Evening star., 1942-07-30
Formula Is Devised
For Price Ceiling on
New Consumer Goods
Thousands of Articles
Embraced in System;
Truck Doto Required

tCllulS pTlCSS lOT new lines Oh CDn
sumner goods and building materials
introduced since March. articles
largely embodying substitute ma
terials which were not covered in
the general maximum price regu-
lation.
The order covers thousands of
articles ranging from steam boilers
and window glass to furniture,
mems tie clips and herseshoes
Many newly introduced products
using ersatz material cannot be
priced under the general regulation
which sets the highest March price
as the ceiling. Nearly all consumer
goods except apparel are affected.
Price formula provided In the
order follows:
l. If only minor changes are in
vOlved from an article sold in March,
the seller must set ceiling price for
the new article which is the same
as the maximum price for the ex-
isting article.
2. II substantial changes are made
In the new article, the manufac-
turer must use the ceiling price for
the original article, plus or minus
any increase or decrease in the
direct unit cost of production re-
sulting from the change.
Third Formula Provided.
;. II the new article cannot be
priced under either of the two
methods, the following formula must
be used: The manufacturer de-
termines the direct cost per unit of
the new item. using March labor
rates and March costs of materials
He then selects from his line one
comparable article which has a
March cost Immediately higher and
one with a direct cost Immediately
lower. The markups are aver
aged for the two comparable ar
ticles both in dollars and cents and
IN percentage. Whichever of the
average markups yields the lower
price is applied to the direct cost of
the new article and the resulting
price is the maximum price.
Groups of products affected by the
order include mechanical building
material and equipment, plumbing
fixtures, valves and fittings, COM
mercial refrigeration and summer
air-conditioning, masonry and con-
struction materials, insulating board,
rooflng materials and glass, bedding,
floor coverings, all furniture, hard
ware, tools and appliances, CONNER
cial kitchen equipment, marine
hardware and boat supplies, per-
sonal and household accessories,
housewares and notions.
The District will receive no new
cars for rationing in August, OPA
announced today, since the unused
carryover from preceding months is
ample to meet demand. Sixteen
States, including Virginia, also were
included in this category.
OPA stated that despite the re-
duction in allotments, more new
cars will be rationed in August than
in any other month so far except
July. A total of 1880 cars will be
doled out the country over next
month, compared to $4,000 for the
current month. Maryland will re-
ceive 231 automobiles, with 1O2 in
reserve.
The ONCE OF Defense Transporta-
tion announced that nine types of
private and contract trucks had
been excepted from the conserva-
tion order requiring return loads.
Permits relieving motor carriers
from various provisions of the order
were issued for trucks engaged in
delivery of newspapers in metropoli-
tan districts of less than 200 900
population. solid fuels, supplies and
materials to vessels. mine products,
Ice. rubber and metal scrap, prepared
foods to restaurants, certain ma
terials used in connection with print
ing and duplicating and bakery
products.
,OPA postponed contemplated re-
ductions In prices of fabricated
aluminium products because of
complexities OF the problem involved
which have not yet been resolved"
Persons owning more than one
typewriter were advised by OPA
that under rationing regulations
they may dispose of the machines
only to authorized dealers or to the
Procurement Division of the Treas
ury. The Government recently ini-
tiated a drive to acquire 600 900
typewriters Tor war work.
The $4,000 truck dealers OF the
country were warned by WPB that
they must submit inventory infor-
nation not later than August on
all new motor trucks in their pos
session.
Price Administrator Henderson
announced the basic formula which
shortly will increase wholesalers
and retailers ceiling on prices OF
canned fruits and berries by Is to
25 per cent. This increase in price
will be passed along to consumers
in late summer or early fall, de-
pending upon when the 1912 pack
of a specific fruit or berry arrives
on grocers' shelves.
Mr.. Henderson designated Is new
communities as defense rental areas
and recommended that rents in the
areas be cut back to levels prevail
ing March l. None of the COM
munities was near Washington
A new formula to help manufac-
turers arrive at ceiling price for
dry dog and cat food was announced
by OPA. Dry food for dogs and cats
is product born largely from the
war, and resulting from WPBs re-
strictions on tin previously used tc
contain wet foods.
Congress in Brief
TODAY.
Senate:
MAY consider S794 .634 900 appro.
priation for naval shore activities.