Ceiling Raiser

When Congress okayed the Capehart amendment to the price-control law, Harry Truman described the legislation as "terrible." Under the amendment, manufacturers are permitted to raise their ceiling prices to allow for all cost increases from the start of the Korean War up to July 26, 1951. Last week Price Boss Mike DiSalle reluctantly made the "terrible" amendment official, eased the price squeeze on corporate profits. He issued an order allowing about 125,000 manufacturers--one-fourth the nation's total--to figure in their added costs. (Before his order, manufacturers had to absorb increased labor costs since last March, increased material costs since December or March.)

The order covers everything from furniture to processed foods. Manufacturers whose sales have been lagging (e.g., the television and appliance industries) probably won't raise prices immediately. In any case, DiSalle, who will soon extend the price-boosting order to many other products, does not expect the increases to be felt at the retail level for some months. But eventually the amendment will give another painful nudge to the cost of living. --

Because of a shortage of corncobs,which are needed to make furfural (a chemical compound) for defense products ranging from synthetic rubber to nylon, OPS junked cob controls last week, hoping that a higher price will bring more on the market. Other items recently exempted from control: wooden haircurlers, glass ice cubes, toy bones for dogs, incense burners, wigs and toupees.

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