Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-12
WAGE SCALE HELD
BAR TO BREAD CUT
Baking Corporation Official
Says Pay Rolls Prevent
Reducing Prices.

Contending that the wage scale paid
employees has prevented a general de-
crease in bread prices In Washington,
M. Lee Marshall Of the Continental
Baking Corporation at the same time
told the Senate subcommittee studying
food prices this afternoon that he would
make a reduction within a few days in
the price of whole wheat bread in
Washington to equalize it with the price
Of white bread.
Mr.. Marshall made the following ref
erence to this city:
Now, in the City of Washington
there has been no general decrease in
the price of bread. The high wage
scale for bakeShop and delivery en-
ployes prevents this. But even in Wash
ington, we have increased the quality
of our bread by the use of better in
gradients and by longer baking time
which insures greater palatability and
digestibility.
Price to Be Cut.
''I have looked into the price of
whole wheat bread in Washington and
I find that it Is l cent higher than
white bread. There is no justification
for this except possibly the higher
production cost on the small quantity
sold. am glad this committee has
see that the price is reduced next Mon
day. If the same differential obtains
in any other city where Continental
owns bakeries, I shall equalize it on
my return to my Office
Mr.. Marshall, who is chairman of
the board Of that corporation, told
Chairman Capper that his concern has
reduced bread prices in 81 bakeries it
operates and has increased weights in
SO. He said this meant that we have
reflected more than the saving in the
cost of wer-priced -four"
Henry Stude Of the American Bakers
Association and Frederic H. Frazier Of
the General Baking Corporation yes
terday told the committee the declining
price Of -four has been fully reflected
in the price Of bread.
They testified the present bread price
cannot be compared with the pre-war
cost because of the difference in
quality.
Stude presented statistics, which he
said showed bread of the same quality
sold in 1918 for Sc cents a pound is
now selling on the average in 81 cities
for 5.4 cents, but that the highest
quality bread costs on the average 10
cents a pound.
Z Both witnesses denied the bakers
dictate the price of bread or conspire
to hold it up.
Competition is too keen" they said
Frazier said his company has af-
fected a general reduction In the price
of bread of ! cent pound during re-
cent years, but admitted there were
exceptions.
your company" Chairman Capper
said, sis subject to some criticism for
not going along with the general trend
of prices within the last year and for
apparently maintaining the same price
as o year ago."
Appeals for Reduction.
Capper appealed to Frazier to reduce
his wholesale prices cent q pound, ex-
pressing the view 1t would not only de-
velop additional profits, but would aid
distress.
Frazier testified that retailers Of
bread average between / and cents
profit ON each loaf and estimated the
minimum profit the baker should get
ut 10 per cent.
Senator Townsend, Republican, Della
ware, characterized the profits as ex-
scessive. He questioned Frazier at length
on the profits his company has made
since its organization.
Frazier agreed 500 invested in the
General Baking Co. in 1915 would be
worth about $4,000 today, but said that
was nothing compared to what 1t would
other industries.
He agreed also that much of the capt.
tai structure Of the company today Is
''pure water"
The baker testified that last December
his company would receive $60.40 for
bread with $3.50 worth of -four In II,
as compared with 366.07 1t was receiving
IN October, 1929, for bread with 1880
worth Of -four in it.
He said this represented a decrease
Of So in receipts for drop Of SO in the
cost Of -four.
Flour Only One Factor.
Stude commended the price Of -four Is
only one factor in the cost of bread, and
that bakers have not only adopted
higher standards Of production and dis
tribution. but are faced with higher
labor costs.
Bakers are required to use more en-
ployes than formerly because Of the
demands for various kinds Of bread, he
added
Capper placed in the record Census
Bureau Statistics showing that while
the average years salary of bakery en-
ployeS has increased from $500 to 81 ,375
since 1914, the value of his production
has increased from $3.50 to 1888.
Stude said bakers are paying back in
wages 18 per cent Of their profits as
compared with Is per cent in 1928.
He challenged the bread price sta
tistics presented to the committee by
Commissioner Of Labor Statistics
Stewart, declaring they were based en-
tirely on the highest quality of bread.
Capper commented that when -four
prices went UP in 1928 the increase was
reflected almost instantly" in the price