Evening star., 1946-03-22

Ing without cutting prices, prov1d-
ling the customer agrees.
This action, recommended by the
Famine Emergency Committee, fol-
lowed close on an announcement ot
the Once of Economic Sterilization
ordering subsidy payments automat-
ically reduced, or in some cases
forfeited, when packers pay above
ceiling prices for cattle.
officials said they hoped this
would help halt "a pretty serious
black market in meat" which big
Western packers say is cutting down
their supply of livestock.
OPA said eating places, including
railroad dining cars, may reduce
portions of wheat and oil products
providing they display notice that
this is being done. They also must
offer to supply the normal portion
to any customer who specifically re-
quests it."
An official of the, Washington
Restaurant Association said he had
not received official word of the
OPA's restaurant regulation, but
that as soon as it arrives the associ-
alton will circulate bulletin to its
members, including in it additional
food-saving suggestions of the
Famine Committee.
This was the second OPA action in
connection with proposals of the
Famine Committee, which is seeking
a 40 per cent reduction in wheat
consumption and Is per cent in fats
and oils in order to help feed starv-
ing countries. Last week the agency
recommended a reduction up to 10
per cent in the weight OF bread
loaves without corresponding cut
in price.
An OPA official said the program
for withholding subsidies was an
outgrowth of difficulties many
packers have been encountering in
trying to buy cattle at legal prices, +"
but he admitted it would not wipe
out black markets. Some buyers act
ually are waving subsidy payments
in the scramble to buy up livestock.
Subsidy to End Automatically.
Up to now a slaughterer's subsidy
could be Withdrawn if the courts
found packer was violating CELL
ings, but under the new program,
the subsidy will be cut of automat-
ically, with the amount depending
on the degree of violation. 1t will be
eliminated II a packer pays more
than 2 per cent over ceilings.
OES also announced a change in
the rate of subsidy withdrawal when
prices of cattle fall below the maxi
mum permissible cost. The subsidy
will decline cents a pound for
every Scent drop in cattle prices
below the maximum, where pre-
viously the rate of decline was 4
cents in subsidy for every Scent
drop.
The Agriculture Department in a
review of livestock markets during
the past week reported that beef
production by large packing houses
since the packing house workers
strike began in January has been
viz oAhoAASce AoA dAiy oAAAAidl PCl lOd
in a generation or more.
Large Concerns Affected.
The report said large concerns
have been called to buy only limited
quantities of beef cattle because
prices they would have to pay in
competition with buyers for smaller
concerns would be in excess of Gov
ernment ceilings.
This confirmed contentious of
large packers at many livestock mar
kets in the West.
AS another step to meet grain
needs abroad, the Agriculture De-
partment is working on a drastic
order controlling feed grains from
county elevators to feeders. The
order, now in the hands OF the de-
partment's legal experts, is designed
to force reduction in the feeding
of animals.