New-York tribune., 1918-09-14
Cotton Price
ToBeFiixed,
If Necessary
President Wilson States
War Industries Board
Will Direct Investigation

WASHINGTON, Sept. 13.-President
Wilson announced to- day that a fair
price for raw cotton will be fixed, if
that should be deemed necessary, after
the committee to be appointed by the
War Industries Board has completed
its inquiry into the general cotton
situation.
During the investigation a separate
committee of three. soon to be named
Will buy cotton for the use of the
United States government and the AL
lies at prices to be approved by the
President. Since most of the cotton Of
the country is required for war uses,
this government buying is expected to
stabilize prices.
The President said that the purpose
of the investigation to be conducted by
the committee to be named by the War
Industries Board is to devise methods
for broadening the channels of dis
tributlon and use Of the great stock
of low grades of cotton now practically
unmarketable, for eliminating specula-
tion and boarding, and for npporton-
ing foreign orders.
President Wilson's Statement
The Presidents statement follows:
The demand for high grade cotton,
which is out of proportion to the avail
able supply, and the fact that the gov
ernmcnt, through early agreements
with the Allies. must act as a common
buyer for Allied purchases, make it
necessary to secure some basis of dis
tribution of all grades of cotton. Based
on the standard grades established by
the Department of Agriculture, an eff
tort viii be made to provide way by
which the low grade cotton will be
brought to sale and use along with the
high grade cotton at reasonable and
just prices.
ut is believed that by this course
both the producer and consumer viii
be better protected than by continual
ton of the present chaotic conditions
of the market
"Ihe plan is to create. subject 10 the
approval of the President. cotton
committee to devise methods for (a)
broadening the channels of distribution
and use of the great stock of low
g1ades now practically unmarketable,
CD eliminating speculation and hoard
ing and (c) apportioning the foreign
orders.
at may be part of this committees
duty to recommend basic prices on cot
ton. If. after investigation, it is found
necessary, fair price will be fixed
During the investigation and in or
der to avoid stagnation a separate COM
mlttec of three is being set up with
authority to buy cotton for the use Of
the United States government and the
Allies, at prices to be approved by
the President"
Price-Fixing Opposed in South
The Presidents statement, it was
explained. was issued to "avoid misin-
terpreta.ion' OF statements by the War
Industries Board concerning the stabil-
lzation Of the cotton industry. Price
fixing of cotton has been vigorously
opposed by Senators from Southern
states, who have had several confer
cnces with Chairman Baruch of the
board. They contend that the law of
supply and demand should continue to
govern the price
Decision of the President and the
War Industries Board to investigate
The cotton situation followed closely
the recent announcement of the De-,
partment of Agriculture that drouths
over the belt in July and August had
reduced the probable yield from tho
estimate of about 1926 900 bales to
il $4,000 bales. After this forecast
was published the price of cotton rose
$40 bale on the principal exchanges.