Evening star., 1946-09-20
Threat Of Court Fiqht
Brings 0PA Review
OF Cafe RoIIback

AeS cANNi 1oAilllS UdSh p1l Ol
restaurant meals containing
meat to June 80 levels, after the
restaurant industry pledged sup
port to any cafe owner brought
into court for failing to observe
new ceilings.
OPA'S promise to take a second
look at its edict came after restau-
rant and hotel groups refused to
submit figures on profits on the
basis that they are mot conclusive
and OPA does not have anything
to do with profit control"
Backing up the two industries
notice of fight to the finish" a
group OF Milwaukee restaurant op-
orators yesterday obtained a tempo
rary injunction from Federal
court against OPAs enforcement of
the order. The case will be argued
Monday
Porter's Plan Rejected.
Price Administrator Paul Porter
had said earlier that if the industry
can show its earnings are below
194l levels, then an increase in
ceiling prices can be provided under
the price-control law.
In turning this down restaurant
officials said OPA already has been
given ample proof of much higher
costs OF food, labor and supplies.
Last night OPA said that because
of widespread protests from the in
dustry,t it Is reviewing its restauran MT
price policy. $s2f g. ?
Industry spokesmen declared the
issue Is bigger than the size of the
rollback or its dangers to public eat
ing establishments. They opposed,
in principle, this new policy of
forced price absorption" +
They predicted that if it is al
lowed to stand in the case of
restaurants it ultimately will be i'm
posed on other businesses. They also
saw in it an "unwarranted effort to
control profits"
Urge Compliance With Order.
Washington hotel and restaurant
associations urged their members
to comply with the OPA order
National industry representatives
announced also that I'VE are not
advising members to violate the
law" But national and local groups
said they were ready to take court
action as soon as test cases develop
through possible arrests for nom
compliance.
Robert G. LIE Savage, spokesman
for the National Restaurant Asso-
ciation and chairman of the Ma
tional Restaurant Advisory Commit
tee, and John L. Hennessy of the
American Hotel Association, dis
closed that they had refused to give
OPA statement of industry profits.
They declared that comprehensive
data could not be obtained from
the more than 525 900 restaurants,
and that OPA had no right to ask
for sucn information.
The national representatives and
an emergency committee of Wash
ington restaurant and hotel men,
however, made public at the May
flower Hotel last night results of
survey indicating increases in food
labor and supply costs to hotels and
restaurants since 1943 This ma
terial, they said, had been presented
to OPA but "OPA paid no attention
to it."
The summary, based on replies to
missionaries, included only one
hotel in this area and therefore
may not truly reflect the general
condition in this region" it was ex-
planned. Food costs to establish
ments in Middle Atlantic States in
creased 25 per cent, labor costs, 38
per cent, and supplies. SO per cent,
according to the survey.
/ Mr.. LIE Savage and his associates
took issue with an OPA spokesman
who earlier said Administrator
Porter was available for a confer
ence, but that no request had been
made. Mr.. LIE Savage said his
group tried unsuccessfully to see
Mr.. Porter yesterday, but had to re-
turn to New York late last night
for conference with other industry
! representative this morning.
He reported that c. Dean McNeal.
head of the oPA food price division,
yesterday definitely denied" the
request that the rollback order be
rescinded and that OPA permit 1.-The
writing of a simple regulation apply
ing the operators customary margin
to the acquisition costs of food"
The restaurant and hotel people,
he declared, haw, abandoned their
original idea Of pressing for an ex-
tension of time on the rollback
order.
We are fighting for a principle, L"
he declared. I'VE think this OPA
move is really an attempt at profit
control and cost absorption. We
believe the order is unsound and
unconstitutional and contrary to the
intent OF Congress. The fight is
now bigger than the restaurant
industry and it is not a problem oi
the current meat ShOrtoue Wa ors