Evening star., 1946-04-15

lobe Restored
|0n S|aughterine
OPA to Take Action
In Effort to Reduce
Meat Black Market
$3.50 FLOUR CUT essential, Ander-
son tells Senators. Page A-15
BY the Assoeioted Press


The Government announced
today that more wartime slaugh-
ter controls will be restored soon
in move to curb black markets
in meat.
OPA and the Agriculture Depart
ment, in a joint statement, said a
slaughter quota system will be put
into effect to provide better distri-
button of the country's present meat
supply through established channels
and at ceiling prices"
OPA said the program will reduce
operations "of certain slaughterers
who have increased their slaughter
greatly during recent months"
This, the agency added, will make
it possible for established packers to
obtain more livestock and thereby
increase their production to more
nearly normal levels" Each slaugh-
terer will be allowed to slaughter the
same proportion of the available
supply of cattle, calves and hogs that
he slaughtered in 1914.
The announcement followed a
Justice Department disclosure that
the FBI has been directed to in
vestigate reports that many packers
have attempted to obtain Govern
ment subsidies through false claims
after buying live cattle at black
market prices thus making it i'm
possible for other packers to secure
cattle lawfully"
Won't Reduce Total.
Stating that the quota system
will not reduce the total amount
of livestock slaughtered, OPA
added:
Its sole purpose is to direct and
divide livestock more equitably
among established operators, thus
encouraging meat distribution
through regular and legitimate
channels.
The program will cover all COM
mercial slaughter of cattle, calves
and hogs. No effective date was
set, but OPA said appropriate op-
Grating orders will be announced
within the next few days"
The impending order will be the
OPA'S third in the last few weeks
designed to curb black market meat
sales. Previous regulations re-
called custom slaughtering and
provided for reduction of subsidies
in cases where packers violate
ceiling prices.
The new program will restore a
livestock channeling system which
was withdrawn last September.
System Of Controls of Source.
Commenting on the new program,
Price Administrator Paul A. Porter
said:
THE answer to equitable distri-
button Of meat supplies is not the
abandonment of price control, as
suggested by some We are not
going to ask the American people
to pay tribute to a legalized black
market.
THE real answer lies in a system
OF controls at the source of supply,
s7hich will give established slaugh-
terers more nearly their customary
volume of livestock and provide for
better distribution of meat supplies
at ceiling prices to retail stores
Secretary of Agriculture Ander-
son termed the quota plan lin re-
ality a share-the-livestock pro-
gram"
In directing the FBI to investigate
the false subsidy claims, Attorney
General Clark said:
complaints have been received
that some packers are paying black
market prices for live cattle, thus
making it impossible for other
packers to secure cattle lawfully
and then are obtaining subsidy help
from the Government by represent
ing that purchases were made at
legally permissible prices"
A Justice Department official
said the subsidy regulations pro-
vide that a slaughterer who bids up
the price of cattle beyond the per-
missible maximum forfeits his rights
to subsidy help from the Govern
ment.
ITO falsify reports of the prices
paid, and to claim subsidies on the
basis of such false information.
constitutes a fraud on the United
States" he said.
Meanwhile, a congressional COM
mittee heard that black market ac-
tivities are forcing one of the Ma
tons leading packers to cut its
Eastern deliveries sharply and are
adversely affecting manufacture of
gland extracts.
An official of Wilson & Co., Inc,
one OF the big four" packers, said
his company will sell its New York
(See MEAT, Page Ala
< +o q V@~~.