New Britain Herald Newspaper, August 13, 1917, Page 5

‘<4 cute them under the law. PRICE OF FLOURTO BE HAMMERED DOWN Hoover to Take Over All Mills and Elevators . Washington, Aug. 13.—To control the wheat and gflour supply for the ¥ benefit of the nation and its allles, Herbert C. Hoover, food administra- tor, last night announced a sweeping scheme of regulation. Mr. Hoover announced that, with the full approval of President Wilson the price to be paid for the wheat erop of 1917 would be fixed by a com- mission headed by Harry A. Garfleld, son of the late president, James A. Garfleld, and president of Willlams ¥ college. Gambling on the wheat exchanges, Mr. Hoover asserted, must end, even if the government has to purchase the entire wheat supply of the nation. He sald the food administration, un- der the power given to it by the food control law, was prepared to act im- mediately in that direction if neces- mary. As & preliminary step, Mr. Hoover will take over control of all grain elevators and all mills with a daily capacity of over 100 barrels of flour and place them under a system of licenses which will make hoarding impossible. The grain exchanges at the same time will be requested to suspend all dealings in futures. The program announced by Mr. ® Hoover is the most revolutionary step ever taken by the government to protect itself and the public against extortion. It is a drive to reduce the cost of bread, by putting under con- centrated government control the sup- ply of wheat and flour for the allies, &8 well as for domestic purposes. The food administration, despite the protests of some of the bread-making interests, considers that the present level of prices extortionate. It has been asserted in some quarters that & sixteen-ounce loaf of bread could be #o0ld at a profit of five -cents if the food administrator had power to reg- ulate the cost of wheat and flour. Reasonable Profits Only. The statement showed that Mr. Hoover had decided against all but reasonable profits, and might abro- * gate contracts made for futures if | the prices seemed to him out of pro- portion. He advised all who held wheat or flour contracts in larger | quantities than necessary for the or- : dinary course of business to liquidate . them, pointing out that the food ad- . ministration had full power to prose- ' Shipments to the Allies and to neutrals, Mr. Hoover decided, would, for an in- | definite period, be made Iatgely in the torm of flour in order not to take work from American mills. ‘There was no intimation as to the | price which would be fixed for the 1917 orop, but Mr. Hoover was care- &°ful to point out that the minimum , all transactions at every point. NEW BRITAIN DAYLY HERALD MONDAY, AUGUST 13, 1917. marines these would be available and might seriously demoralize the de- mlnd for American wheat. must be clearly understood that the guaranteed minimum price of '$2 per bushel for wheat. set out in ‘the food bill, does not apply to the 1917 harvest, but only to the 1918 harvest, and then under conditions which must be elaborated. There is, therefore, no determined price for the 1917 harvest. ‘“The result of this situation is that the normal price-making machinery is entirely broken down. Unless some efficient government action is brought to play, (a) the American producer may face a slump in wheat, possibly below his production cost; (b) the export price of wheat, which ultimate- ly determines the real price, is at the will of a single agency; (¢) some one may buy the surplus wheat at any given moment, and if the surplus passes into speculative hands it will be held for higher iprices later in the year; (d) with stabilized prices, ex- tra hazards are introduced into all distribution links, which must be paid for by the consumer. Solution of the Problem. “It must be evident that the Unit- ed States government can more justly deal with the situation than any of the agencies mentioned. Therefore the food administration has deter- mined to take the following course: “First—In order to eliminate specu- lation in wheat and flour, all elevators and mills over 100 barrels daily ca- pacity will be required to take out a government license, the conditons of this license to be: That only rea- sonable and customary charges shall be made for warechouse service; that no wheat shall be stored for more than thirty days without the approval of the food administration; that cer- tain information as to receipts and shipments shall be supplied regularly. “The grain exchanges are being asked to suspend all dealings and regulations will come into force Sept. 1, and the licenses will be prepared this week. “While farmers’ co-operative eleva. tors are expected by the food bill, this, however, only applies to mutual concerns, and not to stock companies, | and in any event, under the ad- vantages of joining the plan, none are likely to stand out. *“In substitution of the broken-down marketing machinery, the food ad- ministration proposes to open at the principle terminals, carrying on its transactions with the usual dealers, and Is prepared to take the whole harvest if necessary in order to main- tain a fair price; and will resell wheat for export in such quantities as we can afford to part with in protection of our own people, on one hand, and to sell, on the other, to the millers for domestic consumption. ‘The administration will make no charge, except a nominal percentage to cover costs of the operation, and ar- rangements will be made which will assure the government against loss, “In order that nothing shall be left to mischance, we are setting up a properly constituted and independent auditing committee, which will check “The food administration, under these arrangements, would have a large influence in effecting the price of 5f $2 a bushel fixed by the Food Con- trol act did not apply to it, and af- tected next year’s crop only, under restrictions to be later explained. Following is the administration’s winnouncement: “The disturbance to the stommerce and short supplies have saused a greater disruption-of the aormal markets for wheat than any pther cereal: 1—As a result of the isolation of certain of the world6e wheat-pro- ducing countries, by either bel- ligerent lines or short shipping, the normal determination of the price of wheat by the ebb and flow: of commerce is totally de- stroyed. 