Evening star., 1943-06-28
George Proposes Shift
OF Price Ceilings in
Favor Of Farmers
Direct Subsidy Sought
For Producers Instead
OF Food Professors
BY the Associated Press.

OF Food Professors
BY the Associated Press
A readjustment of price CELL
ings to balance the purchasing
power Of war workers with that
Of farmers was proposed today
by Senator George, Democrat, of
Georgia as Congress moved to-
ward final approval Of legisla-
tion to choke of the administra-
tons food price rollback pro-
gram.
Senator George told reporters he
interpreted the votes OF both Houses
last week to end this program as
expressing determination by Con-
gress to prevent an increase of the
purchasing power Of industrial
workers as against that of the
farmers"
Administration leaders were said
to be attempting, meanwhile, to seek
congressional authority for direct
subsidy payments to farmers. instead
OF to food professors This move
was seen on Capitol Hill as an effort
to salvage part Of the price rollback
program rejected by both Houses.
War mobilization Director James
F. Byrnes and Price Administrator
Prentiss Brown repeatedly are urg-
ing that Congress leave the way
clear for direct subsidy payments to
farmers in the "hold-the-l line" fight
on increasing living costs.
Senator George charged that the
effect Of administration efforts to
cut back retail prices by subsidies
TO professors would be to discourage.
rather than encourage. agricultural
production and TO give the city
workers an advantage over farmers.
Il think Congress is of the opinion
that price ceilings ought not to be
rigidly imposed but they ought to be
altered to meet the realities as they
exist" Senator George declared. He
expressed the belief that farmers
are willing to accept reasonable"
price ceilings on their products
which would bring their income in
line with that Of the industrial
workers
Senator George said he thought
farmers are tired Of restrictions
which have been imposed on them"
adding that many Of these restric-
tions carry back to the doctrine OF
scarcity"
Proposes Compromise.
Apparently only the formality of
welding different versions into mu-
tually acceptable language remained
to effect the prohibition against
food price-reducing subsidies ap-
proved by both chambers in legis-
lation extending the life Of the Com
modify Credit Corp. for two more
years.
The Senate version carried an
amendment by Senator OMahoney,
Democrat. of Wyoming which would
transfer food subsidy authority from
the Once OF Price Administration to
Chester C. Davis, the war food ad-
ministrator. Senator OMahoney
has predicted veto for the price
reducing subsidy ban, but said his
amendment might offer the basis for
a compromise acceptable to the ad-
ministration.
Il think it Is possible for An
agreement to be reached or the
payment Of subsidies to the farmers
in way that will keep the house
wives cost of living down and still
guarantee the producer what he
needs" he declared.
The amendment banning price,
reducing subsidies, offered by Sem
ator Aiken, Republican. of Ver-
mont, would stop the present sub
sidy programs to roll back retail
prices of meat. butter and coffee
Immediately on enactment of the
measure into law. Subsidies for the
sole purpose OF encouraging pro-
duction Of certain crops and min
erals, to finance higher wartime
transportation costs, and some
other payments could be continued
Calls "Rollback" Plan Dead"
Senator O'Mahoney criticized this
provision as colliding with efforts
to maintain price ceilings.
This is directly counter to the
program laid down by the Execu-
tive and therefore is an invitation
to veto" he declared.
The Wyoming Senator's view was
not shared by Senator Bankhead,
Democrat, of Alabama. who pre-
viously had sought to provide the
funds necessary to continue the roll
back program on meat, butter and
coffee.
Il don't think the President will
veto this BILL" Senator Bankhead
told reporters. He must have the
Commodity Credit Corp. to carry
out great many of the agricultural
programs which the administration
has inaugurated and this bill means
the very existence of CCC."
Senator Bankhead told reporters
he could not predict what conferees
might do about the OMahoney
amendment, but he felt that COM
promise could be worked out on
varying provisions under which the
House approved a $500, 900, 900 in
crease in the lending authority of
the CCC and the Senate lacked this
figure up to $1,000, ,000, 900.
He sconceded that the rollback
program is dead, so far as Congress
is concerned, viewpoint in which
Acting Democratic. Leader Hill
agreed.