Evening star., 1942-09-17
|0PAC Considers Higher
Food Price Ceilings
Under New Formula
Industry Representatives,
Confer Here to Remove
Price Squeeze Hondicops

tTfGS SQuSSze 00noiS0PS
Increases on . number Of food
products on which ceiling prices
already have been fixed were under
consideration today at the once Of
Price Administration.
At the same time, OPA vas re-
ported to be reviewing = sutges-
tton that its entire formula for fix-
ing maximum food prices be "over-
hauled"
Changes in the method Of fixing
maximum ceiling prices 1irst were
suggested at an alI-dAy conference
at the Mayflower Hotel yesterday
Of 10 leaders Of the food industry,
appointed last June by Price Ad-
miniStrator Leon Henderson to
serve rs . national food advisory
committee to work with OPA in
the solution Of problems and ad-
justments under the Governments
general maximum price regulation.
GO. Seeks, 70 Prevent Squeeze.
While details Of the proposed
new formula were not disclosed, 1t
Is designed, 1t was said, to preclude
= price squeeze on wholesalers and
retailers. such as occurred when
the existing ceiling prices on food
products were fixed by OPA. In
that instance, it was pointed out,
both wholesalers and retailers had
agreed to make purchases at higher
prices SIX to eight months before
the ceiling prices were set up, and
IS = result had to take loss on
the products contracted for In ad-
vance.
The committee, which was ap-
pointed by Mr.. Henderson for the
specific purpose Of working out "a
full and complete solution OF the
problem Of the. food industry in a
spirit OF mutual understanding"
Is understood to have heard at its
meeting yexterday the fundamental
principles Of the proposed new
formula.
Alternative pricing. methods are
reported to be the basis Of the
formula. Such an alternative sched-
ule, it was pointed out, would cover
the normal time lag" between
Wholesale and retail operations and
keep wholesale and retail prices
on an even keel.
The result would be, it was said,
that wholesalers. instead Of hold
ing products for possible higher
prices, would release them to the
retail markets and replenish the
shelves in the retail stores of
familiar brands Of canned goods, in
particular, which are fast disap-
pearing because wholesalers are
holding up the 1942 pack In the
hope OF recovering losses on the
1941 pack due to arbitrary price
ceilings.
Members on Committee.
The, committee was recruited
largely from special representatives
who had been working in conjunc-
ton with various war agencies. It's
members include P. M. Brinker Of
Dallas and D. Z. Robinson of
Pittsburgh, independent retailers;
John T. Menzies Of Baltimore. Aug
tin Inglehart and H. s. Reinhold
Of New York, packers and manu-
facturers; E. N. Richmond Of San
Jose, CalN., and n. L. Cannon OF
Bridgeville, Del, canners;s Jack VIII
son Of Cambridge, Mass., represent
Ing soap and shortening nanufac-
turers; French Fox Of Charlevois,
Pa, and Frank J.. Grimes Of Chi
caso, .rspresenttng = voluntary group
Of wholesalers: w. II. Albers Of
Cincinnati and Sidney Rabinowitx
Of Boston, representing super mar
kets; Alfred Dorman OF statesbor-
ough, Ga, and A. g. McCune Of
McKeesport, Pa, representing small
independent wholesalers; William
B. Mackev Of Philadelphia and
Francis Whitmarsh Of New York.
representing the larger independent
wholesalers; william D'Miller Of
Chicago and Isaac jacobson Of the
District. representing cooperative
distributors, and Hunter Phelan OF
Norfolk and Ralph Burkhard Of
somerville, Mass, representing pro-
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