New-York tribune., 1919-01-27
Problem Is TO Project the
Producer Until Markets
Can Be Opened. He Says
Foresees a Demand Soon
Present OversuppIy OF Fats
VIII Soon BE Exhausted;
MOI Interested in Packers

1000 administrator ana OlrectOr gen
eral of the international relief organ
ization. gave out the following state
mcnt to-day:
The dominating food problem in
the United States at this moment is a
very much bigger problem than the
Chicago packers. 1t is the problem Of
the American farmer
III the packers profit of Q or 8 per
cent on his turnover is too high, it is
the duty Of Congress to tax it out Of
Inn. If the farmers prices threaten
to fall below the level of fair re-
turn, IL behooves the country to do
some quick, clear thinking.
The perplextics arising out of in
ability to demobilize totally the food
situation Of the world in the period
between the armistice and peace make
the farmers position in the matter Of
much more immediate concern than
the future of the Chicago packers
Taking it broadly. before the Euro
pean war began we exported about five
million tons of food year. This year
we are prepared to export at the rate
Of from fifteen to twenty millions of
tons. The increase represents the pa
triotic service of the American farmer,
plus the voluntary sacrifice Of the
average American under the stimula-
ton o the pleas from the Allied gov
ernments that without an enormous in
grease in our food supplies their very
lives would be menaced
Armistice Freed Shipping
"The submarine had so shortened the
worlds shipping that the Allies were
unable to reach the distant markets
of the Southern Heufw pherc and we
were bound 70 create in America suf-
ficienr food to carry Europe. If the
war had gone on every pound of it and
move would have been required by the
Allies before next harvest
The afmistice came suddenly. free
ing shipping from military use and
reopenins to the Allies the cheaper
Southern Hemisphere and the colonial
markets, where. IN addition, they could
have moro liberal credits and markets
for their manufactures.
We are thus faced with serious
problem with respect to our own great
supplies, patriotically accumulated. If
an early peace is signed and the mar
kets OF Europe are opened freely to
trade there VIII be a greater demand
Tor food from the new mouths than
over this surplus could supply. But
in she period between the armistice and
peace we have a very difficult situation.
Increase in Hog Production
"0ne Of the most critical food short
ages in the world was ethat of fats and
Ire only help lay in an increase in the
American hog Our Agricultural De
partmeu5 and the food administration
spared no efforts to stimulate this
production Our farmers were assured
that IN the general shortage, subject
only 10 the uncertainties OF war, they
would experience no difficulty in mar
Rofing their products. Due to the saw
5rgs Of our people and the gradual in
creased production Of our farmers we
fave lifted our ability 10 export from
500o000e pounds OF fats a month in
TIC summer OF 1917 to 10000 600
pounds 8 month in this January.
"Io achieve this mobilization of fats
l. was necessary to mobilize the pack
srs as we'll as the farmers. There is
70 doubt rNat the vast volume Of busi-
ness brought profit 10 the packers, al
though at q less percentage than be-
fore the GOOD administration took
charge.
"Thc Allied nations, in order to
elect regular supplies to their people
n tho face of short shipping and to
provide for government rationing,
were compelled TO take over the entire
purchase Of thcse food supplies and
thereby abandon the ordinary flow Of
trade and commerce. I'm consequence
trey concentrated their buying through
agencies and the power of THESE buy
Ing asencies was 50 great mat they
controlled the price.
Sought Square Deal
The business Of the food admins
tratiou was to bring these buying
agents, the represcn cntatives Of the
farmers Who are predomiuatinglv in
fefested. and the great and small pack
ers together, and TO see to it that a
toaafe deal was obtained all around.
The prices were settled in d Joint
conference Of the farmers the repre-
4 sentatiyes of the Allies buyers. and
ID the great and small PACKERS under the
general arrangement that the packer
VS. allowed but a quarter % g cent q
pound over and above the price to the
farmer and the cost OF raw material
*rd lanor or packing. The Allies took
The entire surplus
The ituaton changed over night
With tne armlstice. The Alhes are not
10y SstHiA the southern hemisphere
merAets, bet they have also lalelv ac-
cpmuleted large stocks Of fats as an
Insurance against tie submarine men
1ee. Freed from this menace. and with
the shortage OF finance experienced by
all governments, together with the loss
~ the storage Of commodities by de
terloratson, there is natural desire
on tne.r part 10 reduce their stocks.
Other factors have entered into the
situation. For instance. the inactive
armies and munition workers are con
suminR less fats, and the vegetable is
freed Tor human consumption. This
came upon US Immediately with the mr.
Hlatice IN early Novcfn Der. in the
midSt oI our heaviest hog marketing
Fsagcn, which lasts from October un-
I'll March
Saw Problem In November
When / left home for Eurone g.,
xoFemper this problem was already
racing me az one among manv others
$orfwnlch assistance had TO be found
ia the protection OF our American
farmers, lest from failure TO find 8
market for his product during the
arml@ttee and pending the wider mar
gets oi peace his prices might fall hc
low h!S cost OF production. cntailino
great waste of surplus comrnoditfea
We have found 10 pogsible 20 nro.
9ect the American farmer in the two