The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1944-05-05


goods, the unfinished fabrics which
go to the converters who may dye
the. cloth, print it, give 1t water re-
pellent finishes or may number OF
special treatments.
Here are the optional steps-and
the entirely legal steps-which may
lead to so-called black market oper-
atoms in the industry.
Finished piece goods sales are UNI
der specific maximum price regu-
lation, MPR 127. There is no use for
layman to try to go into all the
price ranges or grades established
bl 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, 1t is not only natural
but good sense for converters to con-
centrate on producing the more ex-
pensive finishes. But this tends to
cut down on production Of less ex-
pensive goods for lower priced
clothing. Manufacturers are there
fore faved with the problem Of us
ing more expensive materials or go
ing out Of business. It doesn't take
long to 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 expen-
siye finishes to make their produce
ton less profitable, or raise prices
of the less expensive finishes to
make their production more profit
able. Along with this, War Produc-
ton Board might revise its direc-
tives SO as to cut down production
of the more expensive goods and in
crease production of cheaper goods
going into clothing, bedding, towel
ing and such.
When you get into the garment
making industry, the black market
operations get little more compli-
Gated. Women's and children'S
clothes prices are under MPR 267,
a regulation which works backwards
when compared to the usual cost.
plus formula for determining maxi
mum prices. Garment manufactur-
ers have always operated on the
price line" basis, making garments
to sell at 1915, $4.75, $5.75, and so
on. ..
Not wishing to disturb this trade
practice: instead Of telling manu-
facturers to 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
minimum quality-grade Of material
trimming, lining, workmanship -
that should go into that line.
For instance, suppose the mimi
mum alloW>sale cost OF materials
going into the $6.75 price line were
set at $3.50. For black market
operation here, all the manufacturer
has to do is cut the cost OF his ma
terials to $500. 1t might be done by
cutting out the trim. He would still
sell 1t at $6.75. With normal whole
sale and retail markups, such a gar
ment would retail at 5000. With
the trim, say, cut out, it still sells
at $1,000, but it's an inferior gar
ment and 1t should sell at $500.
IT'S A TOUGH ONE TO BREAK
OPA's enforcement officials say
it will take great deal OF cooper
ton from retailers and consumers
to break the black market in cloth
ing, and thus far that has been
lacking. Retailers don't want to re-
port violations for 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 prices asked. Today they're a
little more cautious and critical. Tor
the fear and prospect Of rationing
have disappeared. But the black
market goes merrily on. Leaders IN
the industry have admitted that the
jaiIs aren't big enough to hold all
the violators.