GIFT OF WAR TRADE BOARD VANCE C. McCORMICK, Chairman HISTORY OF PRICES DURING THE WAR WESLEY C. MITCHELL, Editor in Chief GOVERNMENT CONTROL OVER PRICES By PAUL WILLARD GARRETT assisted by ISADOR LUBIN and STELLA STEWART Published by the War Trade Board in Cooperation with the War Industries Board WASHINGTON GOVERNMENT PRINTING OFFICE 1920 CONTENTS. iT'lit-^The' cidministrtiti'oit of price controls during the war Contd. 2. The Food Administration Continued. (3) The administration of food control Continued. Wheat flour and bread Continued. Page. Producers generally satisfied 67 Stability of the wheat price a reality 68 Close relation of flour and wheat 68 Control exercised over flour 69 Control of flour in 1918 70 Conservation measures 71 Results of flour control 72 Exercising bread control 72 Results of bread control 73 Summary 74 Sugar 78 The beet-sugar control 79 Control over the cane-sugar supply i 80 The distribution of refined sugar 81 The Sugar Equalization Board 82 The limitation of sugar consumption , 84 Sugar by-products 85 The results of sugar control 86 Live stock and meats 87 The stimulation of meat production 88 Hog production 89 Beef production 93 The licensing of the meat industry 95 Licensees with annual sales exceeding $100,000,000- 96 Licensees with annual sales of less than $100,- 000,000 97 The administration of the license system over meat 97 The results of meat control 99 Poultry and dairy products 101 Poultry 101 Eggs 102 Butter 103 Cheese 105 Milk 105 Oleomargarine 109 Cotton seed and cottonseed products 110 The early-price situation 11O The licensing of the industry 110 Control over the 1918 crop 112 The post-armistice situation 112 The effects of control- 114 Canned and dried foods___ 115 Vegetables , 115 Canned fish 117 Dried fruits 119 The results of control 120 Rice and rice flour 120 Control over the industry 121 The price agreement of the summer of 1918 121 CONTENTS. O PART II. The administration of price controls during the war Contd. 2. The Food Administration Continued. (3) The administration of food control Continued. Page. Coarse grains and feedstuffs 123 Human foods 123 The creation of the Grain Division 124 The limitation of coarse grain millers' prices 126 Feeding stuffs Feeds other than coarse grains and their products- 127 Coffee 128 Governmental interference ^ 128 The closing of the coffee exchange 130 Collateral commodities 130 Ammonia 130 Ice 131 Arsenic Unlicensed control over commodities at retail 134 Indirect control through licensees 135 The organization of the retail trade 136 The consumers' reports 137 The " fair-price " lists - 137 A comparison of retail prices 140 Retail prices in the United States and Canada 144 IS Enforcement of the license control 145 The Enforcement Division 145 The licensee reports 146 The inspection work 147 The Federal food administration in the States. 147 The emphasis upon publicity 148 The centralization of Government and allied food purchases 148 Division of coordination of purchase 140 Food Purchase Board 150 3. The Fuel Administration 151 (1) The war-time rise in coal prices 151 (2) The coal-production committee 154 The 1,700,000-ton Navy order 155 The Peabody-Lane prices 155 Their repudiation by Secretary Baker 158 (3) The food and fuel act 160 The power to fix coal and coke prices 160 Enforcement provisions 161 (4) The kinds of fuel control r 161 Organization 162 Control over distribution 162 Control over production 163 Control over conservation - 165. (5) The control over coal prices . 165 Price fixing of bituminous coal at the mine 166 Prices fixed by the President Aug. 21, 1917 166 Modifications made by the Fuel Administrator 167 A comparison of prewar and fixed prices 160 6 CONTENTS. PART II. The administration of price controls during the war Contd. 3. The Fuel Administration Continued. (5) The control over coal prices Continued. Page. Price fixing of anthracite coal at the mine 172 Prices fixed by the President 173 Modifications made by the Fuel Administrator 174 A comparison of prewar and fixed prices - 175 Control over the prices of coal middlemen 177 Jobbers' margins 177 Distributors' margins , .. 178 Control over coal at retail : 178 Special prices, premiums, and charges - 179 Costs made the basis of price-fixing 179 Bituminous costs 182 Anthracite costs - 184 (6) The control over coke 188 (7) The control over charcoal 190 (8) The control over fuel wood 190 (9) The control over petroleum 191 The early war situation 191 The regulation of prices 1 191 The licensing of the petroleum industry 193 The gasoline emergency 194 Control and its effect upon prices 194 4. The War Industries Board 195 (1) The development of a control over war industries 195 The early work of the Council of National Defense 19G The General Munitions Board 197 The Committee on Supplies 200 The Committee on Raw Materials, Minerals, and Metals 201 The War Industries Board created under the Council of National Defense on July 28, 1917 202 The appointment of Chairman Baruch 203 The War Industries Board made independent under the Overman Act on May 28, 1918 , 205 (2) The powers and policies of the War Industries Board 205 Its basis in law 206 The policy of Mr. Baruch 209 The organization of the board 210 The relation of the board to price-fixing 211 (3) The kinds of control exercised 212 Requirements 213 Clearances 215 The clearance committee 215 The clearance office 216 The clearance list 217 Priorities 218 Authority for priority control 221 The priority circulars 222 The method of rating 222 Automatic rating 223 CONTENTS. 7 PART II. The administration of price controls during the war Contd. 4. The War Industries Board Continued. (3) The kinds of control exercised Continued. Priorities Continued. Page. Unifying priorities in production with those in delivery 225 Purposes demanding preferential treatment 225 The preference lists 226 War-industry controls center about priorities 228 Allocations 229 Curtailments 230 Conservation 230 s Prices 232 ^Y MONTHS' JANUARY.lSti TAUau3T.I9rr Z40 ZZO ZOO 180 160 MO 1EO 00 ' I 1915 1914 | 1915 1916 I 1917 QXtOJIH! * n n p 220 180 f. 1 - 1 IZfl 2 100 *p*fcp^^^^ J ao 60 60 ,1.....;.. S 1 5 is B i \ 3 \ 1 1 s I 1 1913 1914 1913 1O16 1917 J The outbreak of the war in Europe marked sharply a new pe- riod in the history of world prices, though the immediacy with which different American prices responded was curiously varied. The dis- turbance in European prices was communicated to certain American markets by August, 1914. But prices, as a whole, in this Country Weighted index numbers. " All com- held close to their prewar level for a full year after the war began. The " all commodities " index num- ber of the Bureau of Labor Statistics, measuring roughly the varia- tions in the general price level, ran 82, 81, 80, 81, for 1912 and the three years following. Indeed, not during any three successive years since 1890 had prices been so nearly steady as in 1913, 1914, and 1915. The index number of 1,366 commodities at wholesale made by the Price Section of the War Industries Board, which is the best meas- ure of American war prices pure and simple, shows that the relative stability of the general price level was the net resultant of numerous months, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) 26 HISTORY OF PRICES DURING THE WAR. price changes in opposite directions. 1 The prices of chemicals, as might be expected, started climbing after Europe had been at war but a month and did not turn back until a year and one-half later, when they had doubled. Metals, too, began soaring after Europe had beeir fighting only six months, and carried quotations on a runaway market toward levels unknown before. On the other hand, fuel prices con- tinued falling for a full year after the war had begun, as did rubber, paper, and fiber prices generally. But the prices of food, clothing, building materials, and, indeed, the general price level, as shown graphically in the " all commodities " index number, remained stub- bornly unresponsive to war stimuli until the autumn of 1915. The Governments of England, France, and Russia, however, had been placing enormous contracts for war materials in the United States, and these purchases finally set American prices rising. When 1 For measuring the price changes during the war period strictly, or indeed from Jan- uary, 1913, to December, 1918, there is distinct advantage in shifting from the Bureau of Labor Statistics' index number to that made by the Price Section of the War Indus- tries Board under the direction of Wesley C. Mitchell. This latter index number, made in a somewhat similar manner, contains prices for 1,366 representative commodities by months, quarters, and years for the six-year period. It, moreover, is divided into seven index numbers for the food, clothing, rubber, paper, fiber, metals, fuels, building materials, and chemical groups, which in turn are separated into 50 index numbers for important industrial classes. The actual monthly quotations for each commodity were multiplied by the 1917 production plus imports, the products were then cast up separately for each of the 72 months covered, and finally the aggregates were turned into relatives by taking the average aggregate from July 1, 1913, to June 30, 1914, as equal to 100. For further details, see War Industries Board Price Bulletin No. 1. The Price Section index number for " all commodities " and those for the seven main groups, from January, 1913, to December, 1918, follow : Price section index number of war prices, 1913-1918. [Base, average prices July, 1913, to June, 1914=100.) Series of quotations. All com- modi- ties. Food group. Cloth- ing group. Rub- ber, paper, and fibers group. Metals group. Fuels group. Build- ing mate- rials group. Chemi- cals group. 1913. Januarv 103 98 102 114 120 102 104 103- February 102 96 102 113 118 101 104 104 March 102 97 101 112 116 101 105 104 April 101 97 100 107 114 101 105 103 May.. . 100 95 100 105 113 101 105 103 June 100 96 99 105 111 101 105 102 July. 100 96 99 104 110 101 102 102 August 101 100 100 104 110 102 102 101 September 102 102 100 103 108 102 103 101 October 102 102 103 102 105 102 100 100 November 102 103 102 101 100 102 100 100 December 101 102 100 99 96 101 100 101 Year 101 99 101 106 110 101 103 102 1914. January 100 101 99 98 96 101 99 99 February 100 101 99 98 98 100 99 90 March 99 100 100 98 97 100 99 100 \pril 98 98 99 99 96 98 99 99 May 97 98 99 98 92 96 98 98 June 97 97 100 97 93 95 98 99 July 97 98 100 9G 91 94 98 98 August 101 105 99 101 94 94 98 99 September 101 107 94 100 93 92 98 100 October 99 104 91 98 91 91 96 105 98 103 88 98 89 91 95 106 December 98 104 89 100 89 91 94 105 Year 99 101 96 98 93 95 98 101 GOVERNMENT CONTROL OVER PRICES. 27 the rise did begin on this side of the Atlantic it was extraordinarily rapid and often erratic. The whole price level, in point of fact, started upward late in 1915 at a pace not known since Civil War days. Price section index number of war prices, 1913-1918. Continued. [Base, average prices July, 1913, to June, 1914=100.] Series of quotations. * All com- modi- ties. Food group. Cloth- ing group. Rub- ber, paper, and fibers group. Metals group. Fuels group. Build- ing mate- rials group. Chemi- cals group. 1915. 100 105 90 100 91 90 93 123 February 100 106 92 90 93 89 93 126 March 100 105 92 90 95 88 93 126 April 100 103 93 90 98 85 93 133 May 100 103 95 90 101 85 94 132 June 100 100 95 90 106 85 94 137 July 102 103 96 91 110 85 96 146 August 102 101 96 90 110 86 95 148 September 102 99 98 89 114 90 95 155 October 104 99 103 90 116 92 101 162 November 107 102 106 92 124 95 101 172 December ... 111 103 107 95 136 100 102 178 Year 102 102 97 91 108 89 96 145 1916. January 115 105 110 103 147 106 109 189 February 118 106 113 104 154 107 111 200 March 121 106 115 109 168 109 112 200 April 123 109 116 112 174 112 113 198 May 123 109 118 112 171 113 113 188 June 122 109 120 111 169 113 113 185 July 123 111 122 112 167 113 112 175 August . 125 115 125 114 170 110 112 166 September 127 118 129 117 172 109 112 162 October 132 125 135 120 176 111 116 162 November . 141 130 136 123 202 120 118 163 December 144 129 154 129 218 122 119 162 Year 126 118 125 114 174 112 114 179 1917. January 148 133 155 138 226 129 129 ===== 159 February 151 136 156 141 234 133 130 157 March 156 142 157 143 247 131 132 159 April 170 157 163 146 260 163 146 163 May 178 166 167 148 276 172 148 172 June 183 164 174 147 315 173 151 174 July 189 167 187 144 333 168 155 180 August 187 168 189 143 313 169 155 183 September 186 173 189 149 283 165 156 190 October 182 177 191 147 228 164 157 193 November 183 182 199 146 209 167 159 191 December 182 178 202 145 208 170 159 193 Year 175 162 177 145 262 158 148 176 1918. January 185 182 209 148 208 173 165 186 February . . 187 184 212 148 209 174 165 192 March .. 188 182 218 150 209 175 169 192 April 191 180 228 155 208 200 176 192 May 190 177 226 162 209 204 179 190 June ^ 189 175 228 165 210 202 181 189 July 193 182 233 164 212 201 182 184 August 196 187 234 166 214 202 184 186 September 201 194 237 166 214 . 204 186 188 October 201 195 238 165 216 204 185 190 November 201 194 234 163 216 207 186 193 December 203 202 230 162 211 207 185 183 Year 194 186 227 160 211 196 179 189 28 HISTORY OF PRICES DURING THE WAR. 8 8 1 2 m S I I 8 3 GOVERNMENT CONTROL, OVER PRICES. 29 (3) THE FINAL UPWARD SWING WHICH PROVOKED GOVERNMENT CONTROL. The war-time rises in prices before the United States entered war did not of themselves provoke Government interference. But the rises stimulated immediately by our entrance into war, were serious largely because they came after prices had already reached extraor- dinary heights. Between October, 1915, and December, 1916, the index number of " all commodities " had risen from 104 to 144. The gradual breaking of relations with Germany then forced other ad- vances, and by March, 1917, the "all commodities" index stood at 156. When this country declared war in April, the index jumped 14 points in a single month. The prices of metals had a runaway market and were carried by July, 1917, to peaks unknown before. The weighted index number for the whole metals group made by the Price Section, rose from 247 in March, the month before war was declared, to 333 by July follow- ing. 1 Basic pig iron, f. o. b. Mahoning or Shenango Valley furnaces, indeed, climbed from $32.25 to $52.50 in the same months, and steel plates, tank at Pittsburgh, from $4.33 to $9, nearly 800 per cent above their prewar quotation. The very important food group index swung upward between March and July from 142 to 167. Wheat, No. 1, northern spring, shot from $1.98 per bushel in March to $2.58 in July. The index number for the fuels group, in which a variation is of only less general consequence than in the food group, rose from 131 in March to 168 in July. The clothing group index number rose from 157 to 187 in the same period, the building materials group from 132 to 155, and the chemicals group from 159 to 180. It is scarcely necessary to look further than the final upward swing of prices from our entrance into war until July, for the immediate reason why the Government began formally to control prices late in the summer of 1917. 2. THE CONDITIONS THAT THREATENED FURTHER RISES. The extraordinary rises in price, that gave occasion for price con- trol shortly after our entrance into war, were the outcome of several large forces. Quite apart from the excitement thrown into the market by war speculation, there had arisen difficult problems of production, distribution, and purchasing which forced prices higher each day. A knowledge of these problems, which at bottom were the cause of rising markets, affords a clearer vision of what lay back of Government price control than does a mere review of price rises. 1 The prewar price was taken as 100. 30 HISTORY OF PRICES DURING THE WAR. (i) THE EUROPEAN DEMANDS UPON AMERICAN PRODUCTION. The increased demands upon domestic production, which our going into war brought the Government squarely to face in 1917, was the first problem of great magnitude. The productive capacity of the country was largely under contract to allied Governments, when our own Government began itself to need materials. But the European de- mands, notwithstanding, kept mounting by leaps and bounds. Europe had taken $1,471,266,488 in value of our exports, which was somewhat in excess of her usual peace-time requirements, during the year end- ing June 30, 1914. But as she waged war she turned to the United States for more raw materials, manufactures and foods, and during the year ending June 30, 1917, took $4,307,310,138. 1 This enormous and sudden demand for American materials, of course helped prices higher. The western European Allies (United Kingdom, France, Italy, and Belgium), in order to meet their annual consumption of over 900,000,000 bushels of wheat, have ordinarily to import 100,000,000 bushels from the United States and 450,000,000 bushels from other countries. This country produces about 800,000,000 bushels of wheat each year, and, since the domestic consumption normally is near 646,- 000,000, the European demand can readily be supplied. But the esti- mated harvest, at the time America entered war, came to only 635,- 000,000 bushels, thus leaving no probable surplus for exportation. It became clear that if this country maintained a normal consumption, it could ill afford Europe her usual 100,000,000 bushels. The Allies of Europe in 1917, moreover, were getting hungry and could not be satisfied with anything short of an extraordinary importation. They must, it seemed, too, avoid the long hauls from India, Aus- tralia, or South America and buy from the United States. Siberian wheat, indeed, was less accessible than that from Australia, and the Russian port of Odessa had been shut off from western Europe by the closing of the Dardanelles. Thus in the spring of 1917 the United States was made the Mecca of Allied wheat buyers, and the largest sales, both for cash and for future delivery, were made to the Governments of Europe. To meet these large European de- 1 The total domestic exports in dollars from the United States to Europe, for the year ending June 30, 1913, to that ending June 30, 1918, follow: Year. Actual. Rela- tive. Year. Actual. Rela- tive. 1913 $1 464 005 220 100 1916 $2 972 349 994 203 1914 1 471 266 488 100 1917 4 307 310 138 294 1915 1*944 '327 132 133 1918 3 707 309,057 253 GOVERNMENT CONTROL OVER PRICES. 31 mands, America had the smallest wheat crop since 1911. 1 The frenzy of buying, which seized the wheat markets of the country shortly after we entered war and sent prices violently upward, was one of the most pressing among the factors that prompted the Gov- ernment to begin price control, with a view both to increasing production and stabilizing prices. The United States ordinarily consumes 3,950,000 short tons of sugar each year, of which she imports from foreign sources or insu- lar possessions 77 per cent. 2 A full half of that total supply comes from Cuba and Porto Rico. The United Kingdom ordinarily con- sumes 2,060,000 short tons of sugar, of which she imports 100 per cent. Since war suddenly cut off her normal importation of 70 per cent of that amount from Germany and Austria, Great Britain like- wise turned toward Cuba and Porto Rico for sugar. It soon came about that the great bulk of sugar consumed by England and all of the allied countries, therefore, was imported from the United States and Cuba. The sugar exports from this country mounted from 96,862,462 pounds in the year prior to the European war to 1,685,195,537 pounds in 1916. 3 This drain upon Cuban and American stocks forced sugar prices upward, until the Government was driven to interfere. i The official data showing wheat produced in the United States during the war period, the exports of domestic wheat, and the value of wheat exports follow: Year. Production. Exports. Exports. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. 1913. . Bushels. 730.267,000 763,380,000 891,017,000 1.025,801,000 636,318,000 636,655,000 100 105 .122 140 87 87 Bushels. 142,879,597 145,590,349 332,464,976 243,117,026 203.573,928 133,990,150 100 102 233 170 142 94 $89,036,428 87,953,456 333,552.226 215,532,681 298,179,705 80, 802, 542 100 99 375 242 335 91 1914. 1915 1916 1917. 1918. 2 Calculated upon data for the prewar years from 1909 to 1914. 3 The revolution in the sugar situation as it affected American prices, is graphically pictured by the following comparison of the world's production of sugar during the war, the total supply of sugar in the United States found by adding production and imports, and the total sugar exports: Year. World's production. United States supply. United States Ex- ports. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. 1913. Pounds. 40,787,743,360 41,972,098,560 41,511,919,680 37,069,106,080 37,728,530,560 38,374,804,160 100 103 102 91 92 94 Pounds. 8,301,046,168 8,890,657,390 9,228,077,077 9,645,558,299 9,735,794,417 8,679,250,840 100 107 111 116 117 105 Pounds. 66,569,033 96,862,462 601,103,749 1,685,195,537 1,268,306,254 588,521,143 100 145 903 2,531 1,905 884 1914 1915... 1916 1917.. . . 1918.. . 32 HISTORY OF PRICES DURING THE WAR. Another pressure upon American production early in 1917, with a consequent inducement to higher prices, was the demand in Europe for our metals. 1 The total exports of iron, steel, and their manufactures, which were $251,480,677 in value for the year imme- diately prior to the war in Europe, had jumped to $1,133,746,188 by 1917. The prewar exports of copper, in like manner, were $146,222,556 in value and had been forced by European war re- quirements to $322,535,344 by 1917. These data explain why metal prices in this country got out of hand until their record rise in July, 1917, brought the Government to regulate them. (2) THE BREAKDOWN IN COAL DISTRIBUTION. The increased demand for our coal in Europe, unlike that for others of our materials, was not an appreciable factor in the fluctua- tions of coal prices, since the export tonnage of neither anthracite nor bituminous coal amounted in any year to more than 5 per cent of their respective productions. But there was, of course, a tremendously increased domestic demand incited by war orders. The produc- tion of bituminous coal, which constitutes 85 per cent of the Ameri- can output, jumped in 1917 to a record figure for this country, 551,790,563 tons. It is a curious anomaly, explained only by the breakdown in our distribution by railroads and boats, that during June, 1917, when the problem was especially acute, the production of bituminous coal rose to 123 per cent of its prewar level, while the price rose to 297 1 There follows a comparison of the actual domestic production of pig iron with the corresponding European demands as represented roughly by our exports (domestic) of iron, steel and their manufactures during the war; and, in like manner, a comparison of the copper produced in this country with the exports of domestic copper and its manufactures. A convenient tool by which to compare the variations in pro- duction and exports has been made, by turning each actual figure into a relative figure, using the respective prewar average (1913) as a base equal to 100. Year. Pig-ironproduction. Iron, steel, and their manufactures, ex- ports. Copper production. Copper and its man- ufactures, exports. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. 1913 Lonq tons. 29,726,937 30, 966, 152 23, 332, 244 29, 916, 213 39, 434, 797 38,647,397 100 104 79 101 133 130 $304, 605, 797 251,480,677 225,861,387 621, 237, 972 1, 133, 746, 188 1, 124, 999, 211 100 83 74 204 372 369 Pounds. 1,224,484,098 1, 150, 137, 192 1,388,009,527 1, 927, 850, 548 1,886,120,721 1,910,000,000 100 94 113 157 154 X56 $140, 164, 913 146,222,556 99,558,030 173, 946. 226 322.535,344 268,982,821 100 104 71 124 230 192 1914 1915 1916 1917 . 1918 GOVERNMENT CONTROL OVER PRICES. 33 per cent. 1 The heavy demands upon the railroads for the transpor- tation of war materials, despite the extraordinary production of coal at the mines awaiting cars, created a local shortage which forced prices higher and finally brought Government interference. (3) THE SHORTAGE OF SHIPS. A shortage of available ships for use in transporting goods, though always an appreciable factor in determining the prices of commodities at their import and export markets, has seldom affected domestic prices as in 1917. The United States Shipping Board, had there been no war drain upon vessels, would have given an adequate relief. But when this country entered the war its main immediate responsibility was to recuperate the allied tonnage and turn ships into war uses with scant regard for commercial considerations. The result was a revolution in our foreign trading, which disturbed vitally many prices of commodities normally imported and others awaiting exportation. The total acquisitions of ships by the United States from April 6 to July 31, 1917, the especially acute period, exceeded the total losses. This country, in other words, gained 95 vessels, making a total of 268,969 gross tons, and lost 68 vessels, making a total of i The following table compares the actual fluctuations in the production of bituminous coal in the United States by years from 1913 to 1918, and by months during 1917, with the corresponding fluctuations in prices. A ready comparison of the variations in production and prices has been facilitated by the reduction of each actual figure to a relative figure, using the respective prewar figure (average from July 1, 1913, to June 30, 1914) as a base equal to 100. Date. Actual. Relative. Production. Price. Production. Prirc. Year: 1913 Tons. 478,435,297 422,703,970 442,624,426 502,518,545 551, 790, .563 585,883,000 $1.29 1.22 1.19 1.78 3.08 2.67 105 92 97 110 121 128 102 94 94 140 243 210 1914 1915 :.. 1916.. 1917 1918 Months, 1917: January 47,967,354 41,352,711 47,868,652 41,854,320 47,086,452 46,824,646 46,291,572 47,372,226 45,107,956 48,337,726 47,689,801 44,037,147 3.73 3.75 3.53 3.00 3.72 3.77 2.98 3.03 2.12 2.15 2.58 2.59 126 108 126 110 124 123 121 124 118 127 125 116 294 295 276 236 293 297 235 239 167 169 203 204 February March.... April... Mav June July August September October November . . . December. . . Year 551,790,563 3.08 121 243 125547 '< 34 HISTORY OF PRICES DURING THE WAR. 109,188 gross tons. 1 But the fearful shortage altogether of allied and neutral tonnage during 1917, which one time threatened the loss of the war, made our few domestic increases seem a pittance. The allied and neutral tonnage, through losses from submarines and ALUED AND NEUTRAL SEAGOING TONNAGE Lost and Built Allied and neutral seagoing tonnage, lost and built. By months, February, 1917, to September, 1918. other causes, began falling off seriously after our entrance into war, and it was not until May of 1918 that the building program could be made to overtake the current losses. 1 There follows a summary of the changes in United States seagoing merchant marine, 500 gross tons and over, as prepared by the Division of Planning and Statistic? of the United States Shipping Board from Aug. 1, 1914, to Nov. 11, 1918. Period. Acquisitions. Losses. Number Gross tons Number Gross tons United States seagoing documented vessels, exclusive of seized enemy and requisitioned Dutch vessels: Aug 1 191-1 to Apr 5 1917 406 95 704 1,392,887 268,969 2, 292, 531 286 68 233 529, 529 109,188 507, 519 (978 days intervening.) Apr. 6, 1917, to July 31, 1917 (116 davs intervening.) Au 1 " 1 1917 to Nov 11 1918 (467 days intervening.) Total. . . . 1,205 3,954,387 587 1,146,236 N 7 essels seized from enemies by United States: Apr 6 1917 to July 31 1917 96 1 640, 582 8,312 Aug. 1, 1917, to Nov. 11, 1918 9 88,081 Total 97 648, 894 9 88, 081 Vessels requisitioned from Dutch by United States: April, 1918, to Nov. 11, 1918 87 354, 278 6 25,359 GOVERNMENT CONTROL OVER PRICES. 35 3. THE DESIRE OF THE GOVERNMENT TO MAKE ITS OWN PURCHASES AT REASONABLE COSTS. The desire of the Government to make its own purchases at rea- sonable costs, after the country went to war, and the enormous quan- tity of materials required, might have had a very much more disas- trous effect upon prices generally than appears upon the surface. It was patent that the taking of an enormous quantity of any material by the Government at a low figure would not of itself hold prices to the public at the same figure. The presumption was, on the other hand, that civilian competition for the residue stock would usually quicken and force open-market prices higher. The President early in the summer of 1917 saw that a control over Government purchases alone might unduly raise prices for the remaining stocks of the same commodity, and declared for a single price to the Government, the public, and the Allies. 4. THE GROWING DISCONTENT WITH RISING PRICES OF STAPLES. The war-time rise in the prices of staples prior to our entrance into war was tolerated without complaint by the labor and middle classes, in the main, because there came with those increased prices a some- what increased prosperity. A general discontent developed, however, when prices mounted higher after mobilization began reducing thou- sands of family budgets by taking men into camps. The earmarks of profiteering appeared at every turn during the spring of 1917, and embittered those less able, who were making honest sacrifices to help win the war. Many believed it the duty of the Government to protect them from exorbitant charges for the staple commodities, and urged this course until finally the Congress set up the machinery for a control over food and fuel prices. 5. THE INFLUENCE OF BRITISH AND FRENCH CONTROLS. The initial handicap which the Government had to overcome in solving the problems that came to the fore in the spring of 1917, however obvious it may have appeared that regulation would effec- tively overcome them, was the conservative prejudice against Gov- ernment control. It can not be denied that the industries of the country at the outset generally looked askance or with fear upon in- terference with their business. The actual experience with control in England and France helped, as nothing else could, to quiet these fears. The country generally did not know the detail of European 36 HISTORY OF PRICES DURING THE WAR. regulations. But the American business interests came to appre- ciate, through their own and British experience witli rising prices, that war-time stabilization in prices could not be sustained without help from the Government. The one-time opposition to Government regulation, as price problems became more complex, turned gradually into requests for control from the industries themselves. PART II. THE ADMINISTRATION OF PRICE CONTROLS DURING THE WAR. i. THE AGENCIES DELEGATED AND THE CONTROLS WHICH THEY EXERCISED. The Government was loath to begin any regulations of prices until forced into it by excessive rises in price or by the fear of erratic mar- kets. It then proceeded with caution and extended control over the prices of commodities at wholesale in piecemeal fashion. It so happened that the prices of wheat, sugar, metals, and coal which proved the most notable instances of regulation throughout the war, were taken in hand after the epochal rises of the midsummer and had all been put under control by the end of September, 1917. The slight machinery then set up formed the nucleus for the mechanism by which prices were controlled during the war. There are three methods by which to survey each formal Govern- ment price control, from the setting of a minimum wheat price by law on August 10, 1917, to the withdrawal of the last regulation after the signing of the armistice. The regulations may be arranged chrono- logically by dates upon which each commodity came under control; they may be grouped under natural commodity divisions; or they may be classed under the war boards which exercised the controls. The latter scheme seems altogether the most useful, since it permits a chronological listing under each board at least and happens to afford a rough grouping of similar commodit}^ controls. The various ad- ministrative boards, among which the responsibility for Government controls were distributed at the signing of the armistice, moreover, grew up in part because there were distinct kinds of control problems. The delegation of regulatory powers over prices by the President during the war was prompted by reasons of expediency rather than logic. Price-control authority in various degrees was given to the Food Administration, the Fuel Administration, the War Indus- tries Board, the Price Fixing Committee, the War Trade Board, the War Department, the Xavy Department, the Federal Trade Commission, and the Department of Agriculture. The Food Administration, Avhich was created by authority con- ferred on the President in the food and fuel control act of August 10, 1917, was gradually given war-time control over virtually the whole 37 38 HISTORY OF PRICES DURING THE WAR. food group including wheat, flour, and bread ; sugar ; live stock and meats; poultry and dairy products; oleomargarine; cotton seed and cottonseed products ; canned and dried foods ; rice and rice flour : coarse grains and feedstuffs; coffee; ammonia; ice; and arsenic. The War Industries Board, which was made a division within the Council of National Defense on July 28, 1917, and a separate board on May 28, 1918, exercised control in the main over the prices of the great basic raw materials until the price fixing committee was appointed. Even after that it exercised control over lead, nickel, quicksilver, platinum, manganese, burlap, wood chemicals, and alkalis. The price- fixing committee, w T hich was appointed by the President, took over from the War Industries Board on March 14, 1918, the task of fixing basic raw-material prices and regulated the prices of iron, steel, and their products, copper, aluminum, zinc, cotton textiles, cotton linters, w r ool, hides, skins, and leather, hemp, lumber, building materials, and acids. The Fuel Administration, which with the Food Administra- tion was authorized by the food arid fuel control act, exercised full control over the prices of anthracite and bituminous coal and coke. The War Trade Board, w r hich w r as created by the President under authority from the espionage and trading-with-the-enemy acts, was given control over imports and exports, and sometimes used its license power indirectly to help control prices, especially of rubber, foreign wool, silk, quebracho, castor beans, and castor oil. The Army and Navy, by their power to requisition and commandeer, controlled prices in part for their own purchases. The Federal Trade Commission compiled extensive cost data for the price-control agencies and itself controlled certain paper prices. Lesser controls were exercised by the Department of Agriculture. (i) THE PRESIDENT MADE A MINISTER OF PRICE CONTROLS. The Congress did not grant to the President, or to any agency, blan- ket authority to work out a schematic program of general price regulation during the war. The bases in law for different regulations were varied and sometimes doubtful. The country early got at the business of regulating prices, despite its one-time caution, because the President deemed it necessary himself to become in reality a minister of price controls. There was no disposition, once the food and fuel control bill was law, to await specific authorization by the Congress when a war purpose made any price control imperative. The whole body of regulations relating to prices, whether specifically allowed by legislative enactment or set up loosely under war powers, took their final administrative authority from the President. It is noteworthy that even the food and fuel control act, which was the one broad grant of regulatory powers over prices made by the Congress, gave power simply to the President and made no men- GOVERNMENT CONTROL OVER PRICES. 39 tion of either a Food Administration or a Fuel Administration. It permitted the President to control foods and fuels and he, of his own accord, appointed to represent him a Food Administrator and a Fuel Administrator. These latter, in turn, set up huge organizations as their tools of administration. There was scarcely a fragment of authority for the final organization of the War Industries Board, other than the President's well known letter of March 4, 1918. The price-fixing committee was appointed by the President to represent him in fixing maximum prices and without definite citation of legis- lative authority. The War Trade Board, too, was an instrument of the President. The resting of final responsibility upon the President for the administration of price controls .was, in point of fact, more literal than might appear, since he himself undertook to approve and to sign a majority of the regulations. An account follows of the various agencies through which he administered price control, with an analysis of the individual controls undertaken. 2. THE FOOD ADMINISTRATION. A chronicle in detail of the planning and administration of food control during the war can scarcely be had from any available records. The United States Food Administration can not itself re- count all of the controls which it administered, so multifarious w r ere they in number, so informal in kind, and so altered from day to day. The regulation of food prices was at once the most nebulous w 7 ar con- trol exercised in America, and the most far-reaching and direct in its touch with the civilian and the soldier. It was extended to cover, in one form or another, virtually every staple food commodity and others of lesser importance. The nature of food control in this country during war time was distinguished sharply from that of raw-material control. The prices of raw materials were, in the main, definitely fixed. The prices of foods were controlled instead by a flexible and, often, loosely applied system of margins. The raw-material control was a very much more tangible thing than the food control. It is relatively a simple task to determine upon a line where price fixing of raw materials stops and other kinds of control begin. But a study of Government control over the prices of foodstuffs involves an account of control over production, allocation of sales, distribution, priorities of manufacture and transportation, conservation of uses, amounts allowed for export and import and the allotments of shipping space. It is not apparent at first sight whether these controls are features of price regulation or not. Only a detailed examination of each in- stance of control will give a proper basis to judge which of those controls affected particular prices, and which, therefore, merit con- sideration in a study of Government control over prices. The real beginnings of food control were made the clay following our entrance into w y ar, when the Council of National Defense cabled Mr. Herbert Hoover a request that he become its advisor upon food and price problems. Mr. Hoover, in reponse to that and a later cablegram from the President, arrived at New York from Europe on May 3, 1917, and set up an office, with a stenographer, in a hotel at I/ Washington on the following morning. The President was anxious to start a study of the food problem at once and, pending legislation, appointed Mr. Hoover Food Ad- ministrator of the United States on May 17. There was, meantime, no authority for any thoroughgoing regulation, but the newly ap- pointed Food Administrator, under special allowances from the 40 GOVERNMENT CONTROL OVER PRICES. 41 President's emergency fund, laid the foundations for a food-control law. He had, by the time the food bill was passed, already built up a staff of 450 persons. At his instance during that interim, furthermore, over 100 conferences were held with the trade, im- portant informal agreements were readied, and contacts cemented that determined the later courses of action. Too little emphasis might easily be given to the length of the step, from free competi- tion and soaring prices at our declaration of war into price control. Mr. Hoover, fresh from Europe and in touch with the food, military, submarine, and shipping situations, was in a peculiarly strategic position to help hasten that transition. He impressed the country with the belief that the Allies were in more immediate need of food than of men ; that the shortage of ships made it expedient that this food come largely from North America, since shipments from Aus- tralia or Argentina would require two and three times as much ton- nage, respectively, to haul an equal amount; that the Allies would need perhaps 500,000,000 bushels of wheat beyond their own crops for the next year, and close to 1,000,000,000 bushels of all cereals; that there was prevalent a speculation in wheat, prompted by bidding for the residue available for export, which had already boosted the price of flour from $9 to $15 per barrel. These facts were told in a, straightforward manner the country over, and acted as a leaven preparing the way for Government control. The American, not ac- customed to war-time control, reacted favorably when told that his own wheat could be exported across the Atlantic, and made into bread that sold there under Government control, at a price in Bel- gium amounting to 6.0 per cent of the price which he paid at New York ; in France, at a price 40 per cent below his own ; and in Eng- land at a price 30 per cent below his own. This propaganda, backed strongly by the President, and the general confidence in Mr. Hoover inspired by his long and intimate contact with food control in Bel- gium, France, and England, was the force which got the United States promptly into the business of controlling her foodstuffs by the summer of 1917. The debates in Congress upon the so-called Lever bill began im- mediately after its introduction on June 11, and dragged on, as the President believed in a "tedious and vexatious" manner, for the whole of two months. But, pressing as the wheat and sugar situa- tions seemed then for more immediate action, the long drawn-out hearings and discussions during the summer did teach the Govern- ment and the country much about their problem. The bill was finally made into the food-control act on August 10, 1917. That act set forth the basis of all later food control, granted wide powers to the President under which he created the United States Food Ad- ministration, and fi^ecl a minimum price for wheat. It gave legal 42 HISTORY OF PRICES DURING THE WAR. status, really, to all that Mr. Hoover had done at Washington of an informal character in the three months previous. There were pro- posed at the Capitol scores of amendments, some of which were written into the bill and gave it different character, but altogether the law as signed by the President set up the kind of control for which he and Mr. Hoover had long asked. (i) THE FOOD-CONTROL ACT. The food-control act, made from the Lever bill, and sometimes called the food and fuel control net, was the most important measure for controlling prices which the United States took during the war or had ever taken. It was the basis for the whole of war-time control of food and fuel as well. It, more than any other statute, requires an analysis in this inquiry. THE PURPOSES OF THE ACT. The declared purpose of the act, and the sweeping control which it held in contemplation, can be pictured no more impressively than through a repetition of the terminology written into the law. The act states as its aim to assure an adequate supply and equitable distribution, and to facilitate the movement, of foods, feeds, fuel, including fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, implements, machinery, and equip- ment required for the actual production of foods, feeds, and fuel, hereafter in this act called necessaries; to/prevent, locally or generally, scarcity, monopoli- zation, hoarding, injurious speculation, manipulations, and private controls affecting such supply, distribution, and movement; and to establish and main- tain governmental control of such necessaries during the war and authorizes the President to issue any regulations or orders neces- sary to carry out its provisions. It makes the purposes of Congress even more definite, by the specific acts which it declares unlawful- it is hereby made unlawful for any person willfully to destroy any neces- saries for the purpose of enhancing the price or restricting the supply thereof ; knowingly to commit waste or willfully to permit preventable deterioration of any necessaries in or in connection with their production, manufacture, or distribution; to hoard, as denned in section 6 of this act, any necessaries; to monopolize or attempt to monopolize, either locally or generally, any neces- saries ; to engage in any discriminatory and unfair, or any deceptive or waste- ful practice or device, or to make any unjust or unreasonable rate or charge, in handling or dealing in or with any necessaries ; to conspire, combine, agree, or arrange with any other person, (a) to limit the facilities for transporting, producing, harvesting, manufacturing, supplying, storing, or dealing in any necessaries; (b) to restrict the supply of any necessaries; (c) to restrict dis- tribution of any necessaries; (d) to prevent, limit, or lessen the manufacture or production of any necessaries in order to enhance the price thereof; or (e) to exact excessive prices for any necessaries, or to aid or abet the doing of any act made unlawful by this section and which comprehend very nearly all private abuses pertinent to the war-time food problem. GOVERNMENT CONTROL OVER PRICES. 43 The outstanding feature of the whole act is the kind of control by which it proposes to accomplish these ends. The Congress, in full knowledge of the various experiences of England and France, deter- mined finally that the domestic situation lent itself more readily to a system of license control over the manufacture and distribution of foods than to a system either of fixed or maximum prices. The transition to a war-time basis, it was felt, should be made more gradual than either of the latter alternatives would permit. It was believed, too, that the patriotism of the people could be relied upon to carry through the less rigid program of control. Other features of especial note in the act were the powers which it delegated to the President to requisition " necessaries " ; to purchase or store wheat, flour, meal, beans, and potatoes ; to take over for use or operation by the Government factories or plants manufacturing "necessaries"; to regulate or prohibit operations of exchanges and boards of trade ; to commandeer distilled spirits; and to fix the prices of coal and coke. It was this law also which guaranteed a minimum price of $2 per bushel for wheat, binding until May, 1919, and provided that the President might fix a higher price at his discretion. THE LICENSE SYSTEM. The backbone of the administration of war-time control over foods lay in the license system and the many rules and regulations which were imposed upon all who came under it. The law itself set up control over no particular commodities, with the exception of wheat. It simply gave the President power, by issuing proclamations from time to time, to bring under license control dealers in those com- modities which he and the Food Administrator wanted to regulate. The name of every class of food that was controlled, presumably, may be found in the different proclamations made by the President between August 10, 1917, and the close of war, in which he declared that dealers in the foodstuffs specified must secure a license from the Food Administration before doing further business. The first of these proclamations, aside from the Executive order issued the day the law was signed creating the Food Administration and appoint- ing Herbert Hoover as Food Administrator, was issued August 14, 1917, and called for the licensing of wheat and rye elevators and millers. By all odds the most important of all the proclamations was that of October 8, 1917, which called in substance for the licensing of every dealer in any staple food commodity. It provided for the licensing of manufacturers and distributors of wheat, rye, barley, flours, oats, oatmeal, corn, cornmeal, rice, dried beans or peas, cot- ton seed, vegetable oils, lard, milk, butter, cheese, beef, pork, mutton, poultry, eggs, fish, fruits, vegetables, canned goods, dried fruits, and sugar. Proclamation by proclamation the list of dealers from whom 44 HISTORY OF PRICES DURING THE WAR. licenses were required was extended, until at the end virtually the whole food group was under license control. 1 The discretion left by the act to the administrators for the deter- mination of dealers who may be licensed was exceeded in scope only by that left to them for the determination of foods that may be put under license control. The law in no sense tied the hands of the food administrators in the latter respect. It gave them power to control any and all foods or feeds. There were, moreover, but few dealers in those foods or feeds whom they might not bring under license control. The substance of the law was that all persons en- gaged in the importation, manufacture, storage, mining, or distribu- tion of any necessaries might be licensed. But two exceptions espe- cially important were made to that general rule. The law specifically exempted from license control all farm and garden producers and all retailers whose gross annual sales fell below $100,000. 1 The President signed 8 Executive orders and 19 proclamations under this art iVom Aug. 10, 1917, to Nov. 25, 1918, as follows : EXECUTIVE ORDERS. Aug. 10, 1917. Providing for organization of United States Food Administration. Aug. 14, 1917. Providing for organization of Food Administration Grain Corporation. Sept. 2, 1917. Directing Treasury Department to enforce sees. 15 and 16 of food-control act. Sept. 27, 1917. Providing for appointment of secretaries to Federal food administra- tors without civil-service examination. Oct. 23, 1917. Providing for requisitioning of foods and feeds. Nov. 10, 1917. Amending civil-service regulations. Nov. 27, 1917. Authorizing United States Food Administrator to find that fair profit is normal average prewar profit. June 21, 1918. Designating Food Administration Grain Corporation as agency of United States to purchase wheat, and directing that capital stock be increased. B PBOCLAMATIONS. Aug. 14, 1917. Licensing of wheat and rye elevators and millers. Sept. 7, 1917. Licensing of importers, manufacturers, and refiners of sugar, sugar sirups, and molasses. Oct. 8, 1917. Licensing of manufacturers and distributors of certain food commodities. Nov. 7, 1917. Licensing bakers. Nov. 15, 1917. Licensing of arsenic industry. Dec. 8, 1917. Limiting alcoholic content of malt liquor. Jan. 3, 1918. Licensing of ammonia industry. Jan. 10, 1918. Licensing the importation, manufacture, storage, and distribution of feeds and certain other food commodities. Jan. 18, 1918. Conservation of wheat. Jan. 30, 1918. Licensing of bakers not already licensed, and importers and distributors of green coffee. Feb. 21, 1918. Fixing guaranteed prices for 1918 wheat crop. Feb. 25, 1918. Licensing of fertilizer industry. May 14, 1918. Licensing of farm-equipment industry. May 14, 1918. Licensing packers of canned tuna and others. June 18, 1918. Licensing of stockyards. Sept. 2, 1918. Fixing guaranteed prices for 1919 wheat crop. Sept. 6, 1918. Licensing of dealers in live or dead cattle, sheep, swine, or goats. Sept. 16, 1918. Prohibiting manufacture of malt liquors. Nov. 2, 1918. Licensing operators of warehouses storing goods and feeds for hire and others. GOVERNMENT CONTROL OVER PRICES. 45 THE TEETH OF THE STATUTE. There were put into the statute itself, quite apart from any regu- lations which the Food Administration might later set up under it, enforcement clauses which were powerful weapons in the admin- istration of its provisions. It contained the threat of a fine of $5,000 or $10,000 against violators of nearly every section in the law, or imprisonment for not more than four or five years. The law, in the famous section 4, specifically declared it to be unlawful to destroy any necessaries for the purpose of enhancing the price; to waste necessaries ; to hoard necessaries ; to monopolize necessaries ; to make any unjust or unreasonable rate or charge in handling neces- saries ; to restrict the facilities for transporting, producing, harvest- ing, manufacturing, supplying, storing, or dealing in necessaries; to restrict the distribution of necessaries ; or to exact excessive prices for any necessaries. This section, though the most sweeping in its statement of unlawful practices, left some ambiguity as to penalties for its enforcement. There was, moreover, written into the law an authorization for the President to requisition foods, and another for him to make purchases. Those powers, however little exercised, stood always as effective potential instruments. But, quite aside from these penalties in the law, there was, of course, a much more effective instrument in the appeal to a war-time spirit of cooperation. By no other price-control agency at Washington were there set up so many legal and patriotism-arousing devices for the enforcement of their regulations. THE FIXING OF A MINIMUM PRICE FOR WHEAT. The fixing of a minimum price for wheat is another phase of the food-control act which deserves especial note, both because of its own merit and because it represents a distinct break in policy with the rest of the act. Wheat was the only commodity for which the law fixed a price. It was the only food commodity for which the law specifically stated that a price might be fixed. But even the license section, so many believe, opened a way for fixing food prices to be charged by licensees. In any case, there was left no doubt what was to be done about wheat. A definite guarantee of $2 per bushel for all No. 1 Northern spring wheat, at Chicago, was made for deliveries up to May 1, 1919. The prices of equivalent wheats or other stand- ard grades at various markets were to be figured, upon that scale, by the official grain standards established under the United States grain-standards act. The President, while not permitted to set aside this guaranteed minimum price fixed in law, was given 46 HISTORY OF PRICES DURING THE WAR. power to increase the guaranteed minimum from time to time to encourage production. In point of fact he did increase that mini- mum to $2.20 for the 1918 crop, by proclamation on February 21, 1918, and again to $2.26, for the 1919 crop, by proclamation on Sep- tember 2, 1918. The effectiveness of the guarantee was assured by an authorization to purchase any wheat, if occasion demanded, for which, a minimum price had been guaranteed. The food-control bill was enacted into law only through the pressure of war emergencies and, in keeping with the arguments i \vhich were used for its passage, contains a clause that it shall cease to be in effect when the President shall proclaim that the war against Germany has terminated. (2) THE POLICIES OF THE FOOD ADMINISTRATOR. The considerable leeway in control over food which the act gave to the President makes peculiarly important an analysis in full of the policies of his Food Administrator. The act, with a single con- spicuous exception, left wide powers with the President which he might or might not use. The* policies of food control in which Mr. Herbert Hoover believed, therefore, can not but call for careful consideration. Mr. Hoover returned to this country with his mind fully adjusted to and familiar with the several experiences with food control in in Europe. The President, after issuing his own general program for food control on May 19, 1917, depended upon the advice and leadership of Mr. Hoover for establishing a proper administration of control. There was scarcely a limit of regulatory experience which had not been tried out abroad. The British food controller at our entrance into war, indeed, had already been given power to set minimum or maximum prices and to fix prices absolutely. Those facts were outlined to the Government by Mr. Hoover within a week after his return. 1 It is noteworthy in the light of these and later developments that Mr. Hoover upon his arrival laid before the President these five cardinal principles of food control: First, that the food problem is one rather of wise administration than " dictatorship " ; second, that administration can be carried out largely through constituted agencies of producers, distributors, and consumers ; third, the organization of the community for volun- teer conservation of foodstuffs; fourth, that all important positions, so far as may be, shall be filled with volunteers; and fifth, the centering of independent responsibility for food administration directly under the President, with cooperation from the Department 1 Letter from Mr. Hoover to the Secretary of State of date May 10, 1917. GOVERNMENT CONTROL OVER PRICES. 47 of Agriculture, the Department of Commerce, the Federal Trade Commission, and the railway executives. 1 Mr. Hoover at the outset of -his administration settled upon the policies of control for which he intended to work and upon the gen- 1 President Wilson, on May 19, 1917, soon after the return of Mr. Hoover from Europe, appointed Mr. Hoover as Food Administrator pending legislation and issued the following program for food control : " It is very desirable, in order to prevent misunderstandings or alarms and to assure cooperation in a vital matter, that the country should understand exactly the scope and purpose of the very great powers which I have thought it necessary in the circumstances to ask Congress to put in my hands with regard to our food supplies. Those powers are very great, indeed, but they are no greater than it has proven necessary to - lodge in the other Governments which are conducting this momentous war, and their object is stimulation and conservation, not arbitrary restraint or injurious interference with the normal processes of production. They are intended to benefit and assist the farmer and all those who play a legitimate part in the preparation, distribution, and marketing of foodstuffs. " It is proposed to draw a sharp line of distinction between the normal activities of the Government represented in the Department of Agriculture in reference to food pro- duction, conservation, and marketing, on the one hand, and tho emergency activities necessitated by the war in reference to the regulation of food distribution and consump- tion, on the other. All measures intended directly to extend the normal activities of the Department of Agriculture in reference to the production, conservation, and tho marketing of farm crops will be administered, as in normal times, through that depart- ment, and the powers asked for over distribution and consumption, over exports, imports, prices, purchase, and requisition of commodities, storing, and the like, which may require regulation during the war will be placed in the hands of a commissioner of food admin- istration, appointed by the President and directly responsible to him. OBJECTS SOUGHT BY LEGISLATION. " The objects sought to be served by the legislation asked for are : Full inquiry into the existing available stocks of foodstuffs and into the costs and practices of the various food producing and distributing trades ; the prevention of all unwarranted hoarding of every kind and of the control of foodstuffs by persons who are not in any legitimate sense producers, dealers, or traders ; the requisitioning, when necessary for the public use, of food supplies and of the equipment necessary for handling them properly ; the licensing of wholesome and legitimate mixtures and milling percentages, and the prohibition of the unnecessary or wasteful use of foods. " Authority is asked also to establish prices, but not in order to limit the profits of the farmers, but only to guarantee to them when necessary a minimum price which will insure them a profit where they are asked to attempt new crops and to secure the consumer against extortion by breaking up corners and attempts at speculation, when they occur, by fixing temporarily a reasonable price at which middlemen must sell. " I have asked Mr. Herbert Hoover to undertake this all-important task of food administration. He has expressed his willingness to do so on condition that he is to receive no payment for his services and that the whole of the force under him, exclusive of clerical assistance, shall be employed, so far as possible, upon the same volunteer basis. He has expressed his confidence that this difficult matter of food administration can be successfully accomplished through the voluntary cooperation and direction of legitimate distributers of foodstuffs and with the help of the women of the country. "Although it is absolutely necessary that unquestionable powers shall be placed in my hands in order to insure the success of this administration of the food supplies of the country, I am confident that the exercise of these powers will be necessary only in the few cases where some small and selfish minority proves unwilling to put the Nation's interests above personal advantage, and that the whole country will heartily support Mr. Hoover's efforts by supplying the necessary volunteer agencies throughout the country for the intelligent control of food consumption and securing the cooperation of the most capable leaders of the very interests most directly affected, that the exercise of the powers deputed to him will rest very successfully upon the good will and cooperation of the people themselves, and that the ordinary economic machinery of the country will be left substantially undisturbed. FOOD ADMINISTRATION ONLY WHILE WAR LASTS. " The proposed food administration is intended, of course, only to meet a manifest emergency and to continue only while the war lasts. Since it will be composed for the most part of volunteers, there need be no fear of the possibility of a permanent 48 HISTORY OF PRICES DURIXG THE WAR. eral skeleton of organization by which he hoped to administer them. The general approach to his problem, from an organization stand- point, seems to have come to him before the detailed policies of con- trol. He gave out again and again during the spring of 1917 state- ments that food control to him fell into four great branches: First, the control of exports; second, the setting up of instrumentalities to regulate or do away with speculation; third, the mobilization of I he women and men of the country engaged in personal distribution of foods as actual members of the Food Administration to carry out national conservation; and, fourth, the erection in every State of a Federal State food administration and the decentralization so far as possible of functions into State administrations. Of this organiza- tion plan for control no more need here be said. But the policies of control which were worked out under that broad plan do require especial analysis. In a word, it may be said that the outstanding policies of the Food Administrator were those declaring against fix- ing absolute prices, the " reasonable margin of profit " rule, the disregard of replacement value in fixing margins, the spirit of co- operation extended to the trade, and the faith that was placed upon campaigns of education. Xo FIXED PRICES ESTABLISHED. Xo other policy of the Food Administrator bore as much signifi- cance perhaps, or showed so distinctly in the act, as the policy not to fix. prices in the common sense. It matters little for the purpose at hand whether that was from the outset a determined policy, based upon European experiences, or one forced by the exigencies of a political situation. The food control act as passed does not, at any rate, specifically empower the fixing either of minimum, absolute or maximum prices on foodstuffs. 1 It appears, in fact, to be an act designed quite as much to control the manufacture, distribution, and conservation of commodities within the food industry as to control the prices of foods. But the impression must not be harbored that the act was loosely drawn or toothless even as to the point at issue in bureaucracy arising out of it. All control of consumption will disappear when the emergency has passed. It is with that object in view that the administration considers it to he of pre-eminent importance that the existing associations of producers and dis- tributors of foodstuffs should be mobilized and made use of on a volunteer basis. The successful conduct of the projected food administration by such means will be the finest possible demonstration of the willingness, the ability, and the efficiency of democracy and of its justified reliance upon the freedom of individual initiative. The last thing that any American could contemplate with equanimity would be the introduction of anything resembling Prussian autocracy into the food control of this country. " It is of vital interest and importance to every man who produces food and to every man who takes part in its distribution that these policies thus liberally administered should succeed and succeed altogether. It is only in that way that we can prove it to he absolutely unnecessary to resort to the rigorous and drastic measures which have proved to be necessary in some of the European countries." 1 The one exception to that policy was wheat. GOVERNMENT CONTROL OVER PRICES. 49 this monograph. The contrary was so distinctly true that, had occa- sion demanded, foods could have been requisitioned without further legislation. Mr. Hoover, though more in touch with the need for food abroad than anyone else, did not believe that it was necessary for this country to be put upon a ration basis at once, or even a fixed- price basis. He believed that a sufficient saving and price control could be effected through approximate measures. In a broad way it appeared to him simply that war-time demands had given rise to speculation and destroyed the ordinary balances and checks upon prices. He had in mind at the beginning, therefore, no rigid price fixing, but a stimulation of patriotism which would set the country at large to saving food, help the administration to check speculation, and restore the " balance wheel on prices." x The motto for the Nation, indeed, which Mr. Hoover gave out just following his accept- ance of the food administratorship was " Eat plenty, wisely, without waste.'' It was left to him to set up more stringent regulations later on as each situation required. 2 THE " REASONABLE MARGIX-OF-PROFIT " UULE. The real price control within the Food Administration came from its common requirement that licensees, covering dealers virtually in all food commodities, should not receive more than a " reasonable margin of profit." This rule, prohibiting unreasonable profits, was incorporated in the general license regulations. It was thereby made applicable to all licensees, save only salt-water fishermen, for the importation, manufacture, storage, and distribution of food com- modities and feeds. A somewhat broader definition of the " reason- able-margin-of-profit " rule may be had from the language of the general regulations : The licensee shall not import, manufacture, store, distribute, sell, or other- wise handle any food commodities on any unjust, exorbitant, unreasonable, dis- criminatory, or unfair commission, profit, or storage charge. This general requirement, that profits of all licensees be reason- able, does not indicate what would be considered a reasonable profit. The question arises at once, What did the Food Administrator be- 1 It is difficult to find a more precise statement of the early policies of Mr. Hoover upon price control of foods than that which he .eavo in a statement on May 19, 1917, as follows : " The consequence is that a sudden demand or concerted effort of speculation can entirely upset price conditions in the United States to a degree hitherto unknown, and it is necessary for us to devise with the hest thought of this country a temporary balance by which we can establish stability of prices in the great staples, bearing in mind always that we must maintain production by assuring good return to the producer, and at the same time will diminish the cost of living, lest we face social readjustments and strike disturbances, with consequent loss of national efficiency." 2 The testimony of Mr. Hoover before the Senate Committee on Agriculture and For- estry on May 8, 1917, throws some light upon his reactions to the experience of Europe with maximum and minimum prices for foodstuffs. It is here quoted in part: " Senator BRADY. Do you feel that we should make a minimum price on farm products? " Mr. HOOVER. On the price question there are in this world three conceptions : The agricultural population in this country or any other country would like to have a mini- 125547 20 i 50 HISTORY OF PRICES DURING THE WAR. lieve, as a general policy to guide him in. issuing special regulations, was a reasonable profit? The working out of that general policy gave shape to three rather definite phases of the rule: That the " reasonable margin of profit " must be figured upon a cost basis, the fixing of maximum margins of profit, and the disregard of replace- ment value in fixing margins. mum price. Tlie minimum price is a protection solely to the producer, and it is capable of execution, because such a thing would probably be backed by the Government who could pay the money. Now, the consumer, on the other hand, clamors for a maximum price to protect him. A maximum price has proved a total failure in Europe in every case, except where the Government owned enough of the commodity that it could control the market. "Senator NORRIS. Has the minimum price been succeessful there? " Mr. HOOVEK. Yes ; it has been used as an effective agent to stimulation. "Senator NORUIS. The maximum price has proved a failure? " Mr. HOOVER. The maximum price has proved a failure in all cases, except where the Government controlled enough of the commodity. I might make that clear by stating that the French Government imported last year about 25 per cent of their breadstuffs requirements and bought those breadstuffs for the Government and used that as a club to maintain the maximum price, but in all commodities where there is no club of that character the maximum price is a total failure. " Senator WADS WORTH. From the standpoint of the consumer? " Mr. HOOVER. Well, as a matter of operation. I might tell you w'iy it fails. The establishment of a maximum price is, in itself, the result of a shortage of supply ; other- wise, we do not do it. You have less foodstuffs than will go around to the whole of the consumers' demand, and therefore you put on a maximum price. " Senator GRONNA. Which discourages production, does it not the maximum price? " Mr. HOOVER. It all depends on the price. " Senator GRONNA. But in order to satisfy the consumer it would naturally discourage production? " Senator SMITH of Georgia. Unless it was high? " Mr. HOOVER. Unless it was high. " Senator GRONNA. That would not satisfy the consumer? " Mr. HOOVER. No ; but just to elaborate the reasons why it failed, you find imme- diately when a maximum price is established that all of the consumers of the country who can open a chain directly with the producer at once do so, and they not only open a chain for their daily needs, but they proceed to hoard at once, and the phenomenon accompanying a maximum price I think Dr. Taylor will confirm this has been the total disappearance of that commodity all the way from a fortnight to three months from the normal market, because those minority consumers who can reach the producer directly will absorb the whole supply and they will make their own bargains, and often if they do make it they set up a cycle ; and it has been an economic failure, except where there has been a club to enforce it. " The CHAIRMAN. A maximum price that was too low would have that effect anyway, would it not the consumption of the total supply? " Mr. HOOVER. If you have a shortage in supply, there is no maximum price that holds. You can put it as high as you like where there is insufficiency of supply. " Senator SMITH of Georgia. The maximum price has only been effectual where the Government controlled the commodity and put the price down so as to put the commodity in reach of the people, and that very act checks exorbitant price. " Mr. HOOVER. Yes. They could, in effect, manipulate the price if they wanted to. " Senator BRADY. From the trend of your interesting statement (regarding wheat and other control abroad), Mr. Hoover, it seems to me it leads to the axing of an arbitrary price rather than a minimum or maximum price? " Mr. HOOVER. That is our view ; that is our experience in Belgium ; we come to fix an arbitrary price. I might say that was discussed between myself and the English food controller and the French food controller, but they did not have to do it, because they have the import implement of control by which they could handle the market." GOVERNMENT CONTROL OVER PRICES. 51 THE COST BASIS. The first phase of the " reasonable margin of profit " rule was so important that it came frequently itself to be known as the " cost basis " rule. It was, however, in reality, simply a part of the larger rule. It stated that the cost of the commodity, rather than the market value, should be the starting point from which to figure the " reasonable margin of profit " allowable. The food-control act gave no authority to demand that anybody should sell goods below the actual cost, and there was no means, therefore, if there had been inclination, to enforce a basic price. The design of the law, ap- parently, was simply to prohibit the exaction of unreasonable prices in foodstuffs. A basic price, it was believed, even if set, would necessarily have had to be near the prevailing market. That general practice then would have given enormous profits to dealers who had bought their goods through contract a year previous at lower fig- ures. It was the inclination of the trade, naturally, to have the Food Administration begin to calculate a " reasonable margin of profit " from the market value or cost of replacement. The admin- istrators of food control stuck in principle, however, to the cost of the goods as the proper basis for determining profits allowable throughout the war. Once it was determined to accept costs as the base, above which a " reasonable " profit would be allowed, an interpretation pf " reason- able" was imperative. Mr. Hoover gave emphasis to Jiis belief that no person was entitled to make more profit from *any employment than he could have made under prewar conditions. 1 He did not interpret this policy to mean, however, that no licensee could charge more than a prewar price. A due allowance was made for in- creased cost of raw materials, labor, and manufacture. The word " reasonable " was construed* to mean the average percentage of profit made in prewar jtimes (taking the three years prior to the European war as a basis) on the same commodity, with an even market, and under freely competitive conditions. One of the strong- est or weakest features of the "reasonable margin of profit" rule, according to the point of view, is that it sets up no uniform or fixed price for a particular commodity at various markets or within the same market. Each dealer is allowed his "reasonable" margin of profit. It becomes patent that the effectiveness of the rule depends upon the rigor of its enforcement. That rule was, in any event, the bulwark of price control administered over foods. 1 Mr. Hoover, in a speech before the Pittsburgh Press Club on April 18, 1918, said in part : " I do not believe that any person in the United States has a right to make 1 cent more profit out of any employment than he would have made under prewar conditions, r I do not care whether this refers to the farmer, to the laborer, to the manufacturer, to the middleman, or to the retailer. To me every cent taken beyond this standard is money abstracted from the blood and sacrifice of the American people." 52 HISTORY OF PRICES DURING THE WAR. FIXING MAXIMUM WHOLESALE AND RETAIL MARGINS. The scheme of holding food profits to a " reasonable " margin of profit underwent some evolution before it was finally determined to fix definite maximum margins for wholesalers and later for retailers. The earlier difficulties were really gropings for a mechanism by which to find the average prewar nonspeculative profits. At first the dealer was allowed to base his present profits upon his prewar per- centage of profits. For example, if he made 10 per cent on canned tomatoes before the war, he might make 10 per cent on them during the war. But since the prices of canned tomatoes had materially ad- vanced during the war, of course, 10 per cent of absolute profit over a war-time price meant more to the dealer than that percentage had meant over his prewar price. This extra profit, in a general way, was assumed necessary to cover increased investment and costs of doing business. But neither the trade nor the Food Administration was pleased with that interpretation of the rule. It at once put a handicap upon the conscientious dealer and left the Food Adminis- tration no definite standard for enforcing the law. No one could say, in a clear-cut way, what the law was. The final step in control by margins was reached when, on April 6, 1918, the Food Administration announced a series of definite maximum margins of profit allowable on the more important staples at wholesale. There had been fear, in working out the plan, that the low-cost dealers would increase their profits to the basis of the widely applicable, and therefore, higher margins. A definitely fixed mar- gin might be reasonable for one dealer but afford excessive profits to another. Accordingly, it was determined to fix a high and low maximum margin upon each item. The higher margin was to be made applicable to the dealers with high costs, and the lower margin to those with relatively low costs. In order not to destroy compet- itive conditions tending to reduce prices below the maximum, neither margin was made a minimum one. They were simply maxima, be- yond which profits would not prima facie be considered reasonable or lawful. It was a great relief to the trade, and the administrators, to have definite margins prescribed as standards and it made, alto- gether, for better results. The Distribution Division, indeed, at- tributed to it a material reduction in average profits by reason, in part, of its easier enforcement. Soon it was possible to dispense with the jobbers' monthly reports and enforce the rule by aid sim- ply of inspections and special reports. . It ought to be made clear that the maximum margins were not final, definite standards. It was conceivable that they might be exceeded lawfully or that dealers making less than they stipulated might be taking unreasonable profits. They were the maximum mar- GOVERNMENT CONTROL OVER PRICES. 53 gins of profit which the Food Administration, without further evi- dence, would consider reasonable. An individual who believed them too low must take the burden of proof upon himself to show that his profits in excess of the announced margins were reasonable. But, as a matter of practise, the margins operated as definite standard maxima which were not to be exceeded in any case. On the other hand, the institution of these fixed maximum margins did not (until June 6, 1918) abrogate the rule that no man could make more than a reasonable profit, even though that profit was less than the maxi- mum prescribed. The Food Administration, between April 6, 1918, and the sign- ing of the armistice, announced maximum margins on sales by wholesalers to retailers on a large number of the more important staples (sugar, wheat and other flour, lard, lard substitutes, stand- ard hams, bacon, condensed and evaporated milk, rice, hominy, grits, oatmeal, rolled oats, cornmeal, beans, corn oil, sirup, cottonseed oil, canned peas, tomatoes, corn, beans, salmon and sardines, dried prunes, apples, peaches and raisins, and buckwheat) at margins vary- ing from 50 cents to 75 cents per barrel on wheat flour down to 1 cent to 2 cents per pound on standard hams and bacon. 1 Under the announcement of April 6 the rule limiting profits to a prewar basis was held to apply to all licensed articles, whether the margins had been fixed or not, while in that of June 6 the prewar rule was only applied to licensed commodities upon which no specific margins had been established. The task of establishing maximum retail margins, even apart from the handicap in the law, was greater far than that establishing the above wholesale margins. There w y ere vast differences in the cost 1 Wholesale margins : The most complete list of maximum margins on sales by whole- salers to retailers is that of June 6, 1918, below. The margins set forth on Apr. G previous are extended in this later list, and the June 6 list is, therefore (except for an increase in the. maximum for flour set on Nov. 4, 60 cents to 90 cents per barrel ; the setting of a maximum for buckwheat flour on Nov. 8 at 10 to 12| per cent; and a margin of 21 cents per pound on oleomargarine and butter substitutes announced on Dec. 5), the one which remained in force from that time on. COMMODITIES, MAXIMUM MARGINS. Sugar, 15 cents to 35 cents per 100 pounds. Wheat flour, 50 cents to 75 cents per barrel. Lard, lard substitutes, bulk (packages of 50 pounds or over), 1J cents to 2 cents per pound. Standard hams, bacon, 1 cent to 2 cents per pound. All flours (except wheat), lard and lard substitutes, in packages (less than 50 pounds), condensed, evaporated milk, 8 to 10 per cent. Rice, hominy, grits, oatmeal, rolled oats, corn meal, beans, in bulk (packages of 25 pounds or over), 10 to 121 per cent. Rice, corn meal, hominy, grits, oatmeal, self-rising and prepared flour, and rolled oats, all in packages ; corn oil, corn sirup, sugarhouse sirup, mixed sugar and corn sirup, and cottonseed oil ; standard and extra standard licensed canned peas, tomatoes, corn, and canned dried beans, and pink, chum, and red salmon and all domestic sardines ; all dried prunes, apples, peaches, raisins, 12 to 15 per cent. 54 HISTORY OF PRICES DURING THE WAR. of doing business throughout the country, and the control of retail prices was left largely to the local food administrators and to price- interpreting boards. The same requirement for more definite stand- ards of what was to be considered a "reasonable" profit, however, finally forced the making of retail margins. Margins were early fixed for sugar and flour at retail and later for butter, butter substi- tutes, eggs and cheese. Finally, on November 7, 1918, a definite list of maximum margins for sales by retailers to consumers was an- nounced. 1 Retailers were warned that these margins were maxima only, and were not to be construed as absolute margins. A retailer, moreover, who ordinarily sold these commodities for less than the specified margin was not under the rule permitted to increase his profit beyond that normal point. DISREGARD OF REPLACEMENT VALUE. It was also a declared policy worthy of note, that the Food Ad- ministrator in setting margins for commodities at retail, as well 1 Retail margins : The Food Administration, on Nov. 7, 1918, made the following an- nouncement of maximum retail margins : Maximum margins on sales by retailers to consumers : The Food Administration has de- termined that any sales of food commodities at a gross margin above delivered cost in excess of those indicated below are unreasonable, and will be regarded as prima facie evidence of a violation of the statute and of the above regulation. Percentage may be calculated on the selling price. Delivered cost shall mean the cost at the railroad, steam- boat, or other terminal in the retailer's town. Where the retailer is not located in a railroad or steamboat town he may include any hauling charge in the delivered cost. The lesser margin indicated is not a minimum margin, but is a maximum margin for, those whose cost of doing business is less, such as stores which do not perform the serv- ices of credit and delivery. Any change from the prewar practice in cash discount terms or other changes which tend to or result in increasing the margin of profit allowed will be dealt with as an unfair practice. The retailer may have the benefit of fractional costs on each transaction ; that is, he may calculate the total charge to a customer on any transaction as if fractional costs were not allowed, and if the result is a fraction, he may add thereto such fraction of a cent as may be necessary to make a price in even cents. The following table gives an example in the case of eggs, using the cash and carry margin of 7 cents per dozen : Amount of sale. Cost. Margin . Total. Fraction added. Maximum selling price. 1 dozen . SO. 46} Cents. 7 $0. 53J 9 $0. 54 2 d o/en .92* 14 1.06* | 1.07 3 dozen 1.38f 21 1. 59| | 1.60 MAXIMUM MARGINS. Victory flour, original mill packages, one-half-barrel quantities and more, $1 to $1.20 per barrel. Victory flour, original mill packages, one-fourth-barrel quantities and less, $1.35 to $1.60 per barrel. Victory flour, broken mill packages, 1J cents per pound. Wheat flour, original mill packages, one-half-barrel quantities and more, $1 to $1.20 per barrel. Wheat flour, original mill packages, one-fourth-barrel quantities and less, $1.35 to $1.60 per barrel. GOVERNMENT CONTROL OVER PRICES. 55 as wholesale, gave no regard to the replacement value in determining upon the maximum. He was not concerned, in other words, so much with market value as with equitable -distribution. The cost of pur- chase, not the cost of replacement, was adopted as the sounder basis for determining what was a reasonable profit to allow. AGREEMENTS WITH THE TRADE. The experience of the Food. Administrator in Europe, together with his conferences here throughout the spring of 1917 and his own instinctive point of view, gave him a determined faith in the integrity and general honesty of the trade. He maintained, as a cardinal policy from the beginning, a very close and intimate con- tact with the trade. The men, whom he chose to head his various commodity sections and responsible positions, were in a large measure tradesmen. They were, too, generally volunteers. The de- termination of policies of control within each branch of the food industry was made in conference with the tradesmen of that branch, Wheat flour, broken mill packages, 1J cents per pound. Barley flour, original mill packages, 18 to 22 per cent. Barley flour, broken mill packages, 1| cents per pound. Rye flour, original mill packages, 18 to 22 per cent. Rye flour, broken mill packages, 1J cents per pound. Corn flour, original mill packages, 18 to 22 per cent. Corn flour, broken mill packages, 1| cents per pound. Rice flour, 18 to 22 per cent. Corn meal, bulk, 1J cents per pound. , Corn meal, original mill packages, 18 to 22 per cent. Hominy, 18 to 22 per cent. Sugar, all kinds, in bulk, 1J cents per pound. ' Sugar, all kinds, in refiners' original packages, 1 cent per pound. Evaporated milk, unsweetened, 18 to 22 per cent. Oat meal and rolled oats, bulk, 11 cents per pound. Oat meal and rolled oats, original mill packages, 20 to 25 per cent. Rice, 20 to 25 per cent. Beans, white or colored, 20 to 25 per cent. Starch, edible, 20 to 25 per cent. Corn sirup, tins, 20 to 25 per cent. Canned corn, peas, and tomatoes, standard grades, 25 to 30 per cent. Canned salmon chums, pink, and red, 25 to 30 per cent. Canned sardines, domestic, 25 to 30 per cent. Dried fruit, raisins, prunes, and peaches, 25 to 30 per cent. Lard, pure leaf, bulk, 5 to 6 cents per pound. Lard, pure leaf, tins, 18 to 22 per cent. Lard substitutes, bulk, 5 to 6 cents per pound. Lard substitutes, tins, 18 to 22 per cent. Breakfast bacon, whole pieces, 6 to 7 cents per pound. Heavy bacon, whole pieces, 5 to 6 cents per pound. Hams, smoked, whole, 6 to 7 cents per pound. In quoting sliced ham and bacon add usual differential to cover actual shrinkage. By other special regulations the retailers' maximum margins have also been fixed in accordance with the following list : Potatoes, white or Irish, 25 to 30 per cent. Onions, 25 to 30 per cent. Eggs (whether sold in carton or not), 7 to 8 cents per dozen. Butter, 6 to 7 cents per pound. Butter substitutes, oleomargarine, nutmargarine, etc.. 5 to 6 cents per pound. Cheese American, Cheddars, twins, flats, daisies, long horns, and Y. A.'s, 7 to 8 cents per pound, 56 HISTORY OF PRICES DURING THE WAR. meeting at intervals in Washington. It might be said, in one sense, that the framework of food control, as of raw material control, was built upon agreements with the trade. The enforcement of the agreements once made, moreover, was intrusted in part to the co- operation of constituted trade organizations. The industry itself was made to feel responsible for the enforcement of all rules and regulations. Those agreements were frequently of an informal char- acter and many of them were never .written upon paper. CAMPAIGNS OF EDUCATION FOR CONSUMERS. The basis of all efforts toward control exercised by the Food Administration was the educational work which preceded and ac- companied its measures of conservation and regulation. Mr. Hoover was committed thoroughly to the idea that the most effective method to control foods was to set every man, woman, and child in the country at the business of saving food. The fact, as: he estimated, that 90 per cent of the ultimate food consumption of the country was in the hands of the women prompted him to lay before them rather full plans showing how to eliminate waste, reduce consumption, and introduce substitutes. The country was literally strewn with millions of pamphlets and leaflets designed to educate the people to the food situation. No war board at Washington was advertised as widely as the United States Food Administration. There were Food Ad- ministration insignia for the coat lapel, store window, the restaurant, the train, and the home. A real stigma was placed upon the person who was not loyal to Food Administration edicts through pressure by schools, churches, women's clubs, public libraries, merchants' as- sociations, fraternal organizations, and other social groups. Each State had an educational director and a vast organization under him to propagate food policies. The historian of the Food Administra- tion makes a unique attempt to estimate at the commercial value of the advertising which w y as given, generally gratis, to the propaganda of the Food Administration : So spontaneous did the contributions of advertising become after the first few months that it has been impossible to keep any accurate account of the money value of the advertising which has been given to the Food Adminis- tration. From such records as have been kept ? however, a conservative esti- mate approximates the sum of $18.000,000. This record includes outdoor adver- tising by bulletin boards and the electrical displays, indoor advertising, as in railroad and street cars, space in periodicals, newspapers, and other such mediums, but is exclusive of moving-picture contributions, " Four minute " and other volunteer speakers, and other volunteers who would have ordinarily been paid for their services, among whom were American artists of national repu- tation. The general policies set up by the Food Administrator, under the liberal powers given to the food-control act, were designed toward feeding the country and the Allies as nearly upon a prewar basis as GOVERNMENT CONTROL OVER PRICES. 57 each situation would permit. The variations in general policy can be given a comprehensive analysis only under the particular commo- dity heads. The whole structure of food control rested in principle upon voluntary cooperation and agreement. (3) THE ADMINISTRATION OF FOOD CONTROL. The real skeleton upon which must hang any inquiry into the administration of food control is the license system which was given authority in law by the food-control act and around which was set up every regulation of the Food Administration. A documentary record, arranged in order of authority, of every rule of food con- trol could be made by an examination of the food-control act, the presidential proclamations and Executive orders, the general license regulations and the special license regulations. The food-control act was the authority granted by Congress to the President to con- trol foods, the presidential proclamations and Executive orders issued under that act created the Food Administration and pro- claimed what persons and commodities were to be licensed, the gen- eral license regulations declared the rules and regulations set up by the Food Administration and made applicable to all licensees and licensed commodities, and the special license regulations declared the rules and regulations set up by the Food Administration and made applicable to particular licensees and particular licensed com- modities. The tangible evidence, therefore, of all commodities that came under formal food control is to be found by following these links of the license system. THE LICENSE SYSTEM AS THE BASIS OF CONTROL. The Food Administration controlled foods during the war through its power to prescribe the conditions under which food dealers might operate. A review has already been made telling how the Food Administration, proclamation by proclamation, came into license control over very nearly the whole lot of food staples at wholesale. 1 Its license power lay in its right to grant or withdraw *A complete list of the Executive orders and proclamations, which extended Food Ad- ministration license control over the food group, was given in an earlier section of this chapter. These presidential proclamations drew increasing numbers of persons under license control until, on December 31, 1918, there were 263,737 firms, individuals, and corporations under license by the Food Administartion. There follows an enumeration of those licenses by kind : General licenses issued under the President's proclamation of Oct. 8, 1017, and supplemental proclamations 152, 100 Sugar licenses issued under the proclamation of Sept. 7, 1917 473 Bakers' licenses 38, 800 Salt-water fishermen's licenses 69, 218 Steamship bakers' licenses 1, 103 Near-beer manufacturers' licenses 377 Arsenic licenses i 511 Coffee licenses 1, 155 Total . - 263, 737 58 HISTORY OF PRICES DURING THE WAR. licenses at discretion. It required, in the exercise of that power, that each licensee accede both to general and special regulations as a condition permitting him to do business. The general license regulations, made applicable to all licensees, were gradually worked over and later condensed into a form compact enough to permit of ready analysis. 