Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1919-01-27
FOOD SURPLUS HUGE
PROBLEM HOOVER

Continued From Page One)
summer of 1917 to +OO,OOO,OOO
pounds per month in this January.
"To achieve this mobilization OF
fats it was necessary to mobilize
the packers as well as che farm
ers. There is no doubt that the
vast volume Of business brought
profit to the packers, although at a
less percentage than before TIE
food administration took charge
of it.
"'The allied nations. in order II
effect regular supplies to their
people in the face of snort ship
ping and to provide for govern
ment rationing, were compelled to
take over the entire purchase OF
these food supplies and thereby
abandon the ordinary flow of trade
and commerce In consequence
they concentrated their buying
through agencies and the power Of
these buying agencies was so great
that they controlled the price.
The business of the food admin
istration was to bring these buyi1 ;
agents, the representatives of the
farmers, who are predominantly
interested, and the great AM
small packers together. and to see
to it that a square deal was OBJ
tanned all around
Tho prices were settled in a
Joint conference of the farmers,
the representatives OF the allies
buyers and the great and small
packers under the general arrange
ment that the packer was al
lowed but a quarter of a cent a
pound over and above the price ~
the farmer and the cost OF raw ma
terial and labor for packing. The
allies took the entire surplus.
1.-The situation changed over
night with the armistice. The al
lies are not only seeking the
southern hemisphere markets buI
they had also lately accumulated
large stocks Of fats as an insur-
ance against the submarine men
ace. Freed from this menace, and
with the shortage of finance exper-
fenced by all governments. to-
gether with the loss in the storage
of commodities by deterioration,
there is a natural desire on their
part to reduce their stocks.
"Other factors have entered into
the situation. For instance, the
inactive armies and muniticn
workers are consuming less fats
and the vegetable is freed for hui
man consumption. This came upon
US Immediately with the armistiCC
early in November, in the midst OF
our heaviest hog marketing sea
son, which lasts from October un-
til March.
when l left home for Europe
in November this problem was al
ready facing me as one amor 9
many, and solution of l.
had to be found, in the protection.
OF our American farmers, lest
from failure to find a market for
his products during the armIstice
and many others for which assist
ance pending the wider markets OF
peace his prices might fall below
his cost of production, cntailing
great waste of surplus commod-
tiles.
I'VE have found it impossible TO
protect the American farmer in the
two and one-half months since the
dIuISLICS. L HIS We nave uO0e DIV
cooperating with the allies. in
opening wider markets to neutral
countries and by relief shipments
into the liberated territories. The
next and last six weeks of the
high fat production season will be
still more difficult to manage, as
peace cannot be expected in that
time, restoring extended markets
"OD the other hand. five-sixths
Of this problem is already com
pleted, and by next May, if we
have peace and freedom. any sur
plus that accumulates now will be
turned into another world short
age Of fats. Indeed, if the entire
consuming populations of the
world were able to obtain fats to.
day there would be q shortage a.:
this moment. even with our great
surplus production
Numerous solutions have been
proposed 1t has been considered
that the allied governments
should continue to purchase the
surplus production Of pork pro-
ducts, despite the accumulated
stocks and lack of immediate need.
and thus protect the American