Evening star., 1933-07-09
D. c. BREAD PRICES
NOT TO ADVANCE
FOR PRESENT TIME
Federal Officials Move to
Check Profiteering in
General Rise.

As Secretary Of Agriculture Wallace
and other Federal officials moved last
night to check unwarranted increases in
retail bread prices throughout the Ma
ton, assurance was given by officials Of
local bakeries and chain stores that no
price increases are expected locally early
this week
Secretary Wallace said that he had
been informed bakers in some instances
were using the processing tax on wheat
Of 80 cents bushels, which went into
effect at midnight last night, unfairly
as an excuse for pyramiding the tax
The processing tax in no case, he said,
should warrant an increase in bread
prices Of more than half cent a loaf.
Warn of PROTECTING.
Backed by Secretary Wallace's warm
ing that bread proiteering will not be
tolerated, DR.. Frederic c. Howe, newly
appointed consumers counsel of the
agricultural adjustment act organiZa-
price increases here or elsewhere will
be closely scrutinized
Officials of the large baking concerns
in the District last night said there
would be no increase in prices of bread
here early next week nor that any plans
were being discussed for a concerted
local increase in bread prices. Reports
that retail bread prices would be in
creased here Monday were denied by
managers of local branches of the large
chain grocery stores. No orders for
increased bread prices had been re-
ceived by managers of any Of large
number of local chain stores who were
questioned last night.
Secretary Wallace characterized as
unreasonable, unfair and unnecessary"
increases in the cost Of l-pound loaves
Of bread of more than is cents to IA
cents over the May price. He added
that the advance in wheat prices since
the middle of May should represent an
additional cost per loaf Of less than
one-half a cent" and the advance In
the cost of other ngredients-lard, eggs
and milk-one-eighth to one-fourth
cent per loaf
Declared Minor Factor.
In the era Of declining prices the
baking industry's own argument was
that the wheat price is a minor factor
in bread cost" Secretary Wallace told
newspaperrnen. If that argument was
true in 1881 it should also be true to-
day when wheat prices have turned up
ward"
Wallace has turned over to Attorney
General Cummings complaints about
increases in bread prices, announced
htr nf ho wi
recommendations that If found true
prosecution should be taken under the
antitrust laws.
He said an increase Of 60 per cent
in bread prices had been reported plan
ned by some baking groups and that
if this were put into effect generally
lit would bring the average price of
bread far above any figure warranted
by the increase in the price of wheat"
DR.. Howe. when his attention was
called to reports of boosted bread prices
in Baltimore and Philadelphia, said
yesterday that he has been making a
special study of all such increases un-
der authority Of section of the emer
gency farm act aimed at prevention of
profiteering in foodstuffs.
Other Foods to Be Watched.
Milk, meat and other foods vital to
the daily diet will be included in the
Investigations planned by the Govern
ment, Dr.. Howe declared. Milk prices,
he said. would be regulated through
trade agreements specifying prices that
should be paid the farmer and ultimate
cost of bottle of milk to the consumer.
While no evidence has reached him
of any bread price increases in Wash
ington, Dr. Howe has received reports
of plans by certain baking groups to
shoot prices up as high as so per cent.
If put into effect generally, this
would bring the average price of bread
far above any figure warranted by the
increase in the price of wheat" it was
announced yesterday by George N. Peek
and Charles j. Brand, administrators
of the farm act.
1T is interesting to know what the
baking industry had to say as to chang
ing bread prices when the price of
wheat was falling" Mr.. Peek said. I'm
the Spring of 1881 a subcommittee of
the Senate Agriculture Committee in
vestigated the price of bread and re-
ported that the price through 1880 had
not declined as rapidly as the price of
the wheat included in the bread had
declined"
Periodical Quoted.
Commenting on this report, Mr. Peek
pointed cut, the Bakers Review, the or
gan of the baking industry, said in the
April 1881. issue:
Let us quote the following few SEN
tences from newspaper editorials to show
Continued on Page 2, Column A.