Evening star. [volume] (Washington, D.C.) 1854-1972, 1945-05-11
Prices
Continued From First Page.)

the war; the pricing of products
which he made before the war but
which have been largely or entirely
out of production during the war;
pricing of new models of the same
products the manufacturer was
and pricing of products he had not
been making before the war.
In all the first three cases, Mr.
BoWles said it will be possible for
the recovering manufacturer to
determine his ceiling price himself
He will not have to wait for OPA
TO set the price.
In the fourth inStance-pricing of
product which the seller is making
for the first time-the manufacturer
must apply to OPA for ceiling prices
in line with those of his COMPETE
tors for the most nearly comparable
products.
1T is most important that price
control policies during the coming
year enable business. and. labor to
expand production of civilian goods
just as rapidly as the easing off of
war demands makes possible" Mr.
Bowles said Everything that we
do in the QPA must be directed to-
ward making it possible for Ameri-
can enterprise and Skills to produce
record volume of high quality
goods at low prices and high wages. "
Full Allowance for Costs.
Mr. Bowles made clear that in
encouraging industry released from
war work to full civilian production,
OPA would make full allowance for
currently higher manufacturing
costs.
He released formula OPA evolved
to assure fair prices to producers of
such things as automobiles and
radios which have not been made
the last few years. He explained
that the manufacturer could use the
ceiling price placed on the product
the last time his goods were sold
If he believed it gave him a fair
profit margin.
In cases where reconverting in
dustry asks OPA to re-examine its
prices, Mr.. BoWles said in explain
ing the formula, I'VE will start with
its cost and prices in the last period
of normal production-usually 1941
or some part of it. We will take
those costs and adjust them upward
for two factors-first, lawful in
creases in materials and parts prices
and, second, lawful increases up to
this time in basic wage rate sched-
ules of factory workers.
To the 1941 cost so adjusted we
will add in place of the 1941 profit
margins the more nearly repre-
sentative peacetime margin re-
ceived in 1936-1939.
Concession for Small Firms.
"The excess of the resulting fig
ure over 1941 prices will be eX-
pressed in terms of an industry wide
increase factor" he explained.
This will be a percentage figure by
which any manufacturer in the in
dustry may increase his 1941 price
or prices. He will then compare the
result with his existing ceiling price
CASUALLY his 1912 price,. If the 1941
price, when raised by use of the in
crease factor is higher than the
existing price, the producer can
take the former as his legal ceiling"
Mr.. Bowles said small manufac-
turers will be given special consider
alton in that they will be allowed
to set prices on their goods them
selves and submit the schedules
later to OPA for approval.
In cases where the manufacturer
Is prevented from obtaining volume
production because of shortages of
material, special consideration will
be given in setting his prices.
Taft Asks End of Controls.
Meanwhile, Senator Taft, Repub-
lican, of Ohio started a controversy
In Congress with the proposal that
wage and price controls be lifted
next January /. Democrats imme-
diately objected on grounds it Is too
early to consider such steps.
Senator Taft's proposal, portend-
ing a lively congressional fight, was
advanced as an amendment to legis-
lation extending the Sterilization
Act a year beyond June 80
Chairman Wagner of the Senate
Banking Committee now considering
the legislation, told reporters Ger
,tainly it ought to be an independent
bill"
Senator Radcliffe, Democrat, OF
Maryland said it seemed to him to
be rushing things to try to decide
one week after Germany's surrender
what we should do next January.
Senators Wagner and Radcliffe are
on a banking subcommittee with
Senator Taft which now has the
extension measure.
Senator Taft proposed that after
December 81:
l. All wage controls be lifted
He said he believed that by years