Evening star., 1942-07-31
Meat SHORTAGE
Called Serious
In Eastern Area
Small Packer Group
Asks OPA for Aid
To Insure Supplies

A warning that the meat
shortage in the East "is more Sc
rious than people realize" was
issued today by Wilbur La Roe,
3r., general counsel for the
Emergency Conference of Meat
Packers.
A committee of 18 packers, repre-
senting the conference, met last
night at the Willard Hotel and rec
commended to the Office of Price Ad-
ministration that maximum prices
on live hogs be fixed on basis that
Is not only fair but liberal to the
producer. and that maximum prices
on pork products at the point OF
slaughter be determined by applica-
ton of fair and reasonable con-
version formula" The committee
suggested that if that is not done
the cost-plus principle should be ap-
piled.
The committee also condemned
shat feature of OPA Regulation 1863
which penalties custom slaughtering
Of cattle" and pointed to the fact
that this regulation is playing
havoc" with the sausage business
and is driving many well estab-
nshed concerns" out of business.
Speedy Action Urged.
The needs for prompt Government
action to bring relief to small meat
packers throughout the country and
thereby guarantee more abundant
flow Of meat into present shortage
areas was emphasized by spokes-
men for the small packers.
The meat shortage" Mr.. La Roe
said, us more serious than people
realize, and it is due mainly to an
unfair Government policy which
hxes prices on meat products and
then lets the prices of animals rise
without limit until the profits of
meat packers are converted into huge
losses. A fair-minded public does
not expect meat products to be pro-
cessed at heavy loss"
The exemption of farm prices
from ceilings was described at last
nights meeting by George A. Casey,
Philadelphia, chairman of the con-
ference, as IAN unfortunate type of
class legislation which the Nation
as a whole will not approve"
Cut In Hide Prices Assailcd.
1T is as important to feed the
armed forces and the civilian popu-
lation," he said. "as it is to make
munitions. To recognize the cost
plus principle in thousands of war
contracts. while giving meat packers
less than their cost of production,
Is patiently unfair. The Government
should not be less courageous in
fixing the price of farm products
than in fixing other prices
A protest also was voted against
recent reductions in the prices of
hides, tallow and grease on the
ground that price cuts in those
slaughtering by-products cut further
into the profits of small operators.
Six hundred packers from all parts
OF the country are scheduled to meet
IN Chicago August II and IL to form
the National Independent Meat
Packers Association, described by
Mr.. La Roe as "an organization
which will represent faithfully the
interests Of sthe independent pack
ers and their interests alone"
Meanwhile, efforts were being
made by the Agriculture Depart
ment to spread some of the tremen-
dous lease-lend business among the
small packers. The premium paid
by the Government for lease-lend
supplies has been partly blamed for
forcing the prices of livestock up-
ward. Large packers, it was said
enjoy the lease-lend business almost
exclusively because they are able to
outbid the independents.