Evening star., 1943-06-12
Legislators Hit
New Ro||back
On Vegetables
Subsidy to Packers
Criticized as Step
I owurd Initiation
By the Associated Press.


In some congressional circles to-
day over the Governments latest
subsidy to roll back consumer
prices, granted to vegetable
packers so they could meet the
proposed wage increases.
"Subsidization of agriculture is
but preliminary to the spiral that
will spread to industry and labor and
lead to inflation," Chairman Can
non of the House Appropriations
Committee said.
His comment came after Fred M.
Vinson, director of stabilization, an
nounced a subsidy-amounting to
approximately s5,0o0.0OO a year-to
the Commodity Credit Corp. for the
vegetable industry. Mr.. Vinson said
canning employees were demanding
higher wages, and if the War Labor
Board approved them. a subsidy for
producers would be necessary to
avoid higher consumer prices.
Further Food Cuts Seen.
Meanwhile, the opinion prevailed
In Government food circles that
further restrictions on civilian sup
plies of a number of food items
would have to be imposed unless
weather and crop conditions i'm
prove materially within the next two
or three weeks.
War Food Administration Of
flcials weighed an Agriculture De-
partment report that adverse
weather during May reduced crop
prospects considerably below pro-
duction goals, but made no imme-
diate changes in TODD distribution
policies.
An aide of Administrator Chester
c. Davis said the report and de-
velopments between now and July l
could be expected to have an i'm
portant bearing on distribution pro-
grams during the remainder of the
year.
Point Increases Scanned.
Will ldI III anu vi Udll SlCCOiy Sdl
dens now beginning to come into
production, some observers spec
ulated on the possibility of an in
crease in ration point values of
canned and processed vegetables-at
least for the summer season.
There also was talk of possible
increase in ration values of butter
and cheese. Civilian consumption
of butter so far this year has been
at rate which cannot be main
tained throughout the year except
at the expense of military require
ments, it was said.
Operating on the theory that con-
sumers do not need quite as much
fat and vegetable oil in the summer
as during the winter, some officials
have suggested a Tightening up on
raticn values of these commodities
Also heard are suggestions that
poultry and eggs be added to the
ration list, and that civilians be en-
couraged to eat more vegetable pro-
tein products. particularly soybean
and peanut products.
Mr. Cannon's view was supported
by Senator Wiley, Republican, of
Wisconsin. who commented that
something more drastic has to be
done if the Government is to provide
labor for the canneries.'
They must get help into the fac
tories even if it means utilization OF
soldiers from nearby camps" said
Senator Wiley, adding that he was
against subsidies in general
House Majority Leader McCor
mack said, however, that effective
price control would. be impossible. in
his opinion. without such subsidies.
He conceded that many persons were
against the idea, but I'VE are per-
sonally against the war, too, and we
have it anyhow
The vegetable subsidy was the first
ordered to compensate for wage
boosts. Others for meat, butter,
gasoline and metals were based on
increased costs or to encourage
greater production.
Mr.. Vinson indicated this was only
the first in series of steps planned
by Government agencies to Insure
en adequate supply of processed
vegetables" He withheld details.
Mr.. Vinson based his authoriza-
tion on an Interpretation of Presi-
Cent Rcosevelt's hold the line or
der of April s, 1943. He said prices
OF canned green peas, snap beans,
sweet corn, tomatoes and other
primary tomato products had been
stabilized under previous agree
ment. Under this the CCC agreed
in January to buy the raw vegetables
from growers at market prices and
resell them at loss so that the
higher current price of raw vege-
tables would not cause any increase
In the price of canned vegetables.
Now, cannery workers are asking
increased wages, and Mr.. Vinson
said if the board granted the in
creased wages, the price stabiliza-
ton of the vegetables would be upset
and he was acting therefore to fore
stall higher consumer prices for
essential cost of living items-a re-
suit inconsistent with the hold the
Line program.
Cost Set at S5,o3o,0o2.
Unofficial estimates of the cost of
the possible wage subsidy were ap-
Fortunately s5,00o,0O0 a year. The
previous CCC commitment to subsi-
oize the raw vegetables had been
estimated to cost S25,000,000 year.
Mr.. Vinson excepted from the
wage subsidy canned vegetables sold
to the Government for the military
service or lease-lend, and ruled that
any price increase resulting from
wage boosts will have to be paid by
the Government agencies which buy
canned vegetables.
The action applied to only the
four classes of canned vegetables,
and Mr.. Vinson, in a statement,
said:
"For minor vegetables. which are
net essential cost of living items.
approved increased raw material
costs and approved wage rate in