Evening star., 1935-10-20
AAA CHALLENGES
BREAD PRICE RISE
THROUGHOUT LAND
Consumers Counsel Asks
Basis for "ProposaI" to
u. S. Bakers.
CENT PER POUND LOAF
GAIN HERE NOT CITED
Association Head Puts Blame for
Higher Costs Upon New
Deal Program.

Without making direct reference to
the fact that the price OF bread ac-
tually has been advanced cent per
pound loaf in Washington, Donald E.
Montgomery, consumers counsel for
the Agricultural Adjustment Admins
tration, yesterday sent letter to
Henry Stude, president of the Amer
ican Bakers Association, asking the
basis for your proposal that bread
prices be increased"
The letter, embodying Is questions,
comes concurrently with the opening
of the Bakers convention in Chicago
today.
Stude already has declared q price
boost generally is in order, because Of
the higher cost of ingredients, ascrib-
ing this to the New Deal program.
Secretary of Agriculture Wallace has
as strongly dissented.
Montgomery prefaced his question
naire with the statement that "the
trade press reports" that a convention
topic will undoubtedly be how to
advance bread prices.'" He then con-
tinued:
Consumers have a vital interest in
any such discussion. In view of your
proposal that bread prices be in
creased, bakers who follow your sug-
gestion owe consumers a complete and
accurate explanation of the facts be-
hind the price increases that have
been made or are now proposed.
Says Consumers Want Facts.
Consumers seem inclined to feel
that an increase in the price of bread
can be justified only to the extent that
the cost Of producing and distributing
this food has actually increased. Many
misleading. unsupported or inadequate
statements have already appeared as
to costs and taxes in the baking in
dustry."
Montgomery asks first II Stude be-
heves all bakers should boost bread
1 cent, and ARE you so recommending
to the convention"
After series of questions about in
creasing costs to the bakers, Mont
ROmery concluoeS:
THE Bureau of Labor Statistics re-
ports that total pay rolls in the bak-
ing industry in July and August of
this year are approximately per cent
lower than in the same months of
1884. Does this represent reduced
labor cost per pound of bread?"
Former Rise Recalled.
The consumers counsel asks also
If bakers did not raise bread cents
a loaf from 1888 to 1884 to take care
of advancing costs, and says the pub
lie will want to know what additional
expense since the latter date justifes
another increase.
Montgomery questioned reports at
tributed to the bakers that the price
of eggs had increased 1o3 per cent,
saying he understood the usual loaf
of white bread contains no eggs what
ever.
Montgomery said Stude had testi-
fed before a Senate committee in
1881 that -four costs are an insignif-
cant part of the cost of bread. He
asked if this view is held today.
If bakers should not follow the
proposal to increase the price of
bread l cent per pound loaf" the let
ter continued, lis it not true that the
margin between ingredient costs and
retail prices would be increased to the
level of average margins in the years
1924 to 1922"
DO you urge bakers to increase
margins to that level prior to the
time when consumer purchasing
power also increases to that level?"