1 Reports w r ere required from each licensee showing complete information regarding any commod- ities dealt in by him and filled out upon forms prepared by the Food Administration; all property and records were to be held open for inspection; speculation and the making of unreasonable profits were prohibited; licensees were forbidden to make sales to speculators or deal with persons violating the food-control act; secret rebates and resales within the same trade were prohibited, and so too were com- bination sales. The above general rules pertained to all licensees, with a provision that if there arose an inconsistency between a gen- eral rule and a special rule, the special rule should prevail. The special license regulations, made applicable to particular classes of licensees, exceeded, of course, many times over in com- plexity and volume the more general requirements. The special re- quirements were in almost a whirl of modification all the while and seemed in policy constantly to be contradicting each other. Such a condition was by necessity the case, since the declared policy of the Food Administration was to meet each day the situation as it ap- peared that day. The special license regulations were made known in all manner of form by press releases, by mimeographed sheets, by pamphlets, by printed loose-leaf inserts, and by notification to the Federal State food administrators. Some of them, for one reason or another, were never printed. The inevitable confusion which grew up within the trade and the Government as these regulations began ta mass, gave necessity for the loose-leaf record of Food Administration rulings. That record, which was started well along in 1918, per- mitted of inserts daily as new rules supplanted or superseded old ones, and contains, presumably, all regulations made by the Food Administration. It is possible to assemble these rules into families of special-rule pamphlets, and that was generally done. The whole lot of special rules, including those that were printed in pamphlets and those that were not, comprises 28 separate groups. 2 1 The remarks that follow in the text are based upon the loose-leaf rules issued by the Food Administration pertaining to all licenses except salf-water fishermen. 2 The pamphlets of special rules were numbered serially from II to XXVIII, as listed below. A pamphlet of general rules was issued as No. I in the serial. II. Wheat and Rye Elevators, Dealers, and Millers. III. Corn, Oats, Barley Elevators, Dealers, and Millers. IV. Maltsters, Malt Dealers, and Near Beer Manufacturers. V. Rough Rice and Rice Millers. VI. Sugars, Sirups, and Molasses Manufacturers and Refiners. VII. Canners and Packers Vegetables, Salmon, Sardines, Tuna, Milk. VIII. Dried Fruits, Packers. GOVERNMENT CONTROL OVER PRICES. 59 The features and economic effects of food control can not be gleaned from a stud} T of the special license regulations by chronolog- ical order of issuance. It is proposed, therefore, to rearrange those rules and discuss them as they pertained to distinct groups of foods. An analysis of license control within the whole food group is here made under the main divisions, wheat, flour, and bread; sugar; livestock and meats; poultry and dairy products; oleomargarine; cotton seed and cottonseed products ; canned and dried foods : rice and rice flour ; coarse grains and feed stuffs ; coffee ; and the collateral commodities, ammonia, ice, and arsenic. Some repetition will be found in the discussion of these various groups, but repetition is less objectionable than vagueness. WHEAT, FLOUR, AND BREAD. The wheat problem in the United States, which reached its climax in May, 1917, was not a local affair. It had its beginning in the Eastern Continent in 1914, and by the time it enveloped America it was a world problem of huge proportions. The demands of Europe. After nearly three years of war, western Europe was on short rations. Even in normal times the European countries do not produce enough wheat for food. They import large quantities from India, Australia, Argentina, Siberia, Russia, the Balkans, Canada, and the United States. The average annual impor- tation for the three years preceding the war was approximately 550,000,000 bushels, of which about 100,000,000 bushels, including flour, were furnished by the United States. Ordinarily the United States produces in the neighborhood of 800,000,000 bushels of Avheat a year, and the domestic consumption is IX. Cotton Seed, Peanuts, Soya Beans, Copra, Palm Kernels, and Their Products. X. Manufacturers of Lard Substitutes and Oleomargarine. XI. Wholesalers, Jobbers, Importers, and Retailers of Nonperishable Food Com- modities. XII. Brokers and Auctioneers of Nonperishable Food Commodities. XIII. Bakers. XIV. Manufacturers of Miscellaneous Food Commodities. (a) Products containing wheat or wheat flour, other than bakery products. (b) Manufacturers and mixers of mixed flour. (c) Sirup mixers. XV. Fresh Fruits and Vegetables. XVI. Fresh and Frozen Fish Distributors. XVII. Salt Water Fishermen. XVIII. Poultry. XIX. Eggs. XX. Butter. XXI. Cheese. XXII. Raw Milk. XXIII. Meat Packers and Manufacturers of Lard Distributors of Fresh Meats. XXIV. Cold Storage Warehousemen. XXV. Feedingstuffs. XXVI. Tin and Other Containers. XXVII. All Public Eating Places. XXVIII. General Storage Warehousemen. 60 HISTORY OF PRICES DURING THE WAR. ii bout 646,000,000 bushels. The 1917 harvest, at the time America entered the war, was estimated at 635,000.000 bushels, thus leaving a deficit of 11,000,000 bushels. The Allies of Europe could not be satisfied, however, Avith anything but an extraordinary importation in 1917. For three years they had been engaged in the most destructive war in the world's history. Not only had their food requirements been increased but their production facilities had been diminished. At the same time, moreover, .unre- stricted submarine warfare had so reduced the Allied merchant fleets and so endangered world commerce that it was impracticable for any European nation to try to haul wheat over the long route from India or Australia or South America, especially when it was possible to buy in the United States. Siberian wheat was even less accessible than that of Australia, since the Russian port of Odessa had been shut off from western Europe by the closing of the Dardanelles. Thus in the spring of 1917 the United States was made the Mecca of Allied wheat buyers. The president of the Chicago Board of Trade stated that the largest buyers, both for cash and for future delivery, were the Governments of Europe. On the one hand, the vigor of buying by foreign agents had struck American markets like a tidal wave; on the other hand, the United States wheat crop, soon to be harvested, was shorter than it had been since 1913, and the supply would have been inadequate even during a normal year. Another feature of the situation, and one which no doubt had more influence than any other, was that America had entered the World War. The psychological effect of war upon consumers who are capable of anticipating the performance of markets is well under- stood. A wild rush of buying seized America as well as the Allied Governments. From March to May, 1917, the price increased $1 a bushel for No. 2 red winter wheat at Chicago, reaching an average for May of $2.97. No. 1 Northern spring wheat averaged $2.98 x at Minneapolis for the month of May. This was the highest price in the history of America, being 50 per cent higher than the maximum during the Civil War. The necessity for an increased world production. The scarcity of available wheat had precipitated a panic. While fear was an element in the situation, the problem of scant supply was real. Increased world production was the effective remedy, and under existing condi- tions America was the country which must do most in increasing the world supply. Wildly fluctuating prices are not attractive to the American farmer, however, especially if they reach unusual heights at a season of the year when his crop is not ready for the market. A high price in May does not insure a high price at harvest time, 1 Monthly average from weekly quotations in the Price Current Grain Reporter. GOVERNMENT CONTROL OVER PRICES. 61 later on. Moreover, the problem of world supply y statute. Congress completed the food control act (Lever Act) 4 months after the United States had declared war against Germany, and it was approved by the President on August 10, 1917. This law not only made possible the organiza- tion and program of the Food Administration, but section 14 named a minimum price of $2 per bushel for the 1918 wheat harvest under the act. Differentials were to be set up for the several standard grades of wheat, based upon No. 1 Northern spring wheat at Chicago, or its equivalent at the principal interior primary markets. The President was authorized, whenever he should find an emergency to exist requiring stimulation of the production of wheat, and whenever it seemed essential that the producers should have the benefit of the guaranty, to determine and fix what, under specified conditions, he considered a reasonable guaranteed price for wheat, in order to assure producers a reasonable profit. It is quite evident that the authors of section 14 were concerned entirely with the producer. Production of wheat was the world's prime need, and the purpose of this guaranty was to serve notice upon the fanner one year in advance of his harvest that he might expect at least $2 a bushel for his wheat crop, and as much more as the market should justify and the President provide. It is of interest again to note that Congress did not name a price for any commodity other than wheat. It gave the President au- thority (sec. 25) to fix the price of coal, and (sec. 11) to pur- chase, to store, to provide storage facilities for, and to sell for cash at reasonable prices, wheat, flour, meal, beans, and potatoes, but, with the exception of wheat, no legislative price was fixed. Analysis of the food-control act leads to the conclusion that section 14 is not " part and parcel " of the original plan. Other sections, phrased in general terms, appear to anticipate problems or to confer blanket powers upon the President. In section 14, however, a specific prob- lem is singled out and dealt with in a manner to insure interest in the production of wheat. Two other sections of the act confer powers which were widely used in connection with the wheat price : Section 2, authorizing the President to enter into voluntary agreements for carrying out the purposes of the act, and section 5, providing, in effect : That whenever the President shall find it essential to license the importa- tion, manufacture, storage, or distribution of necessaries in order to prevent unjust storage charge, commissions, profits, or practices he shall have such 62 HISTORY ^OF PRICES DURING THE WAR. authority. Furthermore he shall be empowered" to determine what are fair profits, commissions, storage charges, etc., and may require licensees to gov- ern their businesses according to his findings. A fine of $5,000, or impris- onment for two ye.-irs, or both, shall await the person who deals without a license or the licensee who violates the rules. Licenses may be revoked. Farmers, gardeners, associations of farmers and gardeners, and retailers whose gross sales do not equal $100,000 per year, shall not be required to take out licenses. Acting under the authority conferred by the food control act, the President and the Food Administration fixed maximum prices for a large number of foods, but wheat stands alone, among all the records of Government price control, as a minimum price fixed by legislative enactment. The relation of the minimum price to the market price. When the food control act became a law wheat was selling in Chicago for $2.26 a bushel (average for month). The 1917 crop was moving to the markets. Congress had established a minimum price of $2, but this would not be effective until 11 months had passed. This price, more- over, being below the prevailing market price, would not appeal es- pecially to the wheat grower unless he should be informed what mar- gin he might expect over and above the guaranteed minimum. Such information was to be forthcoming presently through the action of the President in establishing a definite price at a point above the minimum, but the immediate need was a stabilization of prices and conservation of supply during the 11 months to intervene before the legislative price should begin to operate. What limit should be set upon wheat purchases for export ? Con- sidering the demoralized transportation facilities both on land and on sea, what was to prevent huge supplies of wheat from accumulating in the seaboard and interior terminals, later glutting the market and forcing the producers' price down? If satisfaction was not rendered to the wheat grower in 1917, when the problem was pres- ent^ and real, and unprecedented, what was the use to promise him a fair price one year hence, when perhaps there might be no panicky situation ? Such considerations as these led the administration to fix a fair price for the 1917 wheat crop. Progress in this direction had been made even before the food control act became a law. On May 11, 1917, the Chicago Board of Trade had prohibited trading in May wheat futures, and had compelled the settlement of all out- standing contracts at $3.18 a bushel. This first step in fixing an arbitrary price had stopped the wheat - rise. About the same time representatives of the council of grain exchanges conferred with the Secretary of Agriculture concerning Government control of the wheat trade, and the committee of grain exchanges in aid of national defense, organized at that time, together with a committee from the GOVERNMENT CONTROL OVER PRICES. 63 western exchanges, met with Mr. Hoover on May J.6 and "at his request submitted a tentative outline of a plan of control." Under this plan the Government would control transportation of foodstuffs, fix a price for wheat and maintain it for the entire crop year without change, control the distribution of the available wheat supply, and control the storage facilities of elevators. On August 14, only four days after Mr. Hoover was named Food Administrator, the President announced the appointment of a com- mittee to determine a fair price at which wheat should be purchased by the Government. The committee reported to the President on August 30, recommend- ing that the price of No. 1 Northern spring wheat, or its equivalent at Chicago, be $2.20 a bushel. Differentials were established for other grades and terminals. One paragraph of the report follows: In reaching its conclusions, the committee lias beeii guided by the principles you have announced, that a fair price should be based upon the cost of pro- duction for the entire country, plus a reasonable profit. We have relied upon the cost estimates for the crop of 1917 furnished by the United States Depart- ment of Agriculture, checked by the results of our independent investigations 'and the evidence submitted to the committee by producers and other repre- sentatives. Upon receiving the report of the " fair price " committee, Presi- dent Wilson announced this price immediately to the country. He said it would be rigidly adhered to by the Food Administration, and continued : It is the hope and expectation of the Food Administration, and my own also, that this step will at once stabilize and keep within moderate bounds the price of wheat for all transactions throughout the present crop year, and in con- sequence the prices of flour and bread also. The food act has given large powers for the control of storage and exchange operations, and these powers will be fully exercised. An inevitable consequence will be that financial dealings can not follow their usual course. Whatever the advantages and disadvantages of the ordinary machinery of trade, it can not function well under such dis- turbed and abnormal conditions as now exist. In its place the Food Adminis- tration now fixed for its purchases a fair price, as recommended unanimously by a committee representative of all interests and all sections and believes that thereby it will eliminate speculation, make possible the conduct of every operation in the full light of day, maintain the publicly stated price for all, and through economies made possible by stabilization and control, better the position of consumers also. Mr. Hoover, at his express wish, has taken no part in the deliberations of the committee on whose recommendation I determine the Government's fair price, nor has he in any way intimated an opinion regarding that price. The Food Administration had made public its aims before the appointment of the fair-price committee: (1) To regulate trade so as to eliminate vicious speculation and to stabilize prices; (2) to guard exports; (3) to induce saving. A second statement soon followed to the effect that the Food Administration proposed to open agencies 64 HISTORY OF PRICES DURING THE WAR. for the purchase of wheat at all the principal terminals, carrying on its transactions through the regular dealers, and that it was prepared to take the whole harvest, if necessary, in order to maintain a fair price. Upon the announcement of the price of $2.20, the Food Administration affirmed its intention "to use every authority given it under the food-control act and the control of exports to effect the universality of this fair basis throughout the whole of the 1917 har- vest year without change or fluctuation." The announced policy of the Food Administration makes evident the difference in point of view of the legislative and executive branches of .the Government. Congress provided a minimum price for the 1918 wheat crop ; the Food Administration adopted a definite " fair price" for the 1917 crop. The one was not to be effective for nearly, a year, or until July 1, 1918 ; the other was effective from its announcement. The former was framed as an inducement to the producer; the latter was proposed to protect both the consumer and the producer. 1 On February 21, 1918, the President, by a proclamation, made the 1917 wheat prices applicable to the 1918 harvest, thus using his pre- rogative to raise the minimum price to any desired point above the $2 minimum set by the Congress. By executive order of June 21, 1918, the price of wheat was raised to $2.26 a bushel, the increase of 6 cents being granted to offset an increase in freight rates. In passing, mention should be made of the Government operation of railroads. Freight charges are invariably included as cost items in calculating a Government *' fair price " basis, and this would have been a more complicated question if railroads had been compet- ing with each other. The enforcement of the wheat price. In the beginning, an indirect means had to be found to enforce the wheat price. Section 14 of the food-control act did not grant authority to fix a guaranteed price above the $2 minimum, except for the purpose of increasing pro- duction, consequently this did not apply to the 1917 crop. Under sec- tion 2, however, the President could enter into voluntary agreements ; under section 5 he could license and prescribe regulations for persons engaged in the importation, manufacture, storage, mining, or distri- 1 The chairman of the milling division of the Food Administration says that the " fair " wheat price was neither a fixed price nor a maximum price ; that Congress did not give authority for definite fixing of a wheat price, and that certain millers paid more for wheat than the price named by the fair-price committee. The principal millers of the country, however, entered into agreements with the Food Administration to the effect that they would not overbid the Government " fair price." The millers kept their agree- ments, the Food Administration Grain Corporation itself bought wheat at the " fair price," and the nonagreement millers who made payments in excess of the " fair price " were not strong enough to be serious menaces to the plan of Government price control. The " fair price " became in effect a maximum price as well as a stable price. This statement is borne out by the table of wheat prices on another page of this bulletin, as well as by the price tables in the separate bulletin on " Wheat and wheat products." GOVERNMENT CONTROL OVER PRICES. 65 bution of any necessaries; under section 10 he coujd requisition supplies needed for any public use; and under section 11 he could buy and sell wheat, flour, meal, beans, and potatoes. Voluntary agreements had been made with the wheat and flour trades during the days of informal control, before the passage of the food-control act, and the continuation of this method, by virtue of section 2, seemed practical. Although the Food Administrator pos- sessed an alternative in his announced intention to purchase the entire crop if necessary to maintain the " fair price," this course would have required an enormous amount of capital, and the administration preferred to interfere as little as necessary with the ordinary market activities. Unlimited exercise of the license power was a second alternative, and as time progressed this method was resorted to, but in the beginning the Food Administration did not realize how much authority it really possessed. Little difficulty was encountered in effecting the voluntary agree- ments The grain dealers, like thousands of other business men of the country, were willing to make any sacrifice necessary to win the war. The cooperative spirit of this group is shown by the fol- lowing resolution adopted at a conference of over 100 representatives of the grain and elevator trades of the country held at the offices of the Food Administration August 15, 1917 : Realizing that the operation of Government control in wheats and rye is essential under present war influences in order to adequately protect our home supply and furnish our Allies with the aid we owe, and realizing that the estab- lishment of an efficient Government plan of operation means to all of us curtail- ment of our business and to some of us actual retirement from active business during such period, we do express our pride in the character of service tendered by the grain trade in the sacrifice by these men of ability who are placing their experience and energy at the service of their Government, and that we approve the general plan of operation as explained to us to-day as being sound, workable, and necessary, and in its general lines it appears to us as being the most effective and just plan of operation which we can conceive. The flour milling interests of the country also pledged themselves to take any steps, in regard to their industry, which might be found necessary for the winning of the war. The Food Administration announced, therefore, that it expected to accomplish its objectives by voluntary cooperation. It had or- ganized a Grain Corporation, headed by practical grain men, and through this corporation the buying was to be directed. Voluntary agreements were entered into between the flour mills on the one hand and the Food Administration and Grain Corporation on the other, to the effect that the mills should not pay more for wheat than the so-called "fair price." The Grain Corporation agreed to endeavor to supply millers with wheat on the basis of their average capacity, so far as the limitations of the 1917 harvest would permit. 125547 20 5 66 HISTORY OF PRICES DURING THE WAR. Over 3,000 millers cooperated in the voluntary agreements. Up to November 27, 1917, the signed agreements received at the Food Administration offices represented five-sixths of the milling capacity of the country. There were several inducements to the millers to enter into the agreements: (1) patriotic motives prompted them to assist the Gov- ernment; (2) the milling division of the Food Administration was administered by millers, all of whom were serving without salaries; (3) the Grain Corporation, through the license powers explained below, controlled the wheat supplies of the country; (4) the Grain Corporation guaranteed the miller against loss by decline in value of the unsold wheat and flour; (5) the relative position of mills in the industry would be maintained; (6) the permissible profit of 25 cents a barrel for the manufacture of flour was attractive if it meant 25 cents net. While it is true that some mills did not accede to the agreement, they were decidedly in the minority. Their operations, unless they were very small mills, were reasonably well controlled, moreover, by the license requirements which the Government promulgated even before it asked the millers formally to enter voluntary agreement. 1 Licensing millers and elevators. President Wilson issued a proc- lamation on August 14, 1917, requiring storers and distributors of wheat and rye as well as persons manufacturing products of wheat or rye to procure licenses before September 1. Mills with a daily capacity of less than 100 barrels were exempted from this order. Effective November 1, another proclamation extended the license provision to all mills having a daily capacity of 75 barrels or over, and before February 15, 1918, every mill in the country was re- quired to be licensed. Practically every rule which had been applied to the voluntary agreement mills was applied to the license mills with the exception that the latter were not forbidden to pay more than the "fair price" for wheat. This matter was taken care of in another way, nevertheless, for in regard to the limitation of the miller's profit to 25 cents per barrel on flour and 50 cents per ton on feed, it was specified that in calculating his cost items no miller should include more for the cost of wheat than the customary mar- ket price. Under the license clause reasonable profits could be defined and unreasonable profits prohibited, and the license of any person could be revoked as a penalty for engaging in an unfair practice. This placed almost absolute power over certain industries in the hands of the Government, and after July, 1918, the Food Administration came to rely wholly upon this section of the law for its authority. 1 A form letter explaining the voluntary agreement plan and asking for cooperation was sent out on Aug. 29, 1917, to such millers as had not already been reached through the millers' committee. GOVERNMENT CONTROL OVER PRICES. 67 With the passing of the voluntary agreements, there was no defi- nite price specified at which the elevators and mills should purchase wheat. In the absence of any prohibition to the contrary, it would seem that purchasers might have paid any price they desired. But the Food Administration had indirect means, as well as definite in- tentions, of maintaining the "fair price." It only stated that it would undertake to guard this price by buying wheat in the princi- pal primary markets. Of course, the Government held a dominant position as the chief buyer in the market, and in case of necessity it could have taken the entire crop. Its indirect method, however, was simpler. This is explained fully under Flour Control, but the plan, in brief, was to fix a maximum price for flour at each mill, based upon the Government "fair price" for wheat. Thus if a miller paid more than the u fair price" for wheat, he would sacrifice his profit on flour, and if he tried to buy for less the Government would bid against him. The 1919 guaranteed price. President Wilson, by proclamation on September 22, 1918, extended the guaranteed price of $2.26 for No. 1 Northern spring wheat at Chicago to the 1919 crop, if offered for sale before June 1, 1920. The termination of the war, even if offi- cially announced by the President, was not to terminate any obliga- tion accruing or accrued under this proclamation. This position was taken by the Food Administration, and was ratified by Congress and the President in providing and approving an appropriation of $1,000,000,000 to make good the guaranty. This means that if the price of wheat goes down before June 1, 1920, the Government must pay to the wheat grower, out of the billion-dollar fund the differ- ence between the market price and the guaranteed price. Produoers generally satisfied. As harvest approached and the farmer observed a declining market on the strength of anticipated price regulation by the Government, he became fearful lest his in- terest would be overlooked. Why could wheat not sell as well for $3 in September as in May ? " Many farmers were discontented because they could not sell their entire crop at the high prices made by the uncontrolled influences which had dominated when the pre- vious year's crop had been exhausted and the market was without any balance wheel. The crop was slow to move." 1 Farmers of Min- nesota and the Dakotas at a conference August 26, 1917, advocated a Government fixed minimum price of $3 a bushel. Agitation did not continue long, however, after the " fair price " was announced. The decline of flour prices to a level commensurate with wheat prices helped to put the farmer in a pacific mood. He also argued that since the wheat price was to remain stable for a year he could rush ir The Wheat and Flour Trade under Food Administration Control, by Wilfred Eldred. Quarterly Journal of Economics, November, 1918. 68 HISTORY OF PRICES DURING THE WAR. his oats to market and take care of his corn crop before selling his wheat. Then he found that even at $2.20 he could realize more profit on wheat than had ever been the case before. His final estimate of the Government price, therefore, was conciliatory. Final determina- tion of the farmer's attitude may be drawn from his acts in sowing more wheat. The acreage sown in the fall of 1916 was 40.534.000; in 1917 it was 42,301,000; and the preliminary estimate for 1918 was 4ff.-261.000. 1 stability of the wheat price a reality. Reference to the wheat quotations in any terminal market will show an almost amazing stability of prices from August 30, 1917, when the " fair price " was announced, until after the armistice was signed in November, 1918. Xo. 2 Eed Winter wheat in Chicago, for instance, varies only three- fourths of a cent from September. 1917, to the end of June, 1918. 2 It was June 21, 1918, that the President advanced the price G cents a bushel, and the July to November market price is seen to be from 6 cents to 7 T % cents above the June price. The Food Administration, therefore, did for wheat what it started out to do, and. accomplished that result without resorting to the alternative of buying the entire crop. Such effective control over wheat made possible a large measure of control over flour, even though no express authority was given by .-tatute to fix flour prices. How this was accomplished will now be explained. Close relation of -flour and wh-eat. The demand for wheat is almost entirely for flour manufacture. It is a custom with the flour market to fluctuate from day to day in conformity with wheat fluc- tuations. * Even though a miller may have purchased his entire year's supply of wheat in September, the fluctuations of wheat during the following months will affect the price of this miller's flour. Flour prices are ordinarily based on the replacement value of wheat. This makes clear the flour problem in connection with the wheat problem in the spring of 1917. European demand for wheat was likewise a demand for flour. The short wheat crop was disastrous in that it meant a scarcity of flour, and the wild fluctua- tions in wheat prices were practically duplicated in flour quotations. When wheat was at its highest point in May of that year, having advanced $1 a bushel in two months, flour was at the maximum of $14.88 a barrel (monthly average), having risen from $9.63 a barrel in March. The flour shortage in the spring and summer of 1917 was partly due to fear on the part of the millers. They did not dare to stock up with wheat at the high prices then prevailing because if the Gov- 1 Bureau of Crop Estimates, Department of Agriculture. 2 See Wheat and Wheat Products, by Paul E. Peltason (W. I. B. Price Bulletin No. 9). GOVERNMENT CONTROL OVER PRICES. 69 eminent should fix the price at a lower level they would lose heavily on their sales. It was aggravated, also, by the heavy buying of consumers early in the spring when prices were high and showing prospects of going higher. Control exercised over -flour. The flour and wheat problems were attacked simultaneously by the Food Administration, but by differ- ent methods. Congress had not named a price for flour, nor had it given specific power to the President to do so. From the beginning the Food Administration took the ground that it had no authority to fix basic flour prices. With the price of wheat under control, however, and with authority to enter into voluntary agreements ; to compel millers, distributors, and dealers to procure licenses, the conditions of which were drafted by the issuing party to -the con- tract; to control business profits even to the extent of specifying what were reasonable profits; and to buy and sell flour for cash at reasonable prices, there could have been little question as to the con- trol of the flour industry by the Food Administration. At first the Food Administration adopted the voluntary agree- ment plan, but in connection with this it used its license power and its authority to determine fair profits. The right to buy and sell flour at reasonable prices was not used except in the cases of exports and of use by the Government or governmental agencies. Voluntary agreements made with the millers in regard to the wheat trade applied also to the milling industry. This was true also of the license practices which have been explained in the wheat discussion above. One additional provision which applied only to flour was that profits must be limited to 25 cents a barrel. Considerable difficulty was experienced in determining costs. To have accomplished this task completely would have required an army of auditors at w^ork constantly on the monthly reports which millers were compelled to submit. But since the cost-plus method was to be followed in determining the selling price some uniform method of figuring costs must be adopted, and before November, 1917, the fol- lowing rule had been presented to the mills : In calculating profits the cost of flour, bulk, at the mill shall be determined as the cost of clean wheat used multiplied by the actual amount of wheat used (which in no event shall be in excess of 285 pounds of cleaned, 60 pounds per bushel, wheat to the barrel) less the amount secured from the sale of feed (ex- eluding the profit derived from the sale of feed not to exceed 50 cents per ton as above) plus the actual proven cost of production (which shall not include interest to investment and marketing.) In the fall of 1917, after the price of wheat under Government con- trol became stabilized at a point much lower than had prevailed in the spring and summer markets the rush of milling was so great that many mills did not or could not reduce the price of flour fast enough 70 HISTORY OF PRICES DURING THE WAR. to keep profits within the margin of 25 cents a barrel. At the end of the crop year (June 30, 1918), and in some cases earlier than that date, those mills which had made profits above the maximum of 25 cents a barrel were compelled to return the surplus to the Government. 1 Other difficulties met in the operation of the cost-plus system were the padding of cost reports and the setting up of jobbing depart- ments in some mills in order to get both a miller's profit and a job- ber's profit on their product. Although this latter practice was per- mitted under the license rules, it proved to be most unsatisfactory. By virtue of a presidential proclamation of October 8, 1917, all wholesalers and retailers doing a business of over $100,000 a year were retired to take out licenses prior to November 1. The purposes of the ruling were (1) to limit the prices charged by every licensee to a reasonable margin over expenses and forbid the acquisition of speculative profits from a rising market; (2) to keep all food com- modities moving in as direct a line and with as little delay as prac- ticable to the consumer; and (3) to limit, as far as practicable, con- tracts for future delivery. Hoarding and speculation were not per- mitted under these rules. Licensees were limited to a 30 days' supply and notice was served that a violation of the rules constituted cause for revoking the license as well as subjecting the offender to criminal penalties. Control of flour in 1918. The plan of controlling flour millers' margins was changed at the beginning of the 1918 crop year. Volun- tary agreements with all flour mills were canceled as of June 29, 1918, and the Milling Division of the Food Administration went out of existence on June 30. Flour was to be controlled through a maxi- mum "fair price" for the bulk product named f. o. b. mill at every producing point in the United States. This required the sending out of 8,500 individual price schedules, one to every licensed mill (which meant every mill) in the country. It was a physical impossi- bility to figure out this large number of schedules in time to get them to the mills on July 1, consequently there was an interim from July 1 until July 24 for which a subsitute plan of price control had to be announced and enforced. For this period of slightly more than three weeks a bulk flour basic price was named at 56 milling points of the United States, and each mill, regardless of location, was per- mitted to put a sale price on bulk flour equal to the price at the nearest one of these 56 basic points, less freight to that city. With the sending out of the maximum "fair price" schedules, effective July 24, 1918, a new era came in flour control. No longer *At the present time (May 15, 1919) the Food Administration still has auditors in the field to check up expense items of mills. Although a few mills have retained their excess profits for two years, they will now be compelled to part with them. GOVERNMENT CONTROL OVER PRICES. 71 was there an opportunity for padded cost reports. Not only had each mill been given a schedule showing the price of bulk flour at its door, but every State food administrator and zone agent had a copy of the schedule to assist him in enforcing this fair price. Maximum prices were in effect, with the Government naming each mill's maxi- mum charge. The bulk flour price for each mill was arrived at by taking the "fair price" of wheat at the nearest terminal, plus freight to the mill, plus $1.10, called a conversion charge (to cover cost of milling and profit), minus the feed return. For the guidance of the miller, there was issued a table of "Maxi- mum permissible margins over bases on various classes of sale." When selling flour to one of the classes of customers on this table (and all classes were included) he might add to the schedule price the margin permitted for that class, plus items to cover freight and cost of sacks. In other words, he would make out a table like the follow- ing, showing: Method of calculating maximum, delivered, fair price flour per barrel. (a) Maximum fair price bulk mill as per schedule No. 000 $10.50 (&) Maximum differential, if any, on sale of class C .25 (c) Freight charge (including freight tax) .40 (d) Cost of sacks (98 pounds cotton for flour) __ . 60 Totall 11. 75 Also he must place on the contract a copy of the reasonable price schedule furnished his mill by the Food Administration. On the in- voice form which must be executed in every sale of over 15 barrels of flour there must likewise be a copy of the reasonable price schedule and the flour charge items appearing under "Method of calculating invoice price." These precautions and requirements made the flour-control plan a simple, self -policing system. If a dealer anywhere felt that a miller had charged too much for flour he could submit the records of his purchase to the nearest Federal food administrator or zone agent and learn immediately whether the " fair-price " rules had been violated. After March 1, 1918, mills were permitted to make but one grade of flour (called 100 per cent straight). Two months previous to this date the quantity of wheat which they were allowed to use for a barrel of flour was reduced from 285 pounds to 264 pounds. All regulations, whether for millers, bakers, or dealers, were based upon the license power, which sanctioned the revocation of license in any case of disobedience. Conservation measures. Conservation measures, of course, went hand in hand with price control, for it was by inducing saving that 72 HISTORY OF PRICES DURING THE WAR. the Food Administration helped in some measure to offset the short supply of wheat and flour. At the outset reliance was placed upon voluntary conservation, stimulated by a wide-spread propaganda carried on by means of newspapers and billboards. The results were not satisfactory, however, and in January, 1918, President Wilson appealed to the people to reduce still further their consump- tion of food. About the same time the Food Administration issued rules, effective February 24, 1918, requiring bakers to mix substi- tutes with wheat flour in the ratio of 1 to 4, and after January 28 buyers at retail were required to purchase 1 pound of a substitute flour with every pound of wheat flour. Then by requisition 30 per cent, and later 45 per cent, of the output of the larger mills was taken between January and June, 1918, in order to get flour for export to the Allies. 1 It was only after the wheat flour substitute rule was applied that national saving was effective, the total con- sumption of wheat flour in the United States during the eight months from July 1, 1917, to February 28, 1918, being considerably in excess of the corresponding figures during the three years imme- diately preceding the w r ar. 2 Results of flour control. Although the Food Administration dis- claimed authority before July, 1918, to fix flour prices, market quota- tions show that the flour price was kept relatively lower than the wheat price. Only once during the period of Government control did the flour curve run up close to the wheat curve, and that w T as during July, 1918, after the Food Administration had abandoned the 1917 plan of control and before it had launched the 1918 plan. Considering that the wheat price was practically stationary through- out the price-control period, and that before June. 1917, the price of flour had frequently been above that of wheat, this accomplish- ment in price control bears testimony to the effectiveness of the Food Administration effort. Further evidence of the success of flour control is gained from an examination of the flour market after the food regulations were discontinued. On December 19, 1918, the Food Administration an- nounced that the public was no longer required to purchase wheat flour substitutes, and soon thereafter all flour regulations were abandoned. The effect is seen in market quotations. The January price rose 6J cents a barrel, the February price 34 cents a barrel, and in March the price was $1 a barrel higher than it had been at the signing of the armistice or for four months preceding that event. Exercising bread control. Bread is not as sensitive to ordinary market influences as are wheat and flour. When wheat and flour 1 The Wheat and Flour Trade under Food Administration Control, by Wilfred Eldred. 2 Estimates of United States Food Administration, Statistical Division, Information Service, Bulletin No. 1045. GOVERNMENT CONTROL OVER PRICES. 73 were at the top of a runaway market in May, 1917, bread, which is the premier among all wheat and flour product!, was climbing only one-third as fast as wheat and flour. It was not alarmingly scarce from day to day, and its advance was because of high cost of production rather than fear of a famine. In order to prevent profiteering in bread, it was announced by presidential proclamation on November 7, 1917, that all bakers using as much as 10 barrels of flour a month must take out licenses before December 10. This regulation included hotels, restaurants, other public eating places, and clubs serving bread or other bakery products of their own baking. Before February 4, 1918, all unlicensed bakers using as much as three barrels of flour a month were required to procure licenses. One of the first tasks attempted by the Baking Division of the Food Administration was to standardize the baker's bread of the country. By fixing the weight of the loaf at 1 pound minimum, with 1J, 2, and 1 pound loaves, and with a stabilized price for flour, it was anticipated that the variables in bread would be largely elimi- nated and competition would be centralized upon price. Loaves of other sizes were authorized later. The Food Administration announced that it had no power to fix bread prices, but it could limit profits, determine fair profits, and issue regulations for its licensees. It curtailed the use of ingredients other than flour, yeast, and salt, reaffirmed an earlier request by the commercial economy committee of the Council of National Defense that the bakers refuse to receive returned 'bread and urged bakeries and stores to use as far as possible the " cash-and-carry " system. No change was made in the policy not to fix bread prices, regula- tion being effected through the stabilization of flour prices and the control of bakers' profits. Rebates or discounts to favored customers were classed as unfair practices. The Food Administration, acting under the license clause, could have in effect fixed maximum prices for bread, but this was not done. The power to revoke bakers' licenses was found sufficient to enforce the control desired. Occasionally other weapons were used, but the suspension of the license for a few days generally proved ample. Results of "bread control. Licensing the bakers caused the bread price to" decline 15 per cent in December, 1917. The price remained at this level (6.4 cents a pound loaf) for four months, after which it came up to 7.78 cents a loaf, or to a point 3 per cent above the price for the six months immediately preceding Government regulation of the baking industry. From March, 1918, until the close of hos- tilities in Europe the price remained at practically the same level. In other words, with the exception of one prominent decline when the Government first began to apply supervision, the price of bread 74 HISTORY OF PRICES DURING THE WAR. averaged somewhat higher after the bakers were licensed than it had been when wheat and flour were at their highest points in May, 1917. With the relaxation of Food Administration restrictions, about January 1, 1919, the bread price advanced to 8.5 cents, remaining at this figure during the first four months of 1919. Thus, as soon as the Food Administration influence was withdrawn, the price went up 11 per cent. SwrvmciA^y. Government control of prices as a war emergency measure took various forms in its relation to wheat, flour, and bread. The wheat price originally was fixed by statute as a minimum price. A committee of the executive department then determined what would be a " fair price " (20 cents above the minimum), and this was announced and enforced as both a minimum and maximum price. It was practically an invariable price. In the beginning the price was maintained by means of voluntary agreements between the Food Ad- ministration on the one hand and the elevators and mills on the other. Ultimately the wheat price of $2.26 a bushel at Chicago was treated merely as a " fair price," neither minimum nor maximum. The " fair price " was made practically absolute by fixing in July, 1918, a maximum fair price for flour at each mill, and basing the prices named in this maximum fair price schedule on the governmental " fair price " for wheat at the various interior primary markets, with allowances for freight to the milling point. During the first year of Food Administration history the price of flour was not fixed, but mills agreed to buy wheat only at the " fair price," and on the 1917 crop manufacturers' profits were limited to 25 cents a barrel on flour. Beginning July 24, 1918, a maximum fair price was enforced for flour. It was by virtue of the Government's power to issue and regu- late trade licenses that this control was exercised. Prices were never fixed for bread. Control was exercised under the license power by limiting profits, preventing unfair practices, and standardizing the weight of the loaf. The three charts presented here represent wholesale wheat, flour, and bread prices in Chicago, Minneapolis, and New York, respec- tively, from January 1, 1913, to December 31, 1918. These curves are made from relative prices on a comparable scale. It will be observed that the flour curve drops below the wheat curve soon after the pas- sage of the food control act, and that it remains below throughout the period of Government control. It is not so regular as the wheat line, having a downward swing in the early months of 1918 and an abrupt ascent in July while a new plan of control was being held in abeyance. The two curves are similar, however, and far below the high points at the beginning of the war. It is interesting to note that after the middle of 1916, flour, which is not a finished product, went up much faster and further than GOVERNMENT CONTROL OVER PRICES. 75 RELATIVE. PRICtSOF BRCAD-LOAT BAKERY TO RETAIL COOCER BYMONTnS JANUARY. 1911 ""DECEMBER.) 016 AVtRACf QUOTED PraCC3JU.Y.1915-JUNE,ia4-100 g 1 3 S i s I . =VTC 6|| #Ss ^ -o ~ 1 >a (i 3 j i 00 C -^- , X) t-o S &7 a w~ ^ ^ 1-5 6C rt o . g o "1 ^ i M SdV ^ 1 : X) : \ ; " " ^. S~ 1 ^ ' o rr S x> ad* -< no( pjv 8 2 . S Si fe -S p. ly a> 01 ^ O .0 r-( s a . .> g > 5 2 f s i . ., ? 8 s S ^ 5 Q 1-3 76 HISTORY OF PRICES DURING THE WAR. bread. Furthermore, the advent of the Government as a price fixer for flour brought the curve down very decidedly, whereas bread, which was not subjected to price fixing, continued at a higher level than any point it had reached before, with the exception of four months immediately following the licensing of the bakers. The accompanying tables show price increases immediately fol- lowing the abandonment of food control. The wheat price, even though wheat was still under a minimum price guarantee, acted in like manner. It was stated above that it was by means of the maxi- mum flour price and the method of calculating millers' costs that the price of wheat was kept from exceeding the fair-price level. Following the removal of flour regulations, wheat displayed some of the ordinary market traits during a season of short supply. WHEAT, No. 2 RED WINTER, CASH, AT CHICAGO. [$0.9321 per bushel = 100.] ACTUAL PRICE. Date. 1913 1914 1915 1916 1917 1918 1919 Year SO. 9888 $1. 0024 $1.3119 $1.3731 $2. 2779 $2 2094 Quarters: First 1.0774 .9596 1.5104 1 2270 1. 9107 2 1700 Second 1.0448 .9356 1.4627 1.1373 2. 7136 2.1700 Third .... .8919 .9614 1.1111 1 3882 2. 2608 2. 2392 Fourth 9413 1 1532 1 1632 1 7400 2 1700 2 2582 Months: January 1. 1144 .9690 1. 3910 1.28% 1.9024 2.1700 $2. 3788 February. 1.0793 .9602 1.6091 1. 2585 1.7969 2.1700 2 3450 March * 1 0385 9495 1 5311 1 1328 1 9781 2 1700 2 35 n 5 April. 1.0586 .9386 1.5916 1.2153 2.4672 2.1700 fiav I..::::..,..:.:.:.:.:.:. 1.0557 .9763 1.5700 1.1554 2. 9705 2. 1700 June July 1.0200 8836 .8918 8210 1.2265 1.1611 1.0413 1 1597 2.6388 2.3310 2.1700 2.2470 August . .8705 .9563 1.0963 1.4706 2. 2503 2. 2325 September .9216 1 1069 1 0760 1 5344 2. 1775 2. 2363 October November .9216 .9447 1. 108*) 1.1486 1. 1325 1. 12.50 1.6809 1.8116 2.1700 2.1700 2.2345 2. 2375 December 9575 1 2023 1 2322 1.7275 2 1700 2.3088 RELATIVE PRICE. Ye?r 106 108 141 147 244 237 Quarters: First 116 103 162 132 205 233 Second . . 112 100 157 122 291 233 Third 96 103 119 149 243 240 Fourth 101 124 125 187 233 242 Months: January. . 120 104 149 138 204 283 255 February 116 103 173 135 193 233 252 March 111 102 164 122 212 233 253 April 114 101 171 130 265 233 May 113 105 168 124 319 233 June i09 96 132 112 283 233 lulv 95 88 125 124 250 241 August 93 103 118 158 242 240 September 99 119 115 165 234 240 October 99 119 121 180 233 240 November 101 123 121 194 233 240 December 103 129 132 185 233 248 GOVERNMENT CONTROL OVER PRICES. 77 FLOUR, WHEAT, STANDARD PATENTS, AT MINNEAPOLIS. [$4.5699 per barrel of 196 pounds- 100.] ACTUAL PRIC". Date. 1913 1914 1915 191G 1917 1918 ]919 Year $4. 5837 $5. 0962 $6. 6630 $7. 2639 $11. 3909 $10. 1407 Quarters: First 4.4584 4. 5708 7. 3492 6.3217 9.2981 10. 1538 Second 4.7096 4.5508 7. 3942 6. 0571 13. 5731 9. 7942 Third . .. 4.6833 5.3488 6. 2242 7. 3767 12. 3904 10. 3992 Fourth 4. 4746 5.8625 5. 7479 9.2621 10. 3404 10. 2100 Months: January - - 4. 4813 .5000 6.8563 6.6438 9.2150 10. 0850 $10. 2750 FebruaVy 4.5188 .5875 7.7063 6.4400 9.0688 10.3000 10.5500 March 4.3750 .6250 7. 4850 5.8813 9.6313 10. 0933 11. 2125 April 4.6100 .5500 7.7063 6.2188 11.6188 9. 9850 May . 4.6563 .6125 7.8813 6.1900 14.8800 9. 5250 4 8625 4900 6 5950 5.7625 13. 8938 9 8250 July 4.7700 .5938 7. 0313 6.1000 12.7500 10. 7120 4 7000 5 5125 6 3100 7.6050 13.0688 10.2100 September 4.5800 5.9400 5. 3313 8. 4250 11. 2625 10. 2100 October 4.4563 5. 7563 5.5188 9.2800 10.6000 10.2100 4 4875 5 8813 5 5000 9. 8250 10. 2250 10. 2100 December 4.4800 5.9500 6. 2250 8.6813 10. 1313 10. 2100 RELATIVE PRICE. Year 100 112 146 159 249 222 Quarters: First 98 100 161 138 203 222 Second 103 100 162 133 297 214 Third 102 117 136 161 271 228 Fourth 98 128 126 203 226 223 Months: January 98 98 150 145 202 221 225 February 99 100 169 141 198 225 231 March 96 101 164 129 211 221 245 April 101 100 169 136 254 219 May 102 101 172 135 326 208 June 106 98 144 126 304 215 July 104 101 154 133 279 234 August 103 121 138 166 286 223 100 130 117 184 246 223 October 98 126 121 203 232 223 November 98 129 120 215 224 223 98 130 136 190 222 223 BREAD, LOAF, AT NEW YORK. [$0.0412 per 16 ounces of unbaked dough=lOO.] ACTUAL PRICE. Date. 1913 1914 1915 1916 1917 1918 1919 Year . 10. 0424 $0.0442 $0. 0475 $0. 0477 $0. 0693 $0. 0738 Quarters: First 0424 0429 0492 .0449 . 0593 .0640 Second .0424 .0434 .0474 .0452 .0710 .0778 Third 0424 .0455 .0478 .0454 .0753 .0773 Fourth 0424 0449 0457 .0553 .0715 .0762 Months: January .0424 .0434 .0474 .0449 .0571 .0640 $3.0850 February. .0424 .0427 .0420 .0440 .0582 .0640 .0850 March .0424 .0427 .0582 .0449 .0627 .0640 .0850 April... .0424 .0427 0465 .0449 .0640 .0778 .0850 Mav 0424 0427 0474 0449 .0738 .0778 June .0424 .0449 .0483 .0457 .0753 .0778 July 0424 0441 0492 .0457 .0753 .0778 0424 0483 0492 0449 0753 .0778 September 0424 .0441 .0449 .0457 .0753 .0762 October 0424 0449 0449 .0533 .0753 .0762 0424 0449 0449 0545 .0753 .0762 December .0424 .0449 .0474 .0582 .0640 .0762 78 HISTORY OF PRICES DURING THE WAR. BREAD, LOAF, AT NEW YORK Continued. RELATIVE PRICE. Date. 1913 1914 1915 1916 1917 1918 1919 Year.... 103 106 115 115 168 179 Quarters: First 103 104 119 109 144 155 Second 103 105 115 109 172 189 Third 103 107 115 110 183 187 Fourth 103 109 111 134 173 185 Months: . January . 103 105 115 109 139 155 206 February.. . 103 104 102 109 141 155 206 March. 103 104 141 109 152 155 206 April 103 104 113 109 155 189 206 May 103 104 115 109 179 189 June. . 103 109 117 111 183 189 July 103 107 119 111 183 189 August 103 117 119 109 183 189 September 103 107 109 111 183 185 October 103 109 109 129 183 185 November 103 109 109 132 183 185 December 103 109 115 141 155 185 SUGAB. It might be supposed at first thought that the estimated world sugar supply of 18,659,792 tons for 1917, as against an average prewar production of 18,712,997 tons, was adequate enough not seriously to trouble the Food Administration. And, by comparison with the complexities of the wheat and meat control, perhaps, sugar control was less of a problem. But with these exceptions it was the most important of the food controls and affords an interesting and dis- tinctive experience with price regulation. It was the cutting off of sugar from Germany, and the shortage of ships to distribute the available supply, which, more than a falling off in actual world production, made sugar control a problem. The shutting off of German supplies from Great Britain and France, together with submarine ravages, had made these two coun- tries dependent upon the Western Hemisphere for their sugar. By 1916 the largest part of the sugar consumed by the allied countries came from the United States and Cuba. The United Kingdom in that year, for example, took some 500,000 tons of sugar 1 from us and an equal amount from Cuba, whereas her normal receipts from both these sources combined had in the past averaged approximately 300,000 tons only. Moreover, the north European neutrals, and other countries in Asia, Africa, and South America, which had also been shut off from German and Austrian supplies, had entered western markets. Thus by 1916 our sugar exports had amounted to 1,630,- 000,000 pounds, which was approximately 3,000 per cent more than was shipped from the United States in the year preceding the out- break of the world war. And yet, at the same time, due to lack of shipping space, large stocks were accumulating in Java. This drain upon Cuban and American stocks was, of course, re- flected in the market price of sugar, and by August, 1917, raw sugar i Exports of sugar to the United Kingdom for the fiscal year ending June, 1916, amounted to 932,458,- 299 pounds, according to the figures of the United States Department of Commerce. GOVERNMENT CONTROL OVER PRICES. 79 prices had reached a point 100 per cent higher than ^lie average for the year preceding the outbreak of the world war. 1 It was thus evident, immediately upon the inauguration of the Food Administration, that measures must be taken to check the rise of sugar prices. Accordingly one of the first official acts of Mr. Hoover was the appointment on August 15 of Mr. George M. Rolph to head a Sugar Division. Three weeks later a presidential procla- mation required all importers, manufacturers, and refiners of sugar, sugar sirups, and molasses to secure licenses from the Food Admin- istration, and on October 1 virtually the entire sugar industry was brought under license control. Before the inauguration of the license system, however, steps had been taken toward fixing maximum pro- ducer's prices for sugar through voluntary agreement. The first of such agreements was arranged w r ith the beet-sugar interests. The beet-sugar control. Mr. Hoover announced, as early as Au- gust 25, 1917, that the producers of beet sugar had agreed to sell their new crop at $7.25 per hundredweight, cane basis, at refining points (Boston, New York, Philadelphia, Savannah, New Orleans, i The effect of the shipping shortage, and the concentration of sugar demands upon the American and Cuban markets, upon sugar prices is presented in the appended table. The temporary rise in the summe of 1914 is to be explained by the large purchases of Great Britain following the declaration of hostilities, and by a panic among American consumers who rushed into the market and bought up large supplies because of a fear of shortage and higher prices. These prices were taken from Willett & Gray's Weekly Statistical Sugar Trade Journal. United States price of raw and refined sugar, 1913-1918 KAW CAKE SUGAR. [96 centrifugal; duties paid at New York.] Month. 1913 1914 1915 1916 1917 1918 January $0 0353 $0 0332 $0 0305 $0 0465 $0 0524 $0 0601 FebruaVv 0349 0344 0468 0491 0517 0601 March.... . 0355 .0298 .0482 0564 0548 0601 April . 0339 0298 0480 0616 0621 0601 Mav 0334 0326 0484 0643 0608 0601 June 0334 0334 0491 0632 0604 0602 July .0355 .0328 0485 0630 0662 0606 August 0374 0570 0475 0558 0727 0606 Sppt.pTn hor 0372 0580 0427 0555 0696 0697 October . . 0350 .0446 0411 0626 060 0728 November .... 0362 0391 0475 0621 0690 0728 December 0335 0396 0492 " 0531 0634 0728 BEFTNED CANE SUGAR. [Fine granulated in bags or barrels at New York.] January $0 0450 fO 0392 $0 0488 $0 0573 $0 0662 $0 0744 February 0418 0392 0554 05Q7 0686 0730 March.... 0419 0382 0571 0657 0706 0730 April 0410 0372 0578 0706 0815 0730 May 0410 0397 0588 0746 0794 0730 June 0414 0417 0588 0736 0754 0731 July... . 0447 0420 0582 0750 0745 0735 August 0461 0649 0549 0700 0818 0735 September 0453 0680 0506 0637 0823 0845 October 0419 0593 0497 0708 0818 0882 November 0421 0493 0568 0735 0818 0882 December. 0408 .0408 0483 05 9 069 0804 0882 80 HISTORY OF PRICES DURING THE WAR. and San Francisco). 1 This price was later raised to $7.35 and $7.45 on December 12 and January 8, respectively, in order that it might conform more nearly to the price of cane sugar, which was estab- lished by agreement with the Cuban producers, whose product is the basis for the price of the entire domestic sugar crop, including that from Hawaii and Porto Rico. Shortly after the fixing of the beet-sugar prices by agreement it became evident that with the elimination of normal competitive methods of bidding for sugar supplies some arbitrary method of distribution would be necessary. Accordingly there was appointed a sugar distributing committee to allot the available sugar to dealers in various localities. Representatives of this committee were scat- tered throughout the country and prices at different distributing points were established by adding freight from the nearest seaboard refinery to the base price at that seaboard point. 2 It was hoped thus to effect an equitable distribution of sugar and a saving in freight costs. Cross shipments were eliminated wherever possible and, con- trary to the usual custom of shipping sugar as much as half way across the continent, individual localties were supplied by the nearest refineries. Control over the cane-sugar supply. The regulation of the beet- sugar supply, however, could not of itself solve the sugar situation, for beet sugar represents a small part only of our total consumption. Cuba ordinarily furnishes the greater part of our sugar supplies, and it soon became necessary, therefore, to devise methods of controlling the price of Cuban sugar as well. That necessity was especially acute, for the Cuban supplies of raw sugar seemed too small even to meet our own demands. Moreover, the foreign Governments were bidding against each other and against the American refiners for these scanty supplies. Under such competition it was apparent sugar prices could not be kept stable. The entire sugar-refining industry agreed to keep out of the Cuban and other raw-sugar markets and to obtain their supplies through a purchasing body created by the Food Administration. This body, appointed on September 21, was the International Sugar Committee, formed by agreement with England, France, and Italy to arrange for the purchase and distribution of the available sugar for the allied Governments and for all allotments to neutrals. There was also appointed to cooperate with this interna- tional committee a committee of American refiners, whose business it was to allocate among our refiners all -sugar set aside for the United States. This committee later became very active and had as its almost daily task the alloting to refiners of all sugar receipts 1 It should be noted that this one is the first price-fixing agreement entered into directly by the United States Food Administration. The price of wheat had been fixed on Aug. 10 by congressional legislation. 2 To the price of beet sugar at the seaboard refining points, i. e., $7.25, the transporta- tion cost to interior points was added. GOVERNMENT CONTROL OVER PRICES. 81 from Cuba, Porto Rico, and other sources. In such a manner was competition in the world's sugar market eliminated and conditions made favorable for negotiating with the various producers for raw- sugar supplies. The Food Administration, now in a position through the sugar committee to bargain with, the cane producers for favorable prices, entered into an agreement with the Louisiana planters which resulted in the fixing of a price on October 23, 1917, for Louisiana raw sugar of $6.35 per hundredweight at Xew Orleans. There having been fixed a price for beet sugar and the entire domestic production of cane sugar, it remained still to grapple with a more definite price control over Cuban cane sugar. The first move in this direction was the purchase by the International Sugar Committee of the small remain- der of the old 1916-17 crop of Cuban sugar at $6.75 delivered at New York duty paid and an attempt to secure the new crop, w r hich was due the first of 1918. Accordingly, conferences were held with the Cuban producers in the hope of fixing a price for the Cuban crop. After a considerable delay, and the entrance of the Cuban Government and our State Department into the negotiations, an agreement was finally made on December 24 whereby three-fourths of, or (upon option) the entire new Cuban crop was to be sold to the International Sugar Com- mittee at $4.60 f. o. b. Cuban ports. That price, after adding freights, duty, and other costs, was equivalent to about $6 1 f. o. b. New York. 2 The Food Administration was thus instrumental in bringing all of the immediately available supplies of raw sugar under the control of the Allies. Further precautions were taken by placing embargoes, through the War Trade Board, upon the export, of sugar from the United States, and by asking the Cuban Government to prohibit all shipments of sugar to any country other than the United States or her Allies. The distribution of refined sugar. Shortly after a price for the raw sugar supply had been decided upon, it was thought. advisable to limit the costs of fabrication and distribution, in order that the ulti- mate cost to the consumer might be kept at a nominal level. For this purpose, the refiners were asked in September, 1917, to fix a margin between the cost of raw sugar and the selling price of refined sugar for which they were willing to operate. This refining margin, based on a prewar average, was placed at $1.30 per 100 pounds. It was later, after investigation of refining costs by Mr. Oscar Straus, 1 On June 24, 1918, the increased insurance rates caused by the presence of German submarines off the American coast caused a rise in the New York price to $6.05. 2 It is of interest to note that before making this final agreement with the Cuban producers, the United States Food Administration rendered aid both to the Cuban Gov- ernment and the Cuban sugar industry, in order that the sugar crop might be more easily marketed. At the suggestion of the Food Administration, for example, the Cuban Gov- ernment loaned to the Cuban Railway $5,000,000 in order that the road might be put into better condition for handling the crop. The Food Administration also played an important part in getting some 50 American business firms, who had orders for supplies which were needed in harvesting the Cuban crops, to rush such supplies through and to fill orders for articles which the Cuban authorities were having difficulty to secure. 125547' 20 6 82 HISTORY OF PRICES DURING THE WAR. increased to $1.45 per 100, effective August 1, 1918. This differential included, incidentally, a brokerage charge ranging from 3 to 5 cents per 100 pounds, which might be paid to agents for selling sugar to wholesalers and jobbers. 1 At the same time, the refiners agreed to confine their sales to certain limited territories. With the price of sugar so minutely regulated in both its raw and refined state, it appears that the interests of the American consumer had been fairly well provided for. The licensing system limited the profits of the wholesaler and jobber to the prewar normal, which averaged about 25 cents per 100 pounds, 2 and the only remaining 'avenue of profiteering was the retail distributor. Methods of deal- ing with the latter have been discussed in previous pages. 3 The Sugar Equalization Board. No sooner had all arrangements been completed for the purchase and disposal of the 1917-18 sugar crops by the above committee and the Food Administration than it became necessary to provide for the crop of the year to follow. This was especially imperative, since the requirements of the Allies demanded the greatest possible stimulation both of cane and beet sugar production. If the estimate made in the late spring of 1918 that the United States would produce 1,600,000 tons of sugar was accurate, it meant that the balance of our 4,000,000-ton requirement must be imported. Cuba, of course, was the logical source to draw upon for this balance. An investigation into the costs of producing sugar showed that the wholesale price of sugar could not be brought below 9 cents if the Louisiana cane producers and the western beet raisers were allowed a fair return. 4 Accordingly, an agreement was entered into with the Louisiana cane producers, and the beet manufacturers, by which the wholesale price of sugar was stabilized at not to exceed 9 cents. 5 It was known, however, that the Cuban raw sugar could be sold about IJ cents per pound cheaper than our domestic supply and at the same time leave a good margin of profit. The price allowed to the American producer, then, if extended to the Cuban crop would have meant tremendous profits to the Cuban growers. On the other hand, if the American refiners were allowed to buy Cuban raw sugar at the price the Cubans were willing to accept, and forced to charge 1 On Sept. 9, the refiner's margin was still further increased to $1.54 per 100 pounds*. 2 This margin was increased in the midsummer of 1918 to 35 cents. 3 On Nov. 7, 1918, the retailer's margin on sugar was fixed at $1.12 (bulk) and $1 in packages. 4 This price was decided upon after various meetings with the producers held during the early summer of 1918. It should be repeated once more that the guiding motive in fixing prices by the Food Administration was the stimulation of production. The policy was to put the price at the point at which at least 90 per cent of the producers could secure a fair profit. The interests of the consumer were always considered, of course, and made the limiting factor in determining the price to be fixed. If every producer of sugar had been fully recompensed without consideration for the consuming public, the price of sugar would perhaps have been three times what it actually was during the war period. 5 The actual price fixed was $0.0882. This price made raw sugar $0.0728 per pound, to which the refiner's margin of $0.0154 was added, It went into effect Sept. 9, 1918. GOVER^MEITT CONTROL OVER PRICES. 83 * 9 cents per pound for refined sugar (the agreed selling price for the sugar refined from domestic cane and beets), their profits would be far in excess of those ordinarily expected by refiners for their services. And, again, if Cuban sugar came into the United States al the price which the Cuban growers were willing to accept, and the American refiner's margin as determined earlier in the year was added thereto, and Cuban refined sugar was sold at a price considerably below 9 cents, the domestic cane and beet raising industry would be ruined and a shortage of sugar follow. A still further problem was that of equalizing the prices of the old-crop domestic sugars which were sell- ing at $7.30 per hundred pounds with those of the new 1918-19 crop which were soon to appear at the higher price of $8.82. The solution of these problems seemed to lie in some governmental form of equalization, whereby the existing differences in the costs of the domestic and imported sugars, as well as the differences be- tween the old and new crop prices, would be eliminated. To attain this end, the United States Sugar Equalization Board was incorpo- rated in July, 1918, with a capital stock of $5,000,000, owned by the United States. The board, shortly after its incorporation, purchased all sugars produced from the 1917-18 crop, still in the country or in transit, at the old price of $0.073 per pound, and immediately resold them to the same holders at the new price of $0.0882. Thus the extra profit, which would otherwise have gone to the refiners who had pur- chased at the old price and would have sold at the new price, was absorbed by the Sugar Equalization Board. 1 In like manner the board bought up the entire Cuban 1918-19 crop at the price of $0.0588 per pound (including costs and freight to Philadelphia and New York), and delivered it to American refiners on the Atlantic and Gulf coasts at $0.0728 per pound. Adding to the latter price the re- finer's margin of $0.0154, this sugar could be sold in refined form at the same price as the domestic production, i. e., $0.0882. In the price of $0.0728 to the refiner there was, after deducting duty and other costs, a margin of some 25 to 38 cents per 100 pounds. This amount instead of going to the Cuban producers or the American refiners went to the treasury of the Sugar Equalization Board. Thus the price of sugar was stabilized and the domestic industry preserved, while at the same time there went to the United States Treasury a considerable sum which would otherwise, in all probability, have gone to the American refiners or the Cuban producers. 1 The question naturally arises, What provisions were made for the disposal of stocks held by wholesalers and retailers on Sept. 7, when the higher price went into effect, and which had been bought at the lower price prevailing prior to this rise? The Food Ad- ministration specifically stated that such dealers should continue to sell all lower-priced stocks on the lower basis until entirely disposed of. Even the averaging of the new and old price was prohibited. When considered from the standpoint of the individual dealer, the gains accruing from the rise in price were necessarily small, for their supplies of sugar were limited, the license regulations having prohibited them from holding more than a 60-day supply at any one time. 84 HISTORY OF PRICES DURING THE WAR. The limitation of sugar consumption. The Food Administration, as well as the consuming public, learned shortly after the inaugura- tion of the Sugar Division that control both of the sources of raw sugar and the prices of the finished product would not solve all the difficulties presented by the shipping shortage. There was, first, the railroad blockade which made next to impossible an equitable distribution, especially in the eastern section of the country. Sec- ondly, the harvesting and marketing of the Cuban sugar crop begins about the first of the year and continues into the early summer. The Javan crop usually follows and fills in the void in receipts from June to October, when the beet-sugar crop begins to come in. The Louisiana crop first appears on the market in November and sup- plies our demand through the Avinter. The Javan crop was unat- tainable during the summer and autumn of 1917, however, and this, of course, added to the stringency. Moreover, the Atlantic coast refiners received considerably less Louisiana sugar than usual in late 1917, for the Louisiana planters were selling washed and clari- fied sugar which they made on their own plantations to manufac- turers of confections. They had found that the selling of sugar in this semirefined state yielded them a larger profit than would have been secured for their products had they sold it in the raw state to the refiners. 1 Third, an early frost had perceptibly cut down the Louisiana supply; and, finally, the demands of our allies kept in- creasing more and more beyond expectations. Limitation of consumption was, of course, the logical solution of this phase of the sugar problem, and in October, 1917, confectioners and manufacturers of nonessential foodstuffs were limited to 50 per cent of their normal requirements. Early in January, by reason of the new supplies from Cuba and Louisiana, this amount was in- creased to 80 per cent of normal requirements. It was later ruled " that such manufacturers starting operations after November 1. 1917, but before April 1, 1918, would be limited to 50 per cent, and that those starting after April 1, 1918, should be allotted no sugar whatever. Again, on July 1, 1918, all of the less essential industries were limited to 50 per cent. Beginning March 15; 1918, practically all manufacturers using sugar were required to obtain certificates from the Federal food administrators in their respective States, 1 The shortage of sugar in the fall of 1917 resulted in the limiting of manufacturers of nonessential foods to 50 per cent of their normal sugar requirements. These manu- facturers, however, could buy sirups, which they used as substitutes. Hence, rather than go without sufficient sugar, they were willing to pay to the Louisiana producers for washed and clarified sugar which normally sold for about one-half cent per pound less than refined the wholesale price of $0.0765 per pound, or the agreed price for refined sugar ($0.0635 Louisiana raw sugar price plus $0.013, refiner's margin). The Louis- iana producers, on the other hand, were glad to sell this clarified and washed sugar at $0.0765, for it netted them a larger profit than would have been secured had they sold it in the raw form to the refiners. This irregularity was later eliminated by fixing $0.0725 less 2 per cent as the maximum price at which washed, clarified, and open sugar could be sold. GOVERNMENT CONTROL OVER PRICES. 85 showing- amounts that they were entitled to purclia|e," x and these certificates were turned over to licensed wholesalers and other dealers when sugar purchases were made. Consumption by the public in general was also closely regulated, and purchases were limited at first to 5 pounds at a time for urban and 10 pounds for rural customers. In June these rations were changed to 2 a-nd 5 pounds, respectively, and retailers were for- bidden to sell sugar to their customers in quantities greater than 3 pounds per person per month. Later they were further reduced to 2 pounds per person per month. On October 30, with the new crops in view and with improved railroad service, regulations were once more modified and the per capita allowance was restored to 3 pounds. On November 13 an allowance of 4 pounds was made and manu- facturers were granted their full requirements. Finally, on Novem- ber 27, 1918, all restrictions were repealed with but two very im- portant exceptions, namely, first, price control was retained, through the operations of the equalization board, over its purchase of the Cuban 1918-19 sugar crop, until supplies were disposed of; and, secondly, a restriction of distribution by refiners to certain territories was retained in order to maintain an equitable supply for all parts of the country. 2 Sugar 1) y- products. The distribution of sugar by-products, such as sirups and molasses, and the regulation of their prices were also administered by the Food Administration. Molasses and sirups were specifically mentioned in the license regulations of October and November. 1917, but only in a general way. Indeed, the early regulations affecting these by-products may be summed up in the requirement that they " be sold according to the customs of the trade in the various producing centers of the United States." In March, 1918, control of the price of molasses was first inaugu- rated, and a maximum of 18 cents per gallon in tank cars at sea- board points was fixed for blackstrap molasses, either imported as such or produced in the United States from imported sugar cane. 3 Shortly afterwards, in order that the largest possible sugar extrac- tion might be gotten from the raw product, refiners were forbidden 1 See " Sugar Prices and Distribution," by Roy G. Blakey, Quarterly Journal of Econom- ics, August, 1918. Figures taken from the Sugar Market Review show that at least one- fourth of the sugar consumed in the United States 'goes to the manufacturer of confec- tionery and other sweet stuffs. 2 There was al*o a considerable number of regulations, too numerous to mention in the limited space available, which indirectly affected srgar prices. An equitable distribution among customers was prescribed ; only standard-sized packages could be used for packing sugar ; stocks to be held by any one concern were limited ; advance contracts were lim- ited to a specified number of days, etc. See Series VI, Special License Regulations, Man- ufacturers and Refiners of Sugar; also Series I, Governing All Licenses for the Importa- tion, Manufacture, Storage, and Distribution of Food Commodities and Feeds. 3 Beet molasses was also made subject to this fixed price in June. A maximum of 5 cents per gallon over the bulk price of 18 cents was permitted for barrel lots. The re- selling price of wholesalers was also regulated by the Food Administration. A maximum margin of 8 to 10 per cent was fixed by the Food Administration on sales of molasses in barrels by wholesalers to retailers. 86 HISTORY OF PRICES DURING THE WAR. deliberately to produce sirups or molasses from which sugar could be commercially extracted. In June the price of sirups manufac- tured from imported raw cane sugar was fixed at 50, 35, and 25 cents per gallon for high, me- dium, and low grades, respec- tively. Such prices were for lots purchased in bulk at primary markets. An added differential of 5 cents per gallon was allowed for sales of barrel lots. A system of priorities was formulated for the distribution of sirups, and distributors could secure their needs only after fur- nishing a certificate of priority from the Food Administration showing the purpose for which the sirup was to be used. Mo- lasses and sirups had to conform to certain specified standards and rules were laid down which regu- lated the method of shipping these products. These latter reg- ulations were repealed on Decem- ber 12, 1918, and on January 10, 1919, the regulation of the prices of molasses and sirups was with- drawn. The results of sugar control. One of the chief objections to price control made in the Senate sugar investigation of January, 1918, was that it kept down pro- duction. It would seem, if that be true, that the Food Admin- istration was defeating its own end, which was the stimulation of production, by imposing fixed Relative prices. Sugar : United States, Eng- prices * Upon raw SUgar and its land, France. By months, January, 1913, , -, , rrc, -,- a to December, 1918. (Average quoted prices refined product. The policy Ot July, 1913, to June, 1914=100.) providing for the greater part of the producers when determining upon a price to be fixed, ap- pears, after a review of the situation existing in late 1918, to have obviated largely this particular objection. For example, the total 1 These prices, of course, were the results of voluntary agreements between the sugar producers and the Food Administration, as stated above. GOVERNMENT CONTROL OVER. PRICES. 87 domestic cane-sugar crop for 1918-19 (the first cro^to be influenced by regulation) was estimated to be 21,000 tons larger than that of the preceding year. Moreover, the estimated output of the present Cuban crop was approximately 175,000 tons larger than that of 1917-18. To be sure, the domestic beet area of 1918 was some 15 per cent smaller than that of the year before, but this was due not so much to the regulated sugar price as to the higher prices of alter- native crops and the ill feeling among the beet raisers against the sugar refiners. Judging from the course of events in England and France, it might be supposed that the policy of the Food Administration had a considerable effect upon refined sugar prices. American wholesale sugar prices rose but 17 per cent from August, 1917, the month in which the Food Administration was inaugurated, to the signing of the armistice. French prices, on the other hand, rose 157 per cent in the like period, while in England an increase of 94 per cent was experienced. The course of sugar prices from January, 1913, to De- cember, 1918, in the United States, England, and France is here pre- sented graphically. The prices for each month have been reduced to a prewar basis, by allowing the average of the monthly prices for the year July, 1913, to June, 1914, to equal 100. LIVE STOCK AND MEATS. The devastation of a large part of the live-stock area of Europe, the shortage of fodder 1 and the resulting increase in the annual slaughter combined, in spite of a slight increase in the meat pro- duction in the United States, 2 to create a serious world shortage of meats and fats. 3 1 Mr. Herbert Hoover, in the fall of 1917 (Food Adm. Bull. No. 10), said in part: " The general policy of European nations is to reduce these herds by slaughter of their animals to an extent far beyond their annual production. It is obvious that the number of their animals which it is necessary to support by imported fodder requires shipping for their support far in excess of the tonnage that, would be required to import equal amounts of animal products. Furthermore, the production of fodder grains in Europe displaces, to a considerable extent, their possible production of bread grains." 2 The decrease in the world's supply of meat-producing animals suffered during the first 3 years of the war as shown in Bulletin No. 10, U. S. F. A., was as follows: Live stock. Decrease under prewar normal in- Total ac- tual net decrease under pre- war nor- mal. Western allies. Other countries, including enemies. Cattle 8, 420, 000 17,500,000 7,100,000 26, 750, 000 34,000,000 31,600,000 28, 080, 000 54,500,000 32,425,000 Sheep Hogs Total 33, 020, 000 92,350,000 115,005,000 3 The French official live-stock figures, published by the Food Administration on Aug. 3, 1917, showed that their supply of cattle had decreased by 16.6 per cent as 88 HISTORY OF PRICES DURING THE WAR. For more than a year the Allies had been taking increasing quan- tities of meat and fats from the United States and already our exports of fresh and pickled beef had mounted to over 270,000,000 pounds for the year ending June 30, 1917, or an increase of almost 3,000 per cent over the prewar average. Similary, our exports of bacon and ham had increased some 640,000,000 -pounds over the cor- responding prewar yearly average of 303,489,000 pounds. It was apparent that these large demands would gradually absorb our domestic supplies, and, indeed, the report of a commission appointed by Mr. Hoover showed that such was fast becoming the case with our herds of swine. 1 But in spite of this situation it was necessary that future shipments to the Allies must equal, if not exceed, those of 1916-17. Accordingly, two methods were adopted for the solu- tion of the meat problem conservation through decreased consump- tion and stimulated production. These two courses of action guided the entire price policy of the Food Administration with respect to meat, and to them must be attributed its success or failure. The task of stimulating production was attempted through patriotic appeal and through an assured return to the producer. It is with the latter, since the medium of its realization was a form of price control, that the present investigation deals. The stimulation of meat production. The Food Administration through Mr. Hoover, and the Department of Agriculture through Secretary Houston, in a statement on August 21, 1917, urged the farmers of the United States to increase the production of sheep, cows, and hogs, assuring them at the same time " a fair share of a fair price paid by the consumer." From the very beginning, how- ever, Mr. Hoover insisted that he had no intention of fixing the price either of pork or beef, but that he hoped to increase the meat supply by stabilizing the industry and supporting remunerative prices to the farmer through purchases of beef and pork for export. The consumer, on the other hand, was to be protected by the elimi- nation of speculative profits and the punishment of profiteering through a proposed license system. There were in reality two quite different problems to be solved, the one pertaining to beef and the other hog production. The beef compared with 1913, sheep by 33 per cent, and hogs by 38 per cent. These decreases, by the autumn of 1917, had increased by several per cent in the case both of sheep and hogs. The amount of meat passing through Smithfield Market, England's greatest meat distributing center, makrs evident the extent of the meat shortage in England during the summer of 1917. The total receipts for July, 1917, equaled 20,802 tons as compared with 23,954 tons in the same month of 1916 ; 29,597 tons in 1915 ; and 36,720 tons in 1914. These data show a decrease of 43.3 per cent in the meat there handled in July, 1917, under that handled in July, 1914. 1 The reports of a commission to investigate the cost of producing hogs, Meat Divi- sion, United States Food Administration, 1917, states that : The normal number of hogs in the United States is approximately 65,000,000 as contrasted with the present supply of not more than 60,000,000. GOVERNMENT CONTROL OVER PRICES. 89 problem was the less serious, for it seemed likely Ithat the Allies could support themselves by further encroachment upon their herds. Future contingencies had to be provided for, however, since it was necessary to maintain the milk herds of the European countries. Of much more vital consequence, however, was the question of hog supply. Pork at the time played a tremendously important part in the food supply of the fighting armies, so great, in fact, that it was often said that should the United States discontinue pork exports, " the German line would be moved to the Atlantic seaboard." Hog production. The world demand for fats and the increasing consumption, both domestic and export, made the pork problem one of grave concern to the Food Administration. Yet, the ease of in- creasing production afforded hope of a rapid solution. The out- standing obstacle during the summer of 1917, curiously, was the lack of confidence among producers in the stability of market prices. It was evident that the farmers of the country would have to be assured that their efforts toward increased hog production would not entail loss. Accordingly, a commission was appointed to find out the actual costs of producing pork. The commission, composed of lead- ing swine producers, investigated various phases of hog production and reported their results to Mr. Hoover on October 27. It was the opinion of the commission that the uncertainty on the part of pro- ducers, caused by the fluctuating market prices of live hogs, was leading to the marketing of large numbers of potential breeding stock. The continuance of that practice would obviously bring dis- astrous results. The commission declared it imperative to stabilize the market immediately, and suggested that a minimum emergency price be established. But it was also vital to stimulate swine pro- duction for 1917-18, and for this purpose it was recommended that a price, to go into effect on February 1, 1918, be announced for the 1918 litter. This price, it was believed should be based upon the price of corn. Observations had shown the average ration of corn to hog supply to be about 12 bushels of corn to 100 pounds of pork, and that as the ratio varied the stock of hogs in the country increased or fell off. It was mandatory, therefore, to maintain at least this ratio if a hog supply equal to that then existing was to be maintained. Indeed, the commission believed that in order to bring hog produc- tion back to normal a ratio of 13.3 to 1 would be necessary. Two days after the receipt of these findings, the Meat Division of the Food Administration was created in Chicago under the general direction of Mr. John P. Cotton. Acting on the basis of the above report, he checked the fall in prices at the central markets by declar- ing that the price of hogs until further notice would not " go below $15.50 per hundredweight for the average of the packer's droves on 90 HISTORY OF PRICES DURING THE WAR. the Chicago market." 1 This price was to be maintained through the control which the Food Administration had over the buying of the Allies, the Army, the Navy, the Red Cross, the Belgian relief, and the neutrals, 2 which together constituted a considerable factor on the market. He further stated that, in order to stimulate the 1918 hog crop and bring it back to normal, the Food Administration would try to stabilize that price so that the farmer could " count on getting for each 100 pounds of hog ready for the market 13 times the average cost per bushel of the corn fed into the hogs.'* 1 It should be borne in mind that this was not a guaranty on the part of the Food Administration. In fact, the Food Administra- tion had no financial or statutory means of giving such a guarantee. It was merely a statement of intention and policy. Close surveillance was kept by the Food Administration over the market after November 3 and methods were adopted to maintain prices in accordance with their outlined policy. In January, 1918, conditions became unfavorable. Prices had fallen to $15.9T. 3 It appeared doubtful whether the Food Administration would be able to keep the market up to the $15.50 basis. Accordingly, the Food Administration exerted all efforts toward securing orders and tided over the emergency. Prices for February, 1918, averaged $16.55. There follows a table showing the average actual prices of corn, mixed, cash No. 3, at Chicago from January, 1913, to December, 1918, and those for live hogs, bulk of sales : ACTUAL AVERAGE MONTHLY PRICES OF CORN AND HOGS AT CHICAGO, 1913-1918.< CORN, MIXED, CASH NO. 3. [Per bushel.] Month. 1913 1914 1915 1916 1917 1918 January .... . $0. 4788 $0. 6175 $0. 7135 $0. 7500 $0.9850 $1 5975 February .4891 .6169 .7325 .7375 .9950 1 6750 March . . .4945 .6403 .7160 .7158 1. 1243 1 6375 April .5481 .6678 .7510 .7417 1. 4722 1 5333 May.. . .. . .5688 .6930 .7585 .7500 1.6466 1 4500 June .. .-- .6072 .7244 .7431 .7157 1. 6921 4300 July .6150 .7060 .7878 .7757 2.0478 .5250 .7385 .8130 .8013 .8625 1.7917 6250 .7472 .7891 .7431 .8569 2.0881 535S .6950 .7338 .6246 .9572 1.9944 2533 November .7183 .6863 .6291 .9728 2.2500 .2725 December 6647 .6425 .6575 .9092 1.5935 4050 > Nov. 3, 1917. 2 See statement on " The centralization of Government and Allied food purchasers " in the latter part of this chapter. 3 A survey of hog and corn prices from January, 1913, to December, 1918, throws con- siderable light upon the conditions in the pork industry. The advance in the price of hogs over the prewar average appears at first glance to have been considerable. It should be remembered, however, that corn is the chief fodder consumed in the raising of hogs and that the greater part of the cost of the matured animal represents corn costs. Corn prices during the period dealt with rose from a prewar (July 1, 1913, to June 30, 1914) average of $0.679 per bushel to $1.597 per bushel in January, 1918, an increase of 133 per cent, as against hog prices which rose from $8.309 per hundred- weight in the prewar year to $15.975 per hundredweight in January, 1918, an increase of 91 per cent. 4 Quotations for corn, mixed, cash No. 3, are from the Daily Trade Bulletin, and those for live hogs (bulk of sales) from the Bureau of Crop Estimates, Department of Agriculture. GOVERNMENT CONTROL OVER PRICES. 