The Oskaloosa herald., 1917-11-08
.EIA|A.INHNINHMI !.
PRICE foRH0Cs
FOOD ADMINISTRATION SAYS NOT
LESS THAN $3.50.
EFFORT TO STABILIZE PRICE
Official Statement Issued saturday.
Act Would Deal Fairly With
Production and Gust
Spectator.

Chicago, Nov. s. - Minimum hog
prices both for the present market
and for next year were fixed Saturday
by the United States food admins
tration.
For, the present the government
will attempt to maintain minimum
prices at $3.50 per hundredweight at
the Chicago market.
Prices hereafter will be based on a
minimum ratio Of thirteen times the
average cost per bushel of corn fed
The previous ratio has been twelve to
one.
This step to stabilize hog prices SO
as to increase the number of hogs
raised, encourage the farmer and in
sure the producer against loss on any
hogs raised between now and, next
winter, was announced by Joseph p.
Cotton, chief Of the meat fiivision
Of the food administration, who made
the following statement. = I41
Administration Statement.
The main purpose of the Food Ad-
ministration, relative to The prices of
hogs are:
Ito see that the producer at all
times can count on fair price ofNhogs
so that it will be profitable to him.
Y 2-To see that the farmer increases
the number of hogs bred,
$40 limit the profit of the pack
er and the middleman.
4.-To eliminate speculation.
All these purposes are necessary.
because we must have more hogs so
that the ultimate consumer can act all
tunes get an adequate supply of meat
at the lowest feasible price.
We shall establish rigid control of
the packers. Fair prices to the farm
er for his hogs, We believe, will be
which the Food Administration has
over the buying of the allies, our ar
my and navy, the Red Cross, the Bel
gian Relief and the neutrals, which to-
gether constitute a considerable fac
tor in the market. ...
To Stop Breaks.
The first step is to stop the sudden
break in prices paid for hogs at the
central markets, These prices must
become stable so that the farmer
knows where he stands and will feel
justified in increasing hogs for the
next winter. The prices, SO far as we
can effect them, will not 90 below a
minimum of about $3.50 per cwt. for
the average of the packers droVes on
the Chicago market until further no.
tice.
We have had, and shall have, the
advice of a board composed of prac-
tical hog growers and experts. That
board advises that the best yard stick
to measure the cost of production of
the hog is the cost of corn. That
board further advises that the ratio
of corn prices to hog prices on the av-
erage over a series of years has been
about twelve to one Cor little less)
in the past. .' ~
When the ratio has gone lower than
twelve to one the stock of hogs in
the country has decreased. When it
was higher than twelve, the hogs have
increased. -.
Seeks Normal Production
That board has given it's judgment
that to bring the stock of hogs back
to Normal under present conditions,
the ratio should be about thirteen.
Therefore, as to the hogs farrowed
next spring: We will try to stabilize
the price so that the farmer can count
on getting for each 100 pounds of hogs
ready for market thirteen times the
average cost per bushel of the corn
fed to the hog.
Let there be no misunderstanding
of this statement. 1t is not guaran-
tee backed by money. 1t is not a prom
Use by the packers. 1t is a statement
of the intention and policy of the Food
Administration, which means to do
justice to the farmer"
New Ratio Fixed.
To bring the price ratlo ABOUT the
food administration will throw its full
weight into the market, 1t believes
the price can be maintained through
the full control which the food admin
istration has over the buying of the
allies, the army and navy, the Red
Cross, the Belgian relief and the neu-
trails, the total of which makes a big
factor in the market
This does not mean any consider
able reduction, if any, to the home
consumer, but the food administration
believes it will insure greater hog
supplies In an effort. however to
help out the consumer asatc prices,
the meat administrator plans. to limit
the profit of the packers and the mid
uleman and to eliminate speculation.
The increase from twelve to one
to thirteen to one In the ratio of corn
prices to hog prices was determined
lunop after numerous conferences with