Evening star., 1947-04-27
|priceCuts Listed
By One in Five
In NAM Survey
Bunting Soys Public
Has 'Postwur Hysterio
Over Living Costs
BY III. Asseeisted Press

NEW YORK, April 26. - The
National Association of Manu-
facturers said today one out of
every five members replying to a
QUESTIONABLE reported price
cuts had been made since the
first Of the year on at least one
product while the remaining
four answering had made none.
The NAM said the QUESTIONABLE
was sent on April 10 to its 1858
members, and that the survey is
based on replies from the first 5.742.
It showed:
A total Of 1,194 members reporting
price cuts, or 20.8 per cent of those
replying.
A total of 4,450 reporting no price
cuts, or 77.2 per cent of those reply
ing.
Ninety-ei or 2 per cent, of
those replying left that part of the
QUESTIONABLE blank. The members
were not queried on whether they
had made any price increases.
manufacturers said the main rea-
sons they could not make price cuts
now were: First, the uncertainty of
cost and supply of materials; second,
uncertainty as to future wage scales,
and third, what they termed low
labor efficiency.
Thrown Off Track by Rumors.
Earl Bunting, NAM president, said
the survey was made because the
public was being thrown off the
track too much by rumors" and was
indulging in a little postwar hys-
terra over the high cost of living. y
Manufacturers are being held up
as the guilty culprints in high
prices" MIR. Bunting said, "but there
are factors involved they can't con-
troll"
He said 1t was wrong to compare
present prices in a free market with
theoretical prices in Government
control period, when ceilings were
placed on something that as ofte..
as not was not even available"
Replying to the questionnaire, a
large number of manufacturers con-
tended that they had vigorously
resisted unwarranted price in
creases," a fact which they believed
should rank along with price re-
ductions in the credit column.
Renewal Of Stocks to Be Test.
The NAM published the first re-
suits OF its questionnaire at the
close OF week of wide public dis
cussion of prices, high lighted by
Inauguration Tuesday at NeWbury-
port, Mass. of community plan for
a 10 per cent across board
price reduction.
A test of the plan, some business
leaders observed, would come when
dealers replenish their stocks
when 1t can be seen whether pro-
ducers and distributors also mark
down their lines in. sufficient over
all strength to permit arbitrary re-
tail cuts to remain in effect.
Scattered price reductions con-
tinued to be announced in a variety
"a AAiASc oNCI Vic WCCh GIlQ.
One reply to the NAM question
naire sail hat the manufacturer
who had + increased prices-"ap-
parently is the forgotten man when
attention is focused on price reduc-
tions," contending that merely hold
ing the line was an effort in view
of rising costs.
One company said it "couId easily
increase prices 10 per cent or more
with no criticism from customers"
but was not doing so.
Supplies Still Uncertain.
Literally hundreds of prices have
been cut" NAM reported, land in
dustrialists are trying earnestly to
hold the price line"
A long list of items on which re-
ductions had been made, ranging
from costume jewelry to steel struc-
tural shapes, was compiled from
the replies.
Most of the manufacturers said
that "tae uncertainty of material
supplies and costs" was the principal
factor standing in the way of price
reductions. Of the replies, 4,3o0,
or Is per cent, gave that as the most
important factor in their company's
decision.
Uncertainty as to future wage
costs was called deterrent by
1888, or So per cent. Low labor eff
nclency was reported by 2.459, or
43 per cent; subnormal profit mar
gins by 1,50S, or 26 per cent: and
runaway demand" by 366, or 6 per
cent.
Shoe Industry Leads Cuts.
The leather and shoe industry led
all groups in reporting price reduc-
tions had been made OF those an
swering the QUESTIONABLE, 43.9 per
cent reported cuts.
Food and beverage industries were
(See NAM, Page A-4)