2—In order to control specula- tion, and to secure more equit- able distribution of the available wheat and flour between their countries, the allled governments have placed the whole purchase of their supplies in the hands of one buyer. Also the European neutrals are now buying their ‘wheat through single government agents, instead of in the normal course of commerce. Therefore, the export price of wheat and flour, and thus the real price, if not controlled, will be subject to almost a single will of the for- eign purchaser. 3—In normal times, American wheat moves largely to Burope in the fall months. This year, the shortage of shipping necessi- tates its distribution over the en- tire year. Therefore, there is danger of a glut in our ware- house system over a consider- able period. 4—There are large stocks of wheat which cannot be drawn upon by the *'pAllies during the war, but in the went of peace or defeat of the sub- world’s { the appointment of a committee to be wheat. With a view to determining a fair proce, the president has approved selected from representatives of the producing sections and consuming elements in community. Garfield Head of Committee. “This committee will be assembled under the chairmanship of President Garfield of Williams college, and it will be the duty of this committee to determine a fair price for the 1917 harvest. Upon the determination of this fair basis, it is the intention of the food administration to use every authority given to it under the bill and the control of exports to :effect the | universality of this fair basis through- out the whole of the 1917 harvest year without change or fluctuation. ¢ “It should thus be clear that it will not be to the advantage of any pro- ducer to hold back his grain in an- ticipation of further advance, for he will do so only at his own cost of star- age and interest, and if necessary for the government to buy the entire wheat harvest in order to maintain this fair protection of the producer, we intend to do so. “Furthermore, the holding of wheat or flou: contracts by persans not en- gaged in the trade, and even when in trade, in larger quantities than is necessary for the ordinary course of their business is unlawful under the act, and such cases will be prosecuted with vigor. And we would advise such holders to llquidate thelr contracts at once. “By the above arrangement we be- lieve that we shall stabilize the price of wheat throughout the year; that | the hazards of operation due to fluc- tuating prices which are imposed upon our milling and distributing community will be eliminated and therefore their business can return to the normal lines and the normal mar- gins of profit, and that we shall not HORLICK’ MALTED MILK Made from clean, rich milk with the ex- tract of select own Malt Houses under sanitary conditions. Infants and children thrive on it. the weakest stomach oI the inud:d or the Needs no cooking nor Nourishes and sustains more than tes, coffee, ete. Should be kept at home or when traveling. Anu- lrifiau A glassful hot before retiring inds refreshing sloep. Ahomlunchul:l.ctfomfomnm-m Substitutes Cost YOU Same Price Take a Package Home )/ Ask For and GET THE ORIGINAL malted grain, malted in our Agrees :.rg: addition of milk. may be prepared in a moment. only have stabilized the price of wheat but stabilized the price of flour, and that it should enable us to arrive at a stabilized price of bread. “The food administration has had the patriotic co-operation of the leading millers of the country, and these millers have organized at the request of the food administration a committee to represent the entire trade. Detailed proposals for an agreed differential of profit and ex- penses per barrel of flour and per ton of feed are under discussion. ‘“Under this arrangement the pub- lic will be assured an equitable and stabilized price of flour based upon the cost of raw materials, and we confildently expect the volunteer ar- rangement with the mills which will glve satisfaction to the public. “The universal endeavor over the country to reduce consumption wheat breadstuffs in order that may have the requisite exports with which to carry the Allies over the forthcoming winter will result in a largely increased amount of Wheat avallable for export. If it were ex- ported as wheat, it would result in di- minution of employment in our mills, and of equal importance curtallment of supply of mill feed (or our dairy cattle. ‘““Therefore the food administration will stipulate for a large proportion of export of flour instead of wheat, and as the export orders for flour will be given subject-to the approval of the food administration those mills who co-operate with the administra- tion will be given the benefit of the