Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-03-02
MONOPOLY OF FOOD
DECLARED. GAINING
Capper Committee Asks Fur
ther Probe by Depart
ment of Justice.


duct leaves the farmer until 1t reaches
the consumer. The retailer of bread
charges a gross profit of at least / cent
per pound loaf This amount, which
the retailer obtains for allowing the
bread to be placed in his store anc
for delivering it to the customer is al
present prices equivalent to the total
amount the farmer receives for interS ST
on his investment, for preparing the
land, planting, tending, harvesting and
delivering to market the wheat con-
tanned in 1-pound loaf of bread.
What Farmer Receives.
ION the average the farmer receives
less than half the retail price of the
milk sold for fluid purposes, although
he has an investment much greater
than that of the distributor. There is
too great a difference between the gross
profit of the retail meat dealer and
the amount received by the livestock
producer for the equivalent in meat.
Similar conditions hold in the market
ing of other farm products, and the
committee believes that a thorough
study of the marketing of farm pro-
ducts is worthy of most careful con-
sideration.
THE committee is requesting the APP
propriate departments of the Govern
ment to observe price trends and COM
petitive conditions cloSely during the
coming months, in order that infor-
nation may be available as to whether
the suggestions and recommendations
of the committee are being fully carried
out and whether the price reductions
already made are maintained"
In the text of its report the COM
mittee discussed the special prices at
which bread is sold to the Government
in large quantities in Washington and
elsewhere. The committee expressed
the belief that If the argument of the
bakers regarding these prices to the
Government is fully accepted lit would
appear that the cities in which such
contracts existed ought to enjoy lower
price Of bread, as much waste is hereby
avoided. This does not appear to be
the case, and in fact the present price
of bread in Washington Is higher than
It is for the average of the country"
Contract Prices Analysed.
Analysing the Government contract
prices for bread, the committee re-
ported, as follows:
The different departments of the
Government buy bread in Washington
and elsewhere on contract at prices ma
terially lower than the price charged by
the bakeries to the retailer. In WASH
ington the Marine Corps is paying "A
cents per pound; the Navy Department
4.29 cents, and the General Supply
Committee cents. The quantities pur-
chased daily are large and must be
planned for by the bakery.
THE bakeries claim that the price at
which this bread is sold under contract
to the Government is below actual cost
and there is q loss on every loaf. Their
explanation is that the bread thus sold
= g. A6n fe tttrlen1d fTnSI1
that Is, it is bread that has been sent
out on the delivery wagons and has
been returned to the bakery unsold (;
that it is still fresh, but that it could
not be taken on the next delivery in
fairness to the retail stores In other
words, the bakers claim that this bread
would be total loss to them unless 1t
Is disposed of to the Government and
that, therefore, any price they get is
better than nothing.
Some Justification Seen.
'aThere Is undoubtedly some degree OF
justification to this argument OF the
bakers, but it must be remembered that
all bakeries do not have Government
contracts and IL would appear reason
able to assume that where q contract
exists for the daily delivery of several
hundred pounds of bread that this
quantity Is, at least in part. added to
the amount Of bread that would other
wise be baked.
Furthermore, If the argument of the
bakers is to be fully accepted, it would
appear that the cities in which such
contracts existed ought to enjoy lower
price Of bread, as much waste Is there
by avoided. This does not appear to
be the case, and in fact the present
price Of bread in Washington Is higher
than it is for the average Of the
country"
The committee said its principal rea-
son for recommending that the Federal
Trade Commission and Department Of
Justice study the distribution Of milk
and milk products sis the recent con-
solidation Of the milk distributing COM
panies into a few powerful organiza-
throughout the country, which prac-
tically control and dominate the dis
tribution Of milk"
Milk Supply in District.
Touching on the milk supply Of the
District Of Columbia the committee
''The city of washington has not
escaped, and within the past few weeks
plans have been consummated, which
place rs per cent of the milk distributed
in Washington in the hands Of one
corporation and its directors. The re-
manning IS per cent is in the hands Of
three apparently independent COM
panies. The head Of the largest Of
these, serving approximately one-haH
OF this amount, stated to the subcom-
mittee that q proposition had been
made to absorb his dairy, but that ne
had declined it.
THE whole plan, as 1t is being un-
folded. indicates that through pur-
chases, mergers. consultations and
holding companies. there has been de-
yeloped q vast organization, dominated
by few groups, which appear TO be
working toward q common end.
Producers Are Alert.
THE most hopeful outlook developed
for the committee, by testimony Of wit
nesSes and evidence secured from other
sources, Is the part the co-operatives
are taking in an attempt 10 meet the
changing conditions and TO get a fair
price for the producers.
1T was shown conclusively that the
cooperative stabilizes the market and
strengthens the bargaining ability of
the producers. In the City of WASH
ington, where approximately "a per cent
of the total milk supply is furnished by
one cooperative, the committee found
that the farmers are receiving approx
nately 0 cents per quart for tbs milk
sold for fluid purposes. which well in
formed witness stated is the highest
price paid in the United States The
spread between the price paid to the
producer and the retail price of milk in
Washington was found to be approx
mately s cents a quart. This Is less
than In most cities, although Washing
ton Is said to have q n1tlk-inspection
system and sanitary restrictions which
make 1t one of the most expensive cities
in the country in which to operate a
milk distributing plant"
The committee touched briefly on It's
study Of sugar prices, declaring that