Butch Buys a Steer

New York's busy little Mayor Fiorello H. LaGuardia has long contended that no law-abiding beef slaughterer can make money under OPA's present ceilings for beef. Last week, "Butch" LaGuardia tried to drive home his point, with the help of a Grade-A steer. On Butch's orders, the city bought the steer and had it slaughtered, keeping track of the pound-by-pound cost. The results:

P:The cost of the steer, including commission, freight, slaughtering and trucking costs, and allowing for the present Government subsidy to packers, was 25.36-c- a Ib. for 664 Ibs. Total cost: $168.39.

P:Packers, said the Mayor, would have had to set 55% of the steer aside for the armed forces, at 20.5-c- a Ib. (Because it was bought for New York City's institutions, the Mayor did not have to share his steer.) The remaining poundage could be sold at a local average ceiling price of 28-c-. P:Total cash intake: $158.54. Loss: $9.85.

With these facts firmly in mind, the Mayor concluded: "The Government must pay either the entire difference [between costs and a reasonable retailers' profit] or else adjust the price."

But what Butch forgot was that most big packers do not make profits from meat sales alone, but from the sale of byproducts (fertilizers, soap, glue), which the Mayor was unable to include. Small packers, who must depend mainly on meat sales, applauded Butch to the echo.

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