Phoenix tribune., 1918-11-02

decide. From different aspects,
Minnesota, South Dakota, Texas and
tennessee all enter for the other two
fact, the committee was referring
the corn belt OF which Texas lies
outside and only has place here by
heer size. From various aspects it
ppears to me that everyone would
lgree that South Dakota and Mime
sofa more nearly conform to the COM
nittee's definition than any other,
specially if we weight the relative
factors. have, therefore, adopted
these states.
"In accordance with the commit
lees recommendation we will issue
Instructions to the packing firms,
bout so in number, who participate
in controlled orders, effecting so far
IS these orders will go the stabiliza-
lion of price on these lines.
you will recognize that this should
De effective as long as the controlled
orders dominate the market. If they
'all short of this it will be necessary
to rely upon the packers carrying in
stock any surplus pending absorption
Oy the controlled orders or general
consumption.
This was accomplished last winter
under difficulties, and a break below
he minimum was prevented.
Faithfully yours,
(Signed) "HERBERT HOOVER.
The Hon. Henry C. Stuart, Depart
ment of Agriculture, Washington,
D. c."
The Agricultural Advisory Boards
recommendation were embodied in a
report of a special subcommittee made
public last Thursday. This commit
ices report was as follows:
The committee has been asked by
he Agricultural Advisory Board to
meet in conference with the Food Ad-
ministration in consideration of the
commercial methods to be pursued by
The administration in the interpreta-
ton of the policy outlined on Novem-
Der 1917, with regard to the price Of
hogs, which was as follows:
THE prices, so far as we can effect
hem, will not go below a minimum of
about $3.50 per hundred weight for
the average of packers droves on the
Chicago market until further notice
Il AS to the hogs farrowed next
spring Q91S) we will try to stabilize
the price so that the farmer can count
IN getting for each 100 pounds of hog
ready for market, Is times the average
cost per bushel Of corn fed into the
hogs. Let there be no misunderstood
ing of this statement 1t is not a guar
antee backed by money 1t is not
promise by the packers. 1t is a state
ment of the intention and policy of
the Food Administration, which means
0 do justice to the farmer"
The recommendations of the COM
m'ttee were.
, Q) 1t is recognized that the Food
Administration has no power to fix
the price CT hogs or corn, and can only
influence the hog price so far as the
volume Of controlled orders for the
army, navy, allies and export trade
will absorb the surplus production. If
prices should go so high as to curtail
consumption at home and abroad, then
in this event the stabilization of prices
during the next winter would be like
ly to fail, with disaster to the pro-
1ucer. On the other hand, it must be
recognized that the costs of produc-
icn are necessarily greatly increased
and that to maintain production fair
returns must be assured to the farmer.
t is, therefore, in the fundamental
interest Of the producer and consumer
hat both extreme high and low prices
should be guarded against.
(2) In order to effectually carry out
the above policy of the Food Admin
istration, it is recommended that in
dealing with the packer in respect to
the coordinated purchase of pork prod
ucts that directions should, if neces-
sary, include a definite price basis
in advance from month to month fer
the packers, purchase of hogs, upon
which such orders will be based.
(9) 1t is recommended by the CON-
mittee that the average cost per
bushel of corn" for the purpose Of de-
termining the price of hogs be consid-
cred as the average farm value of
corn,S or the average selling price of
corn at local railroad stations, as de-
termined by the Department of Agri-
culture, and that the general corn
figures may be arrived at by taking
these averages and weighing them
according to production over the eight
leading hog and corn producing states
for a period of five months preceding
the month the hogs are marketed, or
prior to the month for which the di-