Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1919-05-16
WHEAT PRICE Gut
BY GOVERNMENT
Director Barnes Intimates Reduc-
ton From Producer to Baker.
HINTS AT IMMEDIATE ACTION
Issues Statement Following Prolonged
Conference With Representatives
of Grain Industry, Including
MiIlers, Bakers and Jobbers.

New York, May 15.-An immediate
reduction in the price of wheat. reach
ing all down the line from the pro-
Queer to the baker, is believed as
sured, according to a statement is
sued by julius Barnes, wheat director,
following a prolonged conference be-
tween Mr.. Barnes and representatives
of the grain industry, including grain
handlers, millers, jobbers and bakers.
Barnes Issues Statement.
The statement issued by Mr.. Barnes
says:
There was a general agreement
that 10 order that all the wheat pro-
ducers of the country should secure
equal benefits, the various trades
could be bound by contracts to see
that wheat trading should be only on
the guaranteed price and, If a lower
basis was justified with the develop
ment of world factors as the season
advanced. this lower basis should be
made to reach the consumer by trade
agreements with millers and manu-
featuring facilities, the wheat director
making the readjusting basis effective
by the payment of the difference as
allowed under act of congress.
Would Require Contra cts.
Elm return for protection against a
fall in price, after the guaranteed
price had been made for wheat
bought. the wheat director would re-
qulre from the various trades con-
tract obligations by which their trade
practices and margins Of profit would
be subject to review and control by
the wheat director.
'It was suggested, for instance,
that the mills agree that their total
gross operating profits between wheat
bought and the finished products sold
should not exceed an agreed basis
per barrel of flour manufactured. thus
assuring immediate reflection to the
consumer of any reduced price OF
wheat supplied to the mills.
1.-THE iobbers expressed a willing
ness also TO CONTRACT that their handl-
ing margins should not exceed the
price fixed on an agreed basis, thus
making Immediately effective a lower
retain price of flour when made by the
mills on a readjusted wheat basis
Will Make Bread Cheaper.
"The bakers were willing to enter
into contract by which they would
reflect at once in their products the
lower price of flour made effective by
the mills. In this way, down to
the retail trade there is thought to be
an assurance that reduced price of
wheat should be effective immediate
ly all down the line.
"Some of the western delegates ex-
pressed the view that certain sections
of the producing wheat country had
developed a sentiment that wheat next
year might be worth more than the
guaranteed price in the open markets.
but the general view was that the
crops promised so well that any with
holding from the market under such
sentiment would be unappreciable in
the total volume and that most grow.
ers would be ready TO market at the
guaranteed price. thus sharply reduc.
ing the present price of wheat and
facilitating lower flour price, with
the new crop movement,
New wheat will be moved In Texas
In thirty days. and from the present
outlook In six weeks more there will
commence a very large movement OF
new winter wheat. In order that sea.
ports and interior markets should not
be choked by congestion and blockade,
the general opinion was that the grain
corporation should continue the coop
erative control with the railroad adj
ministration of the movement of GER
cal and cereal products into all the
markets by the permit system of car
shipment.
Success of Permit Control.
ut was developed during the meet
ing that although vessel movements
&c ports last fall were especially err.
ratio, accumulated by the necessity OF
diverting foodstuffs for motor trucks
and munitions to press the fighting
en- the western front when the Ger
man line began to give way. vet the
permit control succeeded In prevent
ing any actual blockade, while the
really astonishing total of $500, 600.
600 bushels of grain were moved in
nine months from July through ele-
vator and mill facilities of the coun.
try. although the amount of grain
at one time in these elevators was
less than 100000 bushels.
This means a total turnover of sew.
en- times in nine months, which is only
possible if the most liquid condition
of railroad grain transport prevailed. :"