Evening star., 1943-12-03
La Guardia Declares
Subsidy Ban Might
Bankrupt U. 5. Cities
By the Associated Press,

Mayor Fiorello H. La Guardia
of New York declared today that
abolition of food subsidies not
only would mean higher living
costs, but might bring an inf1a
ton that would break the finan-
cial back of every city in the
country.
Testifying before the Senate Bank.
ing Committee in opposition to the
House-approved legislation thai
would halt the Government subsidy
program January l, Mr.. La Guards
said a lot OF statistics had been pu1
forward by both sides of the contro.
versy and added
The people of my town can't eat
statistics, we are concerned with
food prices, and they've already gone
up in New York City 80 per CEN
since Al. We can't afford to lei
/ them get out of hand"
Would Imperil Cities.
Mr.. La Guardia, gesticulatine
with his horn-rimmed spectacles
said that 'if we should have inf1a-
ton every city in this country woult
go broke, including mine"
The Mayor was one of several mu.
nicipal administrators here to op-
pose the subsidy repeal, which thu
House passed by a topheavy major.
lty and which farm bloc leaders
seeking higher agricultural prices ir
lieu OF subsidies, have predicted the
Senate also will approve.
Mr.. La Guardia, appearing a.
chairman of the United States Con-
ference of Mayors, testified that il
the Government tried to contro
food prices at existing levels through
ceilings from the farm to the mar
ket place, the producer wouldn't
get his fair share" whereas SUBJ
sides allowed the Government tc
maintain fair price to the pro-
ducer and keep the consumer from
paying the difference
Cites Clothing Cost Rise.
Mr.. La Guardia said that, regard
less of what Labor Department sta
tistics might show, he considered
the estimate of a 80 per cent food
price rise in New York since 1941 as
the most accurate, because it comes
from Mrs. Smith, Mrs. Jones, Mrs
Brown and Mrs. Esposito."
The housewife knows that prices
have gone up and doesn't want them
to go up more" Mr.. La Guardia
added. "Children's clothing costs
have gone up 81 per cent"
Meanwhile, Democratic leaders
were reported preparing to offer the
hostile farm bloc an amendment
which would place a definite time
limitation on the payments. Thus
far, however, farm State Senators
| opposed to subsidies have spurneo
compromise talk and predict the
Senate will 60 along with the House
and vote to end them.
Cost Put at $1,25O, 900. 900,
Jean F. Carroll, chief of the Fooo
Price Section of the OPA, yesterday
told the committee that $3.50 ,OOO,.
00O would be needed for subsidies il
prices are to be stabilized near pres.
ent levels through 1914. Previousl,
Chester A. Bowles, OPA admins.
traitor, had predicted that if subsidy
price controls are abolished LIVING
costs might go up $1,000 900 900 next
year.
Mr.. Carroll estimated present
subsidy costs borne by the Govern
ment run about $l,l00000,0OO an
nually.
Mr.. Bowles' assertion that a rise
IN food prices would result in neces-
sary wage increases was disputed
by Senator Taft, Republican, of
Ohio who denied that limited food
price increases would necessarily
mean that wages would have to be
increased more than they have
been"
"We-feel very intensely that