French Broad hustler. [volume] (Hendersonville, N.C.) 1916-1919, 1917-10-18
PERSUASION FAILS TO CUT
BREAD PRICES; so q. S.
WILL USE FORCE.
(By Harry Hunt in Raleigh New and
Observer

Observer)
Washington, Oct. 16.-The baking
industry is to be taken in hand by
the government and forced to behave.
The big bakers have rejected all
offers of the food administration to
cooperate voluntarily in bringing
down prices. They have hampered
every effort of the government to get
at the real cost and profits The gov
ernment has decided to temporize no
longer with them, but to force them
to operate under government license,
with strict limitations as to profit.
Examination of baking company
records, and actual baking tests by
the government itself, prove the pub
lie is being held up when it is charg-
ed 10 cents for IA or 16-ounce all
wheat loaf. With the baking industry
under license the price reduction to
be required will approximate 25 per
cent.
This probably will be secured
through the standardization of a 20
ounce loaf to retail for 10 cents, pro-
v1ding 20 per cent more bread for the
same price. 1t is believed the larg-
er loaf will be more satisfactory than
maintaining the pound standard and
fixing the price at an odd figure such
as 8 cents.
The extent to which the bakers
have gone in opposing government
control is shown by the following in
stance:
Some three or four weeks ago I
sent out a story showing that. on re-
cords submitted by bakers them
selves, the cost of ingredients enter
ing into one-pOund white loaf, re-
failing at 10 cents, was but Alp cents.
J This figure under ordinary practice.
the story stated, was doubled to cover
cost of baking, distributing and over
head expense.
The Bakers Publicity Bureau at
once began a campaign to offset the
eject OF this story, Personal letters
were sent to editors and matter was
enclosed which editors were asked to
run. +,
1t may be interesting to reveal the
results shown in exhaustive baking
tests just concluded by the govern
ment
These tests, made on six formulas
submitted by baking experts, show
that with flour at its present price on
the open market, the cost of ingre-
dients in a one-pound wheat loaf is
not-at the bakers figures indicated
I-4.12 cents. but from 3.44 cents to
3.73 cents per loaf
In these tests formulas were sub-
m1tted by the War Emergency Coun-
Gil of the Baking Industry; the Blu,
reau of Chemistry of the Agricultural
Department; Benjamin r. Jacobs,
bread expert for the Food Admins
tration; the Washburn-C Crosby Co..
Em1llers; the American Stores. big
bakers and distributors of bread. and
the Fleischmann Co., yeast experts.
The costs of ingredients per loaf
from these formulas were, respective
1y: S.49 cent. 1862 cents, 3.48 cents,
81 cents, 3.73 cents ad 3.44 cents.
From 200 pounds of -four. the
weight of bread produced under each
formula was: 1885, 291, 2S9, 291, 29S
| and 284 pounds The water neces-
sary for mixing the dough furnished
the additional weight.
On the basis of these tests. fortified
by figures gathered by the Federal
Trade Commission, the Food Admin.
istration feels it is proceeding upon
firm ground in decided to use the
powers granted under the food bill tc
limit bakers profits.
One instance of how profits have
been inflated is the practice of doub.
ling the cost Of ingredients to deter
mine the cost Of production and dis.
tributiOnl This method Was adop-
ed back in the days when bakers were
paying from $3.50 to $5 per barrel fol
-four. With flour at $10.50 a barrel
however, this method of computation
returns an excessive profit the gov
ernment holds.