Evening star., 1942-07-18
Increase in Prices
Permitted for Goods
Offered al Cut Rates
OPA Adjusts Ceilings on
Merchandise on Borgoin
Counters in March

Merchants and manufacturers who
had abnormally low prices through
out March as result OF special
merchandising deals or temporary
price reductions were given relief
today by OPA through amendment
to the general price regulation per-
mitting quick adjustment of ceiling
prices.
The amendment effective July 81
provides:
l. Any seller other than a retailer
whose maximum price for a COM
modify is based on a special deal or
other price reduction limited to four
months may raise his maximum to
the highest price at which he deliv-
cred the commodity during the 80
days Immediately preceding the
temporary reduction,
g. A retailer whose maximum price
for commodity is reduced as re-
suit of a special deal which his sup
plier made available to him may
raise his maximum 10 the highest
price at which he delivered the COM
modify during the 80 days immedi-
ately preceding the temporary reduc-
zion.
Synthetic Rubber Progress.
The Government cannot afford to
take on new processes for produc-
ton of synthetic rubber if it would
slow up the program. Rubber Co.
ordinator Arthur B. Newhall stated
yesterday in saying the rubber plant
program previously announced would
be carried through.
In a statement to clarity the rub
Der situation, Mr.. Newhan pointed
out the Government is building
plants based on a program for pro-
duction per year of 100000 tons OF
buna S, 10000 tons of butyl and
10000 tons of neoprene. He ex-
planned the program is fixed at this
amount not because I'VE are still
searching for methods or processes
but because the amount of raw ma
terial required to build plants to use
any Of the processes is limited and
the amount allotted is all that can be
spared at this time to be taken away
from other critical needs in the war
program.
General Policy Retained.
Confusion arising from the
public statements of different pro-
ponents of different processes has
not in the least detracted from the
general policy of going forward with
this program to completion at the
earliest possible moment" Mr.. New
hall continued.
Buna S is made by chemical
combination of butadiene and
styrene. Butadiene can be made
from either petroleum or alcohol.
MIR. Newhall said many questions re-
garding the present program arise
on account of this fact.
He said before Pearl Harbor, Pc
troleum was chosen as the base ma
terial because of more advanced ex-
perimental development of the pro-
cess, production cost was less and
there was no indication of increasing
defense demands. After our entry in
the war, an increased synthetic pro-
gram was entered into. AS more
alcohol became available its produc-
tion was increased. Now 80 per cent
of butadiene included in the pro-
gram is being made from alcohol
and most of the rest from petroleum.
/ McNutt Sees New York Leaders.
Chairman McNutt, War Manpower
Commission, met yesterday with
Gov. Lehman of New York, Mayor
La Guardia of New York City for
another discussion of the wartime
Unemployment situation in New
York City which, Mr.. McNutt Saids
may reach 500 900 by winter. Sitting
In on the conference was Production
Chief Donald Nelson and represent
atives of the War and Navy Depart
inent and Maritime Commission.
I Motorists, in filling out applica-
tons for an extra gasoline ration,
were advised by the Office of Price
Administration to provide rationing
boards with specific, clear and COM
plete information. 1t was said
thousands of applications received SO
far were reported incomplete, incor-
rect or vague.
The S.. .0O0, 900 loan fund voted by
Congress to help students speed up
training for technical and profess
sional jobs will be available soon,
ManpoWer Chairman McNutt an
nounced. Monthly loans will be made
totaling not more than $500 year
at 2l2 per cent interest. The interest
is cancelled if the student is drafted.
Funds will be allocated to colleges
and universities by the United States
once of Education.
Holland Gives Agency's Plans.
Chairman Lou E. Holland, of
WPBs newly formed Smaller War
Plants Corp, said, following the first
directors meeting:
About all I can say at this stage
is that we know we have been
handed one of the toughest assign
ments in the WPB and we, Intend
to move deliberately and with eau
tions The only thing we know for
sure is that the Corporation cannot
be a miraculous balm that will heal
ell the wounds resulting from the
transition of industry from the pur-
suit of the arts of peace to those of
war. There are bound to be cas-
ualties."
WPB announced that prohibition
Of the manufacture of fishing tackle
does not apply to lures, bats or flies,
which contain no critical materials
other than iron or steel in fishhooks.
Critical materials include plastics,
cork and metals other than iron or
steel The order permits limited
production of fishhooks. specifically
not more than 1917 per cent of the
number produced in l94l.
Order on Tools Issued.
Makers of new machine tools were
authorized by OPA to make con-
tracts and deliveries at prices above
established maximum levels while