Evening star., 1946-11-10
Industry Sees Impetus
To Full Production
In DecontroI Action
By the Assoeioted PrssS

BY the Associated PrssS
Industry and business leaders last
night said wage and price decon-
troll would provide the impetus
needed for full production. ~
Many foresaw: A confused period
of higher prices; early resumption
of normal competitive levels; the
wiping out of black markets; in
creasing supplies of scarce materials
and products, and possibility that
the business setback expected in
some quarters may be averted.
Robert r. Wason, president OF
the National Association of Manu-
facturers, said that 'after short
period of readjustment to an un-
controlled economy, the public can
count on management to restore full
and orderly production.
"And, unless forced to raise costs
by another round of wage demands,
the price level will, be adjusted
downward under restored competi-
tive conditions
Added Costs Cited.
He warned, however, not to ex-
pect prices to return to prewanlevels
'because too many permanent costs
have been added to production dur
ing the period of Government con-
troll
Lew Hahn, general manager OF
the National Retail Dry Goods AS
sociation, said sit now rests with
business to prove it can control
itself better than any Washington
agencies can control 1t"
Stating that 1.-The natural mech
anism of business has been inter-
ferred with for four or five years
and it may take little while be-
fore it gets re-established," Mr..
Hahn added:
prices, after years of unnatural
interference, doubtless may be eX-
pected to react nervously before
they settle down to something like
a new normal, but the conscious
ness that business concerns gen.
orally are too smart to price them
selves out of their great markets
gives assurance that prices will not
long continue out of hand
Excessive Advances Seen.
George A. Renard, executive sec
retarv-treasurer of the National
Association of Purchasing Agents,
said many prices will advance too
much, just as meat and hides did
when controls were removed. Those
who want to buy at the top of the
market can rush in, but represen-
tative buyers and sellers will steer
clear of that period of temporary
maladiustment of prices"
E.W. Tinker, executive vice presl-
dent of the American Paper & Pulp
Association, said although there
probably would be some ADJUST
ments. the consumer should feel
little change in paper prices as
result of decontrol, because 1t would
revive production of low-prlceo
papers which have been "prac-
tically out of production"
Mr.. Tinker said decontrol would
have little effect on the price OF
newsprint.
DR.. Claudius T. Murchison, presi-
dent of the Cotton Textile Institute ::
"Decontrol means that production
will be determined by consumer
demand rather than by Govern
ment regulation and that shortages
will be corrected much sooner than
would have been possible had the
controls continued"
Fewer Controls Hailed
Charles M. White, Republic Steel
president: "The fewer controls we
have, the better off we will be and
the sooner the country's economy
will be Strengthened out, just as re-
moval of controls on meat has
Strengthened out the meat situa-
ton. This is clearly what the Amer
lean people want"
SeWell L. Avery, president OF
Montgomery Ward and director OF
United States Steel Corp. and other
corporations: "It means the re-
moval of the barriers to freedom OF
enterprise. 1t is the thing most
needed for curing the present diTl-
culties the country faces because OF
controls"
e. r. Breech, executive vice presi-
dent, Ford Motor Co.: 1--WE do not
contemplate any increase in the
prices of Ford motor cars and
trucks"
Louis J. Cohen, executive vice
president of Michigan Used Car
Dealers Association, predicted an
immediate jump in used car prices.
But the skyrocketing won't last
more than a week, after that prices
will come down very rapidly, level
ing of to normal by the first OF the
year." he added.
Joseph G. Griswold, jr president
of Grand Rapids, Furniture Manu-
facturers Association: "I don't anti
cipate any substantial price in
creases but rather better balanced
price structure"