The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-06

of controlling and reducing costs.
Licensing Is possible to a large ex-
tent under the food control act. but II
Is understood that Administration
leaders regard broadening of these
provisions as necessary to give the
results desired.
The Administration programme re-
suited from two conferences to-day.
The subcommittee composed Of Direc-
tor-General Hines. Chairman Colver OF
the Federal Trade Commission and As
sistant Secretary Of the Treasury Lef-
fingweil reported to the Cabinet con-
ference In the once Of Attorney Cen
eral Palmer this morning.
The conference was In session sev-
eral hours. 1t was attended by the
Attorney General. Secretary of the
Treasury Glass, Secretary Of Agricul-
ture Houston, Secretary of Labor Will
son, the Director General, Chairman
Colver and Assistant Secretary Left
fingwell. julius H. Barnes, head Of the
grain corporation; Assistant Attorney
Geperal Ames, Gov. Harding of the
Federal Reserve Board and District
Attorney Cline Of Chicago.
nv ANPbht Weo ~
proved in full. IT is understood. and Mr..
Palmer carried 1t to the White House.
Contrary to general belief. the Cabinet
meeting did not take UP the high cost
OF living or the railroad questions.
From the time the Cabinet adjourned
until after o'clock Mr.. Palmer was
closeted with the President. When he
left the General said:
The conference on the cost OF liv-
ing prepared. and submitted
memoranda of an advisory nature for
the President, In which was stated
what the Government Is doing and
what 1t proposes doing under existL
ing Law and some suggestions as to
additional law that Is regarded as
necessary to cope with the situation.
The new legislation will be defined to
Congress Immediately.
The Department of Justice Is using
all of it's great machinery seelSins out
vioiators of the penal sections of the
food control act. We are investigat-
Ing to the limit of our powers now,
and we hope that the action taken
will teach them a saiutary lesson,
Penal Statutes Invoked.
Mr.. Palmer explained that prosecu-
ton for food law violation fell naturally
TO the Department Of Justice because II
was the Departments duty to enforce
the criminal law. The penal provisions
Of the food law are those covering hoard
ing, pronteering and conspiracy to limit
the supply Of food. ..
In answer to a question the Attorney
General said the Investigations outlined
were not confined to the food control
act but the sherman law and the Clay
ton act as we'll. Further Questioned oy
The SUN he said they extended to al
basic industries.
Mr.. Palmer indicated that the Depart
ment was prepared TO move rapidly al
were all other forces ana agencies o.
Government cooperating. .i.'
After his conference with the Attor'
ney.General, the President saw Julius IL
Barnes. 1t is understood that whea'
and bread subsidies and the licensing
system were discussed.
The Cabinet conference gave much
time to-day to a discussion of wheat and
-four subsidies. Doubts were cast or
the efficacy of a wheat subsidy, because
the market price for wheat is higher
than the guaranteed price. 1t wal
brought out, 1t is understood, that
stopping Of exports probably wouie
change this situation. in view OF ths
tremendous crop that is being marketed
flour SUBSIDY Coustoefee-
" in known that Director-Genera
Hines and his associates In the Foot
Administration have given serious
thought. however, to a hour SUBSIDY
which would in effect be q bread SUB
sidy resulting in cent loaf. To &C
conaciish the cent loaf the Grain Cor
poration could buy wheat at the guar
anteed price and then sell It to millers
who are under license and whose prices
are under control, for half the cost o.
guaranteed price. This would cut thu
price Of -four and bread In half. Est
mates of how much this would cost tn
Government have been prepared, but ar
not available at present.
Consideration also was given to wa
imitation in It's effect on living and othe
costs, and 1t IL understood that Gov
Harding presented the views OF the Fed
erai Reserve Board in this regard
Much credit expansion and tnffatioi
was due to the heavy war borrowing o
the Government Financial suthoritie
are agreed that the only course Of defia
ton in this regard would DC through
public withdrawal of Government bond
and The holding OF them for maturity
u would be dangerous, II was stated, :
try this by stopping public borrowing
on bonds. Reduction of Federal reserv
currency also has been suggested, bu
such measures might nave y Ihf rcaci
ing ana disastrous effoct on business an
Z Industry generally. go Y
Meat Packers Hearings Soon.
Beginning August Is the Senate Com
mite on Agriculture will begin hearing
on the Kenyon-Kendrick bill for tn
regulation and control OF the meat pack
ere. This decision was reached at IN
committee meeting to-day.
Some members were anxious TO star
sooner but Chairman Gronna IN. d.
was not willing 10 rush matters. II
protested that the hearings would ro
auire several weeks and that a gree
number OF organizations would desire t
be heard. '''tf1
During the last session OF Congress
hearings on this same legislation cor
stunned several weeks, all OF the head
of the great packing concerns and man
other persons being examined at greS
length. Senator Kenyon (1owa) though
II was not necessary to 60 muc
further with that line of work But II
committee decided to have further II
vestiRations and they will proceed NJ
Gronna insisted that the peace treat
should be permitted to be disposed
before the packers bill is pressed In y
Senate. The decision to open hearing
August IS was compromise betwes
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