Detroit evening times. (Detroit, Mich) 1921-1958, 1943-10-22


Mayor George WEIGH Of
Grand Rapids explains that
metal working plants in that
area had been harder hit than
the furniture industry - and
that even in the furniture
trade. it was the upholsterers
and the spring manufacturers
who were idle because Of a
shortage Of leather, the ban on
steel springs, and other such
shortages. Most of the big
furniture companies were still
busy, and some were already at
work on glider contracts.
NEARBY CITIES CALLED IN
However, Mayor Welch agreed
that il would Took bad II Grand
Rapids didn't respond, and Joseph
Criswold. executive Of the big
Widdiconb Furniture Co.. was
asked TO line up bidders and stir
up interest.
All companies were contacted
and officials of Ia plants in the
surrounding cities Of Holland,
Grand Ledge, Sturgis, Charlotte,
etc, were called in.
There was a better attendance
at the second meeting, and How
ington described six pieces of de-
sired furniture and cited the
= prices at which they were being
: purchased in other sections OF the
i country.
{ Again interest Jagged W h e
7 those present discovered that
prices reflected low wage scales
\ paid by southern manufacturers.
And again there was an appeal
by Mayor Welsh not TO upset
the plan.
'1f you turn this business
down." he says he told them,
s4we'l never get any other con-
tracts here. Think Of other In
dustries."
They submitted bids, but the
prices were high. How the final
prices were arrived at seems 10
be something Of a mystery.
DENY BIDS AVERAGED
Government officials claim they
took the furniture mems own bids
and averaged them. This is uni
versally denied by the furniture
men.
Said Frank Seidman of Seidman
a Seidman. accountants, and ar
international authority on the
furniture industry:
Tho prices were set by
FPHA. Those contracts were for
the most part taken by furni-
ture men who feared they would
be accused of lack of patriot
ism"
At the time Of the negotiations
Seidman was serving with WPB
Finally, both sides concede,
is per cent differential was added
10 the prices 10 help adjust then
20 Grand Rapids wage scales, but
even so, one furniture manufac'
turer predicted that they'd lose
their shirts"
Here are samples Of the origi
nal quoted prices as supplied &c
The Detroit Times by one Of The
companies which took the con
tract:
Dinette tables. $3.50.
Dinette chairs, S3-S325.
Occasional chairs. IS.
Beds. Ss-S910
Mirrors, S3.35-S3 90.
PRICED AT A LOSS
Commented T. II. Goodspee,
Jr., then an executive OF the In
stitutional Furniture Co., one o
the firms which later Cancelled u
contract:
1.-THE chairs HOwington said
he could buy for S3.25 cost US
about $40 20 turn out, without
consideration for overhead. The
beds-which were the closest 10
being right-would have cost us
s1O.57, without overhead. Even
with the added Is per cent
there were few items on which
we could even hope 10 profit"
His firm nevertheless offered [
take SAT- 900 worth Of business
II was finally awarded $4,000 j
contracts, which were later cut {
$50, 900 and finally cancelled en-
tirely At the firm request
On March 19, WPB's O'Brie
announced in the Grand Rapid
newspapers that subcontract
totaling S1,500.0O0 had been JET
of which the Holland pools shsr
was SS27. $50
Today SWPC admits that IN
net amount Of the contracts