The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1944-05-09
. BEHIND THE SCENES
IN WASHINGTON .

which may lead 10 so-eslled
black market operations in the
industry:
Finished piece goods sales are
under specific maximum price
regulation, MPR 1877. There is
no use for layman to try to go
into all the price ranges or
grades established by this order.
To understand its workings, 1T
is enough to know that there is
more profit in some finishes
than in others. With all piece
goods in demand. it is not only
natural but good sense for con-
VerterS to concentrate on pro-
ducing the more expensive fin
lSheS. But this tends TO cut
down on production of less eX-
penSive goods for lower priced
clothing Manufacturers are
therefore faced with the prob
lem of using more expensive
materials or going out of bus
mess. II doesn't take long 10
decide that.
THERE ARE TWO REMEDIES
The remedy for this situation
is said To lie in either or both
of two principal directions: OPA
might roll back the prices of
the more expensive finishes to
make their production less prof
liable, or raise prices Of the less
expensive finishes to make their
production IN ore profitable
Along with this, War Production
Board might revise its directives
so as to cut down production of
the more expensive goods and
increase production of cheaper
goods going into clothing, bed
ding, towellng and such.
When YOU get into the gar
ment making industry, the black
market operations get little
more complicated. Women 5 and
chlldren'S clothes prices are
under MPR 287 regulation
which works backwards when
compared 10 the usual cost plus
formula for determining maxi
mum prices. Garment manu-
iacturers have always operated
on the price line basis. making
garments to sell at S3.75, S475.
S5.75, and so on.
Not wishing to disturb this
trade practice, instead OF telling
manufacturers 10 figure the cost
and add a fixed markup. MPR
287 took each of the old price
lines, subtracted the mark up,
and then established the mini
mum quality-grade of mater
lal trimming, lining, workman
shlp-that should go into that
line.
For instance, suppose the
minimum allowable cost al
materials going into the S6.75
price line were set at $3.50. Fol
a black market operation here
all the manufacturer has 10 dc
is cut the cost Of his materials &c
$500. 1t might be done by cut
ting out the trim. He would
still sell il al S675. With norma
wholesale and retail mark ups
such a garment would retail a
$1,000 With the trim. say, GU
out, it still sells at $1,000. but
it's an inferior garment. and il
should sell.at $500.
IT'S A TOUGH ONE
OPAs enforcement official,
say it Will take a great deal 81
cooperation from retailers anc
consumers to break the black
market in clothing. and thus fan
that has been lacking. Retailers
don want to report violations
Tor fear OF being cut off from
supplies by manufacturers
Customers just haven't cared
A year ago, when the clothes
rationing scares were prevalent
people bought anything they
could find, paying any price,
asked. Today they're little
more cautious and critical, fol
the fear and prospect of ration
ing have disappeared. But thu
black market goes merrily on
Leaders in the industry hav,
admitted that the jails aren't BIZ
enough to hold all the violators