Evening star., 1943-05-30
Food Subsidies
To Start June 10
On Butter Price
Government to Pay
5 Gents q Pound
To Effect RoIIbock
FOOD COSTS INCREASED % per
cent in large cities in month.
Page AS
BY CARTER BROOKE JONES.

BY CARTER BROOKE JONES.
Despite the widespread criti-
cism of food subsidies, the Office
of Price Administration last
night ordered a rollback of
about 10 per cent in the retail
price of butter, effective June 10,
and announced a subsidy of 5
cents pound to be paid cream
cries.
The announcement Immediately
raised the prospect that James F..
Byrnes, War Mobilization director,
will have as one of his first major
problems the settling of the ques-
ton as to what extent subsidies may
be used. A rising tide of opposition
to food subsidies marked Congress
sional debate and committee hear
lngs last week, and within the a.d.
ministration itself there are differ
ences of opinion.
OPA officials claimed last night,
however, that their rollback pro-
gram has been approved by Mr..
Byrnes and that it is assured OF
going ahead in spite of opposition
from Congress and some farm
groups.
Byrd Charges Evasion.
Senator Byrd, Democrat, of Vir-
ginia, added his voice to this oppo-
sition last night when he charged
the Administration was turning to
subsidies because it has not had
the courage to come to grips with
the fundamental problem of infa-
ton"
The butter subsidy will be paid
by the Defense Supplies Corp,
subsidiary of the Reconstruction
Finance Corp, At the rate of cents
pound at the creamery level, be-
ginning Tuesday. Next Friday the
prices creameries charge others will
be cut by the same amount. Sat-
urday wholesale prices will be cut
by the scent margin. The retail
price cut will take place the fol-
lowing Thursday, June 10.
Similar announcements will be
made in the next few days on the
promised reduction in meat prices,
with details of rollback in tho
price of coffee to be revealed later.
Price Administrator Brown had an
nouncd some time ago that price
decreases in the three products
would be effected by subsidies about
June /,
The meat-butter coffee subsidy
has been estimated unofhcially to
cost s4OO 100000 a year.
OPA Defends Move.
An average rollback of 51z cents
point in the retail price of butter
will be brought about. OPA said the
extra half cent resulted from mark
ups at the distributive stage, and
the fractional decrease would fall
one way or another in actual sales,
so that some savings will be cents
and others s."
The OPA announcement pointed
out that these price cuts in staple
foodstuffs were pledged recently by
Administrator Brown as "one part
of OPA's program to carry out the
President hold-the-line order to
keep down the cost of living on the
home front" The statement ad-
ded:
ut is the purpose of OPA that
the rollback be effected with a min
mum of financial loss at any level
in the dairy industry, from the farm
through the retailer. The buyers
OF butterfat-the creameries-
the subsidy which will be paid them
by the Government, will be receiving
as much for their butter as previ-
ously and hence will be expected to
continue to pay the going price to
the consumer"
The OPA explained that the lag
between the subsidy payments and