The Connecticut labor news., 1924-05-24
By International Labor News Service

Washington, D. C., May 24-Low
 prices of wheat have benefited the bread
 buyer very little, the Federal Trade | Commission declares in report on the
 wheat flour milling industry submitted
 to the United States Senate. The Commissions summary of the
 report states that it deals primarily with the costs and profits of commercial flour ] milling concerns, and shows marked de-
 cline in flour coss resulting from the un- precedented decline in wheat prices since 1920. From anuary, 1919, to September, 1922, the monthly average quoted prices of flour declined B per cent in the Northwestern
 Minneapolis district, and 43 per cent in the Southwestern (Kansas City) dis trict; wheat prices declined so per cent in Minneapolis. and 55 per cent in ansas City; while bread prices declined about 2 per cent in Minneapolis, about IS per cent in Kansas City due to a price war, 66 per cent in Boston and 2 per cent in New York City.
 The above comparison shows that the decline i'll wheat prices, so disastrous to the farmer, has benefited the purchaser of bread very little.
 Soon after the Commission sent out its cost and profits report form to flour mill ing cmpanies an effort was made to ham per the inquiry by the publication of an opinion of the attorneys for the Millers National Federation. the leading trade association of the flour industry, advis- ing that "any miller has right to refuse to answer the questionnaire, or any part and to afford no information unless he chooses, but if he desires to accord some information he can give it when, how and as he pleases, but we would advise that under no circumstances the emissaries or representatives or the Federal Trade Commission, or any outsider. be given access to millers' book. papers or docu- ments or be permitted to take any infor- nation or copies"
 MILLERS DISREGARD
 FEERATION'S ADVICE
 Although this advice was given wide publicity practically every company re- quested, including the members of the Federation, disregarded it and cooper in granting access to their books and in assisting the Commissions accountants in the preparation of the reports
 When the Commissions cost and profit report was sent to the wheat flour milling industry certoin flour trode journals and some millers complained of the expense and time which would be required to com pile the data requested. A number of companies having good accounting re- cords returned the schdules completelp filled ollt, within few days, the time re- qoired for their preparation being repost- ed as from 20 to 48 hours for one man. This corresponded with the experience of the Commissions accountants Ill prepar- ing reports for some of the larger flour milling concerns. LARGER MILLS CONTROL
 BUL OF PRODUCTION.
 The number of merchant wheat flour mills decreased from 900 in 1914 to 4,O80 mills in 1921 (the latest Census enumeration), decline of 30 per cent; while the average production per mill in creased from about 16.o00 barrels to 23,- 900 barrels per annum or 36 per cent.
 Although there were about 4,80O ner- chant wheat flour mills in the United States i'll 1921, a CIV companies produced large proportion of the total output. In that year five large flour milling com panies, operating 4o mills and each pro ducing in excess of 100000 barrels. had an aggregate production of over 25,000,- GOO barrels. or nearly B percent of the countrEs total; and eight companies with 87 mills, each producing in. excess of 100000 barrels, had a total production o almost 3O,OOOOOO barrels, or 27 per cent of that total
 FLOUR MILL PROFITS
 SHOW WIDE RANGE
 Extensie data on flour milling invest ment and income for the four-year period 1922, were secured from l08 com panies which produced over 40 per cent of the total wheat flour output the coun- try. The investment and rate of return thereon are shown on two different bases, CD milling investment. and CD company investment. The milling investment in cludes the funds actually used in the milling business, while the company in- vestment is that which the stockholders collectively, as company. have in the business. The milling investment in eludes borrowed investmentD,u
 cludes borrowed funds, but excludes out side investments, while the company in