Evening star., 1946-02-19
Ford Asked 55%
Auto Price Rise,
.Bow|es Says
House Committee
Nay Coll Head
Of Motor Firm
By jones Y. Newton

chester BoWleS revealed today
that Henry Ford II, advocate Of
the dropping of all price con-
trolls, had requested a SIS per
cent increase in prices of his
new cars when the automobile
industry began reconverting to
peacetime production last sum-
mer.
Mr.. Bowles, who has been desig-
mated by President Truman to head
the Governments new sterilization
program, made the revelation be-
fore the House Banking Committee
which Is considering the adminis-
tratlon's request to extend the price
control and stabilization acts be-
yond the scheduled June 80 expira-
tion date
Committee Chairman Spence in
dlcated later that Mr.. Ford would
be asked to testify in the hearings
and to explain his position that
Government controls are hampering
production.
Request Called Outrageous"
Mr.. Bowles described the Ford
request as IAN outrageous increase
even to ask, much less to charge"
and he added Il do not think Mr..
Ford's action in asking the SIS per
cent increase is in line with the
tradition of the Ford Co."
Mr.. Bowles predicted that all
price controls with exception of
remnant" and rent control could
be removed by June 30, l947. the
date to which the administration
has asked Congress to extend stabil-
lzation laws. He indicated that con-
trolls over building materials prices
would be included in the remnants.
The name of Mr.. Ford was brought
into the hearings when Represent
ative Patman. Democrat, of Texas
asked Mr.. Bowles to explain the
campaign of Mr.. Ford and the
National Association of Manufac-
turers for release of price control.
MIR. Bowles pointed out that the
Ford Co. claimed that it was losing
$500 a car on the basis of prewar
prices and that price control further
restricted production of automobile
parts.
At the time of the Ford state
ment in November, Mr.. Bowles said.
the company's output was at a rate
OF about one third of 1941 produc-
ton. The stabilization chief added
that obviously they wouldn't make
money at any such low volume. -
He said OPA had removed price
controls from automobile parts-an
action Mr.. Ford apparently did not
know about.
Crawford Suggested Calling Ford.
In revealing the Ford request for
the huge price increase, Mr.. Bowles
said he thought it would show why
Mr.. Ford is anxious to have price
controls removed" He said that
OPA ordinarily would not reveal
the prices requested by manufac-
| turerS.
Representative Crawford, Repub-
lican, of Michigan made the first re-
quest that Mr. Ford be invited to
testify before the committee.
I think it is going pretty far for
the President of the United States
to attack the General Motors Corp.
and for the OPA to attack the Ford
company" Mr.. Crawford said.
Representative Buffet, Republi-
can, of Nebraska asked Mr.. Bowles
what authority OPA had been given
that would allow them to attack Mr.
Ford. Mr.. Bowles replied that he
was only attempting to correct false
and misleading statements"
Mr.. Bowles also presented figures
answering charges of the building
industry that OPA pricing methods
had caused the output of building
materials to drop to about 20 pei
cent Of prewar levels. He said lum.
Der production was down only 8 pc,
cent from 194l, while the output OF
) brick and clay sewer pipe, virtually
halted during the war, stood at 6(
and 80 per cent, respectively. of pre-.
war output and ARE going up fast
Representative Sundstrom, Re-
publican, of New Jersey asked Mr.
lBowles when he thought price con.
trols could be dropped entirely. Mr.
Bowles replied that it had been ex-
pected it could be done by this sum-
mer. but that "the pressures dnfla-
tionarD had been much greater
than anticipated"
I hesitate to guess on any time
table of dates" Mr.. Bowles said
but If this act is extended to a yeal
from June 30, it will take care Of
most of our problems. We do not
want to keep controls until the last
technical problems are settled"
Then he explained that ht
(See OPA, Page A-5)