Toledo union journal. [volume] (Toledo, Ohio) 1942-current, 1951-01-19
TOLEDO UNION JOURNAL
Packers Give AWAY
The Show In Arguing
Against Controls
BY BRADFORD ". CARTER
For Labor Press Association


WASHINGTON (LPA)-The packers gave the
show away in testfying here the other day against
price controls on meat
Prices are high, not because of any shortage
not because of the unions "exorbitant demands" ;"
as the packers love to argue during negotiations
but for one simple reason-the customers have the
money to spend. In other words the packers charge
what they think the traffic will bear It's simple
that.
They would like to stabilize" meat prices and
they have program. That's simple too: "DispOs-
able income levels must be kept down." That's
fancy way of urging the government to increase
taxes enough so that you can't afford to buy as
much meat you did before. When enough people
taxed heavily enough so they priced out
of the meat market meat prices will come down.
The testimony came from the American Meat
Institute, the National Independent Meat Packers
Association and the Western States Meat Packers
Association. Their full program to hold meat prices
down without ratoning price control was: Dis
posable income must be kept down; supplies of
alternate goods and services must be kept up or,
supplies of meat available for purchase increased,
combination of all three.
Note that keeping disposab1e income levels
down" (higher taxes on Individually was the first
point But in the press release they put out after
the hearing, point No. suddenly became increase
the supplies of meat available for purchase" What
smart publicity lad decided that sounded better?
The packers said frankly that the first Of three
primary forces" that dictate the price of meat is
"the amount of money people have available to
spend" Second is the amount they choose to
spend for meat" and only third is the available
Bue they hypocritical on the cry for con-
trolls 1--WE told,'' said their spokesman, "that
there is immense pressure for price control. We
do not know to that, but we would be surprised
if there were any spontaneous pressure for the SIM
pie that the meat price situation is not as
critical as it has been made to appear"
They admitted that beef production is at cal
most unprecedented levels and that the future
prospects better so there's no scarcity
possibility of scarcity Meat prices they pointed
out, have gone up "only 157 per cent since 1926.
(An commodities have gone up rs per cent, and all
foods as whole, 81 per cent).
What's the best they can do? Well if the gov
ernment will not let workers income rise
than 10 per cent over the next two years, and not
more than 20 per cent over the next three to five
years, (that is if the government holds down
wages, and hikes income taxes on individually the
packers will be able by increased output to hold
meat prices near present levels.' Notice, please,
near present levels" Why only near? Because,
said the packers, lit is hard to see anything to sug
gest that meat prices alarmingly high or suf-
ficienty out of line either with the prices of other
goods and services with the buying power of
people"
Present at the hearings were representatives of
many groups including Swift Wilson, and Armour,
and the American Farm Bureau Federation.
The other day Armour reported its profits (after
taxes) for 1850. The increase in profits 1949
5000 per cent.