Evening star., 1934-08-19
HIGHER PRICES HIT
STRICKEN STATES
Business Sales Better Than
Expected, However,
Survey Shows.
BY the Associated Press.

BY the Associated Press.
KANSAS CITY, August l8.-The
drought has come to the city.
The grocer and butcher are posting
higher prices and predicting greater
increases. Scared farmlands of the
West, struck by the worst growing
conditions in Weather Bureau annals,
offer the reason.
A survey today disclosed the ma
terially higher" prices predicted for
1885 py Secretary Wallace already are
evident In the areas that supply most
Of the Nations foodstuffS.
The Associated Press interviewed
two score distributors, professors and
department store managers selected at
random in drought-Stricken States.
Many of the executives saw a bright
side to the drought-its reduction OF
surpluses, as an example. Nearly all
forecast higher prices in the staples
they market.
Even where blazing sun has burned
away the farmers profits, some OF the
comparing favorably with 1888.
Not Bad as Depression.
"We don't look for things to go to
pieces as they did in the worst OF
the depression" a Cheyenne, Wyo.,
distributor commented. at the same
time pointing out commodity prices
had flrmed.
While the Department of Agricul-
ture has announced there will be
plenty of food" the executive council
of the American Federation of Labor
this week expressed itself as "gravely
apprehensive" as to the effect of
drought-infiuenced prices upon the
urban working man.
President Roosevelt has made it
plain he sees no reason for Sky-high
increase in food prices and intends to
halt any profiteering.
The drought generally has weak
ened live stock herds, but producers
claimed definite signs Of recovery in
higher prices for such products as
hogs, which in Kansas City Friday
regained the peak of September, 1881.
p. E. Tovrea, Phoenix, Ariz, packer,
said the advance in hogs and pork was
'due to Government purchases and
the Governments reduction plan and
not to drought conditions"
Meat Increases Seen.
"Meat prices, especially for quality
cuts, are bound to 60 up" Robert M.
Owthwaite, Topeka, Kans., manager
of a packing company, asserted. G.
A. WaldriSS, manager Of similar
plant at Butte, Mont, said prices there
had been ruined" by the drought and
relief donations by the Government.
With farmers forced in many cases
to haul water for their dairy herds,
retail milk prices have advanced as
much as 8 cents quart in some cities
of the drought area. In addition, the
Agricultural Adjustment Administra-
ton has invoked higher milk prices in
many communities to bring better re-
turns to the producer.
Increased demand or higher prices
for canned goods and cereals was
shown in many States.
Edward Lehman OF Wichita, KanS,
declared staple vegetables probably
per cent when the new crop has been
canned" P. P. milestone, Oklahoma
City wholesale dealer, reported Is
per cent increase in canned goods
prices. Sam Asher, Cheyenne, Wyo,
noted short delivery" from canneries.
w. K. Brown, Denver, said prices had
risen 10 to Is per cent in the last 80
days.
Bread May Go Up.
At Columbus, Ohio, however, John
Amicon, fruit and vegetable diStribu-
tor, saw mo indication Of higher prices
in our business"
Charles r. McLave, Great Falls,
Mont, flour mills president, predicted
the bread buyer soon will pay more.
j. B. Schramm, treasurer for an
Indianapolis wholesale distributor, ex-
pressed belief the drought will have
very little effect on the price of goods
canned in Indiana"
Gen. Robert F. Wood, president Of
Sears, Roebuck & Co., in a foreword
to the new Fall and Winter catalogue
of the mail-order house, said prices
were being reduced some at a real
sacrifice of profit" to stimulate busi-
ness in drought-stricken areas.
The company's sales for the week
ending August 13 increased only So
per cent over year ago, the smallest
percentage of gain since July l6, 1888.