Montana labor news., 1945-01-18
CEILING PRICES
ON CATTLE
is EXPLAINED

After carefully considering OPA's re-
quest for authority to place ceiling prices
on live cattle, Judge Vinson, director of
economic stabilization, has authorized us
to take this action.
Since practically every one in the ma
tion-from housewives to cattle raisers--
will be protected by these new ceiling
prices, Opa believes everyone would be
interested in knowing the reasons why
OPA felt they were necessary.
AS you know, live cattle is the only
basic commodity that has not been under
price control. The absence of ceiling
prices was permitting a small minority
of slaughterers to obtain the bulk Of the
better grades of cattle at abnormally
high prices Cornering the market in
this way had two serious effects:
% 1t threatened the nations en-
tire food price stabilization pro
gram, and
(2) It interfered with the fair dis
tribudon of the better grades Of beef.
We are confident that placing ceiling
prices on live cattle will remedy this
situation With the cooperation of the
public and the trade, the results will be
a fairer nationwide distribution of all
grades of beef tstable prices This will
benefit housewives and butchers, and
the entire cattle industry
A quick review of the abuses created
by the absence Of ceilings on live cattle
will, I believe, lead you to agree that
OPA has acted in the best interest Of all
concerned. The nations entire food
price sterilization program was threat
ened. Slaughterers who bid abnormally
high for choice" and good" grades Of
cattle could sell them profitably only by
charging wholesalers more than the le-
gal ceiling prices. This started vicious
cycle of over-ceiling sales which ulti-
mately reached housewives. And-strict
adherence to ceiling prices at the retail
counter is the real test Of success Of our
entire food price control program.
Overlooking by an unprincipled few was
very unfair to the great majority Of re
tailers, wholesalers and slaughterers who
are making sincere efforts to abide by
our wartime price and rationing rules.
In face Of the big wartime market for
meat, this condition was building pres
sures for widespread black market oper-
ations up to a dangerous point These
pressures had reached a point that re-
tailers in various parts Of the country
refused to handle beef on the grounds
that it would not be sold profitably at
ceiling prices 1t contained threat to
our entire ceiling price program. It
tended to encourage violations and to put
great burdens on our very limited en-
forcement staff.
The absence Of live cattle ceilings was
seriously interfering with the fair dis
tribution of scarce wartime supplies Of
the better grades of beef Starting at
the slaughterer level, a large proportion
of the limited supplies was flowing
through few distributors who could alb
sorb above ceiling costs or who we're will
ing to ieopardize our stabilization pro-
gram by selling above ceiling prices. This
left the localities served by law abiding
slaughterers and wholesalers, and the
housewives who patronized law abiding
retailers, with less than fair shares Of
the better grades of meat. think we
can all understand that this condition
could not be corrected by increasing
slaughterer wholesaler or retail ceiling
prices. With the demand for meat hign,
a minority of slaughters would still have
been able to bid cattle prices beyond the
new ceilings. This would simply have
resulted in new supply and price
squeeze of law abiding dealers.
SO we have done what is most in line
with the general welfare and our re-
sponsibilities. I think we've done it in
a way that will be fair to everyone in
volved. In brief, this Is how the ceilings
will affect different grolips:
Housewives will be protected from over
ceiling prices and will be able to obtain
reasonable shares of all grades of beef.
Retailers and wholesalers in all locall-
ties will be helped in getting rightful
shares of all grades of beef at prices
that will allow them to sell profitably
at ceiling prices. Packers and slaughter
ers will all get an equal chance to buy
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