Arizona republican., 1919-06-23
TELLS HOW ]. 5.
 WILL TAKE CARE
 IF WHEAT CROP
Food Administration Ex- plains Methods Taken to
 Make Sure of 1919 Guar
 antees-Plan of Licensing

Methods the food administration will | .1se in making effective the 1919 wheat i guarantee prices and details of the ad- i ministration's plans for the 1919 wheat 1 crop, expected to be the largest in his l tory, are contained in a bulletin just | issued from the San Francisco agency of the United States food administra- tion. The bulletin bears the signature of R. A. Lewis, agent, and is as fol- lows:
 Authority President Wilson, by executive or der dated May 14, 1919, designated Julius H. Barnes as United States wheat director, and authorized him to take such measures and adopt such administrative procedure as are neces- sary to make effective the 1919 wheat guarantee to the producer, in accord ance with the provisions of the con- gressional act approved March 4, 1919.
 License All wheat flour mills, regardless of size
 All grain dealers and elevators.
 All flour jobbers.
 All bakers using 50 barrels or more per month, will require licenses.
 While there exists the authority to license retailers, if found necessary, they will not at present time be put under license.
 A proclamation governing licenses will be issued in a few days. Then forms of application will be distributed from the zone managers office. These forms are to be properly filled out and sent by applicant to the license division of the wheat director, Washington, D. c. When licenses are issued they will be forwarded to second vice presi- dents for delivery.
 License rules and regulations will shortly be issued, but cooperation of he various trades will be accomplished through voluntary contracts, a separ- ate contract for each trade, namely, wheat flour filters, grain dealers and elevators, flour jobbers and packers. These printed contract forms will be in the hands of second vice presidents within week.
 When contract forms are signed, they are to be returned to the zone manager, who will at once forward them to the general office for signature of executive of the grain corporation. Through these contracts the dealer and miller agree to pay not less than he corporation guaranteed wheat price basis, and in securing a proper re- flection of not less than that basis to the producer; the corporation protect ing the contracting party in the event of a lower resale basis established by he grain corporation.
 Certain provision is made in the contracts for the payment to dealers of storage before and after the period of advancing premiums, if shipping conditions prevent normal turnover; thus protecting the dealer from the necessity of reducng the price to the producer.
 It has been determined to put in a premium basis over the guaranteed price basis and this premium reflected to the producer when the situation, in the judgment of the wheat director, makes such action advisable.
 It is decided that there will be no advance premium over the guaran- teed price for the month of July.
 A proper reflection of the guaranteed price basis to the producer is the guaranteed price at the most fabor- able terminal minus freight, and a reasonable maximum handling margin As a rule it is expected that com petition will properly regulate the handling charge or buying margin on a reasonable basis.
 In the event of complaint of unfair buying margin, the zone manager shal decide what is a reasonable margain; and in the event of his decision not be- ing satisfactory to both buyer an6 seller, then appeal may be made by either party to the wheat director whose decision shall be final.
 All mills, dealers and elevators, 1T purchasing wheat from the producer shall buy on the basis of the fedora Stopdardc tbai,. host a1d bopac- judgment.
 In the event of a difference of opin. ion as to the grade, sample of whea shall at once be drawn in the pres ence of both buyer and seller, enclosed in a proper container. and sent tt zone manager for decision as to propel grade.
 Notice of the method for this appea will be posted in all mills and eleva tors buying from the producers, witt instructions how to proceed.
 A further appeal is allowed final. to the wheat director.
 Readiustment of Gulf Prices
 In New Orleans and Galveston tn guaranteed price basis will be ad vanced from $2.2S to $2.30.
 The railroad administration advis they will put in a 56 cent blanket max imum rate from the important grain producing sections of the intermoun tain territory to the gulf.
 The governing consideration in mak ing this adjustment is that it wa demonstrated that the former buyin price did not of itself attract sufficien flow of wheat to the gulf ports serve the commercial requirements c grain corporation in the conduct of il export trade.
 It is now calculated that the ne' price will probably attract to the gu sufficient flow of wheat for the prope