Evening star., 1946-03-23
Meat Black Market
Prices Slump With
Rise in Rackeieers
By George THEM
Correspondent Of The Stor and the
Chicoua Dolly Neux

CLEVELAND, Ohio.-There's big
money in the meat racket. One
medium-sized Cleveland packer who
deals exclusively in beef told me he
could have taken 100000 in side
money during the last three years
of price control.
The going black market price in
Cleveland's Packingtown here is 80
to 80 cents a pound wholesale for
AA and A beef This figure is so
per cent over the ceiling but not
as high as illegal prices year ago.
So many new people have entered
the meat trade that there has been
o. sslump in black market prices.
Legitimate slaughterers such as
the Earl G. Gibbs Packing Co. and
Swift, who try to comply with price
ceffings, have had to reduce their
output OF beef. A high percentage
OF meat consumed here is coming in
from smaller plants downstate, and
much Of it is black, local packers
charge.
Racketeers at Auctions.
New black marketeers for a while
were taking Is per cent of local
cattle receipts. When OPA slowed
them down they fled to the country,
where livestock auctions are boom
ing. Prices bid at these sales are
higher than in the big cities, so
farmers are marketing more of their
stock where it brings the most
money
A. z. Baker, president of Cleve-
lands Union Stock Yards, said there
were 158 slaughtering plants in Ohio
before OPA control. Today there
are 736. And this figure does not
include farmers who butcher a few
head for themselves and their
friends.
The black market has such a hold
In the meat trade from here east
that MIR. Baker feels the country
would be better off if controls were
abolished. Prices for choice cuts
would flare up for 80 to so DAYS in
his opinion, but after that the mar
ket would settle down, especially
during flush supply periods.
Terrific black market profits
would be abolished" said Mr.. Baker
These are now being borne by the
consumer. With the end of control
the housewives food budget, taxes
considered, would probably be little
If any higher"
Loopholes in Control.
There are many 'oopholes in meat
price control. Thousands of new
comers in the business are allowed
to grade their own meat and still
collect subsidies. They can outbid
the larger slaughterers who must
conform to Federal inspection and
grading. Little butchers who pro-
cess few animals week and retail
the meat get the advantage of lib
eral price markup. Price control
has tended to decentralize meat
packing and distribute more beef
and pork close to the source of pro-
duction.
What can be done to J. ,k the black
market? Quit temporiztAg with vio-
lators. Lay on sitter penalties. Put
a few guilty operators in the Fed
eral penitentiary for 20 years, rather
than turn them loose with light
fines. Drive slaughteflng for resale
into inspected, sanitary packing
plants. These are suggestions of
Federal inspectors, packers and
stockmen who are aware of the
problem.
A Barberton (Ohio) black mark
eteer was caught red-handed. OPA
got an injunction against him but
the guilty party ignored it, Another
violator, whose illicit profits ran into
five figures monthly, was let off with
a $1,000 fine He laughed about it,
saying he could make it back in one
days operations.
What we have today is price fix
ing without price CONTROL" COM
nented Earl Gibbs, jr. 1--WE have no
quarrel with anything except en- ,
forcement. Price ceilings are salts ]
factory. There is an ample margin I
between wholesale and retail prices ,
subsidies considered, but these CELL |
ings are not being enforced" :
Retailer Offers Suggestion.
Adam Guth, local retailer and
president of the National Associ-
alton of Retail Meat Dealers, has a
suggestion.
Let the government ship the
moving items to Europe" he
says. Sausage and variety meats
are spelling in the butcher shops I
because consumers don't want them.
Federal set asides are taking steaks
and roasts and shipping them out of !
the country. If meat price control
were abolished consumers would see
little difference after a few weeks.
Adjustments would take care of
themselves. Choice cuts would sell
higher but much other meat would
be priced lower"
Tons of good meat are going to
waste daily by inefficient slaughter
ing, Federal meat inspectors here
tell you. Variety meats that are
saved by experienced slaughterers
go to waste in the hands of hy-by-
night operators. Stricter control
and enforcement or abolition are
seen as the solution.