The Birmingham age-herald., 1917-08-13

against loss in protection of the pro- ducer. we intend to do so.
 "Furthermore the holding of wheat or flour contracts by persons not en- gagged in the trade. and even when in trade, in larger quantities than is necessary for the ordinary course of their business. is unlawful under the act, and such cases will be prosecuted with Vigor. And we would advise such holders to liquidate their contracts at once.
 By the above arrangement, we be- lieve that We shall stabilize the price of wheat throughout the year, that the hazards of operation due to fluc- tuating wheat prices which are im- posed upon our milling and distribut- ing community will be eliminated and therefore their business can return to normal lines and the normal margins of profits and that we shall not only have stabilized the price of wheat but stabilized the price of flour, and that it should enable us to arrive at stabil- ized price of bread.
 The food administration has had the patriotic co-operation of the leading mill CTS of the country and these millers have organized, at the request of the food ad- minstration committee to represent the entire trade. Detailed proposals for an agreed differential of profit and ex- penses. per barrel of flour and per ton of feed, are under discussion. Under this arrangement the public will be assured an equitable and stabilized price of flour based upon the cost of raw mate rial and We confidently expect the volun- teer arrangement with the mills will give satisfaction to the public.
 The universal endeavor over the coun- try to reduce consumption of wheat breadstuffs in order that we may have the requisite exports with which to carry the allies over the forthcoming winter will result in largely increased amount of wheat available for export. If 1t were exported as wheat 1t would result in dimunition of employment in our mills, and of equal importance, cur tailment of supply of mill feed for our dairy cattle. Therefore, the food admin istration will stipulate for a large pro- portion of export of flour instead of wheat and as the export orders for flour will be given subject to the approval of the food administration, those mills who cooperate with the administration vii; be given the benefit of the exports em ployment. By thus encouraging the home production of flour, the manufac- turing cost will be reduced and there- fore. the American public will receive direct benefit in lowered margins of cost in distribution
 Tn accordance with the policy of the administration to cooperate with all trades, we are this week also discussing details of voluntary arrangements with the flour distributors by which agreed maximum differentials may be effected in the wholesale trade.
 An exhaustive investigation is being made into the cost of baking and bread distribution and active discussions are being carried on with the Bakers War Emergency committee as to plans for the elimination of waste in the indus try and the production of a standard loaf.
 Tt is impossible to anticipate the price to be enunciated by the fair price com mittee' under pr. Garfield, and it will probably require two or three weeks in it's determination.
 "The names of the committee are be- ing submitted to the President and will be early announced
 The basis of determination will be to arrive at price which represents fair return to the producer for his pa triotic endeavor to increase the supply and a proper reduction of the cost of flour to the consumer.
 "rt must be evident to all thinking persons that unless the price of wheat, flour and bread can be materially re- duced, we cannot expect to maintain the present wage scale of the country and that we must in this social readjust- ment lose efficiency at time when we can afford no such sacrifice
 Tn order that nothing shall be left to mischarge we are setting up prop erly constituted and independent audit ing committee which will check all trans actions at every point.
 The food administration under these arrangements would have a large in fluence in effecting the price of wheat With a view to determining fair price, the President has approved the appoint ment of a committee to be selected from representatives of the producing sections and consuming clements in community, This committee will be assembled un- der the chairmanship of President Gar field of Williams college. and it will be the duty of this committee to determine a fair price for the 1917 harvest. Upon the determina tion of this fair basis, 1t is the intention of the food administra tion to use every authority to effect the universality of this fair basis through out the whole of the 1917 harvest year without change or fluctuation. It should thus be clear that it will not be to the advantage of any producer to hold back hls grain in anticipation of further ad- vance. for he will do so only at his own cost of storage and interest, and if it Is necessary the government will buy the entire wheat harvest in order to main- tain this fair price,