The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-28
AMERICAN FARMER
AT BRITISH MERCY
Through Wilson Administra-
ton Flour Mills in U. s.
Have Lost Export Trade.
PARTIALITY IN RATES
Liverpool Market Chief Power
in Handling Wheat and
Price Fixing.

Special Despatch TO THE NEw York HERALD.
CHICAGO, Oct. 27.--There are two
great markets for the American farm
ers' wheat-the American flour mills and
the export business which centres in
Liverpool. BY action Of the Wilson Ad-
ministration the American flour mills
have been put out OF business, as far as
the export of -four is concerned. That
leaves the Liverpool wheat market the
great power in handling wheat and FIX
ing wheat prices, and wheat In Liver
pool is in the hands of British Gov
eminent commission. In other words
the Wilson Administration has left the
American farmer at the mercy OF the
British Government.
The situation was explained to-day as
follows by A. r. Husband. secretary OF
the AIillers' National Federation, In Chi
cago:
1.-THE action of President Wilson's Ship
ping Board in discriminating by It's
freight rates against the expectation OF
American flour. has placed the Ma
tional Administration in the position OF
working hand In hand with the British
Royal Commission against the best in
terests of the American wheat raiser
and the milling industry of the United
States on which the farmer Is depend
ant for the sale of his product. The
price of wheat in the United States Is In
reality fixed in Liverpool, and to Liver
pool goes American wheat at price
fixed by the British. Consequently
American farmers have lost approx
mately ninety cents bushel on their
wheat during the last few weeks, owing
to the decline in the price. Moreover,
approximately one million tons OF mill
feed is lost to American dairymen be-
cause of the expectation of wheat in
flour, making 1t possible for European
dairymen to make their products at 4
cost below that of American producers.
as evidenced by the recent arrival in
this country of butter from Denmark at
o price below the American market.
For many years before the war the
expectation or -four was about equal TO
that of wheat. AS far back as 1880
40 per cent. of the total export Of wheat
was in the form of -four. The percentage
varied according to the world crop
conditions in different years.
During the war ocean rates were con-
trolled by Government agencies and the
demand for -four was so great that the
rates were not a serious consideration,
As long as the United States Grain Cor
continued, but as soon as 1t went out of
existence the Shipping Board permitted
the United States merchant marine To
carry millions OF bushels of wheat ia
Europe and on June IA OF this year de-
cided the rate for -four at rs cents q
hundred above that for wheat was justi-
fed This means discrimination in
ocean rates of so cents barrel against
flour.
This discrimination in ocean rates
against flour practically kills the ex-
port flour business except in limited
quantities. The expectation of flour in
1919 totalled 26,oo0o00 barrels. Now il
amounts to practically nothing, and the
United States Shipping Board, by sur
rendering to the British Royal Com
mission, is permitting British millers to
buy wheat in this country at prac-
tically the price fixed by Great Britain
and to take away from the United
states the -four markets of Europe.
1.-THE expectation OF wheat from the
single port Of New Orleans in July.
August and September OF this year
totalled more than the whole annual
expectation from that port in normal
years. Yet with all this wheat going
across the seas from New Orleans only
eight barrels of flour were in the car
goes In September"