New-York tribune., 1919-08-06
Gives Up Tour of Coun.
try on League of Ma
tons to Devote lime
to Problem of Erices
Food Hoarders
To Be Punished
Government Will Not
Change Wheat Seized.
ule; Flour Tc Be $40
Barrel, 1t Is Announced

WASHINGTON, Aug. 5.-These de.
clsions were reached to-day by the
government agencies working to reduce
the cost of living and to allay the coun-
try's unrest:
President Wilson decided TO ad-
oress a message to Congress recon-
mendlng additional legislation to aid
IN reducing the cost of living.
Agents of the Department of Jus
tlce were ordered to ferret out all
hoarders of necessaries and profiteers
throughout the country. They are to
be prosecuted under the food control
act.
Director julius Fl. Barnes of the
Graln Corporation decided to main
tam the governments guarantee on
wheat at 1925 bushel as reserve
protection against a higher price
later, but held out an early prospect
or q reduction in flour to $40 a bar
rel.
At the conclusion of a days activity
by the President, the subcommittee of
the Cabinet appointed by Attorney Cen
eral Palmer and by the Attorney Gen
eral himself announcements were made
of the immediate steps to be taken
and OF the governments wheat policy.
Readjustment of Flour Price
In lengthy statement showing whv
the price of wheat would rise but
for the government guarantee. Director
Barnes promised a readjustment of
-four prices at the expense of the
national Treasury as authorized by Con-
gress, if later developments indicated
guaranteed basis.
Immediate steps will be taken by the
Grain Corporation to sell standard ex-
port -four in every community of the
country in carload lots at price not
greater than $40 barrel. M Barnes
announced. This price, he added, is
lower by 81 barrel than any price
ruling the last four months
Using figures described IA coming
from the Grain Corporations own pri-
vate sources Mr.. Barnes predicted
a shrinkage of probably 400, 900 900
bushels" in the wheat production for
North America, $4,000 900 bushels of
which is in the United States, from
the June forecast, and further shrink
age in European wheat and rye produc-
ton Of 10000 900 bushels outside Rus
sia.
Not Discussed by Cabinet
The high cost of living was not dis
cussed at the regular Tuesdays Cab
met meeting. but Attorney General
Palmer remained after the meeting to
confer with the President. and pre-
sented memoranda prepared by the
committee stating wnat the gov
crnment was doing and what il pro-
poses doing under existing laws, and
possible additional laws to cope with
the situation.
The Department of Justice agents
throughout the country, the Attorney
General said on leaving the President.
have been ordered to institute special
investigations to find evidence of
boarding and profiteerlng as prohibited
under the Lever Food Control Act, and
prosecutions will be instituted without
delay.
Mr.. Palmer declined to disclose what
remedial laws were suggested 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 Depa artment of Justice.
Doubt About Penalties
Doubt was expressed by some legal
authorities of the government as TO
whether a penalty is provided for
profiteering by the food control act.
although penalties are provided, rang
ing from $4,000 to 10000 or from two
to four years in prison, or both, for
boarding and other violations. Artor-
ney General Palmer. without going
into this phase of the problem, said
it was his belief and hope that imme-
diate results toward reducing the cost
OF living could be obtained through
prosecutions under existing laws.
Secretary Tumulty said, after Direct
OF Barnes had left the President, that