Evening star., 1948-03-19
Andersen Committee
Probes Sign Of Butter
Price Manipulation
By ChoImers M. Roberts


The special House committee set
up to investigate commodity specu-
lation is inquiring into the soaring
cost Of butter on the wholesale mar
kets, according to Chairman Andre
sen.
Mr.. Andresen-a leader in the re-
cent House Agriculture Committee
shelving of margarine tax repeal
measures - said his seven-m man
group already has investigators
studying what he called indications
Of manipulation" in the New York
butter market. The Chicago market
also will come in for q check, he
added.
The move came on the heels of
anonther defeat for margarine pro-
ponents, administered this time by
the Senate. The upper chamber re-
fused. As to SO, late yesterday to
accept a rider to the tax cut bill
ending margarine license fees and
another reducing the 10-cent tax on
colored margarine to quarter cent
a pound.
Butter Prices Still Rising.
Butter prices continued upward
throughout the Nation, although
two leading Washington chains re-
ported today that they have not
raised their retail prices. Butter is
selling in the chains and in inde-
pendent Supermarkets around IS to
81 cents pound.
Butter sold by dairies, however,
has been rejecting the heavy up
swing in wholesale prices, as much
as 10 cents a pound. One Washing
ton dairy was asking 81 cents a
pound today, up 7 cents over yester-
day.
Mr.. Andresen's committee was to
meet this afternoon to continue its
investigation of the Governments
grain-buying program. This may be
disposed of before the butter ques-
ton is taken up, the Minnesota Re
publican indicated. If the commit
tees investigators find that manipu-
lation has been going on, Mr.. An
dresen said, there will be public
hearing.
Statement Issued.
The National Cooperative Milk
Producers Federation, spokesman
for the dairy interests, issued a
statement declaring there are
broader bases for the temporary
upward price movement" of butter
than a reaction to shelving Of mar
garine legislation.
The statement listed these factors:
Butter prices at the beginning OF
the week were somewhat lower
than market conditions warranted;
President Truman's address to Con-
gress provoked widespread price
increases" in other commodities; the
butter market reflected in some de-
gree the war fears Of the people"
and production of butter Is lower
than year ago at this season. Cold
storage holdings also are down, 1t
was reported.
Two Steps Still Possible.
Two methods of forcing mar
garine tax repeal move to vote on
the House floor remained open after
the defeat in the Senate.
The Senate refused, on roll call
vote, to accept the rider offered
by Senator Maybank, Democrat,
Of South Carolina. A similar but
slightly more sweeping substi-
tute, offered first by Senator Full
bright, Democrat, of Arkansas, was
voted down by the same count.
Sends Fight to House.
Here are the two remaining ap-
proaches still possible this session:
la discharge petition. This re-
quires 218 signatures. 1t would
force one Of the repeal bills out Of
the Agriculture Committee, which
shelved 19 such bills on Tuesday.
Up to this morning, between 80
and 95" members had signed such
a petition offered by Representa-
tive Rivers, Democrat, of South
Carolina.
2. A change in the House rule
which, since the 1906, has required
all margarine tax measures to be
handled by the Agriculture Com
mittee, rather than by the Ways
and Means Committee, where all
other tax legislation is handled. A
House resolution to change the rule
was offered yesterday by Repre-
sentative Heating, Republican, of