Evening star., 1953-04-09
Senator'S Approve
Rent Control Until
Sept. 80 in New Bill.
By J. A. O'Leoy


By }. A. o'Leoy
The Senate Banking Commit
tee is putting the finishing
touches today on a new defense
production bill which gives Pres
ident Eisenhower the five-month
rent control extension he asked
for.
The bill also gives the President
standby authority he did not re-
quest to freeze everything
prices, wages and rents-for 80
days if a grave national emer-
gency arises at any time during
the next two years.
The committee took two sep
arate actions on rent control.
First it voted 10 to 5 to extend
until September 80 the Federal
control which still covers 4.3 mil
lion housing units in cities which
have elected to keep Federal con-
trolls.
Definition to Be Narrowed.
Second, it voted to extend un-
til April 80, 1854. Federal rent
control in so-called critical de-
fense areas. but after September
of this year the definition of
critical area will be narrowed.
Thereafter, it will apply only
where the housing congestion is
the result of military establish
ment, an atomic plant or other
Government installation. After
September, a private factory
doing defense work will not
qualify a community as critical
area.
This bill has no effect on rent
control in the District of Colum-
bia, except that it may have some
influence on what the District
committees decide to do about
the expiring local law.
The Eisenhower administration
has dropped all price and wage
controls during the past two
months, and, without the pend
ing bill. all authority to extend
them would expire April 80.
90-Day Freeze Plan.
BY a vote of IL to 3 the COM
mittee late yesterday approved
the standby 9O-day freeze plan,
to be used only in a grave ma
tional emergency" If the Pres
ident invoked it he could apply
the freeze to the price level in
effect on any of the 80 days be-
fore he announced the freeze.
The standby authority is a
personal victory for Senator
Capehart, Republican, of In
diana, who has insisted that it
would be a mistake to leave the
administration with no power
to restore retail control if the
world situation grew worse.
The administration took the
positlpn that standby authority
is not needed because Congress
could act within 10 days if
new emergency arose. The
committee acted on the as
sumption Congress might not
move that fast in an emergency.
Taft Against Plan.
The three Senators who voted
against standby authority were
Bricker of Ohio. Goldwater of
Arizona and Bennett of Utah, all
Republicans. When the bill
reaches the Senate floor they will
have the backing of Majority
Leader Taft, who also is against
standby authority.
The Republican Policy Com
mittee announced yesterday that
the economic controls bill will be
taken up as soon as the pending
tidelands bill is voted on, prob
ably late next week.
On the f1ve-month extension
of rent control the Democrats
again brought victory to the
President. OF the 10 favorable
votes, six were Democratic. The
vote on rent control follows:
For-Ives of New York, Bush
of Connecticut, Beall of Mary
land, Payne of Maine, Republic
cans; Maybank of South Caro-
line. Fulbright of Arkansas,
Sparkman of Alabama, Frear of
Delaware, Douglas of Illinois and
Lehman of New York.
Against-Bricker of Ohio, Ben
nett of Utah, GoldWater of Ari-
zona and Capeheart of Indiana,
Republicans and Robertson, Dem
ocrat of Virginia.
Credit Control Included.
Senator Capeheart tried to lin
1t the rent control to two months,
but was beaten on voice vote.
Other features of the bill in
clude:
Standby authority for the Fed
eral Reserve Board to restore
credit controls on consumer goods
and real estate at any time with
in two years.
Extends for two years author
ity to allocate scarce materials
for the defense program.
Extends for two years the
Small Defense Plants Admins
tration and the V-Loan program
to help finance defense contracts.
Although the bill is still sub
ject to revision at today's meet
ing. committee members. indi-
Gated all major decisions were
made yesterday.