Evening star., 1943-06-17
Limit Proposed
On Payment Of
Food Subsidies
George Says Rigid
Price Control May
Have to Be Dropped
BY the Associated Press

Opponents of subsidy pay
ments to cushion price decreases
appeared headed today for a
congressional floor fight over
whether use of Government
funds should be limited or pro-
hibited entirely In the adminls-
tration move to roll food costs
back to lower levels.
Some members OF the Senate
Banking Committee. which previ-
ously approved legislation to halt
any subsidies without congressional
sanction. sought to temper the re-
striction with provision that would
establish a ceiling on the payments
Still opposed TO the whole idea
however was Chairman George of
the Senate Finance Committee, who
criticized subsidy payments as
"doubly inflationary." and "a most
inadVisable program"
Wide Demands Feared.
From the congressional point of
view. The Georgian declared. we
know how impossible it will be to
resist the demand for subsidies from
everybody feeling the pinch of price
control"
Senator George expressed belief
that the administration NAV have
to abandon rigid price control and
wage ceilings to avoid interference
with production. He suggested pos
slblllty of setting a new overall
ceiling which, he added, would call
ior adjustments in wages and prices.
Acting Chairman Bankhead of the
Senate Banking Committee which
yesterday heard Price Administra-
tor Brown declare it would be i'm
possible TO control prices without
subsidy payments, announced that a
substitute for the anti subsidy legis-
lation would be drafted next week.
While he refused to pre- iict the
committee decision, he expressed
doubt that Congress would repudiate
the administration subsidy pro-
gram to offset reductions in the re-
tail prices of meats.
Taft Draws Up Proposal.
Meanwhile. Senator Taft, Re-
publican, of Ohio drew up a proposal
which would permit subsidy paw
ments to compensate for increased
transportation costs, reduce Govern
ment expenditures for war equip
ment and for other uses specifically
authorized by Congress"
Senator Taft said that while he
objected TO reliance on subsidies as
means of controlling prices and
wages, he wouldn't mind carving
out the present program on meats.
butter and, eventually, coffee, up to
$500, 600
Some other committee members
including Senator Maloney, Demo-
crat, of Connecticut, said they fav-
ored Senator Taft's proposal gen
orally" but predicted it would be
difficult to get Senate permission for
any kind of subsidy.
Opposition to subsidies "at any
level" was recorded by representa-
tives of retail land wholesale food
dealers at the conclusion of a two
day national conference here yester-
dav
The objection to the administra-
tons Subsidy plan was voiced in an
1l-point resolution drawn up by the
retailers. which was Immediately
concurred in by the wholesalers.
Other high points at Yesterdays s
meeting. called by the OPA, were:
The announcement that OPA re-
gional directors will soon be per-
mitted to make slight adjustments in
price ceilings to relieve "squeezes.
A demand for wiping out of the
differentias between Independent
and chain stores, setting up instead
one maximum price for each COM
modify which would apply to all
stores.
Other demands made by the re-
tailers in their resolution included
the scrapping of price control on
luxury items, the halting of "adver-
tising dollars-and-cents" prices for
each class of store, the "discontin-
uance of public propaganda brand
ing retailers as unpatriotic and seek
ing to overcharge the public" the
abolition of OPA "one-man" courts
and cutting down in the number
and complexity of reports.
Urging $4,000, ,00O,O 900 subsidy for
rolling back food prices-a program
previously requested by William
Green, president of the American
Federation of Labor-Philip Murray,
president of the Congress of Indus
trial Organizations, told the Senate
Banking Committee that unless liv-
ing costs are pushed back. wage
controls must be relaxed.
Mr.. Murray declared, however,
that holding the line against infa-
ton is more desirable than releasing
wage controls, because, he said, If
imitation continues and accumulates
heat to the point of outright con-
(See SUBSIDIES, Page A-2D