PRICE CUT DRIVE IN AMERICA

Gisborne Herald, Volume LXXIV, Issue 22314, 26 April 1947, Page 5

PRICE CUT DRIVE IN AMERICA

SPEED GROWING INFLATION CURB UP TO 25 PER CENT BUSINESS INCREASES (10 a.ra.) NEW YORK, April 24. A movement for a coast-to-coast slash in prices begun by Newburyport, Massachusetts, gathered momentum to-day as an increasing number of merchants cut prices from 10 to 25 per cent. Reports of reductions came from cities in 11 States. City-wide action was confined chiefly to comparatively small centres. Department store officials in several large cities said that because of the greater overhead they were unable to order a general 10 per cent. cut. . ' Newburyport’s decision to cut prices 10 per cent, has increased business in two days by 10 to GO per cent. Consumer Reaction Wonderful

Businessmen describe the consumer reaction as wonderful and report that customers are boycotting shops who are refusing to join in the plan. Hetailors have been Riven the almost unanimous support of the manufacturers. .. , . Newburyport hopes its plan will be adopted throughout the nation. In New York the Geneial Cable Coiporation, despite its recent wage increases and big uncompleted oidcrs on its books, cut its prices 8 to 12 per cent, and the president called on all business to do likewise to avoid a depression.

In Ca.mbridge, Massachusetts, Lever Bros, announced a 10 per cent, reduction in prices for all its major soap Droducts in compliance with President Truman's request for general price cuts. A 10 per cent, reduction also was announced in the prices of the ColgatePalmolive Peet Company and one company _ manufacturing important chemical ingredients of soap intends to cut its prices to soap manufacturers by May 1. Rent Increases Banned In Washington, the House cf Representatives Banking Committee rejected proposals for an immediate l.alionwide 10 per cent, increase in -ents and voted for the virtual extension of the existing Federal rent controls at least until December 31, 1947. An agreement granting wage increases of at least 15 cents an hour has been reached between the Bethlehem Steel Corporation and Congress of Industrial Organisations’ United Steel Workers’ Union. Seventy thousand workers will benefit. General Motors Corporation and the C. 1.0. United Automobile Workers have reached an agreement at wage increase of llj cents hourly and paid holidays equivalent to an additional 3J cents and also an improved vacation plan. The agreement covers 220,000 employees and is expected <o set the pattern for more than 500,000 of the nation’s automobile workers. Negotiations are continuing on the union’s demands for social security and old age benefits. The automobile assembly lines in Detroit came to a virtual standstill tin's afternoon when unionists left their jobs to demonstrate against the labour legislation now before Congress. The company officials said the stoppage would cost the industry millions of dollars, .