Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-12-22
NewPriceC Ceiling Plan
Goes in Effect on
Food in January
oPA SimpIified Charges
Scheduled According
To Type Of Store
By ALFRED ToOMBs.

expected 10 IOuOW LOoay announce
ment Of the new, less complicated
method of setting ceilings for foot
sold in retail stores.
At the same time it was reported
reliably that OPA officials had de.
cided to allow rises in price ceilings
on many articles rather than grant
Government subsidies to keep these
prices down. 1t was expected that
the rise in prices would be geared
with the ceiling simplification plan
nnequities Cited.
Many inequities have arisen since
ceiling prices were established on
food products. Flour millers. for
instance, have a ceiling price on
their product pegged to wheat at
s1.28 bushel-whereas wheat now
costs s132.
Federal officials have decided that
the cost of subsidies would be out of
reason and now plan to ease the
ceiling restrictions in cases like this.
The OPA described the new system
to be used in grocery stores as IAN
entirely new program for the war
time control of retail food prices
and said it would have the effect of
greatly simplifying OPA regulations
applying to food stores
Under the new plan OPA Offices in
communities throughout the Nation
will compute and announce the top
price which may be charged in that
area for each specific food item.
The housewife will be able to tell
readily the maximum price which
she should pay.
Spread Of Sytem Indicated.
J. K. Galbraith, deputy OPA ad-
fninistrator for prices, indicated that
this sort OF simplification of price
regulations would be applied i'm
mediately to other retail operations.
He did not state exactly what types
of goods would be affected by the
forthcoming orders.
The new system for retail food
stores will result In numerous
changes in price ceilings in indi-
vidual stores. But the change will
not have the effect of raising the
cost of living in general, Mr.. GAL
braith said.
Three classes of stores have been
estabished-small, individual food
stores; chain food stores, and super
markets. The OPA of1ice in a COM
munity will announce the basis on
which these stores can compute their
price ceilings.
Each of these classes Of stores
will be allowed to make certain
percentage markup over the whole
sale price they pay for an item. The
small stores will be allowed the
greatest markup, the chain stores q
lesser markup and the super-mar
kets the smallest markup.
Same for Type of Store.
Thus, the price ceilings on spe-
cific food item will be approx
mately the same in all independent
stores, while all the chain stores
will have their own uniform price
ceilings, as will the super-markets.
1t is expected that the program
will get under way in mid-January,
when the new system of computing
prices will be applied to meat and
to soap. AS fast as OPA officials
can handle the program, the uni
form ceilings will be established
for other goods.
At present, most items in retail
food stores are sold under ceiling
which permits the store owner to
charge the highest price which the
item brought during last March
Thus, there may be variance be-
tween the price charge for the
same article in stores of the same
class.
The situation has been further
complicated by OPA regulations is
sued in recent months, allowing
changes from the March prices
The effect of the new system will
be to wipe the slate clean of all
these previous regulations and al
low stores to start off anew with
clearly established price ceiling
on each item.
The plan was announced as one
of the main features of the OPA
sinplification program which Price
Administrator Leon Henderson de-
scribed as well along" in his letter
OF resignation last week.
The Columbia Speciality Co. re-
ported that it knew last night the
tanks of II of its customers had run
bone dry" but it could not make
even emergency deliveries until thi,
morning because of the increasing
demands for fuel of which 1t has q
sufficient supply.
Joseph Richards, jr., one of thu
officials of the company, said deliv-
cries are now four days behind
schedule due to combination oil
circumstances" He explained the
concern had Is delivery trucks but
only IL are in service due to the lacl
of drivers. These II trucks, hi
pointed out, are on the road /,
hours day.
Factors Include Weather.
I'VE took years in building up &
reputation for prompt deliveries,
he complained land 1t is now bro
ken down"
The combination OF circum
stances" which put the firm fou
days behind in deliveries, Mr.. Rich
ards explained, includes advers
weather conditions, customers wait
ing for rationing coupons befor
ordering fuel and breakdown" il
the rationing system.
Another dealer admitted his de
iiveries are running behind schedul
because of increased demand.
coupled with shortage OF driver.
but said as far as he knew non
of his customers was out of OF
The dealer further expressed tn
opinion that publicity given the fue
oil situation here has stimulated de
mands for deliveries from some Gus
toners who do not really need al