The sun., 1919-08-04

packers win be the centre OF much
Administration effort to lower costs. II
the recommendation Of the Federal
Trade Commission and other cfficials
are accepted.
II was reported to-day that Herbert
Hoover was to be called back 70 Wash
ington as Food Administrator by the
President to take n hand IN tire situa-
tion. This could not be verified. II is
known that no action IN this direction
has been taken. -
Representative Madden tIn.), Re-
publican, announced tonight that with
the convening Of the House n was his
intention 70 introduce q bill providing
that the Government shall sell wheat
purchased by Il under the guarantee OF
s2s25 bushel hack to the millers and
other consumers at tho rate Of $3.50 n
bushei, the Government assuming the
intervening 70 cents q bushsi OF loss
Under the terms Of the Kelley resolu-
ton. which b now being prepared for
early INTRODUCTION, Congress will be
asked to authorize the conhscation Of
largo supplies OF food in warehouses all
over the country and distribute It to
tho people at actual cost, employing
the parcel post systsm a. an aid In dis
tribution. Other distribution systems
will be used. These arc being coordi-
mated for transferring the army sur
plns supplies and II the Kelley resolu-
ton Is adopted can be applied to the
win provide specifically for the con-
tinuance Of the system used in get
ting the army surplus food 10 the people.
: Commission to FIX Prices.
Under my plans" Mr.. Kelley said
to-day, ''the Government would be au-
thorixed to take oyer any or all food
now stored that II considered necessary
TO reduce the cost Of living. Distribution
would begin imediately. largely through
the parcel post, at prices determined
from the cost figures OF the Federal
Trade Commission.
Holders Of the food would be reim-
bursed later by the Government. the
exact amount to be determined by q
commission, but with the assurance that
only a nominal. profit would be allowed
the men who are now holding the food
IN the hope Of still higher prices.
'The food would be sold by the Gov
eminent at figures near the actual cost,
anc 1 think the whole country will find
the holders of this food are resplng
ENORMOUS profits. Should any loss en-
tail. which would not be very large at
the most. the Government could make
this up and consider its money well
spent. I believe Congress could make
the confscation law so clear that no
injunction could hold up the distribution
Of the food"
The army viii distribute about sfa4,-
100000 worth of food. but Mr.. Kelley
asserted this was only a drop In the
bucket compared with the large amount
stored at Chicago. New York and other
places.
Huge stocks Privately Held.
'srhe selling Of the army food" he
said, Fought to help the situation, but II
IL not the remedy. We must get at the
huge stocks now being held for still
higher prices in this country or for fabu-
lous prices abroad"
Mr. Kelley viii confer this week with
Post once and War Department officials
in the hope of adding more army trucks
60 the postal system for the distribution
of the food. II this 10 done. he believes
the food can be transported seventy
miles from every distributing station for
one cent a pound, at the same time al
lowing the post once q pfofit OF slightly
less than one-third of a cent a pound.
Meanwhile efforts WIN be renewed in
the House when II meets Tuesday TO
obtain action on the resolution of Repre-
sentative Igoe (Mo.) asking the Federal
Trade Commission TO investigate the
shoe prices. With So many members
away from Washington until the Presi-
dent submits his recommendations for
reducing the cost Of living II is doubt
full, however, II a quorum can be OBJ
tanned to take any action.