Evening Republican, Volume 22, Number 114, Rensselaer, Jasper County, 15 May 1919 — U. S. WILL CUT WHEAT PRICE [ARTICLE]

U. S. WILL CUT WHEAT PRICE

Reduction Reaching From Producer to Baker Intimated by , Director Barnes. z IMMEDIATE ACTION EXPECTED . I—' . .. A. Statement Follows Prolonged Conference With Representatives of Grain Industry, Including Millers, ~ Jobbers and Bakers. New York, May 15.—Au immediate reduction in the price of wheat, reaching nil down the line from the producer to the baker, is believed asKtiretl, according to a siutemem tssued by Julius Barnes, wheat director, following a prolonged conference between Mr. Barnes representatives of the grain industry, including grain handlers, millers, jobbers and bakers. • Barnes Issues StatementThe statement issued by Mr. Barnes

says: “There was a general agreement (hat in order that all the wheat producers of the country should secure equal benefits, the ’various trades could- be bound by contracts to see that whdttt (Hiding should-be only on the gmtranteed price and, if a lower basis was Justified with the development of world factors as the season 1 advanced, this lower basis, should be j made to reach the consumer by trade i agreements with millers and manufacturing facilities, the wheat director inaking th e readj u& ling basis effect!ve by the payment of the difference as allowed under act of congress. Would Require Contracts. “In return for protection against a ' fall in price, after the guaranteed price had * been made for wheat bought, the wheat director would re* quire from the various trades con-■ tract obligations by which their trade practices and margins of profit would ; he subject to review and control by ; the wheat director.

“It was suggested, for Instance, that the mills agree that their total gross operating profits between wheat bought and the finished products sold should not exceed an agreed basis per barrel of flotfr manufactured, thus assuring immediate reflection to the consumer of any reduced price ot wheat supplied to the mills. “The jobbers expressed a willingness also to contract that their handling margins should not exceed the price fixed on an agreed basis, thus making immediately effective a lower retail price of flour when made by the mills on a readjusted wheat basis. Will Make Bread Cheaper. "The bakers were’ willing To enter into a contract by which they would reflect at once in their products the lower price of flour made effective by the mills. In this way, down to the retail trade there is thought to be an assurance that a reduced price ot wheat should be effective immediately all down the line.

“Some of the western delegates expressed the view that certain sections of the producing wheat country had developed a sentiment that wheat next year might be worth more than the guaranteed price in the open markets, but the geheral view was that the crops promised so well that any withholding from the market under such sentiment would be unappreciable in the total volume and that most growers would be ready; to market at the guaranteed price, thus sharply reducing the present price of wheat and facilitating a lower Hour price, ’with the new crop movement. “New wheat will be moved in Texas In thirty days, and from the present outlook in six weeks more there will commence a very large movement ot new winter wheat. In order that seaports and interior markets should no.t be choked by congestion and blockade, | the general .opinion was that the grain corporation should continue the co-op-erative control with the railroad administration of the movement of cereal and. cereal products into all the markets by the permit system of car shipment.

Success of Permit Control. "It kas developed during the meeting that although vessel movements to,ports last fall were especially erratic, accentuated by the necessity ot diverting foodstuffs for motor trucks and ’munitions to press the fighting on the western front when the German line began to give way. yet the permit control succeeded in preventing any actual blockade, while the really astonishipg total of 3.500,000.000 bushels of grain were moved in nine months from July 1 through elevator and mill facilities of the country. although the amount of grain at one time in these elevators was less than 500,000 bushels. “This means a total turnover of seven times in nine inonths, which is only possible if the most liquid condition of railroad grain transport prevailed.”