Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1917-08-13
Commission of Experts Head
ed by Dr. Garfield Of VIII
iamS College, VIII InveSti-
gate Production Cost,
LICENSE REQUIRED OF
IMPORTANT MILLS
Wheat is to be Ground in Unit
ed States and Only Flour
Will be Exported no Hoard
ing Allowed.

fss hoRNha JsuhNAL SPECIAL LaAshn WiRel
Washington. Aug. 12.--The food adj
ministration announced tonight Its
plan for controlling wheat, flour and
bread, revealing that the government
is prepared to take over the whole
1917 wheat harvest IL necessary to
conserve the supply, obtain just prices
for Americas forces and their allies
and reduce costs to the general pubic
in the United States.
Establishing of buying agencies at
all the principal terminals, licensing
of elevators and mills, fixing OF a
price to be considered fair, regulation
of the middle man and OF grain ex-
changes with the elimination Of trad
ing in futures are the chief features
of the plan The licensing will begin
| September |.
! WIN Control 1917 Crop.
The nsi nlmnm price OF W for wheat
/ fixed by congress does not become
effective until next year, but the ad-
ministration proposes to exercise a
very thorough control over this years
crop through powers conferred under
the food and export control bills.
Following is the administration
announcement:
"The disturbance to the worlds
commerce and short supplies mas
caused greater disruption OF the nor
NAL markets for wheat than any other
cereal
81 AS q result of the isolation or
certain of the worlds wheat produce
ing countries by either belligerent
lines of short shipping the normal de-
termination of the price of wheat py
| the ebb and flow of commerce Is total
| ly destroyed.
Purchases by One Agent.
"2. In order to control speculation.
and to secure more equitable distri-
button of the available wheat ana
flour between their countries. the al
| led governments have placed the
whole purchase of their supplies In the
| hands of one buyer. Also the Euro
| mean neutrals are buying their wheas
through single government agents IN
stead of in the normal course OF COM
merce. Therefore, the export price
of wheat and flour, and thus the real
price. IL not controlled, will be SUB"
| iect to almost a single will of the for-
eign purchaser.
Might Dcmoralize Market.
II In normal times American
wheat moves largely to Europe in the
| fall months This year the shortage
| of shipping necessitates its distribu-
ton over the entire year. Therefore.
there is danger of a glut in our ware
| house system over considerable
| period.
"A. There are large stocks OF wheat
which cannot be drawn upon by the
allies during the war. but IN the
event of peace or defeat of the SUD
marines these would be available ana
might seriously demoralize the de-
mand for American wheat.
"5. It must be clearly understood
that the guaranteed minimum price OF
81 per bushel for wheat, set out IN tne
food bill. does not apply to tho isi'
harvest but only to the 1918 harvest,
and then under conditions when must
be elaborated. There Is therefore no
determined price for the 1917 harvest
May Face Slump.
"The result of this situation Is that
the normal price-making machinery
is entirely broken down. Unless some
efficient government action is brought
into play, either (a> the American
producer may face slump In wheat
possibly below his production cost
| and (b) the export price Of wheat.
F.! which ultimately determines the real
rrice, is at the will of single agency.
J &c, Some one must buy the surplus
wheat at any given moment and II the
surplus passes into speculative hands
it will be held for higher prices later
In the year. td) With stabilized prices
extra hazards are introduced into all
distribution links which must be paid
for by the consumer. 1t must be evi-s
cent that the United States govern
ment can more Justly deal with the
i situation than any of the agencies
mentioned.
."Therefore the food administration
has determined to take the following
course
Must Have License.
/. First In order to eliminate spec
ulation in wheat and flour all ele-
yators and mills over 100 barrels daily