Evening star., 1945-04-01
0PA Cancels Plans
To Cut Beef Subsidy
For Nonprocessors

By the Associated Press.
The OPA yesterday cancelled a
scheduled cut in the beef subsidy
to nonprocessor packers as a re-
suit Of a court finding that these
slaughterers are not breaking even
financially.
The agency also announced it is
conducting a study to determine
whether the pork subsidy to all
packers should be increased.
If this study has not been COM
pleted by May 10, an interim ad-
juStment amounting to 40 cents a
hundred pounds and retroactive to
April will be made, OPA said.
The action affecting nonprocessor
packers eliminates a cut of SO cents
"a hundred pounds-from 80 to 80
cents-in the special subsidy to
these fresh-beef-only slaughterers.
The reduction was slated to 60 into
effect today.
Hearing Slated Tomorrow.
The cancellation came on the
heels of an OPA motion asking the
Emergency Court Of Appeals to set
aside its finding that the nonpro-
cessors' present ceilings, plus the
80-cent subsidy, are not adequate
to assure these packers a profit
as group. A hearing on the mo-
ton is set for tomorrow. a.
Attorneys for the nonprocessors
joined with OPA in filing the mo-
ton, indicating they may be sat-
isfied with retention of the 80-cent
subsidy.
The court found the existing
ceilings of professor packers-those
who handle cattle by-products as
well as fresh beef-to be generally
fair and equitable. These packers
handle IS per cent of the Nations
beef.
Price Administrator Bowles said
he was most gratified" by the court
decision upholding the professor
ceilings.
Decisions Clear Air"
Referring to the decisions as
whole-there were five--Mr. Bowles
said they were particularly helpful
because they help to clear the air
at time when the meat situation
is SO critical"
The only feature of the decisions
causing us concern" Mr.. Bowles
added, was the setting aside of
the regulation as applied to the non-
processing slapghterers of beef.
I'VE believe it can be shown read
lily that the experience of nom
processing slaughterers as class
has in fact been as profitable as
the standards laid down by the
court require. The courts infer
ence to the contrary, which led
it to set aside the regulation, was
drawn from the limited record be-
fore it."
While not alluding to the 50-cent
cut which had been ordered, Mr.
Bowles said OPA believes the pre-
vailing 80-cent subsidy is not
merely sufficient but more than
sufficient"
I'VE feel" he added, that to in
crease 1t at this time would have
most serious effects on the critical
meat situation. 1t would distort
price relationships and hence would
greatly aggravate the maldistribu-
tion of supply"
Mr.. Bowles emphasized that all
ceiling prices for nonprocessor
slaughterers' beef will continue to
be effective, since the decision Of
the emergency court is not binding
for 80 DAYS.
Wilbur Laroe, jr., general counsel
for the National Independent Meat
Packers Association. said In . state
ment that the OPA announcement
makes 1t unnecessary for the pres
ent, in my opinion, to proceed with
further hearings either in the Sem
ate or House as to meat prices. It
does not, however. solve completely
the problem of maldistribution
which can to advantage be studied
further. OPA is to be commended
for moving so rapidly to comply
with the court Judgment