New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-10-13
government Urged
To Fix Maximum
Price on Flour
Experts Agree Federal Ac-
lion Is Necessary to Pro-
tect Consumers
Report on Inquiry
Extravagance of Millers Is
Blamed for Exorbi-
tant Rates
Report on Inquiry
-srelsl Core.pnndencel

WASHINGTON, Oct. 12.-Limitation
,.he price Of -four at the mill and over
- grocery counter is not unlikely TO
:. the eventual result of an investiga-
80, Of the milling industry b. govern
-.,, e.perts. whose preliminary re-
-, is now in the hands Of Food Ad-
illustrator Hoover.
Although the regulation Of the price
ny the government has reduced the
.o.. o. -four 10 the consumer So or 81
. bsrrel since last May. according TO
.,s Food Administration. the govern
~. Investigation shows that -four,
,ors AZ retail now at $40 and Sll bar
- is still urduly high. For the ex-
.-h;.srt price Of -four the report
Names chiefly the eXtravagant selling
Methods o. the mllerS.
~ & IS likely that a scarcity of -four
90, arise. the effective control of the
,rise Of -four is absolutely necessary
Z, order 20 prevent bread riots says
the report
Hopes for Further Reduction
Several associations OF millers are
rrder investigation also, the govern
-,e~- exuerts seeking 10 determine
vbetber prices are fixed by agreement,
!, violation Of the sherman antitrust
lsw.
further reduction IN flour prices
.broygh the new system of license reg
vlstion and milling rules, but the gov
e-rr,ert Investigators agree that ade-
cuate relief can be afforded only by
dying fne maximum price. for which
measure the authority OF congress
would be necessary. Their report fol-
lows:
"First- Flour milling is liquid type
81 roarufacturirc. The investment in
n'art and machinery also is small in
COMPARISON with the volume OF 0usl-
ress and value OF output. As result,
uror- Of few cents per barrel may
make handsome return on the invest
ment in the business.
Uncertainty Causes Liquidation
second Very satisfactory profits
for the fiscal years 1887 are shown
bv practically all Of the mills The
ja,t fiscal year was a record breaker.
Profits Of more than so cents a barrel
and O. so or 80 per cent on investment
appear 90 be common. During july
and August. however, the Northwest tern
millers curtailed production and hqul-
dated stocks on account OF the uncer-
;airt.es of the future. with the result
that costs jumped rapidly and losses
were taken. especially by the com
raries with a heavy overhead. The
Washburn-Crosb Company claims 10
have lost over 100000 in July, and the
P.nsbury Flour Mills Company over
100000. These losses could have been
avoided had more prompt action been
taken on the food bill.
"Third-The information thus far
collected tends 10 show that the plan
for the control Of -four and feed prices
will not work out satisfactorily. The
cost systems Of the flour mll!ers are
generally unsatisfactory and snow
such variance that il is difficult TO de-
termine what their costs and prohts
per barrel of -four really are. The
maximum cost Of IS cents per barre!
allowed for flour is larger than is
necessary for any OF the mills thus lar
seen. Larger depreciation charges, IN
terest on investment and other items
not formerly carried as costs will be
figured as cost items by some mlllers
10 the disadvantage Of others who Will
not do so. The reward to millers who
will take advantage Of the situation
viii be considerable. There is danger,
therefore. that the business integrity
Of the men in the industry Will be un-
derm.ned and the industry itself per-
marently injured
"Fourth-In view of these facts it Is
suggested that the government install
q Uniform cost accounting system for
all -four mills and make d frequent
audit Of their books. or, what is better,
that 10 fix the maximum prices Of -four