The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1949-12-08
Getting Food Buyers The Most
For Dollar Is Aim of Gillette

cessed foods are priced-and how
food processing affects the amount
Of nourishment consumers get fol
their dollar-are being studied By
a Senate Agriculture Subcommit
tee headed by Sen. Guy Gillette
Cd, Iowa..
"The finger of suspicion points
as Of now-to the food process
sor," Gillette asserted in reopen
ing hearings Nov. 28. Sessions ovel
the next few weeks are dealing
with the gap between what the
farmer gets for his harvest anc
what the consumer pays for the
processed products. Future meet.
ings, Gillette promised, will deal
with the recent sharp squirt in
coffee prices, the role of advertis-
ing in raising food and fiber prices
and the prices of milk and dairy
products.
A heated battle developed on the
first day, as spokesmen for General
Baking Co., second largest outfit in
the industry, and committee coun-
sci Paul Hadlick locked horns over
pricing practices. Hadlick brought
out the fact that prices charged
retail grocers appear to remain the
same over long periods of time,
regardless of fluctuations in the
cost of flour and other bread COM
ponents. When prices do change,
the change is simultaneous for all
of the big baking companies selling
in the market area. He cited
changes taking place in Columbus,
Ohio, in early 1947 as one piece of
evidence. There, all companies
bread prices rose, then fell, exact
ly the same amount, on the same
days.
Then, Hadlick obtained from the
General Baking Co. comptroller
N. J. Farnan the admission that, in
place after place, his firm made
lower bids on Army and Navy con-
tracts for bread than the prices at
which they would sell to retail
grocers. In Baltimore, the grocer
paid 131ac for bread that the army
bought for $500 a loaf. In Colum-
bus, Ohio, grocers paid 1870 while
the army at Fort Hayes paid
10Ac. In Jersey City, grocers paid
131ac while neighboring navy in
stallations bought the same bread
for 9.2c.
Sen. Milton Young Or, MD in
brought out the fact
that General Baking's profits had
doubled between 1910 and 1948. In
1910, profits were 7.91 per cent of
capital investment, in 1948 they
were 1899 per cent.
Vice-president Alexander Cream
Of Ware Baking Co. conceded, un-
der cross-questioning, that compet-
ition in the bread business was
based on Juggling the weight of
the STANDARD loaf" rather than
On price changes - situation
which leaves the consumer virtual
y helpless.
The General Baking Co. testi-
nony on bread prices and weights
vas so evasive that Gillette finally |
ordered the witnesses to come back
With more information at later
late.
Use of chemical "softeners" inE
,read was discussed by Miss Hazel
Stiebeling of the Bureau of Human
Nutrition and Home Economics of
he Agriculture Dept. Her care
'ully worded testimony in effect E
the use of monoglyce-
'ides, and other such substances
hat lengthen the "shelf life" of
'read, until such time as it is estab-
ished that they are or are not
larmless.
Substances that change the ply :
ical properties of baked goods ;
nd other processed foods should
e tested against three standards,
he said. First, is the substance
on-toxic? None of the studies pur-
orting to show that the soften
rs" are not poisonous has been
nade available to the public thru
impartial channels; the response
ility for proving the ingredients
on-toxic is the responsibility of
he manufacturer.
Second, the nutritive value of
he food may be altered by addi-
ion of these ingredients, either by
ubstituting them for fats and {
milk solids previously used, or the !
ew ingredients may have an eff I
ect on how the food is used in the
uman body, Miss Stiebeling warn I
d. II
Third, assuming that the product r
ill be more nutritious, the claims !
f the food professor that the ad- I
ition of new ingredients will en- I
ance the usefulness of the food to 7
ne housewife should be backed up /
y impartial evidence, and the pre- t
ence of the new ingredients should v
e stated on the label, the nutrition h
xpert said.
n