Evening star., 1947-05-04
Prices
Continued From First Page,

ooSidllOIl VI UiiDlGSdleTS, mace puD-
lie by the White House.
Mr.. Kolodny sent the Chief Ex-
ecutfVe a copy of plea for action
to lower prices which he had ad-
dressed to members of his organiza-
tion through its official publication.
Wholesaler.
Mr.. Truman wrote him.
i was particularly impressed with
your statements that the present
price level is too high, that it is out
Iof relationship with the income level
OF most wage earners and that there
Is a responsibility on the part of the
producer, the wholesaler and the
retailer to make an honest contrib
utlon to the maintenance of a sound
economy
1T Is gratifying to see this fine
response to the plea for price reduc-
ton. 1t is important that there be
a continuing recognition of the price
problem In all segme-'ss of our
economy"
SalS Tor Price Study.
Mr.. Kolodny called on the Ma
tions wholesalers, who he said do
an annual distribution business of
s150,o00,00o 900, to;
l. Re-examine all wholesale oper-
atlons to make sure I'VE are not
adding one cent more than can be
JUSTIFIED under present conditions
for distribution costs and profits"
2. Urge their prime suppliers to
restudy their cost and price sched-
ules, keeping in mind that only by
continuing full production can they
exist even at present prices"
3. Instruct their statesmen to urge
their retail customers to help estab-
llsh prices on as low a level as pos
sible by cutting their selling cost
to the bone, establishing more
efficient operation, consolidating
certain services and being satisfied
with a reasonable profit"
Cooperation Urged.
Each of us in our business" Mr..
Kolodny wrote. can by ourselves
only slightly affect the result, but If
all the producers. wholesalers and
retailers act together, we can vitally
influence our own future. We all
should and must pull together.
IF you agree with me, please do
something about 1t"
Release by the United States
Chamber of Commerce of its Eco
nomic Policy Committees critical
report brought into the open split
on price policy which developed at
the 35th annual meeting of the
chamber here last week.
The Economic Policy Committee
offered it's criticism of the Presi-
dents moral suasion" drive to the
chambers overall policy commit
tee. The latter body turned down
the report and offered one of its
own. That statement recognized
the obligation of business to reduce
prices where and when business
costs permit
The Economic Committee report
observed that implications of this
movement to reduce industrial
prices by moral persuasion have not
been fully explained" 1t added that
"it is clearly misleading to place the
major or sole responsibility for the
present level of prices upon busi-
neSsmen."
Country Divided on Plan.
The division within the chamber
cleavage throughout
the country over the best means OF
the imitation tide. On
the one hand are advocates of di-
rect action in cutting prices now
along lines of the Newburyport plan.
Opposed to this are those who ad-
vocate letting competition and in
creased production reduce prices
over long period.
Merchants in three communities
in the Washington area have en-
barked on variations of the New
ouryport plan-Hyattsville, Alexan-
dria and Georgetown-but thus far
only Hyattsville has been able to
report success.
Sylvan Deitz, spokesman for the
committee said yesterday
that merchants there are very
much satisfied" He said that in
some cases, business has doubled
since the plan went into operation
last Monday.
1T is bringing new faces into our
stores" Mr.. Deitz declared. Gus
toners now ask for the 10 per cent
discount"
IS Per Cent Cooperate.
He estimated that about IS per
cent of the towns merchants are
The remainder are
operators of either chain stores or
other establishments that are pre-
vented from price cutting by regu-
lations, Mr.. Deitz said.
Samuel Kostolefsky, chairman of
a Georgetown merchants commit
tee, said it was too early to assess
the value of the program there since
it only started Thursday He esti-
mated that close to 100 businessmen
were participating.
He said that he had noted pickup
in his own business, handicraft