Evening star., 1951-07-12
Congress Likely to Vote
PurtiuI Control of Prices
Anti-lnfIotion Fight Centers
On Cattle Production
The Political Mill
BY Gould Lincoln

Every voice in Congress and out In
raised against imitation. There Is q vast
difference of opinion how to avoid 1t.
There are those who want no controls.
Others want only indirect controls-like
the limitation of credits. A third group
which includes the administration
is demanding strong" controls. to run
over period of at least two years. And
finally, there Is a group willing to 60
along with limited controls-for exam
pie, the controls bill which has passed
the Senate. The probabilities are that
in the end 1t Is the limited controls
which Congress will enact into law, for q
considerably less period than urged by
the administration.
The fight in Congress has been CEN
tered particularly on the controls which
shall be applied to the producers Of
meat-the cattle raisers, the feeders and
the packers. The administrations posi-
ton has been that the controls Of meat
production and cattle and meat prices
are the focal point of the whole pro-
gram.
The problem is not simple. An i'm
portant angle is how to control prices
which means keeping them down by ar
tificial means-and at the same time to
keep production up. And along with this
goes the danger of driving a great
amount Of the meat into the black mar
ket-a very real danger when the situa-
ton which arose during the last war Is
recalled. It has been charged that 86
per cent of the meat In those days was
marketed Illegally.
Opposition Is Vehement.
The cattle producers of the country
have been vehement in opposition to the
administrators program, which has
called for three rollbacks in the prices.
The first 10 per cent, and the second and
third, AZ per cent each. The cattlemen
insist that the imposition of these roll
backs will result in great reduction in
the production of cattle for the market.
If they are correct, the result will be
scarcity of meat in the markets, which
might make necessary rationing, with
the old coupon system. That. however. is
political dynamite, and the administra-
tion is not proposing it.
1t is argued by the cattlemen that the
proposed program will greatly reduce the
herds now at high figure and thereby
reduce the production of beef for the
consuming public. They back this state
ment with figures of the cost of produc-
ton. A typical case presented to the
House Agriculture Committee showed
that the cost of producing a calf-and
the production of beef rests on this
production-per pound was "a cents,
and the present price-at the time Of the
presentation-waS 35 cents. The 10
per cent rollback reduces the price to
3112 cents per pound, up to August l..
After that date another rollback Of
Az per cent, and on October l q third
rollback of Az per cent. After Octo-
Der /, the price per pound would be
1885 cents, or loss of $3.50 per calf
when ready for the market.
Losses to Cut Production.
The contention of the cattlemen Is
that they cannot face such losses for
long, and that inevitably the production
of beef cattle will have to fall of. Ray
w. Willoughby president of the Texas
and Southwestern Cattle Raisers' Asso-
ciation, told the committee that cattle.
men cannot stop their business over
night. nor can they start it overnight.
He said: "You have to stay In this until
your credit man says. You are losing
TOO muCn MONEY. CO Sell yOu1 Cat1le
and come in
The Senate took the position. when it
passed the controls bill. that there
should not be rollbacks on cattle. and
the prospects are it will stick to that
position.
The Republicans in the Senate, and
many Democrats, take the position that
it is not possible to predict with GER
tainty how extensive controls should be.
They have seen in recent weeks prices
halt in their rise and many consumer
goods sold at less prices. They admit
that the inflationary influence OF great
Government spending for the defense
program may grow with the passing
months. They are not willing to wipe
all controls off the books-as some are
urging. But neither are they willing to
grant the wide controls demanded OF
them by the administration. which
would put the Government in control
of businesses for long time to come.