The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1944-04-08

food situation. George L. Holiday
of the Puerto Rican chamber OF
commerce has just finished two
day recital before Congressman Jas
per G. Bells committee, giving an
inside picture on how the Tugwell
administration has tried to make
over the wholesale grocery business
i on the island, and with what re-
suits. The theory was to make prices
uniform all over the island. The
results were-well, read 'em and
weep.
To begin with, there was a ship
ping shortage, the 80 ships formerly
in the island trade being cut down
to II. That brought on food Short
age because this tropical island par
adise doesn't grow It's four principal
foodstuffs-rice, beans. lard and
Goldfish.
TUGWELL TOOK OVER
To fix things up, the Tugwen adj
ministration took over, through the
Department Of the Interior, which
runs island territories. It got con-
troll of shipping priorities and space
ALLEGATION from War Shipping Adj
rIaistration. It got control of the
islands agricultural war board and
of Sood distribution. Then, through
a General Supplies Authority Act,
the Tugwell administration was
given the right to buy, ship and sell
any commodity in which an emer-
gency existed. And 1t got SIS, 000,-
600 revolving fund to handle pur-
chases and stockpiles.
The Supplies Authority first tried
to get control of the rice supply. I'm
mediately, the merchants went to
court and got an injunction on the
grounds that the government Of
Puerto Rico had no right to inter-
fere with the flow Of goods in inter-
state commerce. That was fine, but
as the Department Of Interior con-
trolled shipping, the merchants
were forced to do business with the
government.
A. Edward Brown Of the Depart
ment of Aerictulture's Marketing
Administration was brought down
to handle distribution. He told the
merchants to figure out their own
system Of distributing, 80 that the
government wouldn't have to go
into the grocery business. The mer-
chants worked out their plan,
agreeing to take merchandise at the
pier as it was unloaded in carload
lots. That would save the govern
ment warehousing charges.
Within "a hours from the time
this arrangement was made, Tug
well fired Brown. In his place he
put 28-year-old Edward j. Bash,
whose past grocery experience had
been in giving away surplus food in
Mississippi, for free.
TRANSPORTATION COSTS
IGNORED
This was Tugwell's opportunity to
help the poor Of Puerto Rico by
substituting their food supply. He
proposed to do 1t by establishing
fiat ceiling prices on all imported
foods, ignoring the additional
transportation costs incurred in
moving the food into the interior.
Wholesalers were to be licensed
to keep them under control. but
any one who could establish a CO.
op OF 100 members at S. head
could become a wholesaler and get
license. The number Of whole
salers jumped from 246 to 1893. And
everyone can get a certificate for
his quota of imported food.
The result is a beautiful black
market in certificates. The phony
wholesalers, working only when a
ship comes in, go to town, get their
certificate, and Immediately sell it
to an established wholesaler.
Further, the government makes
the wholesalers take merchandise
they can't use, on asforced tie-in
quota basis, cash in advance.
Postings on the $4,000. 600 re-
volving fund are said to be some
months in arrears, so there's no
telling how much Of that is left.