The Nonpartisan Leader Newspaper, August 16, 1917, Page 3

> 0 APDULOW . re f Vs ¥ QR ReiTSs@s O AL Bo AP al = - n at 1 ne .) " nothing to carry out the In the interest of @ square deal » for the farmers VOL, 5, NO. 7. Tonpartisén Teader Official Magazjne of the National Nonpartisan League N FARGO, NORTH DAKOTA, THURSDAY, AUGUST 16, 1917. A magazins that dares t» print the trath WHOLE NUMBER 100, “Patriotism” of the Big Millers Announce a Cut in Flour Prices That Still Leaves Them Outrageous Profits—People Watch Investigations NVESTIGATIONS of Big Business by Uncle Sam are the order of the day. The federal trade commission now is investigating three great industries, with a view to de- .termining whether the rapidly mount- ing prices that have been charged the American public are just. The three fndustries under investigation are: The coal industry. The meat packers. The wheat industry, es- pecially the flour milling end of the game. The coal investigation was the first one under- taken by the commission. The commission has al- 3 X : ready issued a partial re- O S oy = . 1 [} port. It has recommended that to insure a coal supply for this coming winter and to prevent thousands in the Northwest from suffering from cold, all coal supplies and railroad transportation be pooled under govern- ment control. The commis- sion says either this or government ownership is & necessity. Washington considers this “very radi- cal.” Congress has done recommendation of the commission yet, although more than a month has elapsed since the commis- sion made its report and winter is approaching rap- idly. ; LABOR INCREASE NOT AN EXCUSE The coal investigation is still under way. The com- mission is seeking to deter- mine the cost to the oper- ators of mining the coal The commission will sub- mit a report to President Wilson that will show every cost that the opera- tors can legitimately charge, " including labor, material, maintenance, in- terest on investment and depreciation. The coal barons, it will be remem- bered, used to sell their eoal at the mine between $1 and $2 per ton. They boosted it suddenly to $5.50 at the mine and then under government pressure of- fered to be “patriotic” and reduce it to $3.50. No intimation has come from the trade commission yet as to its findings, but it is known that labor costs have increased not more .than 20 cents per ton—in some districts only 18 cents, and if the coal oper- ators could afford a couple of years ago, to sell for g ?Eprice between $1 and $2, it fappears strange to the ma- ‘Sority of consumers that a 20-cent increase in labor tost should cause an ad- yance of $1.50 to $2.00 in the mine costs. The second investigation undertaken by the trade commision is under way at Chicago, where the meat industry is under investigation. The department of aggiculture is working with the com- mission on this investigation. Commis- sioner Davies gave out a statement re- cently which was printed in the Official Bulletin, the government war publica- fion. This statement said the two main purposes of the investigation were to find if the system under which the great Chicago packers are operat- ing is an efficient one and, second, to find out if ‘“‘there are any combinations in restraint of trade, any unfair prace tices that injuriously affect the publi regarding prices or supply. If su .practices or conditions are found exist, it will no doubt be the policy of the government to stop them and ad- minister adequate punishments for those responsible therefor.” ALSO INVESTIGATES THE GRAIN TRADE Commissioner Davies added: “The immediate concern of the public [ TSR st — polis and another to Chicago and these men have opened offices. Immediately upon the announcement of an investigation into wheat and flour what happened? Exactly what hap- pened when it was announced that the commission would investigate coal prices. Then a bunch of coal magnates flocked to Washington and before the ¢commission had a chance to act, an- WHEN THE POLICEMAN FINALLY GETS AROUND T Ve N el R e T00 LATE OFFICER is with the high price it is paying for meat and whether or not those prices are justified; who is responsible for thelr existence. The investigation made some time ago into the meat industry by another agency dealt with the price of beef alone, and did not consider the by-products or other meats. No broad, thorough, and comprehensive investi- gation of a constructive character em- bracing all phases and angles and ram= ifications of the meat and packing in- dustry has ever been undertaken be- fore,” The commisgion is barely starting tg third Investigation, probably the . important of all, Into the practices grain speculators and flour millers. - 'has sent & represéntative to Minnea~ Drawn by W. C. Morris expressly for the Leaden e nounced that as a ‘“patriotic duty” they would reduce coal prices, at the mines from $5.50 per ton to $3.50, The big millers have done exactly the same thing. Before the federal investigators had time to open their offices in Chicago and Minneapolis, a group of millers and Chamber of Com- merce speculators hastened from Minneapolis to Washington, D. C. The Minneapolis Journal, their principal mouth piece in the Northwest, an- nounced under a Washington dateline, the same day that it announced the government investigation: “The big flour millers of the North- west who were here (in Washington) talking things over with Herbert C. Hoover, the food administrator, have displayed a patriotic spirit. PAGE THREH “The result of the conference has not been made public, but it may be stated that the millers have agreed to cut their present profit almost in half, “In other words, an agreement was reached that when wheat sells at $2 per bushel (the price fixed at terminals in the new food bill) the fancy patent blends of flour shall sell in Chicago at $11.50 per barrel and in New York at $12. The brands used by bakers will sell at $10.20 in the middle West and at $10.50 in New York whole- sale in carlots.” Does the ‘“patriotic spirit” of the millers in cutting their present profit “almost in half” fool any- body? Isn't it just the same “patriotic spirit” shown by the coal operators in reducing $5.50 coal (which should have been about $1.50) to $3.50? Of course $11.50 flour will be a lot better than $17.50 flour, just as $3.50 coal is a. lot better than $5.50. But is it right? It takes approximately four bushels and 20 pounds of wheat to make a bushel of flour. To give millers a little more than they are entitled to, call it four and one-half bushels. This would make the 'cost of wheat $9 for a ‘barrel of flour. The manufacturing cost of a barrel of flour is 85 cents. This- would make the total cost $9.85. " However, the miller uses in. the production of flour only about 70 per cent of the wheat. Thé 30 per cent that remains in bran, sghorts and . middlings, is the -.cost of milling the flour. But if the 30 per cent is considered to be worth ‘only as much as the cost of milling, or 85 cents, there is still a $2.50 profit taken out above the cost of the wheat, which is $9, before the flour reaches the consumer. PEOPLE WATCHING INVESTIGATIQNS There is one interesting matter in the Minneapolis Journal account of how pa- triotic the big millers are. This is the admission that they are using ‘“Feed D” wheat in their flour. They used to say that none of this wheat went into flour. Now they say it only goes into flour sold to bakers. After a while, maybe, when the government investigat- ors get going in earnest, the millers will . come through with the whole truth. Farmers of the North- west and consumers throughout the TUnited States are watching with interest the investi- gations of the federal trade commiss sion. CAN INVESTIGATE ONLY— CAN-NOT TAKE ACTION The commission has been given powers only to investigate. It can take no action. Only congress can carry out its recommendation for pooling of coal supplies and its transportation, and congress to date has displayed no de- sire to interfere with “legitimate busi- ness” such as that of the coal opera« tors and the railroads, even though the - trade commission says this system has broken down under the strain of wanm i ) i