, 1935-10-30
Behind the
Scenes in
Washington
BY RODNEY BUTCHER.
The Brownsville Herald Washingtoi
Correspondent

Correspondent
WASHINGTON. Oct. 30.--If there
were trustworthy figures as to the
cost Of making a loaf Of bread, the
merits Of the battle between Secre-
tary Wallace and the baking COM
panies over increased bread prices
might be more easily decided.
It's all very technical and compli-
Gated. But bread prices r likely TO
be a political issue and certainly
they're causing plenty Of excitement
here at the moment SO perhaps
you'd better know the facts.
The national average price per
pound Of bread was 6.4 cents In
early 1888. IL had increased 10 83
cents by July, 1884. and remained
al about that figure until the cur
rent boosts OF one to two cents a
leaf. The original increase was con-
sidered more than enough 10 cover
the half cent in processing taxes.
the higher costs OF ingredients. and
still leave three-quarters Of a cent
for added labor costs and larger prof.
its.
Thus Wallace tries CD laugh off the
claim that the latest increase Ia due
10 that favorite goat Of food-mak-
eiS. the processing tax. But he has 10
admit that the cost Of ingredients
flour, sugar. malt. shortening and
dried milk-haS advanced in the last
year. 81 he says that no b than a
maximum OF half a cent increase IN
justified and that n general one cent
increase means $50. 10000 or more
Of added profit for bakers.
III May BE Less
What Wallace doesn't know IN
just how much less than half a cent
OF increase Is justified BY higher
costs His figures. showing that the
cost OF flour in a pound Of bread is
35-lO0ths OF a cent higher and short
ening l3-100ths OF q cent I'D. are
computed on an old base with the
assumption that bakers still use
the same proportion Of high-grade
hard wheat flour as IN other years
and the same amount and quality Of
shortening.
Over In Baltimore the most ex-
pensive kind OF bread flour rose
$40 a barrel between January and
October. But the cheapest type Of
bread flour went up only 10 cents
a barrel. "a barrel makes 500 pounds
OF bread.) The Wallace estimates
were based en- use Of the most ex-
pensive flours.
But bakers usually use a larger
percentage OF the soft wheat flour
when its price is low in relation TO
price Of hard wheat flours.
Challenge 10 Bakers
The AAA can't tell the extent OF
this use recently-and the effect on
ccStS-becauSe IL has no access to
the books Of baking companies. II
the average cost o. making a leaf of
bread has increased only a quarter
or a third or a cent, it's a secret
TO officials here.
All AAA can do Is ask the bakers
to submit their cost figures or chal-
lenge them to explain 70 the con-
Stunning public. Which isn't always q
safe procedure. as was indicated re-
when the Department OF Az
riculture found that a certain large
packing company apparently had re-
about three times as large a
profit to the SEC as it had TO the
department under the packers and
stockyards act.
Bakers, for instance. contend
their costs for shortening have gone
up 800 per cent. whereas AAA can't
see how It could possibly have been
more than 10 per cent. It's hard for
the innocent bystander to solve this
seeming discrepancy
Profits Are Up
The Wall Street Journal reports
that business with baking companies
has been better. in most instances.
this year than last. General Bak-
ing ND TO October showed an in
crease In net esrninrS from 81 233.Ti0
TO 1888. $40. and Ward Baking for
the first half year improved from a
net loss OF 1895 for the same period
last year to S320.397 Of net profit. !
Continental Baking. ON the other
hand. fell from s936.992 In profits to
s736 5s7.
You won't get much OF this detail
Gill; Gill;