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Show ! t r t'Price r'Price 'Price Price ' Premium ' Baffle Battle BaffleGrows BattleGrows BattleGrows Grows in Importance ImportanceWar War Food Administration AdmmlstratlOn Faces Increas Increas- Increasingly Increasingly Increasingly - ingly Difficult prob Problem em of Getting Getting'Bashful GettingBashful Getting'Bashful GettingBashful 'Bashful Bashful ' ' Beef Cattle to Market . I , . a t By BAUKHAGEa BAUKHAGENews BAUKHAGE f f fNewt - Newt Neun News . , tnatfst Analyst MlYJ ' and nd Commentator WNU Service , Union Trnat Trust BulldlD Building BnlldlnrWshlnrton , , WashlD Washington toD D CThe CThe C CThe The fight over subsidies-pardon subsidies pardon subsidiespardonme subsidies - - pardonme me I thouldn shouldn shouldnt t use that word sub subIidies subsidies robtidies Iidies sidies the New Deal doesn t like it- it itthe itthe it itthe - - the fight over price premiums on onfarm onfarm onfarm farm products is once more the chief cbief chiefconcern cbiefconcern chiefconcern concern of the administration and andthe andthe ndthe the members of congress who do not notsee notsee notsee see eye to eye on this painful painlul ques questiOD question question tiOD tion . , . The sIJiloke smoke smoke of the battle over the theveto theveto theveto veto of the vie subsidy ban included mcluded in inthe inthe inthe the Commodity Credit corporationb corporationbill corporation bill U has settled settIed and since then there therewas therewas , was another veto ( ( the tax bill > ) ) that thatdldn thatdidn thatdidn dldn didn t fare so well But the Fa.m Fam Farm Fa.mBloc FarmBloc FarmBloc . Bloc members are not so overopti overoptim1stlc overoptirmstic overoptimistic m1stlc rmstic as to believe that the Presl Fredi Presldent Fredident President dent and congress are still stili far enough enoughapart enoughapart enoughapart apart on the subsidy question that thatanother thatanother thatanother another veto could not be sustained sustainedIn sustainedIn In the senate th the the ; cooler heads of ofthe ofthe ofthe the opposition know this and are not notwilling notwilling notwilling willing to go through througb the same futile futileprocess futileprocess futileprocess process again agam . . In the house It Is a different chfferent mat matter matter matter ter although this Uus is not likely to tochange tochange tochange change the final picture House HouseLeader HouseLeader HouseLeader Leader Joe Martin while wlule conceding concedingno no lot 'ot ot jot ' or tittle httle to the administration administrationthat administrationthat administrationthat that be he canuthbold can \ withhold \uthbold uthbold withhoId has made It Itplain itplain itplain plain that pIice price pr ce control is neces necessary necessexy necessary sary sexy , and he ion i n t going to allow too toomuch toomuch toomuch much delay on the part of those thosewho thosewho thosewho who want an anti subsidy rider at- at attached attached at attached - - tached to the OPA bill He has hasother hasother hasother other plans of his tus tue ownWar ownWar own ownWar War Food administration admmlstratlon officials officialsare officialsare officialsare are quoted as admitting that the thecase thecase thecase case of the bashful beeves Is one of ofthell oftheir oftheir thell their ' greatest problems Concrete Concrete- Concretely Concretely Concretely - - ly they have the Job lob ] 0b of enticing entlcmg tVto two tVtoor twoor twoor or three million head of beef cattle cattleoff cattleoff cattleoft off the ranges and into mto the butcher butchershops butchershops butcherthops shops during durmg early spring sprmg and sum summer summer summer mer And the only thing thmg that they theyknow theyknow theyknow know of to make the cattle move IS ISthe isthe isthe the good old reliable that makes makesthe makesthe makesthe the mare go-cash go cash go - - cash money Smce Since Smcethe Sincethe Smcethe the administration admmistratlon Is sitting slttmg on the thecellmgs theceilings theceilings cellmgs ceilings and refusing refusmg to allow prIces prIcesto pricesto pricesto to the consumer to go up Uncle Sam SamWIU Samwill Sam.will Samwill . WIU will probably have to make up the thedifference thedifference thedifference difference again agam if congress will let lethIm lethim lethim hIm in the form of a price pre premlum premium premium [ mlum mium to the stockmenThe stockmen stockmenThe I The Banker's Bankers Banker ' ' ' . StakeAnd StakeAnd Stake StakeAnd And the government is wonderingabout wonderingabout wondering wonderingbout about bout something else besides a few fewmeatless fewmeatless few-meatless few meatless - meatless Mondays or Tuesdays or orWednesdays orWednesdays orWednesdays Wednesdays It is worried worned about the thebanker thebanker thebanker banker who has a stake in steaks steaksas steaksas as well as the cattleman and beef beefeater beefeater beefeater beefeaterCattle eater eaterCattle Cattle on the ranges have in increased Increased increased creased beyond the teed feed on the theranges theranges theranges therangesThe ranges rangesThe The average livestock hvestock population populationof populationot ot of America Amenca In the years 1922 to 1942 1942was 1942was 1942was was 69 million head Roughly let s ssay ssay ssay say halt half