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Show by JameS Preston There is strong' sentiment in the senate, at this time, against inflationary conditions. Senators Ceoree O'Mahoney and Vander-berir Vander-berir denounced "half measures" to control prices. George said that the administration's wage policy was making: it impossible for price controls to operate. O'Mahoney wants to meet the inflation threat "head on." Their remarks were made during debate on a bill for the government to raise wages of its own employees. Some officials here are predicting- that during the next few months OPA price ceilings will be lifted here and there to adjust prices to the higher costs which have not been prevented. No general gen-eral upping, but a multitude of specific adjustments upward . . . reacting on others. They say that this is inflation, slow and moderate, moder-ate, but not yet a runaway. Ninety-five per cent of war contractors con-tractors are doing an honest and effective job and are receiving only fair and reasonable profits. A great majority are doing a magnificent I job in supplying the navy with its required material. That is the summation of the year-long investigation inves-tigation by the house naval affairs committee into costs and profiteering profiteer-ing in the naval expansion program. pro-gram. The other 5 per cent, accord- ing to the committee, "appear to be taking advantage of the situation situa-tion and to be receiving excessive profits." The committee considered consider-ed the average net profit on a naval contract to be reasonable. They recommended a statutory method of profit limitation. Chairman Vinson Vin-son recommended an outright statutory sta-tutory limitation but the committee commit-tee said that congress should decide whether the limitation-be by direct act, by excess profits taxes or otherwise. A great deal of discussion is still heard here about the tax bill and its effect on curbing inflation. The senate finance committee had been disposed to undertake substantial sub-stantial revision of the tax bill had the treasury come before it with a "realistic" wartime program. pro-gram. Committee leaders wanted suggestions for new sources of revenue something to curb inflation infla-tion such as a sales tax, compulsory compul-sory savings, perhaps a withholding withhold-ing tax. But as expected, Secre- tary jviorgenmau reneraiea me request he made to the house more from the same sources "abolition of special privileges" (joint returns, percentages, depletions, deple-tions, state and municipal bonds). Mr. Morgenthau did indicate that as far as corporation tax rates are concerned he is interested primarily primar-ily in total revenues from this source rather than specific rates. Representatives of the National Nation-al Association of Manufacturers, the United States Chamber of Commerce, the Congress of Industrial Indus-trial Organizations and the American Ameri-can Federation of Labor met with President Roosevelt recently to jointly assure the nation of the desire of both employer and employee em-ployee to contribute their utmost to the war effort. The delegation assured Mr. Roosevelt Roo-sevelt that they wished to do everything possible to win the war and informed him that "we realize that in this critical hour the future fu-ture of our American system, comprising com-prising free management and free labor, is at stake. We must win the war to preserve that system for the future." The President thanked thank-ed them for their support, praised the war production record, and told them of his resolve to halt the upward spiral of prices. |