Evening star., 1933-07-06
U. S. READY TO FIGHT
BREAD PROFITEERS;
EVIDENCE AWAITED
Continued From First Page.)

be until agreements or codes had been
formally approved and promulgated"
Farm administrators refused to make
public the complaints they said had
been turned over to the Department of
Justice.
1t was said, however, they had come
from a number Of States and that
bakers in announcing actual or prospec-
tive price increases had generally
blamed the 30-cent per bushel pro-
effective at midnight Saturday, as q
principal reason for the increase.
Materials Advance.
The recent rise in the price Of wheat
and other commodities used in the
manufacture of bread. including salt,
sugar, eggs, lard. butter and milk also
has been emphasized.
A group of experts Is preparing for
Wallce summary of the price changes
of all elements entering into the manu-
facture of bread which will be an
nounced later. Wallace has estimated
that the increase in the price of wheat
plus the processing tax should not in
crease the price of a pound loaf of
bread more than e cents
Wallace said he had received a mes
sage from the Iowa Bakers Association
IN response to warning he sent them
Saturday after the association had an
nounced an increase from to cents
for a pound loaf effective July 5.
Iowa bakers postponed the increase
and Wallace said the president of the
association has disclosed that he will
attempt to see that advances made on
the part of members are kept within
the actual increase in costs and has
given assurance that full cooperation
will be given the agricultural ADJUST
ment administration"
In his message to Iowa bakers, WAL
lace protested that the increase was
excessive and warned that antitrust
laws "are still in effect" Yesterday,
after word that the Iowa increases had
been postponed. administrators said
that he expressed appreciation of the
attitude shown by the Iowa association
executive"
Consumer Protected"
Wallace also said he had received
inquiries from baking firms which said
they could absorb the tax and asked
whether they would be within their
rights to refuse to join with other
bakers in raising prices" Wallace re-
piled that certainly no legal compul-
sion exists TO increase prices"
This administration" Peek said
has pledged protection of definite guar
antees for the consumer were written
into the adjustment act itself.
Those guarantees should be fulfilled.
We do not believe that there is any
justification for some OF the bread price
Increases that have been reported. Let
me again call attention to the fact
that in Kansas City from l909-l913
to 1892, while wheat prices fell more
than so per cent, bread prices rose 10
per cent.
This increase of bread prices in
times Of falling wheat prices shows
why We must be on guard against
pyramiding in period of rising wheat
prices. This is no time to increase
the profit on bread"
Wallace said:
The agricultural adjustment act did
nct repeal the antitrust laws. It did
su~pcnd those laws only under specific
ccndit.onc, as follows:
y. Presentation of a marketing
ser-lmsno by the concerns in an in
Cus,r..'.
80 Public hearings on such proposed
agreement by the Secretary.
"3. Formal approval of the agree
ment. as modified to meet the Secre-
tary'S requirements, and accepted by
the concerns affected.
4. Signing of the agreement by the
Secretary in the form approved
These steps have not yet been COM
pleted by any industry. Until they
are completed. the antitrust laws re-
main IN full effect as far as that indus
try is concerned"