Sequachee Valley news. (Sequachee [Sequatchie], Tenn.) 1896-1952, 1918-08-22
MILLS CAN NOT BEAT
DOWN WHEAT PRICE
INTERESTING STATEMENT ~
SUED BY STATE FEDERAL
FOOD ADMINISTRATION.
SOME MILLS DEAL UNFAIR
In Certain Sections Reports Claim
Some Mills Have Used Their Al
vantage to Lower Price Of Wheat
Goernnnent VIII Not Tolerate ThI&

Nashville, Tenn.-Although the gov
eminent, through the cereal division
Of the United States Food Administra
ton, now allows the mills to pay
whatever they desire for wheat. th'
price of flour and mill feed being alb
solutely fixed, the Federal Food Ad
ministration in Tennessee Ia deter
mined that the mills shall not by rea
SON of this fact, beat down the prics
Of wheat and make unreasonable and
excessive profits in the sale of theiI
products.
The following statement has been
issued by the Federal Food Admins
tration of Tennessee:
"Under the present plan Of mil
control, which has been in effect
since July /, the mills are not longer
restricted In the price which they
can pay for wheat or In the territory
in which they may purchase It. They
must, however, sell their flour and
wheat mill feed at not exceeding ar
bitrary prices that have been fixed
by the Food Administration. These
prices are based upon the guarantees
price Of st. Louis wheat with the
carrying charges therefrom to the Ten
nssses mills added, less, Of course.
the cost of inspection, the carrying
charges and service performed In
handling the wheat. The prices ct
which mills are permitted to sell their
products. based on these wheat prices.
will return them fair and reasona.
bic profit. More than that they are
not entitled to receive and will not
obtain II the Food Administration
must exhaust all Of Its powers to pre-
vent 1t.
"It has come to the knowledge Of
the Food Administration that in Ger.
tain sectiona. some mills have used
their advantk BE to beat down the
price Of wheat, that Is they have not
paid the fair wheat price established
by tho government, but on the other
hand have sold their products at the
full prices fixed by the Food Admin
istration. This will not be tolerated.
Such course will return to the mills
following 1t, unfair and excessive prof
its. We are now sending out to every
wheat mill in the state QUESTIONABLE,
in which they are asked to state the
price at which they have purchased
No. wheat since July 1, and the
,vlo ~ xuhf III.
ing flour and wheat mill feed. When
these questionaires are returned the
Food Administration will then know.
Just what the mills have been doing
and where we find mills that have
made unfair profits due to unreasona-
bly, low prices paid for wheat. they
will be forced to disgorge the sxces-
sive profits.
1.-THE mills all know the prices at
which they are expected to buy wheat
based upon the fair selling prices Of
their products. 1t has been reported
to the Food Administration that in
some instances the mills, having
bought their full thirty days supply
Of wheat, are reducing the prices
which they are offering farmers. In
such cases the farmers should be slow,
very slow, to sell unless they are rea-
sonably certain that the price offered
is fair price. OF course the farmers
could not afford to hold their wheat,
pay insurance, storage, lose rattage
and shrinkage for cent or two
bushel, but il the difference is too
great the Food Administration does
not believe that they will lose by car
rying their wheat little while
longer
Generally speaking and having in
mind that the freight rate from st.
Louis Is not the same to all points in
Tennessee, making some exceptions,
It is the Judgment Of the Food Admin
istration that less than 1925 per
bushel for wheat that grades No. 2
would be an unreasonably low price
At which mills should buy, and wheat
Of that grade bought At less price
would return to the mills, in practical
ly every case, an unfair profit. where
the product is sold at the fair price
schedule established by the Food Ad-
ministration.
1.-THE Food Administration Is deal
ing fairly and justly with the mills. A
large majority Of them reciprocate
this treatment and are dealing fairly
with the producers, but all Of them
must do so. A contrary course could
not fail to have serious effect upon
our big drive to increase product. I'm
fair treatment OF the producer would
discourage the big Liberty wheat
crop for which our nation has sD-
pealed.
I'VE are sending to the county fosd
administrators the names OF the wheat
millers in their counties. together with
the fair prices at which they will DO
permitted to sell their product. Per
sons who are dissatisfied with the
,ricesr charged by the millers. or who
ave reason 20 believe that they are
excessive, should communicate with
their county food administrators"