Evening star., 1950-12-13
Price Increases
Swamp District
Food Stores
Fear Of Control Spurs
Wholesale Raise in
Big Grocery Chains
By MolcoIm Lomborne, Jr

Officials OF major chain stores
in the Washington area disclosed
today they are being swamped
with wholesale food price increases
in anticipation of freeze by the
Government on prices.
The stampede to higher whole
sale prices began late last week
and has accelerated in the last
two days amid reports of Federal
action to stem the growing infla-
ton.
For the housewife, whose food
costs have been mounting steadily,
the new advances will add more
costs to the family budget.
The only piece of good news for
the housewife was the break in
the wholesale egg market yester-
day, which sent wholesale prices
tumbling Is or Is cents a dozen.
Accordingly, the Atlantic 81 Paci-
f1c Tea Co. reduced its prices on
large Grade A eggs from So to
81 cents: medium Grade AS, from
80 to IT cents, and large Grade
Bs from 81 to 79 cents. Safeway
Stores said it was cutting its
extra large Grade AS from SO to
SO cents and large Grade AS from
SO to 88 cents.
Consumer Resistance a Factor.
A major factor in the drop in
prices was consumer resistance
to eggs that cost as much as 81
or more dozen, dealers said.
Meanwhile, an official of one
food chain, commenting on the
general advance in wholesale
prices of the last few days, OBJ
served that "all we can do is pass
them along"
From an official Of another
large food chain came this COM
ment: There's a general price
advance all along the line. Every
body we are buying from seems
to be grabbing what they can
get"
A spokesman for a third chain
said he is receiving hundreds
of notices of price increases from
producers.
Officials Can't Act.
AS the law now stands, Gov
stabilization officials are
unable to act on food prices. The
Defense Production Act says any
price ceilings on food must re-
fleet parity prices to farmers. Ten
out of IA major farm products are
selling below parity now. with
only beef cattle. lamb. wool and
cotton above parity.
Accordingly, it would appear
that food manufacturers and re-
tailers can keep right on increas-
ing prices with the consumer
footing the bill.
One food retailer raised the
question whether labor groups
would care to advocate a price
freeze, since wages would have to
be frozen at the same time.
This same official pointed out
that food manufacturers complain
of higher costs for labor, con-
tainers and the raw product.
None Of them, he added, want to
be left holding the bag in the
event of a freeze"
Wholesale Rises Cited.
Retailers cited some examples
of higher wholesale costs in the
last few days. They included mar
garine, up 2 cents a pound; flour,
up 10 cents per 100 pounds; soap
and soap powders, up l cent a
package; beef up to 10 cents a
pound; butter, up l cent a pound !;
shortening, up 5 cents for three
pound containers and coffee, up 2
cents a pound.
A spokesman for one of the
city's largest bakeries said the
recent increases in flour and
shortening already had wiped out
the 1-cent a loaf increase for
bread that went into effect last
July.
Another price increase is nee
essary, but I don't see how we can
do it without losing business" he
declared.