Evening star., 1943-11-16
Foes Of Subsidy
Threaten Move
To XIII 0PA
House Committee Set
To Act if President
Presses Demand
BY the Associated Press.

BY the Associated Press.
House subsidy foes today
threatened to attack the very
existence of OPA unless Presi-
dent Roosevelt drops his de-
mands for authority to pay out
Government funds in order to
hold down retail food prices.
Chairman Steagall of the House
Banking Committee disclosed the
strategy. Whether it will be en-
ployed depends on events. e..
Meanwhile, Chairman Smith of
the Senate Agriculture Committee
commented that the administra-
tons price rollback- subsidy pro.
gram should bring a political roll.
ing back" in 1914.
w. D. Farr,, Greeley, Colo, sec
retary of the Colorado Nebraska
Lamb Feeders Association, had lust
testified before the committee that
livestock producers were the prin.
clpal sufferers under the Govern.
ment's rollback of retail meat prices.
You've given picture of what's
happening under this rollback,"
Senator Smith interposed, then
added, Now it's up to the people to
do some political rolling back at the
next election
The House may take I'D Thurs
day bill extending the life of the
Commodity Credit Corp, including
an amendment banning all con-
sumer subsidy payments after this
calendar year.
Mr.. Roosevelt vetoed such a bill
before. Mr.. Steagall said that if
the President takes the same atti-
tude again, his committee will at.
tach the prohibition to legislation
extending the life of the once of
Price Administration beyond June
80, 1914.
You know they want that con-
tinued," said Mr.. Steagall, referring
to OPA.
The swell Of criticism against sub
sides continued in the Senate
where the Agriculture Committee
avowedly against them, called in
more than 200 witnesses, Including
State Agriculture Department heads
and food producers spokesmen for
their views.
Charles w. Holman, secretary of
the National Cooperative Producers
Federation, first witness for the
dairy industry, declared that sub
sides are lin themselves wastefui
and intlationary."
He said in statement that sub.
sidy payments not only must com,
out of the pockets of taxpayers, bu
they add doubly to the burden o
taxation because expensive admins.
trative costs are heaped upon tn,
amount of the subsidy"
This reason alone, in addition Il
all others, including the danger o,
RECOMMENDATION, is enough to meri,
opposition to subsidies by dair,
farmers and all other people," MI
Holman said.
Big Milk Output Drop Feared.
He predicted 1s43 milk production
would fail by at least 1000, ,0O(
pounds to meet the goal Of 122 600.
600 pounds"
When milk production declines Ia
that extent, something is wrong with
the price policy he declared.
Senator Danaher, Republican. O,
Connecticut disclosed last night
that Gov. Raymond Baldwin o,
connecticut had appealed to Presi-
dent Roosevelt in a telegram for an
emergency conference on food trou.
bles. The Governor warned the
President that milk production wa
declining critically.
Backing up this contention was
Senator Aiken, Republican, of Ver-
mont, who declared that milk pro-
ductlon was dropping despite the
Federal dairy subsidy program be-
gan October l. He added that he
did not believe any conference OF
subordinate officials would do 4
bit because I think they are all op-
Grating under directions from the
White House, and the President il
the only one whose mind has to be
changed"
Subsidies Called Bribery"
Earlier Joe Montague, Fort Worth
CTex) lawyer, told the Senate Agri-
culture Committee that subsidies
were a form of bribery and black
MALI being used as a weapon to set
up a dictatorship. P. o. Wilson
Chicago, another livestock repre-
sentative, predicted that the present
price regulations will bring about an
acute shortage of beef.
Ray O'Brien, president Of the Chi
cago Board of Trade, declared that
the Government would have to con-
f1scate grain stocks from farms for
livestock feeding and industrial pur-
poses next year unless steps were
taken Immediately to "break the
stalemate in the corn market"