New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-24
WHEAT CORNER?
ABSURD" SAYS
CHICAGO EXPERT
President Candy of Board
of Trade Calls Idea
Pure Bunk"
GUM-CHEWING NATION
WILL BUY 6-CENT LOAF
"Poor Won't Stop Eating
Bread" He Says at Hearing,
but VIII Use Less of It.


oTha. is the orthodox view OF the
situation
Deputy Attorney General Becker so
characterized the testimony Of Caleb
Y. Candy. president Of the Chicago
Board Of Trade, at yesterdays hearing
IN the Attorney Generals investigation
Of possible criminal combination or
conspiracy in the advance Of the price
Of bread, -four and wheat.
The Chicago man ridiculed the idea
OF any combination Of speculative in
terests as q factor in raising the price
Of wheat and -four. During q rigid eX-
animation Of three and half hours by
the Deputy Attorney General he main
tained the infexible opinion that the
advance was due solely 70 an uns al
economic condition growing out of the
war IN Europe.
Mr.. Becker reverted time and again
70 the suggestion Of a possible crimi-
nal combination in restraint OF trade
on the part of big speculators in wheat
and -four, without getting a single ad-
mission along that line from the wit
ness.
Doubts Conspiracy.
The best Mr.. Candy would DO was to
assert that while such a conspiracy
was conceivable it was highly improb-
able and, in fact, was not an element
in the present feverish fluctuations Of
the grain and -four market.
Remarkable. but lawful was the
way in which the president Of the
Chicago Board of Trade described the
situation.
The Deputy Attorney General sue
eeeded. however, in bringing out one
important point in the situation dur
ine the examination Of Mr. Canby
which would suggest tho dangerous op-
portunity for controlling the wheat
market by large interests. The wit
ness stated il as a positive fact, IN
which most economists agree, that the
price paid for export wheat fixes the
price which has TO be paid by the home
consumers
Assuming that this is true queried
Mr.. Recker, "then all that is necessary
TO control the price of wheat here is
TO get control of The surplus or ex-
port wheat. which IS about One-third
Of the total crop; is that not so?"
The witness admitted that TO con-
troll the surplus for export would be
TO control the general price of wheat
in this country, but he declared he
could not conceive of such a situation
being possible.
We'll. wouldn't it be possible for a
large corporation, like the Armour in
terests. to buy the grain from the
farmers and hold II in their elevators
TO such an extent as to control both
the export and domestic market"
asked Mr.. Becker.
"Tbe impression that any individual
or group of individuals control or have
sought TO control the wheat market Is
all moonshine and pure bunk, replied
Mr. Candy.
Mr. Becker commented on the very
remarkable situation" whereby, with
no apparent shortage of wheat IN TINS
country. a. Mr.. Candy testified the
home consumer Of the crop was com
PEELED TO pay the price created. oE the
shortage in Europe.
Il was a case Of "the tail wagging the
dog" he said, the dog being the two
thirds Of the crop required TO supply
home consumption, and the tan nelhg
the other third for export which hXeu
the price the consumer had to pay Tor
the wheat here.
Calls Price Artificial.
The theory or fact that the world
price" or export price. fixes the price
a. home in normal times, the deputy
Attorney General was willing 10 adinl'
but he said hS was particularly anxious
70 have explained why, with decioeu
limitation on the amount exported AZ
the present time, which acted as par
tal embargo, the American consumer
had 10 pay the same skyrocket pfice.
/, suggested 70 his mind. he said, that
the present high price Of wheat ana
-four WAS in a large measure artihcial.
The witness said that the impossl-
bility Of shipping wheat 70 Germany
was the only reason which preveIted
that nation from buying lOO,OOO'OoO
bushels Of wheat al 81 bushei' OF az
any price. He admitted that we cynIo
not continue 10 export wheat 70 other
European countries during the next
I'VE months al the rate IT had been
going out during the last seven pc
tween 5000 900 and 100000 bushels
week without seriously cutting INTO
the reserve crop for home consumption
but he declared he did not think that
would happen.
Wheat and -four quotations, De,
heye, have reached the top notch, sara
Mr.. Candy. "The excited buying IS
about all over. Expectations Will grow
less and less from now on until inc
next big crop in July. look iorwaIo
70 decided reaction in prices oeloie
the first Of June -.
The witness was sure the rise IN inc
price Of bread and -four would not
cause suffering among the poor OF New
York or other large cities. The man
affected by the rise OF one penny on
bread was penniless in the hrst IN
stance. he said, and you could not begin
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