91 ACTUAL AVERAGE MONTHLY PRICES OF CORN AND HOCS AT CHICAGO, 1913-1918 Continued. 1913-1918 Continued. LIVE HOGS. [Bulk of sales.] [Per 100 pounds.] Month. 1913 1914 1915 1916 1917 1918 January 87 4500 $8 1750 $6 8000 $7 2500 $10 8000 $15 9750 February 8 1750 8 5500 6 6750 8 2500 12 4500 16 5500 March 9 1250 8 6000 6 7250 9 4500 14 3250 Ifi ST'V* April... 8 8250 8 4750 7 2000 9 6250 15 6750 16 8500 May.. 8 5000 8 2375 7 4000 9 9500 15 9750 16 7750 June 8 6000 8 1000 7 4000 9 5750 15 1500 16 4250 July 9 0750 9 0000 7 1000 9 7250 15 2500 17 6250 August . 8 3750 8 9000 6 9250 10 2250 17 2500 18 7500 September 8 3750 8 5750 7 3500 10 6000 18 2000 19 3750 October 8 2000 7 7750 7 7250 10 0500 17 1250 16 7500 November . . 7 8000 7 6250 6 G250 9 5750 16 9500 16 6250 December 7 7500 7 2000 6 3500 9 4250 17 0500 17 0000 The salutary effects of controlled purchases were apparent through the spring and summer of 1918. In August, however, receipts at the packing centers began to decrease, since the 1918 hog supply was late in maturing. The immediate consequence, of course, was a rising mar- ket, and hog prices went to $18.75 in August and $19.375 in September. But the interests of the consuming public demanded a limit to this upward rise, and lest it go beyond bounds the Food Administration once more assumed control of the market. On this occasion a reversal of the method used in the early months of the year was applied, and European orders, which were an important part of the then existing demand, were withheld. Meanwhile, a subcommittee, the national agricultural advisory board, a body appointed in the early spring by Mr. Hoover and Secre- tary Houston to supervise live-stock production, had been considering methods to be further employed by the Food Administration in ad- ministering its policy of controlling hog prices. On September 25 this committee recommended that in placing orders for pork products the Food Administration require the packers with whom such orders were placed to agree to a definite price basis, determined in advance from month to month, for the purchase of their hogs, and that orders be based upon such an agreed price basis. It was also suggested that the Food Administration announce its intention of maintaining a minimum hog price of at least $15.50 throughout the period of the war. Both recommendations were formulated into a definite policy at a meeting of the Food Administration with some 50 packers. 1 The latter agreed to maintain through the varying seasons, as far as pos- sible, a $15.56 minimum for average droves, as well as to maintain the October price on a basis of about 13 to 1, or an average of approxi- 1 Oct. 4, 1918. , 92 HISTORY OF PRICES DURING THE WAR. inately $18.50. Attempts would also be made, they agreed, to prevent fluctuations of more than 50 cents per 100 pounds in any one week. The pork situation seemed to be settled and producer and consumer had been provided for when peace talk became current. The fear of cheap Argentine and South African corn resulted in a considerable decline in corn prices, 1 which, it was feared, would break the hog market. Swine producers, anticipating a fall in price, rushed their stock to the market in large numbers, which action in itself was bound further to lower hog prices. Thus, while the supply of hogs had in- creased only 8 per cent over the supply of 1917, the arrival of hogs at the seven great markets during the first three weeks of October was 27 per cent larger than in the corresponding month of the previous year. The result, of course, was a failure to maintain the price basis agreed upon for October. 2 The continued demands of the Allies and the prospective post-war requirements necessitated immediate remedying of the situation and a new basis of price determination was decided upon. The 13 to 1 standard was laid aside, and packers participating in Government orders agreed not to purchase hogs, during November, at less than a daily minimum price of $17.50 per 100 pounds for the average of packers' droves; and further pledged themselves to buy no hogs other than "throw-outs " 3 at less than $16.50. But, if the plan was to succeed, it was necessary to take measures against a repetition of the experience of October. Supervision of markets, clearly, and measures looking to a regulation of the flow of hogs in accordance with the capacity of the packing houses at the various centers were equally essential. The execution of this task was assigned to a price- stabilization committee, composed of representatives of the Food Ad- ministration, Department of Agriculture, hog producers, and the packers. This committee kept closely in touch with the hog receipts at the various important markets and, through a system of embargoes and car allotments, controlled shipments. Receipts in excess of the capacity of slaughtering plants and the overstocking of primary markets were prevented, and thus the likelihood of a recurrence of certain earlier difficulties reduced. Hog prices continued stable at about $17.50 throughout November, and through agreement this price was continued through December, 4 January, and February. 1 See preceding table for corn prices. 2 The influenza epidemic which curtailed pork consumption, and temporarily decreased the labor staff of the packers about 25 per cent, was another contributory factor in this connection. 3 " Throw-outs " were defined as pigs under 130 pounds, stags, boars," thin sows, and skips. 4 See preceding price table. GOVERNMENT CONTROL OVER PRICES. 93 Beef production. The regulations pertaining to To. 2 standard, average all sizes. 22 No. 2 fancy, average all sizes 31 It will be noted that canned beans are not included in the above list. This was due to the prohibition placed on canning beans in containers made of tin plate without a special permit. It was not until Nov. 1, 1918, that the canning of beans was permitted, and then only an amount equal to the average pack for the three months, November, Decem- ber, and January. 2 One other matter should be mentioned in this connection, namely, the question of fu- ture contracts. It was possible, for example, that on making delivery of certain products several months after figuring out preliminary costs, tlie actual cost might prove smaller than at first expected. This, of course, would mean a higher profit than allowed by the Food Administration. The solution of this problem was left in the hands of the packers themselves., as described by Mr. W. C. Mullendore, ibid. " The canning industry felt that it would be desirable to submit to the Food Adminis- tration these future contract sales' prices, asking the Pood Administration to sanction them and permit them to proceed in the confident belief that these prices would be acceptable to the Food Administration. The Food Administration was unable, however, to state what would be reasonable prices, for no matter how accurate an estimate of cost may be, the crop is not determined until actually put up, and therefore the Food Adminis- tration could not undertake to justify canners' future contract prices. In lieu of this method each canner was required, before invoicing his goods, to review the estimate he had made of his costs, and if it were determined that the original estimate was higher than the goods were proving to cost, then to revise downward to a point that would not provide a profit in excess of the Food Administration maximum." 3 10 per cent of the 1917 salmon pack was reserved for Army and Navy needs ; while of the 1918 pack 80 per cent of the red, 75 per cent of the pink, and 65 per cent of the chum Alaska salmon was taken over by the Government. 118 HISTORY OF PRICES DURING THE WAR. per hogshead was established as the maximum price to be paid for raw fish by the packers. With the price of sardines fixed, it was relatively a simple task to agree upon a price for the canned product. After an investigation of -costs, it was decided that a price of $6.50 per case for one-quarter oil, ke t yless, and $6.25 per case for one-quarter mustard, key- less, sardines, would provide a reasonable profit to the canners, and these prices were fixed as maxima for the remainder of the season. 1 It was not until October, how- ever, that the price of Califor- nia sardines was determined. A series of three prices was agreed upon, varying with the size of the raw fish to be sold: 2 and on the basis of these raw- fish prices, maxima for the canned products were set. 3 Salmon: Salmon, of course, played the most important part in the canned-fish situation of 1918-19, but in spite of this fact, it was not until many months after the price of sar- dines had been " pegged " that salmon canners were thoroughly controlled. Speculation h a d been reduced and the reason- able-profit rule had been applied to the salmon industry back in November, 1917, but lack of in- formation made it impossible to fix a definite price until well along in 1918. The price of the fish to the fisherman was first fixed, the output for Alaska, Oregon, and the coast streams of Washington serving as the basis. 4 Packing costs 1 These prices also were applied to the catches of the Canadian fishermen, who agreed to accept the maximum of $25 per hogshead for their raw fish. - The prices for raw sardines accepted by the Food Administration, effective for the 191819 season, were : Under 7| inches, $30 per ton ; over 7i inchos, $15 per ton ; fish for fertilizer purposes, $10 per ton. 3 The maximum canned sardine prices per cast- agreed upon were : Tomato Quarter round, $3.25; one-half round, $4; ones round, $5.75: OUPS oval, $7.25; one-half oval, $5.50. Oil quarter round, $3.25; one-half round, $4.15; ones round, $6. 4 Prices were fixed for the various sections of Alaska and Washington, while the catch of the Columbia and Rogue Rivers of Oregon was differentiated "into several types known as chums, chinooks, silver sides, and steelheads. HBL/OTVC PRICES or CANNED F15H SARDINES OtL.KCYLDS (lOO-^ INCH CWC) -SALMON PINK.TAU-,1 DOZEN 1 CANS 1.917 f 1916 f $8 f U & f iO> 300 ( 13 BY MONTHS JANUARY; isis^DECEMBERtDta AVER ACE QUOTED PRICES JUK ID13 T UUNE,tM'IOO mr r MO 1915 1914 1915 1916 $ 9 S. I 1 5 \ MM 5 i !j 200 ffi MX M/T / J 1 140 t i r 120 100 / I- >\ 400 Dr I ,> 60 60 60 A/ ..!.,,. .1.. ,.i,.i, ,i,. \i L 1 L" 1 1 .i..i.j.. OLuJ-uXu LLQ 1 k & 1 9 B k k B I Q 1 i fi ia 1914 1015 1O16 1917 1915 Relative prices Canned fish : Sardines, oil, keyless (100-i inch case) ; and Sal- mon, pink, tall, one dozen No. 1 cans. By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) GOVERNMENT CONTROL OVER PRICES, 119 were then investigated in the various important salmon-canning sec- tions, and on the basis of these costs, plus the prescribed raw-fish prices, maximum prices were established for the canned stock. 1 Canned Tuna : Tuna fish prices were dealt with in a manner similar to sardines and salmon, the price of the raw fish being first estab- lished. A conference of the Food Administration with the fishermen, resulted in the fixed price for all raw tuna of $100 per ton. Excep- tion was made in the case of two types known as Albacore and Blue Fin tuna, however, and for these an extra $10 per ton was allowed. On the basis of these figures, pricey were determined for the canned product, and the latter part of 1918 found the price situation in the tuna fish industry in a more stabilized condition. Dried fruits. Preparers and packers of dried peaches, apples, prunes, and raisins were included in the license decree of October 8, 191T. 2 Significant control was exercised over the prices of these fruits, although the primary aim of the Food Administration was apparently the checking of any possible speculation in the industry. In its uncertain character this industry corresponds closely to that of the canning trade. As with canned goods, it was necessary to limit as much as possible the control over fruits which were not yet on the market, and thus the first regulations affecting the industry prohib- ited " either the purchase or sale of new-crop fruits for spot delivery before May 1 of the year in which they were to be packed." : The selling price of the various fruits w r as at first kept under sur- veillance by a regulation requiring licensees who shipped in carload lots to submit to the Food Administrator all price lists or circulars relating to the price of their products ; and by use of these the Dried Fruits Division kept informed as to the tendency of prices within the trade. This system, however, did not result in as effective a control as was desired, and in its place a method of price control similar to that used in the canning industry was adopted. The fruit growers agreed to sell their peaches to the packers at 11 cents per pound. Similarly the raisin price was fixed at 5J cents. The packers were then called into conference and a schedule of maximum prices at which their products would be sold to the trade was adopted. 4 A profit limitation, however, was also placed upon the packers by limit- ing their returns to 4 per cent. 1 The complete series of canned salmon prices as established by the Food Administration in the three leading salmon sections are to be found on pp. 593-4. 2 The Dried Fruits Division of the Food Administration originally had in its charge the supervision of the dried-fruit industry. It was later consolidated with the Canned Goods Section under the new name of the Canned Goods and Dried Fruits Division. 3 On May 7, 1918, the date at which purchases of new-crop fruits not ready for spot delivery could be made, was changed to June 1, and on May 24 the date was extended to July 1. 4 See p. 596 for schedule of agreed fruit prices. 120 HISTORY OF PRICES DURING THE WAR. RELATIVE pnices OF RICC ---- JAPAN MEAD - HONDURAS MEAD PUFFED R1CC "! ..... flOAKER- BY MONTHS JANUARY, 1913' DECEMBER.lOia AVERAGE But this method of price regulation was applicable only to the peach, raisin, and prune packing industries, since the centralization of both sources of supply and packing plants made possible a system of effective supervision. The situation was different in the case of dried apples, for, while the packers were under license, the enormous number of apple raisers over the country made it impossible to come to a price agreement with any considerable number of growers. The only resort, then, was the regulation of packers' profits, and as in the case of the peach and raisin packer on the Pacific coast, their return was limited to 4 per cent, The results of control. Early in 1919 restrictions upon tho canning industry were removed, and the trade once more re- sumed its usual business prac- tices. It appears that little change was made in the level of the prices of the various canned commodities, but at least a more stable market followed the inau- guration of fixed maximum mar- gins. The Food Administration claims that its price regulations resulted in a radical revision of contracts, and an estimated sav- ing to the American consumers on the 1918 pack of peas, toma- toes, and corn alone of over $7,000,000. 1 Relative prices. Rice, Japan head, and Hon- duras head; and Tuffed Rice, Quaker. By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) RICE AND RICE FLOUE. The large demand for cereals of all kinds and the growing im- portance of rice as an article of diet was reflected in the price tendency of rice after our entrance into the war. The price of Japanese rice rose 82 per cent in the two months March to May, 1917, while the Honduras variety increased 42 per cent in the same period. This upward trend continued until the new crop appeared in October. 1 See W. C. Mullendore, ibid. GOVERNMENT CONTROL OVER PRICES; 121 Then prices remained relatively stable until February, 1917, the period of harvesting. But the rise was resumed then, and not until the Food Administration undertook to "peg" the price of rice in July, 1918, did the first evidence of stability appear. Control over the industry. Rice became a substitute for wheat during the period of cereal grain shortage, and this fact had weight in determining that all "importers, manufacturers, and distributors of rice and rice flour" should be licensed under the presidential procla- mation of October 8, 1917. At the very beginning, regulations were inaugurated which limited the returns to rice dealers, and licensees were forbidden to sell rough rice "at an advance over the actual price in excess of 1 per cent over purchase price, plus storage, insurance, and interest on the investment at the rate of 6 per cent per annum." 1 Resales were prohibited so as to prevent speculation, and millers were restricted in the amount of rice they could keep on hand. Also, contracts for future delivery were limited to 30 days. But the limitation upon profits of rough-rice dealers and the elimi- nation of speculation, was of little significance as a factor affecting rice and rice products prices, in view of the tremendous rice demands of 1917 and 1918. Even in the summer of 1917 our supplies of rice were beginning to feel the effects of the wheat shortage and the de- mand for wheat substitutes, both foreign and domestic; and on August 1, 1917, the end of the crop year, our carry-over of rice was but approximately one-half of that of the preceding year. The stimulated consumption of rice during the spring of 1918 at the en- couragement of the Food Administration still further accentuated the situation, and August 1, 1918, found the United States bare of rice supplies. The price agreement of the summer of 1918. The prices of rice continued to advance through 1917 and early 1918, and by July of 1918, it was realized that the stabilization of rice prices was neces- sary, and the rice producers and rice millers of the country were called into conference. 2 The final solution proved to be a system of price fixing by agreements whereby the rice millers agreed to pay definite prices to the growers of rough rice, and also promised not 1 Commission charges of agents were also limited to 1 per cent. The " reasonable- advance-over-cost " rule was applied to clean rice as in the case of all other commodities. 2 There is another factor quite generally overlooked which has an important bearing upon the problem of fixing rice prices. Imports play an appreciable part in the rice supply of the United States, and in 1918 they were equal almost to one-third of our production. On July 26 the War Trade Board announced that all imports of rice shipped from foreign ports after July 31 would be prohibited, and this meant that our supply, already too small, would be further cut down. 122 HISTORY OF PRICES DURING THE WAR. to sell clean rice at more than prices named in the agreement, L ranging from 7 cents per pound for choice Japan, to 9J cents for fancy Honduras. On this basis, with the broker's margin definitely fixed; 2 with the millers' maximum price of rice flour fixed by the Food Administra- tion at 75 cents per 100 pounds above the purchase price of brewers' rice or screenings; 3 resales prohibited; and a maximum margin de- termined for the sale of rice from wholesalers to retailers, it was quite evident that much had been done toward the stabilization of rice prices. Indeed, the Food Administration went so far as to state publicly that in their opinion consumers should "be able to purchase rice at a price of approximately 10 to 12 cents per pound, depending on remoteness from the milling centers." The method of price regulation adopted, however, required super- vision, for rough rice prices were based on grades, and the decision as to how a certain lot of rice w r as to be graded could not be left in the hands of the grower ; nor, on the other hand, could the grading be intrusted to the miller. Accordingly, a general committee was appointed to accomplish a fair valuation of the grower's product, and to these men was left the task of supervising and carrying out the con- tracts and the grading and valuing of rice samples submitted by the growers. 4 Moreover, in order equitably to allocate the rice crop among the various millers of the country, each mill was allotted a maximum amount which it might purchase of the 1918 crop, based 1 The prices fixed for rough rice to be paid to growers by the millers were as follows : $7.50 per barrel of 162 pounds for No. 1 and No. 2 Honduras (river type) in sacks; $7.25 per barrel of 162 pounds for No. 3 Honduras (river type) in sacks; $7 per barrel of 162 pounds for No. 4 Honduras (river type) in sacks : $7.25 per barrel of 162 pounds for No. 1 and No. 2 Blue Rose in sacks ; $7 per barrel of 162 pounds for No. 3 and No. 4 Blue Ro.se ip sncks ; $7 per barrel of 162 pounds for No. 1 and No. 2 Japan in sacks; $6.75 per barrel of 162 pounds for No. 3 and No. 4. Japan in sacks. The selling prices of the products secured from the milling of rough rice were agreed upon as : Fancy Honduras, 9 cents per pound, packed in 100-pound pockets ; choice Honduras, 84 cents per pound, packed in 100-pound pockets ; fancy Blue Rose, 71 cents per pound, packed in 100-pound pockets ; choice Blue Rose, 71 cents per pound, packed in 100-pound pockets ; fancy Japan, 7 cents per pound, packed in 100-pound pockets ; choice Japan, 73 cents per pound, packed in 100-pound pockets ; fancy second heads, 6| cents per pound, packed in 100-pound pockets; screenings (river), 61 cents per pound, packed in 100- pound pockets ; screenings, 5 cents per pound, packed in 100-pound pockets ; brewers', 5| cents per pound, packed in 100-pound pockets. 2 Broker's commissions for the negotiation of the sale of rice or rice products were limited under regulations of July 29 to: (1) 7 cents per 100 pounds on car-lot orders, except brewers' rice, sold in New York, San Francisco, Charleston, Savannah. Jackson- ville, St. Louis, Kansas City, Galveston, and Houston; (2) 6 cents per 100 pounds on any quantity of rice, except brewers' rice, sold at New Orleans; (3) 8 cents per 100 pounds for car-lot orders, except brewers' rice, sold at any other point except those designated in (1) and (2) ; (4) 6 cents per 100 pounds for brewers' rice sold at any point, in any quantity ; (5) 25 cents per ton on rice bran or rice polish at any point, in any quantity ; (6) 6 cents per 100 pounds on rice flour sold anywhere, in any quantity. :i The quality of rice flour to be manufactured was specified in license regulations. 4 The detailed work of grading and evaluating was placed in the hands of subcommit- tees, with officers in the various cities of the southern rice States and of California. GOVERNMEXT CONTROL OVER PRICES.. 123 on its individual capacity and its average receipts for the three sea- sons 1915 to 1918. 1 Provision was also made for the sale of clean rice imported as such, and which would not, therefore, come under con- trol as the product of American mills. For such rice a maximum advance of 10 per cent over the price paid by the importer, plus freight and insurance, was allowed. It would seem that these arrangements resulted in marked savings to the American public, from a study of the price tendency of the Japan variety of rice after July, 1918. 2 Honduras head rice also shows the stabilizing effect of the price agreement of 1918. This agreement, incidentally, is still in force (June 15, 1919) and, with the exception of the wheat and sugar arrangements, is the only agreement of its kind which w r as extended into the summer of 1919. COAKSE GRAINS AND FEED STUFFS. Human foods. The coarse grains were among the many commodi- ties which felt the effects of the stringent wheat shortage of 1917. There were, moreover, such factors as the small carry over fronTthe 1916 crop, the large demand by distilleries, and the small crop in Argentina, which played an important part in sending the price of individual coarse grains such as com to levels beyond those of other commodities. 3 Corn, oats, rye, and barley w r ere not important as hunian foods in prewar years, but took their chief commercial value from their use as feeding stuffs for live stock. The Food Administration, therefore, handled them in connection with the general problem of mill feeds. Storers, distributors, and millers of rye and its products were included in the first presidential proclamation relating to licenses issued August 14, 1917, and barley and barley flour, oats and oatmeal, corn, corn grits, and other corn products such as glucose, hominy, etc., were added on October 8. 4 1 The various expenses of administration, such as grading, evaluating, weighing, super- vising contracts, etc., were to be borne by the milling interests who were to pay to the office of Food Administration Grain Corporation at New Orleans a fixed fee of 6! cents for each barrel of rice purchased. 2 See rice chart, p. 120. s A complete record of tlie prices of the various grains can be found in the bulletins " Prices of Barley, Hops, Rye, and their Products," " Prices of Corn and Corn Products," and " Oats, Rice, Buckwheat, and their Products," in the W. I. B. Price Bulletin Series. The coarse grains, by the summer of 1917, had in several cases reached unprecedented heights. No. 3 yellow corn, in June, 1917, was selling for $1.73 per bushel, and in July reached a level of $2.06, as compared with the prewar average of $0.685. Similarly, barley, which in the prewar months averaged $0.6243, was selling in the summer of 1917 around $1.40 ; while rye, in June, 1917, was selling at $2.36, a price over four times its peace time average of $0.5653. 4 Later, 011 January 10, 1918, all importers, manufacturers, and distributors of feeding stuffs were made subject to license by presidential proclamation, thereby bringing all the products of coarse grains under license regulation. 124 HISTORY OF PRICES DURING THE WAR. It was evident from the beginning that speculation in these coarse grains must be eliminated, else the instability of the preceding months would recur. At the request of the Food Administration, speculation on the grain exchanges had been virtually stopped in August. But the elimination of speculation meant much more than the closing of exchanges. Indeed, it meant that not only must the amount of grain which any individual should be allowed to hold be fixed, but that a limit must be set upon the length of time during which a licensee might keep his grain. The first regulations which were applied to licensees, therefore, forbade the holding or storing of grains for more than 30 days. 1 But the prohibition of speculation did little to keep in check the soaring tendencies of the various grains and their products, for, with the coming of the severe winter of 1917-18 and the tie-up of railroad transportation, the consequent shortage of supplies sent the price of these foodstuffs far above their prelicense level. The conservation rules of the Food Administration, moreover, required the buying of wheat substitutes with each purchase of wheat. This step, naturally, created an extraordinary demand for coarse grains and pushed their prices upward. The creation of the Grain Division. Conditions were becoming- acute, and on April 1, 1918, the Food Administration created its Grain Division and gave it oversight of the coarse grain problem. The first act 'of this division was the opening of the grain exchanges to legitimate hedging operations. It also permitted speculative accounts limited to 200,000 bushels, so as to keep the market open and thus stabilize prices. 2 A plan was needed, however, for the definite pegging of prices, and with this in view a system of weekly reports was inaugurated by which every coarse grain miller and every feed dealer advised the Food Administration of the exact cost of his raw materials and the exact selling price of his manufactured products. The Grain Division in this way informed itself of margins of profit. These 1 This regulation made it illegal to hold or store rye at any point for more than 30 days. As regards the other coarse grains, this prohibition applied only to seaboard points, but at such points not only was storage limited to 30 days, but such grains which had been received on or before Sept. 1, 1917, could not be held for a period longer than 5 days after regulations became effective (Nov. 1). 2 With the grain exchanges virtually closed and no means of hedging, it was impos- sible for millers and dealers to protect themselves against future price falls. In other words, they could not sell on " futures," to be delivered at a later date, and had no as- surance of a profit at the time of delivery. What they did then was to charge a high mar- gin for those sales of actual grain on hand which they did make, and in that way try to eliminate any possible loss which might result in the future, due to a fall in prices. (See final report of Food Administration, ibid.) It is of interest to note that later regulations provided for losses or gains from hedging " on any recognized grain exchange " in arriving at the cost of corn, oats, rye, and barley, in interpreting the " reasonable-advance-over-cost " rule. GOVERNMENT CONTROL OVER PRICES. 125 ES S S si 8" m 5 11 fl H-T nua quo 00.) ths, ver &%$ jSo lls 5 a 2 a j^ 126 HISTORY OF PRICES DURING THE WAR. reports were regularly and minutely checked, and as an example of the results obtained from this system it is interesting to note that in the single month of June the question of price reduction was taken up with 204 mills, 95 of whom as a result lowered the price of their products. The savings effected because of the orders of the division to reduce prices in June alone have been estimated to equal $175,000. * The limitation of coarse grain millers* prices. After digesting these reports for several months, the grain division prescribed on July 20, 1918, with the aid of the industry, a series of maximum margins to be added to costs in determining the prices to be charged for the various grain products. 2 Moreover, a definite limitation of 6 per cent was placed on profits of millers from gross sales of the edible products of the various coarse grains for any six-month period. The profits of the manufacturers of coarse grain products were thus limited to reasonable bases, and it remained to fix specific mar- gins on returns of grain dealers and elevator operators from whom these manufacturers secured their supplies. 3 The formulation of definite profit limitations soon appeared de- sirable, and regulations were issued on September 10 fixing the maxi- mum net profits for " any grain dealer, including country elevators dealing in grain, to 3 per cent of the first $300,000 of the gross sales per annum, (and) 2 per cent on all gross sales in excess of $300.000 per annum," thereby providing a system of regulation for virtually the entire coarse grain industry ; excepting the farmer, whose returns were beyond the powers of the Food Administration. 1 Similarly, price reductions in July netted $116,000. An idea of the range of price reductions will be gained from the following table taken from the Monthly Report of the Activities of the Grain Division of the United States Food Administration for June, 1918 : Reductions per 100 pounds. Low. High. Low. High. Meal $0 11 $0.80 Hominy $0.50 $0.50 Flour .05 .83 Grits .30 .30 Price reductions in July varied from-$2 per ton for gluten feed to $17.25 per ton for linseed meal. 2 The following differentials (in cents per hundred pounds bulk product) were promul- gated : Old-fashioned or water-ground meal, 50 ; standard and bolted meal, 50 ; pearl meal, 60 ; pearl or table hominy, 80 ; grits, 80 ; cream meal, 80 ; Ceraline flakes, 120 ; corn flour, 100 ; other cornmeal, 60 ; barley flour, 95 ; rye flour, 90 ; rolled oats, oatmeal, oat flour, 90. It should be noted that these prices were bulk prices for grains packed in barrels, or 100-pound jute or cotton bags, and did not apply to products sold in packages. For corn meal, corn grits, hominy, corn flour, barley flour, and rye flour sold in packages, a series of differentials over and under the bulk price were drawn up. The maximum price per pound for hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed produced as a by-product of manufactured edible corn, barley, rye, or oat products, could not be more than the " purchase price per pound of the grain from which ft was manufac- tured." 8 The reasonable-advauce-over-cost rule, of course, applies to dealers and mill operators. GOVERNMENT CONTROL OVER PRICES, 127 Feeding stuffs. The profits of feed-stuff producers were fixed in December, 1917, when a series of differentials was announced on various wheat feeds. 1 In July, 1918, further differentials were an- nounced for wheat feeds in less-than-carload lots and individual maximum margins were designated for sales by millers to wholesale and retail feed dealers. Indeed, a fair-price schedule based on the Government wheat price was drawn up and submitted to each mill and on the basis of the schedule millers were to sell their wheat feed. The maximum return of 6 per cent on total gross sales was made applicable also to the manufacturer of mixed feeds. A considerable margin, however, was allowed him on individual sales equaling a return of 12J per cent on the cost of materials, manufacturing, and overhead. This maximum margin, it appears, was made wide "be- cause of the speculative character of the products which went into the manufacture of mixed feeds, and the rapidly fluctuating prices which might prevail." Dealers, on the other hand, were allowed a still larger margin on individual sales, and for them a maximum 15 per cent over the purchase price was considered a fair return. Moreover, their annual earnings were also limited and a yearly net profit " by any whole- sale dealer in feeding stuffs of more than 4 per cent on total gross sales, if his gross sales of feeding stuffs amounted to $100,000 * * * per annum was considered prima facie evidence of a violation of the rule which prohibited the taking of unreasonable profits." - Feeds oilier than coarse grains and their products, -There are other important feed stuffs which can not be properly classified under coarse grains, but which play an important part in the American live-stock industry. These grains were all controlled to some extent, and definite Drice regulations were applied to their sales. Eice feed was provided for under the agreement with the rice industry mentioned in preceding pages, whereby all rice millers agreed to sell rice polish at a price not to exceed $50 per ton, car lots, f. o. b. mill, and rice bran at a maximum of $36. Beet pulp, an important by-product of the beet-sugar industry, was definitely controlled as to price, and the following were con- sidered as maxima which would return a fair margin of profit to the beet-sugar manufacturer : 1 See schedule of margins on wheat feeds on p. r>82. 3 The above rules did not apply to wheat-mill feeds, or the feeds which are discussed im- mediately below. In these cases, however, where wheat-mill feeds, cottonseed products, rice polish and bran, or dried beet pulp were sold, as well as other feeds, the 4 per cent was calculated on all sales. 128 HISTORY OF PRICES DURING THE WAR. Wet beet pulp, bulk, mill (car lots) per ton $0.80 Wet beet pulp out of silo, bulk, mill (car lots) do 1.25 Dried beet pulp, sacked, f. o. b. factory (car lots) do 40.00 The price regulation for cottonseed meal has been dealt with in the chapter on "Cottonseed and its products." Definite prices were fixed for meal and cake in various sections of the country, while hulls were to be sold at $20 per ton, bulk, f . o. b. points of manufacture. COFFEE. The outbreak of war in July, 1914, followed by the allied block- ade and the cutting off of supplies from central Europe, had its effect upon the price of coffee, which in former years had found a large market among the peoples of the Central Powers. With the elimination of these markets and with the constantly tightening em- bargoes of the allied countries to conserve shipping space, the United States soon became virtually the only large coffee-consuming country. But it became evident that we could not absorb the total production of the coffee-raising countries. The nature of the coffee industry, on the other hand, made impossible the cutting down of production to a degree commensurate with the decline in demand. The result was that throughout 1915, 1916, and the greater part of 1917, coffee sold on American markets at a figure appreciably lower than the average for the prewar years. The coffee growers of Brazil, however, set about to get a price somewhat in relation to other commodities. The natural operations of the market provided no relief, and since it w r as apparent that arti- ficial methods would be necessary, a plan which had been found practicable before was once more put into effect. This plan was the valorization scheme, whereby the Government bought up as much coffee as was necessary to stabilize the market. This undertaking by the State of Sao Paulo in Brazil evidently brought little immediate results; yet later developments showed that it had exerted some effect upon the coffee dealers of the United States. Moreover, the fact was emphasized by interested parties that coffee was relatively cheap and that any sudden termination of hostilities would have an important effect upon coffee values by opening the European markets. Governmental interference. The coffee propaganda was making itself felt by the fall of 1917 upon the speculators and dealers in coffee futures and coffee prices started upward in this country. By January, 1918, the prewar price was reached, and the Food Adminis- tration soon realized that Government interference was necessary. On January 30, 1918, all dealers in green coffee were instructed to secure licenses from the Food Administration. GOVERNMENT CONTROL OVER PRICES. 129 Price control was the immediate occasion for this action and the first regulations promulgated had a direct bearing on sales and re- turns. On February 6, 1918, two days after the license regulations went into effect, all purchases and sales of green coffee on the New York Coffee and Sugar Exchange for delivery during the month of February were limited to a maximum price of 8-J- cents per pound for the standard grade, type No. 7. On purchases which were to be delivered after the month of February, there were allowed an additional carrying charge of $0.0015 for each month on each pound of coffee. Thus the maximum spot price of coffee on the exchange was fixed at 8J cents. This action made it relatively simple to pro- vide for the control of the individual dealers, in whose hands lay the distribution of coffee. Provision was made immediately for the control of the coffee re- turns by the general rule of fixed percentages over cost. Importers were given the right to charge 2J per cent per pound over costs 1 while jobbers were allowed a maximum of 5 per cent over cost. 2 Licensees were instructed to keep their supplies moving in as direct a line to the consumer as practicable, and without unreasonable delay. Resales were restricted, especially when tending to result in a higher price to the retailer or consumer. However, when there was a reasonable justification for resales they were permitted at certain fixed rates. 3 The stocks of any member of the trade, moreover, were limited to 90 days requirements. In spite of regulations limiting returns and the restricting of sales on the Coffee. Exchange to certain prices, many difficulties occurred which gave trouble. They lay primarily with the rules limiting the transactions on the exchange. The maximum spot price had been fixed, and this maximum price which was the same for each month was always reached. This rule effectively stopped speculation, but seemed not to take account of certain customs of the trade. Many dealers had hedged their stocks on the exchange, hoping to buy back their hedging sales later when deliveries were due. But when such time came apparently they could not buy back these sales since holders of coffee refused to sell at the fixed maximum prices. The actual stocks, therefore, were not released to the trade. By October I In arriving at cost, the licensee could take into consideration the gain or loss resulting from a single actual hedging transaction on the Coffee Exchange. II On July 24, 1918, an amendment to the regulations increased the maximum profit allowance to 5 per cent for importers and 1\ per cent for jobbers. 3 Returns on sales from one importer to another were limited to \\ per cent over cost, and on sales from one jobber to another profits were fixed at a maximum of 2| per cent over cost. These were increased on July 24, 1918, to 2*. and 31 per cent, respectively. 125547 20 9 130 HISTORY OF PRICES DURING THE WAR, the situation became acute and many outstanding orders remained unfilled. 1 The closing of the Coffee Exchange. Finally, on October 28, the board of managers of the Coffee Exchange suspended trading in futures. This action, it was explained, was prompted by advances of coffee in the Brazilian market above the price fixed in this coun- try. In the meantime negotiations had begun between the Food Ad- ministrator and the War Trade Board relative to a solution of the problem, and on October 14 the announcement was made that "no licenses for the importation of coffee would be issued except to the United States Sugar Equalization Board." This action was taken to adjust coffee imports with shipping conditions, to effect an equi- table distribution to the trade, and to insure the supplies necessary for home consumption. This action seemed a solution both for the tie-up in stocks which were being held under long-term contracts and for the high price in the Brazilian market. But the Food Admin- istrator wanted to release all stocks in this country, and on November 1 ordered that all coffee futures be liquidated at the maximum price before November 9. He further prohibited new operations and transactions on the exchange after November 2. The Coffee Ex- change resumed operations in order that contracts in force might be closed out, and by November 9 all deliveries of coffee on future con- tracts were completed and the trade secured the necessary supplies of coffee. All regulations of the Food Administrator were removed on December 31, 1918. COLLATERAL COMMODITIES. The Food Administration undertook control not only of food- stuffs but also of commodities intimately related with the production of foods. Ammonia and arsenic were intimately related to the con- servation of foods, while ice and twine affected the ultimate price of foodstuffs to the consumer. 2 Ammonia. The part which refrigeration plays in the preserva-. tion of foodstuffs made ammonia a logical commodity for Govern- mental oversight. Moreover, there were the demands for ammonia for fertilizers and for the manufacture of explosives. The 1918 1 The following statement issued by the Food Administration on the occasion of closing the Coffee Exchange shows well the condition of affairs at the time : " It had been found that several houses operating for foreign account bought coffee futures upon the New York Coffee and Sugar Exchange to the amount of several hundred thousand bags. The sellers have sold against coffee in stock and en route. The effect is to tie up this coffee from distribution for many months, and to necessitate extra tonnage being em- ployed if our supplies are to be maintained." 2 The Division of Miscellaneous Commodities, created immediately after the establish- ment of the Food Administration, at first handled some of those extra-food com- modities. Later this body merged with the Division of Chemicals which also had supervision over nonfood materials, and both together were known as the Division of Collateral Commodities. GOVERNMENT CONTROL OVER PRICES. 131 requirements of the Ordnance Department for ammunition alone were greater than the entire domestic production of ammonia for the preceding year. 1 Further an important part of the American supply of ammonia had formerly been imported. The shortage of shipping had already cut down imports, and there was in prospect a still further cut during 1918. 2 The needs of the situation were foreseen early by the Food Admin- istration, and even before the ammonia industry was put under license a system of effective agreements was devised. The ammonia manufacturers were called into conference and an agreement was made whereby the allocation of the American output of ammonia was put into the hands of the Food Administrator. He in turn appointed the interdepartmental ammonia committee, upon whom devolved the task of distributing the ammonia supply and deter- mining the supervision of allotments. 3 A further agreement on the part of manufacturers obliged them not to sell anhydrous ammonia for more than 30 cents per pound, car- load lots, and aqua ammonia for more than 8J cents, carload lots. These informal controls came before the ammonia industry was brought under license. The agreement discussed above was made on November 19, 191T. 4 The advantages to be gained from the complete control of the ammonia industry, however, led to the licensing of the importers, manufacturers, and distributors of ammonia, ammoniacal liquors, and ammonium sulphate by a proclamation of January 3, 1918. Ice. Many conservation measures were put into effect, the most important of which was a campaign for the shutting down of artificial ice plants during the winter months and the utilization of natural ice. Artificial ice manufacturers were asked to use the least possible amounts of ammonia and manufacturers were instructed to supply ammonia to concerns only in such quantities as would permit them to 1 See final report of Food Administration 1918, ibid, 2 As shown in the appended ^table, based on data from the United States Department of Commerce, American imports of ammonia (muriate) suffered a large decrease during the early years of the war. Receipts for 1917 were loss than half the size of those of 1913, while the acute situation of 1918 virtually eliminated them : Calendar year. Pounds. Calendar year. Pounds. Calendar year. Pounds. 1913... 9,019,418 1915 2 542 592 1917 2 146 549 1914 7 841 546 1916 1 653 354 1918 ' 284* 904 3 This committee was made up of representatives of the War Department, Navy Department, Department of Agriculture, Department of the Interior, the War Industries Board, and the Food Administration. * Although the licensing of the ammonia industry was put into the hands of the Food Administration, the enforcement of the regulations promulgated was theoretically intrusted to the Department of Agriculture. However, the interdepartmental ammonia committee really enforced the rules which were put into effect. 132 HISTORY OF PRICES DURING THE WAR. operate their plants with a maximum degree of efficiency. Moreover, monthly consumption reports were required from each ice and refrig- eration plant by means of which a careful check was kept upon con- sumption. Where there appeared undue use by a concern, the manu- facturer who supplied the ammonia was notified to refuse to make further deliveries unless evidence was furnished that wasteful meth- ods would be discontinued. The efficacy of the price control over ammonia seems striking after comparing the price of ammonia in the year 1918 with prices in general. The extraordinary feature of the control is that a stable price was maintained during a season " at the outset of which we were faced with an apparent shortage of 60,000,000 pounds." This control is notable in the degree of informal control which obtained before ammonia was put under license. The price of ammonia, liquid, an- hydrous, in cylinders, at New York, held at 25 cents per pound during the war until August, 1917, when it rose to 30 cents and stayed there through 1918. The conservation measures inaugurated in the refrigerating and ice-producing industries in the winter of 1917-18 resulted in harvest- ing more natural ice, and the spring of 1918 found one of the largest ice crops ever stored in the United States. There was no reason to fear any acute shortage then, but because of the importance of ice to the food program it was deemed advisable to see that ice prices did not exceed a nominal level in the various parts of the country. The industry was never put under license, but supervision was maintained throughout the summer of 1918. It was obviously impossible for the central office of the Food Administration to administer control over the almost limitless array of ice distributors, especially when no one of them was subject to any direct regulations, and when no one of them made any reports as to his methods of doing business or as to the prices charged for his commodity. The supervision over ice prices was placed in the hands of the Federal food administrators for the various States, with instructions that they keep under con- trol the ice prices in their industrial districts. Price increases were investigated by these officials, and with them was left the task of determining the reasonableness of price advances in the territory that came under their jurisdiction. The theory applied in making such decisions was that " as far as possible the burden of any neces- sary increase should fall upon the large users rather than upon the small household consumer." 1 Arsenic. The extraordinary demands for insecticides in the pro- duction of which the greater part of the domestic output of arsenic is consumed, together with the needs of glass producers, resulted in 1 Final report of the Food Administration, 1918. GOVERNMENT CONTROL OVER PRICES. 133 a spectacular rise in the price of arsenic even before the United States entered the war. Under the stimulus of this large demand the Amer- ican production of arsenic increased rapidly during the war, and in 1917 the output amounted to 6,151 tons, as against 2,513 tons in 1913, an increase of approximately 150 per cent. But this increased output was by no means commensurate with the growing demands of the country, and by late 1916 a shortage was threatening. In December, 1916, arsenic was selling at a price 134 per cent higher than the aver- age prewar level. The American entrance into the war accentuated the difficulties of the situation, and arsenic prices began soaring to unprecedented levels. By September, 1917, arsenic had reached a point 481 per cent above its average for 1913-14. Apart from the rise in price, moreover, the insecticide producers were complaining of their inability to secure arsenic. This condition had a direct bearing upon the food situation, and on November 15 a proclamation was issued which required all those engaged in im- porting, manufacturing, storing, and distributing white arsenic or engaged in the manufacture of insecticides containing arsenic to take out licenses within five days. Regulations were issued similar to those which were promulgated in the case of foodstuffs, and provi- sions were made for the securing of reports from licensees which showed the state of affairs in the industry. Measures were also en- forced which aimed at the elimination of hoarding, the prohibition of unreasonable profits, the prevention of waste, and the diversion of arsenic from less to more essential uses ; and sales to others than manufacturers of insecticides, medicines, and such products as were required by the United States Government were forbidden, unless specially authorized by the Food Administration. 1 Moreover, the price situation was immediately investigated, and on February 23 the producer's price of white arsenic was virtually fixed at a maximum of 9 cents per pound delivered at any point in the United States in car- load lots. 2 This price was a cut of almost 50 per cent from the market price of 16.5 cents for the preceding month. It appears, however, that this new low price was not reflected universally in the consumer's price, since they were known to be paying as high as 30 cents per pound for small lots. 3 The trade was therefore notified, on April 4, that the price of arse- nic to the consumers would have to be considerably lowered, and a margin of one-fourth cent per pound was declared to be a fair return 1 This latter regulation, it will be noted, made it illegal to sell arsenic without permis- sion of the Food Administration to glass producers, who were normally large consumers. 2 An extra half cent per pound was allowed for less than carload lots. 3 Review of Control of Arsenic and Arsenical Insecticides. Files of U. S. Food Adminis- tration. 134 HISTORY OF PRICES DURING THE WAR. to dealers who sold in carload lots. In this way the selling price of arsenic to consumers was fixed. 1 The Army was daily increasing its demands for arsenic, both for airplane " dope " and poison gas, and by the middle of the summer of 1918 their needs were estimated at 6,400 tons for the coming 12 months. Added to this were the British requirements of 2,000 tons, making the military needs of the country 8,400 tons. As stated above, however, our total output of 1917 was equal only to 6,151 tons, and this amount, it was estimated, would be increased through new production facilities by some 2,000 tons. Therefore, our entire domestic production would barely meet our military demands. Investigation into other possible sources showed that if we included all our stocks and such supplies as were available in Canada we might possibly count on a maximum of 14,400 tons for the year ending July, 1919. There would then be available for agricultural and other uses about 6,000 tons. Of this, 1,000 tons had already been delivered to producers of sheep dips and glass. Our requirements of 1917-18 had been approximately 11,300 tons, of which 8,000 had gone into agricultural uses, 2,000 into the manufacture of glass, and 1,300 into the drug industry and other miscellaneous uses. It appeared, there- fore, that there would not be sufficient arsenic to supply even our agricultural needs. Curtailment of uses as far as possible was then the only logical remedy and immediately all deliveries of arsenic for the manufacture of glass were stopped. Economies were also enforced in the manu- facture of sheep dips and Paris green, and substitutes were used wherever possible. 2 The situation finally was relieved, and not only were the war needs met but also those of the insecticide manu- facturers. UNLICENSED CONTROL OVER COMMODITIES AT UETAIL. One of the two distinct handicaps to complete control over foods which the Food Administration had to face at the outset was that clause in the act which exempted dealers in foods at retail from li- cense control when their gross sales fell below $100,000 annually. 3 But so firmly did the Food Administrator believe that Congress was in error upon that point that the Food Administration set about im- mediately to control the retail trade by other methods. It seemed 1 Other margins were fixed for sales by dealers who sold in small quantities. An addi- tional three-fourths cent per pound was allowed for sales which were above 20,000 pounds but less than a carload ; 1 cent for sales ranging from 5,000 to 20,000 pounds ; 2 cents for quantities varying from 1 keg to 5.000 pounds ; and 3 cents for sales of less than 1 keg. 2 Special regulations issued by the Food Administration on Oct. 24, 1918, forbade the sale or delivery of white arsenic of certain strength to any person for the manufacture of sheep or cattle dips, and on Oct. 31 licensees were forbidden to use white arsenic in the manufacture of sheep or cattle dips without the special permission of the Food Ad- ministration. 3 The other handicap was the exemption of producers and producers' associations. GOVERNMENT CONTROL OVER PRICES. 135 patent to high officials in the administration of food control that if both ends of the channels of distribution were left uncontrolled (that is, the producing and the retailing ends) the consumer would after all have no protection against exorbitant charges by retailers. The law, they reasoned, by its specific exemption might even seem to encourage high prices. The class of retailers exempted by the act, moreover, embraced more than 95 per cent of the total number of re- tailers in the United States. Since the penalties for violations of the broad grants of power under section 4 seemed of doubtful char- acter, the Food Administration abandoned hope of enforcing its rules upon retailers directly, and worked out schemes to enforce them in- directly and despite the act. It soon came into a considerable control over the retail prices of foods through pressure by the wholesale li- censees, the organization of the retail trade, a check upon retail prices by consumers' reports, and the publication of " fair price '" lists. Indirect control through licensees. The most ingenious scheme by which the Food Administration brought the great body of unlicensed retailers under control was by a control of their supplies which came from the licensed wholesalers. 1 The Food Administration could grant or withdraw licenses at discretion and was in a position, there- fore, to prohibit licensees from selling food commodities to dealers who violated the food control act. It, with that in mind, set up the so-called rule 17 of the General License Regulations which became the basis of control over the retail trade. The rule provided that The licensee shall not knowingly sell any food commodities to any persons engaged in the business of selling such commodities who shall after this regu- lation goes into effect violate the provisions-pf the act of Congress approved Au- gust 10, 1917, by making any unreasonable rate or charge in selling or otherwise handling or dealing in such commodities, or by holding, contracting for, or ar- ranging for a quantity thereof in excess of the reasonable requirements of his business for use or sale by him for a reasonable time. The enforcement of rules for retailers, set up upon the basis of this authority, entailed such difficulties as giving notice to all licensees not to sell any supplies to a. particular retail violator. Re- tail dealers who were caught hoarding or exacting excessive profits, however, preferred generally to submit to penalties rather than allow the Food Administrator to notify licensees, cut off supplies, and put a ban upon their business. The directions which were issued for the guidance of retailers required that merchants sell certain commodities, including virtually the staple articles, at not more than a reasonable advance over the actual purchase price without 1 Dr. Albert N. Merritt, in his final report of the Distribution Division, ventures the opinion that this indirect method brought the unlicensed retailer under food control almost to the same extent as the licensee. 136 HISTORY OF PRICES DURING THE WAB. regard to the market or replacement value ;* not more than 30 days' supply of sugar or flour should be kept on hand, or more than 60 days' supply of certain other foods; not more than one-eighth barrel of flour should be sold to a person residing in a city, or more than one-quarter barrel to a person residing in a farming community ; not more than 2 to 5 pound quantities of sugar should be sold to persons in a city, or more than 5 to 10 pounds to those in a farming community; not more than 60 days' supply of other foods should be sold to any customer; wheat flour should not be sold unless the customer bought an equal amount of wheat substitutes; and that combination sales must not be made except that sugar may be sold in combination with corn meal, and wheat flour must not be sold except with wheat flour substitutes. 2 The retail dealer was sub- jected to the same cost basis rule as the jobber, and finally there were established for him maximum margins covering many of the more important licensed commodities. 3 The. organization of the retail trade. It is not odd, since the Food Administration felt so much need for cooperation from the whole- sale trade, that it also desired that of the retail trade. About the middle of October, 1917, therefore, a conference was held at Wash- ington w T ith representative retailers throughout the country. After that conference the representatives voluntarily drew up resolutions pledging the retail trade, whether licensed or unlicensed, to the rules of the Food Administration and forwarded 3,000,000 copies to the retailers through their jobbers. 4 Virtually every retailer, then, re- 1 That list included wheat flour, rye Hour, barley flour, oatmeal, rolled oats, corn grits, corn meal, hominy, corn flour, cornstar. staple foods at retail in this country with corresponding ones in Canada. There is given below a comparison of average retail prices for the week ended October 6, 1917, with those for the week ended September 28, 1918 (one year later), showing percentages of increase or decrease for the United States and Canada. This table has value in the com- parison which it affords both of rises and falls in price on the last of September, 1918, over quotations on that date a year previous within each country, and of the corresponding rises and falls between the two countries. The price for the weeks quoted seemed related closely enough to the prevailing price of that period to make this sampling process not wholly without significance. If the articles for which Canadian quotations are lacking be omitted from the American list also, the increase in total cost is 7.9 per cent in this country as against 12.3 per cent in Canada. A COMPARISON OF RETAIL, PRICES IN THE UNITED STATES AND CANADA. Commodities. Unit. United States. Canada. Week ended Increase (+) or decrease (). Week ended Increase (+) or decrease (). Oct. 6, 1917. Sept. 28, 1918. Abso- lute. Per cent. Oct. 6, 1917. Sept. 28, 1918. Abso- lute. Per cent. Wheat flour fj barrel. . Pound .do $0.869 .109 .068 .089 .109 .291 .462 .397 .368 .308 .116 .511 .324 .348 .482 .098 .419 .187 .049 .171 .168 .175 .175 .272 .227 .279 .616 .318 $0. 837 .099 .066 .084 .136 .381 .554 .509 .430 .336 .133 .619 .367 .368 .529 .102 .572 .170 .053 .173 .173 .187 .183 .308 .256 .347 .640 .284 -$0. 032 - .010 - .002 - .005 + .027 + .090 + .092 . + .112 + .062 + .028 + .017 + .108 + .043 + .020 + .047 + .004 + .153 - .017 + .004 + .002 + .005 + .012 + .008 + .036 + .029 + .068 + .024 - .034 - 3.7 - 9.2 - 2.9 - 5.6 + 24.8 +30.9 + 19.9 + 28.2 + 16.8 + 9.1 + 14.7 + 21.1 + 13.3 + 5.7 + 9.7 + 4.1 + 36.5 - 9.1 + 8.2 + 1.2 + 3.0 + 6.9 + 4.6 + 13.2 + 12.8 + 24.4 + 3.9 -10.7 $0.834 .072 ( ] ) .065 .092 .286 .451 %, .312 .105 .495 ( ^ .514 .106 % ;?, .141 .160 .189 .264 .180 0) .493 .405 $0. 815 .079 0) .080 .121 .347 .535 %, .369 .101 .525 i^07 .554 .119 0) .168 0) .183 .170 .202 .245 .330 .174 .609 .451 -$0. 019 + .007 0) + .015 + .029 + .061 + .084 As + .057 - .004 + .030 +% + .040 + .013 +<% /.w + .029 + .042 + .056 + .066 - .006 (') + .116 + .046 - 2.3 + 9.7 0) + 23.1 +31.5 +21.3 + 18.6 0) + 18.8 + 18.3 - 3.8 + 6.1 (0 + 1.7 + 7.8 + 12.3 flu, 0) + 15.1 +20.6 +26.3 +29.6 + 25.0 - 3.3 0) + 23.5 + 11.3 Wheat bread. Corn meal, bulk. . Oatmeal, bulk Rice ...do ...do Steak , round Bacon, sliced ...do ..do... Ham, sliced Pork chops ...do ...do.... Lard do Milk Quart Pound ...do do Butter . . Oleomargarine Cheese Eees Dozen Pound Peck Sugar Potatoes Beans, navy Pound do . Onions Prunes ...do Tomatoes No. 2can . Peas do Corn ...do Salmon No lean Fish Pound .... do. ... Hens Tea do Coffee ...do Aggregate 8.005 8.896 + .891 + 11.1 6.125 6.882 + .757 + 12.3 1 Commodities on which comparison is impracticable. GOVERNMENT CONTROL OVER PRICES. 145 ENFORCEMENT OF THE LICENSE CONTROL. The analyses that have gone before lay out the whole lot of food regulations, but do not tell systematically how those controls were enforced. The license system would have been a shell, and its re- quirements colorless, without practical and effective methods of en- forcement. Mention has been made already of the teeth which were put into the act itself. Those penalty clauses, beyond doubt, struck fear in the minds of would-be violators and inspired respect for the rules set up under the act generally. But, curiously, the resort to criminal proceedings, the seizure of hoarded commodities or the re- quisitioning of supplies and plants was relatively infrequent. The great bulk of violations, in points both of number and importance, were treated by the quasi judicial administrative agencies created under the act. The Enforcement Division. The Enforcement Division of the Food Administration revoked altogether 8,676 licenses, in addition to other cases handled directly by the Federal State food adminis- trators, from August 10, 1917, to December 30, 1918. 1 The common procedure with each of these administrative cases, after the facts of the alleged violation were found by a State food administrator and sent to the Enforcement Division at Washington, was to grant a hearing to the parties accused to determine whether there was a violation, and, if so, what fine should be imposed. After a decision was reached, an order was signed by the Food Administrator and forwarded to the State administrator for service upon the violator. Orders addressed to a licensee usually revoked or suspended the vio- lator's license, or, when the violator chose, sometimes accepted in lieu of such revocation a contribution to the Red Cross or refund of excess profits. Orders addressed against a nonlicensee were, necessarily, issued in a roundabout method by ordering licensees not to sell goods to the nonlicensee violator. Stop orders were often given to hold up the issuance of a license. The Food Administration did not at any time hesitate to turn the open light of publicity upon these offenders. Notice was given through the press and trade papers of violations by particular persons. City grocers chose frequently to make literally extortionate " contributions " rather than have the " black-list " placard of the Food Administration hung in their shop windows. There were, in addition to this very important phase of the enforcement work, four others which were even more of an extra- 1 A grouping of these revocations by kind shows that there were : Unlimited revocations, 249 ; limited revocations, 187 ; unlimited unfair orders, 58 ; limited unfair orders, 43 ; refunds and contributions, 4,123 ; temporary suspensions and minor penalties, 3,659 ; requi- sitions, etc., 65 ; stop orders, 210 ; cancellations, 10 ; criminal cases, 72 ; total, 8,676. 125547 20 10 146 HISTORY OF PRICES DURING THE WAR. judicial character but which were none the less effective the li- censee reports to the Food Administration, the inspection work, the work of the Federal food administrators in the various States, and the emphasis upon publicity. The licensee reports. A phase of the enforcement provisions which many officials in the administration of food control believed of especial potency was the general requirement of reports from the licensees. The regulations made each licensee liable to give under oath complete information on any or all aspects of his business upon request of the Food Administration, and to hold his records and properties open for inspection. 1 These licensee reports, made upon blanks submitted by the Food Administration, became effective checks against violations. The report forms generally contained questions asking the amount on hand at the beginning of the month, the amount sold during the month, the amount on hand at the end of the month,, and financial questions designed to show margins of profit. The system involved an infinite amount of tedious labor for the Food Administration and the licensee. There is need only to realize that the licensing system came to cover virtually all manu- facturers and distributors of foods and feeds at wholesale to appre- ciate the flood of reports that poured into the D Street office at Wash- ington. There were at the time of the signing of the armistice, moreover, 54 different kinds of periodical reports required by the Report Division alone. The Food Administration, after examining the applications for licenses, determined which report blanks each licensee should fill out. monthly or quarterly. A Checking- in Divi- sion kept strict record of all reports returned upon these blanks, and sent follow-up letters after the tardy reports. The reports, after being edited and having the violations encircled by a red-pencil mark, were referred to the various commodity chiefs or other proper responsible administrators. There were, at full tide, about 140,000 names upon the regular mailing lists, of which 105,000 were required to give monthly reports and 35,000 quarterly reports and which required the attention of nearly 500 clerks at the Food Administra- tion. If a calculation based upon the returns made during May, 1 Rule I of the General Regulations states: "It shall bo the duty of each license!- to give to such, representative as may be designated by the United States Food Administrator, whenever the said representative shall so require, any information concerning the condi- tions and management of the business of the licensee. Reports, when requested by said representative, shall be made on such blanks, to be furnished by the United States Food Administration, as the United States Food Administrator may designate, giving complete information regarding transactions in any commodities imported, manufactured, refined, packed, purchased, contracted for, received, sold, stored, shipped, or otherwise handled, distributed, or dealt with by the licensee, or on hand, in the possession or under the con- trol of the licensee, and any other information concerning the business of the licensee that such representative may require from time to time. Whenever tho said representative shall require it, the licensee shall furnish sucli information in writing under oath." GOVERISTME^T CONTROL OVER PRICES. 147 1918, is typical, the checked-in reports numbered about 85 per cent of the blanks mailed out. It became apparent by the summer of 1918 that the report system, though in most senses effective as such, had been allowed to grow until it was both annoying to the licensees and top-heavy to the ad- ministrators. The volume of work involved in checking out blanks, checking in reports, returning reports for corrections and explaining misunderstandings by correspondence, editing and tabulating over 100,000 reports having as high as TO questions each, literally snowed under the clerical staffs. The commodity chiefs, who were to make regulations from month to month by aid of those license reports, did not receive them with promptness. It was decided, rather than to double the clerical staff, to reduce the number of reports required. The number of periodical reports was cut by half before midsummer and to 28,000 in November. There were, then, at the signing of the armistice just 20 per cent as many reports made regularly as during the spring previous. The inspection work. With the gradual reduction in the licensee report system, a scheme of field inspection was instituted. 1 The impetus toward the proposed plan came largely from the success of such inspection as had been done, under the old report system, by inspectors in the service of the State organizations. Obviously the Food Administration could not hope to cover the country with paid inspectors. The prominent wholesale grocers, therefore, who dis- tributed a large share of foodstuffs and who were already organized, were called to Washington and enlisted upon a volunteer basis to act as field advisers, They were thoroughly instructed in the purposes, policies, and requirements of the Food Administration. The in- spection system was later reorganized on a State basis, and these field advisers were used as an educational staff available upon call of the Federal food administrators. The inspection service, though promising according to the view of the Enforcement Division, was not fully developed at the signing of the armistice. The Federal food administration in the States. The temptation is to study closely the policy-making office of the Food Administration at Washington, and thus fail to appreciate that the administration of the food policies was highly decentralized. The United States Food Administration, in the truer sense, took in a literal hierarchy of national, zone, State, district, county, and local units which were organized more or less formally and which were administering food policies. The Food Administration at Washington, through its States Administration Division, disseminated its policies and rulings 1 At a conference held Aug. 16, 1918, the Field Supervision Section was created with Mr. H. A. Sturges as chief, and with a small corps of inspectors. 148 HISTORY OF PRICES DURING THE WAR. directly through its ready contacts with a Federal food adminis- trator in each State, the District of Columbia, Hawaii, Porto Rico, and Alaska. These Federal food administrators were held responsi- ble for all food-control work within their respective States; they concerned themselves with the enforcement of the rules, propagated conservation policies, and administered distribution plans. Obvi- ously, then, the States Administration Division, acting as a clearing house between the policy-making office at Washington and the Fed- eral food administrators in the States, was obliged to keep the States informed on all actions taken at the central office. This task it did through " flying squadrons " going from State to State in person, zone meetings, 1 meetings for the State and local administrators, and litera- ture through the mails. The Federal food administrators and their 3,200 district and county administrators, though serving gratis, con- ducted locally the national campaigns to enroll 12,000,000 housewives as members of the Food Administration, to use more potatoes, to advertise conservation work for world relief, and to use " no wheat." Each Federal food administrator had on his staff an educational director, a home-economics director, a State merchant representative, and a library director. The most important specific controls, per- haps, which were administered in a large way by the Federal food administrators were those pertaining to wheat and flour, bakers, meat, sugar, perishables, ice, eggs, price publication, and public eating places. The emphasis upon publicity. It ought again be mentioned, by way simply of emphasis, that the Food Administration gave wide publicity to all of its policies and depended upon the patriotism of the people to enforce them. No housewife, grocer, manufacturer, or miller was left in ignorance of the war measures upon which it wanted vigorous cooperation, and the social organizations of all forms and local papers were alert to denounce violations. The effectiveness of this phase of the control enforcement was no less potent because not a kind which permits of exact analysis. THE CENTRALIZATION OF GOVERNMENT AND ALLIED FOOD PURCHASES. The problem before the Food Administration was. in the last analysis, to anticipate and prevent a world food shortage during the war. The scope of its task and rising prices soon made necessary the setting up of affiliated boards to help control the food markets more rigidly. These extra efforts in food regulation were inevitable steps 1 For administrative purposes the States were divided into 11 zones, numbered from 1 to 11, with meetings at the following points, respectively : Boston, Philadelphia, New York, Atlanta, Chicago, Vicksburg, Kansas City, Fargo, Denver, Boise, and San Francisco. GOVERNMENT CONTROL OVER PRICES. 149 forced by the national and international aspects of the food situation and the desire to assure reasonable prices for Government and allied purchases. The food requirements of the Government and its Allies had ab- sorbed the lion's share of many staples, and, especially during the spring of 1917, opened the way to unrestrained foreign buying and rampant speculation. There had been no control of commodity prices in this country and extraordinary rises came thick and fast. The " all commodities " index number, which had remained near a prewar level throughout 1914 and 1915, shot from 123 to 189 during the year ending June, 1917, and the food group jumped from 111 to 167 during that same year. 1 The unregulated bidding, which con- tributed to the rise within the food group, was later controlled in part by the Food Administration Grain Corporation, the International Sugar Committee, and the Sugar Equalization Board which are men- tioned elsewhere, and by the Division of Coordination of Purchase and the Food Purchase Board which are discussed here. Division of coordination of purchase. The Division of Coordina- tion of Purchase, which came later to supervise Government and allied purchases of foodstuffs aggregating $200,000,000 per month and over, was created as an advisory unit through which all war food purchases might clear. 2 An arrangement was made between the Government and the Allies that all allied food requirements (except grains, flour, and meal) should be submitted to a so-called allied pro- visions export commission, which in turn was to give notice of those requirements to the Food Administration. 3 The Division of Coordi- nation of Purchase, upon receipt of that notice, advised what method of purchase should be adopted in order least to disturb the market. These purchases were either allocated to the industry in a manner recommended by the Food Administration, given to the purchaser for approval after securing bids, or allowed to be made by the purchaser direct in the open market. The total value of purchases cleared igee " Summary of History of Prices during the War," by Wesley C. Mitchell. (W. I. B. Price Bulletin No. 1.) 2 Mr. Hoover, in his formal announcement of the creation of the Division of Coordina- tion of Purchase on Oct. 24, 1917, stated that its purpose was " to coordinate the purchases of the Allies and the Food Administration of such important food supplies as those mentioned in the President's proclamation of Oct. 8, 1917, and to cooperate with the Army, Navy, and other Government departments in an endeavor to coordinate so far as practicable their purchases of such food supplies." The Food Section of the War In- dustries Board was transferred to the Food Administration a few days prior to the above announcement, on Oct. 15, 1917, and became part of the new Division of Coordination of Purchase. 3 See letters dated Nov. 21, 1917, and sent by Mr. Hoover to Allied provisions export commission, American Red Cross, Commission for Relief in Belgium, financial attache 1 of the Russian embassy, the War Trade Board, and the Traffic executive, outlining for them the plan of the Division of Coordination of Purchase. 150 HISTORY OF PRICES DURING THE WAR, i..: rough the Division of Coordination of Purchase amounted to enor- mous figures, 1 Food Purchase Board. Very shortly after the organization of the Division of Coordination of Purchase, there was created the Food Purchase Board with an especial design to bring a like coordination to all food purchases for the Army and Navy. 2 Its function generally was to settle what commodities were to be placed in the category of allocated purchases, to define general policies in method of purchase, to secure costs from the Federal Trade Commission, and to recom- mend prices to the Army and Navy. 3 Kepresentation was given on that board to the Secretary of War, the Secretary of the Navy, the Federal Trade Commission, and the United States Food Administra- tion. These branches of the Government submitted to the Food Purchase Board their requirements for licensed staple commodities and that board determined whether the orders should be allocated to the trade. If a plan of allocation was advised by the Food Purchase Board, the Food Administration, with whom each purchaser filed a statement of the amounts needed, distributed the allotments on a pro rata basis throughout the country. The department for whom the allotment was made inspected the goods and, if the goods were satis- factory, completed the purchase. 4 The Food Administration record- mended prices to the Army and Navy upon the basis of cost inves- tigations made by the Federal Trade Commission. Other agencies than the War and Navy availed themselves to an extent of the in- struments of the Food Purchase Board. The whole scheme for the centralization of Government and allied food purchases whether in the Food Administration Grain Cor- poration, the International Sugar Committee, the Sugar Equalization Board, or the more comprehensive Division of Coordination of Purchase, and Food Purchase Board held within its grasp, though it did not always exercise, one of the most effective of all war instru- ments for general food control. 1 The Division of Coordination of Purchase during the 8 months ending December, 1918, cleared altogether food purchases amounting to $1,069,370,419. Of that total, the Allies purchased $715,000,000 ; the Army, Navy, and Marine Corps, $206,000,000 ; and the Com- mission for Relief in Belgium, Red Cross, Salvation Army, and Y. M. C. A. the remainder. There follows a listing of those purchases by kind of commodities : Miscellaneous $36, 534, 9SO Oils 54, 279, 440 Sugar 29, 951, 860 Canned goods $111, 447, 374 Dairy products 30, 113, 288 Dried fruits and vegetables- 49, 618, 731 Grains and grain products. 191, 053, 158 Meat and hog products 566, 371, 588 Total 1, 069, 370, 419 2 Created about Nov. 21, 1917, at the suggestion of the Food Administrator ;:n:1 governmental authorization on May 8, 1918, by presidential proclamation. 8 These data appear in the minutes of the first meeting of the board held Dec. 11, 1017. * Second annual report of U. S. Food Administration. 3 . THE FUEL ADMINISTRATION. Our war experience with regulation did not bring forth a single instance of price fixing, if foods can be counted as controlled though not fixed, which touched so many people as the coal prices modified or fixed by the United States Fuel Administration. This control, like that over food prices and unlike most of the other price controls, was administered primarily for the protection of the public at large. The Fuel Administration, in so far, may be thought simi- lar to the Food Administration, but unlike the price-fixing com- mittee. Beyond this point, however, the methods of the Fuel Ad- ministration differ substantially from those even of the Food Ad- ministration. The points of interest in a study of war-time control over fuel are : the problem that prompted fuel regulation; the early and informal control that was begun by the coal production committee under the Council of National Defense; the kind of control over coal that was made possible by the passage of the food and fuel act in 1917; the original prices fixed at the mine by the President for bituminous and then for anthracite coal; the modifications made from time to time in these prices by the Fuel Administrator; the steps that were taken to control prices asked by middlemen and those asked by retailers ; and, finally, the coal costs that came later to be made the basis of all price fixing. It is of importance, too, to know how con- trol was exercised over coke, and to what extent, if any, the Govern- ment put its hand upon the prices of petroleum. (i) THE WAR-TIME RISE IN COAL PRICES. The conditions of production which attach to soft or bituminous coal used by industry and comprising nearly 85 per cent of our total output of coal, and those which attach to hard or anthracite coal used by households make coal prices ordinarily an anomaly in price phenomenon. The abundance of supply and the large numbers of mines, given adequate transportation facilities, labor, and machinery, result usually in the meeting of all demands by the industry at com- petitive prices -slightly above the cost of production. 1 Coal prices, then, under normal peace-time conditions, are not as variable in their 1 See " Prices of Coal and Coke," by C. E. Leslicr, W. I. B. Price Bulletin No. 35. 151 152 HISTORY OF PRICES DURING THE WAR. fluctuations as those of pig iron, wheat, or cotton. 1 The prices of bituminous coal, which relate to the general ebb and flow of in- dustrial activities, are more sensitive to the market than those of anthracite coal, which relate more especially to fireside demands. The price of bituminous coal, which was quoted at $0.0752 per bushel at Pittsburgh in 1900, did not until 1916 vary more than 19 per cent in any month above that level, while anthracite coal (stove) which was quoted at $4.3224 per ton in 1901, did not vary more than 15 per cent. 2 Coal prices ordinarily are stable prices, and large de- viations are serious in their effects on industry or the household. There was reason for concern, then, as nearly every industrial plant and householder felt when coal prices suddenly started upward in the latter part of 1916 and kept rising. They had throughout 1914 and 1915 clung safely near their prewar level when, indeed, they had not gone below it. But a weighted average of bituminous coal prices, made from prices taken in all districts of the United States, shows that the quoted general price of that coal leaped in July, 1916, from its prewar level of $1.30 per net ton to $3.46 by December following. 3 Likewise a weighted average of anthracite coal prices, made from our total egg, stove, chestnut, pea, and steam production, rose from $2.92 in May, 1916, to $4.11 by May, 1917. These extraordinary rises in prices are without precedent in coal history since 1890, if ever. The imminent and widespread concern of manufacturers and house- holders, as they faced high prices in the prosperous year 1917, was not alone that coal had soared to heights unknown, but that coal at any price was uncomfortably scarce. The war-time production orders, together w r ith the excessively cold winter, were making heavier demands upon the coal stocks than ever before and threat- ened a serious coal shortage. Curiously, when it was most neces- sary to carry coal from the mines to central distributing points, the railroad system became so heavily loaded that congestion set in and thousands of tons of coal were left standing at the mines for lack of empty cars and transportation facilities. This unusual situation upset the coal market completely for the first time in years and dis- turbed beyond immediate recovery the nice balance between the pro- duction, the cost, and the market price for coal. There is listed below a series of data by which may be compared month by month from January, 1913, to December, 1918, the total 1 The stability of coal prices is due in part to the fact, that the wages of labor, which do not fluctuate greatly, constitute nearly 80 per cent of the cost of coal production. 2 Wholesale Prices 1890 to 1916, by Bureau of Labor Statistics, Bulletin No. 226. 3 In Ohio and Pennsylvania the increase was the greatest, the highest spot price -recorded being more than 400 per cent above the prewar Jevel, with the smokeless coals of West Virginia and the high-grade coal from the Georges Creek district of Mary- land next approaching in extent of rise in price. GOVERNMENT CONTROL OVER PRICES. 153 production of bituminous coal in this country, 1 and the weighted market prices at which it sold. 2 A ready comparison of the varia- tion in production and prices has been facilitated by the reduction of each actual figure to a relative figure, using the respective prewar figures (average from July 1, 1913, to June 30, 1914) as a base equal to 100 in each case. The figures have been extended beyond the time when control set in for reference later when an inquiry will be made into the effectiveness of that control. PRODUCTION OF BITUMINOUS COAL IN THE UNITED STATES. ACTUAL PRODUCTION (SHORT TONS). Month. 1913 1914 1915 1916 1917 1918 January February ... 4$, 276, 273 37. 056. 985 40,187,739 35,472,535 37, 190. 800 29, 321, 443 48, 596, 094 45, 186, 515 47,967,354 41,352,711 42,607,000 44,385,000 March 37 535 421 45 454 707 31 800 830 43 821 604 47 868 652 48,631,000 April. . . 34,168,980 23,609,695 29, 968, 240 33,628,164 41,854,320 46,591,000 May 37 204 880 28 551 219 30 938 134 38 803 759 47 086 452 50 927 000 June 37' 40 1' 953 31 '411 952 33' 956' 818 37 741 972 46' 824' 646 51 758'000 3 ulv 38,857,653 34, 305, 418 35, 573, 809 38, 113, 105 46,291,572 55, 587) 000 August 41 589, 085 37 751,578 38,160 995 *2 695 735 47,372 226 55,732 000 September 41 423 798 39 018 756 40 963 780 42 098 831 45 107 956 51 757 009 October 46, 164, 649 37, 685, 182 44, 197, 763 44, 807, 205 48, 337, 726 52,886,000 November. . . 43 233,145 33 392 681 44 736 760 44 927 817 47 689,801 44 387 000 December 41 519 477 35 862 508 45 814 754 44 097 744 44 037 147 40 635 000 Year 478, 435, 297 422 703 970 442 624 426 502 518 545 551 790 563 585,883 000 WEIGHTED AVERAGE "SPOT' PRICES OF ALL BITUMINOUS COAL IN THE UNITED STATES. ACTUAL PRICE. . PER NET TON. Month. 1913 1914 1915 1916 1917 1918 January $1 47 $1 27 $1 20 $1 54 |3 73 $2 60 February . . . 1 .29 1.24 .19 .44 3.75 2.64 March.. . 1.25 1.24 17 33 3 53 2 67 Anril 1 24 1 24 16 32 3 00 2 71 May... .23 1.24 .16 .29 3.72 2.75 June . 23 1 21 15 33 3 77 2 66 July .25 1.20 .14 .30 2.98 2.66 .A UfJUSt . ... 28 1 21 15 .35 3.03 2.67 September 29 1 20 18 56 2 12 2.67 October. ... . 1.33 1 21 .20 2.11 2.15 2.67 November 1 35 1 19 23 3 36 2 58 2.67 Dec-ember 1 28 1 20 36 3 46 2 59 2 67 Year. 1 29 1 22 i 19 78 3 08 2.67 1 The production figures represent those adopted officially by the United States Geological Survey and the United States Fuel Administration for the years given. 2 The weighted average market prices for bituminous coal, representing a grand average of prices from all districts of the United States, were compiled especially by C. E. Lesher, of the Fuel Administration, from the Coal Age. The mean of the high and low weekly quotations, where necessary, were reduced to a net ton basis and to f. o. b. mines by deducting the freight rate in effect at the particular time, and re- duced then to monthly prices by taking simple averages. A single quotation was then obtained for each coal for each month by averaging the quotation for prepared sizes, run-of-mine, and slack or screenings in accordance with the proportion of each size produced in each field in 1917. The final grand weighted average, therefore, representing an examination of 35,000 quotations, shows the " spot " prices for 15 bituminous coals. It should be borne in mind that the contract prices, at which a bulk of coal sold, did not rise as high as the " spot " prices quoted above nor did the smaller production of anthracite coal undergo such phenomenal rises as the bituminous coal quoted above. 154 HISTORY OF PRICES DURING THE WAR. PRODUCTION OF BITUMINOUS COAL IN THE UNITED RELATIVE PRODUCTION. Month. 1913 1914 1915 1916 1917 191S January 111 105 98 122 126 112 February . . . 97 93 77 118 108 116 March 98 119 83 115 126 128 April.. 90 62 79 88 110 122 May. 98 81 102 124 134 June 98 82 89 99 123 136 July. . 102 90 93 100 121 146 August 109 99 100 112 124 140 September 109 102 107 110 118 136 October 121 99 116 118 127 139 November 113 88 117 118 125 116 December. 109 94 120 116 116 107 Year . . 105 92 97 110 121 128 WEIGHTED AVERAGE 'SPOT" PRICES OF ALrL BITUMINOUS COAL IN THE UNITED STATES. RELATIVE PRICES. Month. 1913 1914 1915 1916 1917 191- Januarv 116 100 94 121 294 203 February 102 98 94 113 295 203 March 98 93 92 105 278 210 April 93 93 91 104 236 213 May 97 98 91 102 293 217 June. 97 95 91 105 297 209 July' 98 94 90 102 235 209 August 101 95 91 106 239 210 September 102 94 93 123 167 210 October.. 105 95 94 166 169 210 November 106 94 97 265 203 210 December 101 94 107 272 204 210 Year 102 96 94 140 243 210 The market prices of coal in this country, far from maintaining their usual relation to production, took a spurt which landed them at unprecedented heights, and alarmed the Government at Washing- ton early in 1917. It was apparent that the Government sooner or later must assume some sort of control over coal prices with a view quite as much to stimulating production as of protecting consumers against a further rise. (2) THE COAL PRODUCTION COMMITTEE. The intermediate step leading to the final Government control over coal, as was wont during war time, was taken by the Council of National Defense through the voluntary organization of a trade committee. The council, impressed with the necessity for some form of action to stimulate production, appointed a committee on coal production on April 27, 1917. 1 This committee believed at the out- set that the increased domestic needs and those of the Allies would 1 Mr. Francis S. Peabody, a large dealer in coal, was made chairman of this committee, composed of various men of the coal industry in cooperation with mine workers, coke producers, distributors, consumers, transportation agencies, the Geological Survey, the Bureau of Mines, and the Department of Labor. GOVERNMENT CONTROL OVER PRICES. 155 push the 1917 requirements far in excess even of the bumper produc- tion of 1916. 1 With the assistance, accordingly, of the Bureau of Mines and the Geological Survey, a survey of the coal situation was made which revealed that the limiting factors in meeting the coal requirements were the shortage of mine workers and the inadequacy / of distributing facilities. 2 The potential capacity was, of course, in. excess of the maximum requirements. The early war-time control of fuel later taken over by the Fuel Administration can not be un- derstood without taking serious account of the 1,700,000- ton Navy order placed by the early coal production committee, the agreement made with the industry upon the Peabody-Lane prices, and their immediate repudiation by the Secretary of War. THE 1,700,000-Tox XAVY ORDER. The Navy Department, unable to secure bids for supplying the coal needed by its battleships, called upon the committee on coal production to negotiate a satisfactory purchase. The committee, early in June, 1917. called the coal producers to Washington for con- ference. The producers, already well loaded with orders, promised to deliver the full 1,700,000 tons required at a suggested price of $2.95 per ton. Secretary of Navy Daniels, regarding that price as excessive, gave orders June 19, or thereabouts, under the authority of the naval act, that coal producers prepare to furnish the required tonnage at an allowance of $2.335 per gross ton f. o. b. mines. The final price, he announced, would be determined later when the Federal Trade Commission had completed its inquiry into costs, and might be adjusted to a point below or in excess of that price. 