Monday, Dec. 11, 1972

Kid Stuff

John Malachowsky, an eighth-grader in West Babylon, N.Y., has been an avid builder of model rockets and airplanes since he was eight years old. When the price of his favorite enamel went from 15-c- to 19-c- a bottle, he realized that his $2-a-week allowance would not absorb the shock. So he sent a complaint to the Price Commission, charging that the Tester Corp. of Rockford, Ill., had raised the list price of its "Pla Enamel" well over 25%. "This is only $.04," he wrote, "but being only 12 3/4 years old, this is a big strain on my allowance. Thank you. A Concerned Consumer!"

The Price Commission referred the complaint to its enforcement arm, the Internal Revenue Service, which sent an agent to the Tester plant. The IRS issued a notice of violation to Tester for clearly exceeding the 2.5% price increase guideline. Last week the Cost of Living Council announced that the Justice Department has filed a suit charging Testor with unlawfully collecting revenues in excess of $150,000. The suit also complained that Testor had hiked the price of its spray paint by 14% and recommended that a federal court order the company to reduce its prices enough to allow customers a saving equivalent to the alleged illegal revenues.

John Malachowsky has continued his crusade to keep up with inflation. He brought his case before his parents and was awarded a 112 1/2% increase in his allowance, to $4.25 a week. If he is lucky, the price controllers will not crack down on him for exceeding the 5.5% ceiling on wage raises.

This file is automatically generated by a robot program, so reader's discretion is required.