Arizona republican., 1918-04-13

will go through cratic periods Of dls- couragement and of stimulation which | must undermine any systematic policy | of national or individual increase in ! production, for every period of dis | enlargement cuts off production of i animals, which can not be recovered.
 The Other Alternative
 (b) To continue as at present | the direction of these large pur-
 chases with mixture of partial
 national policy in production and day to day dealing with emergency. This is an almost intolerable situa | tion for any government official in criticism from both producer and con- sumer and with the growing volume of purchases this criticism must in- crease. It permits of no constructive policy in production.
 (c) To stabilize prices based
 upon cost of production at fair and stimuIative profit to the pro-
 ducer and with stabillzation to
 eliminate speculative risks and
 wastefuI practices and thus some
 gains for the consumer.
 If such a policy is adopted it also follows that it will have most inn portant bearing on and relation to policies of agricultural production and a long view can be taken and sup ported in assuring the producer of fair returns.
 Course Fraught With Danger
 This course is also fraught with dangers. It leads either to voluntary agreement with the packers as to price to be paid producers and charged to consumers from time to time or, to actual operation of the packing plants by the government. In either case the government will need to take some if nancial responsibility in speculative business. In such a situation the gov ernment will be under constant press ure from the producer for enhancement of price and from the consumer for reductions. It necessitates the con- stant action of a commission to de- termine such prices. It will mean that all the complaints of trade fall upon the government. The choice of alter natives is one of determination of the maximum contribution to winning the war and the choice of the lesser eco- homie evil between such alternatives.
 4. The legal ability of the govern ment to give authority to such meas ures lies in the power to direct con- tracts for war necessities, to take over and operate plants and to make volun tary agreements to carry out a defln- itive and constructive policy. When purchases are so large as to cut into civilian consumption, it becomes pos sible to insure manufacturers a com- plete market, thus eliminating thelr risk and thereby eliminating some of the margin that they must take in the conduct of a speculative business and it also gives sound reason Tor dlrect- ing their policies
 Not Matter Price Eixind
 ,. For these very reasons it has been necessary to set up partial or complete arrangements of this char acter in iron, steel, copper, explosives, wheat, sugar, and some other com modities None of these arrangements have evolved out of any governmental policy of price fixing, or any desire to | interfere with the operation of natural trade laws, but are simply the result of the government being forced into the issue of becoming the dominant purchaser and thereby, willingly, or unwillingly, the price determlner In particular commodities.
 We have been struggling as intel | igently as possible with the situation in the meat industries with entire in adequacy of definite national policy. Our purchases hithertoo have been suf- ficient to influence the market at times and in the case of pork products have been sufficient to preserve minimum price. We have been however, power | less hitherto to properly protect all | branches of the cattle industry with 1 it's constantly changing economic sit uation or to give intelligent direction | or assistance to cattle production. As you know I have never felt that when we arrived at a point to determine the l broad policy with respect to a commod itv that this should be determined at the option of any single individual no matter how sncere and earnest the application of intelligence might be.
 Board to Study Situation | l would therefore like to recommend to you to extend the policy which you have already initiated in the matter of many commodities, by early ap- pointment of a board to study the en- tire situation with regard to the meat industry and the steps that should be taken with regard thereto. 1 would suggest that, following the precedent that you have already established, 8 committee should be set up embracing either the following gentlemen or theil delegates directly responsible to them:
 The Secretary of Agriculture as rep resenting the producer.
 The Chairman of the Federal Trade Commission as representing trade con- ditions.
 The Chairman of the Federal Tariff Board as representing economic thought.
 The Secretary of Labor as represent ing the civilian consumer
 The Food Administration as having to carry out any given policy deter mined upon.
 The commission should at once ex- haustively consider the entire situation in all of Is aspects and determine { positive national policy in. meats.
 I apologize for writing at such lengtl but the subjects permits of little brev. ity. l am
 Your obedient servant,
 (Signed) HERBERT HOOVER His EXcellency
 The President of
 the United States,
 Washington, D. C.
 Presidents Acts in Matter