Evening star., 1942-08-27
Price Ceiling on Hogs
Being Drafted 10 Halt
Farm Runaway
] Wickord's Approval Of
] OPA Plan Necessary;
Cottle May Be Next

{ AS an opening wedge in the
campaign to control runaway
farm prices, the Office Of Price
Administration announced last
might that plans are being formu-
lated to place a price ceiling on
live hogs.
/ Similar action may be expected
In the near future with reference
to cattle prices, it was stated.
Hope that the ceilings would not
be placed was expressed by P. O.
Wilson of Chicago, secretary of the
National Livestock Marketing As
sociation, after he and other pro-
ducer representatives conferred with
Price Administrator Henderson. Mr..
Wilson said he felt the problem
could and would be worked out in
some other way.
The OPA plan for keeping
something of lid on the cost OF
living through control of raw farm
products echoed the views expressed
last week by Secretary of Agriculture
Wickard. Mr.. Wickard advocated
control of farm prices provided ne
cessary steps were taken to assure
the farmer protection against any
price squeeze.
Wickard Must Act.
k. Galbraith, deputy OPA ad-
ministrator, held meetings yesterday
and Tuesday with representatives OF
livestock producers. During the ses-
sions Mr.. Gailbraith said prepara-
ton of ceilings would be worked out
with representative groups of pro-
ducers and on completion would be
submitted to Secretary Wickard for
his concurrence. The Secretary's
approval is necessary before OPA
can take any control steps.
Mr.. Galbraith also outlined steps
being taken to resolve problems
which have arisen under the pres
ent wholesale meat price regula-
tions. Forthcoming ceiling revisions
will eliminate inequalities between
regions and between different class
es of buyers. These price inequali-
ties are largely responsible for the
current meat shortage, it is held.
Vigorous steps are being taken,
Mr.. Galbraith continued, to enforce
the grading provisions of the beef
regulation, another action Mr..
Wickard said must be taken before
control of farm prices. The pro-
visions are designed to insure that
the spread between lower and high
er grades of beef will approximate
the relationships prevailing during
the base period in March. Recently
1t has been charged that so-called
grading by packers has had the
effect of narrowing the difference
between the higher and lower grades
of beef, thus narrowing the ad-
vantage of the producer Of higher
quality stock.
Advance Notice Assured.
The OPA will take no steps which
will have the effect of discouraging
normal feeding and marketing of
livestock, Mr.. Galbraith assured
beef cattle producers.
while producers must exercise
normal caution and avoid paying
high prices for feeders" Mr.. Gal
braith said, "the working out of
ceilings will be undertaken in close
consultation with producers and
with a full and complete recogni-
ton of the market relationships
that are involved.
Wherever possible, advance an
nouncements of impending action
will be made so that producers can
make necessary adjustments. Pro-
ducers may be assured that any
thing in the nature of surprise ac-
ton will be avoided. The strong
demand for beef cattle that is in
prospect means that the market
will be more, rather than less, stable
as compared with other years. Pro-
ducers who buy carefully may look
forward to the coming year with
confidence"
A group Of hog producers from
the delegation met with representa-
tives of the OPA food branch to
discuss alternative methods Of es-
tablishing the ceiling on hogs. Other
meetings will be held next week,
1t was stated, as the price regula-
ton Is developed.