3 The firmness which characterized this mandatory order, and its insistence upon an initial price far below the market or even that asked by the pro- ducers, made the coal dealers realize that regulation of some form was within sight. THE PEABODY-LANE PEICES. The coal-production committee, fully aware of the necessity for fostering the increased production that had already set in, called about 400 of the coal producers again to Washington during the last week of June to discuss methods of reducing the prices of coal to the Government and to the public. These producers, at a three-day conference held in the new Interior Building, met with the commit- 1 The production of 502,518,545 tons of bituminous coal in 1916, though exceeded both in 1917 and 1918, was a high record for the industry at the time the Government faced the necessity for increased production early in 1917. 2 Report of F. S. Peabody made to the Council of National Defense, and printed in its first annual report, p. 33. 3 See the Peabody report referred to above, and an announcement made by the Navy Department printed in the Official Bulletin for June 19, 1917. 156 HISTORY OF PRICES DURING THE WAR. toe and conferred with Secretary of the Interior Lane, Secretary of the Navy Daniels, John T. Fort, of the Federal Trade Commission, which was investigating coal costs, and other officials. The outcome of this conference, at which price fixing was freely discussed and tentative maximum prices for coal agreed upon, is peculiarly sig- nificant in the light of later coal control. Secretary Lane, strongly backing the action of the coal-production committee, was especially instrumental in finally drawing to a head on June 28 a voluntary agreement by the bituminous producers to set a maximum price of $3.50 per ton for domestic lump, egg, and nut coal, and a maximum of $3 per ton for run-of-mine coal to be effective on July I. 1 These agreed prices, prior to any actual price fixing by the Government, were distinctly lower than the quoted prices for various districts. Indeed, the weighted average price of all bituminous coal for June was as high as $3.77 per ton. Not only did the coal-production committee agree with the operators at that early time upon tentative maximum prices for coal but likewise upon jobber, broker, and retailer commissions. These latter dealers, it was determined, would be allowed to charge no more than one commission, and that not in excess of 25 cents per ton. It is note- worthy that the producers, although informally agreeing upon the above tentative prices, appointed committees and formally au- thorized them and the Government to fix further prices. 2 1 Secretary Franklin K. Lane in a letter to F. S. Peabody dated June 28, 1917, said : " I feel that the present extremely high prices on coal require immediate action by the coal operators, and, therefore, would urge upon you that they should be reduced at once and maximum prices fixed which would apply to sales on and after July 1, 1917, and continue until such time as the investigation which you propose into costs and conditions shall warrant a reduction or increase. These prices should not be used to affect present contracts or apply to export or foreign trade. In other words, the people of the United States should have, as I urged upon the operators the other day, immediate relief and knowledge of their disposition to make a reasonable price irrespective of the possibilities of obtaining higher prices. This would be regarded by the people as meeting the situ- ation promptly and wisely if the prices materially cut those which exist.*' 2 A report of the proceedings of this meeting, as printed in the Commercial and Financial Chronicle for June 30, 1917, shows that the producers resolved that " these committees report forthwith to the Secretary of the Interior, the Federal Trade Com- mission, and the committee on coal production of the Council of National Defense, costs and conditions surrounding the production and distribution of coal in each district and that these committees are authorized, in their discretion, to give assent to such maxi- mum prices for coal f. o. b. cars at mines in the various districts as may be named by the Secretary of the Interior, the Federal Trade Commission, and the committee on coal production of the Council of National Defense. " This convention by resolution heretofore adopted having requested the Secretary of the Interior, the Federal Trade Commission, and the committee on coal production to fix a fair and reasonable price at which the several operators in the several coal districts of the United States shall sell coal, do hereby further authorize said Government repre- sentatives, so named in said resolution, to forthwith issue a statement fixing a tentative maximum price, which, in their judgment, is fair and reasonable as applied to the several coal districts, at which coal shall be sold from and after the 1st day of July next and until the accurate costs have been ascertained and a fair and reasonable price based thereon fixed by said Government agencies designated under said resolution." GOVERNMENT CONTROL OVER PRICES. 157 A full account of this historic coal meeting with the bituminous producers and the Peabody-Lane prices that were established, as authorized by the Department of the Interior follows : 1 As a result of the conference between the mine operators, the Secretary of the Interior, Federal Trade Commissioner Fort, Chairman Peabody, and the committee on coal production of the Council of National Defense, the following reductions were made to go into effect July 1 next in the prices of coal. This, according to the statement of Director George Otis Smith, of the Geological Survey of the Interior Department, will effect a reduction to the consumers east of the Mississippi River of $15,000,000 a month, based on the output of free coal in May of this year. These prices are maximum prices per ton of 2,000 pounds aboard the cars at mine pending further investigation. These prices do not affect in any way contracts in existence or sales of coal for foreign or export trade. The operators tendered to the Government a reduction from these reduced prices of 50 cents per ton for coal that the Government may need. No action was taken upon anthracite prices, because of the fact that these prices had already been acted upon by the Federal Trade Commission. Twenty-five cents per net ton was fixed as the maximum price for coal jobbers' commission, with only one commission, no matter how many jobbers' hands the coal may pass through. On account of an inadequate representation of operators west of the Missis- sippi River, no maximum prices were fixed for coal from those districts. A supplementary statement will be issued within a few days covering prices on coal produced in those districts. The action taken at this conference brings about the following results : Pres- ent prices on bituminous coal mined in Pennsylvania have ranged frtun $4.75 to $6. Under the ruling the price is reduced to $3 for mine run and $3.50 for domestic lump, egg, and nut. The present range of prices in West Virginia is from $4.50 to $6; price reduced to $3 for mine run and $3.50 for domestic lump, egg, and nut. The range of prices for Ohio coal has been from $4.50 to $5 ; prices reduced to : No. 8 district, the thick vein Hocking and Cambridge districts, $3 for mine run and $3.50 for domestic lump, egg, and nut ; thin vein Hocking, Pomeroy, Cooks- ville, Coshocton, Columbiana County, Tuscarawas County, Amsterdam-Bergholz district, $3.25 for mine run and $3.50 for domestic lump, egg, and nut; the Massilon and Palmyra districts, and Jackson County, $3.50 for all grades of coal. The prevailing prices in Alabama have been from $5.50 to $5.75 ; prices reduced to: Cahaba and Black Creek, $4; Prat, Jaeger, and Corona, $3.50; Big Seam, $3 for all grades. The prevailing prices for coal mined in Maryland have been from $5.75 to $5 ; reduced prices will be $3 for mine run and $3.50 for domestic lump, egg, and nut. The prevailing prices on coal mined in Virginia have been $4.50 to $5 ; reduced price, $3 for mine run and $3.50 for lump, egg, and nut. The prevailing prices on coal mined in Kentucky have been from $4 to $4.50 ; reduced price, $3 for mine fun and $3.50 for the domestic sizes. The prevailing prices on coal mined in Illinois and Indiana have been from $3.50 to $4; reduced price, $2.75 for mine run and steam sizes and $3.50 for 1 Issued June 28, 1917, by the Secretary of the Department of Interior and printed in full in the coal hearings before the subcommittee of the Senate Committee on Manufac- tures, pursuant to Senate resolution 163, Sixty-fifth Congress, second session. 158 HISTORY OF PRICES DURING THE WAR. screened domestic sizes, 50 cents per ton above these prices in the long-wall Held of northern Illinois, Assumption, and Murphreesboro. The prevailing prices on coal mined in Tennessee have been from $4.50 to $5 ; reduced price, $3.50 for all sizes. Secretary Lane, with the coal production committee, highly pleased at the outcome, sent the coal operators home happy by a closing ad- dress, declaring "this is a very novel proceeding. I think I am within the fact when I say that no such hearing or gathering as this has ever been held in the United States before, or perhaps in the world.' 5 l THEIR REPUDIATION BY SECRETARY BAKER. Scarcely had the Peabody-Lane prices been agreed upon and the operators had reached their homes then the agreement was flatly de- nounced and repudiated by Secretary of War Baker. The Secre- tary of War, who was president of the Council of National Defense and therefore in authority over the Peabody coal production com- mittee, wrote to the director of the council on June 30, characteriz- ing the whole proceeding of the coal meeting as misleading and dis- claiming any authority for price fixing. 2 This show of seeming 1 Senate hearings referred to above. 2 The letter written to W. S. Gifford, Director of the Council of National Defense, by Newton D. Baker, its president, on June 30, 1917, follows in full : " My attention has been called through the newspapers to the action reported to have been taken at Washington, D. C., during the past week by, the so-called committee on coal production of the Council of National Defense, in cooperation with certain coal producers and representatives of coal-mining enterprises, with regard to the price of bituminous and anthracite coal. " The facts seem to be that the coal production committee invited to Washington various coal operators and arranged conferences between them, members of the coal production committee, and members of the Federal Trade Commission, leading to the adoption of reso- lutions in favor of an early and accurate determination of the costs involved in the pro- duction of bituminous and anthracite coal, as a basis for some future action by some offi- cial agency of the Government in fixing fair and just prices for these products, should any such agency be given power to do so. Pending such an ascertainment of costs this inert ing seems to have adopted a resolution whereby the operators present agreed to sell l-ituniinous coal at a price not higher than $3 per ton, and that this obligation should re main in force until some such action had been taken, by an authorized governmental agency. " The color which has been given to this meeting and this resolution in the newspaper.-. may well mislead the public into believing that the Council of National Defense has either undertaken itself to fix the price of coal, or to sanction its being fixed by the coal pro- duction committee, or that cornniitttee in conjunction with the coal operators. I, there- fore, as president of the Council of National Defense, write to say that the Council of National Defense has no legal power, and claims no legal power, either to fix the price of coal, or to fix a maximum price for coal or any other product. The coal production com- mittee is a subordinate committee of the Council of National Defense, purely advisory ia its character, formed for the purpose of advising the council as to steps which might bo recommended leading to a stimulation of production and distribution of coal. No power has been even attempted to be delegated to it to consider or deal with the question of price, and any action taken by that committee, or sanctioned by that committee, dealing with price, either fixed or maximum for coal, is clearly beyond the legal power of the coal production committee and of the Council of National Defense from which the com- mittee derives whatever authority it has. "As you are aware, the Federal Trade Commission has been directed by the President to ascertain for his information the costs involved in coal production. I am to some GOVERNMENT CONTROL OVER PRICES. 159 dissension within the Government threw chaos into the ranks of the producers and uncertainty whether the agreement was or was not longer binding upon them or upon the Government. 1 The whole affair, believed by Secretary Baker to be a dangerous precedent and destined to forestall a firmer control by the Government, produced a situation of utter confusion. 2 It appears that the failure of officials to agree among themselves upon an immediate relief to the coal situation, and the threatening shortage, provoked rather serious discussion in several States dur- ing the summer. Ohio, Indiana, Illinois, Wisconsin, and others, through their State councils of national defense, began to plan in- dependent action. Scores of individual letters from various sections showed clearly that the rising prices and the coal shortage were touching the people to the quick. 3 The Illinois Council of National extent familiar with the progress made by the commission. The information I have from that and other sources, I think, justified me in believing that the price of $3 suggested, or agreed on, as a maximum, is an exorbitant, unjust, and; oppressive price. " The fact that these conferences were attended by members of the Federal Trade Com- mission, and by members of the Council of National Defense, of course adds nothing to their legal powers, and I am sure that none of my associates in the council will dissont from the view that I have herein expressed, both on the limitation upon the powers of the council and the coal production committee, and the effect of the action alleged to have been taken. "I write this for the information of the coal production committee, and for the guidance of all other subcommittees of the council." 1 An especially lucid definition of the general price function* of the Council of National Defense as he saw them and as provoked by the coal meeting was made by Newton D. Baker in a letter to Director W. S. Gifford on July 13, 1917. 2 Francis S. Peabody, after the repudiation of the coal prices by Secretary Baker, wrote Director Gifford the following letter, in part, on July 13, 1917 : " The letter of the Secretary of War of June 30, criticizing the tentative maximum prices established for bituminous coal, and the action of the committee on coal produc- tion, has created a serious condition in the industry. Unless some definite announcement is made at once, by the Council of National Defense, which will remove existing uncertain-, ties and promptly reestablish the active production and distribution of coal, hardship and suffering will result this winter. " The Secretary's letter carrying such, weight, as it naturally would, with the public, and characterizing the tentative prices as it does, has produced in the minds of a great number of consumers the expectation that by deferring their purchases they would obtain their supplies at figures below those heretofore named. The natural and inevitable result of these uncertainties is that the buying of bituminous coal for storage purposes has prac- tically ceased, and normal current stocking is gravely threatened. * * * " The sentiment of the operators, as expressed in the convention, had a marked effect on prices, even before any definite action had been taken, and before the convention ad- journed prevailing abnormally high prices had substantially disappeared. With deference to the opinion of Secretary Baker, as expressed in his letter, I still adhere to the opinion that the action of this convention which resulted in the establishment of tentative maxi- mum prices, pending the conclusion of the investigation of costs of production being made by the Federal Trade Commission, was not only wisely taken but was absolutely necessary to stimulate production, stabilize market conditions, and secure equitable distri- bution of coal to the people at fair and reasonable prices." 3 The following letter from CoL A. M. Shook, dated June 16, 1917, and showing the disquiet in Tennessee over the coal situation, was typical of others : V In this particular section the question of fuel is to-day the most vital one. The abnormal demand for coal is such that mine operators are enabled to sell their output at prices varying from 100 to 300 per cent above prevailing prices of one year ago. I see no way to remedy these conditions except by Federal legislation. As long as the consumer will agree to pay from $3 to $5 per ton for coal that was selling a year ago 160 HISTORY OF PRICES DURING THE WAR. Defense, indeed, went so far as to discuss seizure of the mines by the State, independent of the National Government. 1 The pressure of the State councils of national defense from the northern Middle States Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minne- sota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin which was exerted upon the national council at a meet- ing in Chicago was a considerable factor in urging the Government to action. (3) THE FOOD AND FUEL ACT. The alarm at the rising prices for coal, and the distressing status of its distribution prompted Senator Pomerene to urge, against at- tack from several sides in the Congress, a rider to the pending Lever bill, permitting the President to fix coal prices. The President, too, took a firm personal interest in the coal problem, and finally, on August 10, 1917, the food control act was passed with the Pomerene amendment and is now often called the food and control act. 2 The Fuel Administration was created by the President under the authority given him by this act. To no other price-fixing agency at Washington were there given such definite legal powers to fix prices or such sharp instruments for their enforcement. THE POWER TO Fix COAL AND COKE PRICES. The food and fuel act, without any ado, gave authority to the President, whenever in his judgment it was necessary for the efficient prosecution of the war, " to fix the price of coal and coke, wherever and whenever sold, either by producer or dealer, to establish rules for the regulation of and to regulate the method of production, sale, shipment, distribution, apportionment, or storage thereof among dealers and consumers, domestic or foreign." at $1.50 per ton, the operator will not refuse to accept it. As a rule, here, the operator is the only beneficiary from these abnormal prices. Labor has not been materially ad- vanced. Freight rates are practically the same as they were a year ago. The con- sumer pays the price and the operator reaps the benefit. These conditions will con- tinue unless legislative authority is placed somewhere to control these abnormal con- ditions." 1 The committee on law and legislation of the State Council of Defense of Illinois, highly agitated by their failure to find relief otherwise, on Aug. 7, 1917, recommended steps no less drastic than the following : 1. Seizure by the State, and operation by it during the period of the war, of the coal mines in this State. 2. Call an immediate meeting of representatives of the State councils of the neigh- boring coal-producing States so that an adequate and uniform measure of relief can be at once contemporaneously adopted and enforced in all these States. 3. Either separately or in conjunction with the State councils of the neighboring coal- producing States, take immediate steps to bring about the adoption of a Federal law which will give full and sweeping Federal powers of control over prices- and distribution to an administrative body possessing the machinery to render complete and instant relief. 2 The so-called Pomerene amendment was written into the food control act as sec. 25. (Public Documents, No. 41, 65th Cong.) GOVERNMENT CONTROL, OVER PRICES. 161 ENFORCEMENT PROVISIONS. A no less unusual feature of the food and fuel control act than the breadth of its delegated powers was the stringency of its enforce- ment provisions. The fuel section of the act not only allowed a fine of $5,000 or two years of imprisonment as a punishment to violators, but gave the President power to requisition and take over plants virtually at his own will. The law declared, in part, " that if, in the opinion of the President, any such producer or dealer fails or neglects to conform to such prices or regulations, or to conduct his business efficiently under the regulations and control of the President as afore- said, or conducts it in a manner prejudicial to the public interest, then the President is hereby authorized and empowered in every such case to requisition and take over the plant, business, and all appur- tenances thereof belonging to such producer or dealer as a going concern, and to operate or cause the same to be operated in such manner and through such agency as he may direct during the period of the war or for such part of said time as in his judgment may be necessary." (4) THE KINDS OF FUEL CONTROL. Apparently the persuasions of the chairman of the Federal Trade Commission had influenced Senator Pomerene to urge his coal amendment to the so-called Lever bill in the hope that coal control, when begun by the Government, would be delegated to the Federal Trade Commission. The clauses of the act itself make frequent authorizations for coal control, referring over and again to the Fed- eral Trade Commission and making no mention of any other body in particular. 1 But the President, who had started the Federal Trade Commission long since upon an inquiry into coal costs and allowed it to remain in semiofficial control for a fortnight after the passage of the act, finally set up an independent body to control coal. The Fuel Administra- tion, obliged to shape its general plans of administration somewhat after those written into the law for the Federal Trade Commission, soon organized and began a control over distribution, production, conservation, and prices. 1 George II. Cushing, in an article on " Ending the coal dilemma," in the Atlantic Monthly for November. 1918, says in part : " The Federal Trade Commission had a well- dofined ambition to control the coal industry. Indeed, William B. Colver, now its chair- man, and several of its employees had, while the Lane-Peabody conference was still sitting, appeared before a Senate committee to outline their plan of control. At about that time Mr. Colver had persuaded Senator Pomerene, of Ohio, to present his plan to Congress as an amendment to the Lever bill then under consideration. It is now a part of that statute." 12r,547 20 11 162 HISTORY OF PRICES DURING THE WAR. ORGANIZATION. The President, who had named a Food Administrator immediately after signing the food and fuel act, did not announce his appoint- ment of Harry A. Garfield as Fuel Administrator until August 23, 1917. The new administrator, during the late summer and early fall, began the appointment of State and local fuel administrators and committees. The Fuel Administration finally was organized some- what like the Food Administration, with an hierarchy of adminis- trators and committees penetrating even the smallest of the cities in the country and all heading up to the office at Washington. That similarity of method was not to be wondered at, since fuel problems, like food, have peculiarly local aspects. CONTROL OVER DISTRIBUTION. The Fuel Administration, impressed over and again by the de- mands for empty cars, saw shortly that one of its most formidable problems would be to effect a proper distribution of coal. The Sen- ate inquiry, through the testimony of John F. Fort, of the Federal Trade Commission, had found that * " transportation was the great- est problem during the whole of 1917, as was pointed out in both the May and June, 1917, reports of our commission. The facts disclosed at the hearings and in our investigations made it clear that the percentage of cars delivered at the mouth of the mine by the railroads was in almost all cases far below the number of cars which the increased production by the operators could have used if furnished." By all odds, the most important step taken for a better distribu- tion of bituminous coal orders, and that looking to a relief in the transportation congestion problem, was the establishment of a zone system on March 22, 1918. 2 That system, carefully worked out and finally put into effect by the joint efforts of the Fuel and Kail- road Administrations, had in mind the saving of car-miles and offered a sure and flexible means of controlling distribution. Coal theretofore had been distributed practically without regard to the distance between the mine and consumer. The consumers, the Government, and the distributors each to a degree had, amid the tremendous shortage prevailing, been guilty of carrying coal to Newcastle. It had been the ordinary thing for producers or pur- chasers to pass by nearer stores and ship coal halfway across the continent to satisfy their choices in selection. A plan was accord- 1 Coal hearings of Senate committee pursuant to Senate resolution IGH, held December, 1917, and January, 1918. 3 This whole plan is outlined in full by the Fuel Administration in its Publication No. 21 and in its " General Orders, Regulations, and Rulings," p. 213-354. GOVERNMENT CONTROL OVER PRICES. 163 ingly established 1 by which producers were not allowed, without a special permit, to sell coal beyond designated consuming zones. The main object of the zone system was to restrict eastern coal to eastern markets and fill vacancies in the Central and Western States with near-by coal produced in those States. The zone system af- fected all bituminous coal except that for railroad fuel, coal for movement on inland waterways, and coal delivered to Canada. The zones, which were not made applicable either to anthracite coal or coke, were made effective for bituminous and cannel coals on April 1,* 1918. It would seem that the methods for enforcing the zone plan were efficacious, since the Fuel Administration prohibited the distribution beyond the limits of the zones, and the Railroad Ad- ministration helped to enforce them by railroad embargoes. The movements of bituminous coal, regulated by the zone system, was about 300,000,000 tons, or 60 per cent of the total production. It was estimated by the Fuel Administration that there would thus be realized a saving, on the round trip from and to the mines, of almost 160,000,000 car-miles. That saving was enough to permit the same cars to make nearly 300,000 additional trips from the mines, equiv- alent to an increase of 5 per cent in the production. 2 CONTROL OVER PRODUCTION'. The tremendous exigencies of war, since this country had never in peace times feared so gigantic a shortage of coal, made the in- 1 These zones were geographical units in which the Fuel Administration, with the assistance of the Railroad Administration, regulated the distribution and apportion- ment of bituminous coal. They were designated by letters and covered the following territories : Zone A Missouri, Arkansas, Kansas, Oklahoma, and Iowa ; zone B Minne- sota, the Upper Peninsula of Michigan, and Wisconsin on the western bank of Lake Michigan, and on Lake Superior ; zone C Illinois ; zone D Indiana ; zone E western Kentucky ; zone F Virginia, eastern Kentucky, and Tennessee ; zone G certain parts of Tennessee, Georgia, and Kentucky ; zone H Alabama ; zone K Ohio ; zone L certain parts of West Virginia ; zone M certain other portions of West Virginia ; zone N cer- tain other portions of West Virginia and Virginia ; zone P northern West Virginia, Pennsylvania, and Maryland. 2 The primary savings, contemplated by the Fuel Administration in the announcement of its zone system on Mar. 22, 1918, are briefly summarized. It was believed that, in addition to the saving in transportation, there could be effected a retention of about 5,000,000 much-needed tons for the Eastern States, which, theretofore, had gone west all rail. The plan, it was thought, would eliminate the movement of more than 2,000,000 tons of Pocohontas coal to Chicago and other western points over a haul of 660 miles. Chicago, then, under the plan, would be compelled to obtain that amount instead largely from southern Illinois mines, an average haul of 312 miles. This change alone meant, allowing for the differences in quality in the two coals, a saving of 11,400,000 car- miles, or 285,000 car-days. Such a saving, if utilized in West Virginia mines, wouM permit 14 additional round trips of 20 days each and an additional production of at least 700,000 tons of Pocohontas coal. In like manner it was figured that in the movement of 550,000 tons annually from Kanawha districts to Wisconsin points there could be saved 2,500,000 car-miles, with a consequent increased production of about 300,000 tons. A saving of 800,000 car-miles in the movement from southeastern Kentucky to Chicago was calculated to increase pro- duction 50,000 tons. Still another elimination of the Indiana to Iowa movement was figured to save 1,600,000 car-miles and permit 100,000 tons additional production. 164 HISTORY OF PRICES DURING THE WAR. crease of production generally the primary concern in the coal prob- lem. It is estimated, in a general way. that an army uses 10 tons of steel per man each year. But since it requires, on an average, 5 tons of coal to produce 1 ton of steel, 50 tons of coal are needed for each soldier. 1 The situation was the more threatening since England, which ordinarily produces coal in abundance, had difficulty with her coal-production program and had come seriously to rely upon Ameri- can coal. This statement is true, not in the sense that England took to shipping that needed supply from American ports to her own in the form of coal, but in the sense that she came in large ways to rely upon our steel, which could be shipped with a lesser tonnage. The prices fixed tentatively by the early coal-production committee were not accepted, but the Peabody-Lane agreement succeeded in im- pressing industry with the paramount necessity for increasing pro- duction. Mr. John F; Fort, of the Federal Trade Commission, indeed, who took a hand in the Peabody-Lane agreement with the operators at the three-day conference beginning June 26, 1917, said frankly : 2 When we were considering this question of fixing the price, the question of production was the thing that entered into the problem most seriously. The coal output was recognized as at that time not to be sufficient to meet the cur- rent demands. The business interests of the country were perfectly willing to pay the price fixed at that time, and were paying a very much larger price, and to them the question of getting coal was more important than the price. The Fuel Administration, facing an exceedingly intricate problem, recognized in the coal shortage one of its most difficult problems. There has, for all of that, been made a charge that it gave too much emphasis to the price phases of the problem and too slowly turned to the production phases, and that this error resulted later in a serious coal shortage in the country. 3 It can not be judged whether that was true or not. It would not, if true, have been strange, since the coun- try always has had too much coal quickly to appreciate the serious- ness of a shortage. Nor did the country realize how dependent the world had become upon the American supply in 1917. There is especial interest, in the face of these facts and with a knowledge of the steps taken to alleviate the coal situation, to note the course of production during 1917 and later. A preceding table in this chapter shows that the total bituminous-coal production in the month of May, 1917, was, in round numbers, 41,000,000 tons. It jumped the following month to 47,000.000 and remained relatively near that figure each month for the remainder of the year, except for 1 An estimate made by George H. Cushing. 2 Senate hearings referred to above, p. 854. 3 This notion has been especially urged by George H. Cushing, in the Atlantic Monthly for November, 1917, pp. 589-598. GOVERNMENT CONTROL OVER PRICES. 165 September, when it fell to 45,000,000, and for December, when it fell to 44,000,000. The 1918 production remained near or above 50,000,000 tons per month from March until November. There then began a slump in production which had not yet disappeared by the early summer of 1919. The December, 1918. production, although the pre- ceding months it had been around 50,000,000, fell to 40,000,000 tons. In February, 1919, it fell to 31,000,000 and did not rise over 2,000,000 tons above that amount either in April or May. Altogether 1916, 1917, and 1918 were, each in their turn, all record, years for the indus- try. The control over coal production did, beyond any question, stimulate production. The total production of bituminous coal in this country in 1916, before Government regulation set in, was 502.000.000 tons. When Government control began, that amount was increased to 551,000,000 tons in 1917 and to 585,000,000 tons in 1918. CONTROL OVER CONSERVATION. It is of passing interest in a price inquiry that the Fuel Adminis- tration, though on a much less extensive scale than the Food Admin- istration, did institute a coal conservation program. That program in the main, went little further than a cutting down of fuel for cer- tain nonwar industries, the advocacy of lightless nights, the skip- stop systems, no-coal days, and the recommendations against uses of coal for private yachts and for country clubs. (5) THE CONTROL OVER COAL PRICES. The administration, after securing power from Congress to act, found itself squarely under the necessity of bringing some kind of relief to the coal situation. The distribution and price phases, whether or not more fundamental than increased production, were after all sorer points with the people at large, and they were the first to which the Government turned. It is of especial note that the President himself, after analysis of the Federal Trade Commission's cost figures at the White House, fixed the basic prices for bituminous and later for anthracite coal, as well as jobbers' margins, before ap- pointing a Fuel Administrator. But prior even to his putting a hand upon the alarming rise in coal prices, the President sought more efficaciously to distribute coal by appointing a new director of pri- ority of -transportation of freight. 1 The new director, under ap- proval of the President, within three days after his appointment, di- rected that rail and steamship lines give bituminous coal shipments to the Northwest preference over all other shipments. 2 Now that a 1 Judge Robert S. Lovett, appointed Aug. 2 ,1917. 2 A full account and copy of this important priority order may be found in the Com- mercial and Financial Chronicle, Aug. 25, 1917, p. 766. 166 HISTORY OF PRICES DURING THE WAR. law had passed, apparently the Government meant to lose no time be- fore controlling the distribution and prices of coal. An inquiry into the control that was exercised over coal prices leads naturally into a study of the prices fixed for bituminous coal at the mine, those fixed for anthracite coal at the mine, the margins established to prevent extortionate profit taking by middlemen, the control over coal at retail, and the peculiarly refreshing cost data that were later made the bases for coal price fixing. PKICE FIXING OF BITUMINOUS COAL AT THE MINES. The need for the fixing of a price for soft or bituminous coal in the summer of 1917 was, perhaps, more pressing than for fixing one for hard or anthracite coal. The production of bituminous coal, at any rate, makes up in bulk well above three-quarters of our annual total 500,000,000 tons of output and its rises in price were far more violent than those of hard coal. Of the total bituminous output, moreover, about 80 per cent goes to the railroad, public utility, and manufacturing industries which were our most vital secondary war- making weapons. It does not appear that the President entered again into protracted conferences with the industry, such as the Peabody-Lane conference or those which attended the later price fixing of iron and steel, while formulating the basic tentative prices which finally he announced from the White House on August 21, 1917. Prices fxed ~by the President. The President upon that day fixed a schedule of prices for all bituminous coal in the country, f. o. b. mine basis for tons of 2,000 pounds, " subject to reconsideration when the whole method of administering the fuel supplies of the country shall have been satisfactorily organized and put into operation." He further expressed an intention soon to control these prices not only at the mines but at wholesale and retail. The President, in the interest of fairness, divided the country into 29 coal districts and decreed that every producer in each district should market his coal at the particular price fixed there for coal, run of mine, prepared sizes and slack or screenings. These newly fixed prices ranged in the various districts from $1.90 to $3.25 for run of mine, $2.15 to $3.50 for prepared sizes, and $1.65 to $3 for slack or screenings. 1 1 Regarding these prices, the President's statement said : Figures submitted to the commission * * * show that most of the present prices now charged * * * are far in excess of cost as shown by the operators' bot>ks. Many of tho operators frankly take the position that, they are trying to get for their coal the highest prices possible under the present demand and are refraining, even at prices greatly increased over last year, from contracting their output to the extent of their usual cus- tom. They defend this action by claiming that under the operations of the law of supply and demand they have for many years past been getting little more for their coal than the bare cost of production ; that the mining of bituminous coal during that period has been a most unprofitable industry, and that this is their chance to recoup themselves for the losses of several years. Accordingly, they are demanding prices at the mine to-day which run from 50 per cent to several hundred per cent over the cost of their output. GOVERNMENT CONTROL OVER PRICES. 167 These prices were, so the President said, " based upon the actual cost of production and deemed to be not only fair but liberal as well," and " under them the industry should nowhere lack stimulation." * The new soft coal prices ranged from 20 to 35 per cent under the maximum prices established on June 28, previous to the Peabody- Lane agreement. The Peabody-Lane prices for Pennsylvania coal had been $3 for mine run and $3.50 for domestic lump, egg, and nut. The President's prices were $2 for mine run and $2.25 for the prepared sizes. The Peabody-Lane prices for West Virginia coal were likewise $3 for mine run and $3.50 for domestic lump, egg, and nut, while the President's prices were $2 and $2.25, respec- tively. The Peabody-Lane prices for Illinois and Indiana coal were $2.75 for mine run and steam sizes, and $3.50 for screened domestic sizes. The President's prices, on the other hand, w r ere $1.95 for mine run and $2.20 for prepared sizes. The new prices were, indeed, be- low the price tentatively fixed earlier by the Navy for Virginia coal at $2.335. 2 Mr. C. E. Lesher, delegated from the Geological Survey for the statistical work upon coal at the Fuel Administra- tion, very tersely remarks that the bituminous prices fixed by the President on August 21 were as far below the Peabody-Lane prices established June 28, as they in turn had been below the prevailing market. 3 Modifications made l)y the Fuel Administrator. The President, in his announcement of bituminous coal prices prior to his appoint- ment of a Fuel Administrator, had taken especial care to designate them as tentative and subject to change by any fuel agency which might be created. The Fuel Administrator did, in point of fact, during the remainder of 1917 and particularly in 1918, make con- siderable modifications in general, and in particular districts, of the original prices. The Fuel Administrator, made aware of serious demands from miners for wage increases in West Virginia, Illinois, Indiana. Ohio, and other districts early in the fall, wrote the President 4 and asked that bituminous coal prices be increased by enough to allow operators to satisfy wage demands. The President thereupon issued an Executive order, on October 27, 1917, to be effective October 29, 1917, allowing producers to add an additional 1 Letter from the President, announcing the new coal prices, dated Aug. 21, 1917. 2 It was estimated that the coal producers, under the new price, would have to refund approximately l.,S cents per ton to the Government, since the fixed price of $2 per short ton was calculated as equal to $2.20 per long ton. The Secretary of the Navy, when in- formed of the new Government prices, said in part :. " The Navy will, of course, get back any excess we paid in the $2.335 advance, as it was agreed that this was merely a tentative figure. When I fixed that rate I took the highest price suggested by any one whose judgment of prices at the mine I listened to. I wanted to be sure that enough was paid, and resolved all doubt in favor of the coal dealers. I hope now that we will get coal at a reasonable figure." 3 " Prices of Coal and Coke," by C. E. Lesher, W. I. B. Price Bulletin No. 35. 4 Oct. 26, 1917. 168 HISTORY OF PRICES DURING THE WAR. 45 cents for the bituminous coal at the mine to every price fixed on August 21, or subsequently modified. 1 It was later ruled by the Fuel Administration 2 that consumers having contracts for the pur chase of coal, made before August 21, 1917, at prices below the President's prices, need not add 45 cents to those contract prices, when the early contracts contained no provision for a variation in price to correspond with changes in the wage scale. The 45-cent increase for bituminous coal was made generally applicable except for Alabama, a nonunion State. 3 Alabama, because the Fuel Ad- ministration found her producers' and miners' committees in agree- ment upon a scale of wages, was excepted from the terms of the Washington wage agreement of October C and the Executive order of October 27, 1917. 4 The Fuel Administrator, on the other hand, issued an order May 24, 1918, and effective the following day, reducing the price of all bituminous coal by 10 cents per net ton of 2,000 pounds, f. o. b. mines in various districts. The reduction pertained to all bituminous schedules, irrespective whether there had or had not been modifica- tions of the President's prices, and was made in no way to affect the 45-cent increase that had been previously allowed. 5 This reduction was made because of the estimated general leveling and lowering of costs of production, accomplished by the elimination of all prefer- 1 There follows in full a copy of this important order, increasing the fixed price for bituminous coal by 45 cents subject to two exceptions, issued Oct. 27, 1917 : The scale of prices prescribed Aug. 21, 1917, by the President of the United States for bituminous coal at the mine, as adjusted and modified, by order of the United States Fuel Administrator, to meet exceptional conditions in certain localities, is hereby amended by adding the sum of 45 cents to each of the prices so prescribed or so adjusted and modified, subject, however, to the following express exceptions : (1) This increase in prices shall not apply to any coal sold at the mine under an exist- ing contract containing a provision for an increase in the price of coal thereunder in case of an increase in wages paid to miners. (2) This increase in prices shall not apply in any district in which the operators and miners fail to agree upon a penalty provision, satisfactory to the Fuel Administrator, for the automatic collection of fines in the spirit of the agreement entered into between the operators and miners at Washington, Oct. 6, 1917. This order shall become effective at 7 a. m. on Oct. 29, 1917. -Jan. 25, 1918. 3 Alabama was excepted by order from the Fuel Administrator dated Oct. 31, 1917. 4 Alabama producers and miners," who had been allowed to make a separate and satis- factory agreement effective Feb. 6, 1918, came to a new agreement on Apr. 20, and they too were given the 45-cent increase (as of the order of Oct. 27, 1917) effective May 15, 1918. E The effect of the order making a reduction of 10 cents per net ton from the mine price on all bituminous coal shipped after 7 a. m., May 25, 1918, is that no one shall ask, demand, or receive more than the applicable Government mine price thus reduced for any coal shipped after 7 a. m., May 25, 1918, unless the same was shipped pursuant to a bona fide contract enforcible at law entered into prior to Aug. 21, 1917. Contracts made between Aug. 21, 1917, and Dec. 29, 1917, do not authorize any exception to the above. Contracts made after Dec. 29, 1917, must, under the provisions of the order dated Dec. 24, 1917, contained in Fuel Administration Publication No. 16, provide that all shipments thereunder shall be at the applicable Government mine price at date of shipment. GOVERNMENT CONTROL OVER PRICES. 169 ments in car supply, brought about by the President acting through the United States Railroad Administration. In addition to the above general increase of 45 cents above the President's prices, and later decrease of 10 cents per ton, applicable virtually to the whole lot of bituminous coal in the country, the Fuel Administrator made numerous lesser modifications of the Presi- dent's prices within various particular districts. The general intent of these many district changes was to adjust more precisely the selling prices to the varying costs of each district by comparison with other districts, and of various sections within the same district. The President, for example, had fixed a flat price of $2, run of mine, for all coal in Pennsylvania. Mr. Garfield, at different times, divided Pennsylvania into sections on the basis of similarity in production costs, and not only assigned each section of the district a separate fixed price in accordance with its costs of production, but increased those prices somewhat above the President's prices. The modified prices, without here designating the districts, ran $2.25, $2.75, $2.60, $2.60, $2, $2.50, $1.90, and $2.95, respectively. The Ohio prices which the President had fixed at $2, run of mine (thick vein), and $2.35 (thin vein), in like manner were modified to meet the costs instead of 24 different cost districts, and the prices of $3.75, $3.25, $2, $2.35, $3, $2.10, $2.50, $2.50, $2.25, $2.50, $3, $1.90, $2.50, $2.30, $2.95, $2.05, $2.45, $2.45, $2.20, $2.45, $2.95, $1.90, $2.05, and $2.50 established. 1 Perhaps the most important of the revisions made of the original prices were those for eastern Kentucky; Kanawha, W. Va. ; Georges Creek, Md. ; central Pennsylvania; and Hocking, Ohio. These typical illustrations and others which may be made for any particular coal district, show that the Fuel Administration did allot much more carefully than had the President, prices with respect to locality costs, and that it generally increased the Presi- dent's prices. A comparison of prewar and -fixed prices. It can not be said how much the fixing of bituminous-coal prices by the President and their subsequent control and modification by the Fuel Administration held prices down. It would be inaccurate, indeed, to compare the fixed prices with the previously tabulated market quotations for pre- regulation months, since the bulk of bituminous coal has always sold by contract and at much below the " spot " market. But in order that there might be afforded some rough measure of the actual realiza- tion prices, Mr. C. E. Lesher has prepared a unique scheme for the reduction of the preceding weighted market prices to theoretical J For a more detailed designation of the various new coal districts established by the Fuel Administration, and a comparison of the many modifications made of the President's prices, one should refer to the rules and regulations of the Fuel Administra- tion appended to this inquiry. 170 HISTORY OF PRICES DURING THE WAR. realization prices. 1 These prices, which, perhaps, represent more accurately the true status of the weighted average bituminous coal market for the United States than any data that have been found, afford the best known basis for u comparison of bituminous prices before and after control. They give a fair measure of the actual movement of coal prices up to September, 1917, when price fixing had begun, and. therefore, a measure by which to compare the subse- quent fixed prices. WEIGHTED REALIZATION TRICES OF ALT, BITUMINOUS COAL IN THE UNITED STATES. ACTUAL TRICES PER NET TON. Month. 1913 1914 1915 1916 1917 1918 ?1 22 $1.17 SI. 16 SI. 19 SI. 48 $2.19 February .... .18 1.16 1.16 .17 1.48 2.20 March .17 .16 .15 .15 1.45 2.21 \pril .17 .17 .12 .20 2.30 2.71 May 17 .17 1.12 .20 2.44 2.75 June .17 .16 1.11 .20 2.43 2.66 July 17 .16 1.11 .20 2.30 2.68 \ugust .18 .17 1.11 .20 2.31 2.67 September .18 .16 1.12 .23 2.12 2.67 October . .19 1.16 1.12 .29 2.12 2.67 November 19 1.18 1.13 .45 2.19 2.67 December . 1.18 1.16 1.16 1.46 2.19 2.67 Year... 1.18 1.10 1.13 1.24 2.07 2.56 RELATIVE PRICES. 104 '100 99 101 125 187 February ... 101 99 99 100 126 188 March 100 99 98 98 124 188 \pril 100 100 95 102 196 231 May . 100 100 95 102 208 234 June 100 99 95 102 210 227 July 100 99 95 102 196 227 August 101 100 95 102 196 228 September 101 99 95 105 181 228 October 101 99 95 110 181 228 November 101 99 96 124 187 228 December 101 99 99 124 187 228 Year 101 99 96 106 175 218 1 The method by which Mr. C. E. Lesher, of the United States Fuel Administration, reduced the spot prices, which are quoted previously in this chapter, to theoretical average realization prices was as follows : An average realization per ton for each calendar year was obtained from the coal reports of the Geological Survey, by dividing the total dollars received f. o. b. mines by the total tons of each coal produced. This figure was an average for 12 months and if charted would be represented by a straight line, showing none of the monthly fluctuations which really took place. . These annual averages, moreover, were for calendar years, whereas the annual break in average realization more nearly corresponds to the coal year beginning with Apr. 1. These annual average figures of realization, there- fore, were arbitrarily moved forward 3 months, and the figures for the calendar year 1914 considered to apply to the 12-month period beginning Apr. 1, 1914, and ending GOVERNMENT CONTROL OVER PRICES. 171 The comparison is facilitated by the reduction of the theoretical weighted realization prices to corresponding relative prices by adopt- ing the average realization prices for the prewar year (July 1. 1913, to June 30, 1914) as a base equal to 100. It is clear from this statistical picture that the actual reduction in bituminous-coal prices for the bulk of production, as affected by price fixing, was much less than might be supposed on looking at any compilation of market quotations for spot transactions. Indeed, there was no greater reduction than 32 cents per net ton from May, well before regulation, to October, 1917, after control had begun. And not again throughout the whole period of fuel control does this theoretical realization price fall as low as the October price ($2.12). Instead, it begins a rise which reaches a record peak of $2.75 per ton in May, 1918, nearly a year after the spot prices had reached their peak. It w r ould seem clear that the control of bitumi- nous coal scaled down tremendously the enormous and unprece- dented rise which spot coal in the open market had attained during the six months prior to price fixing. But it is open to question whether there were such perceptible scalings in the sales which repre- sented the bulk of bituminous transactions. The record height of 'these actual sales, for the country as a whole, came eight months after control had set in. Bituminous-coal prices, which were con- trolled in part to stimulate production, judging them as a whole and ignoring exceptions within particular districts, 1 did not main- tain the lower level to which they were scaled by price fixing in the summer of 1917. They, whether measured by the spot prices or the realization prices, were brought down through price fixing to $2.12 per ton in September, 1917, but rose to $2.75 by May, 1918. Mar. 31, 1915. Quite without regard to quantity of coal produced in any month, the spot prices for each coal year were reduced or raised proportionately, so that their nrithmetic mean would equal the average realization. It was arbitrarily assumed that the average realization was represented by the sale price of coal delivered on contract, that the modified spot prices represented the price on current sales, and that three- quarters of the coal was sold on contract and one-quarter at the spot market. A figure for each coal for each month was thus calculated, i. e., three-quarters average realization and one-quarter spot prices reduced to average realization. For the period from September, 1917, to December, 1918, the prices fixed by the Government were considered spot prices and from April to December, 1918, the same prices were taken for the spot reduced to average realization, since the actual realization for 1918 was not yet available. It is believed that these figures record more accurately the true price status of the coal market than do the spot prices. They are, at any rate, based upon the actual annual average return per ton of coal. 1 A study of the stabilizing effects of coal regulation may be made within each bituminous district by use of materials already segregated in " Prices of Coal and Coke," by C. E. Lesher. 172 HISTORY OF PRICES DURING THE WAR. PRICE FIXING OF ANTHRACITE COAL AT THE MINE. It is to be remembered that hard or anthracite coal, which is used in the main by householders, constitutes only 15 per cent of our total coal production, and was not regulated by the earlier Peabody-Lane agreements or by the coal-production committee. The Federal Trade Commission, on the other hand, undertook during the spring of 1917 arnj until the President fixed anthracite prices, to control the prices of anthracite coal by various voluntary agreements which were entered into with the anthracite producers. 1 Anthracite prices, as a whole, were thus well under control by the summer of 1917, at the direction of Congress. These full data were presented to the President on August 22, and on August 23, 1917, he fixed the prices of anthracite coal for the country. 1 There follows a chronological review in brief, authorized by the Federal Trade Com- mission, of each important agreement looking to a regulation of anthracite coal prices, between the Federal Trade Commission and the anthracite producers up to the time of the President's prices (Aug. 23, 1917) : 1. See letter of commission dated Mar. 12, 1917, to 25 principal anthracite oplrators concerning rumored suspension of spring discounts (see Exhibit I, p. 371, S. Doc. No. 50, 65th Cong., Isfsess.). With this letter the commission inaugurated a policy of endeavor- ing to limit the price of anthracite to domestic consumers. 2. The May price on anthracite egg, stove, and chestnut sizes virtually was fixed for coal produced by railroad coal companies through publication of the commission's interim report to the Senate (see Schedule Exhibit II, p. 373, S. Doc. No. 50). This report fol- lowed conferences with the so-called railroad coal company operators early in May. To May prices add 10 cents per ton of 2,240 pounds each succeeding month, up to and includ- ing August, 1917, to ascertain approximate f. o. b. mine prices on the sizes mentioned, charged by the railroad coal companies. By adding another 10 cents, the price fixed by the President on these sizes, effective Sept. 1, 1917, is obtained. Broken, pea, and buck- wheat sizes were not the subject of agreement, since they have a large industrial use, and the commission was concerned principally with the prices of sizes most in use by domestic consumers. 3. Later in May (about the llth) a conference was held with individual operators to discuss their prices, since the individual output continued to go out at high prices (reach- ing as high as $8 and $8.50 per ton of 2,240 pounds f. o. b. mines in some instances). This conference is discussed in Commissioner Colver's testimony, par. 1, p. 264, Pt. I of the hearing before the Committee on Interstate Commerce. Jobbers' and retailers' rep- resentatives also were present at this conference. No fixed price was agreed on with indi- vidual operators at this conference, but high prices realized by individual operators were severely criticized by the commission. 4. The commission's letter of May 14, 1917, Exhibit IV, pp. 374, 375, Senate Document No. 50, and the form of weekly report printed on p. 376, that was required of individual operators for the last part of May, 1917, was the first intimation given them concerning what the commission considered the maximum permissible f. o. b. mine prices for their output of egg, stove, chestnut, and pea sizes, when sold for domestic consumption. This price (May) was 35 cents per gross ton above the railroad coal company prices already referred to on egg, stove, and chestnut (no price for pea was agreed on with the railroad coal companies). Subsequently it was found that it would be difficult or impossible to hold all individual operators to these prices, and the June reports for individual operators (printed on p. 877, S. Doc. No. 50) provided for a maximum differential of 75 cents per gross ton over the railroad coal company prices. Ten cents per ton of 2,240 pounds was added for each month up to and including August, 1917. In this connection it should be noted that all individual operators did not avail themselves of the full differential. For in- stance, the Kingston Coal Co., the largest individual operator, with a total yearly ton- nage (all sizes) of 1,200,000 tons, at no time took more than 35 cents. It was agreed with representatives of the individual operators that this differential should not at that time be made applicable to egg and pea coal sold for industrial use, provided that the GOVERNMENT CONTROL OVER PRICES. 173 Prices fixed ~by the President ', August 23 ^ 1917. The President's maximum prices for anthracite coal, announced like those for bi- tuminous coal before he had appointed his Fuel Administrator, * were to be effective September 1. They were virtually the same as the prices then charged at the mines under the voluntary agreement made by the producers with the Federal Trade Commission, if indeed not slightly higher. 2 The one exception to this rule was pea coal, which was increased above the market upon recommendation of the Federal Trade Commission, but which was subsequently reduced by 60 cents normal percentage of the total output of each operator sold for these purposes were not exceeded, and that no attempt should then be made to limit the price on broken and buckwheat sizes, generally used in the industries. For the purposes of observing the proportion of controlled and uncontrolled sizes produced by individual operators, monthly reports were required ; and these were checked with the percentages of the different sizes that were normally produced (see Forms 3 and 3A, reproduced on p. 879, S. Doc. No. 50). It should be remarked that some independent operators voluntarily abrogated contracts made at higher prices than those suggested as the limitation maximum, and shipped the coal so contracted for at the lower prices suggested as permissible maxima by the com- mission. The commission's views respecting limitation maximum f. o. b. mine prices were rein- forced by agents in the anthracite fields- who frequently called upon operators for inspec- tion of their sales records, consultations, etc. 5. Several jobbers attended the conference of May 11 by invitation, and while no agreement was then made respecting a limitation jobbers' margin on anthracite coal, the commission's views respecting exorbitant margins, and on mterbuying among jobbers with the consequent multiplication of jobbers' margins, were made known to them. About the middle of May or shortly afterwards, the commission began to express in- formally to leading jobbers its view that 20 cents per ton of 2,240 pounds should be the maximum jobbers' margin on anthracite shipped to Buffalo, or points east of Buffalo, that 25 or 30 cents should be the maximum on shipments west of Buffalo, and that the combined margins, of any number of jobbers handling a given shipment, should not exceed these maxima. A system of weekly reports from jobbers also was inaugurated in May. (See letter of commission to jobbers and report required, reproduced as Exhibit VIII, pp. 382, 383, 384, S. Doc. No. 50.) The commission's views respecting limitation jobbers' margins on anthracite were com- municated to all anthracite jobbers in. its. letter of June 9. (See Exhibit IX, p. 385, S. Doc. No. 50.) Field agents of the commission reinforced the commission's views as to jobbers' margins by frequent inspection of jobbers' records, interviews, etc. 6. At the conference of May 11 several representatives of retailers' associations were present by invitation. They were given an opportunity to hear the commission's views on excessive prices, but no agreement was attempted respecting retailers' margins. Subsequently the commission sent to retailers in many different cities letters and forms similar to those shown in Exhibit X, pp. 385, 386, 387, 388 of Senate Document No. 50. From these forms comparative statements of tonnage received in given cities or towns during stated periods were compiled, the gross margins of retailers in those towns or cities were computed, and the results given publication through the local press. The com- mission counted on such publicity to restrain retail dealers' margins to a certain extent, ?.nd while no names were published, except in Washington and Indianapolis, these press statements no doubt had some effect in restricting retail margins and prices during the summer and fall of 1917. 7. The commission's activities in the matter of anthracite pea control were placed fully before the President on Aug. 22, before the anthracite prices effective Sept. 1, 1917, were fixed by him. 1 Mr. Harry A. Garfield, president of Williams College and chairman of the wheat price- fixing committee of the Food Administration, was appointed the same day (Aug. 23, 1917). 2 Mr. David L. Wing of the Federal Trade Commission, in his testimony at the coal hearings referred to previously, declared that the President's prices were found by adding 10 cents. (See Exhibit No. 272, p. 914 of printed hearings, pursuant to S. Res. 163, Coth Cong. 2d sess.) 174 HISTORY OF PRICES DURING THE WAR. per gross ton by the Fuel Administration on October 1, 1917. The new anthracite prices, fixed for broken, egg, stove, chestnut, and pea coal under each of the three grades, white ash, red ash, and Lykens Valley, varied from $1 to $1.50 per ton of 2,240 pounds f. o. b. cars at the mine. The President, curiously, made the new prices explicable specifically to 16 leading Pennsylvania anthracite pro- ducers whom he named in the price-fixing announcement. It was then provided that anthracite producers, other than the 16 named, should not sell anthracite coal at prices to exceed by more than 75 cents per ton the schedule established for the larger producers. 1 The anthracite schedule of fixed prices showed important and interesting variations in practice from the earlier bituminuous schedule. Modifications made "by the Fuel Administrator. The Fuel Admin- istrator made more modifications of a general character in the Presi- dent's anthracite prices than in his bituminous prices. The whole schedule of anthracite prices, as fixed by the President August 23, was increased by Executive order to be effective December 1, 1917, to allow an addition of 35 cents per gross ton for each fixed price. That modification was made to provide for wage increases author- ized by the President. The usual summer reductions in the prices of 1 Thero follows so much of the President's order of Aug. 23, 1917, as pertains to the fixing of anthracite coal prices at the mine : 4. Effectiv6 Sept. 1, 1917, the maximum prices per ton of 2,240 pounds free on board* cars at the mines for the grades and sizes of anthracite coal hereinafter specified shall not exceed the prices indicated in par. 5 when such coal is produced and sold by the Phila- delphia & Reading Coal & Iron Co., Lehigh Coal & Navigation Co., Lehigh & Wilkes- Barre Coal Co., Hudson Coal Co., Delaware & Hudson Co., Scranton Coal Co., Lehigh Val- ley Coal Co., Coxe Bros. & Co., Pennsylvania Coal Co., Hillside Coal & Iron Co., Delaware, Lackawanna & Western Railroad Co., Delaware, Lackawanna & Western Coal Co., Susque- hanna Coal Co., Susquehanna Collieries Co., Lytle Coal Co., or the M. A. Hanna Coal Co. 5. The grades and sizes for which the maximum prices are specified are as follows : White ash anthracite coal of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was uniformly sold and recognized in the coal trade as coal of white-ash grade; red-ash anthracite coal of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was uniformly sold and recognized in the trade as coal of red-ash grade ; and Lykens Valley anthracite coal that is mined exclusively from the Lykens Valley seams and of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was uniformly sold and recognized in the coal trade as coal of Lykens Valley grade. White-ash grade : Broken $4. ,55 Egg 4.45 Stove 4.70 Chestnut 4.80 Pea 4. 00 Red-ash grade : Broken $4. 75 Egg 4.65 Stove 4.90 Chestnut 4. 90 Pea__ 4. 10 Lykens Valley grade : Broken $5. 00 Egg 4.90 Stove 5.30 Chestnut 5. 30 Pea 4. 35 6. Producers of anthracite coal who are not specified in par. 4 shall not sell the various grades and sizes of anthracite coal at prices that exceed by more than 75 cents per ton of 2,240 pounds free on board cars at the mines the prices enumerated in par. 5 ; provided that any producer of anthracite coal who incurs the expense of rescreening it at Atlantic or Lake ports for transshipment by water may increase the price thereof by not more than 5 cents per ton of 2,240 pounds. 7. Producers of anthracite coal specified in par. 4 of these regulations shall not sell anthracite coal to producers of anthracite coal not specified in par. 4. 8. Dealers and selling agents shall not sell coal produced by the producers included in par. 4 on the basis of the prices fixed at the mine for coal produced by producers not specified in said paragraph. GOVERNMENT CONTROL OVER PRICES. 175 domestic sizes were offered to the trade by the producers in 1918, although not required by the Fuel Administrator. Still a further and much greater increase, $1.05 per gross ton, was allowed to the prevailing maximum prices for Pennsylvania anthracite coal by the Fuel Administrator after November 1, 1918. This modification, too, was made to provide for increased costs of production and for wage increases. 1 Two weeks later (November 15) a maximum price for steam sizes of anthracite coal was fixed for the first time by the President. 2 A comparison of prewar and -fixed prices. The stabilizing effects of coal regulation upon the prices of anthracite can be more easily measured than those of bituminous coal. There are, however, certain very marked seasonal fluctuations in the prices of anthracite which must be held firmly in mind while attempting any measure. The anthracite producers, in order to make for uniform operations at the mines during the slack part of each year, have for years offered a reduction of 50 cents a gross ton each April for all purchases of domestic sizes, followed by a reduction of 40 cents in May and a 30 cents reduction in June, 20 cents in July, and so on until Septem- ber, when the normal price would be again reached. These summer reductions have become so much a factor in the general level of an- thracite coal prices that they constitute the primary fluctuation dur- ing the year. Prices of anthracite coal ordinarily remain fairly level until April, fall several per cent, and come gradually back to normal, reaching their level again in September. But these important sea- sonal fluctuations of anthraciate coal are concealed by the much larger and more irregular fluctuations since the. latter part of 1916. The only available method by which to judge the stabilizing effects of price fixing upon the prices of anthracite coal, as was the case with bituminous coal, is to compare the prices before and after con- trol. It can not, of course, be concluded hastily from that compari- sion whether coal regulation was or was not effective, since there was presented to it the problem not only of stabilizing prices, but of stimulating production. The theoretical realization prices for nil anthracite coal in the United States, in contrast to those prices 1 The engineers committee of the Fuel Administration, through Mr. R. V. Norris, makes tiio following summary and observations relative to labor increases which entered into the prices of anthracite coal : Effective Dec. 1, 1917, a labor war bonus, ranging from 60 cents to $1.10 per day for labor and 25 per cent for contract miners was granted over and above the wage scales effective by agreement Apr. 1, 1916, expiring Apr. 1, 1920, and the prices fixed Aug. 23, 1917, and modified Oct. 1, 1917, by reducing pea coal 60 cents per ton, were increased by 35 cents per ton to compensate for this labor increase. The actual reported increase in labor cost due to this advance was figured by the Federal Trade Commission from the operators' reports to be 60.3 cents. From the actual pay-roll figures later obtained by the TJ. S. Fuel Administration, this increase was found to be 76.3 cents per ton. 2 The maximum price thus established was 50 cents a ton less than that fixed for pea coal. 176 HISTORY OF PRICES DURING THE WAR. for bituminous coal, show a rise very similar to the spot prices. There are printed here, therefore, only the relative prices, taking the prewar year (July 1, 1913, to June 30, 1914) as a base equal to 100, for the series of realization prices. 1 because of the marked similarity between them and the less adequate spot prices. WEIGHTED REALIZATION PRICES OF ALL ANTHRACITE COAL IN THE UNITED STATES. ACTUAL TRICES PER GROSS TON. Month. 1913 1914 1915 1916 1917 1918 January $2. 69 $2. 66 $2.58 $2.60 $3 08 $3 63 February . . . .... 2.64 2.65 2.57 2.59 3.09 3.60 March 2.63 2.65 2.56 2.58 2.97 3 63 April... 2.50 2.44 2.44 2.70 3.08 .31 May... 2.52 2.47 2.46 2.66 3.45 31 June 2.56 2.49 2.48 2.67 3.36 .34 July.. 2.57 2.52 2 49 2.71 3.37 30 August 2.61 2.55 2.52 2.75 3.39 .33 September 2.65 2.58 2.57 2.79 3.47 54 October 2.65 2.58 2.58 2.84 3.47 .54 November. ... 2.65 2.58 2.58 3 09 3.50 5.30 December 2 65 2 58 2 59 2 99 3 63 5 30 Year . 2.60 2.56 2. .54 2.74 3.32 4.35 RELATIVE PRICES. Month. 1913 1914 1915 1916 1917 1918 January. . . 104 103 99 100 119 140 February . . 102 102 99 100 119 139 March... 101 102 99 99 114 140 April 99 94 94 104 119 166 May 97 95 95 103 132 166 June 99 96 96 103 129 167 July.. . 99 97 % 104 130 166 August 101 98 97 106 131 167 September, 102 99 99 108 134 175 October 102 99 99 109 134 175 November 102 99 99 119 135 204 December 102 99 100 115 140 204 Year ., 101 99 97 106 128 It 7 The weighted average realization prices for all anthracite coal sold in the United States, made by abstracting some 5,000 quota- tions and reducing them to a basis at which, it is estimated, the bulk of sales were made, shows an exceedingly steady market during 1913, 1914, and 1915. Anthracite coal in the latter part of 1916, however, began a rise which continued steadily in the main until the end of 1918. The general price held steady for a brief space only at $3.47 per ton, following the President's first announcement, and then rose in the latter part of 1917 by reason of the increase of 35 cents per ton that was allowed, effective December 1. The price rose from $3.63 per ton in December, 1917, and January, 1918, steadily, except for slight reductions during the summer, to the, latter part of 1918, when 1 These realization prices were made by C. E. Lesher in like manner to the realization prices previously printed for bituminous coal. A study of the spot or market prices for anthracite coal may le made from Mr. Lesher's pamphlet. GOVERNMENT CONTROL OVER PRICES. 177 another increase of $1.05 was allowed. The price realized for an- thracite coal throughout the country as a whole, thus advanced rather steadily under Government regulation, from the time control set in until after the signing of the armistice. It made during that time a gain from $3.47 per ton in September, 1917, to $5.30 in Novem- ber, 1918. CONTROL OVER THE PRICES OF COAT, MIDDLEMEN. Jobbers' margins. It must have been obvious to the President at the outset that, while the fixing of fair prices for coal at the mine would stimulate production, it would not insure against extortionate profits to middlemen. He, in his first announcement of bituminous prices, gave promise soon of a fair and equitable control of prices for sales by middlemen and retailers. The President's order of August 23, fixing prices of bituminous coal at the mine, left middle- men and retailers a free hand to charge consumers what they would. But on August 23, 1917, in the same -order by which he also fixed anthracite coal prices, the President set certain jobber margins. Bituminous coal jobbers, by that order, were not allowed to add to their purchase price a gross margin above the fixed price in excess of 15 cents per ton of 2,000 pounds, nor were the combined gross margins of a number of jobbers allowed to exceed that amount. An- thracite coal jobbers were not allowed a gross margin above the fixed price in excess of 20 cents per ton of 2,240 pounds when delivery was at or east of Buffalo, or in excess of 30 cents for deliv^y west of Buffalo. 1 The modifications of these original margins made by the Fuel Administration were of less importance than its changes in prices fixed by the President. 2 1 The sections of the President's order of Aug. 23, 1917, which relate to bituminous and anthracite jobber margins follow : 1. A coal jobber is defined as a person (or other agency) who purchases and resells coal to coal dealers or to consumers without physically handling it on, over, or through his own vehicle, dock, trestle, or yard. 2. For the buying and selling of bituminous coal a jobber shall not add to his pur- chase price a gross margin in excess of 15 cents per ton of 2,000 pounds, nor shall the combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of bituminous coal exceed 15 cents per ton of 2,000 pounds. 3. For buying and selling anthracite coal a jobber shall not add to his purchase price a gross margin in excess of 20 cents per ton of 2,240 pounds when delivery of such coal is to be effected at or east of Buffalo. For buying or selling anthracite coal for delivery west of Buffalo a jobber shall not add to his purchase price a gross margin in excess of 30 cents per ton of 2,240 pounds. The combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of anthracite coal for delivery at or east of Buffalo shall not exceed 20 cents per ton of 2,240 pounds, nor shall combined margins exceed 30 cents per ton of 2,240 pounds for the delivery of anthra- cite coal west of Buffalo. Provided that a jobber's gross margin realized on a given shipment or shipments of anthracite coal may be increased by not more than 5 cents per ton of 2,240 pounds when the jobber incurs the expense of rescreening it at Atlantic or Lake ports for transshipment by water. .t *For a full compilation of all subsequent orders relating to jobbers' margins, one should consult " General Orders, Regulations, and Rulings " of the Fuel Administration, Chapter III, Title IX ; Chapter II, Title IV; Chapter III, Title VII ; and notes under each, 125547 20 12 178 HISTORY OF PEICES DURING THE WAR, Distributors* nwrgntv. It became necessary in the spring of 1918 to bring certain distributors under license control in order to admin- ister regulation more effectively. A presidential proclamation, 1 ac- cordingly, was issued requiring all distributors of coal or coke as jobber, broker, selling agent, or " in any capacity whatever," to se- cure a license on or before April 1, 1918, 2 from the Fuel Administra- tor and under such conditions as might be prescribed by him. Mr. Garfield then issued an order with the approval of the Presi- dent, prescribing that licensees who sell coal or coke without phy- sically handling it should not ask more than the prevailing fixed price plus 5 cents per ton of -2,^40; and licensees who act as purchas- ing agents without becoming the owner might charge a purchasing commission not in excess of 15 cents per ton of 2,000 pounds of bitu- minous coal, or 20 cents per ton of 2,240 pounds of anthracite coal for delivery at or east of Buffalo and 30 cents for delivery west. 3 CONTROL QVER COAL AT RETAIL. One of the most difficult tasks of the war-time control over fuel was the regulation of the retail prices of coal. The Fuel .Adminis- trator, realizing the prime necessity of assuring stable prices to the small purchasers and consumers, set forth a scheme for the control of retail coal prices as early as October 1, 1917. The administration of the plan involved, of course, the assistance of the State and local committees, of whom there were legion. 4 No retail dealer under the plan was allowed to charge consumers a retail gross margin of coal or coke in excess of the average gross margin, above his average cost, added by the same dealer during 1915, plus 30 per cent of the 1915 margin. 5 A measure of the movement of retail prices, before and after regu- lation, is given in the table below. This table shows average and relative retail prices, as compiled by the Bureau of Labor Statistics, for Pennsylvania white-ash coal, both stove and chestnut sizes, and bituminous coal for the United States on January 15 of each year, 1913 to 1919, inclusive. An average price for the year 1913 has been made from the averages for January and July of that year. This 1 This proclamation, issued under authority of the food and fuel act, ^vas made Mar. 15 V 1918. 2 An. exception was made to those specifically exempted by the food and fuel act, producers and miners of coal and manufacturers of coke, distributing exclusively their own product, and retail dealers, as denned in the Fuel Administrator's order of Oct. 1, 1917. 3 A full listing of all orders relating to licensed distributors may be found in Fuel Administration "General Orders, Regulations and Rulings," Chap III. Title IX, sec. 2. 4 See fuel orders referred to above, Chap. II, Title VI, for full retail price regula- tions. 5 Provided that the retail gross maigin added by any retail dealer should in no case exceed the average added by such dealer for the same size and grade during July, 1917. GOVERNMENT CONTROL OVER PRICES. 179 average price for the year 1913 has been divided into the average price for January of each subsequent year to obtain the relative prices. Since January, 1913, Pennsylvania white-ash stove coal has ad- vanced 44 per cent, chestnut 42 per cent, and bituminous coal 44 per cent. The first big jump in the price of all kinds of coal came in the year from January 15, 1917, to January 15, 1918. Another interest- ing fact is that in the last year, from January 15, 1918, to January 15, 1919, stove coal increased 17 per cent, chestnut 16 per cent, while bituminous coal increased only 3 per cent. AVERAGE AND RELATIVE RETAIL PRICES OF COAL IN TON LOTS, FOR HOUSE- HOLD USE. JAN. 15 OF EACH YEAR, 1913 TO 1919, INCLUSIVE. [Average price for year 1913=100.] Period. Pennsylvania anthracite, white ash. Bituminous. Stove. Chestnut. Average price. Relative price. Average price. Relative price. Average price. Relative price. Yvera^e for year 1913 $7.73 7.99 7.80 7.83 7.93 9.29 9.88 11.52 100 103 101 101 103 120 128 149 $7.91 8.15 8.00 7.99 8.13 9.40 10.03 11.61 100 103 101 101 103 119 127 147 $5.41 5.48 5.97 5.71 5.69 6.96 7.68 7.90 100 101 110 106 105 129 142 146 Jail. 15, 1913 Jan 15 1914 Jan . 1 5, 191 5 Jan. 15, 1916 Jan. 15, 1917 Tan. 15, 1918 Jen. 15, 1919 SPECIAL PRICES, PREMIUMS, AND CHARGES. In addition to the prices fixed at the mine, margins for middlemen and retailers, various special prices, premiums, and charges deter- mined by the Fuel Administration were 'also established. 1 These in the main pertained to smithing coal, cannel coal, export and bunker coal, coal at Lake Michigan and Lake Superior docks, and coal from wagon mines, prices of specially prepared coal and coal not properly picked or cleaned, and miscellaneous orders affecting the delivered price of coal. COSTS MADE THE BASIS OF PRICE FIXING. The coal prices fixed by the Fuel Administration were based upon, scientific analyses of costs conducted by a special committee. Neither the price-fixing committee nor the Food Administration to any extent availed themselves of a detached scientific committee whose business it was to analyze for them and interpret the cost sheets prepared by the Federal Trade Commission. The Fuel Adminis- 1 See fuel orders referred to above, Chap. II, Title IV, sees. 1, 2, 3, 4, 5, 6, and 7. 180 HISTORY OF PRICES DURING THE WAR. tration, indeed, during 1917 and until early in January, 1918, took the President's tentative prices as the basis for all revisions and adjustments without serious inquiry into their justice. 1 But early in 1918 the Fuel Administrator appointed his notable committee of engineers to make a painstaking and general review of all coal- production costs in the United States and to recommend to him scientific verification or revision of each price tentatively fixed. 2 The Fuel Administration thus, more than any other of the larger price-control agencies, made intensive and highly specialized studies of production costs. It, unlike either the price-fixing committee or the Food Administration, was concerned primarily with the price fixing of but a single commodity coal and could make close analyses of costs for various parts of the country. The elaborate confidential cost tables worked out by the engineers' committee for Mr. Garfield, though happily as often useful to verify as to revise former prices, gave very comprehensive bases for the fixing of bituminous and anthracite coal prices. The engineers' committee at the outset determined upon a method for arriving at a fair price for coal. It considered the (a) straight cost-plus method the actual cost at each colliery plus a fixed sum or percentage of profit; (b) modified cost-plus method the actual cost at each colliery plus a graduated profit decreasing as costs increase; () It does not unduly increase the price of coal to the consumer over the minimum price possible under* other methods. (c) It tends to encourage maximum production and necessary development by allowing to the producer the benefit of reduced costs due to greater production. (<1) It avoids bad feeling among the producers and among the workmen by allowing a fixed price in each district and not apparently show- ing favoritism to special producers, (e) It tends to encourage the fit and discourage the unfit, (f) The method is susceptible of refinement and extension, making it possible to eliminate undue profits to the producer and adjust prices from time to time to the ultimate advantage of the consumer. Disadvantage of the "bulk line" system. (a) Considerable profits to the lowest-cost operators, (fi) A price for coal greater than one based on the average cost, by the amount by which the "bulk line" exceeds such average. This method appeared to be better suited to the conditions than any of the others suggested, and after a careful study by the United States Furl Administrator it was adopted. 3 It is of interest that the committee later found, when cost data for extended periods were had, that the two months mentioned above were fairly representative, as to cost, of the average year. GOVERNMENT CONTROL OVER PRICES. 183 district in the country, of which there were 99, a graph showing horizontally from left to right various percentages of production from to 100. That same graph ? when read vertically from the lower left corner, showed various unit costs of production per ton from to the highest cost found. There were then drawn upon each chart the total costs for the district, as reported and also as adjusted, beginning at the lowest cost and the tonnage which could be produced at that unit cost. The two cost lines thence (i. e., the reported and adjusted cost lines) were made gradually to rise from this lowest to the very highest cost in the district, showing con- stantly the increased production that could be had with each in- crease in cost. The bulk line, between these two extremes, repre- sented the percentage of production required and marked, there- fore, the basis for fixing a price. The bulk line usually was fixed at a point to assure the production at a minimum of profit, of 90 per cent of the total capacity, thus cutting off the upper crust of high-cost producers. 1 The bulk line of the chart, after adding whatever margin was determined upon by the Fuel Administrator, gave the necessary realization for run-of-mine coal in that district. Spreads were, however, frequently added to this price to make pos- sible screening and special prices for prepared sizes. A study of the average costs, bulk line, and prices fixed for 84 per cent of the bituminous coal production in the United States during August and September, 1917, gives interesting generaliza- tions. 2 The weighted average margin between costs and the prices fixed for substantially the entire bituminous production of the coun- try was 45.6 cents. It is of equal interest that the weighted average margin between the bulk line, which represents the highest price necessary to produce any part of the necessary coal, and the prices fixed by the Fuel Administrator was 26 cents. 3 1 These include : Mines which have failed under normal competitive conditions and have been reopened under the stimulus of the high prices preceding Government control ; mines abandoned as exhausted and reopened for the few remaining pillars : new enter- prises in the development stage : mines opened on heds so thin or of such poor quality that they could not operate under normal conditions; sinall mines on outcrop coal, often of poor quality, which have neither capital nor equipment for economical working ; mines which have encountered faults or in which the coal has thinned or split, or the quality has so deteriorated as to prevent working at a reasonable cost ; and, not the least of this group, mines so badly managed as to show unwarrantable costs of operation. All these classes of mines are unjustifiable under war conditions. They use labor inefficiently. Often their records show less than half the tonnage per employee usually obtained in their district, and their elimination is an economical advantage to a district in releasing labor to more efficient mines. In this high-cost group occasionally are found mines which, have a coal of unusually high quality or fitted for special use, for which a market at prices above those of the district has always existed. Such mines, on proving their special conditions, may re- ceive consideration for special prices sufficient to allow a fair profit on their higher costs. 2 See bituminous chart in section on " The determination of a fixed price." * The engineers' committee add that : The average cost of the 84 per cent of the total coal represented for the two months of August and September, 1917, was reported to be $1.696. The adjustments heretofore 184 HISTORY OF PRICES DURING THE WAR, Anthracite costs. The inquiry into the costs of mining anthracite coal, which followed that for bituminous, covered costs for the vari- ous sizes of white-ash anthracite, red ash, and Lykens Valley coals for the six months' period, December, 1917, to May, 1918, inclusive. The anthracite field covers a smaller district, is indeed itself a single district, and gave relatively few problems in the adjustment of re- ported costs to a price-fixing basis. 1 But the spread in anthracite prices of the varying sizes, which for the chosen period ranged. from $5.244 for nut to $2.074 for barley coal, made vital the question of the percentage of sizes produced at the different collieries. The percentage of prepared coal reported from different collieries, more- over, varied from over 80 per cent to below 30 per cent for fresh- mined coal, and the spread in prices for the various sizes had to be predicated upon some percentage to allow for variations. 2 described raised this reported cost to $1.706, a very strong indorsement of the honesty of the reports made by the operators. The average " bulk line " was fixed at $1.002, or 19.6 cents above the average adjusted cost. This represents the margin required to assure the mining of the necessary coal, as compared with the average cost, which, of course, involves the mining of only coal up to or below the average cost ; in other words, half the available output. The weighted average of all prices fixed is $2.162 per ton and the average margin above the " bulk line " is 26 cents, representing all the above mentioned charges and all profit for the higher cost necessary mines ; the margin above the average weighted cost for the whole country is 45.6 cents per ton, which, compared with profits in other busi- nesses, certainly does not show any signs of profiteering in the coal business as a whole. The prices fixed are also sufficient, on the basis of the reported costs, to permit the mining of 98.4 per cent of all available coal, without loss. 1 Mr. R. V. Norris, a member of the engineers' committee of the Fuel Administration and also of the price-fixing committee, has prepared an interesting paper on " Anthracite mining costs," which was printed in Bulletin No. 146, by th'e A. I. M. S., in February, 1919, by the Fuel Administration. 2 Mr. Norris explains the method of making these adjustments as follows : The logical method of adjustment is to calculate actual costs to costs as of the stand- ard percentage of sizes, so that the margin between the adjusted costs and the average realization shall be the actual margin for each colliery between its actual costs and actual realization due to its particular percentage of sizes. As a basis for realization the actual percentage of sizes for fresh-mined coal for the 6-month period was adopted. This percentage is given below. Size of coal. Mesh, in inches. Percentage of sizes. Through, round. Over, round. Fresh mined. Washery. Fresh mined and washery. Broken 4; ! ! 5 3 " 31 31 6.8 14.6 19.6 24.7 9.1 11.6 3.2 4.9 3.9 1.6 0.4 1.2 2.3 10.1 10.0 21.4 14.9 27.5 8.8 3.4 6.2 13.5 18.2 23.5 9.2 12.4 4.2 6.8 4.3 1.7 Egg . n Stove Nut Pea Buckwheat Rice TT* -A ~h~ T5 Barley Boiler For adjustment as a base for fixing a spread of prices the percentages used were, taken at even figures, prepared, 65 per cent ; pea, 9 per cent ; buckwheat, 12 per cent ; and smaller, 14 per cent. The adjustment finally arrived at after long study was tested on actual reports from collieries having percentages that varied from over 80 per cent to under 30 per cent pre- GOVERNMENT CONTROL OVER PRICES. 185 The engineers' committee, when it came finally to overhaul the earlier prices that had been fixed for the three important grades of anthracite coal, made charts to show the reported and adjusted costs for white ash, red ash, and Lykens Valley coal. 1 They found, after pared coal and was found to be correct within a maximum variation of less than IS per cent. It was as follows : For each 1 per cent variation. Above standard per cent deduc- tion. Below standard per cent addition. 1.20 1.20 Pea .85 .85 .75 .75 Smaller... .50 .50 As examples of the working of this adjustment with prices assumed at about the average for the 6 months and taking mines well away from average percentage of sizes. Size. Base per cent sizes. Base price. Realiza- tion. Mine A per cent sizes. Correc- tion percent. Actual Mi e r B r ^ liza - c P ent tlon - sizes. Correc- tion pier cent. Reali- zation. Prepared . . . Co $5.10 $5.315 73.1 -9.72 $3.730 55.1 + 11.880 $2. 810 Pea 9 3.70 .333 6.4 +2.21 .237 : 15.3 - 5.355 .566 Buckwheat 12 3.20 .384 10.4 +1.20 .333 13.7 - 1.275 .438 Smaller 14 2.20 .308 10.1 +1.95 .222 15.9 - .950 .350 Total 100 4.340 100.0 -4.36 4.522 100.0 + 4.30 4.164 I Assumed cost for each mine $4. 000 $4. 000 Actual margin 522 . 164 Standard realization *. 340 4. 340 C alculated cost as of standard per cent sizes- Mine A $4X0.9564 per cent 3. 826 4. 172 Mine B $4X104.30 per cent Calculated margin , 514 .168 The correction for mine A is then 4.36 per cent and the adjusted cost $3.826, showing 51.4 cents margin on the .$4.34 standard realization against 52.2 cents actual margin. Similarly for mine B, the correction is 4.30 per cent, giving an adjusted cost of $4.172 and a margin of 16.8 cents, as compared with the actual margin of 16.4 cents. Thus the adjusted costs on the chart bear a true relation to the realization received from a scale of prices for the various sizes based on the standard or average percentage of sizes adopted as a base, regardless of the actual percentage of sizes produced by each opera- tion, and prices can be fixed from the chart line of adjusted costs which will result in giving each mine its intended margin. The correction, of course, is an allocation based on realization from the different sizes and could be made more accurately by taking into account each size produced, but at the cost of more time than was available for the work. With a material variation in price, different factors of correction should be calculated. 1 See anthracite chart in section on " The determination of a fixed price." 186 HISTORY OF PRICES DURIXG THE WAR. making weight-ex! averages, the following average and bulk-line costs for standard fresh-mined white ash anthracite: Description. Costs, averages returned. Costs, adjusted. Cost, 90 per cent bulk line. Excluding wasliery coal: AH operations, each coJlierv separate . $3.85 3.71 4.37 .",. sr> 3.57 S3. 