The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-11-20
Seed CRUSHERS
ARE RESTRICTED
RULING OF DEPARTMENT OF AGRt-
CULTURE PROHIBITING PROFIT
EERiN0 APPLIES TO FERTILIZER
MANUFACTURERS.
(6y George n. Manning.)

Il
Washington, d. c., Nov. 19.-Folow-
Ing series of conferences held during
| the past week between representatives
| of the cotton seed crushers' associa-
| tons and fertilizer companies with DIR.
I hilton Whitney, CHIEF of the bureau of
| seiis, and Solicitor William NJ. Williams
OF the department of agriculture the
/ department issued a statement announc-
ling that it's letter of November 5, which
had been construed as fixing the prices
OF fertilizer ingredients on October as
| maximum prices had been revoked and
| asserting that the prices of that daf e
| would only be used as a means of de-
| termining If prices charged now and in
| future are fair and free from profiteering.
| The cotton crushers and fertilizer men
| claimed that the departments letter Of
October would cause them serious
| financial loss because it would compel
them to sell at the prices of that date.
| whareas they are compelled now to pay
higher prices for cotton seed and other
ingredients from which they obtain the
fertilizer materials.
DR.. Whitney and Solicitor Williams
claimed that the departments letter OF
November had been misconstrued by
the trade because the department had
not intended to fix the prices of that
date as the maximum prices that could
Do charged, but only as a basis for ar
irving at what would be fair and rea-
sonable prices today and in future.
The agriculture department officials
agreed to revoke the letter of November
.. out took occasion to assert that the
department will use the prices of Octo-
Der as guide in determining whether
the dealers are exacting more than 4
fair profit. The attention of the cotton
seed crushers vas called to the provis-
ions of the food control act of August
10, 1917, which fixes Imprisonment for
two years, or $4,000 fine, for profiteer-
ing, and they were. advised that the
agriculture department officials will keep
close watch on prices and promptly re-
port to tho department of justice for
pl osecution any instances of profiteering.
The departments statement reads as
follows:
"On November I addressed you a
letter IN which it was stated in sub /
stance. that any sale by you subsequent
&c that date of sulphate of ammonia, /,
dried blood, tankage, fish scrap. cotton |
seed meal, rock sulpha,e or bulk aciC |
phosphate in excess of their respective !
prevailing prices October z, 1919
would be considered by this department |
as prima facie evidence of profiteering |
1t develops that the trade has miscon- |
strued the said letter and has given l. |
an Interpretation to the effect that the |
department in the said retter fixed max |
i'ylum and minimum prices for such |
nlatrials. 1t was not the purpose of that |
letter to fix prices. The department
has no power to fix maximum or mini |
mum prices Of general application.
In order that this misconstruction |
may be entirely obliterated, the said |
letter of November 5, 1919 is withdrawn |
THE object of the letter of November |
was to impress upon the trade the
provisions of the control law regarding /
profiteering and to indicate that manu- |
facturers should use the prices prevail |
ing on October 7. the date on which the |
conference was held In Washington, as
guide in determining whether they
were exacting more than a fair profit
I'm the sale of their products. In view
Of the national situation. the Department.
is of the opinion that all manufacturers
should use their best efforts to reduce
the price of goods manufa ctured by them |
in order to cause2 a cessation of the
pyramiding of costs and bring about
stabilized condition. In view of vary
ing conditions in various sections OF the
country, It is deemed advisable not 10 1
name October z, or any other definite 1
date, as a guide in the matter OF profit
eering, but the department wishes 70 I
impress upon the trace that it proposes
to do all in it's power to bring aboue
normal conditions and to prevent profit
eering. In this connection, your atten- /
ton is especially directed to the pro-
visions of the control law, approved
August 10, 1917, as ans-nded. Section 4
thereof, makes it unlawful for any psr-
son to make any unjust or unreasonable
rates or charge in handling or dealing
in or with such commodities. 1t further
provides that any person who violates the
above mentioned shall, Upon
conviction, be fined not exceeding $4,000
or be imprisoned for not more than two
years. The department will keep In
close touch with the situation and
report to the department OF
this law"