Arizona republican., 1917-08-13
FUR CONTROL
 IF F00[)
Republican A. p. Leased Wirel

WASHINGTON, Aug. 12.-The food administration announced tonight its plans for controlling wheat, flour and bread, revealing that the government is prepared to take over the whole 1917 wheat harvest if necessary to conserve the supply, obtain just prices for America's fighting forces and their allies and reduce costs to the general public in the United States.
 Establishing of buying agencies at all the principal terminals licensing elevators and mills, fixing of price to he considered fair, regulation of the niddleman and of grain exchanges with the elimination of trading in fu- lures, are the chief features of the plan. The licensing will begin Sept. l.
 The minimum price of s2 fixed by congress does not become effective un- til next year but the administration proposes to exercise a very thorough control over this years crop through powers conferred under the food and export control bills.
 Following is the administrations an- nouncement:
 The disturbance to the world S commerce and short supplies has caus- ed greater disruption of the normal markets for wheat than any other cereal.
 ''1. As a result of the isolation of certain of the worlds wheat produc- ing countries by either belligerent lines or short shipping, the normal de- termination of the price of wheat by the ebb and flow of commerce is to- tally destroyed.
 "2. In order to control speculation and to secure more equitable distribu- tion of the available wheat and flour hot I1aiv t,-ia tIo oJli ernments have placed the whole pur- chase of their supplies in the hands of one buyer. Also the European neu- trals are buying their wheat through single government agents instead of , in the normal course of commerce. Therefore the export price of wheat and flour, and thus the real price, if not controlled, will be subject to al most a single will of the foreign pur- chaser.
 B. In normal times, American wheat moves largely to Europe in the fall months This year the shortage of shipping necessitates it's distribution over the entire year Therefore there is danger of great glut in our ware house system over a considerable period. %NG
 "A. fhere are large stocks of wheat which cannot be drawn upon by the allies during the war, but in the event of peace or defeat of the submarines these would be available and might seriously demoralize the demand for American wheat.
 "5. It must be clearly understood that the guaranteed minimum price of $2 per 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 conditions 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 eff ficient government action is brought into play either (a) the American producer may face a 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 a single agency. (c) Some one must buy the surplus wheat at any given moment and if the sur plus passes into speculative hands it will be held for higher prices later in the year. (d) With stabilized prices extra hazards are introduced into all distribution links which must be paid for by the consumer. It must be evil dent that the United States govern
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