Evening star., 1946-03-20
Launches
Probe Of Meat
BLACK Market
Midwest Packers Say
Beef Is Going East
At Over-CeiIing Prices

A meat black market report
edly shunting large quantities of
beef from normal Midwestern
packing channels to Eastern
concerns and creating a poten-
tial meat famine" in the Mid
west, brought investigative ac-
ton from the Office of Price
Administration today.
AS .oPA officials here frankly adj
nlitted CONCERN over ceiling price
violations and prepared to ask ma
tional cooperation from housewives,
Chicago's vast stockyards and pack
Ing industry drew the attention Of
investigators. These facts were re-
ported:
l. An industry spokesman said the
Big -Four" companies-Armour
Swift, Wilson and Cudahy-bought
less than 1000 of the $4,000 head Of
cattle in the Chicago yards Monday,
The large packers could not COM
pete with buyers who do not OBJ
serve ceiling prices-a large per-
centage of them from the East, the
Associated Press said.
Worse Than Ever.
2. Thomas E. Wilson, chairman OF
Wilson & Co., said the black market
probably is worse now than ever be-
fore and the situation is getting
away from the OPA." He told a
stockholders meeting that illegiti-
mate operators profit up to $50,
head.
3. Drastic cutback in slaughter Of
cattle in other Midwest livestock
markets is leading to employe lay
offs, and in some sectors, shutdown
of plants. Chicago employers said
they hoped to minimize layoffs by
spreading available work.
4. James F. Riley, Chicago OPA
oftice director, announced a large
scale investigation of Eastern order
buying which he said has taken from
go to IS per cent of Midwestern beef.
Edward Jordan, OPA Investigation
chief at Chicago, said the cattle are
sold to the highest bidder without
regard for price ceilings, with much
meat then going to -Federally
inspected plants.
S. Adding to the civilian con-
sumner pinch and possibly leading
to congressional action, is inability
of Army and Federal relief agencies
TO meet requirements despite set
asides of up to go per cent in some
grades. Ii Sts-Louis, Joseph W.
Stevens, field secretary of the IN
dividual Retail Grocers and Meat
Dealers Association, predicted "a
meat shortage such as we've never
seen before"
The Chicago investigation, vital
to some 100000 persons engaged in
a billion dollar industry, deals with
reports that some black market
buyers are waving Government
subsidies of up to $35 per animal
to escape detection for over ceiling
buying.
Another dodge being investigated
was the Justification of records de-
tected by the OPA during the war.
BY this process it is possible to re-
port cost lower than actually paid,
then tamper with the weights and
still collect the Government sub
sides.
Won't Meet Prices.
The big Chicago packers were
said to be losing out because of
their refusal to meet the outside
bargaining.
Unless we are able to buy cattle
in compliance with Government
regulations, we will be forced to re-
duce our beef operation further"
said Paul c. Smith, vice president
of Swift g. Co.
Some industry leaders have blamed
OPA regulations for the situation.
Said George R. Dressler of the Ma
tional Association of Meat Dealers:
"OPA and the controls which ap-
parently cannot control the black
1l1o4 ASe IliuSI pt eluIlu1aUSQ.
Cattle Sales Drop.
Admitting there was a pretty big
black market in meats" an Agri-
culture Department source said 20
per cent less cattle was marketed
the week ending March 9 than dur
ing the same week last year. He
said the week ending March 2
showed u per cent drop from
a comparable period Of 1945.
A Chicago source said the market
there received 10000 fewer cattle In
February than for the same month
last year, indicating an increase in
country slaughtering. But ship
ments of cattle out of Chicago did
not fall of, it was said.
Seriousness of the situation in the
Midwest and Southwest was empha-
sized by the chairman of Wilson g.
Co., who said the kill in the Okla
homa City market, normally 5000
a week, fell off to $50 cattle last
(See MEAT. Page A-16.)
Nj.