Evening star., 1925-10-05
ADVANCE IN PRICE
OF BREAD UNLIKELY
Sales Monopoly Declared MOI
Aim of Huge Merger.
Economies Sought.
BY j. G. ROYLEs.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, October 5.-Monopoly
in the sale of bread is not sought in
the formation OF the General Baking
Corporation. incorporation OF which
was announced today. according to
those nearest to the situation. Neither
an advance in bread prices nor the
exercise Of dominant pressure on tho
grain and flour market is it's object.
They declared that they hoped
through consolidation Of three huge
baking concerns to effect economies
resulting from handling one Of the
main items Of human food on a broad
basis OF production, distribution and
advertising.
solidates the Ward Baking Corpora
ton, the Continental Baking Corpora
ton and the General Baking Company.
the assets Of which have an aggregate
value Of 100000. 900, it will become
the largest baker Of bread In the
world, with 157 plants employing
90 500 workers. The output OF these
plants, however. would amount only
to 10 per cent of the bread business
Of the United States
Calls Monopoly Impossible.
William B. Ward, former president
Of the Ward Baking Corporation and
one OF the leading movers OF the pro
posed merger. reiterated to the writer
that bread Is one commodity in which
there can be no monopoly.
1T is the one business" he said.
lin which your customers are also
your competitors. If Il housewife is
not satisfied with the bread she buys,
she can and will bake her own"
In spite of the growth of the sales
OF bakers bread, nearly half the
amount consumed still is prepared by
the housewives of the country.
Much Financing Seen.
Those closely associated with the
new corpora ton declared that one
reason for the announcement of the
proposed merger at this time was
that the price of wheat had dropped
sharply from high levels OF the year.
They pointed out that terrific
amount of financing would be required
to consumate the merger. Much
of the money required they expect TO
come from the public through sale
of securities and they state frankly
they anticipate less difficulty in this
with wheat at its present level than
if it were attempted when that grain
sold at or near s. a bushel.
Even Prices Predicted.
a broad scale. they stated, would tend
to stabilize bread prices. since ad
vantageous buying in large quantities
would enable the plants involved to
iron out the fluctuations in wheat and
-four and make profit without pass
ing on advance in materials to bread
consumers. They pointed out no
general advance in bread had taken
place. even with wheat at s.. There
seems little prospect that bread
prices will be advanced as a result Of
the contemplated consolidation. The
Ward Baking Corporation last week
inaugurated cut in bread prices in
Chicago and some other localities.
Mr.. Ward states that it is only the
hort-sishted baker who fails TO
realize that the successful policy lies
not III boosting profits and making Il
wide margin of profit on each sale.
but in stabiliZing prices. keeping up
food values. insuring sanitary baking
and increasing consumers.
Ward Heavy Investor.
II is as yet uncertain just what posi-
ton Ward will hold in the new com
pany, but he probably will be chair
man of its board. At least $4,000, 900
Of his money is on deposit here to
guarantee the taking over of the Gen
eral Baking Co. stock, the first step
in the merger, and he is sure to have
dominant part in framing its policy.
Since he has followed the policy out
lined successfully for years, it is doubt
full if he would sanction a change in
1t now.
The new merger probably will he
followed by other consolidation in
various parts of the country. Many
plants already have been placed under
one control management in the Mid
west and the Pacific Northwest to cut
overhead. and -four men and bakers
expect wide extension Of that policy.
Copyright. 1925l