Evening star., 1947-07-17
Meat Institute
Sees s15% Rise in
Supply This Fall
Congress Committee
Also Given Forecast
Of Drop in Prices
BY the Associuted Press


The American Meat Institute
declared today-with reserva-
tions-that the Nation faces the
cheerful prospect of more meat
at moderately lower" prices
this fall.
J. R. Eggert, the Institutes assc-
ciate director of marketing, said in
statement to the Joint Congress
sional Committee on the Economic
Report that his organization eX-
poets a IS per cent increase in meat
supplies by autumn.
1T follows Mr.. Eggert said. that
moderately lower prices may be
looked for at that time unless there
are more wage increases and other
developments which would further
increase the public demand for
meat"
Supplies Seasonably Low.
He added that current meat
prices, generally high, are simply
the result of people having more
money and wanting more meat than
ever before, at time when supplies
are seasonably low
Mr.. Eggert't statement was sub
mitted to the committee on the last
day of a series of hearings to ind
out what can be done about stabiliz-
ing prices and the economy gener-
ally
The institute official cited these
principal reasons for the rise OF
meat prices since January:
l. A seasonal, 10 to Is per cent de-
cline in supplies.
2. An increase in weekly wages IN
industry ito an all-time high.
3. A record peak of 60,000,000 per-
sons employed, an increase OF about
q per cent since the start of the
year.
Storage Stocks Small.
Contributing to the pressure on
prices, Mr.. Eggert added, is the fact
that storage stocks of meat are
smaller than the prewar average.
Another complicating factor, he
said, "is that the current outlook
for grains, as compared with a year
ago, is unfaVorahle and there are
prospects for large grain exports"
Assuming these deterring elements
develop, they may prevent the ex-
pected 1948 increase in meat pro-
duction and could even. result IN
some decrease, Mr.. Eggert said.
It all depends, he added, on the
weather, the corn crop and grain
exports. In connection with the
latter, Mr.. Eggert gave this example
of the impact of exports;
Had the grain, other than wheat,
exported last year been fed to meat
animals, the meat supply would have
been increased by about 10 pounds
per person.
Two other witnesses told the COM
mittee in separate statements that
one of the most important prelim-
inaries in stabilizing the economy Is
reduction of Federal spending.
Greatest Contribution.
Marion B. Folsom, treasurer of the
Eastman Kodak Co., said that would
be the greatest contribution the
Government could make toward
maintenance of the present high
level of employment"
w. Randolph Burgess, vice chair
man of the National City Bank OF
New York, said the national budget
must be brought under control as
step toward wise management OF
the public debt
Both Mr.. Folsom and Mr.. Bur-
CESS also urged that taxes be cut
to encourage industrial expansion.
Before their statements were
made public, Senator Sparkman,
Democrat, of Alabama, a member of
the Joint committee, told reporter
I'VE are more dangerously close to a
blow-up of our economy than most
people realize
He said he intends to recommend
that the committee issue strong
statement calling attention to the
dangers of the present situation" ="
despite his own doubts that the BIZ
partisan group will be able to agree
on any specific steps toward a more
stable economy.
Views Oppose Industry's.
Senator Srarkmans views are
contrary to those of most industry
OFFICIALS who have testified before
the committee, although they jibe
with testimony yesterday by former
Price Administrator Leon Hen
derson
The Alabaman said that from a
"practical' standpoint I'm not at
all sure that the varying lines OF
thinking represented in the COM
imittee can be brought together" !"
He continued:
"On taxes, on rent. on almost
anything specific the Republicans
are sure to take one stand and
Democrats another
| Senator OMahoney, Democrat, Of
Wyoming, for example, believes like
Senator Sparkman that there Is real
danger of an economic bust. Chair
man Taft has indicated he agrees
with industry officials who have told
the committee the possibility Of a
recession or a depression Is remote.
Despite what ne called this
obstacle to concrete program, the
Alabama Senator said he will rec
, ommend that the committee send
, subgroups to various parts OF the
country to get the views OF the
people on what should be done.
Let the housewives, the retail
merchants and the small manufac-
turers tell their story" he said.
MAYBE that will make difference. y