On Aug. 15, the Nixon Administration will celebrate the first anniversary of wage-price controlsbut celebrate may not be quite the word. The date also happens to be the deadline for companies with annual revenues of $50 million or more to submit second-quarter profit reports to the Price Commission. Those filings could touch off the first serious clash between price controllers and business executives.
The problem is a regulation that companies winning permission to raise prices must not push their profit marginsthat is, their percentage of profit on each dollar of salesabove those of a base period. If they do, they...
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