New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-13
Food Administration Ready
to Take Over All Of
1917 Harvest
H. A. Garfield Heads
Price Commission
Government Agencies Are
Planned; Cost To Be
Forced Down

WASHINGTON. Aug. 12.-The gov.
ernment, through Food Administrator
Hoover, to-day announced sweeping
plans to stabilize the price Of wheat,
prevent speculation and boarding and
to substitute "broken-down marketing
with government purchas-
Ing agencies for handling the whols
harvest.
Beginning September the govern
ment will assume practical control OF
the wheat business Of the United States
through the following means:
Licensing Of all elevators and
mills with over one hundred bar
rels daily capacity.
Prohibiting storing Of wheat for
more than thirty days without food
administration approval.
Establishing of food administra-
ton agencies for purchases of all
wheat at principal terminals, pre-
pared to take the whole American
harvest, and to resell wheat In
limited quantities for export and
to domestic millers for homo con-
sumption.
Determining q fair price for the
1917 harvest through q committee
approved by the President, consist
ing Of producers and consumers,
and headed by H. A. Garfield, presi.
dent Of Williams College.
Using every authority Of law !
and expert control to effect univer-
salty of price basis agreed upon
throughout the year without huctus
alton, thus removing incentive td
producers for holding wheat back.
Prosecuting with vigor all per-
sons, whether engaged in the trade
or not, who hold up wheat and
-four contracts.
Mr.. HoOver's Statement
Following is Hoover's announces
nent:
"The disturbance 10 the worlds COM
nerce and short supplies has caused q
greater disruption Of the normal mar
<ets for wheat than any other cereal.
"1. AS a result of the isolation Of
certain of the worlds wheat producing
by either belligerent lines
Or short shipping. the normal determi-
nation of the price Of wheat by tho
ebb and flow of commerce Is totally
destroyed.
"2. In order to control speculation
and to secure more equitable distribu-
ton Of the available wheat and -four
between their countries, the Allied gov
have placed the whole pur-
chase Of their supplies in the hands OF
one buyer. Also the European neutrals
are now buying their wheat through
single government agents instead OF IN
he normal course of commerce. There
fore the export price of wheat and
-four, and thus the real price. II not
controlled will be subject to almost 8
single will Of the foreign purchaser.
"3. In normal times American wheat
moves largely to Europe in the fall
months. This year the shortage OF
necessitates its distribution
,ver the entire year. Therefore, there
s danger of a glut in our warehouse
,ystem over a considerable period.
Prepare for Emergency
~. There are large stocks Of wheat
which cannot be drawn upon. by the
Allies during the war, but In the event
If peace or defeat Of the submarines
,hese would be available and might Sc
.iously demoralize the demand for
American wheat.
"5. II must be clearly understood
hat the guaranteed minimum price OF
q bushel for wheat, set out in the
'ood bill, does not apply to the 1917
harvest, but only to the 1918 harvest,
md then under conditions which must
,e elaborated. There is, therefore, no
determined price for the 1917 harvest.
"The result of this situation is that
he normal price-making machinery is
entirely broken down unless some eff
,ient government action is brought into
,lay, either (a) the American produc-
,r may face a slump in wheat, possibly
below his production cost, and (b) the
export price of wheat, which ultimately
the real price, is at the
will of a single agency. (c) Some one
must buy the surplus wheat at any
yiven moment. and il the surplus
passes into speculative hands it will
,e held for higher prices later in the
rear. (d) With stabilized prices, ex-
.ra hazards are introduced into all
distribution links which must be paid
'or hv tho eonsumer
Course Decided Upon
at must be evident that the United
States government can more justly
deal with the situation than any Of
the agencies mentioned.
Therefore, the food administration
has determined TO take the following
course:
"First-In order TO eliminate specula.
lion in wheat and -four all elevators and
mills over one hundred barrels daily
capacity will be required to take out q
government license, and the conditions
Of this license to be:
THAT only reasonable and customary
charges shall be made for warehouse
service; that no wheat shall be stored
for more than thirty days without the
approval of the food administration;
that certain information as to receipts
and shipments shall be supplied regu-
larry. The grain exchanges are being
asked to suspend all dealings and quots-
A IL