TO CORRECT certain misleading and erroneous reports regarding drastic changes and cuts in used machine tool prices, supposedly proposed by OPA, we feel it is our duty to clarify this issue by the facts as we find them after consulting authoritative sources.
OPA is not now proposing any general cut of from 25% to 60% in the ceiling on used and rebuilt tools. The facts are that during the past few months a couple of conferences have been held with men representative of a cross-section of the used machine tool industry, in order to arrive at a more justifiable pricing of real old types of machines and other matters.
It has generally been known in the trade that certain technicalities left the doors open for the opportunist to take advantage of war contractors who are desperately in need of machine tools. For example: A machine tool built 30 or 40 years ago could be priced in the same bracket as that of a machine tool made in 1919. The 40-year-old tool might still be a machine of the same capacity of the present day model, but the degree of obsolescence would be so great that only by the furthest stretch of the imagination could the modern machine be used as an equivalent. On the other hand, there are some machines which were built prior to the last war that are substantially the same as the present day model. At the present time, Price Regulation No. 1 does not allow for these discrepancies.
Then, too, the spread permitted between “as is” and “rebuilt” ceiling was insufficient in many cases to allow even cost for a thorough rebuilding job; furthermore, machinery users with surplus tools took advantage of the ceiling allowable by establishing their prices up to the last dollar under the ceiling. The experienced rebuilder found he could not buy very many desirable tools at these top prices, rebuild and handle them, and still stay out of the red. In view of this, it has been suggested that the difference between the “as is” and “rebuilt” ceiling be increased.
OPA has taken under advisement all of these facts and are working up plans to correct these conditions. Since the beginning of price regulation of used machine tools there have been regular changes in equivalents adopted, but at no time was there any drastic or arbitrary step taken or intimated. In the handling of these matters, the officials of OPA have dealt with them in a fair and intelligent manner and should be complimented,
In view of all this, we feel that any reports being circulated to the contrary should be treated accordingly.