Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-03-08
Clio Official Charges
Government Move 10
Drop Food Subsidies

James B. Carey, secretary treas
urer of the CLIO, today charged the
Agriculture Department was seek
ing to eliminate food subsidies in
order to escape paying support
prices to farmers during the current
crop year and that the department
speaks for the Government with
the voice of those who want infia-
ton"
Il understand that the Agricul-
ture Department is committed to
support the prices Of some agricul-
tural commodities which may go
down before the end of the year"
Mr.. Carey stated in testimony be-
fore the House Banking Committee
supporting extension of price con-
troll.
If the drop in price is great
enough, then the department would
have ito spend some money in sup
porting that price," the witness said.
"On the other hand, if the price
can be permitted to rise now, the
average price for the commodity
during the year may be maintained
at point so high that no ex-
penditure by the department will
be required"
Anderson Asks Controls.
Secretary of Agriculture Ander-
son, testifying before the commit
tee yesterday, said that in the light
Of the present world food crisis,
he had mo alternative" but to ask
for continuance Of price controls
and subsidies.
The CLIO official also declared that
I'VE refuse to be blamed for the
fact that the Civilian Production
Administration refuses to use its
powers to help get low priced pro-
duction out of plants, to prevent
boarding and to stop black mar
kets."
Mayor ODwyer of New York was
scheduled to testify later today.
Looking to the inevitable fight
ahead on continuing price controls
beyond their present June 80 ex-
piration date, Majority Leader Nc
Cormack told reporters he did not
expect a frontal attack ON the OPA
extension measure, but an effort to
put in Gripping amendments that
would make price control ineffec-
tive"
Urges Modified Extension.
Meanwhile, there were these other
developments on the price control
front:
l. The House Postwar Economic
Policy Committee, headed by Repre-
sentative Colmer, Democrat, of Mis-
sissippi, and comprised of Demo-
Gratis and Republicans, recommend
ed modified extension of OPA for
another year with no cut in exist
ing Federal income tax rates.
2. James F. Brownlee, deputy to
Sterilization Director Bowles, dis
closed that deputy soon will be
appointed in OPA with the one job
Of seeing that price controls are
discontinued as soon as supply and
demand balances relieve imitation
airy pressures.
3. A group OF approximately 100
House members set up an unofficial
committee to study revisions of the
OPA law which Chairman Hartley
said would seek to make OPA more
acceptable and remove what he
termed injustices.
Food Subsidies Studied.
The banking group, which handled
the administration housing bill and
saw it badly battered in a House
revolt against use of subsidies in
scarce building materials, turned its
full attention today to two more of
President Humans requests: To
continue OPA another year, without
amendments, and to extend subsidy
payments designed to hold food costs
IN line and spur production of some
materials without raising prices.
The Postwar Economic Commit
tee, issuing its ninth report, told the
House that effective control of in
fiationary forces would be "impos-
sible without the aid of strong fiscal
and monetary counter measures
Ruinous Imitation Feared.
Moreover, it said it believed that
summary removal of wartime con-
trolls would most likely result in
ruinous imitation and would react
unfavorably not only to the wage
earners and consumers but to bust
ness itself"
Saying it faced two evils-con-
tinuation Of Government controls on
the one hand and a paralyzing blow
on our reconversion program on the
other" the committee reported, it