Evening star., 1943-07-11
0PA Fears CCC Bill
May Wreck System
OF Meat Pricing
BY JAMES Y. NEWTON.

Off1ce of Price Administration off
ficials fear that provision of the
Commodity Credit Corp. bill ban
ming grade labelling might result In
collapse of the entire meat pricing
system, it was learned yesterday.
While Price Administrator Brown
was successful in his fight against
provision of the OPA appropria-
ton bill which would have pro-
hibited Standardization of commod-
tiles and wrecked the meat price
control and other important pro-
grams, the rider was attached, ap-
parently unnoticed, to the CCC bill
which officials are afraid might ac-
complish the same end.
The battered CCC, bill now is
awaiting President Roosevelt's sig
nature. The Objectionable provision
would amend the Emergency Price
Control Act of 1912 to read, in part:
Nothing In this act shall be con-
strued (2) as authorizing the
administrator to require the grade
labelling of any commodity"
inserted. In conference.
The provision was placed in the
bill by a Conference Committee.
The committee report on this pro-
vision states:
THE second clause prohibits any
requirement for grade labelling of
any commodity as that term is de-
fined in Section 302 (c) of the Act.
This definition embraces all COM
modities and products, including
hosiery and wearing apparel"
Some officials believe it was not
the intent of Congress to scuttle
the meat program, and that the
provision was aimed at eliminating
any possibility of grade labelling
commodities at retail other than
meat.
The grading and labelling of
meat forms the whole basis for
OPA control over the prices of
various cuts and grades. Off1cials
feel the provision also might mean
the end of grade A and B designa-
tions for rayon hosiery. They said
it could have no marked effect on
any other program. 49,
Lawyers Seek Interpretation.
OPA attorneys now are working
on an Interpretation of the grade
labelling clause They declined to
comment, however, until Mr., Brown
has issued the official opinion of
the restrictive provision. Other Off
cials said two possibilities seemed
open to OPA in seeking to avert
collapse of the meat program. These
are:
l. Naturalization of the clause
to interpret it as applying only to
sales made at retail to consumers.
They said most Congressional and
industry objections have been aimed
at grade labelling at the consumer
level. This Interpretation would
permit grading at the wholesale or
packer level and allow OPA's pric-
ing base to stand. They admit such
an Interpretation is weak. in view
of the specific language of the COM
mltUee report.
2. A possibility that the War Food
Administration might be persuaded
to issue a grade labelling regulation
for meats on the theory that produc-
ton might be cut by the elimination
of the different grades. Although
the CCC clause does not prohibit
grading where standards generally
have been used by industry, officials
say it would be useless without the
stamping of the grades on the car
casses sNd cuts.
The grading of meats resulted in
many problems at OPA even before
Congress introduced restrictions.
When the agency issued its first
regulations on prices year ago it
established special specifications fo"
grades. Upgrading by some packers
later caused OPA to adopt Agricul-
ture Department grades for meats
and to require grading by Govern
ment inspectors.
Elimination of the grades, off1-
cials say, would once more lead to
upgrading. 1t might require estab-
lishment of an average price for
each variety of meat, which they
say would surely make the food more
expensive for the consumer.