The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-08-17
Fifty Cents a Bushel
More for Wheat Wont
Raise Cost of Bread
Confidential Message of n. B. Updike of The Omaha
Bee Falls Into Hands of Press Associations Use
1t in Campaign TO Boost Prices for
Farmers.
Instead Of Lowering Bread Price, Raise Wheat
Farmers.

the wheat market is in the same con.
ditlon as the gasoline market. 1t
turned out that the tank wagon peo-
rle were making all the big money
between the refinery price and the
filling station price.
1T looks TO me like the baker is
making the money at the present
time. The cost of a barrel of flour is
approximately Sc The flour turned
into bread is retailing at s24. leaving
gap Of slS.
1T Is my understanding that the
baker could pay practically $40 a
barrel for flour and still make good
money. In other words. wheat could
go up so cents bushel without inter-
fering with the retail price of bread.
"On account Of the high price of
labor, l do not think the consumer
is kicking ON an Scent loaf of bread.
believe this is the reason there is
such a big demand for milling wheat.
As ! understand 1t, the mills are hav.
ing no trouble to sell the flour as fast
as they can make it, to bakers.
Il wish you would check this up
auound there and see IL I am wrong,
and if so. tell me where am wrong .
Farmer Needs More.
Later Mr.. Updike amplified his re-
marks, saying:
More money to the farmer for his
wheat is the biggest need OF this
country today. With that thought
in mind il is easy to see that reduc.
ton i'm the price Of bread would not
benefit the situation. To put down
the price of bread would tend to
lower the price of wheat. There is
now a good demand for flour, and il
the Buy a barrel OF -four" move
ment finds general approval. there
will be still bigger demand.
know one Nebraska miller who at
the present time has orders for
10000 barrels of -four more than
he has manufactured. That alone
represents $4,000 bushels OF
wheat"
Certain practices that have grown
mp in recent years. he explained, have
discourag ged the use Of bread.
"If the restaurants. hotels and rail
roads that now charge an extra fee
for few pieces Of bread would 90
back to their old way Of giving il
away-with their meals. there would
be more bread consumed" he said
Before the war the railroad dining
cars put plenty Of bread on the tables,
and charged nothing extra for il.
Now each dining car is charged up
with certain amount of bread and
il gives it out only when paid for.
The same thing is true of hotels and
many restaurants and this has natur.
ally resulted in less bread eating than
formerly"
4 Bakers Estimate.
Following Is the way one baker as
liminates thu division of cost in the
manufacture of bread.
sugar. Iori and ether ingredients iscs
Labor and baking cost ............ lss.
Delivery. bad accounts. saiesmen's
.overhesd. office expense and interes.
investment .s.......4..... &c
Deprrciation Of plant. etc. ......s.#.z. te,
II is 10 be noticed. however. tina,
the cost OF flour is variable factor
Thus. it might amount TO IS per cent
Of the cost OF bread at one time. and
when wheat falls and flour with IL
might amount 70. much less In proper
ton. Assuming that -four represents
one-fourth the cost OF bread & 40 per
cent increase In the price Of floul
would only be 10 per cent increase
in the cost OF producing bread.
Some estimates are that 300 losves
Of bread are made from n barrel oi
flour, The number Of course. varie:
with thu amount Of protein IN the
wheat or water in the loaves. The
lowest estimate is 940 loaves from 8
barrel.