The Ypsilanti daily press. (Ypsilanti, Mich.) 1928-1962, 1943-06-22
Senate Not
in Favor of
Price Change
Seems to be
Following Lead
Taken by House

Washington. June 22-INs-sen.
Harry F. Byrd, Cd Va, today said
that Senate sentiment is swinging
sharply toward abolition Of price
roll back" subsidies and the Office
OF War Informations domestic
branch.
Il believe that the Senate will
back up the House action both
against subsidies and limiting the
Owl to foreign propaganda" Byrd
said. That seems TO be the senti.
ment."
The Administration, fearful that
It's price control program will be
wrecked. wah handicapped In the
subsidy fight by split in the ranks
OF New Deal senators.
Sen. Albert B. Chandler (D) XIV,
staunch Administration supporter,
also reported a strong Senate SEN
timent against using subsidies in
order to hold down food prices un.
der the roll back" plan.
They ought to take the ceilings
off some commodities to encourages
production" Chandler said. They
could start with chickens. II they
took the ceiling off prices would
rise, but production also would rise
and the increased supply would
bring down prices"
The Senate Banking Committee
postponed until tomorrow a sched-
uled meeting to consider an anti
subsidy amendment by Sen. Robert
A. Taft (R) Ohio to the Commodity
Credit Corporation bill. The House
Rules Committee was called upon
IN hearing to grant right-of-way
on the floor for consideration OF a
subsidy ban on a similar House
bill.
The Senate Appropriations Com
mittee begins hearings tomorrow
ON the House-approved War Agen-
cies bill, which both includes a sub
sidy ban and calls for abolition OF
the owl damestic office.
One usually we'll informed Ad-
ministration senator predicted res
ignation OF Owl Director Elmer
Davis, who threatened to quit II
the Senate backed up the House
action in killing funds in the War
Agencies bill for his domestic
branch.
Congressional opponents OF sub
sides refused to be moved by the
argument that a denial OF subsidies
would result in smashing price
ceilings and causing wages to spiral
upward.
IT they would be firm on wage
and price controls there wouldn't
be any spiraling," said Sen. Byrd.
They are trying to raise wages on
one hand and paying subsidies on
the other so wage increases won't
be reflected in the cost of goods.
1t would be much. better to pay
little more in prices now than to
pay subsidies out OF the Treasury.
They would have to be paid back in
taxes after the war when the people
would be less able TO pay"
Byrd. however. was especially
irate over the manner in which the
Administration plans to take $780,
100000 from the Reconstruction
Finance Corporation to pay the
roll back" subsidies on meat, but
ter and coffee"
THE RFC does not claim It has
legal authority to pay subsidies on
food said Byrd. But they say
meat, butter and coffee are not
food-that they are manufactured
or processed articles"
Byrd declared that use of the
RFC to obtain subsidy money us
the most outrageous and deliberate
effort to bypass Congress ever
known"
This $3.50 900, 900 is Just the BE-
ginning" said Byrd. But the worst
thing about subsidies is that they
start them without authority Of
Congress through the RFC. And
they don't pay subsidies TO farmers
they pay them TO packers and
others"