Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-12-29
WB Acts 10 Curb
Abnormal inventories
OF Larger Stores
Will Apply Formula to
Assure Distribution Of
Available Supplies

Local department store executives
were studying the War Production
Boards inventory Limitation order
issued today to determine what ef-
feet 1t would have on the supply
OF goods available In stores here
during the coming year.
The order Is designed to spread
available goods among stores, so that
larger stores-wlh big purchasing
power-will not be able to buy up
and immobilize stocks, while smaller
stores do without.
Eaton v. w. Read of the WPB's
Once Of Civilian Supply explained
that figures showed the larger re-
tail establishments inventories were
81 per cent above last year. The
average retail inventories Including
both large and small stores-is is
per cent up, he said.
Seeks Normal Inventory"
The WPB order seeks to hold re-
tail establishments to a normal
inventory" calculated by formula.
Mr.. Read said that the order prob
ably would not force stores to get
rid Of present inventories to any
great extent, but would prevent any
further overstocking.
The order will become effective
IN the second quarter of 1913. At
that time stores with too great
inventories will have to start making
reports to the Government and in
the following quarter will have to
start reducing their purchases.
The new WPB order applies to
retailers. wholesalers and stock-car-
rylng manufacturing branches which
nave a total mercantile inventory
OF over $4,000 after November 80,
1912, or who have annual sales of
over 100000.
Three Past Years for Guide.
Merchants will be required to
calculate their normal inventory"
on a formula based on the relation
between sales and inventory during
1889, 1910 and 194l.
IT a company's sales and inven-
tory are the same during the Sec
ono quarter Of 1943 as they were dur
ing the average of the same quar-
ters IN the other three years. it will
not be necessary to reduce stocks.
II company's sales increase over
the average of other corresponding
periods, the company will be allowed
to acquire proportionately more in
Ventory. This provision Is made to
allow stores IN cities such as Wash
lngton, where there is a big popula-
tlon increase. to meet the demands
However, If a store has stocks of
goods on hand which are greater
than in the other years-and sales
nave not increased proportionately
the merchant will be restricted.
The WPB order will allow such
stores to acquire only one-third as
much stock during the next period
as would have been allowed had the
inventories been in line with sales.
This purchasing on reduced basis
Will continue until the inventory is
brought into line.
Already Holding Down Stocks.
Most stores have been aware of
the general nature of the inventory
balancing plan for some months and
have been holding down their stock
accordingly.
Federal figures show that stores In
New York and Philadelphia have
heavy inventories-some of them
greater than last year. On the other
hand. stores in many small cities
are short Of consumers goods.
The WPB recommended that an
enort be made by the trade to see
that all stores got their proper share
OF scarce items which are no longer
being manufactured.
In this section of the country a
10 per cent tolerance is to be allowed
merchants in calculating inventories
to cover transportation difficulties
Most stores now find it advisable to
order goods far in advance and as a
result they sometimes find their in
ventories are temporarily too heavy.
The 10 per cent tolerance will al
low them to continue ordering in
advance to certain extent.