Evening star., 1948-02-09
House 10 Probe
Cause Break
In Staple Prices
Livestock Quotations
Take Plunge as Grain
Shows Recovery Signs

SnOWS NSCOVSIy SiSHS
BUSINESSMEN SEE PEAK reached
and perhaps passed. Page ALI
BULLETIN
Secretary of Agriculture An
derson today notified the Chi
cago Board of Trade that the
administration is 'unequiv-
ocably" opposed "at this time"
to any reduction in the 1919
per cent margins required in
speculative grain tradings.
The administrations position
was stated in a reply to the
Chicago Board of Trade, which
informed the administration
of plans to meet late today to
consider reducing margin re-
quirements.
The House committee investi-
eating commodity trading today
ordered an investigation into
last weeks commodity market
break, which was credited here
today for some lower food prices.
Chairman August H. Andersen OF
Minnesota said the investigation
will determine "the names and ex-
tent of operations of those who pro-
flied by advance inside informa-
ton"
The committee chairmen said
Secretary of Agriculture Anderson
will be requested to provide "comT
plete information in regard to the
leak which he states occurred in ad-
vance of the public announcement"
of Government grain purchasing
plans.
Whether Washington and the rest
of the country will benefit greatly
from lower prices depends on future
DEVELOPMENTS on the commodity
market, most industry representa-
lives believed.
Livestock Prices Break.
Grain prices began to stabilize to-
day but the price break spread sud-
denly to the livestock market.
Hogs fell to the lowest price since
January 6, 1947, and cattle slid as
much as SO hundredweight. Lambs
also were down.
Cotton process fell again in New
York and wholesale butter prices
in New York dropped 81 cents a
pound for top grade. Rubber and
hides were up.
Retail prices of flour, lard, bacon,
steaks and bread continued to de-
cline, but the movement was on a
relatively small scale and there was
no certainty that it was permanent.
Stock Market Advances.
The New York Stock Exchange
showed mild recovery leanings to-
day, but there still was nervous
and particularly cautious air. Cot
ton prices declined in New York.
At Omaha, hog prices were 50 to
SO lower with trading very light.
At Chicago, the hog market had
no early bidders and possible buy
ers were talking prices as much as
So a hundredweight below Fridays
Yesterday Secretary Anderson de-
MED published reports suggesting
there had been an advance leak OF
official information on the Govern
ment's grain buying plans. He said:
There was nothing in the nature
of a market tipoff."
Sees Market Dominated.
But Representative Andersen said
in a statement that 'the crash in
the commodities market OF last
week demonstrates how completely
the Truman administration has
dominated and fixed the price Of
grains and other commodities since
July /, 1916.
During the last 10 months, vol
ume buying of wheat, coarse grains
fats and oils, and other commodities
bv the Government, under orders
Of the Secretary of Agriculture
forced steep advances in these com
modities and sky-rocketed prices OF
livestock and poultry feed, beef, pork
daily products and other foods
When the Government stopped buy
ing, prices of commodities went
down."
Although it was announced that
the Government still had to acquire
only another 100000 bushels OF
wheat and flour for foreign export
and relief, he said, the Secretary oi
Agriculture last week ordered Gov
ernment buying of wheat stopped
and the bottom fell out of the
commodities market"
Sees $500, ,OO0,O0o Farm Loss.
Mr.. Andersen said the drop ir
commodity prices of the last few
days cost the wheat farmers more
than 100000, 900, and additiona
hundreds of millions of dollars were
lost to owners of other farm prod.
ucts.
According to press reports" the
statement continued, Secretary
Anderson disclosed last Saturday
night that a leak had occurred or
the departments decision to cur
tail grain buying in advance of the
(see PRICES, Page A-4)