The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1946-03-11
MORE ABOUT
SUITS
FROM PAGE ONE

National Association OF Retail
Clothiers and F'urnishers recently
estimated "conservatively" that
700, 900 men and boys suits are
among the withheld stocks.
Educational Clinic
OPA said the plan will be out
lined to manufacturers at series
of educational clinics" within the
next few weeks. The meetings ten
tatively are planned for New York.
Boston, Rochester, Baltimore,
Cleveland, and Chicago.
The agency said the price
freeze" regulation which gave
manufa cturers ceiling price
matching what they were charging
when it went into effect-has per-
mitted ''inequities and looseness
to creep into industry pricing since
1943."
For example, it said, some manu-
facturers continued to produce
goods yielding a small profit and
were "caught between the pincers
of mounting costs and low margin
Of profit" Others switched volume
production to their more profitable
items and introduced new products
at the highest profit level permit
ted by the regulation.
Level Profit Margin
The new program, it said, will
.reve1 off the profit margin across
the board by providing price re-
lief for the former and reduce the
profit margin Of the latter.
quitting all items on an equal
basis will remove the incentive to
divert to more profitable ITEMS"
Il said. "Since production Of low
priced apparel now offers the same
attraction as higher-priced goods,
the new method will aid in re-
storing lower-priced lines"
OPA said the limitation on higher
priced lines has proved one OF
the most effective control tech
nioues used in holding the line"
It will operate this way among
clothing manufacturers: II the
highest priced suit made in 1912
sold for $25, a manufacturer can
not make a suit selling for more
than SIS now.
All manufacturers, however, are
allowed a five per cent increase
over their highest price line to
allow for increased material and
labor costs. This permits the
manufacturer of the $25 suit to
charge $26.25 for his product.
Same Eliminated
The new regulations do not ap-
Div to jobbers or to small manu-.
factrers whose business does not
exceed $4,000 annually or $5.ooo
per quarter. They will continue
to operate under the price
freeze" regulation.
OPA said 1913 was chosen as
the base year for computing the
markup margin because 1t re
fleets a more representative pat.
tern of types and price lines OF
clothing made" Manufacturers
who started in business since then
NAV obtain a markup figure from
OPA.
In determining their current
costs. manufacturers are allowed
to include only the amount PAID
in wages as Of August, 1e45. OPA
said it was necessary to exclude
wage increases granted since then
III an overall price increase Is
to be avoided"
The new program came close on
the heels of a joint move by oPA
and the civilian production ad-
ministration to bring more cotton
shirts, shorts, pajamas and wom'
ems and children's dresses in the
market.
oPA granted textile 1nanufac,
turers five to 10 per cent general
price increase on al textiles manu-
featured, plus az additional 1lve
per cent increase as an incentive
to produce critically-needed items.
OPA ordered looms which have
been used for fancy textiles to be
reconverted to more pracncai
goods.