Evening star., 1943-05-27
Retailers Head Hits
Ga|braith, 0PA Aide,
Before House Group
Charges He Fovors
Denying Manufacturers
Price Jurisdiction
BY JAMES E. CHINN.


Charges that j. K Galbraith
deputy OPA administrator in charge
Of the Government price control
program, favored destruction of the
price jurisdiction of the counTrvs
manufacturers were MADE late today
before House subcommittee in
vestieating Government restrictions
on brand names. by Lew Hahn.
general manager OF the National
Retail Dry Goods Association.
The charges came as reports were
rife al OPA that Price Administrator
Brown is considering far-reaching
changes in the OPA policy and or
eanlza:ion which might result in the
resignation of Mr. Galbraith.
Quoted From Book.
Mi Hahn read TO the subcommit-
tee excerpts of book he said was
written by MI Galbraith in 1897 and
published under the title, Modern
Competition and Business Policy"
This book he declared fully ex-
plains why the author-now the pol
lcymaker for OPA-has reduced all
rayon hosiery TO one standard
grade"
In that book" Mr.. Hahn said
DR., Galbraith laboriouslv explains
that it is the differentiation in the
products of the manufacturers which
operates to give such producers
price jurisdiction. He also eX-
plains that by adopting a brand for
his product. and making the con-
sumner think it is different from the
product of the other makers. he in
creases this price jurisdiction
When man who thinks in this
wise is given the authority to die
tate the policies of great, powerful
agency like OPA. what could be
more natural than that he should
determine to stamp out these brands
and reduce all hosiery to one stand
ardlzed grade A so that no consumer
can possibly believe the product of
one maker is different from that of
others? 1t is clear that Galbraith
determined here was a chance to
destroy the price jurisdiction of the
manufacturer"
Calls Retailers Near Ruin.
Mr.. Hahn also charged that OPA
has protected" the small retailer
TO the verge of ruin by destroying
his means Of doing business"
In one short year" he declared
"OPA has achieved more in the Gre
alton of confusion misunderstandine
and the unWarranted regimentation
OF business and the public than the
orafters of the Price Control Act
ever could have foreseen-and now.
as all observers must know, it is in
the act OF committing hari-kari"
This morning the committee spent
about 10 minutes examining women's
rayon hosiery.
The exhibit was placed before the
committee by William H. Hager, jr.,
vice president Of a Lancaster ,PaD
department store. to show the diff
ference in construction and what
has happened to prices under OPA
regulations.
Before Mr.. Hager arrived with two
boxes of stockings-some very sheer
and others of so-called service
Wel9ht"-the committee heard r.
wing c. Fox, general counsel of the
National Dry Goods Association, de-
scribe what he termed the futilitv
OF the OPA in attempting to grade
rayon stockings and give the public
the impression that a grade "A"
will outlast a grade b"
When a woman goes out in the
morning wearing pair of rayon
stockings he said. she never
knows whether she will come back
in the afternoon with whole stock
ings or not
Government Almost Uses Fraud.
In my opinion, there is no such
a thing as a guarantee that rayon
hosiery will last any length of time.
once it is worn 1t is almost a. fraud
on the public, perpetrated by the
United States Government, to say
this is a grade "A product and
women can wear it for a certain
length of time"
Mr.. Hager, who joined Mr.. Fox in
a protest against the OPA regula-
tlons under which the hosiery in
dustry is now operating. pointed out
that prices on the stockings bought
by the average consumer r"-the
woman who has always purchased
the lower-grade stocking-had been
"artit1clally' raised, whereas the
prices on the more durable luxury
type had been raised to a point
where there is little differential be-
tween the different grades.