-5- ■ • 



grains. That would still be a very high level compared to prewar everases. A fur- 

 ther reduction would be expected at the close of the war. Although no £a'ain is being 

 used for the manufacture of whiskey and very little for all alcoholic beverages, the 

 distilling industry is operating at full capacity to manufacture industrial r^lcohol 

 for war purposes. After the war, they will replenish their stocks of beverages, but 

 operations at full capacity presumably could not be maintained for any length of time. 

 Farmers have promises of government support for feed grain prices, but once we take 

 care of the emergency demands after the war, we shall probably find that the demand 

 for wheat will not provide for very high prices. 



More government control of protein meal distribution . The War Food Admin- 

 istration is holding a hearing in Washington today, December 2, on the proposed order, 

 effective January 1, I9\h, relating to the distribution of protein meal among live- 

 stock and poultry feederla^nd among mixed feed manufacturers. Proposed regulations 

 could make it possible for farmers to obtain more protein feed concentrates to mix 

 with home-grown feeds in order to maintain the production of milk, eggs, and other 

 livestock products, according to Marvin Jones, War Food Administrator. Principal 

 , provisions of the proposed order are: (l) Limit mixed feed manufacturers to IIC per- 

 cent of the amount of protein meal which they used for that purpose during the calendar 

 year of 19^1-2, The amount shall not include unmixed protein meal delivered to the 

 feeder. (2) If necessary, limit the quantity of protein meal which retailers within 

 the area may deliver to feeders during the feeding year. (5) Limit protein meal 

 inventories to a 50-day supply to feeders and a 15-day supply to others with scane 

 exceptions, including those who customarily buy in either carloads or less than 

 2,000-pound q[uantities and soybean and cottonseed producers making conditional sales 

 of soybeans and cottonseeds.- (h) Permit producers of soybeans and cottonseeds to make 

 conditional agreements to obtain protein meal in exchange or sale of their oil seeds, 

 up to the- minimum feeding requirements of the producer . (5) Prc^^ide for appeals. 



Cattle ceilings . Cattle price ceilings are delayed until December 15 or 

 the first accounting period following December 15 for each individual packer. However, 

 it should be emphasized that there are no real ceilings on cattle prices. There are 

 ceilings on cattle carcasses and subsidies are paid packers to make up for the differ- 

 ence between proposed prices on cattle and the lower ceilings on carcasses. However, 

 packers may pay higher than the so-called ceiling prices by sacrificing part or all 

 of their subsidy-, and may also pay less than $1.00 below the so-called ceiling by 

 sacrificing their government payments in the form of subsidies. 



Vegetable seed ceilings . The Office of Price Administration has established 

 ceiling prices for 1^ types of vegetable seeds, including beans, peas, be^jts, cabbage, 

 carrots ; cauliflower, Swiss chard, cucumbers, lettuce, mangels, onions, rutabaga, and 

 turnips. The ceilings become effective December k. 



Duiry Defense Association . On November 30 a Dairy Defense Association 

 organized "to defend federal legislation provided by Congress to protect consumers 

 and producers with respect to Imitation dairy products." Charles W. Holman, secretary 

 of the National Co-operative Milk Producers' Federation, said: 



# 



"Its creation was the result of desire on the part of the entire dairy 

 industry for some organization which could serve as a watchman and defender with re- 

 spect to the numerous attempts that are being made to destroy federal laws which have 

 been enacted by the Congress to protect the people from deceptive and fraudulent 

 practicGs in the manufacture, handling, and sale of imitation dairy products." 



