Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-12-08
0PA Accuses Hecht's
Of Ceiling Violations;
Obtains Injunction
Store Official Denies
Intent to Ignore or
Evode Regulations

Evode Regulations
Charging violations of ceiling
prices in the sale of hundreds Of
commodities, the Once of Price Ad-
ministration was granted today In
District Court a temporary order
restraining the Hecht Co. from
selling any commodity at a price In
excess of the maximum permitted
by the General Maximum Price
Regulation.
The OPA motion. granted by JUS
tice Matthew F.. MCGUIRE, was &C.
companied by four af1idavits charg-
ing violations of ceiling prices and
failure to nle maximum prices on
commodities.
Justice MCGUIRE set hearing on
the charges for 1890 am. Friday
Three Pleas in Motion.
The motion for the injunction
specifically asked the following:
l. That the Hecht Co. be en-
Joined from selling, delivering or Of
fering for sale or delivery any COM
modify, subject to the general max
1mum price regulation at q price in
excess OF the maximum permitted
by the regulation.
2. From posting as it's ceiling
prices OF cost-of- living commodities
IN excess of those permitted by the
regulation.
3. From violating any Of the pro-
visions of the act, or the regulation
as amended.
Grounds for the motion, according
to an affidavit of Lester Kaplan.
OPA investigator, are a frequent,
continuous and fragrant" violation
OF price regulations which, if con-
tinued. would be injurious to the
war effort and would continue the
danger of imitation.
Charges Are Elaborated.
1t was charged that The Hecht Co.
tailed and refused to determine
and nile maximum prices upon COM
modlties' and failed to keep for in
spection by OPA complete and ac-
curate records" of its maximum
prices. 1t was also charged that
the company failed to file with the
appropriate War Price and Ration
ing Board and failed to keep up to
date its statement relative to cost
of-living commodities.
Mr.. Kaplan said that an inyesti-
cation Of the stores students clothes
department disclosed the following:
/. A two-piece knicker suit, with
a posted ceiling price of $685. and
a selling price of 1885.
3. A two-piece knicker suit. with
a posted ceiling price Of $12.95 and
a selling price of $15.95.
3. A three-piece knicker suit, with
a posted ceiling price of $l095 and
a selling price of $1295.
He said he found over so other
Items being sold at prices in excess
OF the posted ceiling prices.
Shoes and Hosiery Involved.
In the women's shoes department,
ne said that base period statements
kept by the department buyer are
not complete in that they do not
contain appropriate descriptions or
identiflcations of the commodities
listed" He said he found over 100
items sold during March which were
not listed on the base period state
ment or the cost-of-liying state
ment.
In investigating the womens
hosiery department, Mr.. Kaplan said
he found several items being Of
Tered for sale and being sold at
prices In excess Of the posted ceiling
prices"
He cited the following examples:
!. Rayon and silk hose with a cell
ing price of SO cents and a selling
price of 81.
2. Hose with ceiling price OF
sl.45 and selling price of $3.50.
3. Hose with ceiling price OF 81
and a selling price of S135.
Other Charges Made.
Raymond j. Singer and Robert E.
Van Brunt, OPA investigators. filed
aff1davits which charged the fol-
lowing alleged violations by the
company:
l. Apparent quality deteriorations
OF fabrics, workmanship and trim
tor suits Of approximately the same
price.
2. Decrease in the number of
pieces per suit of approximately the
same price.
In his affidavit Mr.. Singer said
that it was apparent that no regu-
ar method was used to determine
the maximum prices on current
merchandise
John A. Faith, OPA Investigator,
said his investigation revealed that
IN some portions of the store posting
Of maximum prices Of cost-o Living
commodities was inadequate and
that in other parts Of the store
there was a complete absence OF
posting of ceiling prices and that in
only a few departments did the post
ing of ceiling prices comply with the
regulation.
Hecht's Official Statement.
The following statement on the
OPA action was made to the press
by Charles B. Dulcan, ST.. vice presi-
dent and general manager Of the
Hecht Co.:
1.-THE Office of Price Administra-
ton has seen fit to ask the court to
issue temporary injunction against
the Hecht CO. for allegedly failing to
comply with the rules, regulations
and interpretations issued by that
bureau.
AT the outset let me state very