Evening star., 1941-06-26
Price-Fixinq
Continued From First Page.)

Pointing up prospective show
down on the enforcement powers of
the price administration, ma jor
automobile company and a seq
rnent of the furniture manufactur-
ing industry served notice they
would not comply with Mr.. Hender-
sons requests"
The price administrator an
nounced yesterday that Chrysler
Corp. refused to rescind recent price
increases on its new models. Last
night, several New York furniture
manufacturers announced price
boosts of about 5 per cent despite
the administrator request that such
increases first be submitted to his
office.
Mr.. Henderson said some comment
on the developments could be ex-
pected from him during the day.
The furniture increase topped
previous to 10 per cent price in
creases- applicable to the opening
of new lines in New York last Mon
day. On the same day, Mr.. Hender-
son wrote Al furniture manufac-
turers that IF such price increases
continue in this and other indus
tries, the result will be initiation and
decentralization, not only in your in
dustry but over the economic system
generally"
Commenting on the furniture
manufacturers action, Paul B. Pos
ser, vice president and general sales
manager of the Haywood Wakefield
Co., said in New York:
MY company is thoroughly in &C.
cord with the price administrator
desire to prevent initiation and keep
prices within legitimate bounds.
However, manufacturers should not
be expected to submit their plans to
advance prices since many manufac-
turers who operate on narrow mar
gins would be forced out of business
before approval could be obtained"
Asks Prices Be Withdrawn.
Mr.. Henderson recently proposed
to the automobile industry generally
that increases tagged on new models
be withdrawn.
The price boosts, placed in effect
by Chrysler Corp, Ford Motor Co.,
Hudson Motor Car Co., Studebaker
Corp. and Nash-Kelvinator Corp.
ranged from $40 to $50.
Chrysler's failure to comply, Mr.
Henderson said, "is forcing us to
take the pricing of automobiles out
of the hands of the industry" At
the proper time" he continued, he
would report the full facts to Presi-
dent Roosevelt and to Congress.
Complete Overall Ceiling"
Meanwhile, Mr.. Henderson said,
plans would be pressed Immediately
to establish a complete overall price
ceiling for new automobile models" +"
extending not only to manufactur-
erS prices and dealers markup, but
also to trade-inValues.
He praised the Packard Co. for
delaying its proposed increases and
said the request to the Ford Motor
Co. still was pending. Because of
Chrysler's refusal, he added, he was
releasing the smaller independents
from his blanket request.
Referring to Chrysler Mr.. Hender-
son said in statement:
THE action of this company,
which is just finishing a year of
record volume and favorable earn
tngs, If followed by other companies
would undermine the whole struc-
ture of price stability, 1t is the
policy Of this Office to ask the COM
panies which are enjoying a good
volume of business and profit either
directly or indirectly arising from
defense expenditure, to absorb cost
increases in reasonable degree"
Stirs Congressional Controversy.
The o. P. A. c. S. said that Chrys-
Ter had been asked to forego ap-
proximately s4000,000 out of net
sales of more than $3.50 100000 dur
ing the current model year and
that this would mean, in terms of
net income to stockholders, forego-
ing $780, 900 after the company
already had earned s20,00O,00O dur
ing the first six months OF this
year,