Evening star., 1953-02-07
End Of Controls
Held Unlikely
10 Raise Prices
Merchants Applaud
Move to Restore
Free Economy
BY the Assoeioted Press

AAS ANoVAOAA Wuo oAA4tIAlS UdCh
to free-market economy today
amid predictions there will be
little immediate change of living
costs.
Merchants across the Nation
generally applauded President
-~-~-~----~---- ---~-->----~
AFl Leaders Expect Rise in Prices and
Wages. Poee B-H
Eisenhower's orders lifting many
Government controls. They said
consumer prices won't change
much
Gen. Eisenhower, carrying out
pledge he made last Monday to
Congress, iunked all wage con-
trolls yesterday and took a big
first step in pulling away curbs
on prices. More price ceilings
are to be cancelled gradually un-
til all are out of the way by April
80.
Thousands of Items Included.
Among thousands of items re-
moved from price control on
Gen. ElSennower'S orders are al
meat, clothing, furniture, restau-
rant meals, bar and tavern
drinks and virtually all articles
sold in department stores.
Controls remain for the time
being on such things as new
automobiles and used cars made
since l946: milk. bread. ciga-
retteS, cosmetics. heating oil and
gasoline. major metals and metal
products. lumber and large
household appliances such as
stoves and fefrigerators. But
some Of these may be included
in another big decontrol package
due next week.
Businessmen queried by the
Associated Press in a 20-city
survey said generally they can
keep prices down to about where
they are now unless materials
and labor costs increase,
Some economists continued to
predict price rises costing as
much as 81 billion in the next
six months.
These officials forecast higher
prices for gasoline, cigarettes,
beer and bread among day-to-
day items in the family budget.
They noted that cigarette manu-
facturers already said publicly
they planned to |raise prices by
! or 2 cents a pack as soon az
price lids are lifted.
Farm Prices Raise Fears.
In the other direction. sagging
beef cattle and other farm
product prices have caused fears
of recession to be voiced in Con-
gress.
Senator Kerr, Democrat. Of
Oklahoma, introduced a bill yes
terday that would direct Secre-
tary of Agriculture Benson to
use up to $25 million of Com
modify Credit Corp. funds to
support cattle prices at 100 per
cent of parity
Senator Capehart, Republican.
of Indiana said he thought the
administration was being incon-
siStent in dropping economic
controls at home while threat
ened with conflict abroad, unless
a standby controls program is set
up. Otherwise. the Banking
Committee chairman told CHS
radio audience he approves Gen.
! EiSenhowerS action.
Labor Chiefs Pleased.
Labor union chiefs, who had
backed the controls during for
mer President Truman's admin
istration, said they were happy.
too. over Gen. EisenhoWer's move.
They said freeing wages from
Government control meant re-
turn to free collective bargaining.
CIO President Walter Reuther
said it would be up to indi-
vldual unions whether to make
new pay demands. AFL Presi-
dent George Meany said at
Miami, Fla, that unions would
try to recapture wage boosts the
Government had denied under
controls.
In any case. few big labor con-
tracts are up for re-negotiation
in the next few months. But
this is the season for setting
new pay rates in the big, scat
tered construction industry. Also,
(See CONTROLS, Page A-3)