The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-06
Wilson to Go to Basic Con-
ditions in Whole Price
Structure of Nation.
EXAMPLES TO BE MADE
Palmer Already Busy in
Preparing to Prosecute
All Profiteers.
WILL ASK FOR NEW LAW
Antitrust Acts Studied and
All Commodities to Be Put
Under Scrutiny.
WILL ASK FOR NEW LAW
Special Despatch to THE suN.

w Auk. VI liiO
penal sections of the food control act
are to be invoked by the Department
Of Justice in sweeping prosecutions
Of individuals and firms regarded as
amenable under this act.
This and his address to Congress
are the two principal measures de-
cided on by the President and the
executive agencies of the Government
to effect an immediate, even If slight,
reduction In prices.
julius H. Barnes, director of the
United States Grain Corporation, de-
cided to maintain the price of $226 a
bushel on wheat, the price guaranteed
by the Government as reserve pro
lection against higher price later"
The Federal Government campaign
against prices not only Of foodstuffs,
but of all other commodities that gen.
orally go to make up living costs, is to
be much broader than was at first
generally believed.
The whole price structure of the
nation is to be attacked vigorously,
and 1t was officially indicated to-day
that many prosecutions of food and
trust law violators might be looked
for in the future. The Administra-
tlon proposes to go to the fundamentals
of all prices, and 1t is likely that
determined effort will be made to tear
down, In so far as they effect prices.
the close Industrial organization and
cooperation built up through the War
Industries Board during the war to
speed production.
Palmer Presents Report.
Complete recommendations for Ad-
ministratlon action to meet the situa.
ton were laid before the President
late to-day by Attorney General
Palmer. The Attorney General was
spokesman for the Cabinet confer
ence, which has been considering the
subject since last Friday. 1t is un.
derstood that the President Is pre-
pared to take immediate action on
them. They will not be made public.
however, until he lays them before
Congress.
Meantime the Department of JUS
tice will go ahead with investigations
and possibly with criminal prosecu-
tions. The President has given ap-
proval to plans outlined to him, and
they contemplate making an example
of all individuals or organizations
which have boosted prices through un-
lawful means. This action Is ex-
pected to have a salutary effect upon
business generally.
1t was learned officially by THE
SUN that Department Of Justice ac-
tlon would not be confined to dealers
in foodstuffs, but would reach out to
all basic commodities. Prosecutions
nre 10 be begun under the Sherman
and Clayton acts, as well as the food
control act.
In this connection significance may
be attached to the attendance Of AS.
sistant Attorney General Ames at the
Cabinet conference that preceded the
regular Cabinet meeting at the White
House.
Anti-Trust Actions studied.
Judge Ames has been studying the
pending antitrust actions and reports
with reference to alleged violations
of the Sherman law. He also has
given much study and has directed
Il wide inquiry into steel prices and
the unanimity OF quotations to the
Railroad Administration when Di-
rector-General Hines sought competi-
tive bids of steel after defeating ef-
forts OF the defunct industrial board
Of the Department OF Commerce to
reach an agreed price. Director-Gen-
eral Hines headed the subcommittee
that drafted the Administration pro-
gramme.
Mr.. Palmer said at the White
House after his conference with and
report to the President that investi.
cations by his department, with a
view to prosecutions, were being ex-
tended to all OF the basic industries.
including steel. This may lead to q
new steel trust suit by the Govern
ment. The term basic Industries
covers most of the large industries of
the country.
A broad licensing system for all
dealers in foodstuffs has been sug-
gested to the President it is UNDER