The Watertown news. [volume] (Watertown, Wis.) 1917-1919, 1917-06-20
$25o,oOo,00o IS
THE LOOT OF THE
FOOD GAMBLERS
H. c. Hoover Tells Senators of
Quarter-BiIIion Grab by Spec
ulat0rS in Five Months.
HIGHER PRICES NOW ON way
Predicts Allies Demands Will Be In
creased Next Year and U. S. Can
not Supply More Than so
Per Cent of 1t.


not Supply More Than so
Per Cent Of 1t.
Washington. June 20-Food specu-
lators have been taking $50,OOO,OO
month for the last five months-a to-
tai of a quarter of q billion dollars
from the American people, Herbert c.
Hoover told senator's in explaining the
purposes Of the food control bill now
before congress.
Allies Need More Next Year.
Mr.. Hoover outlined broadly the
question Of prospective food supplies,
Despite the reduced consumption OF
the allies they will require larger
amount Of cereals next year than ever
before. The allies are more isolated
In food sources. It takes three times
the tonnage and double the trouble to
get Australian wheat. Crop failures
In the Argentine give no hope Of re-
lief from there before next spring.
'The allies are dependent upon
North America for the vast majority
of their food imports. We should be
able to supply 60 per cent Of what
they require. The other 40 per cent
must be made up by further denial on
their part and saving on ours. We
can increase our surplus. The situa-
ton for them next year means In
creased privatiOn. Without an ade-
Quate food supply no European popu-
lation will continue to fight and we
shall find ourselves alone against Ger
many.
Russian Revolution Food Riot.
1.-THE Russian revolution was a food
riot and even yet that ally is tenn
porarily paralyzed. Responsibility
rests on our government for failure Of
democracy through a shortage of
food.'
Mr.. Hoover cited the canning trade
as an example where the entire output
of vegetables and fish for 1917 has
been disposed of before it has even
reached the Gamers. He predicted
further high prices. Thousands of
men, he said, who heretofore have nev-
er owned a dollars worth of foodstuff
Lower Prices Under Regulation.
Mr.. Hoover denied that the bill es-
tablishes food dictatorship. He char
acterized the purposes of food admin
istration to mobilize the people in or
der to carry out the advice given them
by the government officials and to de-
centralize the functions Of the admin
istration In order to centralize the
functions of the food administration
in the various states.
A commission to take charge of pro-
duction and distribution of flour, su-
gar, and possibly a few other principal
commodities, Mr.. Hoover said, Is con-
templated.
"Provisions for the government to
buy and sell commodities will be neces-
sary for use only as to a very few
prime commodities" he said 1.-THE
aim is to stabilize prices and thus eli
inmate speculation. The balance
wheel for stabilizing prices is gone.
We need an artificial balance wheel.
By setting up q wheat commission we
can buy wheat, regulate it's storage
and transportation and handle it un-
til exported or sold In this country
If we do not do this wheat prices may
relapse on account of our not being
able to store and carry it, with spec
ulators securing the sole benefit and
farmers bearing the loss'
Flour Should Be SO, Is $14.
with righteous manufacturers and
distributors prices" he said. "the
price of flour should not have been
over So barrel. Yet it averages S14.
In the last five months $25OOOO,OO
has been extracted from the American
consumer in excess Of normal profits
Of manufacturers and distributors"
Senator Reed referred to a section
which he contended would permit the
government to take from cribs and
bins grain stored there in excess of
the amount actually needed by the
farmer and asked Mr.. Hoover's opin-
ion regarding the enforcement.
"As far as | am concerned, would
not attempt to execute it as far as the
present situation appears" replied Mr..
Hoover.
Mr.. Hoover also said the food admin
istration had no desire to regulate con-
sumption of food, as is being done
abroad, saying that would be left to
the voluntary will of the people.
Senator Gore asked Mr.. Hoover If he
would deny to the farmer the right to
judge the amount Of crops he should
grow.
IF the government guarantees a
minimum price, Mr.. Hoover replied,
1--WE might not get the beneficial result
for the farmer unless we also have the
power to limit imports"
Mr.. Hoover said possibly" the bill