THE NEW LAW ON CONTROLS

Chief features of the bill passed last week by Congress:

Farm Prices. Leaves undisturbed the 10% rollback on livestock but forbids any further rollbacks in beef. Allows other rollbacks to 90% of the May 1951 levels or to parity, whichever is higher. On the other hand, farm prices go up if other prices climb.

Non-Farm Prices. Cloudy and intricate in wording, the measure in no way lowers prices, may actually raise them. It permits rollbacks in future, but only to present levels or to prices between Jan. 24 and Feb. 24, whichever is higher. On the other hand, present ceilings must be lifted if manufacturers can show that their costs have increased between the start of the Korean war and July 26, 1951. "Costs" may include material, labor, selling, building, advertising, administering. In effect, this will require upping of many price ceilings, at the very least will produce an accountant's nightmare.

Slaughter Controls. Ends government authority to say how many animals a man may slaughter for market. Some Senators, tardily impressed by the argument that slaughter controls are necessary to keep down black marketing, are taking a second look, may yet try to restore this authority in a separate bill.

Wages. Leaves present power to freeze wages virtually unchanged. A Wage Stabilization Board will continue to have authority to make "readjustments" upward through the ceilings.

Rent Controls. Allows residential rent increases of 20% over June 1947 levels (rents have already gone up about 17 1/2% on an average since then). Allows rent rollbacks to pre-Korea levels in areas where new war work makes housing short.

Priorities, Condemnations. Continues the President's powers to channel materials into war work and to acquire property for the defense program.

Credit. Relaxes Regulation W installment restrictions on autos. To buy a car, customers will still have to put one-third down, but the rest may be spread over 18 months instead of 15. Radios, TV sets, household appliances may be bought with only 15% down (instead of 25%) and 18 months (instead of 15 months) to pay. Keeps credit restrictions (Regulation X) on the purchase of housing except in critical areas.

Expiration: June 30, 1952, right in the middle of next summer's preelection politicking.

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