Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-11
49 CITIES WARNED
ON BREAD BOOSTS.
Wallace Tells Mayors U. S.
Will Use Powers Against
UnWarranted Hikes.
Continued From First Page.)

Oshkosh Wisconsin; Philadelphia; ;
Miles City, Montana, and Charleston,
West Virginia.
Farm administrators. watching bread
| price increases to join in prosecution OF
any that are "unwarranted' said they
are satisfied with the advance In rye
| prices in Chicago and see no reason for
being disturbed on grounds that 1t Will
| interfere with their wheat plans.
One reason attributed for the rise
is expectation that with the processing
tax on wheat. there will be DISPOSE
ton Tor consumers to turn to rye bread.
Federal administrators take the posi-
ton there will be no marked movement
| i'll that direction, that the American
habit Of eating white bread is fixed,
that there Is no justification for an In
crease of more than a half cent q
pound loaf In white bread because OF
| the wheat tax, and that. therefore,
f.; creased greatly because of the levy.
| However, attention was called to
powers in the farm act provided them
which makes it possible to levy>a COM
penSatory processing tax on rye. al
| though it Is not listed as one Of the
seven basic commodities in the act.
The law authorizes Secretary Wallace
| to ascertain from time to time whether
the payment of the processing tax upon
any basic agricultural commodity IS
causing, or will cause to the professors
| thereof. disadvantages in competition
from competing commodities by reason
of excessive shifts in consumption be-
| tween such commodities or products
thereof"
1t empowers Wallace. in case he
finds such disadvantages in competi-
ton, to order compromising rate Of
tax on the processing of the competing
| commodity to offset the disadvantages
In competition. Thus he could impose
q tax on rye. but administrators take
the position that this will be unneceS-
sary, and that the aggregate output OF
rye is minor compared with wheat.
Will Try to Check Advances.
Frederick Clemson Howe. who heads
a section in the farm administration
to protect the interests of consumers
said every effort will be made to check
advances in food prices where they are
unjustifled.'
Howe asserted it Is obvious that
dealers in many cities are taking ad-
vantage Of the Governments efforts to
raise commodity prices and are endeav-
oring to exploit the consumer without
corresponding gains W Tie ldIILeT OI
the worker.
Standard weights of the bread loaves
are being reduced. An examination OF
price advances throughout the country
show that they range from l to 4 cents
on the pound loaf. The latter figure
is an extreme example of unjustifiable
| increase.
Half Cent Estimated.
THE efforts Of the agricultural ad-
miniStration for recovery beneficial To
all classes are not to be frustrated by
profiteers who choose to put themselves
outside of the efforts of the Nation to
re-establish proper standard of living
for all classes"
Wallace has estimated the processing
tax. If reflected directly in the cost OF
a pound loaf Of bread, should not in
crease its price more than one-hali
cent. The increase III prices Of wheat
and other ingredients of bread from
May up to last Saturday justify an
increase of "a little over half cent,
he said, in taking the position that in
creaSes are unreasonable where they
exceed from rs to / "A cents per loaf
Washington baking concerns today
were still awaiting developments in the
bread price situation. There has been
no increase here.