New-York tribune., 1917-12-12
New Body of Four Mem.
bers Given Farreaching
Powers
To Unity Purchasing
Will Deal Direct With Pro-
ducers and Consumers to
Suppress Speculation
lStdf Correspondence

WASHINGTON, Dec. 1l.-Food pur-
chases for the army and navy and the
Allies will be negotiated by Food Pur-
chase Board created here to-day by the
Joint action of Food Administrator
Hoover and the Secretaries Of War and
Navy. The new purchasing board viii
be composed of W. V. s. Thorn, chief
Of the division of coordination Of pur-
chases of the food administration, who
represents Allied and other controlled
buying; Major General Henry u.
Sharpe. L. s. A., quartermaster general
of the army; Rear Admiral Samuel Nc
Gowan, L. s. y, paymaster general OF
the navy, and f. J. Scott, representing
the Federal Trade Commission.
The Food Purchase Board held It's irst
meeting. this morning in the ofices oi
Mr.. Hoover and elected Rear Admiral
McGowan. Of the navy, as chairman
and G.. {. Babcock, OF the food admin
istration, as secretary.
The following principles Of organi'
zation were adopted:
|. The demand for certain food com
modities by the army, navy, neutrais
Allies and civil population is greateI
than the supply of such commodities
2. One of the fundamental purposes
of the food administration - 10 pro
tect the above groups from eSoroitan'
prices.
3. The shortage of supplies and thC
aggregation Of buying in such large
units have effectually suspended tne
law OF supply and demand as an ell,
fectual regulator of fair prices and
have stimulated speculation.
Fourth-The normal purchase of these
commodities in such large units under
these circumstances by bid and con-
tract is not only impossible in some
cases. but, in any event, raises the gen.
eral price level of the country and
stimulates speculation. ..
FIfth-It is considered that it is vital
to the general welfare that these large
purchases in certain commodities shall
be made by plans of allocstion among
sellers at fair and just prices. The
efforts of the Federal Trade Commits
sion are to be directed to see that cost
statements are not inflated.
Regular meetings will be held every
Tuesday at 10 a. m. to coordinate the
buying of certain food commodities for
the army. navy and the Allied govern
ments and other controlled buying.
"The functions of the Food Purchase
Board are farreaching," the food ad-
ministration announced tonight, the
plan being to so coordinate the pur-
chasing as to place it strictly on an
official basis and to disturb as little as
possible market conditions, having due
regard for the interests OF the pro-
ducer and the consumer, as well as our
fighting forces and those countries
which arc dependent upon us for their
supply OF food.
"'Ehe. Food Purchase Board will de-
eide which commodities are to be placed
in the category Of 'allocated purchases
the method of negotiation and the prin-
cples of purchase to be followed In
each instance.
Each such trade shall be brought
into conference and negotiations and a
plan for dealing with such trade agreed
TO by the parties concerned.
"When the plan is agreed TO, the
Federal Trade Commission shall deter
mine the costs as per the direction Of
the President, and the Food Purchase
Board shall recommend prices to the
army or navy, as the case may be-"