The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1918-03-05
Statement Issued to Correct
Impression Obtaining
Among Farmers.
NO PRICE.FIxING BODY
Administration Dominates
but Two Commodities,
Wheat and Sugar.


regulation has been issued by Food
Administrator Herbert Hoover:
There appears to be n good deal of
misinformation circulated amongst the
agricultural community as to the pol
icy and scope OF the food administra-
ton with relation to price fixing. l
wish to say at once and emphatically,
that the food administration is not q
price fixing body except with regard
TO certain commodities which are to-
day dominated by wholly abnormal
surrounding factors. with regard to
which are such as to project great dan
gers both against the farming commu-
nifty and at the same time the con-
Stunning community. The two COM
modities under regulation are wheat
and sugar. With the further excep-
tion Of cases in which 1t has inter-
vened purely % a friendly interme-
diary between organized producers ana
consumers-as in city milk the execu-
tive department Of the gcvernment has
no authority and no desire to fix
prices Of products of agriculture.
Reasons Re. stated.
1T seems necessary and desirable to
fe-state the reasons already referred
to by the president which render it
necessary and possible to undertake
control Of the marketing OF these two
commodities. The economic forces
arising out Of the war. which have
neceasitated this action, are In the
main as follows:
Conditions Abnormal.
Il. All OF the overseas shipping in
the world has been placed in govern
ment control and the volume of this
shipping is much reduced. AS con-
sequence there Is no longer any free
play in commercial overseas traffic as
tho governments involved, must desig-
nate what tonnage IL to be assigned
TO each commodity and each class OF
traffic.
=. Inasmuch as normal commercial
overseas traffic has broken down, II
WINS necessary for the allied govern
ments in Europe to set up single agen-
cies for the purchase of the whole OF
their food supplies from abroad. OF
American wheat their purchases are Of
sufficient volume to control the price
aesad this eisrthe only Agricultural com.
modify where this maintains.
q. In the face of a necessary duty
to reduce our consumption of food--st
badly needed by the allies--it has beer
absolutely necessary to arrive at al.
vision of these two commodities In thu
common interest OF the war; and I,
control the reduced supplies internally
in order that all may be treated alik,
rich and poor-and this implies
control Of distribution and price.
Effect on Wheat Products.
Having established the basic pric
OF wheat. the food administration ma
followed 1t through the manufacturin
and distributing trades with limita
tions as to the profits to be earned i
distribution and has thereby brough
this prime commodity to the door Q
the conmmer at the least possible ex
pense and at margin between pro
Queer and consumer less than norma
Tie same situation confronts III
American farmer and the America
consumer In wheat for the next har
vest year.
TN the matter of sugar. the sam
economic forces are in action to dis
place normal traffic. except that 1
this case the American people are pur
chasers abroad of the large portion G
their supplies and that. in additio
to the necessity of governmental &C
tion To secure q fair division Of tn
available sugar to the American PEG
pie, It has been common business pru