Evening star., 1951-01-27
Pay and Price Freeze
Expected 10 Melt as
Formulas So|idify
By jones MARROW
Associated Press Stoff Writer


isn't a frozen freeze. It's guar
anteed to melt a bit.
For example: Wages for som
people will be allowed to 60 highe
although they we're frozen a
where they were on January 25.
And the prices of some food
are going to be higher, too. Fiji
was all understood when tn
freeze was put on last night.
The Government acted in ;
desperate rush to stop the mao
dash of living costs. Congress an,
the public were yelling for action
So the Economic Stabillzatio
Agency didn't have time to worl
out what was fair for every item
and every person in detail.
1t decided to slap on the freeze
first and worry about the details
later, hoping the freeze, incom-
plete as it is, would put a biz
brake on imitation.
Now, although living costs ma,
still go up a bit, they'll probably
inch along where before they were
salloping over fences without &
bride.
Many Have Not Had Raises.
Start with wages. Eric Johnston
is boss of ESA, which has two
branches-the Office of Price
Sterilization and the Wage
Sterilization Board.
So Michael V. Di Sale, tht
price boss, and Cyrus S. Ching
chairman of the wage board
are under Mr.. Johnston.
Mr.. Ching's board has nine
members: Three representing la
Dor, three representing business
and three representing the public
A number of workers haven't
received raises since living cost;
began to go crazy. And they
couldn't get one under a fat
freeze.
So how do you take care Of
workers who might suffer ar
Injustice, with wages frozen, wher
businessmen were making bigger
profits through hiked prices?
Work out some kind of formula
which says something like this
ANY one who didn't have a wage
increase of so much before prices
we're frozen. is entitled to that
much"
But Mr.. Ching's board wasn't
able to work out this formula be-
fore Mr.. Johnston decided there
couldn't be any further delay in
freezing prices. Yet the law says
when prices are frozen, wages
must be frozen.
So what to do? Mr.. Johnston
took the ball away from Mr..
Ching and simply said prices and
wages were to be frozen as of
midnight. January Is.
Prices Also May Rise.
Later Mr.. Ching made it clear
some wages would still 60 up,
when his board has worked out a
formula for raising wages for
some workers, those who'd other
wise suffer unfairly under gen.
eral freeze.
So when that formula is worked
out the freeze on wages will melt
q bit.
Now, take prices. The law
which gives the Government pow
er to freeze prices says the price
farmers charge can't be frozen
until they reach parity.
Parity is a figure set by the
Government to be sure farmers
get a decently livable price for
their products.
For example: The parity price
on a product which Farmer Jones
sells is ST., although he's been
selling for 80 cents, or 10 cents
less than parity.
If he boosts his price 10 cents,
10 that 81 parity price, the process
sor to whom he sells can charge
the wholesaler, to whom he sells,
10 cents more.
Another Example Offered.
In turn, the wholesaler charges
the retailer 10 cents more. And
the retailer, who sells to you,
passes the increase on to you,
charging you 10 cents more.
(Some farm products already
are being SOLD at prices higher
than parity. They're not rolled
back to parity. But now the
various handlers of that product
professor, wholesaler, retailer
cant charge more than they
were charging January 25).
All this has been only one eX-
ample of what can happen to
prices. Here's another.
Under the law businessmen are
promised a fair margin of profit
on what they make or sell. II
they're caught in a squeeze by
last nights freeze order, the Gov
ernment will have to let them
charge a little more SO they can
get fair margin of profit.
A lot of these adjustments, anc
there will be a lot, may be worked
out in the next 80 days. Mean
while, since Mr.. Di Salle's office
still doesn't have a staff large
enough to do a real policing job
here and there around the coun-
try chiselers may hike prices still
more.
To make a long story short
Last nights freeze was a hurry-ur
Job to halt imitation. 1t will be
melted in number of ways anc
places. All you can hope fol
is that there's won't be such &
big thaw that imitation will &C
rocketing up through the soft
spots.
40 profoefnnfC hurrh hoe