Evening star., 1942-10-23
Pork Price Ceilings
Expected 10 Boost
Capital Meat Stocks
Agriculture and OPA
Also Move to Stabilize
Flour Milling Industry

Flour Milling Industry
Washington meat dealers were
hopeful today that yesterdays
order of the Office of Price Ad-
Eninistration fixing dollar and
cents ceilings on wholesale pork
prices would bring a greater
abundance of meat into this
urea.
The possibility that the order
would be protested formally and
even taken to. court was expressed,
However, by Wilbur La Roe, jr.,
counsel for the National Indepen-
cent Meat Packers Association.
& Mr.. La Roe said the protest on
behalf of the small packers would
he based on what appeared to be
Hviolation OF statutory requirements.
He pointed out that the Office of
Price Administration is not legally
Permitted to set a ceiling on live
stock that does not yield fair
margin to the professor.
q IF, as would appear from the new
order, these prices are based on
rate Of 1874 cents per pound for
hogs Mr.. La Roe declared, "the
professor would be left without the
reasonable margin as specified in the
statute, inasmuch as the prevailing
price is more than IA cents per
pound"
!, Will Make Analysis.
He pointed out that his organiza-
ton had not completed its study of
the new price ceilings and their re-
lation to stockyard prices and that
no definite action could be mapped
until this analysis had been made.
! The order, effective November 2,
was issued by Leon Henderson, OPA
chief, to stabilize the pork market
throughout the country. A previous
order froze wholesale prices at their
highest level between March and 7
Of this year and permitted wide
range Of ceilings among various
packers and wholesale dealers.
n
nounced jointly with Agriculture
Department new wheat stabiliza-
ton program designed to eliminate
the squeeze" on the -four milling
industry and to avert possible in
creases in the ceiling price of bread
The new arrangement provides
for the release of Government-loan
wheat at prices which prevailed be-
tween September % and October 2,
the dates used as the ceiling base
for flour.
Mr.. Henderson yesterday said that
the system of pork prices whereby
each wholesalers and packers prices
we're frozen at the level prevailing
between March 3 and 7 had the
effect of freezing "abnormalities" in
prices.
Avoided Washington Area.
Pork prices in the District were
lower last March than those pre-
vailing in many other sections of
the country, local meat distributors
pointed out. The result has been
that shippers in many instances
have avoided the Washington area.
More than 80 varieties of pork
products are given specific wholesale
ceilings in the new OPA order. Sep
arate price schedules are set up for
three zones-the Chicago market,
the Central area, and all sections
outside these two areas. The whole
sale ceiling price for pork loins here,
for example, has been set at 27l4
cents per pound. plus specific al
lowance for freight and handling
costs. In the Central zone the price
is the same and in the Chicago area
It was set at 27l2 cents. These
prices, under existing regulations,
range from 25la to "a cents pound.
Other Wholesale Prices.
Other wholesale prices set, ex-
elusive Of handling costs, are fresh
spare ribs, 20l2 cents a pound;
smoked picnic hams, 29A cents;
Boston butts, fresh, between four
and eight pounds, 30l2 cents; grade
"A" sliced bacon, 351a cents, and
smoked skinned hams, less than IA
pounds, "a cents
The freight differential established
for the Washington area by the
OPA allows 115 per cent of the car
load freight rate from Chicago plus
Is cents a hundredweight. Whole
salers here estimated freight and
other charges would boost the
wholesale. prices about IA to 2
cents pound.
The OPA-Agriculture Depart
n1ents order releases about 10000,
600 bushels of Government-held
wheat to millers, through farmer
borrowers, at prices in line with cur
rent -four ceilings. Wheat prices be-
tween September 28 and October 2,
the basic period, were somewhat be-
low the loan rate, which is IS per
dent of parity. The effect of the new
order is that the Government will
de substituting consumers as we'll as
producers to the extent of the differ
once between the loan rate and the
selling price.
Feared Bread Price Rise.
Agriculture Department officials
Explained that demands for higher
deiling on flour would have been
Inevitable if it had become neces-
kary for millers to bid up the price
df wheat. Such an increased CELL
Ing, they said, would have resulted
In a similar plea for higher CELL
Ing on bread prices, which are now
begged at rates prevailing last
March.