Evening star., 1945-04-12

A spokesman for livestock
producers told the Senate Food
Investigating Committee today
that an increase of 81 a hundred
pounds in cattle prices would get
the country the beef it wants.
P. o. Wilson, Chicago, secretary
manager of the National Livestock
Producers Association, expressed the
opinion, too, that "it would not cost
consumers any more than they are
paying now when you figure what
they are paying the black market"
Price ceilings on cattle, Mr. Wilson
testified, are based on costs of two
years ago, while corn has gone up IS
per cent and other feeds are also
higher.
AS result, he said, cattle are not
being fed to heavy weights
There were 2,70O0OO calves
slaughtered last year which would
have been fed to steer weight If the
price structure had been favorable.
The country lost the difference be-
tween their average weight of $50
to 400 pounds and the weight Of
1000 pound steer
Price Action Indicated.
There were indications at today's
hearings that committee members
may try to change the price situa-
ton by amending the bill to extend
the life of OPA, which will soon 60
before the Senate.
Chairman Thomas read an
amendment which he suggested
could be offered in the Senate to
make it unlawful for OPA to estab-
lish against any professor a maxi
mum price which does not equal all
costs and expenses. He said the
amendment had been submitted to
| the Banking Committee, consider
ing the OPA extension bill, but indi-
Gated there is desire in that COM
mlttee not to amend the act.
/ Mr.. Wilson insisted that the num-
Der of cattle being fattened by the
feed-lot operators has fallen off this
year, despite figures presented ear
lier to the committee tenoing to show
more cattle in the feed lots this
January than last year. He said
his testimony is based on the OBJ
servation of men who are constantly
travelling through the feedlot areas.
Mr.. Wilson said it is his opinion
that some of the cattle Government
observers thought was moving into
the feed lots was actually going di-
rectly into black market operations.
Chairman Thomas said earlier
that he has received reports that
a small unidentified group within
OPA wants to eliminate small meat
packers.
He added that the reports, which
he said he had not verified, declared
the groups ultimate aim was to con-
vert the meat business to a public
utillty by citing the big operators
who would remain under antimon-
opoly laws and placing them under
firm Government control.
Knowing the men in charge of
OPA, it's plausible, Senator Thomas
told reporters. Il can see that
whether or not that is their pro-
gram. their system of pricing meats
has that effect, intended or not"
Brownlee Has No Comment.
| Deputy Price Administrator James
F. Brownlee, advised of Senator
Thomas assertion, said he would
have no comment until he could
study the matter further. Other
OPA officials were not Immediately
available
Senator Thomas committee has
heard frequent complaints from
small packers that OPA price pol
icies are forcing them into bank
ruptcy by denying them a profit
margin between the price they must
pay for livestock and that at which
they must sell their meat.
On another angle of the price dis
pute, Senator Thomas said James
E. Cooney, vice president of Wilson
& Co., one of the larger packing
firms, contended that neither OPA
nor the Emergency Court of Appeals
would allow usual items of business
expense in determining meat CELL
ings.
Amendment Suggested.
Senator Thomas said Mr.. Cooney
suggested the price control law
should be amended to take into &C
count for price fixing purposes over
head and similar business expenses
which are deductible on corporation
income tax returns.
The Oklahoma Senator said the
tSee FOOD, Page A-2OD
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