Evening star., 1952-05-28
0ne-Cent Increases
In Many Ceilings on
Foods Due Tonight
BY the Associated Press

ny me Assoeiofed PreSs
The Government is expected to
announce tonight ceiling price
boosts Of about a penny each for
a wide range of food items.
That's how much the Office of
Price Sterilization estimated the
increases would bring to the gro
cer-although it said the Nations
food bill would go up about 500
million a year under the new
ceilings.
These figures were challenged
by four food distribution groups
which said the adjustments would
have little effect on prices. They
said competition. not ceilings, de-
cides prices. If food retailers had
gotten all the price relief they
have sought and could reflect this
in their prices, they said, increases
of food prices to consumers would
be only about 5 cents a week per
person. '....--..,-..-.....
Scare Tactics Charged. :
"OPS is using scare tactics in
an effort to perpetuate CONTROLS
said a statement by the National
Association of Retail Grocers, the
COOPERATIVE Food Distributors of
America, the National Association
of Food Chains and the Super
Market Institute.
"The public should understand
that competition is the factor to-
day which is keeping food prices
down." the statement said. ops
has little or nothing to do with it.
More than so per cent of all the
foods sold today in grocery stores
are below ceilings. Most of the
food items selling below ceilings
are those items most frequently
purchased by consumers in the
low and middle income groups"
The statement saidscontrols are
doing more harm than good in the
few cases where supplies are tenn
porarily short.
However, OPS officials made
clear to reporters that the higher
ceilings would not necessarily
that prices of all the items
affected would go up. They will
vary with stores and public de-
mand, they said.
All Retailers Affected.
The OPS order will authorize
higher margins for all retail food
stores-both chains and inde-
pendents.
OPS officials said the action is
necessary because earnings of the
grocers have declined.
Affected by the higher margins
and ceilings will be some of the
items in this wide range of foods:
Dry cereals, canned vegetables
and soups, pickles, vinegar, olives,
most canned meats and processed
fish such as smoked fish and her.
ring, oleomargarine. cookies and
crackers, frozen foods, jams and
jellies. canned fruits and others.
Tuna and salmon are not in
cluded.
OPS officials said for the most
part the increases would run about
a penny per item. On some larger
cans or items and on more expen-
sive quality foods, the higher mar
gins can mean ceiling rises of q
cents or slightly more. Although
overall margins will be higher,
they said in some cases it may not
mean an increase on an individual
item.
Near or at Ceilings.
The officials said the increases
are being allowed on those items
on which grocers figure they can
get higher prices. They said mar
gins have not been changed onI
items that are selling well below
ceiling-only on those items near
or at ceilings. Those are the items
for which they figure the public
will pay more. an official said.
OPS officials said the increases
generally will come on those items
which are in scarcer supply, such
as vegetables.
OPS called the present in
creases an interim action. The
agency now Is making a detailed
survey of earnings for the food
industry. When this is completed
about mid-June, a study will be
made to see whether margins then
allowed are sufficient to comply
with the law.