Evening star., 1933-07-13
BAKERS ASSURE us.
OF COOPERATION
Wallace and Head of Indus.
try Agree Consumer Must
Not Be PenaIized.
Secretary of Agriculture Wallace and

Secretary Of Agriculture Wallace and
the president of the American Bakers
Association are in agreement that the
bread-buyer shall not be unduly penal
lied because Of the tax levied on wheat
processing in the crop reduction pro-
gram
Henry Stude. the baker in letter to
Wallace renewed his promise that the
baker will pass on to the consumer
only so much as he is compelled to
pay-and no more"
mo one" he added, "can prove the
violation of this pledge"
Wallace subsequently explained he
merely had been trying to protect the
consumer in making public complaints
of "unwarranted increases in bread
prices" He expressed qualification that
no one questioned the estimate that
1la-cent rise in the cost of pound
loaf of bread would reflect all Of the
tax paid by the men who turn wheat
into -four
Cooperation Appreciated.
Wallace issued a public statement
shortly after the publication of STUDIES
letter, giving his reason for making
public complaints against "unwarranted
increases in bread prices" He said:
Evidence that the consumers inter-
ests are being safeguarded and indica-
tions of cooperation of bakers in this
regard are source of satisfaction to
this department.
1T is gratifying that the departments
measurement of fair increase in cost to
the consumer, namely one and one
fourth to one and one-half cents a
pound, including tax and wheat price
factors. has not been questioned Ap-
parently it can be accepted that the
maximum increase which is warranted
by rising costs is at present one and
one-half cents per pound loaf
In ether words bread which sold for
six and one-half cents in May might
now fairly sell for eight cents or slightly
less.
Less than one-third Of this leeiti-
mate increase is due to the processing
tax. The remainder is caused by pros
pective imitation and unfavorable
weather."
Letter by Stude.
The letter by Stude to Wallace
follows:
L attach, hereto. complete report
en- the list of cities and bread prices
that you forwarded to me.
In not one single instance is the
statement Of any of your correspondents
borne out. In not one single instance can
the charge of profiteering or pyramid
ing be substantiated.
My pledge to you was, the baker
Will pass on to the consumer only SO
much as he IS compelled to pay-and no
more still stand by that statement
and no one can prove the violation of
this pledge.
When you consider that there are
25,OOO bakers, each reserving to himself
full freedom Of action, all OF them suf-
fering from the effects of depression
and fierce competition, I believe the
showing OF the bakers Is truly remark
able-so remarkable that as the repre-
sentative Of an industry that uses 500
millions OF dollars of farm products and
employs 180, 900 wage earners, am ask
ing II you cannot stop this baseless
inuendo.
Protection Of Consumer.
II realize that the protection Of the
consumer from unwarranted prices. and
the maintenance Of a balance between
farm prices and city prices is your duty,
but to indict the bakers upon suspicion.
to charge them with profiteering upon
reports-not single one of which has
been proverbs highly unfair to one of
the greatest industries of our country.
We bakers-and we alone-unfortu-
nately have had to assume the unenvi-
able task of conveying to the consumer
this new processing tax which is the
forerunner of others yet to come. We
have been caught in the cross-fire of
unfair criticism. Do you not think our
industry entitled to greater con-
sideration?
Developments Here Negative.
Developments in the retail bread situ-
alton in Washington today were de-
scribed as negative" by officials of the
Department of Justice. Investigators Of
the Bureau of Investigation, working
under direct supervision Of James Law
renee Sly, in charge Of the bread price
try, are watching the local situation
to plans for any local increase in bread
prices.
The Department Of Justice is not con-
cerned with increased prices properly
applied, but IS interested in preventing
prices resulting from collusion or COM
binationS in restraint of trade, which
are IN violation Of the antitrust laws,
it was pointed out by Mr.. Sly. It is
on this basis that the investigation Is
proceeding in the National Capital.
Our work Is merely the collection
of facts as to the conditions" Mr.. Sly
explained. There Is nothing we can
do in so far as the local situation is