm
organizations have disputed that.
AS explained by Senator May
bank. the new proposal calls for
freezing parity for each crop at
the level prevailing at the start
of the marketing season for that
crop. l.