Evening star., 1951-02-08
Price Regulations
leading 10 Increases
Now in Preparation

Now in Preparation
The Government today was
preparing new regulations which
are expected to result in some in
creases in retail prices Of clothing,
cosmetics. household furniture and
kitchenware.
The new ceilings, to be issued
in a few days by the Office of
Price Sterilization, will replace
the price freeze imposed on nearly
all goods and services two weeks
ago.
It will be the first in a series OF
margin type orders which were
promised shortly after the gen.
eral freeze was clamped on. Under
it the OPS will restrict the per-
centage margin between what the
retailer pays for his goods and
what he receives. Margins will be
limited to what the merchant nor
mally gets in way of price mark
ups.
Relief for Merchants.
Officials said many higher prices
may result because the order will
enable retail stores to pass along
to their customers many increases
that wholesalers had put into ef-
feet before the January Is freeze
date.
In that way many merchants
were caught in an intolerable
squeeze and relief must be given
them, the price officials explained.
That, they said, was one thing
Economic Stabilizer Eric Johnston
had in mind yesterday when he
predicted that the cost of living
will continue to rise in the coming
months and will level off about
midsummer.
Hope to Lower Some Prices.
OPS experts also still hope to
bring lower prices in some cases by
back the margins of mer-
chants where they are found to be
unduly high.
In a radio interview broadcast
last night, OPS Director Michael
V. Disable said his Office would
somehow attempt" to fix margins
as they existed before outbreak of
the Korean war last June. He
added the thought that maybe
there would be astonishing re-
suits in some industries.
Mr.. Disable was talking about
orders to be issued later, not the
one about to be imposed on cloth
ing and house furnishings.
Both Mr.. Disable and Mr.. john
Ston have their stats working on
reports of food prices for submis-
sion to Mobilization Director
Charles E. Wilson.
Concerned Over Food.
Mr.. Wilson asked for the re-
ports yesterday. He was described
as being very concerned" over
food prices. He was also reported
planning to recommend some
changes in the Defense Produc-
ton Act to permit tighter con-
trolls on food prices.
Officials predict. too, that Presi-
dent Truman may send a message
to Congress on the same subject
about February Is.
This may start a big fight in
Congress. Men from farm States
were ready to resist any tighten
ing of price controls on farm
products.
Mr.. Wilson was called to testify
today behind closed doors before
the Senate members of the SEN
ate-House Mobilization Watch
dog" Committee headed by Sena-
tor Maybank, Democrat, of South
Carolina. But his aides said it
was doubtful he could make a
full report on food prices.
Law Stands in Way.
The law now prevents the OPS
from rigidly controlling most farm
products. Meat is the main ex-
ception and its prices are tightly
frozen. Most other food prices are
frozen at retail and wholesale
levels, too. but they are free to
rise whenever necessary to reflect
rises in farm prices.
Labor leaders, joined by some
industrialists and Government of
fcials, believe the law should be
changed. Farm groups and their
in Congress believe
otherwise.
Senator Kerr, Democrat, of
Oklahoma, for example, said yes
terday in newsletter to the peo-
pie of his State that selfish,
misinformed groups" are trying to
beat down farm prices. He said
the farmers economic position is
still below that of other segments
of the population.
Republican Women Protest.
On the other hand, the Ad-
visory Board of the Republican
National Federation of Women's s
Clubs-50 women from 35 States
resolutions here protest.
ing that the January 25 price
wage freeze should have come
sooner and calling on President
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