91 3.79 4.36 3.91 3.77 $4.80 4.65 4.97 4.38 4.M All company operations each colliery separate All independent operations, each colliery separate All operations, each company operating 2 or more collieries consolidated . Including washery coal. All operations, each company operating 2 or more collieries consolidated . A differential of 75 cents per ton, as had been made by the Presi- dent on August 23, 1917, was made for pea size and above (equivalent to 52.95 cents per ton for all sizes) for the independent operators over certain companies with railroad affiliation, known as the " com- panies/' It is of interest, in connection with the above table of average and bulk-line costs, to study the prices received for white- ash anthracite as prepared by the engineers' committee. 1 It is noteworthy that, despite the elaborate anthracite cost analyses later made by the engineers' committee, the prices of anthracite coal were left substantially as fixed by the President save for two labor increases and the early reduction in the price of pea coal. The tables following make possible a comparison of anthracite prices as origi- 1 The prices received by the companies and independents have not been separately averaged, as were the costs, but calculating on the differential and assuming the per- centages the same for companies and independents, which is only approximately the case, the selling price of fresh mined coal would average for companies $4.287 and for inde- pendents $4.817. Margins over reported costs of companies would be 58 cents and for independents 45 cents, with a general average margin for all fresh mined coal of 56 cents and for all coal including washery of 71 cents per ton, and under " bulk-line " costs fresh mined companies, 36 cents ; independents, 15 cents ; total, 39 cents, including washeries consolidated sheets total of 7.5 cents. These margins include all expenditures for Federal income and excess-profits taxes, selling expenses, interest charges, expenditures for improvements, and developments to increase output, excess of capital expenditures over normal cost, and all profit on the in- vestment of about $8 per ton annual output. Size. Fresh mined coal. Bank coal. Total, including banks. Percent. Average price. Per cent. Average price. Per cent. Average price. Broken 68 14.6 19.6 24.7 9.1 $4.889 5.028 5.161 5.244 3.687 0.4 1.2 2.3 10.1 10.0 $4.416 4.815 5.060 5.246 3.696 6.2 13.5 18.2 23.5 9.2 $4.886 5. 027 5.160 5.244 3.698 Fgg Stove Nut Pea .. . Total and weighted average pre- pared and pea 74.8 4.959 24.0 4.544 3.213 2.452 1.767 2.123 1.555 70.6 4.947 Buckwheat 11.6 3.2 4.9 3.9 1.6 3.342 2.482 2.231 2.341 2.202 21.4 14.9 27.5 8.8 3.4 12.4 4.2 6.8 4.3 1.7 3.324 2.473 2.874 2.304 2.162 Rice Barley Boiler pcro.p.Tjvngs Total and weighted average small sizes. 25.2 2.795 76.0 2. 339 29.4 100.0 2.697 Grand total 100.0 4.414 100.0 2.868 4.285 GOVERNMENT CONTROL OVER PRICES. 187 nally fixed by the President and as they stood after the signing of the armistice. 1 PRICES FIXED BY THE PRESIDENT AUG. 23, 1917. White ash. Red ash. Lykens Valley. Company. Independ- ent. Company. Independ- ent. Company. Independ- ent. $4.55 4.45 4.70 4.80 4.00 $5.30 5.20 5.45 5. 55 4.75 $4.75 4.65 4.90 4.90 4.10 $5.50 5.40 5. Co 5. 65 4.85 $5.00 4.90 5.30 5.30 4.35 $5.75 5.65 6.05 0.05 5.10 Egg . . . Stove Chestnut Pea FIXED PRICES, DEC. 31, 1918. White ash. Red ash. Lykens Valley. Company. Independ- ent. Company. Independ- ent. Company. Independ- ent. Broken $595 5.85 6.10 6.20 4.80 $6.70 6.60 6.85 6.95 5.35 $6.15 6.05 6.30 6.30 4.90 $6.90 6.80 7.05 7.05 5.75 $6.40 6.30 6.70 6.70 5.15 $7.15 7.05 7.45 7.45 5.90 Egg Stove Chestnut Pea The average costs of producing anthracite coal, as they were re- ported for the six-month period from December, 1917, to May, 1918, including the increase of December 1, 1917, but not that of Novem- ber 1, 1918, follows : 2 AVERAGE ANTHRACITE COST, DECEMBER, 1917, TO MAY, 1918. Cost per ton. Fresh mined coal, 35,256,550 tons. Washery operations. 3,431,916 tons. Total, in- cludinsr washeries, 38,688,466 tons. Labor $2. 593 $0. 687 $2.423 Supplies .616 .260 .584 Transportation, mine to breaker .004 .007 .004 Royalty current .". .153 .102 .148 Royalty advance ... .002 .002 Depletion .099 .077 .097 014 .024 .016 Depreciation .091 .086 .090 Pro rata suspended cost of stripping . . .023 .021 Contract stripping End loading .009 .009 Taxes local .054 .034 .052 Insurance, current . .016 .014 .016 Insurance' liability .058 .018 .055 Officers' salaries and expenses .030 .019 .029 .048 .024 .045 Legal expenses .... .005 .003 .005 Miscellaneous .026 .023 .026 Total 3.841 1.37S 3.622 Increase over M*ty to November 1917 .764 .365 .719 1 Mr. R. V. Norris, backed by the engineers' committee, concludes from these tables that " the selling price of anthracite has been increased but 3O.5 per cent over the prewar price, while the cost of production has gone up 52 per cent, the difference having been absorbed by the operators." 2 Fuel Bulletin No. 146. 188 HISTORY OF PRICES DURING THE WAR. The final realization for all companies and all sizes, including washery coal and both of the labor increases, was calculated to aver- age $5.13 per ton, while the bulk line, as shown previously, plus the November, 1918, labor increase, amounts to $5.32. 1 (6) THE CONTROL OVER COKE. 2 It has already been noted that the market prices of coke, so closely allied with iron and steel, rose to unprecedented heights during the summer of 1917. The wholesale price for Connellsville coke, furnace, prompt shipment, f. o. b. ovens, which just a year before had stood at $2.75, shot to $13.42 in August, 1917. The War Industries Board, by reason of its concern in the stabilization of iron and steel prices, had rescued coke quotations from a runaway market by fixing them definitely at a flat rate of $6 per ton on September 24, 1917. It is of interest that the Fuel Administration later confirmed this price and upon it as a basis figured numerous differentials and special prices for various districts. 3 The Fuel Administrator on November 9, 1917, without any specific mention of previous price fixing, established maximum prices to be effective the following day. These maximum prices for coke made in ovens without by-product recovery east of the Mississippi River were : Blast furnace $6. 00 Foundry coke, 72-hour selected 7.00 Crushed coke, over 1-inch size 7.'30 These prices were made applicable per ton of 2,000 pounds f. o. b. cars' at the plant where coke was manufactured. It was declared that the maximum prices for various grades of beehive coke made in districts other than these should bear the same ratio to the estab- lished price of the coal from which the coke was made as the aver- age contract prices of the same grades of coke had to the average contract prices of coal during the years 1912 and 1913. It is estimated that 10 per cent only of the total output of coke is sold on the open market, and there is no satisfactory measure from market quotations, therefore, of the relative point at which coke prices were fixed or the effect of price fixing upon the general market level as realized for the bulk of sales. There can be no ques- tion that the September price fixing had a tremendous influence in the pulling of the market price from its historic peak in August and holding it at a lower level thereafter. But if one would measure the effects of price fixing upon the remaining 90 per cent of the total !R. V. Norrifc. 2 See also chapter on " Iron and steel," under the War Industries Board controls. 8 See " General Orders, Regulations, and Rulings " of the Fuel Administration, Ch. VI, Title I, sec. 1. GOVERNMENT CONTROL, OVER PRICES. 189 output, he must compare the fixed price with previous contract prices. There have been ca]culated below so-called realization prices for the United States from the spot quotations and the average annual realization reported by the Geological Survey. 1 The com- parison has been facilitated by turning the weighted realization prices into relative prices, by letting the base price from July 1, 1913, to June 30, 1914, equal 100. The accompanying table of " spot " prices presents a marked con- trast to the realization price table. 2 Price fixing beyond doubt scaled the market quotations from unprecedented heights for the smaller percentage of coke sales. The effect of price fixing upon the great bulk of sales by contract is, however, not so clear. The realization prices, indeed, went far beyond their 1917 peak several months after control had set in, and not during the whole of 1918 did they come down from that height. WEIGHTED REALIZATION PRICES FOR ALL CONNELLSVILLE COKE. ACTUAL PRICES PER NET TON. Month. 1913 1914 1915 1916 1017 1918 January S2. 51 52.12 $2.03 $2.65 $4.87 $6 03 February . . .... 2.38 2.12 2 03 2 68 4 88 6 03 March 2 37 2 12 2 03 2 69 4 88 6 03 April 2.34 2.12 2.03 2.61 4.77 6 03 May 2.34 2.11 2 03 2 60 4 79 G 03 June ' 2.34 2.10 2.04 2.62 4.97 6.03 July 2.37 2.10 2.05 2 64 5 04 6 03 \ugu^t 2 38 2 10 2 03 2 64 5 09 6 03 September 2.36 2.09 2.05 2.65 4.96 6 03 October 2.33 2.08 2 09 2 78 4 69 6 03 November 2 31 2 08 2 12 2 93 4 69 6 03 December 2.30 2.07 2.17 3.03 4 69 6 03 Year 2.36 2.10 2.06 2.71 4.86 6.03 RELATIVE PRICES. January 113 95 91 119 218 2?0 February 107 95 91 120 219 270 March 106 95 91 121 219 270 \pril 105 95 91 117 214 270 Alay 105 95 91 117 215 270 June 105 94 91 117 223 270 July 106 94 92 318 226 270 August 107 94 91 118 228 270 September 106 94 92 119 222 270 October 104 93 94 126 210 1?70 November 104 93 '95 131 210 270 December 103 93 97 136 210 270 Year 106 94 92 122 218 270 1 These realization prices, figured by Mr. C. E. Lesher, were found in the same manner as those for bituminous coal, except that the assumption was made that 10 per cent of the total output was sold on the market and 90 per cent under contract, and that the coke year was from January to December. The prices for furnace and foundry coke were averaged in accordance with the relative production of each in 1916, as reported to the Geological Survey by the producers. 2 Both of these series are presented with more detail in " The Prices of Coal and Coke," by C. E. Lesher, W. I. B. Bulletin No. 35. 190 HISTORY OF PRICES DURING THE WAR. WEIGHTED "SPOT" PRICES OF ALL CONNELLSVILLE COKE. ACTUAL PRICES PER NET TON. Month. 1913 1914 1915 1916 1917 1918 January $3.90 $1.87 $1 52 $2 96 $9.51 $6 03 February . . 2.54 1.87 1.52 3.38 9.66 6.03 March 2.42 1.92 1 52 3.48 9.66 6 03 April 2 18 1 88 1 52 2 44 7 43 6 03 May--- 2.15 1.79 1 52 2 33 7 83 6 03 June 2 13 1 77 1 57 2 51 11 26 6 03 July 2 46 1 76 1 65 2 76 12 76 6 03 August 2 51 1 72 1 52 2 82 13 59 6 03 September 2.31 1 66 1 62 2 95 11 14 6 03 October 2 10 1 61 2 04 4 85 6 00 6 03 November . 1.84 1.53 2.30 6 91 6 03 6 03 December 1 77 1 51 2 65 8 39 6 03 6 03 Year 2.36 1.74 1 75 3 8 9 9 24 6 03 RELATIVE PRICES. January 194 93 76 147 474 300 February 127 93 76 168 481 300 March 121 96 76 173 481 300 April 109 94 76 122 370 300 May 107 89 76 116 390 300 June 106 88 78 125 06! 300 July .... 123 88 82 137 638 300 August 125 86 78 140 677 300 September 115 83 81 147 555 300 October 105 80 102 149 299 300 November 92 76 115 344 300 300 December 88 75 132 418 300 300 Year 118 87 87 I'M) 460 300 (7) THE CONTROL OVER CHARCOAL. The Fuel Administrator did not bring charcoal under formal price control until the middle of 191 8. l Maximum prices were then fixed for charcoal f . o. b. cars at the point of shipment as follows : Cents. Lump in bulk, per bushel (20 pounds) 20 Lump in bags, per bushel (20 pounds) 22 Screening in bags, per bushel (20 pounds) - 20 A reasonable charge, subject to the approval of the Fuel Admin- istration, was allowed for handling and delivery where wagon de- liveries were made from the producer to the purchaser. (8) CONTROL OVER FUEL WOOD. It is of interest that the Fuel Administration on October 29, 1918, authorized the Federal fuel administrators in the various States to establish such reasonable regulations as to the length of rail ship- ments of fuel wood cut within the State as they deemed necessary, and to stipulate the conditions of such shipments. 9. GOVERNMENT CONTROL OVER PRICES. 191 (9) THE CONTROL OVER PETROLEUM. THE EARLY WAR SITUATION. The tremendous demands for petroleum and its products during the past decade brought the industry by 1915 to face a consumption demand which surpassed the annual domestic output. Indeed, for more than a year prior to the declaration of war by the United States we had been drawing upon reserve stocks and imports from Mexico in order to supply our needs. 1 The war, of course, both through the acceleration of industries and the large military consumption, in- creased the demand for petroleum products of all kinds. Moreover, the acute coal shortage and the transportation congestion of the winter of 1917-18 encouraged the substitution of fuel oil for other kinds of fuel. The demand for fuel oil, as might be expected, in- creased until a shortage developed and prices soared. Fuel oil, Avhich had previously been of secondary importance in the refining of petroleum, took the lead among the various products. THE REGULATION OF PRICES. The rise in the price of fuel oil w T as naturally reflected in the price of crude petroleum, and market quotations for the latter soon reached a level 100 per cent higher than the prewar average. 2 (See chart on p. 195.) It soon became apparent, both to the petroleum industry and the various governmental agencies, that something would have to be done toward stabilizing prices. Several suggestions were made relative to governmental intervention. The opinion of the trade was that the " price of petroleum products be fixed in the same way 1 A review of the petroleum situation in the United States immediately prior to our entrance into the war is presented at length in Bulletin 30 of the present series, " Prices of Petroleum and Its Products," by Joseph E. Pogue, assisted by Isador Lubin. (W. I. B. Price Bulletin No. 36.) 2 The following data present the course of the fuel oil and crude petroleum prices for the (5 years 1913 to 1918. Fuel oil spot quotations are not as representative of typical conditions as might be desirable, since the greater part of our supply is sold under con- tract. Tables of actual and relative realizations at a centrally located refinery, there- fore, are appended in order that the reader may obtain a truer picture of the price situation. ACTUAL REALIZED PRICES OF FUEL OIL JANUARY, 1913-DECEMBER, 1918. [Per barrel.] Month. 1913 1914 1915 1916 1917 1918 January . $2 15 $1 90 $1 55 $3 26 S3 74 9 A 7C February . . . 2. 15 90 1 50 3 26 3 gg 4 76 March..l 2 15 90 1 50 3 26 3 98 4 76 April... 2 15 67 1 50 3 02 q qa c oc Mav 2 15 55 1 50 2 79 3 45 *> 36 June 1 67 55 1 50 2 79 3 45 C OC July.... 1 67 55 1 50 2 79 o 4 = August 1 67 67 1 96 2 30 3. 93 5 36 September 1.67 .67 2 20 2 30 3 93 5 36 October ,.. 1 67 55 2 31 2 30 3 93 5 36 November 1 67 55 2 79 2 30 3 93 c oc December 1.90 55 3 26 3 26 3 93 5 36 Footnote continued on page 192. 192 HISTORY OF PEICES DURING THE WAR. that iron and steel prices were fixed." * It was not until August 18, however, that any definite action was taken in the matter, and on that date the plan (1) to stabilize the price paid for crude oil; (2) to maintain the continued and uninterrupted flow of crude oil in its present channels in so far as is practicable and just to the interests involved through the voluntary action and cooperation of the indus- try itself was inaugurated. This system of voluntary price fixing was nothing more than a voluntary agreement made by the trade whereby the prevailing market prices were to be continued without increase, and premiums were to be limited to certain fixed maxima. 2 The amount allowed for premiums varied from 10 cents per barrel of crude oil in the Appalachian districts to $1.50 for certain parts of the Mid-Continent. Footnote continued from page 191. RELATIVE REALIZED PRICES OF FUEL OIL JANUARY, 1913-DECEMBER, 1918. Month. 1913 1914 1915 1916 1917 1918 January . 125 110 90 189 217 276 February 125 110 87 189 231 276 March... 125 110 87 189 231 276 \pril 1 9 5 97 87 175 231 311 May.... 125 90 87 162 200 311 June . . 97 90 87 162 200 311 July ... 97 90 87 162 200 311 Aueust... 97 97 114 133 228 311 September 97 97 127 133 228 311 October 97 % 134 133 228 311 November 97 90 ' 162 133 228 311 December. 110 90 189 189 228 311 1 The solution of the problems relating to petroleum was centered in the hands of 'the Oil Division of the Fuel Administration, which was established on Jan. 10, 1918, with Mr. M. L. Requa as general director. From the very beginning he placed considerable em- phasis upon the price situation. Through his efforts the problem of petroleum prices was settled with a minimum of administrative interference. On Apr. 25, he approached the War Industries Board with the request that action be taken along the lines adopted for other essential commodities. The attitude of the petroleum industry toward this matter is madft evident in the following extract from Mr. Requa's letter to Mr. Baruch : " The petroleum war service commitee, as a result of an extended conference with me on the subject of prices, have requested that prices of petroleum products be fixed in the same way that steel prices were fixed. If this be done, it will greatly simplify the matter of allocation of purchases." No action, however, was taken by the War Industries Board at this time. Again on July 15, the price-fixing committee was asked to fix the price of fuel oil, especially for Navy purchases, but, this request also was followed by no action, since it was the opinion of the committee that adequate power to regulate prices of fuels lay in the hands of the Fuel Administration. 2 Many small refiners are in the habit of paying certain premiums above posted market prices of crude petroleum in order that they may obtain sufficient supplies. Mr. Requa in approving the plan referred to these premiums and their relation to the price of petroleum products as follows : " I want first to say that it is the understanding of this department that the pre- miums mentioned are to be maximum and are not to be paid unless absolutely necessary; are not to be used in justification for a demand for increased prices for refined products and that prices above existing posted prices, if justified at. all, can only be BO upon the score of existing trade practices' making such premiums necessary to permit the small purchaser to secure his crude. If Government control and direction finally follow as a national need, premiums, I believe, will be entirely wiped out, as present posted prices are in themselves ample to stimulate and encourage production." Moreover, the industry was given to understand that should the occasion arise for any readjustments in the prices of petroleum products, adequate proof of such necessity would have to be furnished. Mr. Requa goes on to say : " Broadly speaking, it is the hope of the Fuel Administration Oil Division that further advances in finished products will not be necessary ; but should it prove 4;hat GOVEE^MENT CONTROL OVER PRICES. 193 The administration of this agreement was left entirely in the hands of the trade and through a series of local and national com- mittees all points of issue were settled. Appeal to Washington was made " only as the last resort after all means of settlement had been exhausted." 1 The established prices were to affect all contracts existing on August 8 which had been entered into after May 17, 1918, and were to be in force until November 1, 1918, when they were further extended to December 16. 2 THE LICENSING OF THE PETROLEUM INDUSTBY. On January 31, 1918, a presidential proclamation required the licensing of "all firms, corporations, and associations engaged in the business of both manufacturing and distributing fuel oil" whose gross sales were more than 100,000 barrels per year. The purpose of such licensing appears to have been the regulation of the distribution of fuel oil in order that various essential consumers such as the Rail- road Administration, the Shipping Board, and the war agencies might have sufficient supplies to meet their needs. 3 A system of de- livery priorities was inaugurated and distributors w^re forbidden to deliver fuel oil to any customer in any class before fulfilling the de- mands of customers in those classes which had prior rating. In September the need for still further control of the petroleum industry led to the licensing of virtually all members of the trade with the exception of those retailers whose sales were below $100.000. Whereas formerly only dealers and producers of fuel oil were un- der direct control, now all importers, manufacturers, distributors, marketers, and transporters of petroleum and its products were placed under license. Licensees were not allowed to make unjust profits or commissions and were limited even in the storage rates they could charge. Resales and the cornering of supplies were for- bidden. Regulations as to methods of manufacturing gasoline were also put in force, so that the Army and Navy might have suf- ficient supplies of the type necessary for their operations; and cer- tain refiners were compelled to produce a specified proportion of their gasoline in accordance with Army and Navy specifications. this is not the case it means that such proof must be carefully, completely, and accurately made and presented to this department before any acquiescence or approval can be expected. 1 See letter of Mr. Requa to Mr. A. C. Bedford of the national petroleum war service committee Aug. 8, 1918. 2 The prices fixed in the respective fields were: Pennsylvania, $4; Illinois, $2.32; Mid-Continent, $2.25 ; Gulf, $1.35 ; California, $1.26. The price for the Gulf fields was later increased by Mr. Requa to $1.80 and a 10-cent per barrel increase was allowed for Illinois. An increase was also allowed in the late summer for oils mined in north Louisiana. 3 Indeed, the order of the Fuel Administrator establishing the rules governing licensees engaged in the distribution of fuel oil specifically states : " These rules and regulations are promulgated * * * for the purpose of assuring an adequate supply and equitable distribution of fuel oil for the purposes vitally essential to the national socurity and to the successful prosecution of the war." 125547 20 18 194 HISTORY OF PRICES DURING THE WAR. THE GASOLINE EMERGENCY. Even licensing, however, did not meet all the necessary require- ments of the emergency. Every effort had been made toward the production and marketing of more crude oil, so that refiners who had been compelled constantly to increase their plants might be as- sured adequate supplies. Yet the extended use of motor trucks, the demands of our submarine chasers, and our air fleet continued to draw more and more upon our resources. Our gasoline reserves were being depleted. Talk of gasoline allocation for essential use became rife, and conservation data were distributed far and wide. Finally, beginning September 1, " gasless Sunday " was inaugurated and operators of gasoline-consuming vehicles east of the Mississippi River were "requested" to refrain from using gasoline on Sundays. In addition the refinery output of gasoline was restricted as far as possible to essential uses, and producers under the license regula- tions were forbidden to make deliveries of gasoline to any cus- tomer until all orders for export to the United States Army or Navy or to the Allies had been delivered. 1 CONTROL AND ITS EFFECT UPON PRICES. The signing of the armistice, followed by the cancellation of Gov- ernment contracts, put an almost immediate end to the activities of the Oil Division of the Fuel Administration on December 7. On this date many of the license restrictions were removed and nine days later the price agreement of the previous summer terminated. On May 15, 1919, all restrictions upon the petroleum industry were removed. The leveling effect of the price agreement of the summer of 1918 is prominently brought out by the contrast between the price tend- encies of both crude petroleum and its most important products, gasoline and fuel oil, during the period of its operation and beforo that time. Still more significant, however, is the comparison between the price level of the direct petroleum products and such by-products as paraffin and petrolatum. 1 See Fuel Administration order governing manufacturers of kerosene and gasoline, Oct. 30, 1918. The above regulations and " requests " were no doubt instrumental in alleviating a situation which had become exceedingly acute, as is evidenced by a comparison of sup- plies on hand at the end of the several months of the early autumn in 1917 and 1918. Stocks were consistently smaller in 1918 than in the preceding year in spite of in- creased production, conservation measures, and the direction of distribution. STOCKS OF GASOLINE HELD IN THE UNITED STATES. Date. 1917 1918 Date. 1917 1918 July 31 Gallons. 345 199 195 Gallons. 349 928 604 Sept. 30 Gallons. 287.758,562 Gallons. 269,772.723 Aug. 31 298,548,699 285,446,538 Oct. 31 320,203,770 250,328,329 4. THE WAR INDUSTRIES BOARD. L OIL I N JANUARY II3 " DECEMBER 1910 AVERAGE: QUOTED' PRICES juLYi9i3'~juNE.i9i4-ioo The War Industries Board was the industrial pivot about which war-time controls turned. From an idea, and then a committee within the Council of National Defense, it grew quickly into the most powerful arm of the President for converting the industries into war uses. It was the meeting point of the war machine and industry. It at once cleared requirements for the Government war agencies, allocated to the trade the output of commodities required immediately or in the future, assigned priority of production and delivery to war materials, curtailed non- essential production, conserved wasteful production by vari- ous restrictions, and controlled prices. The ramifications of these controls, within the Gov- ernment and out, make them relate intimately to prices. The price control exercised by the board proper, or that ex- ercised by the price-fixing committee, can not be dis- cussed without first under- standing the relations of these other controls over industry. (i) THE DEVELOPMENT OF A CONTROL OVER WAR IN- DUSTRIES. Relative prices. Petroleum, 5 fields ; Fuel oil, 5 cities ; Gasoline, 5 cities. By months, Januaty, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) The growth of a fuller con- trol over industries was a more gradual thing than would seem from an examination simply of the finished monument. The Government, though educated in the doings of Europe for the three years previous, had not appreciated that it too might enter the combat, and had not yet prepared itself when war came. The Cabinet, high officials of the Government, and lower officials, went into all-day and evening conferences, inside the Government and 195 196 HISTORY OF PRICES DURING THE WAR. out, to learn their problem and solve it. There was no conviction, aside from the need for soldiers and ammunition, that pressed more insistently upon the Government than the need for some form of control over industry. The gradual evolution of the ma- chinery of war-time industrial control was one of the greatest of the nonmilitary developments within the Government. A full story of the rise of the War Industries Board, which was the center of that control, falls into three separate parts: (1) The early work of the general munitions board, the committee on supplies, and the committee on raw "materials, minerals and metals within the Council of National Defense; (2) the creation of the War Industries Board within the Council of National Defense on July 28, 1917; (3) and, finally, the creation of the War Industries Board as an independent organization under the Overman Act on May 28, 1918. THE EARLY WORK OF THE COUNCIL or NATIONAL DEFENSE. A comprehension of how the War Industries Board came into its control over industry can not be had without tracing its earlier growth from a mere committee of the Council of National Defense to an independent board. The Council of National Defense was con- ceived, and later authorized under the Army appropriation bill of August 29, 1916, simply as a peace-time body to work broadly upon preparedness for war. The act itself declared it to be established " for the coordination of industries and resources for the national security and welfare," and made it the duty of the Council of Na- tional Defense "to supervise and direct investigations and make recommendations to the President and the heads of executive de- partments as to the location of railroads with reference to the frontier of the United States so as to render possible expeditious concentration of troops and supplies to points of defense ; the coordi- nation of military, industrial, and commercial purposes in the loca- tion of extensive highways and branch lines of railroad ; the utiliza- tion of waterways ; the mobilization of military and naval resources for defense; the increase of domestic production of articles and ma- terials essential to the support of armies and of the people during the interruption of foreign commerce; the development of seagoing transportation; data as to amounts, location, method and means of production, and availability of military supplies; the giving of in- formation to producers and manufacturers as to the class of supplies needed by the military and other services of the Government, the requirements relating thereto, and the creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the Nation." GOVERNMENT CONTROL OVER PRICES. 197 The Council of National Defense (consisting of the Secretary of War, the Secretary of the Navy, the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Commerce, and the Secre- tary of Labor) and its advisory commission 1 had only the above general powers, as a basis in law. for the structure of control which it later built. 2 Our determination to enter upon war caught the country, except for the paper-organized Council of National Defense, quite without a Government organism to assume contiol over its industries. The need for an organized industrial fabric, moreover, was then our paramount one. The Allies needed our munitions, metals, foods, and manufactures more immediately than they needed our men. The Council of National Defense, thus long before authorized as a peace- w_ time body, was formally organized on March X 1917, and was seized ,* upon as the best available organ for the control of industry. The -^ council, which represented virtually the President's Cabinet, with'* the Secretary of War acting as chairman, and the advisory commis- sion met several times each week during the spring after our en- trance into war and planned how best to meet the war emergencies. A surprising number of the more important war agencies grew out of their early plans and their early committees. The Council of National Defense made the initial survey of the food problem which developed into the formation of a Food Administration; it created the Aircraft Production Board which later became separate ; it cre- ated an important committee on coal production which later went into the Fuel Administration ; it established the commercial economy board ; and the munitions standards board. But the three most im- portant committees which grew up under the newly organized Coun- cil of National Defense, and those which relate peculiarly to later price control, were the general munitions board, the committee on supplies, apd the committee on raw materials, minerals and metals. The general munitions board. The general munitions board, cre- ated on March 31, 1917, and going for several days under the name of the purchasing commission, began three days after we entered the war to coordinate purchases for the Army and Navy, to assist them in the procurement of raw materials, and to assign to war orders priorities as between the Government departments and between the Government and industry. Since the board was destined ultimately 1 The Council of National Defense, by authority of the statute, appointed an advisory commission of 7 members who administered the work of the council, as follows : Daniel Willard (chairman), transportation and communications; Howard E. Coffin, munitions and manufacturing ; Julius Rosenwald, supplies ; Bernard M. Baruch, raw materials, minerals, and metals; Hollis Godfrey, engineering and education; Samuel Gompers, labor: Franklin Martin, medicine and surgery. 2 See section 2 of H. R. 37498, known as the Army appropriation act. 198 HISTOKY OF PRICES DURING THE WAR. to grow into the War Industries Board, it is of peculiar interest to note the resolution by the Council of National Defense creating the general munitions board : Such committee shall have no authority at this time to issue purchase orders, make contracts or bind the Government in its purchases; all these things to be done, as at present, by the respective departments. The chairman of the committee, however, shall have authority to require, when necessary, that cer- tain (conflicting) purchases be not made until the same, with a full statement of the facts, have been submitted to the Secretaries of the War and Navy. 1 The general munitions board, moreover, at its initial meeting con- ceived as its purpose to assume the prompt equipping and arming with the least possible disadjust- ment of normal industrial conditions, of whatever forces may be called into the service of the country. The immediate efforts of the board will be directed on lines calculated to coordinate the making of purchases by the Army and Navy ; to assist in the acquirement of raw materials and of manufacturing facilities ; and to establish the precedence of orders between the departments of War and of the Navy and between the military and industrial needs of the country. 3 A perusal of the original minutes of the general munitions board shows that the board, despite its assigned narrower task, became peculiarly concerned with prices and their informal control. The board attacked, and virtually eliminated, competitive bidding by the Army and Navy for the same materials. It developed policies for the procurement of commodities required by war agents. It recog- nized from the outset that the Government, if it procured the esti- mated requirements, was confronted with the necessity of cutting down some and directing much of the industrial output, clearing all Government requirements over one table, and assigning priority of production and delivery to war materials. It helped to develop sources for rifles and other small arms, machine guns, ordnance, ammunition, gun forgings, carriages, limbers, caissons, forge wagons, military vehicles, steel helmets, armor-piercing shells, surgical sup- plies, optical glass and gauges, tools, and dies. Especial progress was made toward the production of the estimated requirements (gun forgings, small arms, ammunition, lumber for Army vehicles, and machine guns) of the Army and Navy. The real beginnings of the price-control problem came with the purchase of these materials, when the general munitions board advised the military departments how to determine prices and itself considered whether prices should be made a flat rate to the Government, or based upon cost plus a percentage of profit. 1 The general munitions board began work on Apr. 9, 1917, under the chairmanship of Frank A. Scott, and by June 30 was composed of 17 representatives from the War and Navy Departments and 6 other civilians. 2 See minutes of general munitions board for Apr. 9, 1917. GOVERNMENT CONTROL OVER PRICES. 199 No doubt the first important recognition, or grant of authority, which enabled the general munitions board to influence prices was that given on April 17, 1917, by the Secretary of War, then chairman of the Council of National Defense : The general munitions board, having been appointed by the Council of National Defense, and having been called upon to perform, among other duties, that of determining what are fair and just prices to be paid by the Government for munitions and related supplies, I authorize the general munitions board to act on questions involving the determination of fair and just prices for munitions and related supplies, when called to do so by a Department head. 1 This edict gave the munitions board, in so far as it could win coop- eration from any Government department, a free hand to determine upon and recommend " fair and just " prices for war materials. An inquiry, at a very early date, was made by the general muni- tions board into the more technical questions of how to determine " fair and just " prices and what understanding was to be made with the trade, pending that determination for purchases needed immediately. The board after a time, concluded that where a flat rate could not be agreed upon a cost plus percentage basis 'should be followed. 2 It frequently happened that certain purchases were re- quired so promptly that deliveries were delayed awaiting the de- termination of a fair price. The board, in order to hasten deliveries, was authorized in such cases to assure the manufacturers a price of actual cost plus 10 per cent of profit. 3 That general practice was often followed, in a modified form, in the later price fixing. 1 Minutes of general munitions board for Apr. 17, 1917. 2 The general munitions board, after hearing the report of its price committee, adopted the following policy on Apr. 25, 1917 : That whenever experience or public or competitive quotations make it possible for the department to be assured of the reasonableness of the price, a straight price method is to be preferred. * In cases where a flat price can not be agreed upon, it is suggested that a cost plus percentage basis be followed ; the method of figuring cost to be the one laid down in the present law providing for the payment of a munitions tax. In cases where it is desirable to use the cost plus percentage basis, but where the Government and contractor are already aware of a fair Average cost for producing the article the method might be cost plus percentage, providing that if the cost falls below the average amount prescribed, the contractor shall receive half of the saving. If the cost passes above the amount prescribed, half the excess will be deducted from the contractor's percentage of profit. 3 The minutes of the general munitions board for May 5, 1917. show the following resolution made then a policy by the board : " Resolved, That where prices of material, machinery, manufactured articles, etc., named by the manufacturers are in excess of those recently paid for similar material, and prompt action is necessary to prevent delay in actual work of manufacture, the orders for such material may be placed immediately with such manufacturers and the actual prices to be paid settled after further investigation, provided that the manu- facturer is assured of a price of actual cost plus 10 per cent after submitting com- plete and satisfactory data as to items controlling increase in cost and an affidavit as to accuracy of data." 200 HISTORY OF PRICES DURING THE WAR. Another important step toward the final plan of price control was the authorization given by the munitions board for its sub- committee (on prices) to " fix specific prices " in cases of emergency. The writing of that informal power into its minute book, though without any authority in statute, was a leap peculiarly significant as paving the way to future control. This resolution of the general munitions board, adopted May 1, 1917, says: That all questions regarding prices be laid before a general meeting of the board, except in cases where specific power is delegated by the board. How- ever, in case of emergency the chairman shall be, and he is hereby, empowered to appoint a committee to fix specific prices. The more or less formal records of the general munitions board, quite apart from the many unwritten tales that are passed from ear to ear, show clearly that the beginnings of price control date back not only before the creation of the price-fixing committee but be- fore the creation of the War Industries Board. The general muni- tions board, created by the Council of National Defense on March jH, 1917, "for the purpose of coordinating war purchases, of its own initiative concerned itself with prices. It, without the authority of a statute, studied how prices ought to be controlled and, more and more, assumed an informal control over them. The policies then elaborated comprehend to a surprising degree the essentials of the later price control. The committee on supplies. The Council of National Defense, two months before we declared war, created a committee on supplies to advise with the purchasing officers of the War and Navy Depart- ments and to help them coordinate their requirements for clothing, equipment, and subsistence. This committee, one of the first seriously to give its attention to the question of stabilizing prices, was the first to ask the Secre- tary of War to abandon the peace-time Army and Navy practice of advertising for bids. It believed that advertisements for enor- mous quantities of staples would disturb industrj^ and stimulate the inflation of prices. This change effected, the Government was en- abled to go over the heads of the middlemen directly to the manu- facturers for its purchases. In the past, when these middlemen heard of proposed Government purchases, they commonly secured options in advance upon such supplies and then quoted them to the Govern- ment at increased prices. The committee on supplies organized various subcommittees from every trade (notably cotton goods, woolen goods, knit goods, shoes, leather equipment, and canned goods), which later were made into commodity sections and assisted materially in the turning of manu- facturing plants into Government uses. GOVERNMENT CONTROL OVER PRICES. 201 The committee, in a word, concerned itself primarily with com- modities difficult to secure because . of the excessive requirements of the Government, shortage of raw material involved in their manufacture, or of the competition for civilian uses. It opened a way to later price control, in a sense, by its experience at securing options, the " pegging " of prices by various informal methods, the allocation of requirements to the industry, and by the reduction of competition between Government departments for the same goods. 1 The committee on raw materials, minerals, and metals. The com- mittee on raw materials, minerals, and metals under the direction of Bernard M. Baruch, which was the nucleus about which the com- modity sections of the War Industries Board later grew, was created to survey the supply of raw materials available for our own and allied uses. The European war needs, prior to our entrance into war, had^exTiausted many of our surplus stocks and our prewar busi- ness contracts had tied up immense quantities of the remaining stocks. Those limitations, coupled with the reduction in shipping space for imports, made the problem before the Baruch committee one of the most pressing of that time. It soon became apparent to the committee on raw materials, min- erals, and metals, after several initial inquiries, 2 that the satisfac- tion of all Government and allied commodity needs would require a thorough-going organization of industry. Mr. Baruch, himself a man of business viewpoint, put supreme confidence in widely re- spected business men and organized a series of cooperative com- mittees under their leadership. It was largely through these early contacts with the trade that hf , and his committee, were able to strike agreements for the placement of Government orders at lower than market prices. The committee gave marked impetus to the later work by the prompt organization of commodity committees for the alcohol, aluminum, anthracite and bituminous coa'l, asbestos, magnesia, roofing, brass, cement, chemicals, copper, lead, lumber, mica, nickel, oil, rubber, steel, and steel products, and zinc indus- tries. 3 The chief services, perhaps, of these commodity committees as a working part of the raw materials committee, were their, help, in providing trade information relative to supplies, their technical advice pertaining to the procurement of requirements, and their ability to hasten deliveries. 1 1 These data are taken from the first annual report of the Council of National Defense for the year ended June 30, 1917. " The committee studied the situation relative to the more- important import articles such as nitrates, pyrites, rubber, mica, tin, platinum, and palm oil. 3 Advisory committees were also appointed to cover large numbers of the various special constituent fields, as, for example, in respect to the following products : Pig iron, iron ore, tin plate, sheet steel, wire rope, malleable castings, ferroalloys, tubular products, cold-rolled and cold-drawn steel, pig iron, wire products, and scrap iron and steel. 202 HISTORY OF PRICES DURING THE WAR. The foregoing beginnings of industrial control form a background of all control over prices later exercised by the War Industries Board. The committee on raw materials early recognized the need for stabilization of the market and for the purchase of Government requirements at reasonable prices. The committee itself, for example, as early as March, 1917, arranged informally for the purchase of 45,000,000 pounds of copper at 16| cents at a time when the prevailing market price was 35 cents. Soon afterwards a trade agreement was made for the purchase of 500,000 tons of steel at a price over one- third below the market price; and large purchases of zinc and lead were also bought at like reductions. The committee, through the cooperative subcommittee on lumber, " pegged " lumber prices below the prevailing market and effected an estimated saving to the Gov- ernment of SlOjOOO^OO. 1 These and other similar agreements all, it should be emphasized, were of a highly informal character. But, as such perhaps, they served the more to impress the Government and the trade with a confidence in prices jointly made. That belief, whether for better or worse, played a leading role in the subsequent system of price control. THE WAE INDUSTRIES BOARD CREATED UNDER THE COUNCIL ON JULY 28, 1917. The Council of National Defense, recognizing shortly the need for a broader control over industry, created the War Industries Board on July 28, 1917. The creation of the new board, approved by the President, emphasized simply the urgency for more control than the general munitions board, the committee on supplies, and the committee on raw materials, minerals and metals had been ex- ercising. It, therefore, was empowered to exercise control over more industries than had the general munitions board and to take over bodily the whole of the committee on supplies, and that on raw ma- terials with the numerous commodity committees under it. 2 In these three early committees of the Council of National Defense the newly created War Industries Board had its nucleus. The official announcement of the creation of the War Industries Board declared that it was to act " as a clearing house for the war-industry needs of the Government, determine the most effective ways of meeting them, and the best means and methods of increasing production, including the creation or extension of industries de- manded by the emergency, the sequence and relative urgency of the 1 These data are set "forth in the first annual report of the Council of National De- fense, issu'ed for the fiscal year ended June 30, 1917. 2 Mr. Frank A. Scott, who had been chairman of the general munitions board of the council, was retained as chairman of the new board. The chairmanship, later in the fall, was given to Mr. Daniel Willard. GOVERNMENT CONTROL OVER PRICES. 203 needs of the different Government services, and consider price fac- tors." The board, under this definition of powers, after taking juris- diction over the work of the various advisory committees on raw materials and supplies, within a few months re-formed those com- mittees into what later became commodity sections. 1 The appointment of Chairman Baruch'. A noteworthy reorgani- zation of the internal work of the War Industries Board, and one which went far toward placing it upon its final basis, occurred when the President asked Mr. Bernard M. Baruch to become its chairman on March 4, 1918. The President had by then become impressed with the need for even a more far-reaching control over industry than the law specifically provided or than had been yet exercised by the Council of National Defense or the 7-month-old War Industries Board. He, therefore, upon the apointment of Mr. Baruch, redefined the functions of the board and read into them a number of sweeping war powers. This broad survey of powers to be exercised made Mr. Baruch " the general eye of all supply departments in the field of industry," responsible to anticipate prospective requirements of the Government and to turn the full capacity of the country to their production. It made his board responsible to create new facilities and to find new sources of supply; to advise the Government pur- 1 There follows a statement in full of the official outline of the powers and organi- zations of the War Industries Board as created on July 28, 1917 : The board will act as a clearing house for the war-industry needs of the Government, determine the most effective ways of meeting them, and the best means and methods of increasing production, including the creation or extension of industries demanded by the emergency, the sequence and relative urgency of the needs of the different Government services, and consider price factors and, in the first instance, the industrial and labor aspects of problems involved and the general questions affecting the purchase of commodities. Of this board Mr. Baruch will give his attention particularly to raw materials, Mr. Brookings to finished products, and Mr. Lovett to matters of priority. These three members, in association with Mr. Hoover so far as foodstuffs are involved, will con- stitute a commission to arrange purchases in accordance with the general policies formu- lated and approved. The Council of National Defense and the advisory commission will continue un- changed and will discharge the duties imposed upon them by law. The committees here- tofore created immediately subordinate to the Council of National Defense, namely, labor, transportation and communication, shipping, medicine and surgery, women's de- fense work, cooperation with State councils, research and inventions, engineering and education, commercial economy, administration and statistics,, and inland transportation, will continue their activities under the direction and control of the council. Those whose work is related to the duties of the War Industries Board will cooperate with it. The subcommittees advising on particular industries and materials, both raw and finished, heretofore created, will also continue in existence and be available to furnish assistance to the War Industries Board. The purpose of this action is to expedite the work of the Government, to furnish needed assistance to the departments engaged in making war purchases, to devolve clearly and definitely the important tasks indicated upon represen- tatives of the Government not interested in commercial and industrial activities with which they will be called upon to deal, and to make clear that there is total disassocia- tion of the industrial committees from the actual arrangement of purchases on behalf of the Government. It will lodge responsibility for effective action as definitely as is possible under existing law. It does not minimize or dispense with the splendid service which representatives of industry and labor have so unselfishly placed at the disposal of the Government. 204 HISTORY OF PRICES DURING THE WAR. chasing agents relative to prices that ought to be paid; and to de- termine priorities in production and delivery. It is of especial inter- est that in this letter the President asked Mr. Baruch, as chairman, to be governed in his determination of prices by a committee sitting with him, and consisting of members of the board charged with the study of raw materials and manufactured products, the labor mem- bers of the board, the chairman of the Federal Trade Commission, the chairman of the Tariff Commission, and the Fuel Administrator. 1 1 There follows a copy in full of the letter written to Mr. Bernard M. Baruch from the White House on Mar. 4, 1918, and redefining the work to be done by the War In- dustries Board under his chairmanship : MY DEAR MR. BARUCH : I am writing to ask if you will not accept appointment as chairman of the War Industries Board, and I am going to take the liberty at the same time of outlining the functions, the constitution, and action of the board as I think they should now be established. The functions of the board should be: (1) The creation of new facilities and the disclosing, if necessary the opening -up, of new or additional sources of supply ; (2) The conversion of existing facilities, where necessary, to new uses ; (3) The studious conservation of resources and facilities by scientific, commercial, and industrial economies ; (4) Advice to the several purchasing agencies of the Government with regard to the prices to be paid ; (5) The determination, wherever necessary, of priorities of production and of delivery and of the proportions of any given agencies when the supply of that article is in- sufficient, either temporarily or permanently ; (6) The making of purchases for the Allies. The board should be constituted as at present and should retain as far as necessary and so far as consistent with the character and purposes of the reorganization, its present advisory agencies, but the ultimate decision of all questions, except the de- termination of prices, should rest always with the chairman, the other members acting in a cooperative and advisory capacity. The further organization of advice I will in- dicate below. In the determination of priorities or production, when it is not possible to have the full supply of any article that is needed produced at once, the chairman should be assisted, and so far as practicable guided, by the present priorities organization or its equivalent. In the determination of priorities of delivery, when they must be determined, he should be assisted when necessary, in addition to the present advisory priorities organization, by the advice and cooperation of a committee constituted for the purpose and consisting of official representatives of the Food Administration, the Fuel Administration, the Railway Administration, the Shipping Board, and the War Trade Board, in order that when a priority of delivery has been determined there may be common, consistent, and concerted action to carry it. into effect. In the determination of prices the chairman should be governed by the advice of a committee consisting, besides himself, of the members of the board immediately charged with the study of raw materials and of manufactured products, of the labor member of the board, or the chairman of the Federal Trade Commission, the chairman of the Tariff Commission, and the Fuel Administrator. The chairman should be constantly and systematically informed of all contracts, pur- chases, and deliveries, in order that he may have always before him a schematized an- alysis of the progress of business in the several supply divisions of the Government in all departments. The duties of the chairman : (1) To act for the joint and several benefit of all supply departments of the Gov- ernment ; (2) To let alone wfcat, is being successfully done and interfere as little as possible with the present normal processes of purchases and delivery in the several departments ; (3) To guide and assist wherever the need for guidance or assistance may be re- GOVERNMENT CONTROL OVER PRICES. 205 THE WAR INDUSTRIES BOARD MADE INDEPENDENT UNDER THE OVERMAN ACT ON MAY 28, 1918. A still further independence was given the War Industries Board on May 28. 1918, when, by the authority of the Overman Act, the President separated the board from the Council of National Defense. There were, it appears, no additional powers over industry granted to the board in law or in proclamation by virtue of its new inde- pendent status. It was set apart from the Council of National De- fense, and given its independence, by an Executive order. But that order did not itself, nor did any accompanying proclamation, set up new functions or powers. The order, indeed, specifically referred to the previous letter written to Mr. Baruch on March 4, 1918, and de- clared that the functions, duties, and powers of the War Industries Board, as outlined there, " shall be and hereby are continued in full force and effect." (2) THE POWERS AND POLICIES OF THE WAR INDUSTRIES BOARD. A search after the powers and policies of the War Industries Board leads to such a dearth of material that it is curious how industry was put under control so easily. That board, though charged with the control of all industry save food and fuel, had a more doubtful statutory basis for pushing rigid control policies than any other war board. It had fewer specific powers in law than either of the boards responsible for controlling simply the food and fuel phases of in- dustry respectively. But, despite all, the War Industries Board gradually assumed the functions of coordinating Government pur- chases and of maintaining a widespread and effective control over industry. It is of interest to trace the basis in law for all of this war-time control, the policy of control which Mr. Baruch sponsored, the scheme of organization he administered, and finally, the relation which the work of the board itself bore to the regulation of prices. vealed ; for example, in the allocation of contracts, in obtaining access to materials in any way preempted, or in the disclosure of sources of supply ; (4) To determine what is to be done when there is any competitive or other conflict of interest between departments in the matter of supplies ; for example, when there is not a sufficient immediate supply for all and there must be a decision as to priority of need or delivery, or when there is competition for the same sources of manufacture or supply, or when contracts have not been placed in such a way as to get advantage of the full productive capacity of the country; (5) To see that contracts and deliveries are followed up where such assistance as is indicated under (3) and (4) above has proved necessary; (6) To anticipate the prospective needs of the several supply departments of the Government and their feasible adjustment to the industry of the country as far in ad- vance as possible, in order that as definite an outlook and opportunity for planning as possible may be afforded the business men of the country. In brief, he should act as the general eye of all supply departments in the field of industry. Cordially and sincerely yours, (Signed) WOODROW WILSON. 206 HISTORY OF PRICES DURING THE WAR. ITS BASIS IN LAW. It is not difficult to find all of the basic powers that were given to, and taken by, the War Industries Board to authorize its controls. The mandates of the War Industries Board, with scarcely a single exception, were accepted throughout the Nation, as authoritative arrangements for the general good, without question as to the author- ity upon which they were issued. The war-time spirit of the country and its industry was, in the main, weapon enough to enforce any regulation necessary for the common weal. But, withal, the com- pulsory forces behind the war-industry controls exercised by the board were not altogether lacking. They came, directly or indi- rectly, from the Army appropriation act, which was made law on August 29, 1916 and authorized the creation of a Council of National Defense; the President's well known letter of March 4, 1918; the Overman Act ; and other grants of lesser importance. 1 The Army appropriation act, of which the pertinent section was analyzed earlier in the chapter, authorized the creation of a Council of National Defense. 2 It was given power to investigate and rec- ommend to the President and heads, of the executive departments in matters relating to the location of railroads to help concentrate troops and supplies most expeditiously ; the coordination of military, industrial, and commercial purposes in the location of highways; the utilization of waterways ; the increase of domestic production of articles and materials essential to the support of armies and of the people during the interruption of foreign commerce; the develop- ment of sea-going transportation; data as to amounts, location, 1 A brief digest is here given of the various statutes from which the War Industries Board claimed power to enforce its mandates either directly or indirectly. The Council of National Defense act (39 Stat., 619) authorized the President to take possession and assume control of systems of transportation. The naval emergency fund act (39 Stat., 1168) authorized the requisition of raw materials for the Navy and, in so far as they pertained to aircraft, for the Army. The emergency shipping fund act (40 Stat., 182) authorized requisition of materials for ships ; the food control act (40 Stat., 276) granted requisitory powers over foods, fuels, and other supplies necessary to the support of the Army, the maintenance of the Navy, or any other public use connected with the common defense, over storage facilities for supplies, over plants for the pro- duction of such supplies, over plants for production or merchandising of coal and coke, and over distilled spirits. A power of compulsory order with penalties for refusal was granted in the national defense act (39 Stat., 166). These, with various, powers of regulation and license granted in the food and fuel acts, the espionage and trading- with-the-enemy act (40 Stat., 225; and 40 Stat., 411), and the power of regulation of prices granted in the former act, and of priorities in transportation iinder the priority in transportation act of Aug. 10, 1917 lodged in various agencies of the Government such power to vitalize governmental preferences in particular fields as to render a com- plete system of such preferences practicable. While these powers were not given to the War Industries Board in specific statutory terms, by close cooperation between the agencies to which they were granted, and by the transfer of power to the War In- dustries Board under the Overman Act, the whole legislative mechanism was amply sufficient to have enforced the execution of all directions that were given. 3 That section, quoted earlier in the chapter, is Section 2, H. R. 17498. GOVERNMENT CONTROL, OVER PRICES. 207 methods, and means of the production of military supplies ; inform- ing the producers and manufacturers what classes of supplies are required by the Government ; and, from the standpoint of the study at hand, most important of all, " the creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the nation." It was primarily under this last general grant of power that the Council of National De- fense found statutory authority for setting up, as a part of it, a so- called War Industries Board. 1 The Army appropriation act, authorizing the parent council, gave it power specifically to do no more than "supervise and direct investigations and make recommendations to the President and the heads of executive departments." The War Industries Board, as a creature of the council, had no leg in law more firm to stand upon than that early fragmentary power given during peace time. More specific far, if not more basic, than the clauses of the Army appropriation act were the functions which the President inter- preted under it in his letter of March 4, 1918. That letter, writ- ten by authority of the above act and his general war powers, was the- immediate and most definite of all grants of power made to the War Industries Board. In it, after appointing a new chairman of the board, he redefined its functions to include the creation of new facilities and disclosing new sources of supply; conversion of existing facilities to new uses; conservation of resources and facili- ties by scientific, commercial and industrial economies; advice to the Government purchasing agents with regard to prices to be paid ; the determination of priorities in production and delivery where necessary; and the making of purchases for the Allies. Then apart from the above powers and duties assigned by him to the board as a whole, the President made it the duty of the chairman to act for the joint and several benefit of all supply departments of the Government; to guide and assist in allocation of contracts, in obtaining access to materials, the finding of new supplies or what- ever need may be revealed; to determine how to eliminate conflict of interest between departments in the matter of supplies; to see that contracts and deliveries are followed up; to anticipate the re- quirements of the Government and to meet them. 2 The act creating the council, while not defining the methods to be followed in planning the "concentration and utilization of the resources of the Nation," had placed, on the other hand, no restric- 1 The Council of National Defense was given authority by the act itself ' to organize subordinate bodies for its assistance in special investigations, either by the employment of experts or by the creation of committees of specially qualified persons to serve with- out compensation, but to direct the investigations of experts so employed." 2 Letter of the President to Bernard M. Baruch of Mar. 4, 1938. 208 HISTORY OF PRICES DURING THE WAR. tions upon the council within its general grant of power. The President's letter, though more specific and sweeping in its enu- meration of powers, did clamp upon the War Industries Board as such two distinct restrictions in power. The President specifically asked Mr. Baruch, as chairman of the War Industries Board, "to let alone what is being successfully done and interfere as little as possible with the present normal process of purchases and delivery in the several departments." The other, and for this inquiry more pertinent, restriction upon the War Industries Board and its chair- man was the limitation placed upon its right to fix prices. The President left the final decision of all questions relative to its control over industry, except the determination of prices, with its chairman. This specific exception was striking, and gave rise to the creation by the President of a price-fixing committee. The passage of the Overman Act on May 20, 1918, 1 gave a new face, if not a new content, to the powers of the War Industries Board. One of the purposes of the act was the "better utilization of re- sources and industries," but under it the President was given no new powers other than those pertaining to a redistribution of functions, duties, and powers already conferred by law. It authorized him, as he did on May 28, 1918, to break the War Industries Board apart from the Council of National Defense and set it up as a body quite independent and charged to perform the duties outlined in his earlier letter. That separation itself gave a considerable show of added authority, which for war-time purposes was about as effective as additional statutory powers. The basis in law of the creation and powers of the War Industries Board, then, was not as firm or definite as that of the Food Adminis- tration and Fuel Administration. The latter were the creatures of specific legislative action by the Congress after we had entered the war 2 and were given very definite war-time controls to administer with ample power and with the enforcement of penalties. The War Industries Board was the creature of a peace-time statute, adopted as the nearest authority at hand for a makeshift but immediate or- ganization of the board, and later filled with new purpose and in- spiration by a letter from the President. The war-time spirit of the country was an immeasurable power upon which to draw for the enforcement of regulations. It is much more evident that the War Industries Board sadly lacked a full grant of legislative power than that it suffered much from the lack. 1 See S. 3771 for Overman Act in full. 2 Created by the food and fuel act of Aug. 20, 1917. GOVERNMENT CONTROL OVER PRICES. 209 THE POLICY OF Mil. BARUCH. The paucity of power given by law to the War Industries Board and, more especially, the ill-defined character of that power, aroused a lively interest in the policies of Mr. Bernard M. Baruch. He, it might be supposed, had at his disposal a wider freedom to control after his own fashion than had any other industry-controlling chair- man at Washington. If the Congress had not created his board by special enactment, neither had it defined his course for him or tied his hands. Mr.* Baruch, with the war on, was not in need of more far-reaching powers unless he contemplated somewhat radical regu- lation. He did not, in point of fact, complain of lack of power or go to the Congress for more. It might from these points be inferred, as was a fact, that Mr. Baruch by necessity and by choice ordinarily did not announce policies of control until each problem arose and was attacked. -There is little more to say of his policies than that he went before the country with no hard and fast policies of control ; he dele- gated the making and administering of those policies to commodity chiefs, known as " dollar a year " men, and chosen from the trade ; and that he maintained a well-planned organization of contacts with all of the Government and the industry. The problem put to the War Industries Board was too involved, difficult, and big to state in a word or comprehend at once how best to attack it. The Board became virtually responsible for turning the whole of industry, save the food and fuel industries, into war uses. But, except where there appeared a war requirement to fill, it pursued religiously a policy of noninterference. The task of fulfill- ing Government and allied orders made the War Industries Board deal, in the main, with the big-business end of industry, much as the task of conserving foods made the Food Administration deal so largely with the smaller dealers and consumers. The regulation of the steel industry, which was said to be controlled by seventeen men who could be gathered into one room at Washington, required a quite different method from that applicable to the regulation of wheat. Mr. Baruch, himself strictly a business man by experience and point of view, was in a strategic position to fraternize with the trade and give it a more tolerant attitude toward Government interference. He, as they knew, had been in Washington a full year when the President asked him to take the chairmanship of the War Industries Board on March 4, 1918. During that time, furthermore, he had mixed freely with them and convinced them that he was bent upon no revolution of industry and would ask nothing beyond what was vitally needed in war time. 125547 20 14 210 HISTORY OF PRICES DURING THE WAR. There seemed to Mr. Baruch no occasion for wide publicity or propaganda among the millions of small dealers and consumers, and the majority of contacts made by the board with the country were made informally around conference tables with the leaders of industry. He preferred frankly, as necessity to control an addi- tional industry arose, to meet that industry separately and make individual agreements which seemed at the time the most expedient. Mr. Baruch, therefore, did not during the whole war formulate and advertise any general or dominating principles of industrial control. As said above, it was the policy of Mr. Baruch to delegate the making and administration of detailed policies to his " dollar-a- year " men, whom he had called to the board from the trade. These commodity chiefs, who were presidents and managers of large firms during peace time, brought the Government and the industry quickly together. All of them, through the cooperation of hundreds of war- service committees authorized to speak for the various trades, main- tained an intimate and frequent contact with -production and price conditions of each important raw material and finished product. They formed the most ready and most effective of all the links between the Government and industry. The most distinguished of all the policies of Mr. Baruch was found in the organization of con- tacts. He believed thoroughly in, and did develop, a wide scheme of contacts within the Government and out. One of the first things which Mr. Baruch set out to do, when he came into the chairmanship of the board, was to perfect and establish lines of personal contact with every war agent of the Government and every organized branch of war industry under his control. THE ORGANIZATION OF THE BOAED. There is little danger of emphasizing too often the value to the war-industry control, realized through the organization scheme of the War Industries Board. That board was made at every angle to synchronize Government requirements and supply. The functions of gathering requirements, clearing purchases, allocating orders to the trade, making procurements, determining priorities in production and delivery, curtailing less or nonessential production, instituting conservation programs, and controlling prices were conceived and assigned to distinct divisions of the War Industries Board. Each commodity section, headed by a chief from the board proper, was composed of niembers from all other Government purchasing agencies interested in that particular commodity. The chief, through his war-service committees, was also as closely affiliated in contact with the trade. Each commodity section, then, to a smaller degree, was the center of information pertaining to the demand and supply of its GOVERNMENT CONTROL OVER PRICES. 211 particular commodity as was the Board for the whole of industry. 1 These smaller sections were organized in larger divisions subordinate to the board proper consisting of Chairman Bernard M. Baruch, a vice chairman who also represented the allied purchasing commission, a representative of the Army, a representative of the Navy, the priori- ties commissioner, the chairman of the price-fixing committee, a representative of labor, the director of steel, the commissioner of finished products, and a technical advisor. THE RELATION OF THE BOARD TO PRICE FIXING. Scarcely an important action was taken by the War Industries Board which did not affect prices, and account should be taken of 1 A clearer idea of the important organization scheme, set up by the War Industries Board, to unite Government requirements and industry production, as it stood at the signing of the armistice, follows : Organisation scheme of the War Industries Board. Divisions : Building materials division, chemical division, conservation division, division of planning and statistics, ex- plosives division, facilities division, finished products division, hide, leather, and leather goods division, labor division, price fixing committee, priorities division, pulp and paper division, purchasing commission for the Allies, requirements division, steel division, textile division. Sections : Acids and heavy chemicals section (chemical divi- sion), agricultural implements, animal and hand-drawn vehicles, and wood products section, alkali and chlorine section (chemical division), automotive products section, belting section (hide, leather, and leather goods division), boot and shoe sec- tion (hide, leather, and leather goods division), brass section, bureau of warehouse distribution (steel division), chain section, chemical glass and stoneware section (chemical division), clearance office, coal-gas products section (chemical division), cotton and cotton linters section (textile division), cotton goods section (textile division), crane section, creosote section (chemicals division), division of business administration, domestic skins and hides section {hide, leather, and leather goods division), electrical and power equipment section, electrodes and abrasives section (chemical division), elec- tric wire and cable section, emergency construction committee, ethyl alcohol section (chemical division), felt section (textile division), ferro-alloys section (chemical divi- sion), fiber board and container section (pulp and paper division), fire prevention section, flax products section (textile division), forgings, guns, small arms, and small-arms ammunition section, gloves and leather clothing section (hide, leather, and leather goods division), gold and silver section (chemical division), hardware and hand tool sec- tion, harness and personal equipment section (hide, leather, and leather goods division), hides and skins section (hide, leather, and leather goods division), inland traffic section, iron and steel scrap section (steel division), jute, hemp, and cordage section, knit goods section (textile division), labor section (priorities division), legal section, lumber sec- tion, machine tool section, manufacturing section (pulp and paper division), medical section, mica section (chemical division), military optical glass and instrument section, miscellaneous chemicals section (chemical division), miscellaneous commodities section, news section committee on public information, newspaper section (pulp and paper division), nitrates section (chemical division), nonferrous metals section, nonwar con- struction section, paint and pigment section (chemical division), paper economies section (pulp and paper division), periodical section (pulp and paper division), platinum section (chemical division), power section, projectile steel rails, alloy steel, and cold-drawn steel section (steel division), permit section (steel division), pig iron section (steel division), price section (division of planning and statistics), railway equipment and supply section, refractories section (chemical division), resources and conversion section, rubber section (textile division), sheepskin and glove leather section (hide, leather, and leather goods division), silk section (textile division), sole and belting leather section (hide, leather, and leather goods division), special advisory committee on plants and munitions, statis- tics section (steel division), steel products section (steel division), stored materials sec- tion, sulphur-pyrites section (chemical division), synthetic dye and intermediate section (chemical division), tanning materials and vegetable (lye section (chemical division), technical and consulting section (chemical division), tin section, tobacco section, upper, harness, bag, and strap leather section (hide, leather, and leather goods division), wood chemicals section (chemical division), woolens section (textile division), wool section, domestic (textile division), wool section, foreign textile division). 212 HISTORY OF PRICES DURING THE WAR. till that the board did if it is hoped to tell in full the tale of war- time control over prices. But, strictly speaking, the War Industries Board was not a price- fixing agency and had no independent hand in the fixing of prices. The price-fixing committee, while popularly thought a creature of the War Industries Board and under its directions, was really created by the President as an organization independent of the board. It will be recalled that the President, in his letter .of March 4, not only failed to give the War Industries Board powers to control prices, but specifically limited it in that power. He gave the chair- man a free hand in all other delegated controls, " except the deter- mination of prices," and declared that In the determination of prices the chairman should be governed by the advice of a committee consisting, besides himself, of the members of the Board imme- diately charged with the study of raw materials and of manufactured products, of the labor member of the board, of the chairman of the Federal Trade Com- mission, the chairman of the Tariff Commission, and the Fuel Administrator. 1 It seems doubtful, in view of these limitations, whether any con- siderable formal power to fix prices was given to the War Industries Board of itself. The commodity chiefs, again and again, however, came to informal agreements with the trade and in reality often de- termined what prices should be asked of the Government and the civilian trade. The board worked hand in glove with the price-fixing committee and, in a large way, was the administrative organ to which the committee looked for the enforcement of prices which it- fixed. (3) THE KINDS OF CONTROL EXERCISED. Once the War Industries Board had learned the problem facing it, and saw that it must make itself the Government clearing house for war-time industrial needs, there was presented the necessity for or- ganizing controls to that end. The departments came with war re- quirements, and left it to the War Industries Board to meet them as it would. No war board at Washington undertook such a multi- plicity of controls, for no other covered a field so wide. It was re- sponsible virtually for the whole of industry save food and fuel, and had to administer it by the use of many quite distinct forms of con- trol. Any person who served with the War Industries Board instinc- tively thinks of its work under the technical terms, " requirements," " clearances," " priorities," " allocations," " curtailments," " conserva- tion," " prices," and others of lesser importance. Each of these spe- cial kinds of control affected prices and, indeed, might be called phases of price control. No study of the problem touching Govern- T The price-fixing committee, with Mr. Robert S. Brookings as chairman, was ap- pointed by the President and had its first meeting Mar. 14, 1918. GOVERNMENT CONTROL OVER PRICES. 213 ment control over prices could claim comprehensiveness without some analysis of these phases. REQUIREMENTS. There were few problems which Mr. Baruch at the outset saw more clearly than the need for a mechanism to receive and classify Government requirements. He impressed that fact, through his chiefs, upon the^ Government and on April 2, 1918, announced the creation of a new requirements division. It was, in a sense, the funnel through which the Government sent its requests for com- modities to the War Industries Board preparatory to later clearance and allocation. It was the organ which Mr. Baruch set up in re- sponse to the President's letter asking him to keep " as far in ad- vance as possible" a watch of the " respective needs" of the Govern- ment and Allies and saying that he " should be constantly and scien- tifically informed of all contracts, purchases, and deliveries in order that he may have always before him a schematized analysis of the progress of business in the several divisions of the Government in all departments." The new requirements division, as conceived by the President and by his newly appointed chairman, was to be the focus of all the war-industry controls over the production and distribution of raw materials or finished products required by the Government or her Allies. There passed through it during the war literally thousands of requirements. 1 The requirements division, because designed to bring to one table all Government requirements, was organized to include representa- tives from all agencies which made considerable purchases for war purposes in the Government and out (Army, Navy, Emergency Fleet, Marine Corps, Railroad Administration, Housing Corporation of the Department of Labor, Purchasing Agency of the Panama Canal, Allied Purchasing Commission, Eed Cross, Y. M. C. A., Knights of Columbus, and the Commission on Training Camp Activities). The Food Administration and Fuel Administration, too, were given opportunity to attend the meetings when they desired projects that involved materials, supplies, facilities, electrical power, fuel or trans- portation affecting the industries. The requirements division, though loosely organized enough to permit changes and the entrance of new representatives from time to time, consisted of its chairman and the more important divisional heads of the War Industries 1 The records of the requirements division show that the consecutive numbers of separate requirements totaled five thousand odd, which included all of the Government and part of the allied requirements handled. But in addition, there were hundreds of allied requirements not so numbered. The bulk of all these requirements did not start coming in until the fall of 1918, when, sometimes, several hundred came in a single morning. 214 HISTORY OF PRICES DURING THE WAR. Board, assembled in conference with the supply heads for the Gov- ernment and the Allies. 1 It took, in point of fact, soiree months to impress the Government and the Allies with the necessity for a strict and constant estimate of future requirements. That shortsightedness gave the War Indus- tries Board one of its most difficult problems. A vast number of the shortages had come simply from failure to look ahead for needs. The new requirements division, therefore, devoted itself to the task of gathering future requirements and left the immediate needs to the clearance committee. The work of the division, as the plan behind it gradually took root, grew tremendously in importance and in effectiveness. The routine by which all requirements were received at a central point and distributed to the commodity chiefs is indicative of the policy behind the whole scheme. The various Government and allied representatives, who throughout Washington on the day previous had made new requirement estimates, brought those requirements to the War Industries Board each morning. They were there read aloud in the requirements division and, as the representatives chose, discussed. The discussion did not, of course, turn upon whether the future requirement should be allowed or disallowed. That determination was left to the time when these requirements should ripen into clear- ances. It turned rather upon whether there was a shortage and, if so, how the requirement should be met. The requirements, after the meeting, were sent forthwith to the commodity chiefs of the War Industries Board. These commodity sections, each headed by a chief representing the War Industries Board, included representatives from each supply department of the Government interested in the commodity required. It was the business of the commodity chief, with the advice of his section members, to find ways to meet the requirements and, later on, to allocate them. The department which originally submitted the requirement was expected to keep account of it through a repre- sentative in the commodity section to which the requirement had been referred. At the last, the commodity chiefs were asked to fill out a blank for the requirements division in receipt of each requirement, stating in detail whether and how the industry could meet the 1 The requirements division, as originally organized, was made to include Mr. Alex. Legge (chairman), the executive secretary of the War Industries Board, the priorities com- missioner, the chief of finished products division, the chief of the iron, steel, and steel products division, the chief of the chemicals and explosives division, the chief of the nonferrous metals section, one or more representatives of the War Department, one or more representatives of the Navy Department, a representative of the Marine Corps, one or more representatives of the Emergency Fleet Corporation, and a representative of the Railroad Administration. Later, Mr. James Inglis and finally Mr. W. E ; Guylee was made secretary. 'GOVERNMENT CONTROL OVER PRICES. 215 requirement. Each commodity chief was asked to consider market conditions pertinent to the requirements ; recommend purchase plans to the several purchasing departments ; and, if it seemed necessary to control an industry in whole or in part by allotments, to determine the allocation of materials, commodities, and facilities to the several Government departments, Allies, and to civilians. CLEABANCES. The War Industries Board, with all of its emphasis upon the need for anticipating and recording future Government requirements, had only perfected its mechanism to that end a short while before the armistice was declared. These so-called requirements, as time went on, each ripened into a clearance and in theory every clearance should have been anticipated in some previous requirement. A " requirement," as commonly termed, was a future requirement, and a " clearance " was an immediate requirement. The one in logic preceded the other. But, in point of practice, under the intense pressure of their other work the officials found it exceedingly difficult to estimate their requirements until the very hour when there came a pressing need for them. The beginnings of clearances, therefore, date back to the start of the war and they far exceed the estimated requirements which were sent to the requirements division prior to their being actually cleared. The clearance committee. The General Munitions Board at the beginning of the war saw the necessity for coordinating the pur- chase branches of the Government, 1 and created under it a clearance committee comprising a chairman, a secretary, and representatives from the General Staff, the separate purchase branches of the Army, the Navy, the Allied Purchasing Commission, the Marine Corps, and the important sections of the General Munitions Board. 2 This early committee attempted to bring together the purchasing of war mate- rials, to adjust matters of priority between the various departments and to keep a watch over shortages of materials. One of the most important of the early functions, perhaps, was the meeting ground it afforded to the supply bureaus of the Army. In May, 1918, however, the Army centralized its own purchases in a newly created purchase and supply branch of the purchase, storage, and traffic division. There was then less occasion for the Army to send more than one representative to the clearance committee conferences. ir The Council of National Defense first asked the General Munitions Board to make clearances on Apr. 28, 1917. 2 Mr. Frank A. Scott was made chairman of the clearance committee at its inception. When he resigned the chairmanship passed to Lieut. Col. C. C. Bolton, who held it until the reorganization of the committee, when Rear Admiral F. F. Fletcher was made chairman. 216 HISTORY OF PRICES DURING THE WAR. The clearance committee, by coordinating all supply purchases, elimi- nated in large measure competitive bidding by various branches of the Government for the same material. It took especial interest in watching prices and, where there appeared shortages of materials, issued clearance lists. But it became more and more difficult for the clearance committee, even as reorganized in May, to handle the volume of work before it. The numbers of immediate requirements that needed clearance each morning grew into the hundreds and made utterly hopeless any more than a mere perfunctory reading of them at the clearance committee meetings. The enormous increases in Government purchases, though none the less demanding coordination or clearance, gave the committee more work than it could do either with care or expedition. That con- sideration, and the development of the commodity sections within the War Industries Board, contributed to another and final organiza- tion of the clearance work. The commodity sections, after a time, were made to include representatives from each of the Government purchasing agencies. Obviously, then, the logical disposal for the clearance committee to make of each immediate requirement was to clear it directly through the commodity chiefs. These reasons ex- plain why the deliberative work became less and less important and the routine of distributing clearances more and more so. They ex- plain why, in a word, the old clearance committee was abolished on July 24, 1918, and its work was delegated to a newly created clearance office within the requirements division. The clearance office. It was the business of the clearance office to receive all requests for clearances, record them, and distribute them promptly to the proper commodity sections. It had, furthermore, to urge action by the commodity sections and, after clearance, to in- form every purchasing department of the Government of the pros- pective purchases of every other department. Throughout the war there were cleared, by the clearance committee and later by the clear- ance office, altogether 29,000 immediate requirements. Of that total, 80 per cent emanated from the War Department, 15 per cent from the Navy Department, and 5 per cent from the other departments. It is interesting and relevant to note that the War Industries Board granted about 95 per cent of all requests for clearance and that 5 per cent were refused by reasons of adjustment of war needs between ourselves and the Allies. The War Industries Board was, of course, the central point to which all prospective war purchases were brought for clearance. It, therefore, required that all Government departments report such purchases to its clearance office in so far as they appeared on a confidential so-called clearance or " shortage " list. GOVERNMENT CONTROL OVER PRICES. 217 TTie clearance list. Xo bureau of the Government had such a check upon shortage of supplies as had the War Industries Board through its clearance work. There was early made up as a working basis a clearance list, upon which were entered from time to time the specific articles of which there was shortage and for which clearance was required. The practice at the start was to list separate com- modities as necessity demanded. The clearance office later, however, made the sweeping additions to the clearance list of all schedules of prospective purchases involving orders for any articles or commodities, to be placed in the congested district, which orders shall call for or involve the creation or use of additional fuel, power, or transportation facilities, and all schedules of prospective purchases involving the creation of new or addi- tional facilities wherever placed and however created. The clearance list, in point of fact, came at last to cover virtually the whole list of important war-making materials. 1 1 There follows a copy of the clearance list (or "shortage list") as it stood at the signing of the armistice. Clearance list. Before negotiations are instituted clearance must be obtained on pro- posed purchases of articles or commodities in the four following general classifications : 1. All schedules of prospective purchases involving articles or commodities on the list given below, entitled " Clearance schedule." 