Evening star., 1951-03-18
Dealers
Complain Of.
Price Squeeze
OPS Gets Protests
On Packers Scheme to
Change Sale Method

Complaints by several major
meat dealers here that packers
are subjecting them to an illegal
price increase have been for
warded to national enforcement
officials, it was learned last night.
Similar complaints have been
reported in the last two or three
days from many other parts of
the country, and a country wide
investigation will be launched this
week, an official disclosed.
Two big Washington chains and
several meat wholesalers have
complained that packers plan
starting this week to sell them
beef on a quarter carcass basis.
Until now they have been able
to buy on a full-carcass basis.
The result. they Say, will be an
increased cost to them since the
quarters are priced proportion
ately higher.
Sent To National Office.
Lloyd Williamson, local Office
of Price Sterilization enforcement
officer, said he sent the COM
plants to the national Office yes
terday. An official there said the
move, if it is carried out, will be
a clear violation" of the price
regulations and OPS will seek in
functions to stop it if the move
can't be stopped by persuasion.
Packers have not yet been ques-
toned about the matter on a na-
tlonal level, the official said. Mr..
said he was unable to
reach all except one firm here
yesterday, and that a spokesman
there said no such move was
planned.
While the change in shipping
procedure, in effect, would raise
costs to buyers at the wholesale
level, it could not legally change
retail prices. Wholesalers and
chain stores thus would be sub
jected to a squeeze, it was eX-
planned.
Action Ordered on Price Rises.
OPS enforcement officials al
ready have ordered regional and
local offices to act against what
was described as a widespread
price rise on processed meat prod
uctS. A number of professors have
been passing on higher costs. i'll
stead of absorbing them, through
a miSlnterpretation of the reeu-
lationS, an OPS official said.
Many of these cases presumably
have been passed all the way down
to the consumer, the official added.
OPS is expected this week toI
SSue the first dollars -and-cents
ceilings on meat with a.
new regulation covering pork.
The regulation will control live
hogs for the first time, a spokes-
man said. 1t will permit price
increases on the retail level.
A new marginal regulation on
and canned foods also
is expected soon. This will SUBJ
stitute controlled markups for the
freeze on many grocery
items.
Dealers Ask Decontrol.
Meanwhile. it was learned that
the National Association of Meat
Professors and Wholesalers has
asked Price Stabilizer Michael Di-
Sale to decontrol meat entirely
for the present if he will not grant
a request to allow normal mark
ups over costs.
Joseph B. Danzansky, the asso-
cations general counsel, said
many wholesalers are being
squeezed" out of business and are
being replaced by "black-market
operators"
The association wants either
normal or "one-half normal"
markups until dollars-and-cents
ceilings are established, in order
to get out of the squeeze, Mr.. DAN
zansky said.
Locally. price enforcement Off
GERS have begun a new spot-check
into the overall meat price situa-
ton as part of a national survey.
A report on an earlier survey has
been forwarded to the regional
office at Richmond, a spokesman
said.