The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-17
NEW WHEAT RULES
EFFECTIVE IN JULY
Barnes Prepares to Act Upon
Presidents Order to Assure
Guaranty on Grain.
CONFERENCE HERE SOON
Contracts to Be Amended and
Capital Of Corporation to
Be $5OO,OOO,OOO

President Wilson, by executive order
dated May IL. has directed Wheat d.
rector Julius Barnes to exercise the
authority given in the recent Act Of
Congress to license the wheat handling
trades. making proper regulations to
assure the guaranty price being made
effective, and to carry out other pur-
poses Of the act. This information was
contained in cable from Food Ad-
ministrator Herbert C. Hoover received
yesterday by Mr.. Barnes at the office
Of the Food Administration Grain Cor
poration, ~ Broadway.
The executive order also directed the
Food Administration Grain Corporation
to alter its name to the United States
Grain Corporation, after July 1, 1919,
and to increase its capital stock from
$3.50 100000 to $500, 100000. All stock
Of the corporation will be held by the
President Of the United States.
Mr.. Barnes, after conferences with
representatives OF the grain trades to
formulate contracts between the Grain
Corporation and\ the handling facilities
OF the country. announced that early in
June there will be called a general con-
ference of delegates from the mills.
grain dealers, Jobbers. bakers and grow
ers associations in New York to dis
cuss the plan Of operation.
Contracts to He Revised.
At this conference the Grain Cor
poration will listen to suggestions fol
| any notifications proposed in the con-
| tracts, and by July /. 1t is anticipated
that the new licenses and new contracts
will be in general use. The new con-
| tracts are aimed to provide that
| throughout the United States wheat In
the berry shall sell always at S2.26 oil
its proper relation. so that the producer
everywhere will get the full Government
price.
No reduction in the price Of bread tc
| the consumer Is to be expected imme.
diately, Mr.. Barnes said. as there Is
no change in the situation as to the
old crop OF wheat and -four and the
prices ruling thereon do not make such
an expectation reasonable until the new
| crop begins to move in about six weeks
There will be no lower price then, Mr.
| Barnes added. unless a new resale price
is made by the Government.
In six weeks flour prices are expected
to decline and 1t is hoped that no ad-
vance in bread prices will be necessary
| between now and then on account OF
nlBner prices ruling Tor the Limited
amount of old flour still in this country
The bakers have promised to maintain
the present bread prices as far as pos
sible in spite of increased expenses for
| labor and material, Mr.. Barnes said
in expectation that the new crop OF
| wheat will reduce -four prices In the
near future.
Spectators to BE Curbed.
Mr.. Barnes wrote yesterday to l.. F
Gates. president OF the Chicago Board
of Trade, suggesting as a further
guarantee against the abuse of trading
facilities Of exchanges and as a more
effective. control by the officers of grain
exchanges that the Board Of Trade re-
instate the rule limiting the amount OF
open trades in corn for any one interest
or individual to 100000 bushels. II
the case of accounts now open beyont
that quantity the officers of the boarC
are to make proper efforts to reduce
| such accounts to that basis in tn,
near future
IF you, can advise me that the Chi
cago Board OF Trade will do this" Mr.
Barnes wrote. II feel justified in cabling
Mr.. Hoover that a study OF the presen
conditions would indicate further regu
lation may not be necessary and
am sure II is his desire. as my own, tina
the exchanges should perform their un
doubted public service with no NOR,
restriction or interference than Is dem
! onstrated to be absolutely necessary"