exports employment. By thus en- couraging the home production of flour the manufacturing cost will be reduced and therefore. the American public will receive indirect benefit in lowered margins of cost in distribu- tion. “In accordance with the policy of the administration to co-operate with all trades, we are this week also discussing details of voluntary ar- rangements with the flour distributors by which agreed maximum differen- tials may be effected in the wholesu,le trade. “An exhaustive investigation is be- ing made into the cost of baking and bread distribution, and active discus- sions are being carried on with the Bakers’ War Emergency Committee as to plans for the ‘elimination of waste in tpe industry and the pro- duction of a standard loaf. “It is impossible to anticipate the price to be enunciated by the ‘fair price committee’ under Dr. Garfield, and it will probably require two or three weeks in its determination. “The names of the committee are being submitted to the president and will be early announced. “The basis of determination will be to arrive at a price which represents a fair return to the producer for his patriotic endeavor to increase - the supply and a proper reduction of the cost of flour to the consumer. “It must be evident to all thinking persons that unless the price of wheat, flour and bread can be mate- rially reduced we cannot expect to maintain the present wage scale of the country, and that we “must, in this social readjustment, lose effi- clency at a time when we can afford no such sacrifice.” MR. TUMULTY FORCED TO TAKE VACATION of we UVOSEPH P TUMULT Y forced Mr. Tumulty to give up his of- ficlal duties at the White House, and he remained at home for a few days. At the request of the president he started on a vacation, the first real one he has had in nearly twelve years. He is accompanied by Rear Admiral Cary T. Grayson, who is Presiden’t ‘Wilson’s physician. Advertised Letters. The fellowing is a list of letters re- maining unclaimed at the New Brit- ain, Conn., Post Office, Aug. 13, 1917: A. Browstein. T. Borwoski, Cafe (2). Joseph P. Tumulty, secretary to the president, left Washington for a mot- or tour through the north. The re- cent heat, coupled with overwork, G. D. Bristol. C. Bowen. Miss Minnie Bartlette, 134 B R ave. Mrs. C. Conlon, 228 Washington St. Jack Cironia, 499 South Main. Walter Cardine. Mrs. Wm. Crananger, 126 Franklin. Mrs. W. Duggan. G. W. Donaldson, 135 Main. Mrs. Burton Decker. H. R. Davis. John Durand. George Gordon, 69 Greenwood. Béttie Grey. Axel Gustafason, 532 Arch. Frank Johnson, 212 Main. Styn Likamansck. Frank Keller, Park St. Stanley Likiwenski, 43 Lawrence St. Gertrude Lawson, 42 Maple. T. M. Laesan, 75 Roberts. Halohan Matos. 9 Joseph Maynard. Hattie Manley. g Mrs. L. Nearing, Lyon St, Miss Klea Papper. Yon Russilowz, 125 North St. Mr. E. Smuck, RR. (2).. Mrs. Kate Seince, Stanley St. Thomas Shaw, West Main. Geo. J. Sargent, Box 52, — ey John L. Sullivan, 42 Chestnut. Leon Toro, 348 Arch, Andrew Wilson, 57 Lake Boulevard. Kenneth D. Whitlcek. Elizabeth Willkel, 137 Hartford Av. Charles Wmlams, care of Hotel Royal. FISHERMEN DROWNED. Nineteen Lose Lives in Gale Off Cape Cod. Boston, Aug. 13.—Nineteen Portu- guese fishermen of Provincetown, Mass., were drowned when the dories in which they were fishing off Cape Cod were swamped by a gale that came up suddenly late Friday after- noon. The men were from the fish. ing schooners Mary C. Santos and Na- talie J. Nelson, which arrived here last night. Eight Gloucester fishermen, com- prising the crews of the small fishing scpooners Danfel and Alice Stetson. | are also believed to have been lost in the gale. Members of the crew of the fishing schooner Virginia re- ported that they saw both the Daniel Ly and the Stetson making desperate ef- forts to ride the storm, and later saw boats and wreckage from both craft wash by. Several other fishing sokognars AL ported narrow escapes for their crews. The storm struck the fishing fleet 90 miles south by southeast off High- land Light, a 65-mile wind sweeping up from the southeast and suddenly veering to the northwest. | City Items | The Equitable Realty Co. has trans- ferred to Carmelle Gibilisco, land at Hunter’s Terrace. The Bodwell Land Co. has trans- ferred tc Patrick Hickey land on Stratford road and Carlton street and | has transferred to John P. and Katie Brull, land on Dudley street. WATER BOARD TO MAKE REPORT As soon as the water board has a complete report ready on the proposed tunnelling of a Toute between Burling- ton and Whigville to carry water be- tween the two reservoirs a meeting of the common coupeil’ called to take action on the matg is expected that the meeting @ council will be cdlled late this § There are two plans under con tion. Onme is building the tunm this is favored by City Engin and Engineer Hiram A. Milier ton, and the second plan is struct a pipe line. Professor Grig of the Geological department of § college, an expert on Rock fo Y will visit the reservoirs tomarro make an inspection of the s tween the reservoirs and the r the water board will be based large measure on his findings. [ PERSONAL Harry Ginsburg has return a fishing trip on the Connetmm Mrs. George W, Bull and & Mary, of Wallace street are the month in Albany, N. Y. JOHN CORT, one of America’s fore- most theatrical managers, says: “Adams Pepsin Chewing Gum impresses me as being an effective nerve steadier and brain quieter. chew it regularly and derive real benefit from it.” DAMS PEPSIN Cooling Peppermint THE BIG BUSINESS-MANS GUM Fl