Evening star., 1945-03-22
Packers Clash
With Bow|es al
Senate Hearinq
Charge OPA Policy
Blocks Increase
In Beef Supply
BY the Associated Press,

BY the Associated Press.
Price Administrator Chester
Bowles and a packers spokesman
at a meat inquiry to-
day over the value of newly an
additional subsidies for
Arthur L. Winn, counsel for the
National Independent Meat Packers
told the Senate Bank
ing Committee, that the strings at
tached to the subsidy would require
many packers "to pay. 81 to get so
cents" The maximum 50-cent addi-
tional subsidy would go only to
those paying ceiling prices for live
cattle and Mr.. Winn said packers
are losing money even when buying
below ceilings.
Mr.. Bowles, sitting nearby, inter-
rupted to say he believed the addi-
tional subsidy would put beef
slaughterers in reasonably good"
shape.
Face-to-Face Exchange.
Mr.. Winn and Mr.. Bowles had
been called by the committee for
a face-to-face exchange on their
argument of whether OPA controls
are putting the packers out of busi-
ness. The committee is considering
legislation extending the Price Con-
troll Act beyond June 80.
At the conclusion of the hearing,
however, Senator Mardock, Demo-
crat, of Arizona observed that the
situation was ''muddled" and Sena-
tor Tobey, Republican, of New
Hampshire told Mr.. Winn and Mr..
BoWles:
You two experts are as far apart
as Dan and Bersheba. How can we
Senators determine the facts?"
While Mr.. Bowles and Mr.. Winn
were testifying, Undersecretary of
War Patterson told a news confer
ence that the Army's food supply
level "is below the present minimum
safety factor in case of a break
down anywhere" in getting food to
the soldiers at the front. Mr.. Pat
terson said I'VE have no stockpile
fof food in the Army, as the word
is commonly understood"
Undersecretary Patterson said the
Army attempts to maintain "a sup
ply level that will assure an un-
broken flow of food to the men
fighting on the various fronts"
Other Nations Minor Source.
Mr.. Patterson said, I'VE would
| like to reach the minimum safety
factor, but we have no stockpiles in
the Army"
In answer to a question, he said,
I'VE do get meat supplies from other
nations, but it is a very minor
source" Australia and New Zea-
land have been very cooperative,
and their help is greatly appreci-
ated," he added.
Mr.. Winn, who said his organiza-
ton included TOO meat slaughterers
but none of "the so-called big pack
fers," declared that the "below-cost
price policy of OPA on beef is de-
nying to the country large increase
In the beef supply"
The Office of Price Administra-
ton itself, Mr.. Winn asserted. ac-
knowledges that its wholesale CELL
ing prices on beef force the packer
to take a loss but contends that
the industry has been able to make
up these losses on pork.
Subsidy Plan Explained.
But packers now are losing 80
cents on every 100 pounds of pork.
Mr.. Winn said, and have been los
ing on pork for eight months.
The recently announced subsidy
adjustments which OPA said are de-
signed to help equalize the COM
petitive position among slaughterers
were explained, meanwhile, to the
special House committee Investigate
ing the meat situation.
A. L.. Erickson of the OPA meat
division said the order, announced
last week end, provides a maximum
additional subsidy of so cents per
hundredweight for cattle purchased
at ceiling prices. No subsidy will be
paid purchasers of cattle at floor
prices, he explained, and individual
subsidies will be paid on the basis
OF prices paid between floor and
ceiling prices.
This is quite substantial relief
to slaughterers forced to buy at the
maximum, Mr.. Erickson said.
Losses Since August.
Mr.. Bowles testified before the
Senate committee yesterday that
OPA was studying the meat situa-
tion, but would not be "stampededr
into price changes without gather
ing full statistical data from the
industry.
Mr.. Winn testified that figures
covering 10 per cent of all hoo
siaughterlng were filed with OPA in
January and showed there had been
losses on pork since August.
Men in the industry" he sale.
have difficulty understanding whv
II OPA honestly intends to grant
rellef, any more figures are needed"
Mr.. Winn presented telegrams
from smaller packing plants ali
saying they could increase slaughter
OF cattle IF prices adjusted favor
ably"
Inc cattle are available although
not at prices the packers can af-
ford to pay under present ceilings,
Mr.. Winn said, adding that the
country now has its greatest supply
in history, 100000 head.
Mr.. Winn urged amendment of
the present provision in the price
control law requiring that maximum
prices on products resulting from
processing OF agricultural commodi-
ties shall allow a generally fair and
equitable margin" for processing.
To this section, he said, should be
added provision that the margin
shall apply to the processing of
each type (species) of livestock,
(See FOOD. Page A-2)
Garfield ChiId's Deoth