Evening journal., 1918-02-26
HOOVER REASSURES
FARMERS ON Prices
Fixing Figures on Agrlcul'
ture Products Not Policy
of Administration
Mr.. HOUSTON
is OPTIMISTIC

WASHINGTON. Feb. 26s-General
price-nxing on agricultural products is
not part Of the policy Of the food adj
ministrailon and will not be attempted.
Food Administrator Hoover said last
night 10 a statement designed to reas'
sure farmers opprehensive that the
Government might set maximum prices
on what they have to sell. Mr.. Hoover
said:
There appears to be a great deal OF
misinformation circulated among the
agricultural communities as TO the
policy and scope Of the food admins
iratlOn with relation TO price-nXing.
wish 70 say at once and emphatically
that the food administration is not a
price-nxing body, except with regard TO
certain commodities which are today
dominated by wholly abnormal overseas
commercial relations, and the surround
Ing factors with regard 20 which are
such as to project great dangers, both
against the farming community and at
the same time the consuming commu-
nifty.
"The two commodities under regula-
flon are sugar and wheat. With the
further exception Of cases in which Il
has intervened purely as friendly Inter
nIediary between organized producers
and consumers. the food administration
has no authority and no desire TO fix
prices on the products Of agriculture,
''In wheat we were faced with sim
ele purchasing agency whose proper
tionate purchases TO the whole were
such as 10 dominate the price Any
Inv
officials In limiting their operations
thus becomes absolute price-ilXing, and
II becomes a question whether it would
be dene openly and frankly with our
producing community or done secretly
at the will Of Government officials.
eIn the matter Of sugar, it has been
common business prudence to Join
with the Allies in a definite contract
with the Cuban authorities as 10 price,
rather than leave it 10 fluctuations
which would arise from short supplies
and Irregular shipping facilities.
"The food administration has been
actively engaged in the elimination OF
pro1teering and speculation In the dis
fributing trades by regulation In the
pronts on a pre-war basis. still
greater duty has been the maintenance
of an even course Of food distribution
In these times OF the greatest dislocu-
tlon. The law OF supply and demand
has been seriously interfered with dur
ing the last three months by virtue
of the cumulative irregularity and dis
turbance IN railroad transportation and
consequent delay Of months In market
ing the harvests'
Secretary Houston Optimistic.
Secretary Houston gave out TO the
House Agricultural Committee yester-
day an optimistic view OF the food situ-
alton In the country as whole and
said there was mo need for any hys-
terla over a dangerous shortage OF any
commodity
The Secretary was called before the
committee 10 discuss the bill providing
for extending funds to farmers to buy
seed. particularly in the Northwest,
where much Of the late crop Of grain
contained too much moisture TO make
II valuable for seed this spring lie
gave no opinion on the wisdom Of the
proposal.
Chairman Lever said later he did not
think information given the commit
tee would warrant extending financial
aid 70 farmers for purchasing seed
Representative of the western States
Insist il is essential, however, and
viii light for the legislation.
Coordination between the railway
directorate and the food administra-
ton was believed TO have been arranged
today as the result of a lhrec-quarter-
of-an-hour conference between William
G.. NIcAdoo. director general Of railroads
and Herbert Hoover. food administrator
The meeting held at Mr.. Hoovcrs sug-
gestion, was attended also by Carl Il.
GRAY, director of transportation Ed
ward Chambers. director Of traffic; !;
Walker D. Hines, assistant TO the di-
rector general; all Of Director General
McAdoo's stan. and W. A. Glasgow, Jr,
Mr.. Hoover's legal adviser in the food
administration.
The result Of the conference was the
creation Of a committee Of representa-
tives OF the two departments, which
will work with the single aim Of ex-
pediting all food shipments both do
mestic and for export. The members
named by Mr.. McAdoo are Messrs.
Chambers and Gray C. T. Spens, traffic
director for the food administrator, and
W. C. Kendall, Of the car service COM
mission.
Mr.. Glasgow and J. II. Barnes. Of On,
United States Grain Corporation, are
understood TO be two of the men that
Mr.. Hoover Will name.
HIS TOE CRUSHED.