Evening star., 1943-04-09
Brown Says Ceilings
On Meat Products
May Violate Price Act
Squeeze on Packers Held
Serious und UntenobIe By
OPA Chief, Chester Davis
By the Associated Press.

Price Administrator Brown and
Food Administrator David agreed
today in testimony before the
House Small Business Commit
tee that the price ceiling squeeze
on meat packers has become "se-
rious and untenable" Commit
tee members have demanded i'm
mediate action to correct the sit
uation and stamp out the black
market in meat.
In response to questions from
Chairman Patman, Mr.. Brown ac-
knoWledged that Ito be frank" pres
ent ceilings on meat products may
be in violation of a Price Control
Act provision which calls for a
generally fair and equitable mar
gin for processing.
But while conceding that small
packers are in tough shape" the
price administrator said there are
some casualties as result of price
control that cannot be avoided
Livestock Ceilings Hinted.
Both MI. Brown and Mr.. Davis
limited that price ceilings might have
to be placed on livestock to alleviate
the situation, although Mr. Davis
declared, God knows, l don't want
that because of the administrative
headaches involved
He termed the packers plight Just
one part of the whole meat-feed-
grain situation. but described it as
the hottest No. problem I've yet
bumped into"
alton would be alleviated by ra-
ticning and by prosecution of black
market violators.
Mr.. Brown. asserting that prices
of feed directly affect those of meat,
said at one point that action on
the packers problems had been de-
layed because of the Bankhead bill.
That measure, recently vetoed by
the President and then returned by
the Senate to its Agriculture Com
mittee, would have prevented in
clusion of Government benefits in
computing parity prices of farmers
products, an action that would have
raised feed prices.
Personnel Report Due Soon.
Meanwhile, Mr.. Brown said he ex-
pected about April 20 report from
his committee studying OPA per-
sonnel and that he would act upon
the facts" uncovered by that in
vestigation.
He made that statement after
Representative Patman declared
that the committee had found that
three or four" persons in OPA were
responsible for "all the trouble with
meat packers "and our hope is that
those who won't acknowledge their
errors and correct them will be
removed"
Earlier associates of Mr.. Brown
asserted that a reorganization of
the agency's policy making Offices
may be expected by the end of this
month. and predicted business
men" will replace professors" in
several key jobs.
Mr.. Brown, they said. is waiting
only for formal report from the
special committee. The committee
is headed by former Senator
! Clyde L. Herring, who has
been an open advocate of changes.
Mr.. Herring recently said his
personal opinion was that no
man is qualified to make OPA policy
unless "he had either carried a pay
roll or precinct"
Says "Mobsters" Take Part.
The OPA was accused by a witness
before the committee yesterday of
contributing to the operation of food
black markets by arbitrary, capri
cious and confiscatory" regulations,
and Mr.. Patman proposed shakeup
OF OPA personnel He said mob
sters" who operated during prohibi-
ton days had 'muscled into" the
meat business. threatening a break
down in food distribution and
menacing the health of millions.
Witnesses representing independ-
ent meat packers testified OPA
regulations do not allow a price
margin sufficient for legitimate
(See OPA SHAKE-UP, Page A-6J