2. All schedules of prospective purchases involving orders, for any articles or com- modities, to be placed in the congested district, which orders call for or involve the crea- tion or use of additional fuel, power, or transportation facilities. The boundaries of the congested district will be defined from time to time by the Railroad Administration, Fuel Administration, and War Industries Board, and will be published by the latter. This con- gested district now is included between the Atlantic Ocean and a line drawn through Chesapeake Bay to Baltimore, north to Harrisburg, west to Altoona, northeast through Williamsport, Binghampton, and Schenectady to the Hudson River, and thence north to the northeastern boundary of the State of New York. The districts served by the electrical power companies of Canton, Baltimore, Massillon, Alliance, Niagara Falls, Pittsburgh, Connellsville, Wheeling, Youngstown, and Akron are also prohibited centers due to lack of power. 3. All schedules of prospective purchases involving the creation of new or addi- tional facilities wherever placed and however created ; that is, either direct or indirect Government business ; and including all war building of any nature whatsoever. 4. The orders for production in Government plants do not require clearance so far as the actual order itself is concerned, though the material required for filling the order will require clearance if on the clearance list. At, the time requirements are presented, statement must be made as to whether the Government department at interest is in a position to handle all or any part of the order within its own plants. Clearance schedule. Acids, agricultural implements, vehicles (not auto propelled), and wood products : (a) Vehicles: Army wagons. Army carts, two-wheel. Artillery wheels, spokes, and hubs. Spare parts. (b) Truck bodies. (c) Wood products, meaning handles, boxes, containers, crates, propellers, etc. ( data really reflected the prevailing condition of a year previous since the materials used during the first half of 1917 had been contracted for then. The committee made recommendations relative to the methods of con- trol and they emphasized certain phases of it which proved later to be vital factors in the whole scheme of iron and steel regulation. It said in part that - It is our judgment that the question of price fixing may be best approached by considering the individual processes or stages comprising the manufacture of the finished product. Each of these practically constitutes an independent iron, of course, only for their own use and the average monthly production for sale during the first six months of this year was about 940,000 gross tons. The sales obligations of the various manufacturers on July 21, 1917 were 8,233,130 tons, of which about 250,000 tons were for export largely to Canada, Great Britain, Italy, and Japan. From this you will note that the merchant furnace production of the country is sold up for a little over nine months. There has been a great increase in steel making capacity, but the production of iron has not kept pace with it. A number of our Allies, par- ticularly Italy, are in the market for very heavy tonnages, and I think their necessi- ties are such that they can not be denied. Plates. Supplementing my letter of the 30th ultimo, I consider plates about the weakest link in our chain. The total production of sheared and universal plates ir 1916, which was a record year, was 3,687,384 tons, of which 1,224,234 tons were uni- versal mill plates not adaptable to any great extent for ship construction. As a matter of fact, the production of sheared plates \ inch or over was 1,865,642 tons. The sales obligations of the various plate manufacturers as of July 21 last total about 2,300,000 tons and the requirements of the Shipping Board and of the Navy and Army to the end of 1918 will approximate 1,750,000 tons, so that it is plain that we have fully two solid years maximum operation now in sight, without taking into consideration the needs of our allies, which will be very heavy. The British war mission is now trying to secure right of way on a plate specification ; the Italian mission) informs us that their re- quirements will also be quite heavy, and Japan wants an enormous tonnage. Of the 425,556 tons of plates for export on the books of the plate manufacturers July 21 last, 292,000 or about 68 per cent were for shipment to Japan, and about 70,000 tons for shipment to Canada. If we continue to permit the export of plates, it is plain that the output of our own ship yards will be restricted. I can not too strongly impress upon you the grave situation in this particular line. There was considerable new plate capacity under serious consideration some months ago ; in fact, some of the work on the mills had already been started, when for some reason construction was called off at the time Government prices on plates were discussed by representatives of the Government and the manufacturers. If the demand for pipes and tubes can be reduced by discouraging building construc- tion and all nonessential work of this character, these skelp mills could be used to very great advantage on ship plates. I think that this is one of the greatest possibilities we have and it must promptly be taken advantage of by some one in authority. In view of the above conditions, which I consider most serious to our war program, I believe a stimulating price on plates would be advisable to encourage the mills in ex- erting every possible influence for maximum tonnage from their existing mills, and also to influence new construction. Projectile steel. The situation in this line is equally as bad as on plates. The re- quirements of this Government for the next year will approximate 1,600,000 tons. The British war mission advise us that they have approximately 700,000 tons now on order with various plants in this country which have not yet heen delivered, and their require- ments will be at least 1,000,000 tons additional. Italy wants about 40,000 tons and Belgium about 28,000 tons, making a total of 3,368,000 tons. I have not yet been able GOVERNMENT CONTROL OVER PRICES. 257 industry. Many of the operators are engaged in only one of the processes, while a few of the larger companies cover all operations from the raw material to the finished product. As each industry must be allowed a profit to sup- port that particular industry, the integrated companies who cover all processes from raw materials to highly finished products must necessarily receive a profit on each of the processes. Conditions prevailing in the steel trade for a considerable period made it necessary for all lines of industry using steel products to order their supplies further in advance than would be necessary under normal conditions, and as a consequence these industries have on hand substantial stocks of steel acquired at prices very much higher than any we could recommend as being fair or equitable. To partially meet this situation and avoid demoralizing the many industries that are largely dependent upon steel products, we recommend the establishment of what might be termed an intermediate scale of prices for a period of three" months with the expectation of a further reduction at the end of that period. With that purpose in mind we submit the attached schedule of proposed prices on the raw materials and various products, also showing the approxi- to get the requirements of France and Russia, but I assume that there will be a tre- mendous tonnage required by them. Prior to the war there was comparatively little of this tonnage rolled and there are practically no mills in this country adapted particularly for this character of prod- uct, as the ordinary bar mill is designed more particularly for bars of 4 inch to, say, 2 inch diameter, and the shell steel in this country is largely rolled on rail mills and heavy structural mills, and the rolling of this tonnage on these mills displaces a very much heavier tonnage of the products for which the mills were designed. We have had the greatest difficulty in placing a small requisition for about 30,000 tons for the Ordnance Department, as all the mills are filled up largely on foreign orders. The British, Italian, and Belgian missions are all pushing us for deliveries on their requirements in this line, and to place additional tonnages, which we can not see any possibility of their getting, without a serious shortage in our own requirements. We are giving this subject a lot of detailed study, but we can not see any possible chance of meeting our requirements in this line, unless something is done promptly to prevent the manufacture of the enormous tonnage of steel going into nonessentials. I believe on the larger shells we will have to go to the steel casting companies, al- though I understand the War Department is not very favorable to this. This has been done by some of the foreign governments in an emergency, and I believe we will have to come to it here, which will help the situation to some extent, but not greatly. A very serious complication is the closing of shell factories in Canada, where they have a capacity of 400,000 shells per day, which is considerably in excess of the out- put in this country. I have talked with three of the Canadian munition manufacturers who state they propose to change their factories to other lines of product, as they can not get additional shell orders from the British Government, which insists that Canada must finance their own requirements in this line, which they state they are unable to do, and according to the terms of the United States Government's loan to Great Britain, this money can only be used for purchases in this country, with the result that they are trying to divert this Canadian business to us. They have been consuming 225,000 tons of shell steel monthly in Canada, about 190,000 tons of which was supplied by the Canadian steel plants, and approximately 35,000 tons imported from this country. I certainly feel that some arrangement should promptly be made to continue the manu- facture of shell steel and finished shells in Canada, and understand that negotiations are now on with this object in view. teumiiiary. As previously advised, coke, pig iron, plates, and projectile steel will be the most serious factors in the steel situation. The situation on structural steel, pipe, and tubes, wire products, rails, merchant bars, etc., is approximately as reported in my letter of the 30th ultimo. These lines will all have to be materially curtailed in order to meet the absolute war necessities. I again recommend that the leading steel manu- facturers be called to Washington at the earliest possible date for a full discussion of the serious condition, with the hope that immediate action will be taken to improve it, as we can not continue on the present basis without most serious results. 1 Mr. J. a Leonard Replogle, Alex. Legge, and L. L. Summers. 125547* 2( 258 HISTORY OF PRICES DURING THE WAR. mate market prices at the present time and the amount of the reduction from such prices. This scale of prices is recommended on the basis of offering a premium on ship plates and shell steel with the object of stimulating production, as the present capacity is inadequate to meet the requirements. It is evident that to be effective any price regulations must be rigidly en- forced. Serious consideration should be given to the question of abrogating contracts which were entered into prior to establishing this suggested schedule of prices. We have asked the Federal Trade Commission to advise the War Industries Board further in regard to these contracts, which must be consid- ered an important factor in the situation as some furnaces have entered into contracts without regard to the price established on coal. The War Industries Board on September 18, 1917, after hearing the above report in substance, agreed that the prices of ore, coal, coke, transportation, and pig iron should be fixed separately and thus build up a fair price for steel. It was likewise then agreed that should the steel interests not be willing to give their full co- operation because of the prices being fixed, that the War Industries Board would take the steps necessary to assume control over the steel plants. 1 The prices fixed on the great basic raw materials of the iron and steel group, which proved later to have been the basis for all price fixing within that group, were announced by the President on Sep- tember 24, 1917, but were, in point of fact, fixed by an oral agree- ment between the War Industries Board and the industry on Sep- tember 21, 1917. The iron and steel industry of the country, as rep- 1 A chief concern of the War Industries Board, in fixing the prices of iron and steel, was to maintain production at a maximum. It is therefore of interest to note that on Sept. 18, 1917, the chief of the board's production committee, Mr. S. M. Vauclain, pre- pared a memorandum stating the production of ore, coke, pig iron, and plates should be stimulated. Mr. Vauclain gave it as his confident belief that the maximum production of the mills would be assured should the Board establish prices substantially in con- formity to those recommended by him as follows : Of course the cost of pig iron must necessarily regulate the price of steel and the price of pig iron naturally depends upon the price of ore and coke. There are four items which should be stimulated so that no question of labor or profit should arise in their production and the minimum price should be named that will secure for the United States the maximum production, as follows : Ore, coke, pig iron, and plates ; therefore, I suggest to you the following : (1) Ore. Ore is now sold at lake ports, at Mesabi, at $5.05 and at Old Range at $5.20. Such Cuban, Spanish, and Chilean ore as it is possible to bring in costs about the same at plants along the Atlantic seaboard, therefore it is suggested that the price of $5 per ton at lake ports should be the price to all for ore. (2) Coke. There is universal regret among manufacturers that the price of coal has been placed at $2. It is considered a grave mistake and that $3 coal would have brought about a maximum production of this much-needed article. Therefore, we should not make the same mistake on coke. The cost of beehive coke is usually practically the cost of two tons of coal plus $1. It is therefore suggested that the price of coke, without distinction between beehive or by-product, should be, at the Connellsville district, $6. (3) Pig iron. At the present time there is at most blast furnaces large quantities of fuel and ore which will make operation safe, which has been purchased at ruling market prices. Therefore, in order to enable the manufacturer to work off this high priced material, I suggest the following rates for pig iron : $35 per ton from Oct. 1, 1917, to GOVEKNMENT CONTROL OVER PRICES. 259 resented by 65 high officials, met the War Industries Board at Wash- ington about 10 o'clock on the morning of September 21, at the call of the board. The steel men were told that the President had re- quested the board to ask their opinions as to proper prices to be fixed. An informal discussion took place on the basis of data at hand and in mind and then "the meeting adjourned until 4 p. m. to give the steel interests the opportunity of discussing the proper prices to fix." 1 When the meeting reconvened at 4 p. m. Judge E. H. Gary, speak- ing for the steel industry, explained to the board that the steel inter- ests had appointed committees covering ore, coke, and pig iron and that those committees would make and explain their recommenda- tions. The suggestions made by these committees were virtually the prices adopted by the board and later announced by the President. It is of especial interest, therefore, to read in detail the specific recom- mendations formally made to the board by the steel committees, of prices which they considered fair and proper. The minutes of the War Industries Board for that day say : Ore. The committee on ore then stated that the ore sold last year for this year's consumption was on a basis of $5.05 per ton, lower lake port, for non- Bessemer Mesabi ore. They suggested that the same price might be considered fair for the ore to be purchased this fall for consumption from June, 1918, to June, 1919, provided that wages for labor and cost of transportation remained the same. If they did not, a corresponding increase in price should be allowed. They stated that the profits for last year were higher than the average for previous years, but not as high as they have been in certain years of the past. Jan. 1, 1918 ; $32.50 per ton from Jan. 1, 1918, to Apr. 1, 1918 ; and $30 per ton there- after, it having been ascertained that with regulated prices for ore and coke any blast furnace in the United States can produce with a fair profit pig iron at the last-named price. Therefore, at the above prices, I suggest the following schedule : Item. Oct. 1, 1917, to Jan. l, 1918. Jan. 1, 1918, to Apr. 1, 1918. There- after. Pig iron |35 00 $32 50 $30 00 Steel ingots 45.00 42 50 40 00 Blooms. 54 00 51 50 49 oo Billets. 55 00 52 50 50 00 Slabs 55 00 52.50 50 00 Bars 65.00 62.00 60.00 Shapes 67 00 64 50 62 00 Plates 77 00 74 50 72 00 Steel rails (light special) 65 00 62 50 60 00 In each step the manufacturer's profit has been included. You will note at these prices that the base price of plates will be 3.437, 3.321, and 3.215 per pound. I feel confident that should prices, approximately in conformity with these figures, be established that the maximum production of our mills would be assured. There would also be an incentive for new capital to get into this business, as there would be small chance of making an actual loss and the patriotism of our manufacturers would be more active toward a higher production of steel products, and unless we do have a higher production of steel products the war will be a slow and tedious process. 1 The War Industries Board Minutes for Sept. 21, 1917. 260 HISTORY OF PRICES DURING THE WAR. ti Roughly speaking, they stated that the profit per ton last -year was approxP*" mately $1. It was understood that the usual differential nbtg&ing in the trade for higher grades of ore should be considered operative. Coke. The committee covering coke stated that they considered a price of $6.50 per ton ovens for coke should be established, /udge Gary stated that he thought $6 a ton would allow a sufficient margin; Mr. Schwab .confirmed Judge i. Gary's statement. Pig iron. The committee covering pig iron stated that in their opinion $35*- a ton valley for basic iron would permit of 90 per cent of the blast furnaces operating at a profit, and if coke can be established at $6 ovens, $30 pig iron is fair. Some exception was taken to this, largely because of the fact that con- tracts for coke at high prices for future delivery had been placed by .many furnaces. Steel. Mr. Schwab presented figures showing that if a profit* tJf '15 per cent were allowed, ingots should sell at $52.25 a gross ton, billets at $60.30 a gross ton, and plates at $85.30 a gross ton. The representative -f*t'he Lukens Iron N & Steel Co. stated that if pig iron were fixed at $35 per ton, plates would cost, him on a basis of $3.45 per hundred pounds. *s The members of the War Industries Board retired from the,' meeting to per- mit the steel interests to suggest prices on these commodities?" which, in their opinion, would be for the greatest benefit of the Nation. The board was then waited upon by a special committee appointed by the steel interests, consisting of Judge Gary, Mr. Schwab, and Mr. Dalton, who presented certain figures as being acceptable to the steel interests, whereupon the board informed them that at the earliest opportunity they would wait upon the President relative thereto. One of the most striking of all the features of the early fixing of iron and steel prices was the informality of it and the reliance of the whole scheme upon a cordiality between the Government and the industry. 1 The fruit of all these confidential meetings came finally to a full public knowledge on September 24, 1917, when the President ap- proved the prices therein determined upon by fixing the following 1 Judge R. S. Lovett, acting chairman of the War Industries Board, on Sept. 25, 1917 wrote the following letter to Judge E. H. Gary, authorized spokesman for the steel industry : " This is to confirm the oral agreement between the War Industries Board and your- self and other representatives of the steel industry, arrived at on Sept. 21 and approved by the President, as announced by him on Sept. 24, 1917, fixing the following prices which became effective immediately and are subject to revision Jan. 1, 1918, for the articles mentioned, viz : Iron ore, lower Lake ports basis, $5.05 per gross ton ; coke, Connellsville basis, $6 per net ton ; pig iron, Valley basis, $33 per gross ton ; steel bars, Pittsburgh and Chicago basis, $2.90 per hundred ; steel shapes, Pittsburgh and Chicago basis, $3 per hundred ; and steel plates, Pittsburgh and Chicago basis, $3.25 per hun- dred. Also, first, that there should be no reduction in the present rate of wages ; second, that the prices above named shall be made to the public and to the nations associated with the United States in the present war with Germany, as well as to the Government of the United States; and, third, that the steel producers represented at the meeting pledge themselves to exert every effort necessary to keep up the production to the maxi- mum of the past so long as the war lasts. Will you or those associated with you in the negotiations referred to please take up promptly or send representatives here to take up with Messrs. Baruch and Lovett the details for working out the placing of orders, the settlement of questions of priority, etc., and other matters necessary for carrying out the arrangement, and oblige?" GOVERNMENT CONTROL OVER PRICES. 261 basic prices effective immediately and subject to revision January 1, 1918, viz: Commodity. Basis. Price. Iron ore ; Lower Lake ports $5.05 per gross ton. Coke Connellsville ! $6 per net ton. Pig i r on Steel bars I Pittsburgh-Chicago Shapes do Plates... do $33 per gross ton. $2.90 per 100 pounds. $3 per 100 pounds. $3.25 per 100 pounds. It was made a part of the informal oral agreement between the War Industries Board with the steel men, and announced with the above price schedule as a policy by the President, first, that there should be no reduction in the present rate of wages ; second, that the prices above named should be made to the public and to the Allies, as well as to the Government ; and third, that the steel men pledge themselves to exert every effort necessary to keep up the production to the maximum of the past, so long as the war lasts. 1 The Presi- dent at the same time directed that measures be taken by the War Industries Board for placing orders and supervising the output of the steel mills in such manner as to facilitate the requirements of the Government and the Allies for war purposes, and the public needs where practicable. The prices fixed by the War Industries Board did not represent reductions as enormous as many people believed the elaborate Fed- eral Trade Commission inquiries into costs justified. They were, though generally below the historic high-price level of July previous, all materially higher than the average prices prevailing for those same commodities during 1911-1914. The falling off in quoted prices for iron and steel, due in part to the knowledge of forthcoming Gov- ernment regulation, began immediately after the July market. The prices fixed by the board represented a considerable scaling down from the July prices as is strikingly emphasized by the downward and then level turn of the iron and steel index number earlier in the chapter. Coke was reduced in price from $12.75 to $6, pig iron from $55 to $33, steel bars from $4.50 to $2.90, shapes from $6 to $3, and plates from $9 to $3.25. It should, of course, be remembered that the very high quotations of July, 1917, were never realized in the majority of contract placements. They represented simply the ex- orbitant prices which certain sales could command because the bulk of steel was booked up under contract. The real scaling down of prices from the high point of July, 1917, therefore, was actually much 1 Official Bulletin, Sept. 25, 1917. 262 HISTORY OF PRICES DURING THE WAR. less than one might suppose on examining the above figures. 1 It was quite as much the object of the Government to stabilize the mar- ket at a point that would effect a maximum of production as to scale down prices from higher levels. There follows a table showing the quoted prices on iron ore, coke, pig iron, steel bars, shapes, and plates as they prevailed during 1911-1914; at their average in July, 1917 ; and as finally fixed by the Government on September 24, 1917. 2 Price Commodity. Basis. Average for years Average for July, fixed by Govern- 1911-1914. 1917. Sept. 24, 1917. Iron ore (non-Bessemer, 51 50 per cent iron), Lower lake ports $3.15 $5.05 $5.05 per gross ton. Coke (blast furnace), per net ton Connellsville 2.05 13.42 6/00 Pig iron (No 2 foundry and basic) per gross Valley and Chicago 14.90 52.50 33 00 ton. Steel bars (not including sheet steel and small shapes under 3 inches per pound), per cwt. Pittsburgh or Chicago. . . 1.31 4.50 2.90 Shapes, per cwt do 1.32 4.50 3.00 Plates (-fy inch thick or heavier), per cwt do 1.32 9.00 3.25 No better basis, for a more detailed inquiry into the comparison of fixed prices with prevailing market quotations, can be had than the monthly prices from 1913 to 1918 of each basic raw material that was fixed on September 24, 1917 (iron ore, coke, pig iron, steel bars, shapes, and plates). The market quotations for Mesabi, non- Bessemer (51^ per cent iron) iron ore at the lower lake ports, which was adopted as the basis in fixing iron ore prices, held an average price of $3.3083 per gross ton for the year just preceding the out- break of war (July 1, 1913, to June 30, 1914), and fell as low as $2.80 the latter part of 1915. But it reached a level of $5.05 in December, 1916, which it maintained steadily to September, 1917. The War In- dustries Board, at that time, fixed the price at $5.05. Connellsville coke, furnace, prompt shipment f. o. b. ovens, which was adopted as the basis for fixing coke prices, was selling for $1.75 per short ton when war broke out in Europe. During the last quarter of 1916 the market became erratic, and coke prices reached $9 in Decem- ber of that year. They remained enormously high during 1917 and in August attained a peak at $13.42. The War Industries Board in September fixed the price at $6 per ton. The quotation of pig iron f. o. b. Mahoning or Shenango Valley furnace, was $13 per 1 It is aptly pointed out by Mr. Berglund that, though considerable reductions took place before the War Industries Board actually acted upon prices, the reductions made by the new schedule were material even in the market as it existed in September. On Sept. 20, four days before the first publication of fixed prices, basic pig iron at Valley furnaces was quoted by the Iron Age at $42 per gross ton and No. 2 foundry pig iron, Chicago, at $54. Soft steel bars, Pittsburgh, were quoted at $4 per hundredweight and tank plates at $8 per 100 pounds. 2 Made from quotations carried by the Iron Age and " Maximum Prices on Iron and Steel Products," as published by the American Iron and Steel Institute. GOVERNMENT CONTROL OVER PRICES. 263 gross ton when war broke out in Europe. It began going higher the latter part of 1915 and reached $52.50 in July, 1917. The War Industries Board fixed the price on September at $33 per gross ton. The price of steel bars, Pittsburgh, stood at $1.12 when war began but reached $4.50 by the middle of 1917. The War Industries Board fixed the price at $2.90 per hundred pounds in September, 1917. Structural shapes, Pittsburgh (beams and chan- nels, 3-inch to 15-inch) were selling at the same level as steel bars when the war began and reached the same peak by the middle of 1917. The price for shapes was fixed at $3 per hundred pounds in September, 1917. Steel plates, tank plates at Pittsburgh, were selling at $1.11 when the war began but rose to $9 in July, 1917. Their price was fixed at $3.25 per hundred pounds in September, 1917. There follows a more detailed exhibit of the prices of these articles. MARKET PRICES, AT WHOLESALE, OF IRON ORE, MESABI NONBESSEMER, 51* PER CENT, AT LOWER LAKE PORTS.i Month. 1913 1914 1915 1916 1917 1918 January ... $3.40 $3.40 $2.85 $3.55 $5.05 $5.05 February 3.40 3.40 2.85 3.55 5.05 5.05 March 3.40 3.40 2.85 3.55 5.05 5.05 April 3.40 3.40 2.85 3.55 5.05 5.05 Mav 3.40 2.85 2.85 3.55 5.05 5.05 June . . .. 3.40 2.85 2.85 3.55 5.05 5.05 July 3.40 2.85 2.80 3.55 5.05 5.05 August 3.40 2.85 2.80 3.55 5.05 5.50 September 3.40 2.85 2.80 3.55 5.05 5.50 October 3.40 2.85 2.80 3.55 2 5.05 5.75 November . . 3.40 2.85 2.80 3.55 5.05 5.75 December 3.40 2.85 2.80 5.05 5.05 5.75 MARKET PRICES, AT WHOLESALE, OF CONNELLSVILLE COKE, FURNACE, PROMPT SHIPMENT, F. O. B. OVENS.s January $3.85 $1.88 $1.55 $3. 14 $9.44 $6.00 February 2.60 1.90 .55 3.41 10.57 6.00 March 2.47 1.92 .53 3.45 9.58 6 00 April . 2.20 .90 .55 2.45 8.00 6.00 May 2.15 .83 .50 2.34 8.40 6.00 June 2.20 .80 .50 2.54 11 20 6 00 July 2.50 .75 .67 2.65 12.32 6.00 August 2.50 .74 .54 2.75 13.42 6.00 September 2.37 .70 1.66 2.94 11.85 6.00 October 2.10 .65 2.18 5.69 2 6.00 6.00 November 1.88 .60 2.35 6.91 6.00 6.00 December .. 1.77 .60 2.85 9.00 6.00 6.00 MARKET PRICES, AT WHOLESALE, OF BASIC PIG IRON, F. O. B. MAHONING OR SHE- NANGO VALLEY FURNACE^ January $16.41 $12.50 $12.50 $17. 81 $30.00 $33.00 February 16.30 13.19 12.50 17.69 30.00 33.00 March 16 11 13 00 12 50 18.20 32 25 33 00 April 15.87 13.00 12.50 18.13 38.75 33.00 Mav 15 15 13 00 12 50 18.00 41.60 33 00 June 14.50 13.00 12.59 18.00 48.75 33.00 July 14.37 13.00 12.74 18.00 52.50 33 00 August 14 06 13 00 14 06 18.00 51.20 33 00 September 14.00 13.00 14.75 18.31 42.75 33.00 October 13 90 12 81 15 00 19.88 2 33. 00 33.00 November 13 09 12 48 15 75 25 10 33.00 33 00 December 12.71 12.50 17.50 30.00 33.00 33.00 1 Quotations represent prices per ton and were taken on first of each month from the Iron Trade Review. 2 Fixed price. s Metal Statistics, published by the American Metal Market and Daily Iron and Steel Report, for 1919, p. 37. Prices are quoted per net ton. * Prices are per gross ton and were taken from the Iron Age, Jan. 2, 1919, p. 18. 264 HISTORY OF PRICES DURING THE WAR. MARKET PRICES, AT WHOLESALE, OF STEEL BARS, PITTSBURGH.! Month. 1913 1914 1915 1916 1917 1918 January $1 40 $1 20 $1 10 $1 87 S3 00 o qo February . 1 40 1 22 1 10 2 06 3 00 2 90 March 1 40 1 20 1 15 2 36 3 27 2 90 April... 1.40 .15 1.20 2 50 3 39 2 90 May 1 40 14 1 20 2 50 3 64 2 go June 1 40 12 1 20 2 50 4 00 Of) Julv 1 40 12 1 27 2 50 4 50 2 90 August 1 40 18 1 30 2 56 4 50 2 90 September 1.40 .19 1 35 2 60 3 88 2 90 October . 1 39 15 1 43 2 62 2 2 90 2 90 November 1.30 1.11 1.63 2 76 2 90 2 90 December 1 22 1 05 1 75 2 93 2 90 2 78 MARKET PRICES, AT WHOLESALE, OF STRUCTURAL SHAPES (BEAMS AND CHAN- NELS) 3-INCH TO 15-INCH, PITTSBURGH.i January... . .... $1.50 1.45 1.45 1.45 1.45 1.45 1.45 1.45 1.40 1.39 1.34 1.24 $1.20 1.25 1.21 1.18 1.15 1.12 1.12 1.18 1.20 1.16 1.11 1.05 $1.10 1.10 1.15 1.20 1.20 1.20 1.25 1.30 1.33 1.44 1.63 1.75 $1.87 2.06, 2.36 2.50 2.50 2.50 2.50 2.54 2.60 2.63 2.86 3.03 $3.11 3.25 3.52 3.70 4.00 4.25 4.50 4.50 4.06 23.00 3.00 3.00 $3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.88 February March... April .. May June July August . . September October November December MARKET PRICES, AT WHOLESALE, OF STEEL PLATES, TANK, PITTSBURGH.i JaTHiar~ r $1.50 1.45 1.45 1.45 1.45 1.45 1.45 1.44 1.40 1.36 1.29 1.20 $1.20 1.21 1.18 1.15 1.14 1.10 .11 .18 .19 .14 .09 1.05 $1.10 1.10 1.15 1.20 1.17 1.15 1.22 1.26 1.33 1.42 1.63 1.75 $1.90 2.16 2.53 2.75 2.83 2.90 2.90 2.94 3.00 3.07 3.33 3.53 $3.61 3.75 4.33 4.50 4.50 7.10 9.00 8.96 7.05 23.25 3.25 3.25 $3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.10 February... March April... May.. .. June July August September October November Dew.mbeir 1 Quotations represent prices per hundredweight and were taken from Metal Statistics for 1919. 2 Fixed price. Semifinished-product prices fixed October 11, 1917. The next of the three great initial steps in the fixing of iron and steel prices, following the fixing of raw-material prices on September 24, came scarcely three weeks later when prices were fixed on the inter- mediate products (blooms, billets, slabs, sheet bars, wire rods, shell bars, and skelp) on October 11, 1917. There need be no restatement of the method by which the Govern- ment and industry arrived at the prices fixed on these semifinished products, since the approach was not unlike that made to the former price fixing of raw materials. It should be said, however, that meantime the old iron and steel committees, formerly represent- ing the industry in the Council of National Defense, went out of GOVERNMENT CONTROL OVER PRICES. 265 existence and the American Iron and Steel Institute became the formal and authoritative spokesman of the industry to the Gov- ernment. The steel manufacturers, thus formed into committees under the American Iron and Steel Institute for the purpose of fur- nishing information to the War Industries Board, had no con- nection, advisory or otherwise, with the awarding of any con- tracts. 1 These newly formed institute committees and the Gov- ernment, immediately after the fixing of prices on iron ore, coke, pig iron, plates, shapes, and bars in September, began conferring among themselves and with each other to determine prices on semi- finished products in line with those just announced on raw materials. They came finally to an agreement, and the War Industries Board submitted the newly determined prices to the President. The President approved the prices fixed on these more highly man- ufactured steel products on October 11, and announced the following as maximum prices effective immediately but subject to revision Janu- ary 1, 1918: Commodity. Basis. Price. Blooms and billets, 4 by 4 inches and , larger. > Bi'lets under A by 4 inches J Pittsburgh- Youngst own. . $47.50 per gross ton. \ V$51 per gross ton} $50 per gross ton. ^ $51 per gross ton. 1 \M -.. $57 per gross ton.Q L - j.j $3.25 per 100 pounds. $3.50 per 100 pounds. $3.75 per 100 tounds. $4 per 100 pounds. -^ l $2.90 per 100 pounds. * $3.] 5 per 100 pounds/, $3.25 t>er 100 poundsV do Plabs do . . Sheet bars do Wi^e rods . . . . Pittsburgh ... Shell bars: 3 to 5 inches do Over 5 to 8 inches. do . Over 8 to 10 inches do Over 10 inches do Skeip: Grooved do Universal do Sheared do The President announced that he fixed these maximum prices on the assurance of the steel industry that they would equitably adjust the relations of the steel interests to each other, and assist to give the country a maximum of production. Bessemer steel billets, at Pittsburgh, which were selling at $19 per gross ton at the close of 1914, sold as high as $100 in July, 1917, and were fixed at $47.50 in October. 2 Bessemer sheet bars, at Pitts- burgh, which were selling at $20 when war began, rose to $105 in June and July of 1917, and were fixed at $51 per gross ton in Octo- ber. 3 Bessemer wire rods, at Pittsburgh, which were selling at $24.50 three years earlier, attained a peak of $96.25 in July, 1917, and were fixed at $57 per gross ton in October. 4 Grooved steel skelp, at 1 Iron Age, Oct. 4, 1917, p. 832. 2 Iron Age, Jan. 2, 1919, p. 18. 8 Metal Statistics for 1919, p. 91. * Iron Age, Jan. 2, 1919, p. 20. 266 HISTORY OF PRICES DURING THE WAR. Pittsburgh, which was selling at $1.15 in July, 1914, rose to $6 in July, 1917, and was fixed at $2.90 per hundred pounds in October, 1 Finished-product prices fixed November 5, 1917. The last of the initial three steps in price fixing within the iron and steel group came on November 5, 1917, when the President approved an agree- ment between the War Industries Board and the steel industry, fix- ing prices on certain finished products (sheets, pipe, cold-rolled steel, scrap, wire, and tin plate). The President fixed these maximum prices at that time, subject to revision January 1, 1918. It is of par- ticular interest that he also announced that the iron and steel manu- facturers had agreed " promptly to adjust the maximum prices of all iron and steel products other than those on which prices have been agreed upon to the same general standard as those which have been announced. It is expected that this will be done promptly and con- sistently in line with the basic, intermediate, and finished products, for which definite maximum prices have been established." 2 The Government had thus brought under its control the basic raw ma- terials, semifinished products, and finished products of the iron and steel industry. The basic finished-product prices which were announced November 5 were as follows: Shppt<* Per 10 pounds. No. 28 black sheets f. o. b. Pittsburgh___ $5. 00 o '* No. 10 blue annealed sheets f. o. b Pittsburgh 4. 25 ^ No. 28 galvanized sheets f. o. b. Pittsburgh 6. 25 fr The above prices to apply to both Bessemer and open-hearth grades. Pipe : On f -inch to 3-inch black steel pipe, discount 52 and 5 and 2 per cent f. o. b. Pittsburgh. Cold-rolled steel : Seventeen per cent discount from March 15, 1915, list f. o. b. Pittsburgh. Per gross Scrap (f. o. b. consuming point) : ton. * No. 1 heavy melting $30.00 V Cast-iron borings and machine-shop turnings (20.00? No. 1 railroad wrought 35. 00 1 "* Wire, plain wire f. o. b. Pittsburgh, per 100 pounds 3. 25 V * Tin plate, coke base, Bessemer, and open hearth f. o. b. Pittsburgh, per 100-pound box 1 .7.75 12* Black sheets, No. 28 gauge, f. o. b. mill at Pittsburgh, which were selling for $1.80 when war began, sold for $8 during July, August, and September, of 1917, and were fixed at $5 per hundred pounds in November. 3 Galvanized sheets, No. 28 gauge, f. o. b. mill at Pitts- burgh, which were selling at $2.75 when war came in Europe, rose to $10.50 in July, 1917, and were selling at $8.90 still in October. They 1 Metal Statistics for 1919, p. 115. 2 Official Bulletin, Nov. 6, 1917. 8 Metal Statistics for 1919, p. 131. GOVERNMENT CONTROL OVER PRICES. 267 were fixed at $6.25 per hundred pounds in November. 1 Blue an- nealed sheets, No. 10 gauge, at Pittsburgh, which were selling at $1.35 at the beginning of war, rose to $8.25 in July, 1917, and were fixed at $4.25 per hundred pounds in November. 2 Heavy melting steel scrap, at Pittsburgh, rose from $11.75 when war broke out to $38.75 in July, 1917, and was fixed at $30 per gross ton in November. 3 The average price of plain wire, at Pittsburgh, for 1914 was $1.40, for 1917 $3.95, and the price fixed in November, 1917, was $3.25 per hundred pounds. 4 Tin plates, at Pittsburgh, were selling at $3.20 the last of 1914, and rose as high as $7.50 in March, 1917. They were fixed at $7.75 per hundred-pound box in November, 1917 the highest price quoted in 18 years, if ever. 5 The determination of differentials upon basic prices. It must be borne in mind for emphasis that the President, upon the joint recommendation of the War Industries Board and the iron and steel industry, approved simply the basic raw material prices (iron ore, coke, pig iron, steel bars, shapes, and plates) on September 24; cer- tain basic semifinished-product prices (blooms, billets, slabs, sheet bars, wire rods, shell bars, and skelp) on October 11; and certain finished products (sheets, pipe, cold rolled steel, scrap, wire, and tin- plate) on November 5, 1917. These prices were meant simply to afford a basis for other related controls, and the President went so far, in his statement of the latter date, as to instruct the industry to bring the prices of all iron and steel products into a line with the above announced basic prices. The Government, therefore, left quite to the industry the burden of determining the thousands of differen- tials figured upon the Government fixed basic prices. 6 1 Ibid. 2 Ibid. 3 Ibid. * Ibid. 5 Ibid. p. 133. p. 127. p. 159. p. 103. p. 141. 6 The full list of differentials figured under the various basic prices announced by the Government, and as published by the American Iron and Steel Institute of 61 Broadway, New York, consumes 150 pages of detailed schedules of " Maximum Prices on Iron and Steel Products" (issued Nov. 15, 1918), and shows control over alloy steel castings; anchors ; angles, heavy ; angles, light ; angle splice bars ; automobile sheets ; bands ; bands, heavy, iron ; bands, light, iron ; barbed wire ; bars, angle splice ; bars, concrete reinforcing ; bars, forging ; bars, iron ; bars, rail steel ; bars, sheet ; bars, shell ; bars, steel ; basic pig iron ; beams, Bessemer ferrosillicon ; Bessemer pig iron ; beveled edge box iron ; billets for seamless tubes ; billets, forging ; billets, re-rolling ; billets, small ; black plate, tin mill ; black sheets ; blast, furnace castings ; blooms, re- rolling ; blooms, forging; blue annealed sheets, boat spikes; boiler castings; boiler tubes; bolsters, bolts; bolts, railroad track ; brads ; bridge blocks ; bulb angles ; bulb beams ; calks ; car and locomotive frames ; carbon tool steel ; car castings ; car wheels ; castings, malle- able ; castings, steel ; cast-iron water pipe ; cement mill castings ; chain ; channels, heavy ; channels, light ; charcoal pig iron ; cold rolled and cold drawn steel ; cold rolled strip steel ; column bases ; concrete reinforcing bars ; couplers ; crane castings ; cut nails ; cut tacks ; electrical sheets ; engine castings ; ferrosillicon, Bessemer ; flats ; flats, cold rolled and cold drawn ; flats, iron ; forging bars ; forging ingots ; forging steel ; formed roofing sheets ; foundry pig iron ; galvanized sheets ; gears ; half ovals ; half ovals, iron ; half rounds ; half rounds, iron ; hexagons ; hexagons, cold rolled and cold drawn ; high 268 HISTORY OF PRICES DURING THE WAR. In response to the request of the President on November 5, the com- mittee on steel and steel products of the American Iron and Steel Institute, which is a private organization, studied the basic, inter- mediate, and finished product prices, for which definite maximum prices had been established by the Government and recommended what it considered " fair and reasonable " differentials. It appears that the promulgation of these differentials and their enforcement was left in large part to the American Iron and Steel Institute itself. The committee of the institute recommended these differentials to the industry direct, under dates of November 13, November 20, and De- cember 22, 1917, and January 7, 1918, asking that such prices be adopted as maximum prices to take effect immediately; to apply to the requirements of the Government, the Allies and of domestic con- sumers. The committee added in its recommendations to the in- dustry of the latter date : 1 That the prices of all iron and steel products, maximum prices for which have not been agreed to with the War Industries Board or recommended by the committee, be promptly adjusted so as to be in line with the basic, inter- mediate, and finished products for which definite maximum prices have been established. The committee relies upon the patriotism and good faith of the iron and steel industry to accomplish this, and expresses the hope that all connected with the iron and steel industry will cooperate in the proper spirit to this end. All prices, differentials, and extras recommended by the American Iron and Steel Institute, through its committee on steel and steel sillicon or silvery iron ; high-speed tool steel ; hoops ; horse and mule shoes ; horseshoe iron ; hot rolled strip steel ; ingots, forging ; iron bars ; iron ore ; iron rolls ; jaw and gyratory crusher castings ; light rails ; locomotive castings ; long terne sheets ; low phos- phorus pig iron ; malleable castings ; mine and industrial car castings ; mule shoes ; nails, cut ; nails, wire ; nuts ; ore, iron ; ovals ; ovals, iron ; pig iron ; pinions ; pinions, iron ; pinionsi, steel ; pipe, cast-iron water ; pipe, steel ; plates ; propeller wheels ; rail or step joint castings ; rails, light ; rails, re-rolling ; railroad, track bolts ; railroad track spikes ; rail steel bars ; refractory and brickyard castings ; re-rolling rails ; rivet rods ; rivets ; road and mining machinery castings; rods, rivet; rods, wire; rolling mill castings; rolls, iron ; rolls, steel ; rope, wire ; rounds ; rounds, cold rolled and cold drawn ; rounds, iron ; scrap, iron and steel ; screws, wood ; seamless steel tubes ; seamless tubes, billets for ; shapes, small ; shapes, structural ; sheets ; sheets, automobile ; sheet bars ; sheets, black ; sheets, blue annealed ; sheets, electrical ; sheets, formed, roofing ; sheets, galvanized ; sheets, long terne ; sheets, painted and formed ; shell bars ; shoes, horse and mule ; shoes, steel ; shoe finders' goods ; silvery pig iron ; skelp ; skelp for boiler tubes ; slabs, forging ; slabs, re-rolling ; small billets ; small shapes ; spikes, boat ; spikes, railroad track ; splice joints for light rails ; spring steel ; spring steel card ; squares ; squares, cold rolled and cold drawn ; squares, iron ; steel bands, hoops, and strips ; steel bars ; steel, carbon tool ; steel castings ; steel, cold rolled and cold drawn ; steel forging ; steel, high speed tool ; steel, hot rolled strip ; steel, pipe ; steel, spring ; steel tire card ; steel, tool ; steel works castings ; strip steel, cold rolled ; strip steel, hot rolled ; strip, hot rolled ; structural shapes ; tacks, cut ; tees, heavy ; tees, light ; terneplate ; tie plates, iron ; tie plates, steel ; tinmill black plate ; tinplate ; tires ; tool steel ; track bolts ; tubes, boiler ; tubes, seamless steel ; wire ; wire, barbed ; wire nails ; wire rods ; wire rope ; wood screws ; zees, heavy. 1 Maximum Prices on Iron and Steel Products, issued Nov. 15, 1918, by the American Iron and Steel Institute, pp. 10, 11. GOVERNMENT CONTROL OVER PRICES. 269 products, were given the same application in all policies as those fixed specifically by the War Industries Board or later by the price- fixing committee. Modifications of original basic prices fixed. It is noteworthy that the great bulk of basic price fixing of iron and steel during the war was done by the War Industries Board, before the price-fixing com- mittee got started in March, 1918. Of no less significance is it that, though the subsequent changes were enormous in number, there were relatively few important changes ever made in the raw material prices fixed September 24, the intermediate prices fixed October 11, the finished product prices announced November 5, 1917, and the differentials based thereon announced soon afterwards by the Amer- ican Iron and Steel Institute. Those original prices generally were renewed every three months after considerable discussion between the Government and the industry. There were some modifications, however, which ought to be noted. The price fixing committee, through the President, announced on March 26, 1918, that the price of basic pig iron would be reduced from $33 to $32 per gross ton during April, May, and June, and the maximum price of scrap steel reduced from $30 to $29 per gross ton. The well-known meeting of March 20 between the price fixing com- mittee and the industry had turned, in the main, upon a considera- tion of the price tendency of the schedule due for revision and the period during which it should be in force. The proposed plan to pool the output of producers so that large and small manufacturers alike might secure a reasonable profit, while production was kept at a maximum, did not find favor. 1 The price fixing committee ignored cost sheets showing rapidly rising figures, on the ground that they were based upon abnormal conditions during January and February. The committee also refused to extend the new prices, as was desired by the steel men, to a period of six months rather than three. 2 It asked that no new contracts, calling for delivery on or after July 1, specify any price unless coupled with a clause making the price subject to revision by any Government agency. The price fixing committee, again on September 24, 1918, just one year after the War Industries Board had originally fixed that price, set the base price of basic pig iron again at $33 f . o. b. furnace. The base price on No. 2 foundry iron was increased to $34, and that of standard Bessemer iron at $35.20 f. o. b. furnace. These increased prices were subject to certain changes from previous practices as regards delivery. 3 1 Iron Age, Mar. 14, 1018, pp. 700, 701, and Mar. 28, 1018, p. 800. 2 Quarterly Journal of Economics, August, 1918, by A. Berglund, pp. 615, 616. 3 Maximum Prices on Iron and Steel Products, pp. 12 and 17. 270 HISTORY OF PRICES DURING THE WAR. The price fixing committee, on June 21, 1918, increased the base prices of Lake Superior iron ore, delivered to lower lake ports, 45 cents per gross ton after July 1. These increased prices were based upon the advances in rail freight rates effective as of June 25, and the then prevailing lake rates. 1 The committee again announced on September 24 that the base price of Lake Superior iron ore would be increased 25 cents per gross ton after October 1, provided that if either rail or lake rates are increased or decreased that the base prices would be changed accordingly. 2 Price control and the relative rise of prices and production. A summary of the relative prices prevailing at certain significant dates is presented in the following table. The advance in prices caused by the entry of the United States into the war is shown by the rise from April, 1917, to July, 1917. In July the first announcements of a Government price-fixing policy were made, and the October prices show the reductions accomplished through price control. The aver- age of market prices from July 1, 1913, to June 30, 1914, is taken as 100.% July, 1915. April, 1917. July, 1917. Octobe , 1918. Iron nrfi Affisftbi noti-T^fiSSemer 85 153 153 174 Coke, Connellsville, furnace 85 352 594 291 Pig iron, basic 96 291 394 240 Steel billets, open hearth . 103 344 436 218 Structural shapes 98 260 424 205 Steel plates, tank .... 97 357 714 258 Tin plate, domestic, coke 92 233 349 225 Wire rods, Bessemer . 102 337 382 226 There can not readily be had an accurate statistical comparison of the relative rises of the prices and corresponding production of all groups controlled within the iron and steel industry. The most sat- isfactory of all the comparisons is that which can be made of the relative rises of the prices of basic pig iron and those of the produc- tion of pig iron by months from 1913 to 1918. In the calculation both of the relative prices and the relative production figures, the average price or production figure, respectively, for the prewar year (July 1, 1913 to June 30, 1914) was taken as a base equal to 100. This comparison is the more interesting because pig iron, the basic raw material of the industry, was fixed as early as September 24, 1917, and during the war underwent even less violent rises than many other commodities of the iron and steel group. The base price for the prewar period, adopted as 100 in figuring the relative prices 1 Maximum Prices of Iron and Steel Products, p. 14. 2 Ibid, p. 17. 3 See " Prices of Iron, Steel, and their Products/' by Walter W. Stewart (War Indus- tries Board Price Bulletin No. 33). GOVERNMENT CONTROL OVER PRICES. 271 of pig iron in the table following, was $13.31, and the base produc- tion figure for that same prewar period, also adopted as 100 in the table below, was 2,231,420 gross tons. RELATIVE PRICES OF PIG IRON, BASIC, Month. 1913 1914 1915 1916 1917 1918 January 123 94 94 134 225 218 February 122 99 94 133 225 248 March. 121 98 94 137 242 248 April 119 98 94 136 291 240 May 114 98 94 135 312 240 June 109 98 95 135 366 210 July 108 98 96 135 394 240 August 106 98 106 135 384 240 September 105 98 111 137 321 240 October 104 96 113 149 248 218 November 98 94 118 188 248 248 December 95 94 131 225 248 248 RELATIVE PRODUCTION OF PIG IRON. January 125 84 72 143 141 108 February 116 85 75 138 119 104 March... 124 105 92 150 146 144 April.. 123 102 95 145 149 147 May 126 94 101 151 153 154 June. .. 118 86 107 144 147 149 July 115 88 115 145 150 153 August 114 89 125 144 146 152 September . . 112 84 128 144 140 153 October 114 80 140 157 148 156 November 100 68 136 148 144 150 December. 89 68 144 142 129 154 Summary. The Government undertook few price controls dur- ing the whole war more extensive than that which it exercised over the iron and steel industry. The President, after various informal agreements made in conference between the War Industries Board and the steel men, approved their recommendation to fix the prices of the basic raw materials (iron ore, coke, pig iron, steel bars, shapes, and plates) on September 24, 1917; their recommendation to fix the prices of intermediate products (blooms, billets, slabs, sheet bars, wire rods, shell bars, and skelp) on October 11, 1917; and those for certain finished products (sheets, pipe, cold rolled steel, scrap, wire, and tin plate) on November 5, 1917. He, on the latter date, asked the industry itself to adjust the maximum prices of all iron and steel products in line with the basic, intermediate, and finished product prices already fixed. The industry, through the American Iron and Steel Institute, adjusted thousands of prices, differentials, and extras to those bases. The most important part of this price fixing was done under the War Industries Board, before the creation of the price fixing committee. The index number for the whole iron and steel group in July, 1917, when it became known that the Government probably would fix prices, had reached a peak unknown in iron and steel history. 272 HISTORY OF PRICES DURING THE WAR. The weighted "all commodities" index number in the same month stood 89 per cent above its prewar level, while the iron and steel index number showed an advance of 270 per cent. The fall immedi- ately following July, and before formal control began in September, was due in large part to an anticipation of control and must to that extent be credited to the influences of Government regulation. By October, after prices had been fixed, the index number for iron and steel prices had made a straight drop back to a level 143 per cent above the prewar price. In November the index number for the group receded still further to 118 per cent above the prewar level where it remained without an important rise or drop until the armis- tice was signed. COPPER. The first of the metal price controls and, as proved later, one of the most important, was that over electrolytic copper begun formally on September 21. 1917. By comparison with the iron and steel con- trol which followed upon its heels, it was a simple regulation. The Government came ultimately to fix the raw material, intermediate and finished product prices within the iron and steel group, involv- ing thousands of differentials and extras calculated upon basic prices. But throughout the whole war, speaking generally, it did not attempt fixation in the copper group of more than electrolytic copper (refined by the electrolytic process and running 99.93 per cent pure or upward) the great basic raw material of the industry. The Government was provoked to a control over copper more by a concern for maximum production than from fear of a runaway market. While formal price fixing did not begin until later, during the six months after our entry into the war, the negotiations of the War Industries Board for Government and allied purchases bear upon the price-fixing problem. It is necessary to review these actions before pushing an inquiry into the fixing of the first price in Sep- tember, 1917, and the increase of price allowed in July, 1918. Copper production of more concern than high prices. This coun- try controls the bulk of copper in the world and, by the enormous allied purchases during 1916 and 1917, was made to realize that, if it, too, was to make war, it must maintain maximum copper pro- duction. Even before the United States entered the struggle, the European War required the lion share of copper mined in the coun- try. After our entry it was obvious that a normal output of copper would not suffice. There would be required very much more, though nobody knew specifically the quantity. Curiously, copper prices, during the phenomenal steel rise of 1917, were falling. Yet the Government, though interested primarily in encouraging maximum copper production, presently concerned itself with price control be- cause it believed that a means to the greater end in mind. GOVERNMENT CONTROL OVER PRICES. 273 To make the situation clear, there are presented statistics showing the war-time changes in the prices of electrolytic copper at Xew York ; the production of refined new copper ; the stocks on hand ; the amount of copper exported: and the apparent domestic consumption of copper. 1 ACTUAL COPPER MOVEMENTS. Year. Prices (electro- lytic copper). Production (total new supply). Stocks (beginning of year). Exports. Domestic consumption (apparent). 1913 Cents. 15.52 Pounds. 1,615,067,782 Pounds. 105, 497, 683 Pounds. 817,911,424 Pounds. 812,268 639 1914 13.32 1,533,781,394 90,386,402 840,080,922 620,445,373 1915 17.47 1,634,204,448 173,640,501 681,917,955 1,043,497,328 1916 28.46 2.259,387,315 82,429,666 784,006,486 1,429,755,266 1917 29.19 2,423,646,171 128,000,000 1,126.082,417 1,316,463,754 1913 24.68 2,450,000,000 114,000,000 735, 737, 200 1,648,262,800 RELATIVE COPPER MOVEMENTS. 2 Year. Prices. Produc- tion. Stocks. Exports. Domestic consump- tion. 1913 100 100 100 100 100 1914 . . 85 95 86 103 76 1915 . . . 113 101 165 83 128 1916 183 140 78 96 176 1917 188 150 121 138 162 1918 159 152 108 90 203 The later considerations in detail of a proper price to allow the producers for their refined copper, and the contrast in the movement of copper prices and steel prices fixed at the same time, require a more minute study of the quotations than the above yearly figures afford. There follows a list of monthly quotations of electrolytic copper at Xew York, showing prices per pound from 1913 to 1918 : 3 ELECTROLYTIC COPPER PRICES. Month. 1913 1914 1915 1916 1917 1918 Cents. 16 75J Cents. 14 45 Cents. 13 71 Cents. 24 10 Cents. 30 26 Cents. 23 50 February 15 27 14.67 14 57 27 46 35 22 23 50 March 14 92 i 14 33J 14 96 27 44 35 74 23 50 \pril 15.48 14.34 17.09 29 31 32.19 23 50 May 15 63 14 13 18 60 29 81 32 32 23 50 14 85 13 814 19 71 27 494 32 57 23 50 July 14 57 13 49 19 08 25 60 28 90 25 89 August 15 68 12 41% 17 22 27 36^ 27 13 26 00 September 16.55 12. 084 17. 704 28.26 25. 45 26.00 October . . 16 54 11 40 17 86 28 64 <23 50 26 00 November 15 47 11 74 18 83 32 22J 23 50 26 00 December 14 47 12 93 20 35 33.84 23.50 25. 284 1 The price table was taken from Metal Statistics for 1910 ; the tables showing produc- tion, stocks on hand, and apparent domestic consumption from the United States Geo- logical Survey ; and, finally, that showing exports, from the Bureau of Foreign and Do- mestic Commerce. - The relative comparisons were made upon the basis of the actual price, production, slock, export, and consumption figures given above, taking the 1013 figure in each case as equal to 100. 3 Metal Statistics for 1010, p. 231. * Price fixed. 125547 20 18 274 HISTORY OF PRICES DURING THE WAR. Electrolytic copper, a month before this country declared war, attained its high price for the whole war period at nearly 36 cents per pound, an increase of 140 per cent over its prewar level. Then, however, it began to drop and continued falling until stabilization was brought to the market through price fixing. It is notable that the peak in the copper market came four months prior to that in the steel market, though formal price fixing took place at the same time. Clearly, the Government did not start regulating copper to check a runaway market. The early allied purchases^ The most striking feature of the copper situation in 1916, the year just preceding our entrance into war, was the phenomenal increase in production in the United States because of for- eign business placed here with manufacturers. The foreign orders were the largest ever known, and sales, with approxi- mate prices were as follows : To Great Britain, December, 1915, 120,000,000 pounds, at 22 cents ; to France, March, 1916, 100,- 000,000 pounds, at 27 cents; and to England and France, Sep- tember, 1916, 448,000,000 pounds at 27 cents. This total of more than 950,000,000 pounds that the Allies took from the mar- ket, together with what was contracted for by American consumers, left the refineries bare of sup- plies. For the last three months after the large September sale, cop- per averaged 31^ cents. Domestic buyers, because of high prices, had allowed stocks on hand to run low, and then with the continuing ad- vance, hesitated to accumulate supplies. The excessive foreign buying though done with no little care to avoid overturning the market, gave a feverish and speculative market during 1916 and brought about an undeniable threatened world shortage of copper by the beginning of 1917. 1 { _ _ 1 " The Price Fixing of Copper," by Lewis Kennedy Morse, in the Quarterly Journal of Economics, November, 1918. Relative prices. Copper, electrolytic. By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) GOVERNMENT CONTROL OVER PRICES. 275 It was deemed best, since heavy Government buying must continue, to change the policy of foreign buying in order not to excite the mar- ket. While manufactured products, wholly or partly finished, con- tinued to be purchased in record-breaking quantities and at the highest prices, foreign Governments thereafter, instead of taking specified amounts of refined copper, bought only from time to time, and at the best possible price, such copper as could be secured from the large producers. 1 Fewer large sales were featured in the trade news. The allied purchase of 77,000,000 powids.In August of 1917 it was brought officially to the attention of the War Industries Board that the French were in the market for 12,000 tons of copper for August shipment which, together with known immediate British needs, made a total of 60,000,000 pounds. 2 It w r as the opinion of the board that the producers should be called into conference, bearing in mind their firm offer to the Government of copper for 25 cents per pound, and that a tentative price of 20 cents per pound be offered them for the above lot. This price, it was agreed in meeting, should be subject to revision upward or downward later. 3 It was on the following day moved that if the copper producers refused to enter into this agreement, the Government would proceed to commandeer the necessary supply. 4 The board, in order to meet the determined opposition in the industry to sales at a memorandum price, modified its initial figure and passed the following resolution : 5 That as the copper emergency required immediate action necessary to secure a supply for our Government and our allies, the board endeavor to secure from the copper interests the needs of ourselves and our allies at a price to be fixed when we will see the report of the Federal Trade Commission as to the costs and for purposes of payment on account of deliveries, a tentative price of 22 cents to be fixed with the understanding that this price shall in no way be taken into consideration when the final price is to be determined. Finally, in the middle of August, the copper interests agreed to deliver 77,000,000 pounds of copper to the Allies on a memorandum, no price to be paid pending the final fixing of a price 6 after an investigation. The early Government purchases. Shortly before this country made its formal declaration of war, and again within three months afterwards, there were placed with the producers two Government orders for copper which affected vitally and hastened the price fix- 1 Statement from Mr. Lewis Kennedy Morse. 2 On Aug. 9, 1917, the board considered still an additional request from the Italian Government for 40,000 tons of copper. 3 War Industries Board Minute Book, Aug. 7, 1917. * Ibid., Aug. 7, 1917. s Ibid., Aug. 8, 1917. Ibid., Aug. 15 and 16, 1917. 276 HISTOKY OF PRICES DURING THE WAR. ing of copper. The two orders, embracing altogether 105,510,000 pounds of refined copper, were placed at strangely different prices because of instability in the market. The price for the earlier order was 6.83 cents below that finally fixed in September and that for the later order 1.50 cents above. The fact that the Government had been able to negotiate a large purchase in the spring of 1917 at a price so favorable, gave it a lever to hold firmly for a favorable price in September, just as the second purchase at a higher figure m the summer of 1917 gave the industry a weapon in their holding out for a higher fixed price. Each purchase had its influence upon copper price fixing. The Government purchase of 45,510,000 pounds in March, 1917. The principal copper producers of the country, it was announced on March 20, 1917, offered to supply the Army and Navy with 45,510,000 pounds of copper at a price of 16.6739 cents a pound for delivery beginning in April and continuing quarterly for a year. This unusually favorable purchase, negotiated by Mr. Bernard M. Baruch then of the Council of National Defense, was made at a time when the regular market quotations were 35.74 cents per pound and sales were being made at 37 cents in the open market. The amount of that metal which was to go to the Navy was 20,000,000 pounds and that to the Army 25,510,000 pounds. 1 The purchase price agreed upon represented, not the price which those amounts might have commanded in the market, but the actual average selling price covering the 10-year period from 1907 to 1916, inclusive. 2 The Government purchase of 60,000,000 pounds in June, 1917. Another, and larger, order for 60,000,000 pounds of copper, as an- nounced June 27, 1917, was placed by the Government for early delivery at a tentative price of 25 cents a pound. The open copper 1 The Commercial and Financial Chronicle, Mar. 24, 1917, p. 1108. 2 Mr. Bernard M. Baruch, after spending a week in conference with the large produc- ing and smelting interests of the country, received the following letter from them on Mar. 24, 1917, as their written record of the agreement reached : " Referring to our several conversations on the subject of supplying copper for the Army and Navy, to the letter of the Secretary of the Navy of Mar. 16, and the tele- gram of the Secretary of War of Mar. 18, both addressed to you, on behalf of the prin- cipal producers of copper in this country, we beg to say that we will furnish the quan- tity named for delivery within twelve months, viz : " Twenty million pounds for the Navy and 25,510,000 pounds for the Army, in approximately equal quantities each quarter from April, 1917, to April, 1918, at a price of 16.6739 cents per pound, delivered in regular shapes at Atlantic seaboard points. " The price named is the actual average selling price obtained by the United Metals Selling Co., the largest seller of copper, over the period of 10 years, 1907 to 1916, in- clusive, and represents in our opinion the fair average price of all copper sold by American producers during that time. " We offer the copper at this price notwithstanding our costs for labor, materials, sup- plies, etc., vary from 30 to 75 per cent above the average during the 10-year period, be- cause we believe it to be our duty to furnish the requirements of the Government in preparing the nation for war with no profit more than we received from our regular production in normal times. It is understood that the price quoted above is for the quantity and period of delivery above named." GOVERNMENT CONTROL OVER PRICES. 277 market, standing at the time at 32.57 cents per pound, was not secure, largely by reason of actual and threatened labor troubles. The price set was made tentative, subject to revision later when a Government price might be fixed. 1 Secretary of the Navy Daniels shortly after- wards announced that he would agree to pay 75 per cent of the above set price (25 cents), or 18.75 cents per pound, for the Government's order of 60,000,000 pounds, leaving 25 per cent per pound for adjust- ment when the cost of production shall have been determined by the Federal Trade Commission, The announcement of this policy, which was interpreted by some as an indication of what price the Government intended to fix, gave concern in some market quarters. 2 The War Industries Board agreed to advance 22.50 cents and to leave the difference between 22.50 and 25 cents to the findings of the Federal Trade Commission. The indebtedness of the Government to producers soon ran into millions of dollars, and refineries were short of blister and running at from 60 per cent to 75 per cent capacity. 3 Meantime, our entrance into war and the increasing copper require- ments found the market with scarcely enough copper to meet contract needs, even by calling existing stocks into use, watching supplies, and carefully conserving every pound of copper. Every pound of copper had to be allotted by a careful matching of output with consumers' needs, and where some particular brand of copper was required by the Government, existing contracts were released. Such were the abnormal and almost panicky conditions in the fall of 1917, requiring 1 Commercial and Financial Chronicle, June 30, 1917, p. 2603. 2 The Boston News Bureau, July 13, 1917, said in part : " At this writing it is not known whether the copper producers will accept without further parleys the offer of Secretary Daniels to purchase 60,000,000 pounds of cop- per at what is equivalent of 181 cents (75 per cent of 25 cents), with adjustment later on of 61 cents (25 per cent of 25 cents), which is the balance of the 25-cent figure named by the producers. " Any price less than 25 cents would involve serious labor controversies, and just now labor is demanding more than it had already agreed to accept on the sliding scale basis and has tied up the copper producing industry of Arizona, the biggest producing section of the country, in order to force its demands." The Wall Street Journal of the same date, said in part : " Small copper sellers have lowered prices for all deliveries. They are quoting July at 29J cents a pound ; August, 29 ; September, 28J ; October-November-December, 27J. This represents a reduction of one : half to 1 cent a pound. However, little business is being transacted. Inquiries are light, and leading producers show little inclination to quote September and last-quarter deliveries until the strike situation clears. " Washington's action in naming what appears to be a tentative price of 18| cents a pound, covering the 60,000,000-pound lot which was booked last week, leaving the re- maining 6| cents a pound subject to adjustment by the Federal Trade Commission, has not helped the copper situation. " It is pointed out that the miners are being paid on the basis of 30-cent copper, and that the average wage scale in June was $5.85. In view of unsettled labor conditions, prevailing high costs, and the predicted falling off both in mine and refinery output, pro- ducers contend that they should at least receive a flat price of 25 cents a pound." " The prices of Ferroalloys, Nonferrous and Rare Metals," by H. R. Aldrich and Jacob Schmuckler, W. I. B. Price Bulletin No. 34. 278 HISTORY OF PRICES DURING THE WAR. supervision and ordered control by the Government agencies in cooperation with the copper producers committee. 1 Electrolytic copper fixed on September 21, 1917. The story of how copper came finally to be fixed at 23.50 cents on September 21, 1917, is not really a complete one, unless preceded by a mention of the not widely-known decisions reached earlier by the War Industries Board to fix it at a lower figure and the storm of protest made to the Gov- ernment by the copper interests. The original formal fixing o| a copper price, made early in September but not announced, the meet- ing of the War Industries Board with the copper men immediately afterward to discuss in more detail the copper problem, the fixing of a final price the latter part of September, and the interpretation put upon its own action by the board are all essential parts of the story. The determination of the Government to fix the price at 22 cents. The War Industries Board met September 5, 1917, and, after dis- cussing the report upon costs of producing copper made by the Federal Trade Commission, reached a definite conclusion to fix copper at 22 cents per pound. To that end it passed the following formal resolution : 2 Upon motion duly made, seconded, and unanimously adopted, it was decided to recommend to the President, in accordance with his instructions to Mr. Baruch, that a price of 22 cents per pound f. o. b. New York be offered the copper producers for the United States Government requirements of copper. Mr. Baruch was asked to notify the President that the board is now ready to confer with him on this subject. The copper interests ask for a price of 25 cents. The copper inter- ests, in order that they might be made aware of the attitude of the board, were called to Washington on September 11, and told that the board felt that 22 cents per pound f. o. b. New York for refined copper was a fair price and would allow the producers a reasonable profit. The price, they were told, would hold for a certain period only and could then be revised upward or downward. The board told the producers, too, that that price had been determined upon as one applicable alike to the Government and its Allies, and that wages to labor should remain the same notwithstanding the sliding- scale agreement. Mr. John D. Ryan, in person, then and by a long written memo- randum three days later, represented the viewpoint of the copper interests to the Government through the War Industries Board. 3 1 The copper producers committee, while not responsible for fixing prices in the sense that the American Iron and Steel Institute was, did assume responsibility for the allocations. 2 This minute was taken from the War Industries Board Minute Book, for Sept. 5, 1917. 8 See War Industries Board Minute Book for Sept. 11, 1917 ; also a letter from Mr. John D. Ryan, representing the copper interests, addressed to the War Industries Board on Sept. 14, 1917. GOVERNMENT CONTROL OVER PRICES. 279 He said flatly that the copper interests could not control the price to the public at a point much below 25 cents, and that if the Govern- ment fixed 22 cents as the price, then the small high-cost producers would not voluntarily cooperate in selling at the fixed price. There would result, he contended, even more acute labor troubles should the then existing sliding scale of rates be disturbed. These points, after emphasizing the impracticability of the Government commandeering the numerous small high-cost mines, he dealt upon in more detail. Mr. Ryan and his associates, in proof of these arguments, gave evi- dence to show that if 22 cents per pound was finally fixed, it would 1)6 impossible to obtain the cooperation of the majority of mine owners. The copper industry, while its bulk of business was highly concentrated in the hands of a few producers, embraced after all a large number of smaller high-cost producers whose product was needed in the extraordinary emergency. But he assured the board that if it would allow a fixed price of 25 cents per pound, which the industry at large was holding out for, there would be no difficulty in distributing the copper properly and controlling its prices. If the higher price was not allowed, he said, the 300,000,000 pounds produced outside of the United States could not be con- trolled. 1 Not the most salient of all the reasons advanced by the copper men for a higher price was the intricate bearing which they clearly showed to exist between labor and copper prices. There are indeed few raw materials of which so large a percentage of the cost of pro- duction goes to pay wages. It was argued that the wages of all men in the copper industry had been advanced 50 per cent over those prevailing in 1915, and that in the more important western mining camps the wages were determined upon a sliding scale, based on the price of copper. 2 The labor unrest, while not so mani- fest in the copper industry until the summer of 1917, had become serious and the producers feared the consequences should the price ilt is noteworthy that during the interim between the appearance of the copper men in Washington and the later memorandum from them the War Industries Board had virtually made up its mind to the necessity of fixing a price of 25 cents for copper. The secretary of the War Industries Board, on Sept. 12, 1917, addressed the following letter to the chairman of the raw materials committee : " This will confirm to you the action of the War Industries Board taken to-day that the Government pay for copper for uses of the United States Government and the allied governments and the consuming public, 25 cents per pound f. o. b. New York. " It is requested that you arrange a conference with the President to advise him of this decision of the board." 2 These sliding scales provide for the minimum wages of $3.50 per day of eight hours lor miners and men employed underground, and $4.50 for mechanics, with many higher classifications where skilled labor is necessary ; the minimum to apply when copper sells below 15 cents per pound, and 25 cents additional per day to every man employed to be paid for each 2-cent advance in the price of copper above 15 cents. The result had been that for over a year wages were based on a price of copper at 27 cents and above, so that miners were receiving $5 to $5.25 per day, and all mechanics $6.25 to $6.50 per day. 280 HISTORY OF PRICES DURING THE WAR. for copper be set at a figure so low as to require a cut in wages or in the laborers' returns under the sliding-scale rule. The producers would, they said, endeavor to pay employees the same wages which they had been receiving during the months preceding based upon a price of 27 cents and over, should the Government fix the price at not lower than 25 cents. Even with the best of fortune, the producers feared then that the closing of mines through strikes would cut short the production of copper between September and January 1. 1918, by 140,000 tons. The industry made a proposal to the Government, in its contention for a price of 25 cents for copper, which has a peculiar war-time in- terest, coming early as it did before the Government had got really into the problem of raw-.material regulation. It was submitted by Mr. Ryan in his long memorandum of September 14, and was out- lined in part as follows: While some of the low-cost producers will show a large profit at 25 cents, some of the largest and practically all of the small producers can not show more than the usual peace-time profit at that price, and if depletion of mines is considered, their profit would probably be less than in normal times at average prices. We believe that it would be to the interest of the Government to pay 25 cents per pound .and to take all of the production of all of the mines of the country at that price, retaining all the copper which is needed for this Govern- ment and for its allies, and selling the balance at the same price, or approxi- mately the same price, to the public. The leading copper producers finally, on September 14, met in New York and decided among themselves to split the difference in price between that set by the Government at 22 cents and that asked by the producers at 25 cents, and according^ offered their full cooperation if the Government would allow them a fixed price of 23.50 cents. The record of that decision as given to the Government follows r 1 The representatives of the copper producers who attended our conference on Tuesday and Wednesday met in New York to-day at my request, and I recom- mended to them as a result of my talk with members of your board, looking toward a compromise in the matter of price that would result in obtaining the full assurance of cooperation and effort on the part of the copper producers, which we were all certain at our conference in Washington could not be secured at any price less than 25 cents, that a compromise be agreed upon at 23$ cents per pound. With one exception those present agreed that if your com- mittee would unanimously recommend a price of 23 cents * * * that we would still be able to get the practical result that we are aiming for, that is, pretty nearly maximum production; therefore I would say that if your com- mittee would agree to 23$ cents we can pledge the copper industry almost as a whole to use every possible means to secure a maximum production and to maintain the present scale of wages, and I am satisfied we can succeed. 1 Letter to the War Industries Board by John D. Ryan, dated Sept. 14, 1917. GOVERNMENT CONTROL OVER PRICES. *' 281 The price -fixed at %3\ cents. Finally, on September 21, 1917, the War Industries Board definitely fixed the price of refined copper, free on board New York, at 23J cents per pound. The regulation was in the form of an agreement between the Government and the producers and, as approved by the President, was subject to revision after four months. The same price later was continued in effect until June 1, 1918. 1 Under the agreement the copper producers pledged themselves not to reduce wages then paid; to sell their product to the Allies and the general public at the same price as that to be paid by the Government; to exert every effort to main- tain maximum production during the war ; and to take the necessary measures to prevent copper from falling into the hands of specu- lators. 2 The new agreement on copper with the Government was satisfactory to the industry. 3 Interpretation of the fixed-price policies. The copper industry, though immediately pleased with the new price determined upon for copper, began wondering within a week afterwards how the scheme would be administered and temporary confusion was introduced into the market. Neither the Government nor the industry had yet ad- 1 Meeting of the War Industries Board, Jan. 9, 1918. 2 The official announcement by the War Industries Board, on Sept. 21, 1917, of the final fixing of a copper price was as follows : After investigation by the Federal Trade Commission as to the cost of producing copper, the President has approved an agreement made by the War Industries Board with the copper producers fixing a price of 23J cents per pound f. o. b. New York, sub- ject to revision after four months. Three important conditions were imposed by the board : First, that the producers would not reduce the wages now being paid ; second, that the operators would sell to the Allies and to the public copper at the same price paid by the Government, and take the necessary measures, under the direction of the War Industries Board, for the distribution of the copper to prevent it from falling into the hands of speculators who would increase the price to the public ; and, third, that the operators pledge themselves to exert every effort necessary to keep up the produc- tion of copper to the maximum of the past, so long as the war lasts. The War Industries Board felt that the maintenance of the largest production should be assured, and that a reduction in wages should be avoided. The stipulation that present wages shall not be reduced compels the maintenance of the highest wages ever paid in the industry, which without such stipulation would, with a reduction made in the price of copper, be reduced under the sliding scale so long in effect in the copper mines. Within this year copper has sold as high as 36 cents per pound, and the market price would now be higher than it is, had it not been well known for some weeks that the Government would fix the price. The principal copper producers throughout the country have evinced an admirable spirit, and for weeks have promptly supplied every request of the Government for cop- per, without waiting decision as to price, and agreeing to accept the price which the Board should ultimately fix. The proper departments of the Government will be asked to take over the mines and plants of any producers who fail to conform to the arrange- ment and price, if any such there should be. 3 The Wall Street Journal of Sept. 21, 1917, said in part : " The copper trade was mildly surprised at the announcement that the Government's price, as well as that to the public and the Allies, had been fixed at 23| cents a pound. For some time past they had been led to believe that the price would be in the neighborhood of 221 cents a pound. The new figure was made known to some of the big producers earlier in the week, but they were pledged to secrecy, and consequently refrained from discussing the matter in advance of an official announcement. The consensus of opinion in the trade is that the new figure is satisfactory." 282 HISTORY OF PRICES DURING THE WAR. justed itself to the detail of regulation or was prepared, at a moment's notice, to answer all price-fixing questions as they arose. 1 The trade soon directed inquiries to the board to learn what would be the status of all outstanding contracts with the Allies at higher prices than the fixed price; whether the new announcement would allow that copper be traded in for delivery after January 21, at prices to be arranged by contract, regardless of the Government fixed price; whether the Government contemplated eliminating all trade in copper, except at the fixed price; whether the Government meant that other prices, than those for electrolytic copper as such, be fixed in line with that base price ; and whether all bona fide con- tracts in existence on September 21 were to stand. 2 All outstanding contracts between producers and consumers, as matters stood, might, it was understood, be consummated at book prices. That called for the delivery of copper at a price as high as 27 cents a pound. Under the priority agreement, however, the Government had first call, and the Allies second; which, coupled with the existing shortage in supplies of refined copper, made it very difficult for American manufacturers to get copper, except to fill Government orders. 8 The board, in response to inquiries regarding the status after January 21, 1918, ruled that all contract sales made for delivery after the expiration of the present fixed price should be made at a price subject to any revision which the board might see fit later to make. It was made known to the Government shortly after control of copper had set in, that there were a large number of outside dealers and brokers, other than producers, who were still trading and quot- ing 28.29 and 30 cents for copper. The gradual setting up of a control committee or selling agency, with Government sanction and representation, crowded off many of these dealers who had bought copper direct from mining companies at figures higher than the fixed price and who would, under the new price, be forced to sell at a loss. The board, however, held firmly to its belief that the fixed price should be made applicable to all trading in refined copper. The board was strongly urged, at least from one quarter, to extend the price fixing of copper by establishing a scale of prices based on 1 The Wall Street Journal of Sept. 27, 1917, said in part : " A canvass of the larger copper producers in New York discloses great uncertainty in the copper market, not- withstanding price fixing by the Government for the next few months. Both producers and consumers are ' up in the air,' due to lack of details in connection with the carry- ing out of the proposed plans for handling the copper market, and this condition will continue until Washington furnishes more detailed advices as to what can be done and what should not be attempted under the new order of things. 2 A majority of these questions were raised in a letter by Eugene Meyer, jr., dated Oct. 19, 1917, to Mr. Baruch and were answered the same day by the secretary of the War Industries Board. 8 Commercial and Financial Chronicle, Sept. 29, 1917, p. 1264. GOVERNMENT CONTROL OVER PRICES. 283 modifications, specifications, and shapes, and particularly to issue a scale of prices on scrap copper. It ruled, however, to fix no other prices than those for electrolytic copper. 1 Appeal of small high-cost producers for an increase. The relative hardship, if any, of the fixed price of 23J cents was borne not by the larger low-cost but by the small high-cost producers. Complaints from these more numerous and less efficient concerns, however, became more and more serious, since by 1918 it was estimated the Government was taking fully 93 per cent of the total copper supply for the war program. Of this amount the United States was con- suming about 49 per cent and the Allies 44 per cent. 2 The Govern- ment then could not afford to ignore the interest of any branch of the copper industry. 3 The price-fixing committee, however, after a con- ference with the copper interests and an examination of cost sheets, decided on May 22, 1918, despite the apparent disadvantage under which certain high-cost producers were operating, that the price of 23J cents be continued for at least another 75 days, until August 15, 1918. The committee began fearing shortly afterwards, however, that the advance in freight rates and the possibility of an increase in the costs of labor might make it necessary to increase the price before that time. 4 Electrolytic copper increased to 26 cents on July 2, 1918. The increased costs of producing copper, 5 as the price-fixing committee feared, required that relief be given before the expiration of the pending agreement, on August 15. Accordingly, the committee on July 2 increased the price of electrolytic copper from the price of 23J cents, which had been originally fixed by the War Industries Board nine months before, to 26 cents on July 2, 1918. 6 The new 1 Oct.. 25, 1917, the board allowed a differential of from 5 to 10 per cent for L. C. L. shipments over the 23|-cent price because of extra handling, in accordance with trade practices. 2 The Prices of Ferroalloys, Nonferrous, and Rare Metals, by H. R. Aldrich and Jacob Schmuckler, W. I. B. Price Bulletin No. 34. 3 The Wall Street Journal of Apr. 30, reported that in Boston : "It is believed that at the meeting next month the Government will make a general advance in the price of copper to 24 1 cents per pound, this extra cent constituting a basis for settlement be- tween producer and refiner that will be fair to both. " This, however, does not take care of the small army of high-cost producers, whose costs have risen in some cases to as high as 30 cents a pound, but who are operating on a reduced scale in order to keep their mines and equipment in good condition and not to demoralize their working organizations. About 15 of these companies, with an aggre- gate capacity of 75,000,000 pounds annually, have formed a committee and are to present their case at Washington next month." * Minutes of the price-fixing committee for June 3, 1918. 5 The Wall Street Journal of July 3, 1918, said in part : " The biggest factors which apparently influenced the price-fixing committee in its decision were the 25 per cent freight rate increase and the advancing prices for all supplies and equipment. As pre- viously pointed out, the freight charge added at least 1 cent a pound to operating costs. Both items combined have increased costs something like 1\ cents a pound throughout the entire industry." 6 The price-fixing committee on June 5, 1918, approved certain additional charges on copper shapes. 284 HISTORY OF PRICES DURING THE WAR. agreement was to be subject to revision again on August 15. The maximum Government fixed price of 26 cents per pound for electro- lytic copper was continued in effect, from time to time, until the close of war and the lifting of copper control. Summary. Before this country undertook a formal price fixing of copper it had helped to negotiate a purchase of 77,000,000 pounds for the Allies on a memorandum agreement that the price be deter- mined later, and had itself purchased one order of 45,510,000 pounds of copper at 16f cents per pound in March, 1917, and still another of 60,000,000 at a tentative price of 25 cents per pound, which was later lowered. There was a considerable disagreement, when finally the Government came to fix a price between -the Government and the producers whether the price should be 22 cents or 25 cents. It was, in point of fact, fixed at the compromise price of 23^ cents on Sep- tember 21, 1917. Not until July 2, 1918, was that price increased to 26 cents, or in any way modified. The new and higher price, which was necessitated by an increase in freight rates and costs of production, continued in effect until the lifting of copper control after the war. Copper price fixing, undertaken not to peg prices and to prevent their rising to higher points so much as to assure stable and adequate production, was one of the earliest and most important of the war- time controls. For all of that, it was one of the simplest. Not throughout the whole war period did the Government undertake to exercise widespread price fixing over other than electrolytic copper, the great basic raw material of the industry. Such a simple con- trol, however, was peculiarly possible in the case of copper, since the Government itself took virtually the whole output and was really fixing a price for its own purchases. ALUMINUM. The aluminum industry in the United States is concentrated in the hands of a single producer, and the price situation during the war presented no problems especially difficult. The greater part of the metal consumed in this country is bought under long-time con- tracts, and although the spot market was often beyond control during the war the contract quotations never exceeded reasonable bounds. It was not until the middle of 1915 that the aluminum demands of the Allied Governments, both for industrial uses and the production of " ammonal," 1 were felt in the United States. When these de- mands did appear they upset the spot market, and aluminum prices 1 " Ammonal," which is a mixture of aluminum dust and ammonium nitrate, Avas used in tremendous quantities by the allied Governments in the manufacture of munitions. GOVERNMENT CONTROL OVER PRICES. 285 started on an upward course which was equalled during war time by few commodities. 1 When the United States entered the war, aluminum was selling on the open market at about 60 cents, while contract prices ranged around 38 cents. It was evident that our war needs would be very large and almost immediately steps were taken toward providing for our necessary requirements. Indeed, it was but 19 days after the memorable April 6, 1917, when the general munitions board received a letter from the president of the Aluminum Co. of America, in which he offered to provide the United States Government with ap- proximately 2,000.000 pounds of ingots at 2?i cents a pound, a price about 10 cents lower than the current contract figure and less than one-half of the open-market quotation. This offer was accepted, and later extended to cover 8,000,000 pounds to be delivered not later thaji August of that year. When the time came for the renewal of this contract in September, however, the Aluminum Co. of America appears to have been doubtful whether 27| cents was a just price. Price-fixing talk had already begun to circulate in the trade, and it was believed by those interested that some definite govern- mental action would soon follow. 