Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1917-08-17
Hoover Takes Over Control OF
Wheat.

last stage OF legislative enactment in the
afternoon of Wednesday of last week, when
it was finally adopted by the Senate in the
form previously approved by the House.
The vote was So to 7. Those voting
against the conference report we're:
Democrats Hardwick, Hollis, and Reed.
Republicans of Maryland. Gronna.
La Toilette and Penrose.
Immediately after the final vote on the
Control bill the Senate by viva-voce vote
also approved the conference report on the
first Administration Food bill. providing
for food survey and making an appro-
priation to stimulate production.
Friday the Government assumed control
Of the country's food supply with the signing
by President Wilson of the Administration
Food Survey and Regulatory bills.
Formal announcement Of Herbert c.
Hoover's appointment as food administra-
tor was made at the White House soon
after the measures were approved.
Following is the administration an
nouncement:
THE disturbance to the worlds COM
merce and short supplies has caused
greater disruption Of the normal markets
for wheat than any other cereal.
II. AS a result of the isolation of certain
of the worlds wheat-producins. by either
belligerent lines or short shipping. the nor
NAL determination Of the price OF wheat
by the ebb and flow Of commerce is totally
destroyed.
20. In order to control speculation and
to secure more equitable distribution Of
the available wheat and -four between
their countries the allied governments have
placed the whole purchase Of their supplies
in the hands Of one buyer.
ALSO the European neutrals are now
buying their wheat through single govern
ment AGENTS instead of the normal course
Of commerce. Therefore, the export price
of wheat and -four, and thus the real price.
il not controlled, will be subject to almost
a single will of the foreign purchaser
IS. In normal times American wheat
moves largely to Europe in the fall months.
This year the shortage Of shipping neces-
states its distribution over the entire year.
Therefore, there is danger Of a glut in our
warehouse 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 de-
feat of the submarines these would be
available and might seriously demorallze
the demand for American wheat.
rs. 1t must be clearly understood that
the guaranteed minimum price Of So pei
bushel for wheat, set out in the food bill
does not apply to the 1917 harvest. but only
to the 1918 harvest. and then under con
ditions which must be elaborated. There
is, therefore, no determined price for the
1917 harvest.
The result of this situation is that the
normal price-making machinery is entirely
broken down unless some efficient govern
ment 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
which ultimately determines the real price
is at the will Of single agency. (c) Some
one must buy the surplus wheat at any giveT
moment, and II the surplus passes int
speculative hands it will be held for highe
prices later in the year. (d) With stabil
lied prices. extra hazards are introduced
into all distribution links, which must b,
paid for by the consumer.
ut must be evident that the Unitet
States government can more justly des
with the situation than any Of the agen
cies mentioned.
Therefore, the food administration ha
determined to take the following course /:
"First-In order to eliminate specula
ton. all elevators and mills over 100 bar
rels daily capacity will be required to tax
out a government license, and the condition
of this license to be-
That only reasonable and customar
CHARGES shall be made for warehouse ser
vice; that no wheat shall be stored fc
more than 80 days without the apprOvs
of the food administration that certai
information as to receipts and shipment
shall be supplied regularly. Grain ex
changes are being asked to suspend a
dealings and quotation in future wheat.
These regulations will come into fore
September and the licenses will be pre-
pared this week.
while farmers cooperative elevator
are excepted by the food bill, this how
ever. only applies to mutual concerns an
not to stock companies.
in substitution of the broken-dow
marketing machinery, the food administra
ton proposes to open agencies for the pun
chase of all wheat at the principal term
nails, carrying on its transactions with III
usual dealers and is prepared to take III
whole harvest. If necessary. in order t
maintain a fair price. and will resell whea
for export in such quantities as we ca
afford to part with in protection Of our ow
people on one hand and to sell on tn
other to the millers for domestic consump
ton.
THE administration will make no charg
except nominal percentage to cover cost
of the operation and arrangements will b
made which will assure the government
against loss.
'In order that nothing shall be left t
mischaree we are setting up properl
constituted and independent auditing com
mittee which will check all transactions a
every point
The food administration under thes
arrangements would have large infuenc,
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