Arizona republican., 1919-01-27
C0UCE PROFITS OUT OF
 PACKER-FARMER MORE
 LMP0RTANT-Mr. HOOVER
Food Administrator Says Production Bigger Problem Than Chicago Meat Men Food Status Serious World Shortage of Fats Just AheadNext Six Weeks to Test the Stamina of American Stock Raisers

PARIS, Jan. 26.-(By the ASSoclated PresS)-Herbert Hoover, United States food administrator and director gen eral of the international relief organl- Zation, gave out the following state ment today:
 "The dominant food problem in the United States at this moment is, a very much bigger problem than the Chicago packers. It is problem of the Amer ican farmer.
 If the packers profit of two or three percent on his turn over is too high, it is the duty of congress to tax it out of him. If the farmers prices threaten to fall below the level of a fair return, it behooves the country to do some Tquick, clear thinking.
 ."The perpleXities arising out of ln- ability to demob 'ize 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 a year. This year we are prepared to export at the rate of from fifteen to twenty millions Of tons. The increase represents the patriotic service of the American farm CT, plus the voluntary sacrifices of the average American under the stlmula- | tion of the pleas from the allied gov | ernments, that without an enormous increase in our food supplies, their very lives would be menaced. 1 We are thus faced with serious problem with respect to our own great supplies, periodically accumulated. If an early peace is signed and the mark cts of Europe are opened freely to trade, | there will be a greater demand for food | from the new mouths than ever this surplus could supply. But in the periods between the armistice and peace, we have a very difficult situation.
 "One of the most critical food short 1 ages in the world was that of fats, and the only help lay in an increase in the American hop. Our agricultural de- partment and food administration spared no efforts to stimulate this pro- duction. Our farmers were assured that in the general shortage, subject 1 only to the uncertainties of war, they would experience no difficulty in mar
 keting their products. Due to the say
 ings of. our people and the gradual in- creased production of our farmers, we have lifted our ability to export from
 
 the summer of 1917, to 400, 900, ,00( pounds per month in this January.
 ITO achieve this mobilization of fats
 it was necessary to mobilize the pack
 CTS as well as the farmers. There is
 no doubt that the vast volume of busi- ness brought profit to the packers, al
 though at a less percentage than be-
 fore the food administration tool
 charge of it.
 "Other factors have entered into tho
 situation. For instance, the inactive , armies and intuition workers are con } suming less fats and the vegetable i! freed for humon consumption. Thi!
 came upon us immediately with tn,
 armistice, in early November, in th' midst of our heaviesS nog marlletin,
 season, which lasts from October unti March. When l left home for Europ ' in November, this problem was alread,
 facing me, as one among many fo | which assistance had to be found, il
 the protection of our American farm
 CTS, lest from failure to find a marNe
 for -his products, during the armistice
 and pending the wider markets o peace, his prices might fall below hi t cost of production, entailing srea ? waste of surplus commodities. ) We have found it possible to pro l tect the American farmer in the tw and one-half months since the armis
 tice. This We have done by co-operat ' ing with the allies, in opening wide s markets to neutral countries, and b
 relief shipments into the liberated ter
 ritories. The next and last six week . of the high fat production season wi
 be still more difficult to manage, q f peace cannot be expected ill that tim' , restoring extended markets. e "On the other hand, five-sixths ( . this problem is already completed, f.n
 by next May, if we have peace and free
 dom, any surplus that accumula- es no will be turned into another wori
 shortage of fats. Indeed, if the entiI U consuming populations of the worl z were able to obtain fats today, shcr would be a shortage at this momen s' even with our great surplus produl II tion.
 Practically all restrictions on Amer ; ican food exports have been remove = Progress has been made in lifting net
 tFal blockade restrictions.
 Tt is, however, no more possible
 demobilize in a week the whole of the: 1t intricate forces set up during the wa r than it is to demobilize our army y dismissing it on the field. Pending u 1t solutions, the American farmers, ne y chants, packers and banks simply mu z stand together for two or three month
 to carry our excess surplus over uni
 the markets of the world have been e,
 tended and finally liberated by peac T, The meeting of farmers and packer representatives called at Chicago ( 10 Tuesday has to consider these prol ,, lems"