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Helnl Radio News Service
5/1/46
RADIO TUBE CEILING INCREASE; NO ADVANCE ON REPLACEMENTS
Increases in manufacturers’ ceiling prices for radio receiving tubes and allied special purpose tubes, which are similar to radio tubes but of different construction and use, were announc¬ ed today (Wednesday, May 1) by the Office of Price Administration.
Although an increase factor was given for tubes sold as
I replacement parts as well as those sold as original equipment, con¬ sumer costs for replacement tubes will not be affected, the agency said.
Two increase factors were given manufacturers of these products by today’s action, effective May 2, 1946:
For sales of tubes to resellers for replacement purposes 20 per cent over March 31, 1942, levels at which maximum prices for these sales were previously frozen.
For all other sales of tubes, including those used as original equipment on radios, 27.5 per cent over March 31, 1942, levels at which price ceilings were frozen prior to September 1945.
At that time, the agency granted manufacturers of tubes used for original equipment an increase of 10.4 per cent. As a result, today’s increase, which replaced the one granted in September, actually raises current maximum prices for these sales only 15.5 per cent.
These two increase factors are designed to return to the industry 25 per cent additional revenue over 1941 levels on all its sales, OPA said. This increase is necessary, the agency said, for the industry to recover current factory costs including higher wage rates recently granted.
This increase in manufacturers’ maximum prices for replace¬ ment tubes will not affect retail prices because under the agency’s absorption policy the increases will be absorbed by distributors and retailers. Full absorption will be required pending completion of a study now under way. Available data indicates now that wholesalers can absorb 20 per cent of the manufacturer’ s dollar-and-cent price increase and retailers can absorb the remaining 80 per cent of the increase without hardship. This is required pending completion of the agency’s absorption survey, through a new OPA wholesaler’s price list and by leaving. retail ceilings unchanged. Therefore, whole¬ salers are permitted to increase their former prices by 80 per cent of the manufacturer’s increases.
The retailers* ceiling price list has been expanded, how¬ ever, by adding to it recently developed types of radio receiver tubes.
Today's action also permits brand owners, such as large mail order firms, who sell radio tubes under their own brand names, to use the same retail price ceilings as all other sellers at