Evening star., 1952-03-07
Head Of Wage Board
Faces Questioning on
Steel Pay Increase
By Froncis ?. DouoIos

By Froneis P. Douglas
Nathan p. Feidsinger. Wage
Stabilization Board chairman. Isl
scheduled to appear next week be-
fore the Senate Banking Commit
tee. which wants to know just how
much Of q pay raise steel workers
may get under WSB regulations.
Roger L. Putnam. Economic
Stabilization Administrator. as
sured committee members yester-
day the board win not recommend
any raise for the steel workers
that would break through ceilings
established by board regulations.
He did say. however. he believes
the steel men viii be entitled to al
cost-of- Living raise. They are
seeking an 181z-cent hourly pay
boost and other concessions.
Z Just how much the committee
members may be able to learn
from Mr.. Feinsinger is prob
1ematical. It was pointed out
that, If he answered questions as
to what the boards fina, decision
might be, before a settlement is
reached he would be In the posi-
tion Of pre-judging case before
the board.
Mr.. Putnam had rather rough
handling at yesterdays hearing on
the extension Of the Defense Pro-
duction Act, with its price, wage
and other controls. He was fol-
lowed by Price Director Ellis c.
Arnall.
First Appearance.
It was Mr.. Arnall'S first appear
ance before the committee since
his confirmation as head Of the
ONCE Of Price Stabilization. His
mellifluous phrases, in q soft
Georgia accent, made it q happy
occasion for all, despite the fact
the hearing ran until 6 pm.
At one point, Mr.. Arnall said
he intended to make increasing
use Of advisory committees of
businessmen. Committee Chair
man Maybank said he was glad
to hear that. Not to be outdone,
Mr.. Arnall replied, I'm delighted
that the Senator is pleased"
Senator Capehart. Republican,
OF Indiana, remarked that prices
could not go up while the present
law Is in effect. Mr.. Arnall did
not challenge the statement; he
just said earnestly, "I wish I had
the deep conviction the Senator
has expressed"
Mr.. Putnam asked for repeal Of
the amendments passed. by Con-
gress last summer, including the
Capehart amendment, which al
lows manufacturers to claim
higher ceiling prices to cover in
creased costs between mid 1850
and last July 26.
"Parr0ting" Charged.
Senator Capehart complained
that Mr.. Putnam and earlier wit
nesses were "parroting" President
Truman.
Mr.. Arnall also asked for repeal
OF the amendments. Senator Cape
hart had been called from the
hearing by that time, and no one
else accused Mr.. Arnall Of parrot
ing.
Auditing Of requests for price
ceiling increases under the amend
ment takes from 10 man hours upl
to 300, he said. Committee men,
bers. obviously were impressed. andI
Senator Benton. Democrat, Of Com
necticut, remarked that this was
stating the case very dramati-
cally."
The price director then produced
q stack Of papers foot high and
explained it was one company's
applications for increases under
the amendment. and that some Of
the sheets contained 20 items.
19 Per Cent Increase Granted.
He also cited the case Of a
company that made an operating
profit in the first half Of 1950I
equal to 7.09 per cent Of net sales.
which increased to 7.67 per cent
in the first half Of 1851. Then, he
said, the company applied for and
received a 10 per cent price in
crease under the amendment.
I'VE can do a better job If the
amendment is repealed" he said.
"Give us the act without the
amendment. and If we don't ad-
minister the act as you want it'll
administered. you can get some
one else to do it." +
eve do not have that privilege,
Senator Maybank objected.
"IM give you my resignation
now" Mr.. Arnan offered. implying
it could be made effective when
the committee desired.
Mr.. Putnam, in his strictnessI
on the amendment, said higher
ceilings under it already haveI
cost $3.50 million. He said that
sum includes these figures: Auto
$500 million: machinery
$98 million: household appliances,
$62 million; grocery products,
$2l.9 million: home furnishings,
$15.8 million; chemicals. $14.6I
million. and dairy products,