of this was dairy dall'Y dallY ' cattle cattleNow cattleNow cattleNow Now the estimate estlmate is 82 million head headand headand headand and , the ratio of eating eatmg cows to mllk mills mllkIng millstug milkIng Ing tug cows has increased alarmmgly alarmingly alarminglyIn alarmmglyin in the last few yearsAnd yearsAnd years yearsAnd And the beeves are now home on onthe onthe onthe the range because there isn t a pnce price pnceincentive priceincentive priceIncentive incentive to lure them to slaughter slaughterThe slaughterThe slaughterThe The government feared this Uus f"ared fared feared f"aredfirst fearedfirst fraredErst " first the famine famme and then the flood floodIt floodIt floodIt It now looks as if the famine famme was wascommg wascoming wascoming commg coming and the flood is not far be- be - betund behind be behind - hind tund And this Uus is where the banker bankercomes bankercomes bankercomes comes knocking knockmg at the door He re remembers remembers remembers members other gluts when the thedrouth thedrouth thedrouth drouth for instance mstance sent all the cat cat- cattle cattle cattle - - tle to market at once ruining rummg the theIndustry theIndustry theIndustry Industry making makmg the banker s notes notesJust notesjust notesjust Just so much wallpaperBut wallpaperBut wallpaper wallpaperBut But how the simple citizen asks askscan askscan askscan can there be a price drop when the thegovernment thegovernment thegovernment government has placed a floor un under under under der prices as well as a ceiling celmg ! over overthem overthem overthem them ' " Well see what happened to toour toour toour our tnend fnend friend the hog The farmer farmerbrought farmerbrought farmerbrought brought his tus pigs to market The gov government goveminent goveminent ernment eminent fixed the price which the thepackers thepackers thepackers packers were bound to pay But so somany somany somany many pigs arrived that the packer packercouldn packercouldn packercouldn couldn t pack them and the law lawdldn lawdrdnt lawdidnt dldn drdnt t say he had to buy what he hecouldn hecouldn hecouldn couldn t t use So the farmer rather ratherthan ratherthan ratherthan than pick up his tus pigs and carry them carrythem home again agam sold them off at atdisgracefully atdisgracefully atdisgracefully disgracefully low prices to the smart smartbos smartboys smartbo bos boys ) s Finally Fmally the smart boys got gotthe gotthe gotthe the floor price the butcher got tus tun tusceiling tunceiling hisceiling ceiling price whlcq which } the consumers consumerswith consumerswith consumerswith with full pocketbooks and empty emptystomachs emptystomachs emptystomachs stomachs were glad to pay AU All the thefarmer thefarmer thefarmer farmer got was madThis madThis mad madThis This happened why why9 " ' The govern government government government ment says ays simply because some somefarmers somefarmers somefarmers farmers seeing seemg as how there was wasgoing wasgoing wasgoing going to be such a good market for forhogs forhogs forhogs hogs exceeded their quotas-got quotas got quotas - - got too toohoggish toohoggish toohoggish hoggish ( one district in Iowa I was wastold wastold wastold told increased its pig crop by 53 per . cent when the figure the govern goveI'l goveIl governmeat governrnent ' ) . rnent ment meat had set was 15 per cent ) Moreabout Moreabout More about bout that laterAnd laterAnd later laterAnd And so the War Food admlnistra administra admlnistratfon administratlon administration tfon tlon is afraid the same thing might mighthappen mighthappen mighthappen happen to the cattle market . . . . , And Andthe Andthe Andthe the banker is afraid It would be bebad bebad , bad enough It if we ran Iran into a glut like likeI likethe likethe likethe the hog Jam but as one WF WFA A live livestock livestock livestock I stock expert put It it , , , we shud shudder er to toI tothInk tothink tothink I . thInk what might mlght happen if 11 an earl early earlydrouth earlydrouth drouth routh developed There would beI beagreat beaFgreat be I a\great a great aFgreat \ ' 'treat treat ' stampede to move cattle to tomarket tomarket tomarket market Transportatlo Transportation Transportatlon/and Transportatlon and and ' / and process process.ing process4ng . ing .ing , . facilities might not be able to tohandle tohandle tohandle handle the movement The result resultmight resultmight resultmight might be the loss of thousands and andthousands andthousands ndthousands thousands of head of cattleR cattleR cattle cattleR R M Evans member of the Fed Federal Federal Federal eral Reserve board tor for agnculture agriculture agnculturewho agriculturewho agriculturewho who is a former agricultural adjust adjust- adjustment adjustment adjustment - - ment administrator admlDlstrator is urging urgulg the thebankers thebankers thebankers bankers in , the cattle industry mdusby ; to do dothell dotheir dotheir thell their ' share in coaxing coaxmg Ferdinand off offthe offthe offthe the rangeAbout range rangeAbout About 'Elastic Elastic 'Elastrc Elastrc ' ' ' PricesOf Prices PrIce . 