Evening star., 1943-03-10
Proposal Reported
To Force Reduction
In Live Hog Prices
Slight Increase Would
Be Allowed in Corn to
Free Feed Grain
By the Associated Press.

The Government was reported
today to be preparing to force a
reduction in live hog prices and
to allow slight increase in corn
prices in an effort to pry loose
some Of the feed grain needed by
livestock producers.
Authoritative sources said Eco
nomic Sterilization Director James
F. Byrnes and Price Administrator
Brown had decided to impose cell
ings on hogs at around Sl4 80 per 100
pounds, Chicago basis, or about 81 so
below recent top prices. and to in
crease corn ceiling prices from ST to
sl08 barrel, Chicago basis.
The proposed increase in corn CELL
ings had the approval of Secretary
of Agriculture Wickard, but not the
hog ceilings.
Meanwhile. Senators investigating
reports Of the wholesale slaughter
of dairy cattle for beef called today
for an immediate increase in ceiling
prices of dairy products to level
Asserting that some high Govern
ment officials had displayed an ap-
parent lack of familiarity with the
dairy industry in freezing prices,
Senate Agriculture Subcommittee
sharply suggested that industry rep
reSentatives be heard in the future
when such problems are under con-
sidera ton.
Late Summer Crisis Seen.
indications are that unless cost
OF production can be reduced or at
least held stationary and unless
more labor is available to dairymen,
the crisis in the industry will be-
come stringently acute by the lat
ter part of the summer" the report
said.
Chairman Smith and Senators
Wheeler, Democrat, of Montana;
Stewart, Democrat. of Tennessee;
Aiken, Republican, of Vermont, and
Bushfield, Republican, South Da-
kota compose the subcommittee
which has been surveying the entire
field Of food production, transporta-
ton and distribution.
The report said witnesses had
testified that ceiling prices placed
milk values to the producer at less
than the cost of production in some
instances and many farmers al
ready have been forced out of bus
mess"
After appearing before the sub
committee, Federal price, agriculture
and stabilization officials agreed to
an increase of one-half cent quart
to producers in three New England
markets and promised to give at
tentlon to acute situations elsewhere,
the report disclosed. While that in
crease will retard the rate-of- pro
duction drop, the committee de-
clared 1t will not be as effective as
it would have been some months
ago before many dairy farmers had
disposed Of their herds and had lost
much of their labor"
Would Maintain Milk OUTPUT.
The report expressed the hope
that a clearer understanding of the
problems of the Government and
the milk producers would result from
the hearings, and that decreases in
milk production might be slowed
down.
Prices must be realized by the
producer which will allow him to paw
wages attractive enough to keep
what labor is left" the committee
asserted, adding that sectional diff
ferences in cost of production, in
Guiding labor, feed, transportation
and all other elements, should be
borne in mind in fixing future CELL
ings.
1t warned that production cannot
be increased by the simple issuance
Of a directiVe,' and said shortages
must be anticipated and forestalled
by further adjustments in ceilings.
since 1T requires three years to re-
place a dairy COW once she has been
sold for beef"