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Chairman C. Jackson Grayson ordered them to come up with the figures by this week or else roll back all price increases previously granted and face fines of $2,500 each...

Author: /time Magazine | Title: CONTROLS: Now, On to Phase II | 5/15/1972 | See Source »

Easy Profits. Eventually, said Commission Chairman C. Jackson Grayson, the rollbacks and refunds will save consumers "hundreds of millions of dollars." It developed that he had fallen victim to the Nixon Administration's seeming compulsion to overstatement: he later confessed to TIME Correspondent Lawrence Malkin that the vaunted millions included more than price reductions. Besides these, said Grayson, savings to consumers might come in the form of future price increases that companies either will be scared out of requesting or that the commission will not grant. At week's end, the commission rescinded car price increases of about...

Author: /time Magazine | Title: PRICES: Phase II Sale Season | 5/8/1972 | See Source »

...Grayson plans to compel big-product firms-manufacturers of automobiles or steel, for example-literally to refund any overcharges discovered in their records by paying back individual customers. Only one company so far has been dealt that fate on the basis of its profit margin: Houston's Browning Ferris Industries was ordered to pay back $40,000 to its customers within 90 days, as well as to reduce future prices by a total of $120,000. But Ford's decision to lower prices on its high-volume models, including its LTD, Maverick and Mustang, may well have been...

Author: /time Magazine | Title: PRICES: Phase II Sale Season | 5/8/1972 | See Source »

Firms whose customers are difficult to identify-department stores and gas stations, for example-will be required to make restitution of a more theoretical sort. Instead of actually paying out refunds, says Grayson, they will be forced to "disgorge" excess profits in the form of lower prices-low enough to balance out the original overcharges. Grayson's choice of metaphor was unhappy, since the first products to which it applied were the sandwiches, French fries and other short-order items served up at F.W. Woolworth lunch counters. Their managers had violated the rules by raising prices without obtaining advance...

Author: /time Magazine | Title: PRICES: Phase II Sale Season | 5/8/1972 | See Source »

...Grayson has described the complex test on profit margins, which was not widely publicized or understood at the beginning of Phase II, as "a second line of defense." He meant that it was designed to bring down some prices that had already been raised-something that most American consumers have ceased believing is possible. Thus the rollbacks and refunds should inspire some badly needed popular faith in the equity of Phase...

Author: /time Magazine | Title: PRICES: Phase II Sale Season | 5/8/1972 | See Source »

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