Omaha daily bee., 1917-04-22
RIGHT TO FIX COST
IS DISPUTED HERE
Grain Dealers Challenge Gov.
ernment's Legal Authority
to Control Market.
VIOLATES CONSTITUTION

Omaha, one Of the most important
food distributing centers in the Unit
Cd States, sat UP and took notice when
Secretary OF Agriculture Houston rec
commended to congress that the Coun-
c,l of National Defense be empowered
to FIX food prices.
This city is the foremost butter
market in the world, the second
largest grain market and the second
largest live stock market,
Legislation tending to establish
standard food prices affects materially
tie big business interests here,
Leroy Corliss and Charles Harding
declare. that fixing the prices of dairy
products would tend to throw out of
Joint this city's butter and creamery
business amounting to $l0,000,000 an
nually. They intimate that produc-
ton itself would be crippled seriously
by price tampering.
Demand to Be Gauge.
Grain men are unanimous in the
opinion that economic demand will
have far more to do with fixing cereal
prices than any arbitrary standard OF
values the government may try to es-
tablish. Some commission men chal-
lenge the constitutional authority of
the men at Washington to govern the
grain markets by mere decree.
Omaha's grain receipts last year
were 75,l69,l40 bushels. Its ship
ments were 60,8o0000 bushels.
Local packers, whose business in
1916 amounted to Sl4o,768,860, will
calmly abide, they say, by any order
the government makes affecting their
industry. E
This is what representative men in
the dairy, grain and packing business
said:
Must Consider Costs. "
Leroy Corliss, president Of the
Waterloo Creamery company, evapo-
rated milk--I don't see how the gov
ernment can fix maximum price on
any manufactured food without going
back all along the line and fixing the
price of every article that goes into
the production and packing Of that
food, together with the labor costs.
Two years ago our one-pound tin
cans cost us $40 per 1000 Today
they cost us $85 per 1000 Even the
paper labels on the cans now cost us
$l.l3 per 1000, while year ago they
cost us only S. cents. Fibre cases
have gone up 100 per cent, solder 90
per cent. Labor has advanced IS per
cent, Miscellaneous items have ad-
vanced easily 50 per cent.
Milk Is Big Item.
Then there is the big item-milk.
A year ago we paid $l.20 per 100
pounds. Today it costs $2.l5. How
can the government fix the price at
which we must sell our evaporated
milk without fixing the price OF all
the accessories we have to buyf How
can it fix the price of our product
without fixing the price at which the
farmer mist sell il to usl
And the moment it reduces the
price the farmer gets, bing! he will
quit shipping. We in the Creamery
business think the best possible
stimulus to production is the high
prices the farmer is getting. You can
preach production to the farmers till
you're black in the face, but the thing
that will stimulate them to produce
more is big prices.
President Charles Harding, of
Harding Creamery company - The
fixing of food prices by the govern
ment is such an entirely new idea in
this country that ! could not venture
an opinion as to what it. would do to
butter or anything else. II the gov
eminent does fix the price Of food
stuffs, we will all have to govern our
selves accordingly. | should hardly
think the government would do any
thing that would inhict unavoidable
losses upon those in the business Of
manufacturing these products.
The margin of profit for the big
dealers now is smaller than it was
before the high prices came on.
Everything all down the line costs us
more now. Paper cartons for butter
cost 100 per cent more. The loyal
lon cream cans we use are up 100 per
cent, and so on down the line. We
pay much more for the cream from
the farmers, and the readjustment
would all have to get right back to
him.
John w. Redick, publicity agent,
Omaha Grain exchange-No matter
what they do, they can't increase the
surplus stocks of grain and foodstuffs.
1t is now entirely matter OF supply
and demand and there is no longer
any speculative element in cash grain.
This was apparent Friday, when on
the floor OF the Omaha Grain ex-
change cash wheat sold at $40, or
so cents over the May option. This
wheat was taken at this price on ac-
count Of the demand and it was worth
the money. OF course the govern
nent could fix maximum price, but
doubt if price lower than the
actual market value would be taken
into consideration.
Supply and Demand.
]. w. Holmquist, president Holm
quist Elevator company-I don't
think the government will take over
the surplus stocks of foodstuffs.
don't think the necessity for such ac-
ton has arisen, and If it should take
them over, don't see how prices
could go much lower. Right now
prices paid for cash grain indicate
that speculation has been eliminated
and that sales are made on the actual
value OF the commodities.
E. 5. Westbrooke, president Trans
Mississippi Grain company--If the
government fixes the maximum price
At which grain is to be sold and eli
inmates speculation, of course that
would be the price that would main
tain. However, if there should moi
)e the constructive demand, nv iudp.