Evening star., 1951-02-28
Deadline Delay
May Be Needed
On New Prices
Store OfficiuI Doubts
Conversion Con Be
Completed in Month

a move py T6GalIefS 1OI Ocdu'
line extension on the Govern.
ment's new price control system
was predicted today by the heac
of one of Washington's biggest
stores.
The store official said he didn't
see how his own establishment
which stocks an estimated 100000
different items-can complete new
price charts by March 20. The
Office of Price Sterilization sci
that deadline yesterday in an
nouncing regulations substituting
a profit t-margin freeze for the
present price freeze.
More than 100000 retail stores
under the new order must con-
vert their price controls to the
new system. The order covers
clothing, most of the items car
ried in furniture stores, and more
than rs per cent of the goods sold
by most department stores. Some
price rises are considered certain
Conversion a Big Job.
Most Washington retailers have
not yet seen copies of the 28-page
OPS order. The District OPS Of
flee received its first copies avail
able for distribution at mid-morn-
ing.
The department store head. pre-
dieting a "squawk" by merchants
about the deadline, cited expert
ence with a similar margin order
issued by OPA late in World War
II.
He recalled that it took his store
about six weeks to prepare price
charts at that time. Each OF
thousands of items must be listed
individually, he pointed out, and
at present the store is having diff
f1culty even recruiting the addi-
tional typists needed for the job.
The conversion will come just
at the height of the Easter-season
buying rush, he added.
'What We've Been Waiting For.
Another official of the same
store said the new price system
itself "is what we've been waiting
for" and predicted it would make
for smoother operation. About IS
per cent of this stores merchan-
disc will be affected, but only a
moderate" increase in some
prices is expected, the official said.
New prices will start appear
ing on price tags within the next
two weeks. this official said. One
effect of the order will be to re-
lease backlog of new goods that
have not been sold because they
came in at new.wholesale prices
regarded as too high. Under the
new regulation, higher retail
prices now can be set on these
items.
District Price Director Vincent
Holmes had no comment on the
deadline question. At the ma
tional OPS Office, an official said
the time element was was con-
sidered" when the order was is
sued, but would not comment
further.
Increases Assured.
Basically, the order is intended
to fix each stores margins at it's
normal and customary percent
ages, and OPS officials hope this
will correspond generally to the
margins that existed last summer
before the Korean outbreak. A
stores profit comes out of its
margin.
The complex operation is sure
to raise some prices, as retailers
pass on to their customers price
rises put into effect by whole
salers.
It was expected to lower some
other prices. because inflated mar
gins must be brought back to
normal"
Nobody in authority pretended
today to know exactly what will
happen. OPS Director Michael v.
Disable, when asked which will be
greater, the price rises or reduc-
tions, laughed and said I'VE have
a pool on this in the Office"
He said his "guess" is the price
cuts will be greater than the in
creases but he added, this is not
a view shared by others in the
agency"
Most Clothing Covered.
Just about all clothing is cov-
cred except fur garments. Rugs
and lamps are covered. So are
all household textile commodities
like sheets, blankets, curtains, and
all yard goods.
Major retail items not covered in
the order include food, beverages
fuel. large appliances. jewelry
hardware, drugs, cosmetics and
housewares.
Yesterdays order was only the
first in a series of planned steps
to substitute new methods for the
"stop-gap' general freeze order OF
January 25. Other margin-type
orders, on both retail and whole
sale levels. are being worked out
by the OPS. They will cove,
foods and many other items.
Regardless of official uncertain
ty over the effects of yesterdays
order, OPS officials were highly
confident of one thing: The mar.
ginp order will be much fairer
more workable, and more en-.
forceable than any rigid freeze
of prices.
Mrs. ShumIeffer Heads