Evening star., 1947-04-28
'PriiceCut Plan
Gets Slow Start
AT tHyattsvi||e
Survey Shows Only
30 Pct. of Stores
| Are Cooperating

1
prices 10 per cent in line with the
Newburyport plan.
A survey indicated that no more
than 80 per cent Of the Hyattsville
merchants were adhering to the
plan. Those who had puo the plan
into effect said that so far there has
been no noticeable stimulation in
trade.
/ The owner of a mems clothing
store, Samuel Wolloch, said he was
vigorously opposed to the whole
scheme.
Price cuts will have to originate
with the manufacturer and distribu-
tor" he said. This 10 per cent plan
on the part of the retailers is ruin
Gus and would eventually put us out
of business
On the other hand, L. w. Carr,
proprietor of a large, independent
market, expressed the opinion that
the plan should result in worth
while stimulation of business. He
added that he could not guarantee a
straight 10 per cent cut, but would
reduce prices in line with the mark
up profit.
Drug Price Cuts Limited,
Such items as milk, bread and
sugar, he said, could not be reduced
In price because of the low margin
OF profit "at current prices"
At a mems wear store and at
least one womens apparel shop.
prices were being cut straight 10
per cent on almost all items, from
women's stockings to mems felt
hats.
A druggist said that the drug
business could not very we'll follow
the plan because of fair-trade agree
ments regarding fixing the prices of
most drugstore items. -
The price of haircut and shave
IN Hyattsville was the same as usual
this morning, but at at least one
lewelry store shopper today could
buy watches, fountain pens, earrings,
ETC., and have repair work done at
the 10 per cent reduction.
At one hardware store it was said
that prices of items such as paints.
garden hose and lawnmowers would
be reduced later in the day. The
owner of another hardware estab-
lshment, however, said he did not
plan to cut prices.
d. C. Businessmen SkepticaI.
Washington businessmen, many
OF them frankly skeptical about the
plans effectiveness here, will watch
results in Hyattsville with more
than passing interest.
| Hyattsville is the first community
IN the Washington area to adopt the
NeWsburyport plan, which is spread
ing through the country in the wake
of President Truman's appeal for
price reductions to avert imitation.
Georgetown businessmen also are
watching Hyattsville. Seventy-six
merchants already have agreed to
cut prices 10 per cent starting
Thursday in>what proponents have
termed the Georgetown plan. At
the end of the month customers will
receive an additional 2 per cent re-
bate on every 500 worth of mer-
chandise purchased.
$50 Expected to Join.
James P, Fitch, spokesman for the
Georgetown Trade Guild, which is
sponsoring the drive, said workers
were continuing to canvass mer-
chants, He said he was confident
that at least $50 businessmen in
Georgetown would sign UP.
! On the national price front. Leon
H. Keyserling, vice chairman of the
Presidents Council of Economic
Advisers, called on industry for
systematic and orderly price reduc-
tions on a large enough scale to be
significant" He added that price
reductions already made are en-
couraging but they do not measure
up to what needs to be done"
Other price developments in
cluded:
l. The National Federation of
Small Business, Inc, urged Presi-
dent Truman to order more vigorous
enforcement of the antitrust laws
as means of bringing prices down.
2. Senator Flanders, Republican, of
Vermont, chairman of subcommit-
tee OF the Senate House committee
charged with considering the eco
nomlc reports of Mr.. Keyserling's
group, announced plans to size up
the effects of the Newbuyport plan.
Synchronization Needed,
Mr.. Keyserling, without referring
directly to the program of mer-
chants at NeWburyport, said that
reductions in wholesale and retail
prices need to be carefully syn
chrorized," He added that "it is
difficult feat Of business engineering
to accomplish price reductions with
out bringing on corresponding de-
fiation in employment and produc-
ton but ''it can be done"
Mr.. keyserling. former Federal
Housing official, declared that there
| are crucial spots in our. economy
where the price level is still too high
to comport with continued large
volume operations" and cited the
construction industry.
Big Companies Blamed.
The National Federation of Small
Business, a private organization,
made public a telegram from its
president, c. Wilson Harder, to Mr..
Truman, which declared that most
high prices result from allowing too
much economic power to get into
the hands OF few giant corpora
tions." They can maintain artificial
prices and control the market, he
asserted.
Mr.. Harder urged more vigorous
enforcement of the antitrust laws
as a means to encourage competi-
tive price levels. He asked addi-
tional funds 10 help the antitrust
division of the Justice Department.
Senator Flanders. telling news
men of his intention of looking into
the Newburyport plan, called it "a
commendable experiment" but not
the final answer to the national
problem. Whether it can succeed,
he added, will depend not alone
on the merchants but on the whole
sale prices they must pay.
Sylvan Deitz. spokesman for the
Hyattsville unit of the Prince
GrOrrroc Cor,yf,, -,