Evening star., 1946-04-16
Subsidy Plans Of 0PA
Hit by Milk Producers
As Price Act Evasion

Government ofIicials worked today
on programs soon to be launched on
several fronts for maintaining a.
high level of dairy production, in
cluding butter, through increased
use of subsidies, and for equalizing
dwindling meat supplies now going
into black markets through return
to wartime slaughter controls.
Announcements by three agencies
on the programs yesterday brought
adverse criticism from several
sources, however.
Bruce B. Derrick, manager of the
Maryland and Virginia Milk Pro-
ducers' Association, termed the dairy
subsidy announcement of Stabili-
zation Director Bowles "the same
old camouf1age dodge to avoid COM
pliance with the Price Control Act"
and declared the subsidies were
not wanted by milk producers.
He said he would continue to press
Tor SO cents hundredweight in
crease in milk to producers in this
area, despite the promise of Mr..
Bowles of 20-cent subsidy increase
and warned again that producers
might withdraw their milk from this
market If the price increase is not
granted.
Meat Position Of OPA Hit.
A statement of the American Meat
Institute said sit is unrealistic, tol
say the least, for any one to think
that black market operators will goI
out of business because the OPA, by
regulation, says they cannot slaugh-
ter any more live stock"
In this connection, reports from
some large cities showed meat was
becoming increasingly difficult to
buy at legitimate prices.
On butter, the Government SOUGHT
to overcome a situation which had
made 1t more profitable to use but
terfat for ice cream and other prod
ucts than for butter. Mr.. Bowles
said the wartime ban on sale of
whipping cream would be restored
and restrictions placed on the
amount Of butterfat in ice cream.
The program also includes price
ceilings for the first time on cream
used in bakery products and ice
cream.
Bowles Seeks "Quick Relief"
Mr.. Bowles said dairy farmers in
many areas are being squeezed by
higher feed and labor costs, and
"tney are entitled to quick relief"
and have right to know that they
can go ahead to the greatest possible
production with the expectation of
fair returns"
He said he had been urged to
provide relief to dairy farmers
through increases in retail prices of
dairy products, "but after careful
consideration of all the facts II
cannot accept this proposal"
On meat, the OPA and Agricul-
ture Department are working on al
program which will reduce the op-
Grafton of certain slaughterers who
have increased their output greatly
during recent months. officials be-
lleve this will make it possible for
established slaughterers to obtain
more livestock.
FBI to Check on Packers.
On third front, the FBI has
been directed by Attorney General
Clark to investigate reports that
some packers are defrauding the
Government by paying black market
prices for cattle and then collecting
the Government subsidy. -.
The Senate Agriculture Commit
tee, meanwhile, planned to call for
more details on factors dislocating
meat distribution. One packer told
the group yesterday that the situa-
ton was national scandal which
makes prohibition look like petty
crime"
Mr.. Derrick declared that the
MIX Producers Association was mot
interested in this type OF appease-
ment," referring to the new subsidy
program. He said there was no
logical or legal reason known why
a milk producer should be forced to
endure - legal lodges of the Price
Control Act"
He added that I'VE are sorry that
we shall have to attempt to enforce
our demands in the same manner as
many an underpaid labor group has
done in the past"