Middletown transcript., 1919-10-25
STEAD|ER Hoe MARKETS PLANNED.
Hog Producers and Packers Confer With Repre-
sentatives Of the Food Administration and /
Agricultural Department and Adopt
New Plan Of Regulation.
New Plan Of ReguIatiof

In accordance with the policy of t
ton to consult representative men II
Of Importance to special branches of
convened in Washington meeting (
Agricultural Advisory Board and the
industry to consider the situation in t
The conference lasted for three I
executive committee of the fifty pack
for pork products and with the memb
foreign pork purchases.
The conclusions Of the conference
The entire marketing situation ha
80 changed since the September join
conference as to necessitate an entire
alteration in the plans of price staDi
lization. The current peace talk has
alarmed the holders Of corn, and ther'
has been a price decline of from 2
cents TO 40 cents per bushel. The fac
that the accumulations of low priced
corn in the Argentine and South Afri
ca would. upon the advent Of peace
and liberated shipping, become availa
, BILE to the European market has ere
\ated a great deal of apprehension OF
the part Of corn holdera This decline
has spread fear among swine growers
that similar reduction in the price:
of hogs would naturally follow. More
over, the lower range Of corn prices
would, If incorporated In 13-to-1 ra
ito, obviously result in continuously
falling price for live hogs. In view
of these changed conditions many
swine producers anticipated lower
prices and as a result rushed theil
hogs to market In large numbers, ant
this Overshipment has added to ant
aggravated the decline.
The information of the Department
of Agriculture indicates that the sup
ply Of hogs has increased about 8 per
cent. W lille the highest unofficial esti-
mate does not exceed Is per cent in
creased production over last year. On
the other hand, the arrival of hogs
during the last three weeks in the
seven great markets has been q per
cent. more than last year, during the
corresponding period, demonstrating
the unusually heavy marketing Of the
available supply. In the face OF the
excessive receipts some packers have
not maintained the price agreed last
month. On the other hand, many
Of the packers have paid over the
price offered to them in an endeavor
to maintain the agreed price. The re-
suit in any event has been failure
to maintain the October price basis
determined upI ! at the September con-
terence and undertaken by the pack
ers. Another factor contributing to
the break in prices during the month
has been the influenza epidemic; it
has sharply curtailed consumption OF
pork products and temporarily de-
creased the labor staff of the packers
about 25 per cent
The exports Of 13OOOO,OO0 pounds
Of pork prodQ for October COM
pared with al ccc. 100000 pounds
in October a year ago, and the
export orders placeable by the Food
Administration for November, amount
to 17O,OOOOOO pounds as contrast
ed with the lesser exports OF
9s,OOO,OOO for November, 1917. The
increased demands of the allies are
continuing, and are In themselves
proof of the necessity for the large
production for which the Food Admin
istration asked The increase in ex-
port demands appears to be amply
sufficient to take up the increase IN
hog product III, but unfavorable mar
ket conditions existing in October al
ford no fair index Of the aggregate
supply and demand.
It must be evident that the enor-
nous shortage in fats In the Central
Empires and neutral countries would
Immediately upon peace result In ad-
ditional demands for pork products
which, On top of the heavy shipments
to the Allies, would tend materially
to increase the American exports. In
asmuch as no considerable reservoir Of
supplies exists outside Of the United
States. It seems probable that the
present prospective supplies would be
Inadequate to meet this world demand
with the return to peace. So far as 1t
is possible to interpret this fact, it ap-
pears that there should be even a
stronger demand for pork products
after the war, and thrfefore any alarm
of hog producers as to the effect of
peace is unwarranted by the outlook.
In the light Of these circumstances
It is the conclusion Of the conference
that attempts to hold the price of hogs
to the price Of corn may work out to
the disadvantage of pork producers.
1t is the conclusion that any interpre-
tation Of the formula should be al
broad gauged policy applied over d
long period. It is the opinion Of the
conference that in substitution Of the
previous plans of stabilization the
Live Stock Subcommittee of the Agri-|
cultural Advisory Board, together with
the specially invited swine representa-
tives, should accept the invitation oil
the Food Administration to join with
the Administration and the packers in
determining the prices at which con-
trolled export orders are to be placed.
This will be regularly done. The in
duence of these orders will be directed |
to the maintenance of the common OBJ |
ject-namely, the stabilization of the |
price of live hogs so as to secure as far
as it is possible fair returns to the |
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