The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-05-16
GRAIN MEN END
WHEAT BUYING
Purchases Permitted Only
for Purpose of Closing
Accounts.
MAXIMUM PRICES FIXED
Chicago Conference Acts to
Stop All Speculation
In Cereals.
MAXIMUM PRICES FIXED

CHICAGO. May 15.---Action which. 1t Is
said. will remove the element OF specula-
tlon from the grain market and which, it
is believed. will forestall any steps by
the Federal Government was taken here
to-day at a meeting OF representatives
OF the primary grain exchanges OF the
country. II was accomplished by fixing
or under which sales may be made, but
no buying will be permitted except to
close out accounts No trading in May
options OF wheat, corn or oats is per-
mitted except to close deals.
The same principle was extended to
July and September oats and corn,
but action was not taken. as 1t
was held unnecessary at this time.
The delegates simply agreed to extend
the embargo IL necessity arises. Grain
prices were lower to-day.
FIX Blame for Prices.
Milling interests were represented at
the meeting and the grain exchanges OF
Chicago, New York. Toledo. Winnipeg.
Minneapolis, Kansas City. Omaha aHd
ST. Louis. Tho following statement OF
the proceeding was issued:
1T Is the consensus OF the representa- =
tives OF the various boards OF trade and
chambers OF commerce assembled that
the unusually high prices are due:
81. To tho abnormal production OF
grain and foodstuffs generally the world
over during the preceding year and tAe
very unfavorable outlook for the grow.
! ing crops as forecast by our Agricul-
! tural Department.
90 To the breakdown in tho system
OF distribution because of the inability
or railroad companies to render normal
or eHcient service. the relation Of sup
ply TO demand being 80 close that ex-
tremely good facilities should have been
available when in fact the railroads
never In their history rendered a service
, 80 low in efficiency.
20 With over half the world at war
the demands from all importing coun-
tries are abnormaliy high. This, intensi-
fed by our own Industrial activity. nat
uraily has increased the demari for
| foodstuffs.
y. To the very commendabie efforts
, OF the officials at Washington to stlmu-
late production, which have been mis-
, interpreted not only by our own people
but by foreign Governments as meaning
mat We were in a condition bordering on
isliiiie' natural conGitlonS admitted of
high prices. but the hysteria is abso-
lutely responsible for the inflated values
/ now prevailing.
Present system IL Upheld.
! While these extraordinary conditions
have temporarily dlsarranged our grain
markets, 1t Is the unanimous opinion
/ that the system OF handling grain in the
usual course through boaris OF trade
and chambers of commerce is the mos;
I economical OF handling the business. and
while speculation mas been more or less
prevalent II has little TO do with presen;
| conditions 1t must be remembered that
/ these great market places are the de.
velopment Of thousands OF years OF ex.
perience and are the only known means
| of distributing farm produces OF this
country. and until better substitute has
been advised their operations should no,
! be !nterfered with
THE action OF the directors of the
! Chicago Boarl of Trade and the othe,
exchanges in fixing the maximum price
of wheat and the restrictions limiting the
! buying to the closing up OF existing con.
tracts has been unanimously approved By
the delegates and representative miller,
assembled and action has been taker
| continuing these maximum prices ant
restrictions until further notice.
! Exchanges are also prepared 10 TAX,
/ similar action with regard to corn anf
! oats should necessity arise"