Pine Bluff daily graphic., 1919-08-06
This is One Move in Fight by U. s. on the High Cost of
 Living.
PRESIDENT PREPARES
 MESSAGE TO CONGRESS
Will Urge Special Legislation to Relieve SituatiOn-Departme of Justice After the
 PrOfiteers.

cuClVe anQ JuQlcldl-dcIcu Ioudy III efforts to bring about cut in the cost of living. President Wilson de- cided to send message to congress recommending further legislation to aid in reducing cost of food, and department of justice agents were ordered to seek hoarders of necessar- ies and profiteers. They are to be prosecuted under the food control act.
 In addlJlon, Director J. II. Barnes, of the Grain corporation decided to maintain the governments guarantee on wheat at $2.26 bushel as Ire serve protection against higher price later"
 At the conclusion of days activ- ity by the president, the sub-com- mittee of the cabinet appointed by Attorney General Palmer, and by the attorney-general himself, announce ments were made of these immediate steps to be taken, and of the govern ment's wheat policy.
 In lengthy statement showing why the price of wheat would rise but for the government guarantee, Director Barnes promised a readjust- ment of flour prices at the expense of the national treasury as authorized by congress, if later developments indicated world price for wheat low CT than the guaranteed basis.
 Flour at $10 Barrel.
 Immediate steps will be taken by the Grain corporation to sell standard export flour in every community of the country in carload lots at price not greater than $10 a barrel, Mr. Barnes announced. This price, he added, is lower by one dollar, than any price ruling during the last four months.
 Using figures described as coming from the grain corporations own pri- vate sources, MT. Barnes predicted shrinkage of probably 40o,0OO,OOO bushels" in the wheat production for North America, 25O,OOO bushels of which is in the United States from the June forecast, and a further shrinkage in European wheat and rye production of 300,0O0,00O bushels outside Russia.
 The high cost of living was not discussed at the regular Tuesday cabinet meeting, but Attorney-Gen- eral Palmer remained after the meet ing to confer with the president and presented memoranda prepared by the subcommittee, stating what the government was doing and what it proposes 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 hoarding and profiteering as pro- hibited under the "Lever food control act" and prosecutions will be institu- ted without delay.
 Attorney General Palmer declined to disclose what remedial laws were suggested to the president, or to go into details as to how the depart ment would proceed under the exist ing laws, beyond saying that operat- ing under the Lever act did not mean the function of the food administra- ton would be assumed by the depart n'ent of justice.
 Secretary Humility said after Dir ector Barnes had left the president, that no statement would be forthcom- irg from the white house tonight beyond the mere announcement that the president twill address message to congress as soon as he has time to write it." It was not announced whether the president would go be- fore congress or send written con- munication.
 Barnes Quotes Prices.
 Director Barnes, in making public his statement regarding the world wheat situation, said that the wheat c1op in the United States is not short, and that 1,O00,O0O,OOO bushels was assured. There fla sno warrant he said, however, for statements that the price had been inflated. He an- nounced definitely that as far as he could see, there was no hope for a l reduction in the near future, and that he could not sell wheat at a price be- low the guarantee.
 Figures were given by Mir. Barnes on the world price as follows: ;. Average farm price to American farmer under guarantee, $2.O5 a l bushel.
 Average farm price in the United Kingdom during the last calendar year $228.
 Average price for four biz produc- ing countries, United States, Canada. Argentina and Australia, producing ,500,000,000 bushels, SEA.
 Average grower price (largely guaranteed) of Europe's fifteen con- sumlng countries, producing 800 .OOO.- 900 bushels, $3.75.
 Average of all wheat growers weighted according to the size of their contribution to the total cronl| of the world, works out an averageil world grower price of $2.46. I|
 Argentine wheat, with longer vtoy- age and higher freight rates, the haInes statement said, costs deliver ed in Europe fully 50 cents. more than American wheat delivered in Europe There is no support for "the theory of