The Birmingham age-herald., 1919-08-06
sy Associated Pres.

Washington August 5.-De- termined to reduce the increas- ing cost of living, department of justice agents in all parts of the country have been in- structed to report all violations of the Lever food control act and to ferret out all hoarders and profiteers in foodstuffs.
 Tn lengthy statement showing why the price of wheat would rise. but for the government guarantee Director Rarnes promised a readjustment Of flour prices at the expense of the na- tional treasury as authorized by Con eress, if later developments indicated a world price for wheat lower than the guaranteed basis.
 Immediate steps will be taken by the grain corporation to sell standard eX- port flour in every community of the country in carload lots at price not greater than $10 a barrel, MT. Barnes announced. This price, he added, is lower by one dollar barrel than any price ruling during the last four months.
 LESS WHEAT PREDICTED
 Using figures described as coming from the grain corporations own pri- vatea sources Mr. Barnes predicted shrinkage of "probably 400,oo0,eoo bushels" in the wheat production for North America, 250,o0o,o00 bushels or which is in the United States from the June forecast. and a further shrirN- age in European wheat and rye pro auction, of 300 100000 bushels outside of Russia.
 The high cost of living was not dis cussed at the regular Tuesdays cab inet meeting, but Attorney Generai Palmer remained after the meeting to confer with the President and present. ed mem oranda prepared by the sub committee stating what the government ,8as doing and what it proposes dolng under existing laws, and possible ad- ditional laws to cope with the sltua- ton.
 The department of justice agents
 throughout the country, the Aftor-
 ney General said, on leaving the
 President. have been ordered to in-
 atftutc. special investigad dons to
 find. evidence of. hoardinE. and
 profiteering as prohibited under the Lever food control act, and
 without delay.
  disclose what remedial laws were sug- Eested to the President, or to go into detail as to how the department would proceed under the existing laws beyond saying that operating under the Lever act did not mean the functions of the food administration would be assumed by the department of justice.
 PENALTY FOR BOARDING
 Doubt was expressed by some legal authorities of the government as to whether a penalty is provided for prof iteering by the food control act, al though penalties are provided ranging from 5000 to sl0,o00 or from two to four violations. Attorney General Palmer without going into this phase of the problem said it was his belief and hope That immediate results toward reducing inc cost of living could be ooetained through prosecution under existing laws.
 Barnes had left the President that no statement would be forthcoming from the White House tonight beyond the mere an nouncement that the president will ad- x dress a message to congress as soon as he has the time to write it. It was not announced whetheri the President would 20 before CongressN or send writ ten communications
 
 his Communication regarding the worie wheat situation, said ~thatS the whea' crop in the United States is not short and that 1000. 900 900 bushels was assured There was no warrant he said. however for statements that the price had been inflated He announced definitely that as far as he could see there was no hope for a reduction in the near future, anc that he would not sell wheat at price he1oW the guarantee.
 WORLD WHEAT PRICES
 Pirures were also given by MT. Barnes on the world price as follows:
 Average farm price to American far mer under guarantee s2.o5 a bushel.
 -Average farm price in the United Kingdom during the last calendar veal R.A
 Average farm price for four big pro ducinR countries: United States, Canada .Arrentina and Australia; producing |, l,50o, 900 bushels, >1-s4.
 Average growers prics nargely guar tc..ti..ea .. P.ss I've,