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Show Immediate Reduction in Cost of Flour Is the Forecast Made by U. S. Grain Director. Statement Follows a ''' Prolonged Conference Held With Handlers, Jobbers and Bakers. NEW YORK, May 14. An immediate reduction in the price of wheat, reaching reach-ing down the line from the producer to the baker, is believed assured, according to a statement issued today by Julius Barnes, wheat director, following a prolonged pro-longed conference yesterday between Mr. Barnes and representatives of the grain industry, including grain handlers, job- , bers and bakers. The statement issued by Mr. Barnes says: "There was a general agreement that in .order that all the wheat producers-of producers-of the country should secure equal benefits, bene-fits, that the various trades could be bound by contracts to see that wheat trading should be only on the guaranteed price, and if a lower basis was justified with the developments of world factors as the season advanced this lower basis should be made to reach the consumer by trade agreements with millers and manufacturing facilities, the wheat director di-rector making the readjusting basis effective ef-fective by the payment of the difference as allowed under act of congress. "In return for protection against a fall in price, after the guaranteed prico had been made for wheat bought, the wheat director would require from the various trades contract obligations by which their trade practices and margins of profit would be subject to review and control by the wheat director. MILLERS AGREE TO MEET PLAN. "It was suggested, for instance, that the mills agree that their total gross operating op-erating profits between wheat bought and the finished products sold should not exceed ex-ceed an agreed basis per barrel of flour manufactured, thus assuring immediate reflection to the consumer of any reduced re-duced price of wheat supplied to the mills. "The jobbers expressed a willingness (Continued on Fage 'J, Column 3.) i CHEAPER 1E1I IS ASSURED Bl Egg (Continued from Page One.) also to contract that their handling margins mar-gins should not exceed the price fixed on an agreed basis, tlms making- immediately immediate-ly effective a lower retail price of flour when made by the mills on a readjusted wheat basis. "The bakers tvere willing to enter into a contract by which they would reflect at once in their products the lower price of Hour made elective by the mills. In this way down to the retail trade there is thought to be an assurance that a re-, duced price of wheat should be effective effect-ive immediately all down the line. "Some of the western delegates expressed ex-pressed the view lhat certain sections of the producing: wheat country had developed devel-oped a sentiment that wheat next year migiit be worth more than the guaranteed guaran-teed price in the open markets, but the general view was that the crops promised prom-ised so well that any withholding from the market under such sentiment would be unappreciablo .in tl.' 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 flour price witn tho new crop movement. NEW CROP MOVES IN THIRTY DAYS. "New wheat will be moved in thirty days and from the present outlook in six weel's more will commence a very large move i.ent of new winter wheat. In order or-der that seapurts and interior markets should not be choked by congestion and blockade, the genora! opinion was that the grain corporation should continue the corporate control with the railroad administration of the movement of cereal and cereal productions into all the markets mar-kets by the permit system of car shipment." ship-ment." In response to a request of "Mr. Barnes. President Gates of the Chicago Board of Trade is expuclcd to arrive here tomorrow tomor-row to comer with him and other food administration officials, ft is understood that the discussion will bear upon trading trad-ing conditions on the board of trade. Millers Are Dubious. MINNEAPOLIS, lUinn., May 1 1. Minneapolis millers declared tonight that, although the United States grain corpora-lion corpora-lion may provide tiie miKs with less expensive ex-pensive wheat from Canada, they did not believe it would be possible for them to reduce flour prices sufficiently to make decreased bread prices possible. Frank L. Carey, grain corporation agent for the northwest, announced that the price of Canadin n wheat purchase in Canada and resold to the millers will be abou t S2.-h) a bushel. This is a bout 40 cents less than the price the millers have been paying here recently. - Millers declare that ir' the grain corporation cor-poration purchases only a s.-nali quantity of wheat from Canada, as an nounred, the supply will not be snflieiently large to bring about a" reduction in Hour prices. Baker Enters a Denial. "WASH .LN'iJT'jX, Ma y 14 . Secre La ry Baker di-nied tod a y ihcro was an relation rela-tion between any attempt to support the prices of meat supplies in this country and the 1 entative. arrangemon L readied by representatives of the war department and tho packing industry for the disposal abroad of 2oO,"'.O.UOO pounds of canned meats. The donartrnent announced a few days ago that this stock, amounting to the normal output of American packing pack-ing companies for two years, would bo placed on tho American market. "There has boon misapprehension with regard to Iho policy of the department in disposing of meat supplies." ihe sn-re-ta ry dec la red in an informa I statement. "The meats in question arc specially prepared pre-pared products, in special containers, and of a kind never sold commercially in the Unit ed States roast beef and special. 'y sal red pork which are not articles of ordinary or-dinary commercial trade here. The cans are not even labeled. The question of disposing of these supplies is not one of maintaining price levels t he War department depart-ment has no interest in that but of finding find-ing some way to dispose of them." |
