The Washington herald., 1918-04-01
PLAN U. S. CONTROL
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mean the elimination of that part Of
| the community that could least afford
! to pay more. His letter reads:
Dear Mr. President:
'I feel that we have reached a posi-
ton with regard to the whole meat
industry of the country that requires
a reconsideration OF policy. The sit
uation is one of the most complex
with which the government has to
deal, by virtue Of the increasing in
fuence that the government purchas-
ing has upon prices, by the necessity
of providing for increasing supplies
for the allies, and the consequent re-
duction Of civilian consumption and,
withal, the due protection of the
producer and the civilian consumer.
This change of policy may take the
form Of more definite and systematic
direction Of the larger packers as to
the course that they are to pursue
from month to month. or may even
take the form of operation Of the
packing house establishments by the
government.
''The general economic forces bear
ing on the situation appear to me to
be:
81. The allied purchases for both
civilian and military purposes in
meats, as in many other commodities.
have been consolidated by necessity
of shipping conditions and by neces-
sity of the Treasury arrangements for
advances to the allies until private
trading has been of necessity elimi-
mated.
1T is also becoming necessary for
the government to coordinate these
purchases with those of our army
and navy in order to prevent conflict
in the execution of orders. This great
consolidation of buying has, to some
extent and will increasingly. domi-
nate prices.
President Approves.
I'VE have, since last September,
recognized that the export purchases
Of pork products would affect prices
and after consultation with important
committees Of swine growers we last
autumn gave a rough assurance to
the swine producer of a minimum
price which we felt that we could
maintain from the export buying. and
this has been maintained although
! with considerable difficulties and has
been beneficial in stimulating produc-
! tion. The indications are that these
purchases will now be. further in
creased.
The beef purchases have not, up
to the present time. been sufficient
in volume to more than temporarily
affect price. but the present indica-
tions are that for some time in the
future they will be greatly increased
and to a point where they may af-
feet prices materially.
20. The increased quantities re-
quired for export must be obtained
by either increased production or
by reduction in civilian. consump-
tion-probably by both"
Mr.. Hoover recommended the
members OF the commission, all of
which President Wilson has ap-
proved. There Is a trong following
for government control of the pack
ing interest in the Federal Trade
Commission, which some time ago
submitted a report recommending
the taking over of the business by
the government. Recent investiga-
tion into the high cost of living
being done by Francis ]. Heney for
President Wilson. 1t is believed, will
also play very strong part in
what ever recommendations the
Commission may make. Mr.. Heney
has contended that the packers are
at the bottom of a grent deal of
the trouble.