Evening star., 1945-08-24
Industry Sees
.'42Price Levels
Barring Profits
OPA Statement on
Ceilings for Autos
Is Promised Soon
By MALCOLM LAMBoRNE. Jr.

The Office of Price Admins
tration prepared today to as
sumo new responsibilities in the
reconversion period with it's
program to hold prices of con-
sumer durable goods coming on
the market in the months ahead
at or near 1912 levels.
First reaction to the policy put
in operation yesterday was not
favorable. The National Associa-
ton of Manufacturers declared in
a statement in New York that the
program threatens to hold up re-
conversion" the Associated Press
reported NAM said in effect that
conditions have changed since 1912
and that prices of that year would
not yield incentive profits" now.
Similarly, Louis c. Upton, presi-
dent of the American Washer &
1roner Manufacturers Association,
said in Chicago that the 1912 CELL
ings on new household washers
would not permit "break-even
prices" and would prevent millions
of women from obtaining the home
laundering equipment they need"
Auto Price Statement Promised.
Meanwhile, reports persisted that
the OPA had granted the automo-
bile industry price markup on new
cars as much as IA per cent above
1912. Questioned at a press con-
ference yesterday on the reports, Mr..
Bowles said only that the figure was
not correct. He promised statement
on OPA's automobile pricing pro-
gram by early next week.
If the price increase factor to
auto makers is high OPA will be
faced with demands from other re-
converting industries for similar
increase. The agency's entire re-
conversion pricing program would
then be jeopardized.
Auto Output Limit Revoked.
WPB today formally gave auto
manufacturers authority to turn out
las many new cars this year as they
can find material for. The agency
revoked an order which would have
limited 1945 output to 10000 cars.
Industry sources have predicted that
manufacturers would try for a goal
of 100000 new cars by the end of the
year.
WPB said the new cars Begin
ming to come off the assembly lines
cannot be equipped with spare tires,
but that OPA would decide later
whether the fifth tire may be added
when tire production begins to in
crease. ~
To date, 1912 prices have been as
signed to new washing machines,
ironers and aluminium kitchenware.
Mr.. Bowles had this to say on
holding the line against imitation:
We have our teeth set in the
cost of living and we are going to
hang on like Boston bull pup until
our services as inflationary watch
dog are no longer necessary"
New Business Aids.
Mr.. Bowles also announced the
following three actions designed to
help new business enterprises to
get start:
wide range of businesses in the
consumer durable goods field will be
able to get their price ceilings
promptly. Under an order to be
issued shortly, new manufacturers
either will take prices in line with
the comparable product of an estab-
lished manufacturer or they will get
their own temporary price on cost
plus basis.
Manufacturing firms suffering an
overall loss at normal volume pro-
duction will receive price adjust
ments sufficient to bring them to the
break-even point.
Price ceilings will be lifted early
next week on three basic raw ma
terials - aluminium. mercury and
magnesium.
Will Free $50 More Items.
Mr.. Bowles promised that an
other $50 items, many of them not
figuring in the cost of living, would
be removed from price control
within few days. While refusing
to take stand on the question
of lifting completely Government
controls over all types of construc-
ton, he warned that building ma
terials were 'one of our real in
flationary dangers"
Meanwhile. the War Production
Board continued to lift controls over
additional items Production curbs
on grocers' and variety bags. paper
shipping sacks, steel insect-screen
wire cloths, cork and cork products
and asbestos textiles were revoked
yesterday.
The agency also announced it
was withdrawing its sponsorship of
l3 military truck tire expansion
projects. six of which are in actual
production WPB said it likewise
planned to withdraw from II expan-
sion projects for manufacture of
soles and heels, and five from miscel.
laneous products.
Airi;noe' DInn