Evening star., 1944-08-14
|0PA DRAFTING
Civilian Price
Ceiling Policy
Will Apply to Costs
As Factories Return
To Peace Production
BY the Associated Press.

The Office of Price Adminis-
tration is readying a ceiling
price policy for manufacturers
resuming civilian production.
OPA officials said the ceilings will
be determined largely by production
costs, that little effort will be made
at this stage to figure industry wide
formulas and that field Offices,
rather than Washington, will make
the rulings in most cases.
The War Production Boards order
permitting limited amount of
civilian goods manufacture is to 60
into effect tomorrow.
Price Administrator Chester Bowles
is scheduled to disclose OPA's policy
at a news conference later in the
week, probably Thursday.
Reynolds Threatens Action.
Since only a comparative handful
of firms is expected to qualify for
civilian goods production in the next
few months because of strict curbs
on noneSsential use of manpower,
OPA sources said little attempt will
be made to set industry-wide CELL
ings or pricing formulas.
Meanwhile, Chairman Reynolds Of
the Senate Military Affairs Com
mittee threatened to seek an amend
ment Of the Price Control Act unless
Government agencies move to pro-
vide price ceiling adjustments for
industries as soon as they resume
civilian production.
AL studies of the reconversion
problem convince me that there is
too much of tendency to give lip
service to increased production, and
at the same time actually retard it
by tight profit and price controls"
he said in statement.
Hearings before his committee on
the recently-passed rehabilitation
legislation, Senator Reynolds as
serted, convinced him that the WPB
and the OPA should give private
industry assurance the Government
intends to stimulate production as
soon as war trends will permit"
Along with the 'GI Bill Of
Rights we should have a bill of
rights for private industry" he de-
clared.
OPA Cites Value of Plan.
Filing of the new civilian ceilings
by held offices will speed the process,
OPA sources said, and give field of
ficials training for the flood of pric-
ing activity expected when large
scale reconversion begins. Where a
large part of an industry is recon-
verting simultaneously, as in the
case OF piano manufacturers. the
decisio nwill be made in Washing
| ton.
When demobilization of industry
starts in earnest, officials said, an
automatic" pricing system is like
ly. A formula will be provided un-
der which firms will compute their
own prices, subject to review. II
OPA does not object within a stated
period Of time, the price will 60 into
effect.
The coming WPB order, as previ-
ously described by Chairman Nell
son, will permit WPB field offices to
1 approve production of civilian goods
by manufacturers who can show
plant capacity and labor not needed
for the war effort.
The order was opposed by the
Army, Navy and War Manpower
Commission on grounds that civilian
production might lure workers from
war plants. Although Mr.. Nelson
won his point, except for a delay in
issuance of the order, War Mobili-
cation Director Byrnes last week
issued a directive giving VINO veto
power in any case where it appears
the manpower program might be
harmed.
Mr.. Nelson has asserted the or,
der, the fourth of a series designed
to help prepare industry for ulti-
mate rehabilitation, will result in
only thin trickle" of new civilian
looodc for eoy,oo fi,oo