Evening star., 1933-07-14
TRADE RESTRAINT
ALONE PROBED BY
U. S. IN BREAD QUIZ
Special Assistant to Attor.
ney General Cites Purpose
of Department.
AGRICULTURAL AGENCY
TO INVESTIGATE PRICES
Statement Made to Clarity Situa-
ton as to Moves of Federal
Government.

The Department of Justices investi-
cation into the bread industry in
Washington Is with a view to learning
If there Is "a combination in restraint
Of trade" here and to that extent only
is interested in the trend of bread
prices, it was announced today by
James Lawrence Fly, special assistant
to the Attorney General
An inquiry to determine the fairness
of bread price increases throughout the
country is being made by another Fed
eral agency, the Agricultural Adjust
ment Administration.
F1y'S statement was made to clarity
the situation regarding the concerted
move by the Federal Government to
investigate the baking industry.
Price Raise Seen.
The Justice Department inquiry was
precipitated. however. by information
indicating local bakers were planning
to raise bread prices and has been re-
garded as an implied threat against
''unjustified" increases.
Fly has said that in view of increased
costs Of ingredients he would not be
surprised to see some increase in price
here. but he emphasized that the
amount of the increase is not his
primary concern
The special assistant today denied re-
ports that the Department of Justice
has announced its approval of a mod
crate" increase in bread prices.
1T is my understanding that We
should investigate every substantial
complaint as to price increase without
forming anv conclusions in advance as
to the facts" he said. land without
forming any advance conclusions as to
action to be taken later"
He declared there is no foundation
for reports that the Justice Department
will try to limit bread price increases.
The amount of the price increase,
if any," he said, will interest us chiefly
in its bearing upon the primary ques-
ton as to whether or not the price was
fixed by concert of action. 1t is natur-
ally more likely that ordinary competi-
tive forces would produce an increased
price commensurate with increased
costs than that it would produce an in
crease in price trebling the increase in
cost"
The price inquiry of the Agricultural
Adjustment Administration is being
conducted under direction of Dr. Fred
eric c. Howe, consumers counsel OF the
trade agreements unit Size of loaves
also is being looked into.
No local increases have been reported
to the Government Investigators as yet.
Load Sizes Increased.
In virtually all cases where bread
price increases of 3 cents or more have
been reported. bakers have increased the
size of their ioaves. Secretary Of Agri-
culture Wallace said last night in max
ing public a report of an investigation
by Henry Stude president of the Amer
ican Bakers Association. covering 10
places where increases were reported.
1t said that almost all cases of re-
ported excessive increases had proved
unfounded. Wallace has contended
some bakers were using the 30-cent a
bushel tax on wheat milling as an
excuse for unreasonable" price in
creases.
At the same time Stude made public
telegram sent to mayors of AZ OF 49
cities to whom Wallace sent messages
several days ago requesting informa-
ton on bread prices there. In it Stude
said
II feel sure that the baker, who is a
citizen and taxpayer of your city. will
be glad to supply you with this in
formation. The baker merely occupies
the unenviable position Of collector of
this new tax which. with increased
bread prices, all goes to the farmer.
This increased purchasing power, we
believe. will be reflected back to your
citizens.
THE American Bakers Association
Is just as anxious as Secretary Wallace
to prevent profiteering and pyramiding." B."
Stude reported that the increase in
the size of loaves had been generally
from IL to Is ounces. He said the H.
ounce loaf, sold at cents, was "spe-
cial depression product" which really
cost the consumers 62a cents per pound
Of bread.
I'm comparison with this" he said,
"a one-pound loaf at 8 cents is y
cents per pound higher in price"
He said that investigation in the II
centers showed the increases mostly to
be less than this.
His report covered Hancock, Md;
Atlantic City, N. j.; Anadorko Okla. !;
Rolfe, Iowa; Little Rock, Ark; SPRING
field. Mo-: Mcpherson, Kans.: Oshkosh,
Wis; Philadelphia and Miles City,