Evening star., 1946-08-18
Porter Holds
Hope for Cuts
In Meat Prices
RoIlbock Hinges
On DecontroI Board
Order, Subsidies
DECONTROL BOARD members
questions hint return to controls.
Page AS
By Malcolm Lomborne, Jr.

Prices on most meats will be
restored to June 80 levels if the
Price Decontrol Board orders re-
control and payment of adequate
subsidies, Price Administrator
Paul Porter disclosed last night.
Further, tentative plans call for
rolling milk prices from the present
high level to about one cent a
quart above June 80, prices. assum-
ing the board directs full subsidies,
the price chief said.
Mr.. Porter stressed, however, that
tentative OPA plans, worked out
in agreement with the Agriculture
Department. are wholly contingent
upon decision of the three-man
decontrol board now studying a
mass of testimony from last weeks
hearings on recontrolling meat, live
stock. dairy products, milk, grains,
cottonseed and soybeans. The board
will announce its decision Tuesday
night.
Ceilings Up to OPA.
The board rules only on whether
exempted food items shall be
brought back to price control. and
the question of specific ceilings is
left up to OPA. A major factor in
OPA's decision of what ceilings to
establish is the amount of subsidies
If any-the board directs shall be
used for any recontrolled commodity
MI. Porter fatty denied state
ments attributed to him that price
ceilings on meats cannot be rolled
back to June 80 levels even If the
board decides to- recontrol them.
Even though Congress has cut
subsidies, OPA and the Agriculture
Department have decided there still
Will be enough money to pay the
June 80 subsidy on beef and pork
and probably veal" he declared. He
added that officials did not know
yet about lamb.
Should the board authorize resto-
ration of ceilings but not subsidies.
then price increases over June 30
levels would be necessary, he added.
He said that If milk ceilings are
pegged at one cent quart above
June 80 ceilings, butter and cheese
prices would be fixed somewhat
above June 30 levels.
An Agriculture Department report
noted that expiration of dairy cell
ings June 80 was followed by in
creases In prices of fluid milk and
dairy products. then added:
Although wholesale prices for
most manufactured products had in
creased enough by July to off,
Set the loss of subsidies, and deal
ers paying prices for fluid milk in
creased substantially, average re-
turns to farmers for all milk sold
at wholesale in July was a little less
than the mid-June price plus SUBJ
sides"
The department also noted that
the demand for dairy products has
not been fully satisfied at the higher
prices prevailing since controls ex-
pired.
Subsidies Rise.
In an unusual action Yesterday.
Reconversion Director John r. Steel
man ordered increased subsidy pay
ments to sugar beet professors in a
move designed to speed up distribu-
ton of sugar which has been held
back in expectation of price in
creases. Payments will apply to the
l945 and 1916 sugar beet crops.
Mr.. Steelman said both OPA and
the Agriculture Department were in
agreement that increases are neces-
sary to eliminate inequities under
l945 Commodity Credit Corp. sugar
beet contracts and to provide for
maximum production and distribu-
ton of sugar from this years crop.
"One effect of this settlement will
be to speed up the distribution of
last years sugar which has been
held back in expectation of price
Increases Mr.. Steelman said.
Sugar has been about the shortest
food item in District stores for
some time. Long lines have formed
at some of the chain stores When
ever a supply went on sale. The
shortages come at a bad time for
many housewives, since this is the
home canning season.