Evening star., 1933-08-27
UNjUST|F|ED BREAD
PRICE BOOST SEEN
AS RECOVERY BLOW
Local Consumers Council
Says Bakers Must Prove
New Level Aids Farmers.
DR.. HOWE ASKS PROBE
OF CENT.LOAF INCREASE
Holds Capital Had Right to Ex-
peet Delay in Return to
Higher Rate.

"Unless Washington bakers can justify
the increase in the price of bread, they
are attacking the very foundation of
the administrations recovery policies"
the Consumers Council Of Washington
declared yesterday in statement issued
by the chairman Mrs John Boyle, jr.
The statement followed announce
ment by Dr. Frederic c. HIVE, con-
sumers' counsel of the Agriculture Ad-
justment Administration, that he had
asked Henry Stude, president of the
American Bakers Association, to investi-
gate 1-cent increase in the wholesale
price of the pound loaf in Washington.
The Washington press announces an
increase in the wholesale price of bread
of cent on the pound loaf" DR.. Howe
said in his letter. You have asked us
to bring to your attention bread price
increases as reported to us throughout
the country, so that your association
can make an investigation into the
justification for these price advances. to
oCtCl AllIlC HliCGIlNl lAiC b1hCAo oAN AA6
up to the general assurance you gave
the Secretary that they would advance
their prices no more than the increased
material and labor costs justified.
Thinks Probe Needed.
IT feel sure that you will want to
look into the justification of the ad-
vance in this Washington price, and
that in considering it. you will want to
take into consideration the basic price"
DR.. Howe then quoted the average
prices for Washington, reported by the
Department of Labor, previous to the
price advance in bread. The Depart
ment of Labor reports, DR.. Howe said,
show that Washington has had to pay
q higher price during the depression,
when the price of -four dropped to
low level, than the 81 cities of the
country they cover"
In 1881, he pointed out, the average
of 81 cities stood at 76 cents per pound
loaf; in Washington it was 8.3 cents.
In 1882 the average for the 81 cities
was 68 cents; in Washington it was
~ cents Not until July of this year
did the general average catch up, to
the Washington figure, he declared.
Sees Explanation Needed.
CONSUMERS in Washington might
therefore be justified in expecting that
their bakers would not jack up their
prices as rapidly as other cities with
lower averages" DR.. Howe said. They
deserve an explanation OF this price ao-
vance from the bakers.
Il should appreciate it If you would
look into this matter and give us a re-
port on the basis for this price advance.
showing what increase in material and
labor costs Washington bakers nave 10
meet at the present time"
The local Consumers Council state
ment follows:
unless Washington bakers can
Justify the increase in the price OF
bread. they are attacking the very
eovery policies.
Who benefits from the increased
price of bread announced Friday? Does
the farmer get the extra pennies that
are being levied upon every house
hold in the city? Or do these pennies
70 into the pockets of the bakers and
the millers and the wholesalers?
Farmer Should Get Boost
Increased prices for foodStuffs are
justified only if the farmer actually re-
eeives the higher prices consumers pay.
They are not justified if the benefit goes
to the middleman.
THE Consumers Council of Washing
ton, D. c., recognizes. of course, that
as a result of the operation OF the
~ r. A. codes the cost of doing business
for the middleman must increase. This
added cost will, of course, be passed on
to the consumer in the form Of higher
prices.
1T is, however, contrary to the re-
covery policies of the administration to
t.1; Of tn
creased operating costs. Nothing but
the bare cost is to be passed on to the
consumer.
THE first question the Consumers
Council asks is, therefore, Is the farmer
getting his full share of our extra
pennies? This is a question that can
be answered only by the Federal
authority.
THE next question is, How much has
the cost of doing business here In
Washington been increased by the
N. r. A. codes?
This is a question the bakeries and
retailers must answer. 1t is the ques-
ton the Consumers Council asks them
In the name of every householder in the
District
Local Price Low August 9.
Until the penny was added to the
price of the 16-ounce loaf Washington
bread prices we're fairly low compared
to those prevailing in the % cities used
as the basis for the fair price list issued
August by the Agricultural Adjust
ment Administration.
Those prices ranged from 81 cents
per loaf in Seattle, Wash. to 65 cents
in Dallas. Tex. The price in Wash
ington was 10 cents. comparing with an
average price Of 10 cents for the %
cities. Washington's price, in other
words was seven-tenths of cent be-
low the average.
The extra penny now changes
Washingtons position, placing it above
the average by three-tenthS of cent
per pound loaf.
"It is up to the bakeries to explain
in detail the reason for the advance.
The Consumers Council is being
organized in order that consumers
may find out about this ard any other
price increase and to advise its men,
bers whether they are being fairly