The sun., 1917-08-13


Therefore, the food administration
has determined to take the following
course:
"First-In order to eliminate specu-
lation in wheat and -four. all elevators
and mills over 100 barrels daily capa-
city will be required to take out Gov
eminent license. and the conditions OF
this Tense will 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-
larly. The grain exchanges are being
asked to suspend all dealings and quota
tions in future wheat. These regulations
will come into force September l and
the licenses will be prepared this week
while farmers cooperative elevators
are excepted by the food bill, this, how
ever only applies TO mutual concerns
and not to stock companies. and In anv
event under the advantages OF joining
the plan none are likely to stand out.
May Buy whole Crop.
"In substitution for the broken down
marketing machinery the food admins
tration proposes to open agencies for the
purchase Of all wheat at the principal
terminals, carrying on its transactions
with the usual dealers and is prepared
10 take the whole harvest II necessary
in order to maintain . fair price. 1t will
resell wheat for export In such quantities
as we can afford to part with in protec-
ton of our own people on the one hand
and to sell on the other to the millers
for domestic consumption. The adminiS-
tration will make no charge except
nominal percentage to cover costs OF the
operation, and arrangements Will be
made which will assure the Government
against loss.
we are setting up a properly consti-
tuted and Independent auditing commit
tee, which will check all transactions at
every point.
"The food administration under these
arrangements would nave large in
fuence in affecting the price of wheat
With a view 10 determining lair
price the President has approved the
appointment OF committee to be So
lected from representatives OF the pro-
ducing sections and consuming elements
In the community. This committee will
be assembled under the chairmanship OF
President Garfield of Williams College
and IL will be the duty of this committee
to determine a fair price for the 1917
harvest
Upon the determination of this fair
basis Il Is the intention OF the food
administration to use every authority
given 1t under the bill and the contro
OF exports to effect the universality o.
this fair basis throughout the whole Of
the 1917 harvest year without change
or fiuctuation- II should thus be cleal
that II will not be to the advantage
OF any producer to mold back his graiI
in anticipation of further advances. fol
he will do so only at his own cost o
storage and interest, and IL II IL neces
sary for the Government to buy the en-
tire wheat harvest in order to maintaiI
this fair price in protection Of the pro
ducer we intend to do so.
Furthermore, the holding OF whea
or -four contracts by persons not en-
gagged in the trade, and even when II
trade, in larger quantities than Is neces
sary for the ordinary course OF thei
business is unlawful under the act, ant
such cases will be prosecuted with vigor
We would advise such holders to liQudi
date their contracts at once
To Remove Hasards.
"By the above arrangement we be
lieve we shall stabilize the price o
wheat throughout the year: that tn
hazards of operation due to fiuctuatlnl
ing and distributing community will b
eliminated. and therefore their bushes
can return to the normal lines and tn
normal margins Of profit, and that W
shall not only have stabilized the pric
OF wheat but stabilized the price o
-four, and that 1t should enable us I
arrive at a stabilized price Of bread.
The food administration has had tn
patriotic cooperation or the leading mill
ers Of the country and these miller
have organized, at the request OF tn
food administration, committee I
represent the entire trade. Detaile
proposals for an agreed differential c
profit and expenses per barrel OF fiou
and per ton OF feed are under discussion
Under this arrangement the public wi
be assured an equitable and stabilize
price OF -four based on the cost of ra'
material and we confidently expect III
volunteer arrangement with the mil
will give satisfaction to the public
THE universal endeavor over Il
country to reduce consumption of whei
breadstuffs in order that we may hay
the requisite exports with which to carr
the Allies over the forthcoming winte
will result in largely increased amour
of wheat available for export II
were exported as wheat IL would resu
in diminution of employment in OF
mills. and, of equal Importance, curtai
ment of the supply OF mill feed for oil
dairy cattle. Therefore the food az
ministration will stipulate for a lar,
proportion of export OF -four instead
wheat and as the export orders for fio,
will be given subject TO the approval
the food administration. those mil
which cooperate with the Administr
ton will be given the benefit of the e
ports employment, BY thus encoura
ing the home production OF flour h
manufacturing cost will be reduced al
therefore the American public will T
ceive indirect benefit in lowered margi
of cost in distribution.
Tn accordance with the policy OF I
Administration to cooperate with
trades we are this week also discussi
details of voluntary arrangements WI
the -four distributors by which agre
maximum differentials may be effect
tn the Wholesale trade.
AN exhaustive investigation is bel
made into the cost of baking and bre
distribution and active discussions a
, being carried on with the Bakers W
Emergency Committee as to plans
the elimination OF waste in the indusi
and the production OF a standard loaf
1T is impossible to anticipate
price to be enunciated by the Fair Pr
Committee under DR.. Garfield and
will probably require two or three wee
in it's determination.
The names of the committee are
ing submitted to the President and "
be early announced.
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