01 Of course the cattlemen have havebeen havebeen havebeen been among the most violent cntIcs critics cntIcsof criticsof criticsof of the price control administration administrationand and their thell ' representatives have main maintamed maintamed maintamed tamed a steady battle here in Wash Washington Washington Washington ington in an effort to remove the ceil cell ceiling cellbig celling ing big prices from beef ( or as they theysay theysay theysay say make the prices elastic ) so that thatprices thatprices thatprices prices would rise rlSe and fall in accord accordance accordante accordanee ance ante with the seasonal demandThe demandThe demand demandThe The cattlemen s viewpoint as pre presented presented presented sented by Joe G Montague of the theTexas theTexas theTexas Texas and Southwestern Cattle Rals Rais Ralsers Raisera Raisers ers era association associatlon boils bolls down his plamt plaint plamtto plaintto plaintto to a simple statementCattle statementCattle statement statementCattle Cattle just provide the frames to tohang tohang tohang hang beet beef on The Lord knows knowswe knowswe knowswe we ve ye produced the frames but butsomebody butsomebody butsomebody somebody fell down on the job of ofhangmg ofhanging ofhanging hangmg hanging the beet beef on emMr emMr em emMr Mr Montague told me the other otherday otherday otherday day that the weights have gone down downfaster downfaster downfaster faster than even he expected al although although although though he predicted the glut and andthe andthe andthe the promised proIIllsed famine famme ever since smce the thefixed thefixed thefixed fixed price pnce was made last October OctoberThey OctoberThey OctoberThey They have gone off 27 7l : to 28 pounds poundsa a head and he expects this Uus will contmue continue con tmue tinue until July when grass feedmg feeding feedmgbegms feedingbegins feedingbegins begms begins agam1m againurn again agam Ini 1m urn trying trymg to get the cattle off offthe offthe offthe the ranches but I can t do it it . . . The Thefeed Thefeed Thefeed feed lots are not taking them be because because because cause there Isn t any feed I could couldsell couldsell couldsell sell thousands of pounds of feed to- to - today today to today - day if I could get my bands hands on It ItThe itThe itThe The government reports show that thatthere thatthere thatthere there s 15 a lot of teed feed somewhere but butwe butwe butwe we can t find 1t it . . , Hoarded CornThere CornThere Corn CornThere There if is plenty of feed in the shape shapeof shapeof , of corn in the country but the farm farmers farmers farmers ers with their thelr government assured assuredI assuredprices assuredprices assuredprices I prices on hogs are hoarding hoardmg It-they It they Ittheyare ittheyare it - theyare are transforming transformmg it into mto pork The TheI Thegovernment Thegovernment Thegovernment I government asked tor for this when whenIt whenit whenit It put a premium on hog raising ralsmg as asI aswe aswe aswe I we have explained explamed But many farm farmers farmers I Iers ers poultry powtry and dairy farmers and andothers andothers andothers others outside the corn belt need needfeed needfeed needfeed needfeedNot feed feedNot Not only farmers but industrIalists industrIalistswho industrialistswho industrialistswho who need corn com tor for their chemicals chemicalsare chemicalsare are complaining complammg The army and andnavy andnavy andnavy navy who need their products have haveechoed haveechoed haveechoed echoed their thell ' pleasSo pleasSo pleas pleasSo So the government is smack up upagamst upagainst upagainst agamst against the problem of prying prymg Uus this Uusfced thisfeed thisfeed fced feed ( corn com ) loose from the farmers farmerswho farmerswho farmerswho who are keeping keepmg it to feed to their theirhogs theirhogs theirhogs hogs The only way they can shake shakethe shakethe shakethe the kernels loose is to increase the theprice theprice theprice price of corn The only way they theycan theycan theycan can do that without breaking through throughprice throughprice throughprice price ceilings cellmgs is to subsidize corn-m corn m corn-in in cornmother corninother corn - inother other words buy it at a price which whichWIll whichwill whichwill WIll make it more profitable to the thefarmer thefarmer thefarmer farmer to sell it than to feed it to tohis tohis tobis his hogs hogsMontague Montague s argument is that be because because . ' cause the cattle business busmess is seasonal seasonalyou seasonalyou you have to have flexibility in m price priceI priceIf priceIf priceIt I If the price pnce is nailed down the cat cattleman cattieroan I ItIeman tIeman tleman will sell his grass fed cat cattie cattie I Itle tle tie in September instead mstead of holdmg holding holdingout holdingout I Iout out for higher prices m 10 in the sprmg spring sprmgand springand springand and save going gomg through the angwsh anguish angwshI anguishof angwshof I of zero weather Of course under underprice underprice ' prIce control the theory is that the theflexibility theflexibility ' flexibility is provided by the sub subsldyexcuse subsidyexcuse subsidy sldy-excuse sldy excuse sidy-excuse sidy - excuse me agam-by agam by again-by again again - by the gov government government govemment ernment offering a price premium premiumwhich premiumwhich premiumwhich which gives the cattleman enough enoughfor enoughfor enoughfor for a lair fair profit but doesn t Increase Increasethe increasethe increasethe the |