The Great Egg Scandal

The Great Egg Scandal moved apace. The U.S. had not only bungled. It intended to go on bungling. In Manhattan last week, OPA lifted the top ceiling on eggs 2-c- per dozen, the second increase in two weeks. Over the whole of the U.S., egg ceilings have been raised some 8-c- per dozen in the last two months. Reason: hens are beginning their vacation from egg-laying.

This does not mean that there is an egg shortage in sight. War Food Administration has on its hands 1,400,000 cases of eggs--approximately a half billion eggs. WFA is still frantically trying to get rid of eggs. Warehouse space is badly needed, some eggs are turning rotten (TIME, Aug. 21). Helpfully, eggmen recently tried to buy 47,000 cases stored in Providence. But WFA promptly turned them down: the bids were not so high as WFA's rigid high ceilings. Many eggs turned bad while the price rose.

Belatedly, a Senate committee probed the problem. Able, red-haired WFA Deputy Director Lieut. Colonel Ralph W. Olmstead gingerly told the committee that if WFA had not supported prices, the U.S. might actually have had an egg shortage.

Michigan's Senator Homer Ferguson asked incredulously: "Do you mean to say that the American taxpayers have invested $100,000,000 to $150,000,000 on eggs we have no use for?"

"That's right," replied Olmstead.

"What are you going to do with all the eggs?"

Said Olmstead, "I wish I knew."

There was one thing he did know. WFA is going to continue buying eggs until Congress tells it to stop. He added, "When you get 150 telephone calls a day from Capitol Hill demanding 'Support the price of eggs' you get the idea that Congress is pretty interested in having it done."

Into this barnyard mess squawked New York City's egg-shaped Mayor La Guardia to peck at the Government for failing to give the consumer the benefit of its egg buying. Said he: "It is unscientific, uneconomical, unfair and most wasteful and sinful for the Government to buy eggs to support the market . . . and expect to sell them to the consumers at the same price, These eggs ought to be sold for about 75% of ceiling price to the consumer. The Government could then recoup 75% of its investment and the consumer would get the benefit of low-priced eggs."

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