2 Accordingly, in September, 1917, the Aluminum Co. of America agreed with the War Industries Board " to accept direct and indi- rect Government orders at the prevailing contract price" (38 cents) and to refund to the Government any difference which existed be- tween this contract price and any " fixed price " which might be de- cided upon at a later date. 3 Meanwhile, the Federal Trade Commission had been asked to look into the cost records of the Aluminum Co. of America preparatory to the adoption of a definite fixed price on aluminum ingots, and its products. These data were first received by the War Industries Board in early 1918, and on February 28, the War Industries Board 1 January, 1915, found prices at 19.08 cents or slightly below the prewar, average. By April aluminum was selling for 18.88 cents on the open market, a figure which was lower than the contract price. In May the extraordinary rise began and quotations for that month were around 22 cents. The following month saw aluminum selling for 30 cents, while before the year came to an end the open-market price was quoted at 57.73 cents. Thus, a rise of over 190 per cent was experienced within a single year. This rise con- tinued in a more moderate degree through 1916, the highest point being in November, when aluminum sold for 65.12 cents. It has been said " that many concerns took down their aluminum transmission lines during 1915 and 1916 and replaced them by copper wire in order to take advantage of the abnormal market conditions ; for with copper at 17 and 18 cpnts and aluminum at over 50 cents it was possible to make a change with a good profit. See War Industries Board Price Bulletin No. 34, " Ferroalloys, Non- ferrous, and Rare Metals." 2 This was especially evident in view of the growing demands of the military forces. It is estimated that the war requirements of the United States called for approximately 63 per cent of the aluminum supply of the country and those of the Allies about 20 per cent. This made a total of over 80 per cent of our supply which was devoted to war needs. 3 It was apparently presumed that any fixed price which might be later adopted would be lower than the current contract price. 286 HISTORY OF PRICES DURING THE WAR. recommended a maximum price of 32 cents per pound for aluminum ingots f. o. b. plants of the Aluminum Co. of America. 1 This price was approved by the President on March 2, and was made applicable to all governmental and civilian purchases up to June 1, 1918. On May 9, the question of extending aluminum prices after June 1 was brought before the price fixing committee. It appears that the producers in order to supply the increasing war needs had been com- pelled to enlarge their plants, and they felt that the large cost of such additions warranted an addition of 3 cents per pound to the price soon to expire. A compromise was made, however, at 33 cents, or an increase of 1 cent over the old price. On August 20, it was agreed to continue the 33-cent price until March 1, 1919, when it expired by limitation. LEAD. \ Expectation that the Government, after the declaration' of war, would enter the market for large amounts of lead gave further stimu- lus to a market which had been already inflated by strikes, traffic congestion, and large European demand. On July 1, 1917, lead was quoted at 11.17 cents per pound, the highest market price on record. This price, relatively about 80 per cent higher than the market quota- tion for the preceding January, represented a rise of 160 per cent above the average price for the 12 months preceding the outbreak of war. In April, 1917, lead was not over plentiful and domestic con- sumers, fearing an even greater stringency after the United States began to purchase her necessary supplies, started to buy large stocks for accumulation. The General Munitions Board in late May, 1917, considered at some length the advisability of commandeering suffi- cient lead for Army and Navy requirements. 2 Although the Govern- ment needs at that time were relatively small, 3 it was believed that in the coming months lead requirements would grow. On June 18, 1917, the General Munitions Board approved an order for 8,000 tons for July delivery, and 25,000 tons for delivery during August, September, and October at 8 cents per pound. 4 1 This price was to apply to purchases in lots of 50 tons or more of ingot of 98-97 per cent grade. The same differentials which had formerly been in force were to be continued for the sundry other grades and products. 2 See minutes of the General Munitions Board, May 23, 1917. 3 An announcement made in May in an attempt to reorganize the lead market which had gotten out of control was to the effect " that the May and June Government requirements would not exceed 2,500 tons." See " Price of Ferro Alloys, Nonferrous, and Rare Metals," War Industries Board Price Bulletin No. 34, by H. R. Aldrich and Jacob Schmuckler. 4 This price it will be noted was 3.67 cents lower than the current market price. It appears that the raw materials committee experienced some difficulty at first in getting its supplies at this figure, and in early July the question as to whether they would secure sufficient lead to meet requirements was a matter of deep concern. They reported to the General Munitions Board on July 12, 1917, that the lead committee had written to some 1,100 lead miners relative to the 8,000 tons of lead which they had agreed to deliver at 8 cents, and that only 40 replies had been received. GOVERNMENT CONTROL OVER PRICES. 287 This price though considerably lower than the open market price was not to prove as advantageous as it first appeared, for a temporary over-production of lead soon broke the market. Even in July, lead prices began to fall back toward their level of previous months, while August and September witnessed price declines which finally brought market quotations for lead in early October to 6.71 cents. This price, which was 1.39 cents lower than the Government agreed price, made it evident to the purchasing authorities that they were contending against a very unstable market arid that further action would have to be taken. The first solution considered was a system of price fixing. A suggestion to that effect was made to the War Industries Board on October 24, 1917, but the lack of sufficient cost data upon lead made that method inexpedient and other means for regulating lead prices were sought after. 1 The method of price regulation finally adopted was to average the prices for each month as they appeared in the Engineering and Mining Journal, and accept the figure thus arrived at as the price to be paid on Government de- liveries for each respective month. What really occurred, then, was the inauguration of a contract under which the United States Govern- ment agreed to purchase its supplies from the various lead producers at the average current monthly price. The producers on the other hand, agreed to supply the Government at this price with a minimum of 6,000 and a maximum of 12,000 tons of lead each month. With governmental requirements determined, and the price to be paid for Army and Navy supplies made relatively the same as the open market quotations, it was believed that the element of specula- tion would disappear and a more stable market restored. But the freight congestion of early 1918 upset all calculations, and with a scarcity of lead bullion at the eastern refineries resulting from an inability to get shipments through from the Middle Western mines, spot market prices started upward. Moreover, the direct and in- direct war demands for lead began to increase, 2 while a strike tied rp the output of the country's second largest producer during the greater part of March end April. The rise which had started early in the year continued and by June it was feared that a recurrence of the market upheaval of the preceding year might come. On June 4, 1918, a lead committee 1 It was, moreover, the belief of the War Industries Board that price fixing was unneces- sary, since there was a large supply of lead in the market and consequently little proba- bility of prices rising back to the inflated levels of the summer months. 2 The total direct allotments of lead to the United States Government from July, 1917, to November, 1918, amounted to 150,400 tons. Compared to the total production of the country this shows a direct war consumption of about 20 per cent. A considerable amount, however, was consumed by the Government in the indirect purchase of manufac- tured articles, and it is estimated that by the middle of 1918 upwards pf 60 per cent of the domestic lead production was going into war consumption. 288 HISTORY OF PRICES DURING THE WAR. made up of various members of the trade was appointed at the request of the War Industries Board. To this committee was intrusted the distribution of domestic lead, subject to the supervision of the War Industries Board and to them also was virtual!} 7 left the oversight of market prices. The industry, moreover, was warned to keep prices below excessive levels, and only sufficiently high to produce a supply adequate to meet Government needs. On June 14, the lead producers committee agreed to sell no pig lead at a price exceeding 7.75 cents per pound f. o. b. St. Louis or 8.05 cents New York City ; while the Engineering and Mining Journal consented to consider no sales made at a higher figure in computing its monthly average price at St. Louis. In this way the market price of lead was virtually fixed to all consumers, and although no formal action was taken by the price fixing committee lead prices remained unchanged from July 1, to the sighing of the armistice. 1 ZINC. The zinc industry in 1915 experienced a market situation quite similar to that which characterized aluminum, and from all available evidence it must be concluded that the same forces can be held ac- countable for both upheavals. In both instances it was the large de- mand for export purposes which caused the rise in prices. So extraordinary were the requirements of the munitions makers for zinc that regular zinc consumers, such as galvanizers who were ac- customed to purchase on contract at market prices, were virtually forced in many cases to shut down their plants. 2 The demands of the American Army took the form of sheet zinc, which was used chiefly in the manufacture of boxes for packing explosives. In early July, 1917, the committee on raw materials of the general munitions boards 3 arranged with the producers for delivery of 10,000.000 pounds of zinc at 12J cents per pound. 4 The market price at this time was 19 cents, and it is evident, therefore, that a considerable saving had been realized. Several later purchases were made at prices varying from 12 to 134 cents, but it was not until early in 1918 that any definite 1 The final agreement entered into by the Government relative to the determining of the price of lead by average monthly prices at St. Louis, expired on Nov. 30, 1918. 2 The price of spelter rose from 4.97 cents in December, 1914, to 22.14 cents in June, 1915, an increase of approximately 350 per cent in six months. This price rise had a far- reaching effect upon production within the industry and the first half of 191.5 witnessed the erection of many new smelters as well as the reopening of many coal-burning plants which had been closed. 3 A zinc committee, composed of leading representatives of the industry, was appointed in April, 1917, by the raAv materials section of the Council of National Defense. The ac- tivities of this committee were advisory in the procurement of supplies and the determina- tion of fair prices to be paid by the Government. 4 It is interesting) to note at this point that the Navy several days previous had pur- chased an amount of zinc at 15 cents. GOVERNMENT CONTROL OVER PRICES. 289 form of price fixing was adopted. In November, 1917, to be sure, the President had asked the War Industries Board to fix the price of zinc to the public and the Government, even though the military re- quirements were only a small per cent of the total production. But the lack of cost data was here, as in the case of lead, the deterrent factor and the matter was laid aside until further information rela- tive to costs could be collected by the Federal Trade Commission. In Januarj T , 1918, the War Industries Board finally took the zinc situa- tion in hand, and after conferring with the members of the industry arrived at a price which they considered fair, both to producers and consumers. This price, based on various cost data, was placed at 12 cents for grade " A " zinc f . o. b. East St. Louis, subject to the usual trade discounts. It was to remain in force for four months and was to become effective as soon as approved by the President. The price of zinc sheets, of which 80 per cent was being consumed for direct and indirect war purposes was also fixed at this time, the figure adopted being 15.6 cents at plant or 16 cents delivered. 1 Similarly, zinc slab prices were also pegged at 14.6 cents at plant. By May the market price of Grade "A" had fallen to 10 and 11 cents, and the ques- tion arose as to whether a downward revision should be undertaken by the price fixing committee. The various governmental authori- ties, however, did not believe that such a policy should be adopted, for they felt that a high maximum price should be maintained so as to keep in operation many of the high cost mines whose product was required by the Army. The 12 cent price was therefore con- tinued until September 1. This figure was also later adopted, in spite of a request for a higher price by the producers, for the three months ending January 1, 1919. NICKEL. The World War appears to have had relatively little effect upon the price of nickel and. indeed, it may be said that there were at no time any extraordinary circumstances which demanded price inter- ference by the Government. As in the case of aluminum, nickel pro- 1 This price was 2.33 cents lower than the current market quotations. It should be added here that not only did the individual producers agree to the above prices, but they also pledged themselves to fulfill certain conditions in respect to the manner in which they would conduct their business. Thus, the following agreement was attested to by the producers : It is agreed both by the producers of grade " A " and of plate and sheet zinc that 1. They will not reduce the wages now being paid. 2. They will sell to the Allies, to the Government, and to the public at the same price. 3. They will take the necessary measures under the direction of the War Industries Board for the distribution of zinc to prevent it from falling into the hands of speculators who might increase the price to the public. 4. They pledge themselves to exert every effort necessary to keep up production and to insure an adequate supply so long as the war lasts. 125547 20 19 290 HISTORY OF PRICES DURING THE WAR. duction was concentrated in the hands of a single concern and this producer from the very outset was anxious to cooperate with the authorities in charge of raw materials. Thus, on August 15, the nickel interests arranged to supply nickel to the Government at 40 cents per pound, a price which was 20 per cent below the current market quotation and slightly lower than the prewar average. The military demands for nickel, however, were very large, and estimates place the amount devoted to direct and indirect war uses as high as 90 per cent of the total production. Despite the size of these demands, the supply was at no time so short as to cause any serious difficulty. Whatever shortage did exist at various intervals may be attributed to the limited capacity of the rolling mills. The price of nickel was at no time fixed and the Government secured its requirements under long-time agreements. The Secretary of the Navy on January 4, 1918, asked the War Industries Board to fix a price, but this body at the time did not consider such action advisable. On January 8, 1918, the International Nickel Co., which refines virtually all the nickel produced in the United States, offered to supply the American and allied Governments with their nickel requirements at 35 cents per pound for ingot nickel, 38 cents for shot nickel, and 40 cents for electrolytic nickel. The ingot price, it will be noted, was lower than the price of the previous August, and repre- sented a decrease of 30 per cent from the market price for January. 1 This offer was accepted and the prices specified remained in effect for Government purchases until December 31. One restriction was added to the agreement, however, in May. It appears that the International Nickel Co. was having difficulty at about this time in filling its contracts, and the authorities in charge felt that restrictions should be placed upon the industry. The matter was therefore placed before the price fixing committee, who discussed the fixing of a definite price applicable to all purchases, but took no action relative to prices other than to approve the existing quotations for Govern- ment orders. One concession was exacted( from the producers. They were compelled to agree to extend no old contracts or make any new future contracts which tied up their production for any period of time without first consulting the price-fixing committee. In this way control over the entire production of nickel was placed in the hands of the price fixing committee, and although no price was ever fixed or agreed to for sales to the public, the price of nickel (except- ing, of course, some 10 per cent which did not go into war uses) was kept as completely in check as was the price of any other nonferrous metal dealt with by the price fixing authorities. 1 The International Nickel Co. further offered to supply monel nickel (two-thirds nickel and one-third copper), which was used in considerable quantities by the Navy, for 32 and 38 cents per pound, depending upon the grade, the former price to be applied to nickel for shot-metal purposes and the latter to finished rolled rods. GOVERNMENT CONTROL OVER PRICES. 291 QUICKSILVER. The price of quicksilver, which in 1916 shot to almost eight times its average for the year preceding the outbreak of the war, had receded to a normal level by the time the United States severed relations with the Central Powers. 1 The year 1917, however, wit- nessed relatively high prices in the quicksilver industry, and the gen- eral run of quotations throughout the year was almost 200 per cent higher than the prewar average. In spite of this fact no action was taken by the military authorities relative to the price of quicksilver, since their requirements when compared to the total production of the country were small. The speculative nature of the industry led them to believe that it was but fair to the producers to allow an extra margin of profit for civilian sales. But it soon became evident that a definite agreement ought to be made for Government purchases to stabilize prices and expedite the placing of contracts. The pro- ducers were therefore called into council, and they agreed to furnish the Government with quicksilver at $105 per flask of 75 pounds, delivered at the Mare Island Navy Yard in California or at $105.75 delivered at the Brooklyn Navy Yard in New York. Moreover, they informally pledged themselves not to allow the market price to go beyond $130 per flask. The importers also agreed to furnish sup- plies to the Government at the same figure as had been fixed for the domestic product. 2 This agreement which was to expire at the end of 1918 apparently was considered in a very favorable light by the members of the quicksilver industry. This was especially so in view of the fact that the cessation of hostilities threatened the opening of the Ameri- can market to foreign producers. Accordingly, on November 20, they asked the price fixing committee to continue the agreed Govern- ment price after January 1, 1919. Conditions in the opinion of the committee did not, however, warrant any such action, and on De- cember 31 the price agreement with the quicksilver industry came to an end. TIN. Although the United States is the largest consumer of tin in the world ; as in the case of rubber, nitrates, and several other essentials, it is dependent almost wholly upon foreign sources for its supply. The shipping situation of 1917-18 threatened our supplies of pig tin and as early as May, 1917, it was announced at a meeting of the Gen- ir The freeing of the American market from the domination of Spanish and Italian Imports advanced quicksilver prices to $283 per flask by February, 1916. Indeed, prices became so high that explosive producers found it almost 'impossible to fill their orders for foreign countries. It was not until the American contractors had induced the British Government to raise their embargo on quicksilver exports to the United States that a recession in the American market occurred. 2 The total quantity of quicksilver taken under this agreement was equal to about 40 per cent of the domestic and imported supply. 292 HISTORY OF PRICES DURING THE WAR. eral Munitions Board that there was an actual shortage. Indeed, the supply of tin in the United States continued insufficient through- out the entire period of American belligerency, and the Food Administration at all times was compelled to keep under control the use of tin plate in the canning industry. On October 21, 1917, the War Industries Board, at the request of the food authorities, fixed the price of tin plate at $7.75 per box, a figure which was about one-half the current market price. 1 Although it was evident from the very beginning that a strict control would have to be exercised, not only over the American supply but also over such tin as was needed by our Allies, it was not until the late summer of 1918 that any definite action was taken toward the pooling of all purchases. The machinery for such a centraliza- tion of purchases was an interallied tin executive set up in London to control and direct all purchases of pig tin for the participating countries. Buying agents were appointed in the various producing countries and import licenses into the United States were granted only for such tin as was purchased through these agents. In Sep- tember, 1918, the American Iron and Steel Institute, at the request of the War Industries Board, assumed charge of the importation and distribution within the United States. This organization then was made the sole consignee for all tin imported into the United States and "was to receive and pay at the source of supply for all tin allocated to the United States by the interallied executive." Such tin, in turn, was to be distributed at cost only to consumers, jobbers, and dealers in the United States, who held purchasing licenses issued by the War Industries Board. 2 In December, 1918. the War Industries Board notified the trade that the interallied tin executive had allocated 10,169 tons of tin to the United States, and that this metal would be distributed to those who held War Industries Board licenses at a price of 72^ cents a pound ex dock New York City. These prices were to remain in force during December, 1918, and January, 1919. Regulations were enacted relative to the amount which could be purchased, and the profits of dealers who resold to ultimate consumers were fixed at definite levels. 3 The international tin-purchasing agreement was canceled on December 12, 1918, but limitations as to imports were retained until 1 See Minutes of War Industries Board, Oct. 31, 1917. 3 The War Industries Board put the consumers of tin under a license so that whatever supply was available might be distributed for essential uses only. In applying for a license applicants had to state not only how the tin desired was to be used but also when and where it was to be used. 8 Dealers who sold in lots of 5 tons or over were allowed to make sales to consumers or jobbers holding. purchasing licenses at a maximum gross profit at 2* per cent; while those who sold in lots of less than 5 tons were allowed a profit of 5 per cent. Con- sumers were allowed to purchase only a fixed maximum amount of tin, and this was based on their consumption for the first 10 months of 1918. GOVERNMENT CONTROL OVER PRICES. 293 the amount allocated to the United States had been distributed. Indeed, the restrictions upon the importation of tin are still in force (July 15, 1919). although the War Trade Board has announced that on August 1 the distribution of the metal will once more become free. 1 PLATINUM. The necessity of having a sufficient supply of platinum in the United States for war purposes led in July, 1917, to an order by the Secretary of the Treasury to the effect that all platinum which passed into the United States mints should be withheld from com- mercial uses. But this order did not lead to the accumulation of sufficient supplies and it was followed on February 23, 1918, by a Government requisition which covered the supplies and output of the 14 largest smelting, refining, and manufacturing plants in the country. On May 1 a further requisition order, effective until June 30, was issued, while on July 1, an order which covered the supplies of 90 per cent of the firms doing business in platinum and kindred metals was put into effect for the remainder of 1918. The supplies thus requisitioned were collected at the United States assay office at New York and in the plants of the large refiners, and later allo- cated to consumers at the order of the War Industries Board. Since virtually the entire platinum supply was concentrated in the hands of the United States Government, some arrangement was necessary relative to the prices to be paid to original holders of the requisitioned metals. The figure agreed upon which was later made the market price was $105 per Troy ounce for pure platinum 2 and this price remained in effect until December 1. COTTON TEXTILES. The early need for regulation. One of the several bodies created as a part of the General Munitions Board to supervise the purchasing of the necessary war materials 3 was the committee on supplies, for- mally appointed in February, 1917, under the chairmanship of Mr. Julius Rosenwald. Among the many commodities with which this committee dealt were cotton and cotton fabrics, great quantities of which were being asked for by the various Government departments. Even in these early days, when there was no definite policy as to the size of the Army, and consequently no idea as to its prospective demands, the question of prices those of cotton and cotton fabrics 1 A complete review of the tin situation in the United States during the period 1913 to 1918 will be found in War Industries Board Price Bulletin No. 34, " Ferroalloys, Nonferrous and Rare Metals," by H. R. Aldrich and Jacob Schmuckler. 2 The price fixed for pure palladium was $135 per Troy ounce and for pure iridium $175 per Troy ounce. 3 See p. 200 of the present volume. 294 HISTORY OF PRICES DURING THE WAR. among others played a significant part in the committee's delibera- tions. Thus, on April 7, 1917, a complaint was registered at a meeting of the munitions board to the effect that difficulty was being experi- enced with the producers of raw cotton, and that a meeting would be held with representatives of the industry relative to the fixing of a price. 1 Shortly afterwards 2 it was pointed out that cotton was costing the Government * * * a great deal more than necessary ; because of the fact that cotton on which bids were * * * being based was extremely high. * * * and on the same day the chairman of the munitions board asked for the right to discuss with the chairman of the Council of National Defense the subject of prices, and to state to the chairman that the discussion had led to serious recommendations as to limiting the prices of cotton. 3 To assist the committee on supplies, both in the issuance of clear- ances and priorities and in the coordination of governmental re- quirements, a cotton goods committee, made up of members of the trade, was appointed in May, 1917. This body undertook to recom- mend to the cotton trade " fair " prices for a number of fabrics especially needed for the Army and Navy, and these prices served as a guide to government purchasing agents in placing contracts. 4 This mode of price fixing, though embryonic in form, seems to have been quite successful and the prices recommended by the cotton goods committee were accepted by influential manufacturers. Its activities resulted, no doubt, in considerable saving to the govern- ment. But evidence appears that a large part of this saving was realized at the expense of the purchasing public, and while those cotton fabrics used in quantity by the various war agencies were as a whole rising but slightly 5 the prices of textiles which played little part in military and naval consumption continued a steady upward trend. Thus, for example, the prices of ginghams and print cloths, 1 Minutes of the General Munitions Board for Apr. 7, 1917. 2 Ibid., minutes, Apr. 18, 1917. 3 Raw cotton at this time was selling for about 20 cents a pound, a price about 50 ,per cent higher than the average for the 12 months preceding the outbreak of the war (see table of prices on p. 539), and cotton fabrics in general had reached a level approxi- mately 70 per cent above that of the prewar year. The price of the chief staple cotton product sheeting had advanced 80 per cent above the 1913-14 average. 4 Among others, cotton duck was an important item, the price of which was fixed. The fair prices recommended on these fabrics are published in W. I. B. Price Bulletin No. 23. 5 In several cases such as duck, uniform cloth, etc., the Government price actually fell during the latter half of 1917 (see table below). This may be explained in part by the fact that most of the cotton cloths bought in the early months of the war were purchased in a highly competitive market in which an individual Government department had to meet not only the competition of the purchasing public and the Allies but also the competition of other Government departments. The coordination of purchases which followed the creation of the cotton committee undoubtedly was an important factor which led to the lowering of prices in the several instances when a decrease was noted. / The fact remains, however, that in no known instance did the price of those cotton goods, the bulk of which was consumed by the general public, decrease during the last six month of 1917. GOVERNMENT CONTROL OVER PRICES. 295 in the months July to December, advanced approximately 50 per cent as compared with the prewar level. In the same period, on the other hand, the price of denim, tremendous quantities of which were used by the Army and Navy, rose but 35 per cent as compared to the average level of 1913-14, while standard United States Army duck sold at a price in December, 1917, which, reduced to relative terms on a prewar base, was but 27 per cent higher than that of the preceding July. 1 1 The appended tables depict the price situation in the cotton industry during 1917. The Government prices of the fabrics used in quantities by the United States Army and Navy remained relatively stable. The Army price of hosiery fell quite steadily during the last five months of 1917, while the market price for the consuming public continued to rise, and cotton denim prices paid by the Government were at all times lower than the market prices paid by the general public. UNIFORM CLOTH, OLIVE DRAB, USED BY ARMY. [Base price, $0.125 per yard.] 1917 1918 1917 1918 January $0.2911 October $0 3154 $0 3551 February .2878 November 3218 3410 March .2893 December 3074 3010 April .2870 Quarters: May .2882 First 2894 June .3010 Second . 2921 July $0.3297 .3114 Third 3216 3272 August .3230 .3275 Fourth 3149 3324 September .3121 .3426 Year 3182 3103 DUCK, SHELTER TENT. [Base price, $0.2033.] January . $0. 2200 $0. 3200 October . . . $0.3200 $0 4150 February .2550 .3200 November 3200 4150 March .2550 3200 DeofiTnbfir 3200 4150 April .2700 .3200 Quarters: May .2850 .3200 First 2433 3200 June .3450 .3200 Second . . 3000 3200 July .3450 .3200 Third.. .3450 3517 August .3450 .3200 Fourth 3200 4150 September .3450 .4150 Year .3021 3517 GINGHAM, 26HNCH, 57 BY 50, 6.5 YARD. [Base price, $0.0609 per yard.] 1913 1914 1915 1916 1917 1918 January $0.0613 $0. 0613 $0.0588 $0.0650 $0.0838 $0. 1561 February . ... .0625 .0613 .0588 .0700 .0838 .1713 March .0625 .0600 .0588 .0700 .0875 .1713 April .0625 .0600 .0588 .0750 .0925 .1713 May ... .0625 .0600 .0588 .0750 .0975 .1713 June . . . .0625 .0600 .0588 .0750 .1025 .1713 July.... .0625 .0600 .0588 .0750 .1250 .1713 August .0625 .0588 .0588 .0750 .1250 .1815 September .0588 .0588 .0588 .0750 .1388 .1900 October. .0613 .0588 .0588 .0750 .1388 .1900 November .0613 .0588 .0625 .0788 .1438 .1900 December .0613 0588 .06g5 .0838 .1525 .1900 Quarters: First .0621 .0609 .0588 .0683 .0850 .1662 Second 0625 0600 .0588 .0750 .0975 .1713 Third .0613 .0592 .0588 .0750 .1296 .1809 Fourth.. .0613 .0588 .0613 .0792 .1450 .1900 Year 0618 .0597 .0594 .0744 .1143 .1771 296 HISTORY OF PRICES DURING THE WAR. The " fair price " decision of the cotton goods committee, however, did not entirely solve even the price problems of the United States Government. Difficulty was being experienced, especially by the Navy, in securing sufficient supplies at reasonable prices. This was especially true in the case of cotton canvas, where it was becoming impossible to secure favorable bids. 1 Footnote continued from p. 295. PRINT CLOTHS, 39-INCH, 72 BY 76, 4.25 YARD. [Base price, $0.0648 per yard.] 1913 1914 1915 1916 1917 1918 January $0. 0650 $0. 0675 $0. 0500 $0.0600 $0. 0925 $0. 1487 February .0637 .0669 .0512 .0612 .0937 .1550 March .0625 .0662 .0500 .0612 .0937 1837 April .0600 .0662 .0531 .0662 .1000 . 2150 May .0575 .0625 .0562 .0700 .1050 2100 June .0594 .0650 .0525 .0687 .1225 .2250 July .0587 .0625 .0500 .0687 1325 2250 August -0587 .0625 .0506 .0712 .1275 .2100 September .0625 .0550 .0512 .0800 1250 1987 October. .0662 .0512 .0587 .0875 . 1325 1987 November .0700 .0500 .0575 0962 1400 1987 December. .0675 .0500 .0575 .0975 .1500 1800 Quarters: First .0637 .0669 .0504 .0608 .0933 1625 Second .0590 .0646 .0539 0683 1092 167 Third .0600 .0600 .0506 0733 .1283 .2112 Fourth .0679 .0504 .0579 .0937 .1408 .1925 Year .0626 .0605 .0532 0740 1179 1957 DENIM USED BY ARMY, BLUE, 28-INCH, 8-OUNCE TWILL (3/1). [Base price, $0.1413 per yard.] 1917 1918 1917 1918 January $0 2954 October $0 2858 10 3292 February.. November .2875 3327 March .3500 December 2864 3313 April .3460 Quarters: May... .3460 First 3231 June .3389 Second. .. 3423 July 3351 Third 2568 3363 August $0. 2363 . 3316 Fourth 2866 3323 September .2772 .3327 Year .2746 3339 DUCK, STANDARD UNITED STATES ARMY, FIRSTS, 28J-INCH, 8-OUNCE. [Base price, $0.1550 per yard.] 1917 1918 1917 1918 January $0. 2000 $0. 3425 October $0. 3000 SO 3350 February . 2000 .3425 November .3425 .3425 March . 2125 .3425 December .3425 .3425 April . 2500 .3425 Quarters: Mav .2500 .3425 ' First .2042 .3425 June . 2750 .3425 Second . . .2583 .3425 July . 3000 .3350 Third .. . 3000 3350 August . .3000 .3350 Fourth .. .3283 .3400 September . 3000 3350 Year .2727 .3400 1 In some cases it was impossible to get any bids at Board, Nov. 17, 1917. See minutes of War Industries GOVERNMENT CONTROL OVER PRICES. 297 Conditions became such, in fact, that the Xavy was compelled to call upon the War Industries Board for aid, and suggested that the matter of fixing a price for canvas be given consideration. 1 Accordingly, the canvas situation was taken in hand and sales of certain constructions were restricted to the Government. In taking oA 7 er the output of these cloths the price of one grade was reduced from 60J cents to 46J cents per yard, while the price of another which had remained unchanged during the summer and early autumn was increased from 30 cents to 34.25 cents per yard. But the Gov- ernment consumption of cottons kept growing by leaps and bounds and the tremendous demand was reflected in an inflated runaway market. By March, 1918, fabric values reached a point 146 per cent above the prewar level and 52 per cent above the current level of commodities in general. It was soon realized by Government officials and the trade that the situation would have to be remedied. K^tK^V^ The price-fixing committee cmd the cotton industry. On ffiay 26, 1918, seven days after the creation of the price-fixing committee, the cotton industry met, at their own request, with the price-fixing com- mittee "for the purpose of discussing the unsatisfactory condition of the cotton textile market." The problem from the first was exceedingly complex. Unlike the situation in the iron and steel industry, the price of the basic raw material had not been fixed. It was the contention of the textile industry that the price of raw cotton would have to be fixed, before an equitable basis for regu- lating cotton-product prices could be inaugurated. They claimed that the market price of raw cotton was the most important of all the factors which determined the price of their product, and that with an uncontrolled market for that commodity no equitable price for cotton textiles could be established for any extended period of time. All that was needed, in their opinion, was the fixing of raw- cotton prices and the fixing of a differential above such prices for ; the various types of products, as in the case of iron and steel. 2 The price-fixing committee, however, felt that raw-cotton prices could not be fixed. They believed, on the contrary, that the control of finished cloth would automatically be reflected in the price of raw j cotton. This question of raw cotton was ever present throughout j the meetings of the cotton industry with the price-fixing committee, even to the very last. In fact, it was largely because of this very difficulty that the fixing of cotton-fabric prices was delayed until more than three months after the first meeting in March. It should be added parenthetically that the problem of securing proper cost 1 Paymaster McGowan. in a letter to the War Industries Board in November, 1917, stated : " It will be possible to control the industry and make the best distribution of Government orders if the prices are authoritatively fixed." 2 Minutes of price fixing committee, May 26, 1918. 298 HISTORY OF PRICES DURING THE WAR. da.ta which could be used in determining a price also caused some difficulty, since neither the price- fixing committee nor the industry had information sufficient for reaching reliable conclusions. Dur- ing meetings held in April and May the same difficulties were dis- cussed * with no apparent result, while conditions grew rapidly more acute. 2 The -fixing of cotton textile prices. Finally, on June 21, 1918, an agreement, based on the joint findings, was made between the com- mittees representing the War Industries Board and the trade, whereby base prices were fixed on four different classes of cotton goods, effective for deliveries after July 1. These prices were to serve as a general basis for the fixing of all staple-cloth prices, and a complete schedule for all fabrics, based on a margin of profits similar to that allowed on the four fabrics used as samples, was to follow. A 30-cent price basis for raw cotton was used in determin- ing these prices, and Army duck, sheeting, drills, and print cloths were used as standards. Prices agreed upon were to be net to all customers, both civilian and Government. It was realized that the prices fixed would yield a liberal profit for the better equipped and organized mills, but, after all, the pur- i poses of the price fixing committee were attained. The cost of cotton 1 The basis to be used in the determination of return upon investment was a factor which made the settlement of cotton-goods prices no simple task. The attitude of the cotton industry in this connection is well presented ia the appended resolution passed by two of the leading cotton manufacturers' associations at a convention held May 3, 1918 : " Resolved further, That the prosperity of industrial America is essential to the financing of the war; and that any plan for price fixing or other control should rest upon the basis of such a return on capital invested as will continue to yield the neces- sary taxes and to provide funds for the purchase of the bonds required." 2 It appears that the question of price fixing having been raised, business in the various lines of textiles to a large extent halted, and inquiries of all sorts were made as to how both old and new contracts were to be executed. It finally became necessary, in fact, pending the actual fixing of prices, to make assurances to the trade as to the policies to be followed by the price fixing committee, and on June 9 the following was announced : " In order to establish a basis for a prospective price agreement * * * the fol- lowing tentative plan was outlined to be operative if the pending negotiations for a price agreement are concluded : "On all bona fide sales made on or before June 8, 1918, for delivery previous to Jan. 1. 1919, prices to remain as shown in sales. " On all sales made after June 8, 1918, for delivery subsequent to Sept. 30, 1918, the prices are to be subject to revision to "accord with the' prices agreed upon by the price fixing committee of the War Industries Board in conference with the war service com- mittee, etc. " On all sales made for delivery after Jan. 1, 1919, the prices agreed upon * * * are to be the prices regardless of the fact that the sales may have been made previous to June 8, 1918. " It is understood that all prices for so-called spring (1919) business will be subject to such revision. " The plan contemplates that manufacturers' prices on staples shall be on the same basis of cost and profit to the Government and to their usual civilian outlets. It is further expected that manufacturers will agree to devote a uniformly large proportion of their productive capacity to making staples." The last statement proved of considerable concern to many producers in later months, and many manufacturers refused at times new civilian orders, fearing a sudden govern- mental demand. (See Textile World Journal, Sept. 2, 1918, p. 105.) GOVERNMENT CONTROL OVER PRICES. 299 textiles to the Government, to be sure, was increased by a small per- centage, but, on the other hand, the cost to the civilian population was considerably lowered. 1 The question was raised, to be sure, as to the practicability of a price even lower than that fixed. Indications are, however, that the cotton trade objected to too drastic a cut in the price of their goods, not only because of their own interests but also because of the effect upon the distributors of their products. They felt that since cotton fabrics go through several hands before reaching the consumer, a severe cut in price would affect the inventory of the holders of such stocks. Moreover, they felt that a price which was set too low would cut the production of many of the fabrics which the Government needed. It should be borne in mind that the prices fixed on certain cloths were arrived at in a manner different from that which characterized the fixing of prices for other commodities up to that time. There was a decided absence of cost data. Several requests had been made for such data, but the representatives of the industry claimed that the time required for their collection and compilation would be too long to make them available for immediate use. Moreover, they believed it would delay the starting up of the industry which had already lagged because of the uncertainty over the prices to be fixed. There was wanted, in reality, an emergency price to be changed at a later date, and this the agreed price was. Indeed, the price- fixing committee felt it necessary publicly to state that its action in the instance of cotton products was " not in accordance with the usual procedure " and that it was not to be expected that its negotiations with the industry would be continued without change. The prices fixed were later to be revised for sales made during the period October 1 to December 31, or for such other period as might appear desirable at the time. 2 The working out of the differentials for the various kinds of fabrics was left in the hands of a committee made up of representa- *An idea of the effect of the Government fixed price is gained from a comparison of the old and new prices of the cloths upon which prices were fixed. The market price of print cloth was lowered from $1.03 to $1.05 per pound to $0.78 to $0.85 per pound. A statement in the Textile World on June 29, 1918, is to the effect that the price of " Fruit of the Loom," a popular construction of print cloths, was fixed at 18 cents per yard, while the lowest price quoted prior to price fixing had been 30 cents. Puck prices although placed a little above the level at which the Government formerly made its purchases were made 15 to 25 cents lower per pound than the prevailing civilian prices, while sheeting and drills also showed marked reductions. 2 The price-fixing committee had a small amount of cost data which it had secured independently. Their validity at many points was denied by the trade, however. These figures showed a prewar profit for the cotton industry of about 15 per cent as against a war profit of 25 to 30 per cent. Several representatives of the cotton industry justi- fied such profits on the basis of the tax situation. (See minutes of price-fixing com- mittee, June 21, 1918.) 300 HISTORY OF PRICES DURING THE WAR, lives of the trade, the Army and Navy, and the War Industries Board. It was the function of this committee to submit prices for a large number of representative fabrics based upon a return on the capital investment of the average cotton manufacturing plant equal to that allowed for the four types of cloth which had been selected as the basic staples. 1 The idea was to compile a list of fabric prices so thoroughly representative that it would be com- paratively simple for the industry itself to fix prices of cloths vary- ing slightly in construction in harmony with the published prices. Criticism of prices to be fixed in this way was, of course, bound to occur in many instances. A committee of textile experts was therefore appointed to act as arbiters in those cases where objection was raised against the prices at which the variants from standards were being sold, and the price agreed upon between this committee and the trade was to be made officially one of the fixed prices. The price-fixing committee, however, remained the court of last resort, and in this body lay the right to make a final decision whenever the trade and the committee of experts failed in reaching an agreement. The prices agreed upon affected only the sales by the various mills manufacturing cotton products. Xo attempt was made to fix the price of the middleman or retailer, since the price-fixing committee trusted that those members of the trade would see to it that their prices were regulated in accordance with the prices of the producers. 2 At later meetings with the price-fixing committee, the cotton manu- facturers protested as unfair the lax manner by which price fixing was extended over the various middlemen and distributors. They suggested the licensing of brokers and middlemen, but were told that the price-fixing committee had no authority for such action. The policy of the price-fixing committee appears to have been con- sistently to deal only with the manufacturers themselves. Even early in September, when the wholesale dry goods trade wanted to fix a maximum price for the distribution of cotton fabrics, they were told that the matter would be left to their own care. The Cotton Con- 1 The price-fixing committee from time to time approved prices on cotton products as determined by a committee of the trade and the textile experts. Announcements of agreed prices were made July 1, 25 ; Aug. 7, 9, 14, 16, 22, 30 ; Sept. 3, 5, 25 ; Oct. 17, 28 ; Nov. 4, 8, and 9, respectively. 2 It was felt that the request of the President that the distributors of cotton goods, namely, manufacturers of ready-to-wear clothes, as well as all dealers in cotton fabrics, regulate their profits so as to give the consumer the full benefit of the reduction in price (see price-fixing committee's announcement to the press, July 8) would result in a lowered price all along the line to the ultimate consumer. Whether such was really the case appears doubtful. To wit, the following extract from an editorial in the Textile World Journal of June 29, 1918 : " Price fixing on cotton goods for the benefit of the trade and the protection of the ultimate consumer goes a long way, but unless the retailer, too, is curbed, it will still fall short. In a Fifth Avenue store $1.15 was charged for a gingham that was sold elsewhere on the avenue for $0.50. Shortly after this comparison was made the first store marked its goods as a bargain at $0.75, reduced from $1.15." GOVERNMENT CONTROL OVER PRICES. 301 verters 1 Association, indeed, limited the profit to be realized from converting those fabrics on which prices had been fixed by the Gov- ernment, but this action was quite of their own volition and without reference to any activities of the price-fixing committee. Cotton yam prices. Among the many cotton products, the price of which was to be fixed by the above-mentioned committee of the trade and the War Industries Board, appointed for the determining of equitable prices, was cotton yarn. On August 14, a set of differ- entials based on the prices fixed on June 21 was announced to the trade. The prices determined were based upon the length of the cotton staple used in specific yarns, thereby making the price depend entirely on the character of the cotton employed. Such a policy appears to have been contrary to the general practices of the trade, since cotton yarns are usually sold indirectly through commission houses. Sellers usually have little intimate knowledge either of the grade or the length of the cotton employed in spinning. It is with the spinners that this information generally lies. Moreover, the cotton spinners, whose profits are the first to be affected by a change in raw cotton prices, were experiencing the results of a rising raw- cotton price. The situation appears to have caused considerable con- sternation in the spinning branch of the cotton industry, and for many weeks the business is said to have been completely halted. 1 The proposed price revision. As October 1 approached, the question of revising cotton-goods prices arose, and the cotton trade began meeting once more with the price-fixing committee. But again the identical problems of the preceding June presented themselves. Thus, in early September little was accomplished toward price re- vision, because the same lack of cost information held up negotia- tions. Indeed, " the failure of a large number of cotton mills to submit their cost sheets" resulted in the postponing of any revision until November 16. 2 The question of fixing raw-cotton prices arose, as in former days, of course, and played its part in occasioning the delay of a revision. Talk of governmental price fixing was rife at the time, and a committee had already been appointed to look into !The Textile World, in an editorial, of Aug. 17, 1918, summed up the situation as follows : " The more the program of price fixing is developed in the textile trade the greater seem to be the confusion and uncertainty that arise. The latest instance of this character is the announcement from Washington concerning regulated prices on cotton yarns * * *. The yarn-selling market is in a state of chaos and unable to deter- mine how to proceed." Later, on Sept. 7, this same paper stated that " The cotton-yarn trade is still worrying along in a period of adjustment to the new conditions laid down by the price regulations. * * * " Relative to the price of raw cotton, it said : " The recent sharp advances in cotton prices have again emphasized the fallacy of the effort to fix yarn prices as long as the raw material remains unchecked." 2 See public announcement of price-fixing committee, Sept. 26, 1918. 302 HISTORY OF PRICES DURING THE WAR. the matter ; and it was thought advisable to await the results of their investigation before making a final decision regarding cotton-goods prices. The Federal Trade Commission at last succeeded in getting a suffi- cient number of firms to submit data on production costs to warrant further action by the price-fixing committee, and on November 8, accordingly, the representatives of the trade were called in for further consultation. The cost records evidently convinced the price-fixing committee that the prices of cotton goods, even as fixed under the July arrangement, were too high, 1 and it was their opinion that a lower price, especially on denims and several other types of cloth, should be inaugurated for the period to follow November 16. 1 The price-fixing committee contended that in order to place other fabrics on a parity with cotton sheeting, which was used as the basis for price determination, prices should be fixed so as to allow a 25 per cent return on plant investment. This profit was being exceeded in their opinion, and as proof of this fact they submitted the following figures (minutes of price-fixing committee, Nov. 8, 1918) : THREE-YARD SHEETING COSTS. Investment cost : Fixed cost per spindle $37 Working capital required e 13 Total investment 50 Per pound Conversion cost : of sheeting. Raw cotton used in sheeting - $0. 38 Cost of spinning and weaving . 095 Twenty per cent additional labor cost allowed . 020 Selling cost .025 Total conversion cost . 52 Price fixed f. o. b. mill, $0.60 per pound, leaving a profit of $0.08 per pound. The average spindle consumes 150 pounds of cotton per year, and, on a basis of $0.08 profit per pound, there results a yearly profit of $12 or 25 pea* cent on the capital investment per spindle. DKXIM COSTS. Investment cost : Fixed cost per spindle $55 Working capital required 20 Total investment 75 Per pound Conversion cost : of denim. Raw cotton (allowing for 10 per cent shrinkage" at $0.32 per pound $0. 36 Cost of spinning and weaving . 17 Twenty per cent additional labor cost allowed . 035 Selling cost . 025 Total conversion cost . 59 To place denim on a parity with 3-yard sheeting, i. e., the realization of a 25 per cent return on investment, with an estimated consumption of 250 pounds of cotton per spindle per year, $0.08 per pound should be added to the ascertained cost of production. This would net a return of $20 per spindle per year, or a return of approximately 26 per cent on a spindle investment of $75, and would make the selling price of denim $0.67 per pound. The then existing price, however, was $0.80. The validity of these data was denied by several members of the trade, principally because of the omission of any allowance for investment in buildings, and the divergency in costs in southern mills as compared with northern mills. GOVERNMENT CONTROL OVER PRICES. 303 The price of raw cotton, incidentally, had not yet been fixed, and ostensibly fearing a rise in price, the cotton trade objected to any decrease in the prevailing schedule of prices. In fact, they went to the extent of suggesting that the prices then in force be continued until January 1. And, in spite of opinion to the contrary, especially on the part of several members, this suggestion of the cotton trade was put into practical operation. The prices in force on November 8 were continued until January 1, 1919, but not without considerable reservation. Indeed, for the first time the price-fixing ^committee emphasized in a public statement that the prices in force were maxima and that both the Government and the public were allowed to pur- chase as much below these prices as possible. Further, the price- fixing committee went so far as to disclaim responsibility for their fairness. Then came the armistice with its wake of cancellations and the general disorganization of the cotton industry and the question as to the advisability of discontinuing price control. The cessation of control appears to have been advocated by many, both within and without governmental circles, but the preponderance of opinion lay in the direction of its continuance. There was, for example, the question of the behavior of the market with the opening of the international trade routes, especially in view of the foreign demand for raw cotton, the export of which had been held in check for almost a year. Moreover, the possibility of complications over contracts made under the maximum price agreement was another deterrent, and the fixed price agreement continued until January 1, when it automatically ceased by limitation. Summary. The extraordinary inflation resulting because of the taking from the market by the War Department, and the Navy, of the major portion of available cotton textiles, threw the 'cotton indus- try virtually into disorganization by the spring and early summer of 1918. The market had become dangerously inflated, to the extent, indeed that the Government was compelled to commandeer prac- tically all its textile supplies in order that it might secure them at fair prices. The consequent result, of course, was the unwillingness of the industry to sell to the Government, and in early summer price fixing was inaugurated. The absence of cost data, and the question of raw-cotton prices, were considerable factors which made difficult an equitable method of price fixing, and even at the very end of the period of price agree- ments, there remained obstacles of considerable moment. Whether the results attained were as beneficial as they might have been under a system of strict limitation of profits to the prewar level, it is not with the scope of this study to determine. The 304 HISTORY OF PRICES DURING THE WAR, prices of cotton manufactures, in spite of price fixing, remained at points varying from 64 to 87 per cent above the level of com- modities in general during the latter half of 1918, while raw cotton, which was uncontrolled, advanced at no time during this period more than 61 per cent above the general price level. That the price situation was considerably alleviated by the fixing of cotton prod- ucts prices, however, can not be denied, and not only did the price of several individual types of fabrics decrease, but, as evi- denced by the accompanying chart, the price level for the entire group of cotton manu- factures fell appreciably. COTTON LINTERS. Even in November, 1916, five months before the United States declared war, the price of cot- ton linters had reached insecure heights. The allied demands for explosives were fast taking the available supply and the year 1916 closed with the price of munition linters at 7.75 cents per pound, or 278 per cent above its prewar level of 2.5 cents. 1 With the American entrance into the war, the acuteness of the situation was considerably emphasized. The requirements for muni- tions purposes increased the de- mand for linters to a very con- siderable degree, and ways were sought for increasing production to an extent commensurate with this demand. One means of enlarg- ing the output was the closer cutting at the oil mills, thereby taking n larger proportion of the linters from the seed. This, of course, lessened the quality of the linters, but the low grades were found just as satisfactory for munition making as the higher. The oil mills then, in 1915, began to cut the cotton seed much closer than had been customary, and increased the output of linters 1 See " Prices of Cotton and Cotton Products," by James H. Rogers (War Industries Board Price Bulletin No. 23), for a complete series of cotton linter prices from January, 1913, to December, 1918. SHORT 5TAPLL COTTON ...... UPLAND MIDDLING- RY. 3HQRT STAPLE COTTON AVERAGE: or Weighted index number of wholesale prices. Short staple cotton, upland middling, New York ; Short staple cotton yarns, average of five series ; Short staple cotton manufactures (except yarns), average of 19 series. By months, Janu- ary, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) GOVERNMENT CONTROL OVER PRICES. 305 per ton of cotton for the year 1915-16 approximately 50 per cent above that of the preceding year. 1 The increased output per ton of cotton was reflected in the available supply of cotton linters and the crop year 1916-17 witnessed a production of 1.331,000 bales, which meant a 100 per cent growth in output when compared with the year immediately preceding the outbreak of the World War. 2 Even this extraordinary increase in the available supply, how- ever, neither stabilized the price level of cotton linters nor met the ever-growing needs for munitions purposes. Thus, in the crop year 1915-16, despite the fact that the quality of our 1 inter output had been reduced by increasing the quantity cut from the seed to 106 pounds per ton of cotton, as contrasted with 71 pounds in the pre- ceding year, the average price rose to 5.9 cents per pound as against 1.9 cents per pounds for the crop year 1914-15. In 1916-17, with a li nter cut increased to 149 pounds, the average price increased to 6.8 cents. 3 lr rhe effect of close cutting upon the output of linters per ton of cotton is made more evident from the following table taken from bulletin on " Cotton a'nd Cotton Products." Year. Average pounds of linters cut per ton . 1912-13 64 1913-14 68 1914-15 71 1915-16 106 1910-17 149 1917-18 133 2 In the appended table are given the figures for the production of cotton linters from 1912 to 1918 as com- piled by the United States Bureau of Census. The effect of close cutting, especially upon the supply of cotton linters available for munitions, is most significant. Production of cotton linters in the United States. Crop years. Bales of 500 pounds. 1912-13 610 000 1913-14 639,000 1914-15 857,000 1915-16 931 000 1916-17 1,331,000 1917-18 1 126,000 'The price of linters from 1912 to 1917 as presented in Bulletin 30. follows: Crop years. Weighted average price per pound. 1912-13 -- - Cents. 2.6 1913-14 2.3 1914-15 1.5 1915-16 5.9 1916-17 6.8 125547 20 20 306 HISTORY OF PRICES DURING THE WAR. The entrance of die United States into the war witnessed a short- age of cotton linters, in spite of the doubling of our production in five years. Indeed, the first duty which faced the cotton and cotton linters section of the War Industries Board which was organized on April 4, 1918, was the investigation of the cotton-linter situation and the determination of the seriousness of the cotton-linter shortage. Accordingly, the entire field of cotton linter production was sur- veyed, and the prospects of an acute shortage of supplies made clear. The investigation indicated that the average annual production of linters in the five years preceding 1918 was less than one-half of the prospective requirements for 1919. 1 While there was no shortage of linters at the moment, the approach of a shortage seemed inevit- able since the Government was at the point of completing a num- ber of new powder plants which would soon double the linter re- quirements. Moreover, it was found that there were being produced some 10 to 12 grades of linters, and that a large part of our output was going into the manufacture of mattresses, felts, etc. Government control of the linter crop. The immediate need, then, was the stimulation of linter output, and with this in view, cotton- seed crushers were required to increase the cut of linters. After May 2, 1918, at the order of the War Industries Board the oil mills were required to " cut clean mill run linters known as munition type " exclusively. Moreover, crushers were compelled to cut a minimum of 145 pounds of linters per ton of seed crushed. And for the period May 2, 1918, to July 31, 1919, these linters were to be sold to no one other than the United States Government, which agreed to take over the supply produced from the 1918-19 crop at a price of $4.67 per hundredweight f . o. b. points of production. 2 This, of course, meant that the many industries which normally used cotton linters would be deprived of their supply. But it appears that they underwent no hardship, for the War Industries Board had thoroughly surveyed the situation and had found ^that there was available a sufficiently large supply of cotton mill waste, hull fiber, and wood pulp which could well be used as a substitute for cotton linters in the normal linter-consuming plant. The cotton linter pool. When the supply of cotton linters had been brought under control and the price stabilized, there still re- 1 Final report of cotton and cotton linters section, War Industries Board, 1918. 2 This price, 0.058 cents lower than the price of August, 1917, the last month far which authoritative price quotations can be secured, was ratified by the price fixing committee and made effective May 2, 1918. Several months -later, on July 8, 1918, the price fixing committee set a maximum price of $6.33 per hundredweight for the bleaching of linters. This price, however, in view of the large bleaching capacity of the country and the ever-present competition, appears never to have been effective. Indeed, it is believed that contract prices were appreciably lower than the maximum allowed. The fixed price expired by limitation on Oct. 31, 1918. GOVERNMENT CONTROL OVER PRICES. 307 mained the problem of its distribution. There was not only the need of linters for our own consumption, but also the constant demands of the allied governments which were largely dependent upon us. An organization made up of representatives of the Allied Governments to supervise distribution was therefore created, and " The Cotton Linter Pool " came into being. 1 This body, the guiding spirit of which was the Ordnance Depart- ment of the United States Army, provided for the securing of linters at uniform prices for the various members and had as its purchasing agent the Du Pont American Industries (Inc.), to whom was allowed 26 cents for each bale of linters purchased for the " Pool." 2 It appears that ample supplies of linters were obtained during the summer and autumn of 1918. With the signing of the armistice, however, the Government needs automatically ceased. But there still remained the obligation of continuing the purchase of linters. The fulfill- ment of this responsibility was placed in the hands of the Ordnance Department. Restrictions as to the cutting of linters were no longer necessary, and crushers were not required to cut the minimum of 145 pounds of linters per ton of seed as had been decreed on May 2. Crushers im- mediately began, therefore, to resume cutting the longer linters which could be used in the manufacture of mattresses and like com- modities, and for which they could secure a higher return. Among the tasks facing the Ordnance Department was the dispo- sition of linters on hand which had cost approximately $20,000,000, and attempts to dispose of this surplus resulted in the War Depart- ment receiving bids for small quantities for which a price averag- ing less than 2 cents per pound was offered. Finally, on May 24, 1919, the War Department announced the sale of 700,000 bales of cotton linters for approximately $15,000,000, one of the largest single transactions in cotton fiber ever consummated in the history of the cotton industry. iAmong the participants in this pool were the United States Government, represented by the Ordnance Department of the Army, the Canadian, French, British, Italian, and Belgian Governments, manufacturers of explosives having United States or Allied Government contracts for powder or guncotton, and " manufacturers of absorbent cotton or other sup- plies, using cotton linters, having United States or Allied Government or Red Cross contracts." 2 The final report of the cotton, and cotton linters section of the War Industries Board enumerates in part the functions of the linter pool and the system of division of powers, as follows : The United States Ordnance Department had jurisdiction over (1) the production and stimulation of linter production; (2) requisitioning or commandeering stocks; (3) all financing, either as to production or purchases ; and (4) disputes arising between pur- chasing agency and producers. The cotton and cotton linters section of the War Industries Board had jurisdiction ovet (1) allocations of supply; (2) storaging and warehousing; (3) rules pertaining to linter manufacture; and (4) reports and records of stocks, production, requirements, etc. The expenses of the pool were prorated among the members. 308 HISTORY OF PRICES DURING THE WAR. The mattress linter pool. Although virtually the entire supply of linters went into the manufacture of explosives, there apparently remained an appreciable governmental and Red Cross demand for linters for mattresses for hospital uses. The production of linters for such purposes had been prohibited on May 2, 1918, but there still remained a supply of mattress linters which had been produced prior to that date. In order to meet the war demands for these linters, therefore, the " Mattress Linter Pool " was formed and as in the case of munition linters, the Du Pont American Industries (Inc.), was appointed purchasing agent "with instructions to buy all mattress linters available from production prior to May 2, 1918." * Pains were taken to insure the obtaining of the greatest supply pos- sible, and regulations were drawn up which prohibited " the use or sale of mattress linters by or to any individual, firm, or organization, other than the Mattress Linter Pool." This, of course, made such supplies as were existent of little or no immediate value to the holders thereof and naturally the result was a desire to sell to the only permissible customer. Provisions, however, were necessary as to the price of linters under this arrangement. Accordingly, a basic price on three sample types of linters was determined by agreement and the Du Pont Co. was instructed to buy at the figure fixed for all supplies voluntarily offered. 2 It is estimated that about 75 per cent of the mattress linters in existence were purchased by the Mattress Pool. 3 On the day following: the signing of the armistice all restrictions, relative to the use of mattress linters were removed. It was neces- sary, however, to give the industry an opportunity to get its breath after so sudden a change, and provision was made to continue the buying of mattress linters until November 23, from anybody who wished to sell. 4 An arrangement was also made whereby those mattress manufacturers who had voluntarily sold their linters at the agreed prices might buy back at the same figure the supplies turned over to the Government. 1 Report of cotton and cotton linters section, ibid. 2 Three grades of linters, designated as " A," " B," and " C," were used as samples and a figure of 10 cents, 7 cents, and 5.5 cents f. o. b. points of location, respectively, was agreed upon as the price to be paid. All linters below grade " C " were to be considered munition linters and were to sell at $4.67 per hundredweight (see p. 703). 3 Report of cotton and cotton linters section, ibid. There were many holders of mattress linters who were unwilling to sell their supplies at the agreed prices, and in such cases the Ordnance Department was to exercise its com- mandeering powers. This method of securing supplies gave the owner opportunity to establish the actual value of the commodity. * Later the Ordnance Department, in order to protect the producers of mattress linters, agreed to take over any surplus of mattress linters up to 150,000 bales which might be on hand on July 1, 1919, at a price of 8 cents, 7.5 cents, and 5 cents for the three grades " A," " B," and " C," respectively, GOVERNMENT CONTROL OVER PRICES. 309 A glance at the accompanying chart will give an idea of the sta- bilizing effects of governmental action upon the price of cotton lin- ters. Its price level appears to be subject to violent fluctuations even in peace times and at no time during the entire six-year period, 1913 to 1918. did munition linter prices remain unchanged for more than a few r months at a time. Moreover, so far as available statistics show, dur- ing no month from September, 1915, to May, 1918 the month of governmental price fixing was the price of linters as low as that fixed by the War Indus- tries Board. WOOL. The large consumption of wool in the United States has made it necessary for the American woolen industry to be at all times dependent in large part upon foreign im- ports. Indeed, the propor- tion of domestic wool which in the prewar years went into the manufacture of woolens and worsteds never amounted to more than two-thirds of our total consumption, while in many instances it comprised slightly more than one-half. With the stimulation of the industry in 1915, brought about by the allied demand for woolen products, the propor- tion of our total consumption supplied by domestic raw wools fell off until, before the year ended, our imports played a more important part in our woolen industry than did the home clip. The foreign wools used in the United States in 1916 amounted to 534,828.022 pounds as against 288.490,000 pounds of domestic wools a ratio of 2 to 1. RELATIVE PRICES OF COTTON LINTCR2 KADC n,CUTUO-174LBJPER' Relative prices. Cotton linters, grade D, cut 130 175 pounds per ton. By months, January, 1913, to December, 1918. (Aver- age quoted prices, July, 1913, to June, 1914=100.) 310 HISTORY OF PRICES DURING THE WAR. The acute shipping situation of 1917 and the shutting off of sup- plies from Australia, 1 which had been our most important source of raw wool in the two preceding years, cut the imports for 1917 down to a little more than 372,000,000 pounds. The consumption for the year likewise fell, and the industry in 1917 used 164,000,000 pounds less wool than in 1916. But the large requirements of the Army soon increased the demand again, and the first half of 1918 witnessed a consumption equal to two-thirds of that of the previous year, and almost as large as the total for the year preceding the outbreak of the European War. Although the imports were fairly large during the first six months of 1918, they were not commensurate with the demands. The result, then, was a decrease in stocks which on June 30, 1918, amounted to 494,000,000 pounds of wool, or 91,000,000 pounds less than at the same date in 1917. It is apparent that under such conditions the prices of wool could not remain immune from manipulation. Indeed, shortly after the declaration of war they began to rise so that by the end of 1914 they were 20 per cent above their prewar level. Then came the demands of the various allied powers for woolen goods, especially for military purposes, and 1915 and 1916 witnessed an extraordinary rise. At the end of the latter year raw wool sold for just twice its 1913-14 price. 2 Then came the cutting off of the Australian supply, 3 and the Ameri- can entrance into the war. The American declaration of war had a stimulating effect upon the woolen trade. Before the year 1917 was half over prices rose to a point 225 per cent above the peace-time average. Dealers bought far into the future and speculation was rampant. The approach to regulation. Many members of the woolen in- dustry, however, foresaw the disorganization which followed the 1 During 1915 and 1916 Australia furnished approximately 25 per cent of the wool im- ported into the United States. In November, 1916, the British Government purchased the Australian production of wool for the period of the war and one year thereafter. This, of course, had an important effect upon the receipts during 1917 and imports from Australia for that year fell to 7,000,000 pounds, as against 115,000,000 pounds in the preceding year. Arrangements which were later made with the British Government increased the 1918 re- ceipts from Australia a considerable degree. 2 Ohio three-eighths blood, unwashed wool, sold in December, 1916, for 49 cents a pound, as compared with 38J cents at the beginning of the year. The average price for the 12 months preceding the outbreak of the war had been $0.2369. Similarly, territory combing, one-half blood, sold at the end of 1916 for $1.003 per pound, as against 73.8 cents in January and $0.5228 in the prewar year. Imported wools, also, felt the effects of the war needs for cloth, although the rise in their price was not quite equal to that of the domes- tic product. 3 The cutting off of the Australian supply, which had been mentioned above, may be said to have had a greater effect upon the price of raw wool than any other single factor other than the military needs of our Army. Not only did the British purchase of the Australian clip actually cut down our potential supply, but these wools were especially desirable for American manufacture because of their fine quality. Wools of similar quality could not be duplicated in any other foreign market, and the psychological effect of this loss upon the trade was of great consequence. During the four months following the taking over of the Australian supply by Great Britain, domestic wool prices rose 40 per cent, as compared to the prewar basis. GOVERNMENT CONTROL OVER PRICES. 311 American entrance into the war. Indeed, on April 10, 1917, four days after the declaration of war, the textile alliance notified the general munitions board that there would not be enough cloth in the country to meet both the requirements of the Army and Navy and civilian needs. 1 It is probable, however, that the general munitions board did not realize the significance of the warning, and the matter was turned over to its com- mittee on supplies " with the understanding that if necessary the board would suggest to the Council of National Defense that it arrange with the British Government to remove the em- bargo " then existing on wool. There followed an offer on the part of the various brokers in the important markets to turn over to the Government such stocks of wool as they had on hand at a price equal to that in effect on April 2. 2 Although several members of the board urged acceptance of the offer, ignorance of the military re- quirements and the fear that governmental action would fur- ther disturb- an already unstable market led to its rejection. 6 Moreover, it was felt that the acceptance of the offer ajid the resultant low price to the military authori- ties would result in raising the price of other wools to manufacturers. The War Department apparently was not fearful, and believed that its requirements could be met, 4 1 Minutes of the general munitions board, Apr. 10, 1917. 2 Mr. J. Rosenwald, who headed the committee in charge of wool supplies, when asked to report the result of his conference with the wool dealers, informed the general muni- tions board that " The brokers in Boston, Philadelphia, and Chicago had agreed to hold such wool as they (then) had on hand for the uso of the Government, and that a price equal to that in effect on April 2 for raw wool had been decided upon." (Cf. Minutes of general munitions board, Apr. 11, 1917.) 8 Minutes, loc. cit. 4 The following extract from the minutes of the meeting of the general munitions board on April 13, 1917, sums up the point of view of the military authorities on the question of wool : " Col. Hodgson reported that * * * had advised him that orders had been placed for articles requiring wool, so that there was no necessity for holding the wool recently offered by woolen brokers. Col. Hodgson further stated that the feeling at the Quarter- master's Department seemed to be that there was no apprehension as to wool at this time." RELATIVE PRICES Or R/WWOOL DOMESTIC 1017 ioia 1 i fi 1 I S S AA 1 I IMPORTED GOOD VICTORIA BRITISH MORKET i BY MONT US OANUARY-.tSi; DECEMBERS AVCPACE CUOTED PP1CE5 JUCV,100*H. 6 r /- 1915 1914 1O15 1916 I i s FTTH fjrjs I i l a i/ 1 so 60 i rj A A- ZL Y J v\ 3 'A/ /^ r ao 60 60 s 1 3 E ^ B if OL gcti ttfi I i 9 fi 191 t014 1013 tote 1017 i ioa Relative prices. Raw wool, domestic, im- ported ; and Good Victoria British mar- ket. By months, January, 1913, to De- cember, 1918. (Average quoted prices July 1913, to June, 1914=100.) 312 HISTORY OF PRICES DURING THE WAR. It had apparently also been the belief of the Quartermaster De- partment that it could obtain a better price at a later date, but in- stead the wool market continued upward. Finally, in July it be- came evident to those in charge of supplies that it would be advis- able for the Government to accumulate a stock of raw wool, and a committee was appointed under the committee on supplies of the Council of National Defense to buy wool for the Quartermaster Corps. When this committee came on the market it found condi- tions quite the reverse from what had been expected. Wool prices had gone up in spite of the Government's refusal to accept the offer made by the trade in the preceding April, and the prices of July 30, relative to the prewar basis, were over 100 per cent higher than those of April 2. 1 The abnormal speculation in woolens virtually came to an end in the summer of 1917, and relatively little happened to the price of raw wool during the succeeding fall and winter. By October, how- ever, the Quartermaster General, as well as the committee on wool supply, began to doubt the sufficiency of the existing wool supply and the advisability of letting the wool market follow its own un- regulated course. Indeed, in late October, the chairman of the com- mittee on wool supply advised the War Industries Board that some sort of governmental action ought to be taken in order to control the situation. 2 This was followed, also, by a letter from the Quar- termaster General in which the possibility of the Government's pur- chasing the entire wool clip of the country was suggested. 3 It was the opinion of the board, however, that such action was inadvis- able and so the Quartermaster General was informed. 4 Here, once more, the fact that the authorities concerned with wool did not know the full Army needs was a controlling factor. In their judgment, supplies were adequate, and to substantiate their belief they made the statement that the bulk of the manufacturers had covered their wool requirements for all Government contracts calling for deliveries up to June, 1918. After that date, in their judgment, 1 This situation evidently was disappointing to the purchasing authorities and they bought only a relatively small amount of wool. It was not known hy the Government pur- chasers either what the size of our Army was to be or what its needs would amount to. Accordingly, they purchased but little in the domestic market and began negotiating with Great Britain for the purchase of Australian wools, which, if obtainable, would have been available at a price much lower than that of the American product. This was probably viewed as an initial step in breaking the domestic price, but since this wool, which was finally purchased in October, did not arrive before the spring of 1918, when the price of wool bad been already fixed by the price-fixing committee, the purchase was never effec- tive in lowering the American price level. 2 Minutes of War Industries Board, Oct. 11, 1917. 3 Minutes of War Industries Board, Nov. 15, 1917. 4 In late November a third suggestion relative to the control of wool was made, this time by the committee on price control of the Philadelphia Wool and Textile Associa- tion. This body advocated the fixing of a maximum price for raw wool, but their proposal, like the others, did not receive any Indorsement. GOVERNMENT CONTROL OVER PRICES. 313 the new domestic clip and imports from foreign countries would provide a sufficient supply. 1 The adoption of a regulative policy. By early 1918 the need for a more positive program became clear. The Army authorities, through the use of the War Trade Board import restrictions, had already se- cured an option on all foreign wools entering the United States. 2 A census of existing stocks, nevertheless, showed that something more than the control of the imported varieties would be necessary if the Army requirements of about 125,000,000 pounds of scoured wool were to be met. 3 Evidence of shortage had already been pre- sented in the fact that the Army was compelled to use shoddy. Accordingly, on April 5, 1918, the War Department requested the Boston Wool Trade to grant to the Government an option over the existing stocks of raw wool. The trade agreed, and promised also to buy no more new wool from the growers until otherwise notified by the authorities. The effect of this action was soon reflected in the attitude of the wool growers whose markets had been automatically cut off. It appears that they had not been in- formed of the instructions to the wool dealers regarding the cessa- tion of purchases and it was their impression that the dealers had stopped buying because 1 of the fear of governmental price fixing. 4 They at once made inquiries of the War Industries Board as to the policy to be pursued by that body, but evidently they received no definite assurance as to just what was to be done. The growers, ifc seems, feared that the price of their product would be fixed at a price 1 Just what the attitude of the War Industries Board toward the wool situation was, is well presented by the following extracts from a memorandum sent to the Quarter- master General on Nov. 15. Among other things, it said : " We do not feel the urgency at this time of taking on these duties (taking over of the wool clip) for the following reasons: (1) The purchasing of wool in the grease requires very expert knowledge. It would be necessary to engage a staff of these buyers before we could intelligently purchase such a large and varied assortment of wool as the United States grows. (2) The bulk of the manufacturers have covered their requirements on the Government contracts they have undertaken. (3) The latest figures, dated, Sept. 30, 1917, show unsold wool in Boston equal to 130,000,000 pounds. To this we can add the 70,000,000 pounds of Australian wool and about 10,000,000 pounds of East India wool released by the British Government to us for Government requirements. * * * We can figure on at least 200,000,000 pounds from South America in the next few months. The items will bring the total to over 400,000,000 pounds available. By May and June the new wool clip of the United States will be coming on the market. This represents another 270,000,000 or 280,000,000 pounds. " We may feel after the first of next year that it is necessary to take some action on the purchase of a part of the new clip, but for the present, owing to reasons advanced above, we feel that it is better to let the matter rest as it is." 2 On Dec. 15, 1917, the War Trade Board had ruled that after that date all imported wools would be subject to Government option at a price equal to 5 per cent less than the July 30, 1917, price in Boston. 3 A census of wool stocks made in early 1918 by the War Department disclosed a supply in the hands of dealers of less than 35,000,000 pounds, scoured basis. 4 A 'statement made by the representatives' of the National Wool Growers' Association at the first meeting of the price-fixing committee and the wool growers was to the effect that the dealers in the West would not buy wool because they feared that Ihe Government would fix the price of wool at a figure lower than the current market figure. 314 HISTORY OF PRICES DURING THE WAR. relatively lower than that then prevailing, and thought it desirablo that any such move be preceded by action on their part. They there- fore asked for an opportunity to appear before the price-fixing com- mittee, and April 19, 1918, they offered their entire clip to the Gov- ernment at the current market price. 1 In the event that the price- fixing committee was unwilling to buy the clip, it was the opinion of the wool growers that the entire situation should be left free to the unregulated forces of the market. Moreover, they believed that the governmental authorities ought to make a public statement to that effect. In other words, the wool growers wanted the price fixing committee publicly to commit itself to the policy of leaving the American wool clip untouched. But this the price-fixing committee refused to do, remarking in the course of its refusal that they had no authority to bind the Government to any policy. 2 Negotiations with the wool growers were about to end when the representative of the wool section of the War Industries Board made the statement that the military forces would require the whole do- mestic clip, and suggested that the Government buy it. 8 Immedi- ately the situation was changed, and from that moment it was quite evident that the United States Government was about to take over the 1918 clip. With the question of the disposal of the wool clip settled, it re- mained to fix a price at which the Government would take wool over. The growers insisted upon the current market price, which, as has already been said, was three times higher than the 1912-1914 level. The price-fixing committee refused this request, and reference was made to the British purchase price, which was but 75 per cent above the prewar average, to substantiate their refusal. 4 In their opinion the price of July 30, 1917, was a fair price for raw wool, especially in view of the fact that the Government had been purchasing imported wool at that figure during the preceding four months. They con- tended, furthermore, that the April, 1918, price was not a " fair 1 This offer was made, however, only with the provision that the Government buy the entire clip, which was estimated to be about 300,000,000 pounds. The market price incidentally was at the time about three times the prewar average. In the course of the discussion between the growers' representatives and the members of the price-fixing com- mittee it was brought out that the price asked for the clip varied from 45 to 80 cents a pound, depending on grades, whereas formerly similar wools sold from 5 to 20 cents. 2 See Minutes of price fixing committee, Apr. 19, 1918. 3 Mr. Elliot said : " Gentlemen, the Government needs will require all of the clip, so why should we not buy it? " 4 It is interesting to note, in this connection, the growers' contention that the then current high prices were necessary to keep production at the high level required by war needs. And this theory of stimulating production, according to several members, also guided the price-fixing committee in determining upon what price should be fixed for a given commodity (see p. 242). In the instance of wool, however, the price-fixing commit- tee seems to have laid aside this theory, as is shown by the following statement of the chairman : " The old theory that the high price stimulates production is an error. One side is when a man gets a certain amount, his steam power gets down a little lower. He doesn't work as many days. In other words, it isn't exact science that the higher price increases production." GOVERNMENT CONTROL OVER PRICES. 315 market price," since it was not established under normal conditions, whereas the July, 1917, figure was one which was arrived at in a market where Government demands played little or no part. 1 The wool growers, however, claimed that the offer of the Govern- ment did not allow for the high costs of producing wool and refused to accept the suggested price. The dealers from the various large wool markets had by this time also taken up their case with the price fixing committee, and they, too, objected to the July 30, 1917, price, since it allowed for no profit. But refusal to accept the proffered price was in vain, for both the growers and dealers were told that there were but two alternatives first, the July 30, 1917, price; or second, the commandeering of the entire wool supply and the determination of a price by Board of Appraisers of the War Department. 2 The former alternative was accepted and on April 23 the Government agreed to take over the raw wool then in the hands of dealers ati a net price equal to that of July 30, 1917 ; 3 while an agreement was made with the growers whereby the Government was given a prior right to acquire all of the 1918 wool clip or " any por- tion thereof that it might require." 4 The remainder was to be sub- ject to allocation for civilian purposes under the direction of the War Industries Board. To the War Department was assigned the task of handling the wool supply, although the machinery for purchasing and evaluating was formed by the price fixing committee, acting in conjunction with the growers and dealers. All parties desired that as little change as possible be made in the organization of the woolen industry. The final plans, therefore, provided for the use of the customary channels of distribution. The growers were to consign their wool to dealers 5 1 The legal department of the War Industries Board had interpreted " a market price as one established under certain normal conditions." A market with large Government demands was not, in their opinion, normal. 2 The plan presented to the wool dealers by the chairman of the price-fixing committee was rather comprehensive. It was his idea that (1) the Government should commandeer the clip and fix the price to be paid, (2) the wool dealers should continue operating as usual and receive a fair compensation for their services, (3) the wool dealers should sell to manufacturers only under instructions from the War Industries Board, (4) the manu- facturers should be licensed, and (5) if necessary, standard clothes should be manu- factured at a price which would be fixed down through the wholesaler and retailer. 3 For such wool as the dealers might have on hand at the time, which could be shown to have cost more than the July 30, 1917, price, the Government agreed to pay an amount equal to the original cost plus 5 per cent. 4 A series of prices as of July 30, 1917, was drawn up and used as a basis of payment for raw wool. These prices varied from $1.07 per pound, scoured basis, for common and braid, eastern and territory wools, to $1.85 for fine delaine (Ohio) wool. 5 Dealers were forbidden to buy wool directly. They could only accept consignments which after being graded were valued by the Government valuation committee. This com- mittee was made up of representatives of the growers, dealers, and manufacturers. Manufacturers were also forbidden to purchase wool except in the designated distributing centers, and then only with the permission and consent of the Government. Those mills working on Government orders, however, which were located in wool-growing sections not near the centers of distribution, were given permits through the Wool Division of the War Industries Board to buy certain amounts of wool in their immediate neighborhood. 