Evening star., 1945-07-20
|0PA Still Is Confident
OF Keeping AZ Retail
Prices, BrownIee Says
BY the Associated Press.

Inc ORA is SJdnQlng py lIS
prediction that most consumer
products returning to the mar
ket will be priced at 1912 levels.
Deputy Price Administrator James
F. Brownlee said at a news confer
ence late yesterday that the agency
still is confident of achieving that
goal, despite the fact that some re-
converting manufacturers will re-
quire price increases.
Mr.. Brownlee in outlining new
pricing methods intended to speed
up production of civilian goods, said
that OPA would meet next week
with wholesalers and retailers of
various trades to decide to what ex-
tent these distributors can absorb
increases granted to producers.
I'VE still are very hopeful that
most products can come back on the
retail market at 1912 prices or at
levels very close TO them,' Mr..
Brownlee said.
Program Flexible.
The new pricing methods unveiled
provide formulas which individual
reconverting companies may use to
determine to what extent, if any,
their 1912 ceilings may be increased.
The formulas allow additions to
l941 costs to compensate for higher
wage rates and increases in prices
for materials and parts.
To this adjusted cost producers
may add all or part of prewar profit
margins, depending on the size of
the firm, to determine ceilings.
Mr.. Brownlee described the pro-
gram as very flexible" and added
Where certain costs have gone
up to such an extent that to main
tain existing (1942) ceilings would
delay production, OPA is ready to
take immediate steps to remove the
price impediment.
Auto Companies Outside.
These individual adjustments are
intended to bridge the gap between
the start of sales and determination
Of ceilings on an industry-wide basis
when more complete cost figures are
available to OPA.
Ceilings determined by manufac-
turers will be submitted to OPA
field officers for approval. In the
case of firms doing $200, 900 or more
business a year, OPA's national Office
will pass on the ceilings Maximum
prices of other manufacturers vii
be considered approved unless OPl
field officers notify a firm to The
contrary within Is days.
The new regulations cover virtu
ally all reconverting industries ex
cept the automobile companies
! Mr.. Brownlee said there has beer
no decision yet whether automobile
/ ceilings will be figured on the baSi
of industry wide costs or on indi
vidual company data. If the ca
manufacturers decide on the latte
method, the regulations issued yes
terday will be amended to cover tn,
auto industry. Mr.. Brownlee said.
Guard Against Initiation.
He added that conferences in De
troit between auto manufacturer
and OPA officials should be com
pleted by next week, and that a de
cision on pricing methods should b,
ready for announcement soon there
after.
| Asked whether there were indi
cations that any manufacturer
would require major price increases
Mr.. Brownlee replied;
"The majority probably will not.
Mr.. Brownlee said he was con
fident that the way has been foun'
to provide ''the basis for good profit
when production gets rolling"
At the same time" he continued
this program maintains our guar,
against the imitation of prices an,
operating costs which ultimately let
to the destruction of so many bust
nesses and jobs after the last wa,
and delayed successful reconversior
for two years"
In Three Glasses.
The individual adjustment pro
gram puts all reconverting manu-
facturers in one of three classes:
/. Those doing an annual bushes,
of 5000, 1000 or more will be permitted
to add to 1871 costs increases il
wage rates and in prices for ma,
terials. To this adjusted cost they
may add half of the industry wide
profits margin for 1936-1939. The
result is their new ceiling.
2. Those doing business from $5o,-
900 to 100000 a year will follow
the same procedure, but may SUBJ
stitute their own 1936-1939 profit
margin for half the industry wide
margin.
3. Those doing less than $4,000
of business a year may use the
total of their current costs as q
base, then add their own profit
margin for 1899. If data for that
year is not available, they may
use figures for 1910 or 1941, or hall
the industry profit margin fol
1885, 1899.