Evening journal., 1918-06-25
Price OF FLOUR
IS NOT TO ADVANCE
Hoover Makes Known That
There Will Be Little
or No Change
WHEAT TO CONTINUE
AT $2.2O. A BUSHEL

WASHINGTON. June 25.-Herbert
Yooyer has outlined the food admin
lstration's new plan for handling the
,oming wheat crop and made 1t plain
>hat little or no change might be eX-
bected in the cost OF flour 10 the con-
sumer despite the fact that many OF
lhe restrictions now thrown about the
nillers and grain dealers will be re-
moved.
The Governments guaranteed price Of
wheat to the farmer based upon 81 20
bushel at Chicago will remaln ylr-
iually unchanged. Any adjustments in
this basic price as made TO millers and
dealers will be made TO meet the in
creased freight rates effective today
and will vary only two or three cents
shove the present basic prices.
Under the new plan millers will be
allowed a deferential OF Sii0 a barrel
between the price Of wheat and -four
instead Of the profit Of % cents a barrel
now permitted. In computing the
deferential OF sii0 millers will include
their feeds and the by-products Of the
industry.
There will be little rationing or allOt-
ment OF wheat in handling and dis
tributing the new crop, which means a
lreer movement OF wheat and flour,
with a return TO something like the
competitive conditions existing before
,he war.
Food experts believe the defereniisl
price will not materially affect the
present -four costs, although the millers
operating under the allowance will have
a greater latitude than heretofore in
varying their prices
The restoration OF a system Of freer
movement Of grain, however, will have
no effect on Government control OF
supplies 10 the Allies and the holding Of
surplus stocks deemed essential by the
food administration. The United States
grain corporation, expanded by eXecu-
tive order from a sJ0,OO0,OO0 concern TO
one with a capital stock Of Sij0,000,000
will retain full authority.
First. TO enable the food adminis-
tration TO make the necessary read
iustments In wheat price to cover the
increase in railway rates. The inten-
tiOn IS. so far as the complex problem
Of railway rates will permit, to read
Just price at the guarantee terminals
on such a footing as TO place the farm
er In the position. as near as may be,
he enjoyed prior TO the increase in
rates. A traffic committee is at present
working on the problem and II is hoped
that definite announcement Of the new
changes will be possible within a few
days.
The second purpose Of the, Presidents
executive order was TO provide for the
increased capital TO the grain corpora
tion necessary TO carry out the Govern
ment guarantee to the producer. The
food administration operates its hand
ling OF wheat. flour and other cereals
through the food administration grain
corporation, the capital OF which dur
ing the last year has been sJ0,O00.0O0,
the whole OF the stock being owned by
the Government The full appropriation
under the food bill for this purpose Is
Si5O,OOOOO0 and the balance OF the cap
ital must now be employed in order to
make good the guarantee, in view OF
the large harvest. The grain corpora
ton will on July have completed its
Operations for the last harvest year
and will show its original capital in
tact, with a small surplus, as the re-
suit Of its trading operations. The turn
over Of the grain corporation during
the year I'm wheat, flour, beans and
other products purchased for internal
and Allied army and navy purposes was
about si5O,OOO,OOO