Evening star., 1942-12-10
Hecht Co. Maintains
Staff Of II Persons
To Stiff 0PA Rules
n,275.320-Word Forms
Fuee constont Study,
Store OfficioIs Explain

Onicials of the Hecht Co., which
was charged by the Office of Price
Administration with violation of
ceiling prices in the sale of some
commodities, yesterday indicated to
reporters some of the difficulties
facing retail merchants seeking to
comply with price fixing rules.
Five bound volumes of OPA rules
and regulations alone consisted of
1913 pages OF small print, or
total of 1.275 800 words. In addi-
tion, officials said, the store has
printed 10000 forms to be Allied out
1or OPA inspection. To keep up
with OPA rules and interpretations
the Hecht Co. said they have a staff
OF ~ persons in special OPA divi-
sion at cost of approximate
$4,000 year.
Called in Lawyers.
one OPA regulation, dealing with
toilet tissue and paper towels, was
so involved that it required several
days for the stores own lawyers to
understand it and make brief di-
eest OF it for the guidance of the
stores buyers, it was asserted.
I'VE bought $162 worth of fancy
pillows last week. an official re-
marked. "All were not the same:
in fact, they were 104 different de-
signs and patterns. A separate
price ceiling for each piece of mer-
chandise had to be posted. One
employe spent four days establish
ing the ceiling price for each arti-
Gle"
The involved mechanics OF estab-
fishing a ceiling price also were ex-
planned, the official using as a hypo-
thetlcal case the procedure that
would have to be followed if the
company was pricing gas masks
which are handled by department
stores.
IT we had gas masks" 1t was said.
we would have to take the nearest
comparable item which was the fast
est selling item as of March last.
Since masks have rubber content.
let's say the comparable item was
rubber hose. We would have to
divide the retail price OF rubber
hose in March with the present re-
placement cost, providing a per-
centage figure. We would then have
to multiply the wholesale cost of
gas masks by the percentage figure
Of the comparable item, thus pro-
ducing a ceiling price for gas
masks"
Sold Before OPA Acts.
After a ceiling price is estab-
Gshed form must be filed with the
OPA within 10 days. OPA can re-
wise the schedule. Sometimes a
given stock is sold out, it was added, |
before OPA gets around to fixing a
ceiling.
Typical of the regulations by
which merchandisers are bound, the
store cited price regulation III, COW
ering mems and boys clothing, as
amended November and effective
November 7. On the question of
increases, this reads:
Increases permitted in cases
where the seller is in certain geo.
graphic areas. The maximum price
established under paragraph (a) % |
for a garment of tropical weight |
may be increased by not more than |
10 per cent If:
Fl. The maximum price is not |
higher than the highest price
charged by the seller during Oc- |
tober, le4l, for the same garment .
or. if none. for the similar garment /.
most nearly like it; and
"2. The net replacement cost Of
the garment is at least 10 per
cent higher than the actual net
cost of the same or similar gar
ment dealt in during October, l94l;
and
Geographic Area.
"3. The seller is in a geographic
area where, due to climatic con-
ditions, the customary volume of
March sales of garments not of
tropical weight is substantially lower
than the average monthly volume
of sales of these garments during
October, November and December.
A seller who increases his maxi
mum price under this subparagraph
(4) must fill out the details required
by the form in Appendix D (Section
1889 124) and file this information
within 10 days after the price has
been increased with the appropriate
regional Office of the Office Of Price
Administration. The increase in
price taken under this subparagraph
(4) shall be subject to modification
or revocation at any time by the
Office of Price Administration.
Except: That no maximum price
determined under paragraph (A)
shall exceed the sellers highest
maximum price for a garment of the
same classification, the same as or
similar to a garment which he dealt
In during the base period