316 HISTORY OF PRICES DURING THE WAR. at the July 30, 1917, price minus the cost of transportation to Boston and the compensation to the dealer, 1 and the dealer in turn was to forward such consignments to the United States Government. The profits allowed to dealers were definitely fixed, and varied from \\ cents for each pound of wool handled for country dealers to 5 per cent on the season's business for dealers in distributing centers. The effect of wool control. By the summer of 1918, the War Department controlled the entire supply of raw wool with the ex- ception of that which was in the hands of manufacturers prior to April 5. Soon afterwards approximately half of the active combs, cards, spindles, and wide looms of the country were engaged on Government work. This number increased month by month until November, while stocks of privately owned wool progressively di- minished. In October provision was made for taking over the 1919 clip. More and more persistent demands were made by manufac- turers that wool be allocated for private orders, but virtually all requests were refused and definite word was given out that no civilian allocations would be made before April 1, 1919. At the time of the armistice, the War Department had accumulated a supply of raw wool sufficient for six months at the war-time rate of con- sumption. 2 These large stocks, together with the uncertainty as to the future price level, were leading to a serious depression in the woolen indus- try, when at the end of the year the War Department determined to dispose of their stocks through a series of auctions. On January 15, 1919, it was announced that the minimum price acceptable at these sales would be on a parity with the British civil issue price. 3 But even this policy on the part of the War Department did not stimulate the woolen industry, and the first four months of 1919 Avitnessed widespread mill idleness. By April, the period of read- justment had been bridged over and buying at Government auction had been quite spirited. Indeed, by June 1, 1919, 270,000,000 pounds of wool had been disposed of by the War Department, and the prices paid for the better grades virtually equaled the war level. HIDES, SKINS, AND LEATHER. Unlike the prices of cottons, woolens, and other forms of clothing, the price of leather, and the raw materials from which leather is 1 The necessity of concentrating the wool supply near the centers of consumption led to the restricting of distribution to only approved dealers. Approved dealers were those authorized by the War Industries Board to handle wool. 2 On Nov. 23, 1918, the statistical branch, General Staff, War Department, reported stocks of 233,867,685 pounds of wool on hand. The total purchases to that date had been 421,373,609 pounds, thus making a total of 187,505,924 pounds which had been sold to manufacturers. There were yet to be delivered on prior purchases 222,000,000 pounds of wool, which made a total of 455,867,685 pounds to be disposed of. 3 For comparison with United States buying prices, see War Industries Board Price Bulletin No. 24, " Prices of Wool and Wool Products," by K. Snodgrass. GOVERNMENT CONTROL OVER PRICES. 317 made, when compared to the general price level, remained relatively stable during the period of the World War. Indeed, it was only in late 1916, under the influence of heavy allied buying, that any per- ceptible rise in leather prices over those of commodities in general occurred, and this rise was short lived. 1 During 1917 and 1918 the index number of leather, based upon the 1913-14 average, re- mained virtually unchanged and at no time did it approach within 15 per cent of the price level of " all commodities." The remarkable stabilization of leather prices that came in De- cember, 1916, in the United States, was the result, curiously, of British price fixing. British control, indeed, which came rela- tively early, appears to have had a greater influence upon the American leather market than our own price fixing of the sum- mer of 1918. Leather prices as a whole were at a relatively low level, when WDCHTCD nnex NCeEC3 or PBEZS cr -HIDES AND SKBBJJUWER AND iXATHCR MANUFACTURES -ALL COMMODITIES" BY MONTHS .JflNUAOY.tOU " DCCCMBCR,ei AVERAGE CWOTCD PRICES .Aia'.ISJl'VWICKM'lOO 1913 1914 1915 19*6 1917 lOlfl EDO fZOD jpEE ED onr ro 2/0 -./ Aw ^ u> ^ 140 . f A ^_/ -^ P 100 eo 60 eo * a fc t k k 3 tt \ k & i k 5 i 3 5. 1913 ..?* 1913 , KM 1917 1M6 Weighted index numbers of prices. Hides and skins, leather and leather manufactures, and "All commodities."- By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) the price-fixing committee under- took to fix prices in April, 1918. In the previous month, a price agreement had been made by the War Industries Board with the distributors of sheepskins rela- tive to the price to be paid by the United States Army for jerkin leather, 2 but this was nothing more than a long-time contract applicable only to Army orders. It was fear of the effect of several expected events in the leather market apon prices, rather than current high prices, which led to the fixing of hide and skin prices in the spring of 1918. There were four factors in particular that seemed to threaten instability in the leather market. First, the needs of our growing Army had prompted the Quartermaster Corps to contemplate plac- ing enormous orders. 3 This, it was expected, would lead to compe- 1 The rise experienced in late 1916, appears to have been halted abruptly at the time that the British orders controlling the importation, and fixing of prices for raw hides and skins, went into effect. 2 See p. 729. & In April, 1918, the United States Army placed contracts with American, manufacturers for 5,604,008 pairs of shoes, valued at $40,446,531. 318 HISTORY OF PRICES DURING THE WAR. tition for hides and skins in the open market and force prices out of control. Secondly, these large Army orders had to be extended over a series of months and their size necessitated deliveries over rela- tively long periods. The tanners, then, would need to make pur- chases of hides extending over long periods. The fixing of the price of hides and skins, in the opinion of the Army purchasing authori- ties, would lead to greater regularity in the supplying of require- ments by eliminating the tanner's risks. Moreover, this stabilization of the price of raw materials, it was hoped, would lead to a more steady market price for finished leather products. Thirdly, the Brit- ish Government was at this time about to enter the American market for a considerable quantity of leather. The British purchasing com- mission had already informed the War Industries Board that it was about to purchase $35,000,000 in value of leather, and it was evident to the authorities that any bid of this size would play havoc with the prices of hides and skins. Finally, there was the shipping situ- ation. The United States has at all times been a large importer of foreign hides and skins. Our receipts for the fiscal years ending June 30, 1917, and 1918 amounted to about 700,000,000 and 432,000,- 000 pounds, respectively. The shortage of shipping, however, ne- cessitated the cutting off, as far as possible, of dispensable imports and the United States Shipping Board was about to recommend a three-month embargo on the importation of all hides, skins, leather, and manufactures, excepting such cattle hides as were fit for Army use. 1 This action, it was believed, would bring chaos to the leather market, and result in erratic rises unless some steps were taken immediately. Cattle hides. The price fixing committee, with these points in mind, met on April 26, 1918, with representatives of producers, im- porters, and distributors of hides and skins to fix prices for their products. A schedule was presented by a committee representing the industry, in which the price fixing committee was asked to fix a maximum price for hides and skins equal to the average market level for the period April 1 to 24. This average was approximately 10 per cent higher than the current market quotation, and the price fixing committee objected on the ground that its acceptance would I The final report of the. hide, leather, and leather goods division of the War Industries Board (December, 1918) states: " In cooperation with the Shipping Board for the releasing of tonnage, and with the Food Administration, restrictions on imports were agreed to which deprived the industry of about 10,000,000 hides and kips and about 90,000,000 goat and sheep skins, the tonnage allowed for leather raw stock being confined entirely to requirements for war necessities. II The final restrictions which practically limited importations of raw stocks to certain heavy hides from South America, to hides coming by rail, and to hides coming as back haul from Europe, went into effect June 15." GOVERNMENT CONTROL OVER PRICES. 319 mean raising the existing price, and this they said was contrary to their policy. The live stock producers also took issue with these suggested prices ; not, however, on the ground of its fairness. It was their contention that price fixing in any form, was unnecessary and that in their opinion no emergency existed which warranted any Governmental interference. 1 The price-fixing committee overruled the objections of the live- stock producers and on April 30, 1918, fixed maximum prices for all the stocks of domestic hides and skins in hand at that date; for the domestic take-off for the months of May, June, and July; and for all imported hides and skins shipped from ports of origin to and including July 31, 1918. 2 The practicability of these fixed prices was doubted by members of the leather industry when the time for revisions approached. On July 19, 1918, 12 days prior to the expiration of these prices^ the industry was called together in order that action might be taken relative to their continuation or revision. Complaints were made by some against the agreed prices, and indeed, it was contended that the price-fixing committee had put an artificial price upon hides and skins. It appears that the better grades of hides were being taken by the Government at the maximum price, thereby keeping their value up to the figure agreed upon in April, while the cheaper grades, for which there was little demand, never reached the fixed maximum. The price-fixing committee recognized the logic of this contention and suggested that the price for the following three months be low- ered. But at this point the packers and the live-stock producers objected on the ground that the changing of hide prices at that par- ticular time would inject an element of doubt into the cattle market and check the stocking up with feeder stock then in progress. The price-fixing committee, however, held to its belief, and after the appointment of a body made up of members of the trade and the price-fixing committee to draw up a price schedule, fixed a 1 See minutes of the price fixing committee, June 26, 1918. 2 Two sets of prices were actually fixed one to apply to stocks and take-off up to and including Apr. 30, 1918, and the other for the May, June, and July take-off. Hides from heavy native steers, No. 1, were used as the base price in both cases and differentials applied for other types. A prjice of 29 cents per pound was adopted for the stocks and take-off to Apr. 30, while 33 cents was the price fixed for the May, June, and July product. These prices were about 10 per cent higher than the prevailing market prices. As above stated, the price-fixing committee at first objected to this increase of current prices ; and in approving of the prices fixed the committee explained its action by stating that the reason for their adoption was the desire to keep the good will of the industry. The hide and skin interests had also suggested a 10 per cent increase on im- ported hides, but this was not accepted. Indeed the price-fixing committee through the instrument of the import license system, fixed the maximum price of foreign hides and skins similar to those produced in the United States at the same figure that was agreed upon for the domestic product. The complete schedule adopted will be found on pp. 729-752. 320 HISTORY OF PRICES DURING THE WAR. maximum price of 30 cents 1 for No. 1 native steer hides to be effec- tive for three months ending November 1, 1918. 2 As the end of 1918 approached provision was made for the further revision of hide and skin prices, and on October 23 a new schedule was presented to the trade for the months of November, December, and January. This schedule provided for a still further decrease in prices. The figure for November and December was 1 cent less than the existing maximum price, and that for January was 2 cents lower. This apparent decrease may be explained by the fact that the hides secured from the winter take-off are usually of lower quality than those from the take-off of other months. It was really proposed to continue the fall prices minus a differential to allow for the poorer quality. Here again, however, the packers protested, 3 this time on the ground that the differential applied would be reflected in the price of meat. " With the price of hides fixed," they said, " meat would bear the brunt of the fluctuations in the live-stock market." "But the prices suggested by the price-fixing committee again were adopted, and 29 cents was made the price for the November-December take- off of No. 1 native heavy steer hides. In spite of the cessation of hostilities the January price of 28 cents also went into effect on the first of that month, but on January 31, 1918, maximum prices of hides expired by limitation. Sheepskins. The extraordinary demand for leather jerkins for the use of our fighting forces had sent the price of sheepskins to a level 250 per cent above its prewar average. Since the needs of the Army were sufficiently large to absorb virtually the entire domestic output 4 it was thought advisable, to make some arrangement whereby the governmental authorities might secure an option upon the necessary supply at a fixed price. Accordingly, on March 20, 1918, the chair- man of the War Industries Board called the various packers and wool pullers to Washington. As a result of this meeting an agree- ment was reached whereby the wool pullers promised to give to the tanners of jerkin leather an option on all picked sheepskins at a maximum price of 14 cents per square foot, while the tanners in turn agreed to dress these skins for the United States Government at a fee of 4 cents per square foot. In other words, the Army authorities 1 This price, it will be noted, was 3 cents lower than the maximum fixed for the pre- ceding months. 2 Differentials based upon this 30-cent price were lated fixed by the hides and leather section of the War Industries Board. It should be added also that the trade recom- mended that all dealers and buyers of hides and skins be licensed, but in this the price- fixing committee refused to concur, since they saw no especial benefit to be derived therefrom. 3 See minutes of the price-fixing committee, Oct. 28, 1918. * The estimated production of pelts of the type used in making leather jerkins was 1,000,000 per year. Of these the Army took an average of 75,000 per month, or 900,000 per year. GOVERNMENT CONTROL OVER PRICES. 321 really contracted to take over all pelts at a fixed price for the period ending June 7, 1918. The renewal of this contract at expiration was not considered desirable, and it was thought advisable rather to include sheep pelts with other hides and skins under a system of fixed prices applicable both to governmental and civilian purchasers. The matter was there- fore presented before the price-fixing committee, together with a list of prices which had been prepared by the industry and approved by the chief of the hide and leather section of the War Industries Board, and on June 7 a series of maximum prices ranging from 8 to 18 cents per pound was fixed for the various grades of sheepskins 1 for the period ending August 1, 1918. These prices were later ex- tended for the months August, September, and October, and on October 30, after being slightly changed so as to allow for the poorer grade of pelts which came into the market during the winter months, they were further adopted as maxima for November, De- cember, and January. Tanned leather. It was evident from the beginning that price fixing in the leather industry would have to be extended to its various fabricated products. Indeed, in April, when maximum prices for hides were first adopted, the price-fixing committee publicly stated that as a matter of policy it would meet with the tanners 2 " with a view to establishing fair and equitable prices on leather, and would endeavor to see that leather products would reach the consumer at fair and equitable prices." But the fixing of leather prices was soon found to be a more difficult task than that of determining a price for raw hides. Hides are but a by-product of the packing house, and animals are killed primarily for their meat and not for their hides. The cost of produc- ing a hide, therefore, pla} 7 s but a minor and indirect part in de- termining its market price. But with leather certain costs had to be determined, since the selling price is in large part determined not only by the cost of the raw hides plus the cost of manufacture but also by other incidental costs. There is involved, too, the profit of the tanner. The Federal Trade Commission, accordingly, was asked to investigate the cost of manufacturing various kinds of leather. Harness leather: The first case of price fixing in the tanned leather industry occurred in June, 1918, and was made applicable to the variety used in the manufacture of harness. The informal 1 The schedule of prices as adopted is to be found on p. 738. - In the case of harness leather, the Army price, which had been fixed by informal agreement in January, 1918, may be considered as an early attempt to fix the price of tanned leather. But here, also, as with the agreement pertaining to sheep skins for Army jerkins mentioned above, what reaHy existed was a long-time contract, little differ- ent from any other commercial agreement extending over a fixed period. 125547 20 21 322 HISTORY OF PRICES DURING THE WAR. price agreement entered into by the Army and the producers of harness leather was about to expire, and the establishment of a defi- nite maximum price for all purchasers was considered preferable to the extension of the Army option. The Federal Trade Commis- sion, moreover, had collected sufficient cost data to warrant the fixing of a fair maximum price for all consumers. On June 25, therefore, the price-fixing committee in agreement with the pro- ducers fixed the maximum price for all weights of black harness leather " going either to the Government or into civilian outlets, to be effective until November 1, 1918, at TO cents * per pound for grade A." This price was subsequently extended to December, at which date it was allowed to lapse. Sole and belting leather: It was not until the middle of July, 1918, that the question of sole-leather prices was taken under consid- eration by the price-fixing committee, and even then, because of lack of sufficient cost data, no definite action was taken. The chief of the hide and leather section of the War Industries Board had recom- mended the regulation of the tanners' profits as the only effective method of fixing the price of sole leather. Since this was a radical departure from the former policies of the price-fixing committee, 2 the matter was laid aside for further investigation. Shortly after- wards a committee representing the tanning industry submitted a report on the cost of tanning sole leather and suggested that 13.5 cents per pound be used as the tanning cost basis in determining maximum prices. This figure they claimed netted them a return of 10 per cent, and since they averaged but one turnover per year on their investment, an allowance of 13.5 cents for tanning would make their profits equal to 10 per cent per annum. Although the cost data of the Federal Trade Commission showed 12 cents as a fair average figure for tanning costs, the price schedule of the tanners was ac- cepted as the basis on which prices were fixed, and on August 8, 1918, maximum prices on belting and sole leather were announced by the price-fixing committee. 3 These prices were to become effective im- mediately and were to continue until November 9. On October 28, at the request of the tanning industry, they were extended to De- cember 8. The need' for their further continuation having been removed by the signing of the armistice in November, maximum prices of sole and belting leather were not renewed after their expiration on the latter date. price was substantially the same as had prevailed on the open market during the preceding half year. Other prices were fixed for the different varieties of harness leather, and these too showed virtually no change from the current market quotations. 2 The policy of determining a fixed price on the basis of return upon the investment in a given industry, although untried during the early months of the regime of the price- fixing committee, was later applied very frequently. Such was especially true in the case of cotton fabrics and chemicals (see pp. 298 and 33S). 8 A complete schedule of sole and belting leather prices will be found on p. 750. GOVERNMENT CONTROL OVER PRICES. 323 Upper leather: With the prices of hides and skins, harness, sole, and belting leather fixed, there still remained the task of determining maximum prices for upper leather. The lack of sufficient cost data and the proposed inauguration of a system of price fixing for shoes delayed the adoption of a fixed price schedule for upper leather, however, and it was only within 10 days of the signing of the armis- tice that any definite action was undertaken. Before the prices adopted had been announced, hostilities had ceased, and on November 22, 1918, the price-fixing committee notified the trade that there was no longer any necessity for putting the agreed prices into effect. 1 Summary. The control of prices in the hide and leather industry began with the control undertaken by the British Government, which was first instituted in December, 1916. This was followed by cen- tral allied purchasing upon the part of all the allied Governments even before the United States entered the war, and was afterwards continued by central allied purchasing and allotment. Under the British control of importation and the British allotment of hides and skins and leather to war industries prices were established first upon the raw hides and skins, soon after upon leather, and to a considerable extent upon leather manufactures. The control of hides and skins prices was complete, the control of leather prices extensive, and the control of leather manufactures extended to shoes, both Army and civilian, and all other items of leather manufacture which entered into British and other Army contracts. The American control of these commodities followed in general outline the methods already laid down by the control exercised under the British Government. It differed mainly in that the neces- sity for control was not so materially apparent in America, and that the control over leather and the manufactures of leather never ex- tended far beyond the field of Government purchases. Indeed, at the signing of the armistice price fixing had not ad- vanced beyond raw hides and skins and several intermediate products, such as sole, belting, and harness leather, 2 and even the maximum 1 The prices adopted were based on a 6 per cent return on the investment of the tan- ners and had been submitted to the price-fixing committee by the hide and leather section of the War Industries Board. The trade, however, objected at first to the limitation of their profits to 6 per cent and contended that because of the risks entailed due to unex- pected changes in style, etc., they were entitled to at least 8 per cent. This return, in the opinion of the price-fixing committee, was much too large, for the cost data submitted by the Federal Trade Commission showed a turnover of 2 times per year ; and on such a basis a return of 8 per cent meant an annual profit of 20 per cent. The figure finally agreed upon (which never was put into effect) was based on. a 6 per cent return. 2 Had the war continued, an elaborate system of price fixing extending not only down through the various fabricated products, but also to the ultimate consumers, might have been put into effect. The plans of the War Industries Board provided for the elimination of all, unnecessary styles and the establishment of a system of price classification for each grade of shoes. Provision was also made for a system of manufacturers' serial numbers, which would have enabled purchasers to Etseertain both the name of the manufacturer of any shoe and the price at which such shoe ought to retail. 324 HISTORY OF PRICES DURING THE WAR. prices applied to these were never, in many instances, reached on the open market. 1 MANILA FIBERS AND HEMP. The extraordinary needs of the United States Navy and the United States Shipping Board for rope and cordage of all varieties, made significant the rise in the price of manila hemp during 1917 and 1918. The United States Government by the middle of 1918 was consuming virtually all the manila rope manufactured in the United States, and as our demands increased, speculation grew. Indeed, our entrance into the war stimulated speculation within the trade to such an extent that by June, 1917, manila hemp was selling for 24 cents per pound, or approximately 207 per cent above the 1913-14 level. The price continued to rise through the second half of 1917 and in January, 1918, reached $0.2856. It was evident that this condition could not be allowed to con- tinue, especially in view of the growing demands of our new mer- chant fleet, and in late March, 1918, the War Trade Board undertook to regulate the price of manila hemp. It relied upon its power of controlling exports from the possessions of the United States as the machinery for enforcing the prices adopted. Manila hemp was, therefore, placed on the restricted list, and after March 31, 1918, no shipments from the Philippines, either to the United States or other countries, were allowed without permits or licenses from the War Trade Board. With the exports of manila hemp subject to license requirement, it was relatively simple to add conditions to be met before an export license could be secured. One condition stipu- lated was that " persons desiring to ship hemp or manila fiber from the Philippine Islands, whether to the United States or elsewhere [had to] show to the satisfaction of the War Trade Board or its representative, by affidavit or otherwise, that the hemp or manila i This was especially true of hides mid skins, as shown in the following table: Fixed and quoted prices of cattle hides. [Averages.] Packer. Country - ] mportec Per Per Per Fixed price. Quoted price. cent quoted to Fixed price. Quoted price. cent quoted to Fixed price. Quoted price. cent quoted to fixed. fixed. fixed. 1918. April. .. $0. 2412 $0. 2123 88 $0.1867 $0.1550 84 $o.asoo $0.3198 97 May June and July. . .2912 .2837 97 .2317 .1855 77 .3300 .3299 100 August, September, and Oc- tober . 2688 .2688 100 .2133 .2096 98 .3270 .3263 100 November and December .2588 . 2588 100 .2108 .2079 99 .3270 . 3250 99 GOVERNMENT CONTROL OVER PRICES. 325 fiber covered by the application for a shipping permit or export license " had been bought at a certain price in accordance with a schedule prepared by the War Trade Board. 1 Moreover, in order that the price of fibers might be controlled after they were landed in the United States, a further condition was added requiring the con- signment of all such shipments to the Textile Alliance for the ac- count of whomsoever the shipper might designate. 2 The price fixed for the standard grade of hemp was 17 cents per pound f. o. b. Manila, or about 25 cents at New York. This price, though slightly lower than the current market figure, was admittedly high. It was made high, however, in order not too seriously to prejudice the interests of the many importers, manufacturers, and producers by a " precipitous price adjustment." 3 It was to remain in effect for four months. As the end of that period approached, the War Trade Board asked the price fixing committee to take over the regulation of manila fiber and hemp. 4 A lower price than that fixed in March was recommended, and on July 24, 1918, the price fixing committee fixed a price of 14 cents per pound for grade " I Current " manila fiber f . o. b. Manila. This price was temporary, however, since there had not been time to secure sufficient basic in- formation from the trade. It was to be effective until August 31, before which time further details relative to an appropriate price could be secured from the Governor General of the Philippines and the various consumers. Neither the fixing of the price of these fibers nor the figure adopted appear to have pleased the native growers, for immedi- ately complaints were heard. Both the Philippine Legislature and the agricultural interests asked for the removal of price control, and to their requests was added that of the Governor General. Accord- ingly, when the time for the expiration of the fixed fiber prices ap- proached, the price fixing committee decided not to renew them, and on August 31 manila fiber and hemp prices expired by limitation. BURLAP. The abnormally high price of burlap resulting from the flagrant speculation which took place in 1917 and 1918 in India, the United Kingdom, and the United States, led, in the fall of 1918, to an order 1 This schedule, which used as a base the price of grade " I Current " manila hemp, is published 011 p. 705 of this volume. Prices were fixed for the various types of fiber both at Manila and at New York. 2 Exception was made, however, in the case of shipments to the United States Govern- ment. The Textile Alliance in turn released such shipments to the -ultimate consignee only upon receipt of a guaranty that all regulations governing trading in hemp in the United States would be abided by. 2 See minutes of price-fixing committea, July 24, 1918. * The Philippine Islands being a possession of the United States, it was felt that the price-fixing committee had authority to fix prices there. 326 HISTORY OF PRICES DURING THE WAR. of the War Trade Board which prohibited the private importation of all burlap unless under order of the War Industries Board. Action Avas also taken relative to the lowering of the price of burlap; and the members of the trade, anticipating that prices would be decreased as a result of negotiations entered into between the Governments of the United States and Great Britain, entered into a A^oluntary agree- ment with the War Industries Board whereby the price of 40-inch, 8-ounce burlap was fixed at Pacific ports at 13.6. 1 Burlap- bag prices were also fixed on the above basis f. o. b. factory plus the cost of manufacture and a margin of 5 per cent. This agreement applied to all contracts entered into prior to October 4, 1918, and expired shortly after the signing of the armistice. LUMBER. Southern yellow pine. The demand for OA T er a billion feet of lumber for the construction of cantonments confronted us immediately after the outbreak of war. Although the ultimate supply of structural timber in the United States was far in excess of the Government re- quirements, the prompt de- Weighted index numbers of prices. Liurn- . . ber ; and "All commodities." By quarters, livery OI SO large an Order 1913 to 1918. (Average quoted prices, threatened to put an unusual July, 1913, to June, 1914=100.) pressure on the lumber mills and to send prices quickly upward. The brunt of this heavy order was to fall on the southern yellow-pine mills, for the southern pine was not oflly the leading construction timber in times of peace, but the location of the pine forests near the many cantonments in tho South and West gave it the preference over the distant Douglas fir of the Pacific coast and over the scanty stands of hemlock and east- ern spruce. The first step in the creation of our war machine there- fore depended upon the southern pineries, and the first great prob- lem of price fixing arose in connection with that species of lumber. The Government was forced to commence the work of regulating 1 Other prices which were fixed for various weights of burlap at the different ports will be found on page 679. GOVERNMENT CONTROL OVER PRICES. 327 lumber prices by the very necessities of the hour the securing of the raw materials for our training camps without delay. It was evi- dent that if the individual contractors each attempted to secure the lumber needed for each cantonment in the open market through the medium of the various middlemen and wholesalers, lumber prices would shoot upward under the stimulus of this exceptional demand. The rise in prices, however, would have been the lesser evil. The lumber industry is intensely competitive and the thousands of mills would have bid strenuously against each other to secure the Gov- ernment business with the result that the cantonment orders would have gravitated to the largest mills, or to the mills offering the great- est price concessions, thus giving some mills more orders than they could fill immediately while other mills had no Government business at all. Thus the necessity of price fixing grew out of the need of apportioning orders between all the lumber mills in accordance with their productive capacity and their proximity to the cantonment sites. As a basis of price fixing nothing short of pooling of the entire southern yellow pine industry was necessary, and the committee on lumber appointed by Mr. Baruch in April, 1917, to act under the Eaw Materials Division of the Council of National Defense in- stinctively recognized this fact. The lumber committee at once called representatives of the southern pine mills to Washington, and at the instigation of the lumber committee these private lumber men went home to form emergency lumber bureaus that would have power to represent each branch of the southern pine industry. These southern pine associations were quickly organized and men empowered to represent the southern pine industry almost immedi- ately began to hold conferences with the lumber committee in re- gard to the establishment of a uniform price of yellow pine lumber for Government cantonment requirements. Finally, on June 13, 1917, the average price of $20 a thousand board feet for canton- ment stock, which was equivalent to $23.20 for the run of the mill, was set by voluntary agreement between the Government and the lumber men. This price was not based on a study of costs, but, inasmuch as the price allowed was higher than the market price of $17 a thousand which prevailed earlier in the year, it was believed by representatives of the Federal Trade Commission to allow a fair margin to cover the increasing costs of producing lumber. By dealing directly with the industry itself the Government did away entirely with the interposition of middlemen and thus saved the wholesalers' profit. Under the informal price agreement 52,000 carloads of southern yellow pine or over a billion feet of lumber were delivered between June 15 and September 15, 1917. By apportioning orders through 328 HISTORY OF PRICES DURING THE WAR. the emergency pine bureaus to the individual mills on the basis of their productive capacity and proximity to each cantonment all the the mills quickly turned out the quotas assigned to them, and by fixing the same price for all the mills none were tempted to secure more than their share of orders by cutting prices. A voluntary reduction of from 50 cents to $1 a thousand board feet in the price of southern pine was made on September 11, but there was no further price fixing until the appointment of the price-fixing com- mittee of the War Industries Board in March, 1918. The effect of the control of the prices of southern yellow pine was communicated to the prices of other woods, such as Douglas fir and hemlock, which are normally used for the same purposes and which follow the lead of southern yellow pine under normal market con- ditions. Thus the direct agreement as to the prices of southern pine indirectly brought these other woods under the influence of the price- fixing power long before their prices were formally fixed. During the interval between the informal price agreement in June, 1917, and the first action of the price-fixing committee in March, 1918, prices to the general public which were not covered by the rtgreement were steadily increasing as a result of the increasing costs of producing lumber until in May, 1918, they ranged from $5 to $7 a thousand higher than the prices paid by the Government. This disparity in prices as well as the rising costs prompted the new price- fixing committee of the War Industries Board on June 15, 1918, to fix a new price for southern yellow pine of $28 a thousand board feet, applicable to both Government and civilian purchases, which represented an increase of $4.80 over the price first set. The new price was based on a cost investigation by the Federal Trade Com- mission and was lower than the price contended for by the lumber- men, Avho claimed that the value of stumpage should be computed at its present market value instead of at its original cost. No further increase in the prices of southern yellow pine was allowed by the price-fixing committee despite the fact that the constantly increasing cost of producing lumber made the prices that went into effect on June 15, 1918, less and less profitable. The ques- tion as to advancing the prices of yellow pine was discussed when the time limit September 15 of the fixed prices was reached, but the same prices were ordered to be continued in effect until December 23. The reason for this rigid policy was to be found in the desire of the Government to curtail the production of lumber, after the peak of Government demand had been satisfied. By the latter part of 1918 normal building operations had fallen to a very low ebb, and there was a surplus of ordinary building materials on the market. Consequently there was no necessity for stimulating pro- duction by offering higher prices; on the contrary it was necessary GOVERXMEXT COXTROL OVER PRICES. 329 to release part of the labor and capital employed in the building- industries by curtailing the production of such material. One means of curtailing production was to keep prices fixed below the cost of production of some of the marginal mills, and thereby to cause their withdrawal from production. Oilier softwoods. The price control of southern yellow pine was the dominating feature of the Government price fixing of lumber. While the price of southern yellow pine can not be regarded as the base price for all other softwoods, the prices of other woods were nevertheless closely related to the prices of that major species. North Carolina pine is but a trade name for a species of southern yellow pine and its fixed price conformed closely to that of the other yellow pines. The price of Douglas fir, first fixed on Marxh 19, 1918, was set lower than that of yellow pine, ranging from $10 a thousand for No. 3 to $19 a thousand for No. 1. The difference in the fixed prices of yellow pine and Douglas fir corresponds to the differences in the two indus- tries. Douglas fir occurs in dense stands on the Pacific coast where its supply is great 760 billion feet and its demand relatively small in the locality where it is produced; southern pine has reached its crest and is waning in supply while the demand for it from the nearby centers of population in the South, East, and Middle West is constantly increasing. Douglas fir competes on even terms . with southern pine in the markets of the Middle West, but in order to at- tain that parity it must pay the heavy freight charges on the long haul from the Pacific coast and consequently its price on the Pacific coast is lower than that of pine in the Gulf States. The cost of pro- ducing Douglas fir is also lower than that of southern pine because Douglas fir is cut by large mills that operate in tremendous stands of timber, while southern pine is cut by smaller mills with higher costs. A further reason for the relative cheapness of Douglas fir as compared with southern pine during the war is to be found in the high prices paid for special grades of Douglas fir for ships and airplanes, which entailed the production of a large " side-cut " which could be used for construction purposes. While the actual price of Douglas fir was thus lower than that of southern pine, however, its relative increase in price over the prewar level was even greater than that of its rival. The prices of Pennsylvania hemlock, first fixed on May 9, 1918, conformed closely to that of southern pine because it was used for the same general purpose of construction. Eastern spruce, which is used for building to some extent, was given a considerably higher fixed price than southern pine. Spruce is a preferred wood, for many purposes, notably for paper pulp, and its price as a building material must be high enough to equal its value in these alternative uses. The car shortage during 1918 shut out southern pine from the 330 HISTORY OF PRICES DURING THE WAR. Xew York market, and spruce could consequently be sold for general building purposes at a much higher price than that fixed for pine. Western spruce was in great demand for the wings and beams of airplanes, but the quality required for this important purpose was so high that only about 10 per cent of the total production met the tests. Since there was but small demand for the " side-cut " it was necessary for the Government to pay for the airplane stock at a rate that would make the cutting of the wood profitable, even although little was received for the " side-cut." In this case, the Government stimulated the production by paying a relatively high price, but this was an exception to the general rule. Harckvoods. The number of species of hardwoods is so great, the conditions of production between the various species and even between the same species in different States are so diverse and the special uses which give each of these species a special market are so varied in normal times that there is no consistent price structure between the hardwoods as there is in the case of softwoods under the leadership of Southern yellow pine. The Government had urg- ent need of certain grades of some hardwoods for specialized war purposes, and it bought practically the entire supply of these choice grades. Walnut for gunstocks and airplanes was the premiere wood of the war, justly called the "Liberty tree"; mahogany for airplane propellers was an important supplement to walnut; locust for tree- nails was an essential for wooden ships, while ash and hickory for handles and vehicles, oak for airplane propellers and artillery wheels, and birch for airplane ply-wood all did their bit in the military program. The Government did not fix the price for any of these woods, but since it established a fixed schedule for its own pur- chases, and since it was practically the sole purchaser in the case of walnut, locust, and mahoganj*, its action virtually amounted to price- fixing. The prices paid by the Government for these special grades were relatively high in order to cover the entire cost of production, including that of the lower grades of wood for which there was no immediate market and in order to stimulate the production of vital war material to the maximum. The market prices of the lower grades of the war woods, and the market prices of woods not used in the war in sharp contrast to the prices of walnut, mahogany, and locust were low. The prices of hardwoods in general did not rise as rapidly as the softwoods or as the prices of all commodities. The demand for furniture and for other wood products had dwindled to a very low ebb during the war, and hardwood logs that were cut as a by-product of other logging operations were constantly sold at relatively low prices. In view of the peculiar differences that exist between hardwood and softwood markets, however, the difference GOVERNMENT CONTROL OVER PRICES. 331 in the prices of softwoods and hardwoods can not be attributed to the fact that the prices of most of the softwoods were fixed while the prices of the hardwoods were uncontrolled. BUILDING MATERIALS. Prices of the basic building materials were fixed during the war, but the scope and effect of price control varied considerably with the different building materials. The price of the lumber that was used for constructing cantonments, ships, and aeroplanes to the extent of 20 per cent of the total annual production was controlled by the Government from the beginning to the end of the war for most of the important kinds of lumbers and for both Government and pri- vate purchases. The price of the Portland cement that was an important material for a great variety of construction work from Government buildings to fortifications and even ships was fixed for Government purchases at the important producing centers. The price of structural steel, in common with all other kinds of that vital war material, was fixed in all markets by the Government. The prices of other building materials such as common brick, hollow building tile, sand, gravel, and crushed stone were controlled only in localities where there was a large volume of Government con- struction work. This last-named group of building materials was in heavy demand only in the congested district of the East, and the price control there exercised in behalf of 'Government purchases had only an influence upon local prices. The prices of 33 building ma- terials that consisted of partly manufactured products of the basic building materials such as metal lath, metal-corner beds, etc., were not directly controlled at all. Price fixing in the field of building materials had certain distin- guishing characteristics in spite of the wide dissimilarity in the com- modities composing this group. These attributes of price control in construction materials may be noted under four main heads. The last head is not peculiar to building materials. 1. The prices of building materials were not fixed at a level that would stimulate production but rather at a level that would actually curtail the output of materials for construction. Since the volume of private building in 1918 had dwindled to 20 per cent of its normal physical magnitude and since the combined construction program of all the Government departments was not over 25 per cent of the nation's normal building operations there was no necessity for in- creasing the production of the raw materials for building. In fact private building was regarded as nonessential during the war, and every effort was made by fuel curtailments, refusal to grant priorities for cars, etc., to discourage normal building. The result of these Government restrictions combined with the high prices of building 332 HISTORY OF PRICES DURING THE WAR. materials was to reduce the demand for new building faster than the manufacturers of building materials could curtail production, The Government consequently had no difficulty in securing sufficient sup- plies of the common building materials, because the plant capacity for producing these was far in excess of the reduced demand. In fixing prices the policy was accordingly adopted of allowing the pro- ducers of building materials such a price as would yield them only a normal return on their investment. Where the normal return on the investment was low on account of keen competition as it usually was in the building materials industries only a low return on the invest- ment was allowed. Thus the prices fixed on common brick allowed an average net return of only 8.76 per cent, and the cement prices yielded 6 per cent on the investment. It also happened that lumber prices fixed on the cost of production of March, 1918, were not in- creased later in spite of advancing labor and materials costs. The Government thus held down the prices of building materials because the production was in excess of all essential war needs, and it was desirable in the interests of war conservation to enforce a price so low that it would actually close down the marginal plants. The effect of this low-price policy is shown by the fact that the average price of lumber and the average price of cement increased only 73 per cent between 1913 and the end of 1918 as contrasted with 102 per cent for all commodities. There were a few exceptions to the policy stated in the foregoing paragraph. Structural steel shared the high prices allowed to stimu- late steel production, but nevertheless the use of structural steel was curtailed wherever possible so that its rise in price was due entirely to its relation to other steel and not to a demand for it for building. The prices paid by the Government for certain rather scarce woods such as walnut, mahogany, locust, etc., were purposely made high in order to stimulate their production. 2. Price fixing in the building industries had for one of its main objects the stabilizing of the industries. Industries producing build- ing materials were accustomed to compete most strenously within their own ranks and with each other. Southern pine lumber corn- batted Douglas fir lumber, hemlock, and spruce; North Carolina pine competed with Georgia and Alabama pine; the small mill competed with the larger in the same territory ; while all the lumber mills fought cement and brick. This price competition while en- tirely satisfactory to the consumer in times of peace was unsatis- factory to the Government in times of war, because it meant irregu- larity of production, delay in placing orders and competition be- tween Government departments. The Government always preferred to deal with one central body representing the whole trade that could guarantee large deliveries and allocate the orders fairly be- GOVERNMENT CONTROL OVER PRICES. 333 tween its members. Only by fixing a stable price for the entire in- dustry would the temptation for rival mills to secure business by cutting prices be entirely avoided. The paramount necessity was to secure unity of action among the trade to win the war and to avoid the wastes and delay of competitive strife. The result of the price-fixing policy was thus to solidify industries. Every important building-material group patched up their internal differences for the time being and appointed a war-service com- mittee to represent the entire trade. This war-time concentration will leave lasting impressions. The rise of the National Lumber Manufacturers' Association, the formation of an association of brick manufacturers can be directly traced to the war. Price stabilization inevitably fosters the industrial combination that is necessary to sus- tain a stable price. In this respect price fixing of building materials was no different from price fixing in any other field. 3. Not withstanding the tendency toward a uniform price policy, the fixed prices of building materials varied more from one locality to another than almost any other group of commodities. While the prices of lumber and steel were fixed at single base points, the prices of sand, gravel, and crushed stone were fixed differently in each lo- cality, fixed cement prices varied at 40 different producing points, and common brick prices varied in the 16 zones in which Government purchases were made. These variations are to be attributed to the fact that brick, cement, sand, gravel, and crushed stone are produced near the locality where they are consumed, being too cheap in propor- tion to their bulk to be transported far. Consequently the market for these bulky articles is a local one and the price is determined by the local cost of production and the local demand. In fixing prices each producing center accordingly had to be separately considered. This was especially true of brick, sand, and gravel. While cement prices differed considerably, there was still a common price structure with fixed differentials. 4. A common result of price fixing is standardization. It is essen- tial in fixing a uniform price that the grade and quality upon which the price is fixed does not vary, for otherwise the value received will vary in spite of the fixed price. If the goods are not already stand- ardized, they must be reduced to uniform types before the prices can be fixed. Basic raw materials are usually standardized and lumber, steel, and cement were already gauged by certain definite mechanical tests. The sizes and quality of common brick, however, varied greatly and one of the causes of variation in brick prices was the difference in size and quality. The act of fixing the prices of com- mon brick stimulated a movement toward standardization and this may be one of the lasting results of fixing the price of bricks. 334 HISTORY OF PRICES DURING THE WAR. Portland cement. Portland cement ranked next in importance to lumber as a war building material. Its use in armories, barracks, gun placements, trencli linings, bomb-proof shelter, incinerators, munition factory buildings, warehouses, barges, and reinforced con- crete ships gave cement prominence in the war program as early as April, 1917, and the congestion of Government orders at certain points along the Atlantic seaboard threatened to cause local short- ages of cement and sharp rises in cement prices, in the districts of heavy Government demand. The production of cement for the country as a whole was ample for the increased requirements of war even without drawing upon the excess productive capacity of the cement mills. In fact the declining consumption of cement that resulted from the curtailment of normal building operations had more than offset the new orders from the Government. Since Port- land cement is a bulky commodity, however, it is not profitable to ship it far from the mill, and since the limestone and coal that are the chief materials used in its manufacture are widely distributed throughout the United States, conditions have been favorable for the establishment of cement mills in nearly every State. Each cement mill thus enjoys a local monopoly, the radius of which is determined by its cost of production and by the proximity of other mills. The cement mills of the South which possess an abundant supply of a limestone almost ideal for cement making, joined to a cheap supply of coal, can produce cheaper and send their product farther than the mills near New York City, which possess fewer advantages in re- spect to raw materials. Nevertheless the proximity to the great centers of population enables the mills in New York and the Lehigh district in Pennsylvania to offset the advantage of the southern mills and allows them to hold the markets in the big cities against their southern rivals. Thus the cement industry is split up into many local markets which are connected by a series of price differentials, but which nevertheless enjoy a large measure of independence. It is therefore possible for local shortages of cement to exist in some communities, notwithstanding the existence of an oversupply in other communities, and this is particularly true when the tremendous concentration of war goods pouring towards the Atlantic seaboard strained the normal means of transportation and put an embargo on bulky goods. To secure an adequate supply of cement for the Gov- ernment it was therefore necessary to allocate the supply and to fix the prices at the points of congestion. The Portland cement industry had a large degree of cohesion be- fore the war for the purpose of pushing the sale of cement in com- petition with lumber, brick, and stone, although the price competition between the various cement mills had bordered on the cut-throat va- riety. This organization nevertheless facilitated the quick appoint- GOVERNMENT CONTROL OVER PRICES. 335 ment of a " cooperative committee on cement " under the Council of National Defense on April 21, 1917. This committee, composed of representatives of the industry and of the Government at once began to act as a clearing house for assembling trade information prepara- tory to advising the committee on raw materials of the Council of National Defense as to available supplies and prices of cement. While this committee was acting, many purchases of cement were made by the Army and the Navy at no definite price, but with the understanding that a fair price was to be fixed later. On December 18, 1917, the first committee was dissolved and a war service com- mittee on Portland cement was organized. No prices were fixed, however, until the price-fixing committee in April and May, 1918, after an investigation of costs by the Federal Trade Commission fixed prices for the Army and Navy purchases for the six-months' period ending December 31, 1917, the four-month period ending April 30, 1918, and the four-month period ending August 31, 1918. Later on, August 23, 1918, the price-fixing committee established prices for the four months ending December 31, 1918. . The prices set for 1917 applied only to Army and Navy purchases and they became effective when accepted by the industry and the purchasing departments. This first price list, which has a retroactive effect, covered 30 different producing points, and the prices varied from $1.30 a barrel in Texas to $1.90 a barrel in California. The second price list applying to all Government purchases for the first four months of 1918 was the same as the first. The third set of fixed prices for the four months ending August 31, 1918, marked an ad- vance of as high as 45 cents a barrel for the low-cost mills, dropped prices on some of the high-cost mills in the Pacific coast States, and reduced the maximum variation in cement prices to 35 cents a barrel and the average variation to about 20 cents a barrel. The fourth price list for the four months ending December 31 was virtu- ally the same as the third price list, except that the prices did not include bin inspection and a reduction of 3 cents a barrel was made for the value of that service. The chief results of the price fixing of cement were to prevent a rise in price at a few congested points along the Atlantic seaboard and to facilitate the prompt delivery of cement 011 Government or- ders by eliminating price cutting with its attendant waste, confusion, and irregular production. The main current of cement prices throughout the country as a whole was not substantially affected. Only 11,813,076 barrels of cement were allocated at this fixed price during 1917 and 1918 out of a total production of 92,814,202 barrels in 1917 and 71,632,000 barrels in 1918. The price of Portland cement to the general public was never fixed, and this ranged about 30 cents a barrel higher than the price 336 HISTORY OF PRICES DURING THE WAR. fixed to the Government. Price fixing leveled up market prices to some extent thereby giving the low-cost mills large profits, while limiting the marginal mills to a low return. The concentration of production at the largest mills equipped with the most modern machinery would have enabled the Government to have fixed ce- ment prices at a lower level, but the pooling necessary to bring this about involved too many practical administrative difficulties to jus- tify the adoption of this policy. The prices fixed in 1917 yielded the cement industry as a whole 12 per cent on its investment, and of course individual mills reaped a much higher rate, but subse- quent price fixing reduced this margin to 6 per cent merely by maintaining the status quo in the face of advancing costs. The general supply of cement was so ample, as compared with needs, that the Fuel Administration on April 13, 1918, reduced the fuel allotment of the cement mills to 75 per cent of normal on the theory that part of the fuel used in the cement industry could be better employed in other war industries. There was consequently no oc- casion for stimulating cement production by high prices, and the lowering of the margin of profit for the purpose of curtailing pro- duction was entirely justified. Cement prices rose in the open market less than any other basic building material during the war, and the reason for price fixing in the field of cement is to be found in the desire of the Government to prevent the stimulation of prices which its own large demand would normally have caused in certain congested building areas. Common brick. The markets for common brick are confined to points near the localities where brick is made, and consequently questions of supply and prices vary in the different localities. The demand for common brick for both Government and civilian use during the war declined to probably one- fourth of normal, or to a greater extent than was the case of other building materials except stone. A shortage developed, however, in a few of the large eastern cities in the congested building districts, and prices for brick were there established on all Government orders. The price of common brick in New York, Philadelphia, Baltimore, and Washington was the first to be formulated ; the other prices were not announced until after the armistice, but they had a retroactive effect and applied to all purchases made at tentative prices. Prices fixed by the Govern- ment for light-burned common brick varied from $9 a thousand brick in Chicago to $15.50 a thousand brick in Philadelphia. These differences were, in some instances, due to variation in the size and quality of the brick, but in most cases they were due to differences in the local market. Thus the supply of brick in New York average a price of $9.50 per thousand, which was originally fixed for the period ending October 31, 1918, for the accumulated stock left over GOVERNMENT CONTROL OVER PRICES. 337 from 1917, which had been produced 011 the lower 1917 level of cost. The Philadelphia brick of the same general type was fixed at $6 per thousand higher in price because the Philadelphia brick was produced during 1918 when labor was high, due to the competition of the shipyards. The Philadelphia brick was also larger in size and of somewhat better quality than the New York brick, but this does not fully account for the difference. It is probable also that a larger marginal profit was allowed the Philadelphia brick producers than to the New York brick men; for the price-fixing committee in general adopted the policy of fixing prices so that producers would receive their prewar level of profit. The profits of the New York / brick makers were very low before the war because of the keen com- petition of the brick men along the Hudson Eiver. The price-fixing j committee allowed the brick men, as a whole, only 3.76 per cent on their investment. The effect of Government price fixing on brick was to enable the Government to purchase brick at slightly below the market price during the latter part of 1918 in the congested dis- tricts of New York and Philadelphia. Common brick prices rose very rapidly in the open market during the latter part of 1918. The price fixed for Government purchases, while about equal to the mar- ket prices when originally fixed, were considerably below the market by tlie end of the year. Thus in New York, where the price fixed for Government purchases on light-burned brick was $9.50 per thousand beginning July 1, 1918, which was subsequently raised to $10.50 per thousand beginning November 1, the market price roso from $12.50 in July to $18 in December. Government price fixing exerted a definite influence only in the big eastern cities. Only 108,312,229 brick were allocated at Government fixed prices out of a total production of 5,864,909,000 in 1917, and about 2J billion in 1918. The amount of Government purchases were thus small in comparison to the total common brick output, and as brick sold to the public were delivered at market prices, Government price fixing had no appreciable effect on the average prices of brick throughout the country. Price fixing, even in the case of brick, however, had a tendency to bring out some degree of combination within the industry. An asso- ciation of common brick manufacturers was formed on July 26, 1918, which comprised manufacturers producing about 1J billion brick annually, or about 20 per cent of the normal production. An influ- ence also was exerted in favor of standardization of brick in the different localities ; this, too, is an evidence of concentration, but on the whole the brick industry still remained highly competitive and disorganized. A nation-wide control over prices was therefore less effective than in the case of cement, but since brick was of rather 125547 20 22 338 HISTORY OF PRICES DURING THE WAR. slight importance, however, in the war program this price control was also less necessary here than elsewhere. Hollow building tile. Hollow building tile is also a local product whose use greatly diminished during the war. Prices were, notwith- standing, fixed at the principal producing points for the 176,703 tons of hollow building tile used by the Government. Prices were first fixed for the period ending July 1, 1918, and they were later ad- vanced to cover Government purchases made from July 1, 1918, to the period ending December 31, 1918. Gypsum ic all board and platter board. The Government require- ments for gypsum wall board and plaster board during the war were 100 per cent over the capacity of the plants, and it was necessary to take over the entire output of these materials for Government use and to authorize plant extensions. It also became necessary to allocate orders for Government requirements, and pending the estab- lishment of a fixed price the orders were allocated at tentative prices. On February 27, 1919, the price-fixing committee established maxi- mum f . o. b. mill prices for wall board for two firms at Chicago and for two firms at Los Angeles, and maximum f . o. b. mill prices for plaster board at Chicago. New York, Buffalo, Hampton, Va., Passaic, X. J., Fort Dodge, Iowa, and East Newark, N. J. Since the total production of wall board and plaster board comprised only 10 per cent of the total value of gypsum products, price fixing of these two products had no pronounced efl'ect on the price of raw gypsum. Allocations to the amount of 52,121,060 square feet of wall board and plaster board and to the value of $956.323 were made at the fixed prices. Sanid, gravel, and crushed stone. Sand, gravel, and crushed stone are consumed near the localities where they are produced. During the war there was an acute shortage of these materials in the con- gested district of the East, and it became necessary to fix the price and allocate orders in the Philadelphia, New York, Baltimore, Wash- ington, and Norfolk districts. A total of 2,949,879 tons of sand, gravel, and crushed stone, valued at $3,009,573, was allocated at the fixed prices. The exact prices fixed on each order in each district are shown in the appendix. CHEMICALS. Nitrate of soda. Before the war virtually all of our nitrate im- ports were devoted to the production of fertilizers, and our needs in 1913 equaled more than 625,000 tons. With the outbreak of the European War and the placing of munition orders with American manufacturers, our requirements for nitrates increased considerably, and by 1916 our imports of nitrate of soda had grown to 1,218,423 pounds, an increase of almost 100 per cent. The Chilean market, of CONTROL OVER PRICES. 339 course, felt the effects of the stimulated demand following the declaration of hostilities, and the price of nitrate of soda rose con- siderably. 1 It was not until after the United States entered the war, however, when the War Department had begun actively to compete in the Chilean market against both American private buyers and the representatives of the allied Governments, that prices really soared. In September, 1917, accordingly, nitrate prices were more than twice the average for 1913-14. The importance of nitrates to the war program, however, made essential the elimination of any haphazard competitive system of purchasing. Accordingly, in October, 1917, the Allied Governments began negotiating with the Chilean producers in the hope of securing an adequate supply of nitrates at a price more reasonable than was then being paid. These negotiations were consummated on Decem- ber 10, 1917, and resulted in the Allied Governments securing a vir- tual monopoly over the output of Chilean nitrates. A nitrate execu- tive was appointed by the Allies with headquarters in London, and all purchases of nitrate of soda in Chile for the various belligerents were concentrated in his hands. It was only through this nitrate executive that the various Governments could secure supplies by allo- cations made only on the basis of minimum requirements. 2 Prior to the American entry into the war virtually all of the nitrate of soda brought into the United States was imported by four firms who controlled to a large degree the American sales of this commodity. The machinery for nitrate distribution, then, was highly concentrated, and it was but logical that so far as possible it should be kept intact. Accordingly, it was arranged by the War Industries Board that these importing firms purchase the total amount of nitrate of soda allocated to the United States by the nitrate executive, and continue its distribution as in normal times. It was necessary from the beginning, however, to distinguish between the two types of American demand. First, there w-ere the military needs which the importers agreed to supply at actual cost 3 plus a nominal expense fee. And, second, there were the requirements of the fertilizer manufacturers and of other civilian nitrate users. 1 Nitrate of soda sold for $3.60 per hundredweight in February, 1916, an increase of 56 per cent over its prewar average. 2 The estimated minimum requirements for the United States for the year 1918 were as follows : Tons. For munitions 1, 100, 000 For chemicals 215, 000 For commercial explosives 185,000 For fertilizers and the Department of Agriculture 300,000 Total 1, 800, 000 s The cost of the nitrate delivered was to be an average price based upon the receipts for each month. 340 HISTORY OF PRICES DURING THE WAR. To these consumers the importers were to distribute only such amounts of nitrate as were allocated by the War Industries Board, 1 and for their services they were paid a commission of 2J per cent over the cost of their product landed in the United States. The War Industries Board, on the other hand, stipulated that they would allow no concerns other than the four which entered into this agree- ment to import any nitrates into this country. In order that an equal price might result for all buyers the Shipping Board estab- lished a uniform shipping rate from Chile to the United States. Furthermore, the War Industries Board made arrangements for the shipping of the necessary coal, fuel, oil, etc., required for the manu- facture of nitrate of soda, and in this way a steady output was as- sured, while at the same time any manipulation of prices by Chilean speculators under the claim of ostensible high costs was eliminated. The first deliveries under this pool arrangement were made in Jan- uary, 1918. It soon became apparent that the control over the whole nitrate situation in the United States w^ould require some supervising body, for the supervision of distribution, the fixing of pool prices and the clearance of all contracts covering the imports and sales of the approved importers were matters too vital to the war program to be left unregulated. For this purpose the nitrate commission of the United States, a body made up of representa- tives of the four approved nitrate importers and a representative of the War Industries Board, was created. Their main function, however, soon developed into the control of nitrate prices. The nitrate executive at London determined each month an average pool price and on the basis of this figure the average monthly price in Chile for the United States purchasers, was computed. Consider- able difference, of course, still existed between this Chilean price and the price of nitrates delivered in the United States; for there were many charges such as hauling, freight, insurance, exchange, and the like, which had to be added. And it was the determination of this final landed price that formed the greater part of the task set before the nitrate commission. 2 From the point of view of its primary purpose the plan of nitrate control was successful as is evidenced by the fact that during the 1 The amount of nitrates to be purchased for distribution to civilian consumers was limited however, to an amount equal to their total imports for the calendar year 1913. From this amount were deducted such stocks as had been purchased in 1917 and which had not been shipped from Chile prior to the beginning of 1918. 2 This landed pool price varied from $4.10 per 100 pounds in May to $4.55 in December. For the first four months of 1918 no definite pool price was determined and tentative figures of $4.25 and $4.35 per 100 pounds wore used for billing purposes. It should be stated that these prices were not exact and were based on the figures available from bills and vouchers. Tentative monthly prices were usually made and when all necessary figures became available, the nitrate commission arranged for actual prices and saw to it that the importers made adjustments with their customers on the basis of these final prices. GOVERNMENT CONTROL OVER PRICES. 341 entire period of the war all needed nitrate was secured. 1 That the price was strictly controlled at the lowest possible minimum seems also beyond doubt. Heavy acids. Sulphuric acid: Arrangements were made by the Army and Navy with the manufacturers of heavy acids late in 1917 relative to the prices to be paid by the United States Government for acid supplies. 2 There Avas no instance of price fixing, strictly speaking, in the acid industry until the summer of 1918. The agreed prices of late 1917, which applied to the governmental purchases of H 2 SO 4 were contract prices only and may be considered in a measure similar to any other long-time commercial contract. It appears, however, that there was some doubt in the minds of the Government authorities as to the advantages derived from the agreed sulphuric acid price, and in early 1918 they instructed the Federal Trade Commission to look into the cost of producing acid in this country. The result of this investigation showed a great di- vergence in costs between the several types of producing plants, and it was apparent that no price could be fixed which would limit the returns to all producers within the same bounds. There were, for example, the high-cost chamber-process producers, upon whom the Government was dependent for 1,000,000 tons of sulphuric acid in 1918. Secondly, there were those manufacturers who obtained their sulphur as a by-product from the smelting of zinc and copper ores. And finally there were the low-priced producers who used the mod- ern contact process to produce their sulphuric acid. The large varia- tion in the costs of these three types of producers, upon all of whom the Government was dependent for its supplies, made it evident that a price which would give the chamber-process manufacturers a mod- erate profit would result in an abnormally high return to the con- tact producers. The solution first considered was a series of indi- vidual prices to be applied to the products of plants in accordance with the process used in the manufacture of sulphuric acid, but this finally was deemed impracticable. The possibility of commandeer- ing was considered and dismissed because of difficulties involved, and the fact that the military needs were hardly large enough to war- 1 Mr. B. M. Baruch, chairman of the War Industries Board, in a statement pub- lished in the Federal Trade Information Service of Dec. 24, 1018, says that there was no halting at any time during the war in the manufacture of war materials which depended upon nitrates. - As a result of the negotiations entered into between the military authorities and 1he manufacturers of sulphuric acid, the price of sulphuric acid to the Government was fixed for the first and second quarters of 1018 as follows : Per ton. GO B $18 66 B 30 20 oleum 35 These prices did not apply to purchases made by subcontractors for explosive con- tracts for the United States or its Allies. 342 HISTORY or PRICES DURING THE WAR. rant such action. Moreover, it was quite evident that the total needs of the country necessitated the stimulation of the productive capacity of the country in every possible way, and this meant the establishment of " fair and full prices," provision for heavy plant depreciation and the obtaining of the fullest possible output from the highest cost producers. 1 Accordingly, a system of price fixing was decided upon which allowed a uniform price to all consumers, governmental and civilian alike. It was believed that the excess-profits tax would lead to a leveling in the returns of various producers. On June 26, 1918, the acid producers met with the price-fixing committee to help determine upon a fixed price for their products. The negotiations resulted in the fixing of the price of 60 B. sul- phuric acid at the same figure which the Army and Navy were paying for their supply, namely, $18 per ton. 2 This price was con- siderably lower than the current market price and meant a reduc- tion of $7 per ton to the civilian consumer. With this price as a basis, the price for 66 B. was fixed at $28 per ton, a decrease of $2 from the former Government contract price. 3 Similarly, the price of 20 per cent oleum, a highly concentrated form of sulphuric acid, was fixed at $32 per ton, which was $3 less than the agreed price of late 1917. These prices were to remain in effect for 90 days, with the United States Government having first call upon the entire out- put of the country or any part thereof which it required. Even these prices, however, do not appear to have been as low as the cost of producing sulphuric acid seems to have warranted, and by the end of the summer of 1918 the chemical section of the War Industries Board asked for the further lowering of the agreed prices. These prices were to expire at the end of September, and on the 26th of that month the producers of sulphuric acid appeared before the price-fixing committee to ask for a continuation of the June 26th price. The price-fixing committee, on the recommenda- tion of the chemical section, refused this request and recommended instead a series of prices which ranged from $2 to $4 lower than 1 The problems which faced the chemical section of the War Industries Board when they attempted to determine upon the method of acid price fixing to be adopted, are fully described in the final reports of the acids and heavy chemicals section of the War Industries Board, 1910. 2 This pi-ice was supposed to yield a fair profit to the high-cost, producers; i. e., manu- fnrturers who used the chamber process. 3 This price was .$7 a ton lower than the figure currently quoted on the market and when compared to the spot quotations of two months previous meant a decrease of $17 per ton. The price for 66 B. acid was determined by adding to the price of th 60 acid a differential which covered both the large percentage of acidity in the higher strength acid and the cost of concentration. GOVERNMENT CONTROL OVER PRICES. 343 f those then prevailing. There was no longer the fear of losing the out- put of the high-cost producers. It was the opinion of those in charge of the military requirements that the extra supply secured for muni- tions by the curtailment of many nonessential industries and the output of the numerous new Government plants would be more than sufficient to offset any such loss. Moreover, the figures of the Fed- eral Trade Commission showed that the cost of producing 66 B. Sulphuric acid during the first six months of 1918 had varied from $15 to $16 per ton. 1 while the price fixed was $28 per ton. Indeed, the chemical section had recommended that in default of a lower price on sulphuric acid, " serious consideration should be given to the advisability of commandeering the output of the contact acid plants " before the end of the year. 2 The suggested price of the price- fixing committee was finally accepted by the acid industry, and $16 was agreed upon as the price of a ton of 60 B. sulphuric acid for the last quarter of 1918. 3 Nitric acid : Shortly after the determination of a Government price for sulphuric acid in the latter part of 1917, an agreement was reached with the producers of nitric acid, whereby they obligated themselves to supply the military and naval needs for 42 B. nitric acid at 7^ cents per pound. Toward the middle of 1918, however, the Ordnance Department began to experience difficulty in placing new orders at the agreed price. An investigation was therefore made into the costs of the concerns which were furnishing nitric acid supplies, and it was found that the approximate cost of manufacturing a pound of 1 The increasing costs of materials, labor, fuel, and transportation increased this cost considerably during the latter half of 1918. The prices recommended by the price-fixing committee, however, made a liberal allowance for this increase, for it was their desire to fix a price which would permit the acid manufacturers to use domestic pyrites, which meant a higher production cost than would have been the case had brimstone been used. Both raw materials were selling at almost equal prices, but most of the American plants were equipped for the use of brimstone rather than pyrites. The shipping shortage had virtually cut off the supply of Spanish pyrites, which had previously been the common raw material used in producing sulphuric acid, and various plants turned to the use of domestic brimstone. This led to a sudden growth in the consumption of the latter, and soon the demand threatened to exceed the possible production. Indeed, the reserve stocks wore drawn upon and a serious depletion was threatened. 2 Note memorandum from Mr. A. K. Brunker, chief of the acids and heavy chemicals section of the War Industries Board, to Mr. L. L. Summers, chief of the chemicals division. 8 A price of $25 per ton was fixed for 66 acid and $28 for 20 per cent oleum. In this connection it is interesting to note that had the war continued a vast economy in the factory cost of producing acids would have been obtained by the Government through the use of its new plants, which could have turned out 100 per cent H 2 SO 4 at $15 per ton, while the fixed price for 20 per cent oleum (104| per cent H 2 SO 4 )was $28 f. o. b. makers' works, or about $30 per ton laid down at consumers' works. The saving, there- fore, would have been approximately 50 per cent. This figure, however, does not take into consideration the cost of the Government plant, and thereby eliminates a large over- head charge. (Cf. memorandum by Mr. John M. Goetchius in the files of the War In- dustries Board.) 344 HISTORY OF PRICES DURING THE WAR. nitric acid was 7.14 cents. 1 This meant, then, that the average profit realized on the agreed Tj cents price was but 0.36 cent. It was immediately apparent that the price of nitric acid to the Government would have to be raised, and on July 26 the question was brought before the price fixing committee. It was necessary first to fix the price of sulphuric acid, however, since the price of nitric acid is in large part dependent upon- the latter. On the basis of the sulphuric acid price of $28 per ton 2 for 66 B., the price of 42 nitric acid was fixed at 8 cents per pound for all consumers, civilian and Governmental, effective July 1, 1918, for the third quar- ter of the year. This price was continued by agreement through the last quarter of 1918, and expired by limitation on December 31. Conclusion. With the cessation of hostilities came the end of the Governmental need for acids. The immediate fear of the trade was the potential competition of the newly completed Government plants. Moreover, there was the danger of a sudden fall in acid prices in con- sequence -of the cancellation of contracts and the desire to get rid of surplus stocks. Accordingly, the War Industries Board was asked to continue its supervision of the acid industry and to relieve the trade of " a share of its burden in adjusting inventories and heavy warring stocks." The trade also asked for the continuation of price fixing, at least through the first quarter of 1919. The price-fixing committee did not feel that conditions warranted any such action, and on December 3, 1918, they voted to discontinue the agreed prices of heavy acids after December 30, 1918. Sulphur and pyrites. Prior to 1917 approximately 60 per cent of 'the sulphuric acid consumed in the United States was made from Spanish ores. The shipping shortage of 1918, however, made neces- sary the curtailment of our pyrites receipts, and in March the War Trade Board issued an order restricting Spanish pyrites importa- tions to 125,000 tons for the six months following April 15. This amount, which was less than enough to fill our requirements, was distributed by the committee on foreign pyrites of the Chemical Alliance (Inc.), to the five importers who formerly controlled the 1 The cost of producing 95 pounds of nitric acid, as given in the report of the chemical section of the War Industries Board, was as follows : Raw materials : Nitrate of soda $4. 25 Sulphuric acid 1. 35 Total cost of raw materials 5. 60 Fair average manufacturing cost, including overhead 1. 18 Total cost of 95 pounds 6. 78 Cost of 1 pound of nitric acid .0714 2 On the basis of 100 pounds of H 2 SO 4 being required to produce 95 pounds of HNO 3 , it appears from the above cost figures that $27 rather than $28 (the fixed price June 26) was used as the cost of a ton of HoSO*. GOVERNMENT CONTROL OVER PRICES. 345 greater part of our foreign receipts, in proportion to the tonnage imported by each in 1917. The cutting off of our sulphur supplies had a considerable effect upon the American brimstone industry, and the demand for the domestic product grew by leaps and bounds. The large demand for sulphur supplies and the essential part which sulphuric acid played in the war program, led to a more or less strict control over the brimstone industry during the spring and early summer by the War Industries Board. There are in the United States two companies which produce 99 per cent of all the sulphur entering into domestic consumption, and the output of both was put under allocation by the War Industries Board. It appears, however, that one of these companies did not cooperate as actively and as wholeheartedly as was desired by the chemical section of the War Industries Board. The chemical au- thorities in Washington offered a resolution, therefore, which was passed by the War Industries Board and approved by the President on July 2, 1918, authorizing the virtual commandeering of the sul- phur-producing industry. The chief of the sulphur and pyrites sec- tion was appointed to represent the War Industries Board in con- trolling the production and distribution of sulphur materials, and he, together with a committee of the Chemical Alliance, adminis- tered the industry during the remainder of the war period. In the fall of 1917 the fertilizer committee of the Chemical Alliance had arranged for a price of $22 per long ton f. o. b. mines, for governmental purchases of sulphur, and this policy continued through the first half of 1918. The same price was maintained after the War Industries Board took control of the sulphur industry in July. Although there was at no time adopted any complete system of sulphur price agreements which applied to all purchasers, the control of supplies and the allocation thereof by the War Industries Board to essential consumers only, had the effect of a fixed price. Wood chemicals. It can hardly be said that wood chemicals were subject to price fixing in the accepted sense of the term, for the price agreements which were made relative to the products of wood dis- tillation applied in most instances only to sales to the United States Government and to the Allies. Yet the fact that prices were fixed to the military consumers had an important effect upon market prices in general, and for that reason the situation in the industry is worthy of consideration. A number of chemicals which are both the direct and indirect prod- ucts of wood distillation were vitally connected wjtb our military 346 HISTORY OF PRICES DURING THE WAR. program of 1917-18, 1 and it was thought necessary from the very beginning to avoid anj possible dissipation of the stocks in the hands of distillers. Wood chemicals were therefore placed under requisi- tion by an order of the Secretary of War on December 24, 1917, and from that date until December 14, 1918, the distribution of the entire American production of acetate of lime, acetone, ketone, and wood alcohol the output of some 100 concerns was administered by the wood chemical section of the War Industries Board. 2 It was necessary, however, to make some agreement upon prices to be paid these distillers, and before the year 1917 came to- a close the prices of all the important direct products of wood distillation to the United States Government and to the Allies were fixed. 3 The prices thus fixed were in most instances lower than the current market quotations, and since the supplies taken under control were allocated mainly to producers of more highly fabricated chemicals, the authorities in charge saw to it that the benefits secured from this lower price were likewise figured for the finished products, which, after all, were the most needed for the military program. Acetic acid: Large quantities of acetic acid were required by the Army authorities. The price of acetic acid current in early 1918 was based on a 6-cent cost for acetate of lime, which in December. 1917, had been lowered by the Government authorities to 4 cents per 1 This was especially true of certain of the wood distillates upon which the Signal Corps was dependent for the manufacture of cellulose, acetate, etc. 2 The original commandeering order extended only to July 1, 1918. It was later ex- tended for six months following July, the National Wood Chemical Association having agreed that the terms and conditions covering the original commandeering order would be a satisfactory basis for the second half of the year. 3 The prices for the various products were fixed f. o. b. shipping point as follows : Acetate of lime (cents per pound) 4 Crude wood alcohol (cents per gallon) 50 95 per cent wood alcohol (cents per gallon) 79 97 per cent wood alcohol (cents per gallon) 82 Pure methyl alcohol (cents per gallon) 86 Methyl acetone (cents per gallon) 86 Denaturing grade alcohol (cents per gallon) 79 Ethyl methyl ketone (cents per pound) 25J These prices continued in effect as long as the industry was under the control of the Government authorities. Due to demands for higher wages and due to the increases in freight rates, in the summer of 1918, the National Wood Chemical Association asked for a higher price for acetate of lime and crude alcohol. This request was presented to the price-fixing committee to be acted upon, but that body in turn passed it on to the Federal Trade Commission so that an investigation of costs might be made. No report on the situation had been received tip to the time of removing of control in December, and houce no action was ever taken by the price-fixing committee relative to increasing the price. The price fixed for refined wood alcohol did not, as was the case with the other wood chemicals taken over, go into effect immediately after requisitioning the industry; for there were on band Dec, 31, 1917, large stocks of alcohol which had been refined from crude bought at the November and December market price of 90 cents per gallon. It was doomed advisable out of justice to the trade, that such supplies be disposed of on the basis of 90 cent crude alcohol, and that the new priceMnentioned above go into pffect when the old stocks had been absorbed. GOVERNMENT CONTROL OVER PRICES. 347 pound. Accordingly, on February 13, 1018, the chemical section of the War Industries Board arranged to have % the price of acetic acid lowered so as to be equitable with the 4-cent basis for acetate of lime ; and after investigating the costs of producing acid, fixed the price of 100 per cent commercial acetic acid at 15| cents per pound. Al- though this price was almost 10 cents lower than the current quota- tions, it allowed for a fair margin of profit since it had been found that the average cost of production varied from 11.44 cents to 14.50 cents. There were on hand on February 1, however, large stocks of acetic acid produced from acetate of lime which had been purchased on the old price basis, and justice to the producers demanded that some provision be made for their disposal. An exception was there- fore made in the case of these supplies, and producers were allowed to dispose of them on a basis of 6-cent acetate of lime. Likewise, provision was made for the price of glacial acetic acid on the basis of the new price of acetate of lime and 19 cents was fixed as the figure at which this commodity was to be delivered, naked at plant, on Government purchases. Here, also, the fixed price was considerably lower than the current market price of from 31 to 40 cents. Indeed, glacial acid had always held a fictitious price in the trade, since the entire production was virtually under the control of three manufacturers. The 19 cent price represented a profit of 15 per cent under an economical process of manufacture, 1 and yet it appears that the manufacturers were dissatisfied with it. They felt that they were entitled to 25 cents a pound for their product. The chemical section of the War Industries Board refused this request and the producers were asked to accept the 19 cent price or submit detailed cost of production figures to substantiate the validity of their claim. The glacial acetic acid producers then ac- cepted 19 cents for their product as manufactured from materials on which the Government price had been fixed. Methyl acetate : The early part of 1918 witnessed a shortage of this chemical and it appeared that there would be difficulty in se- curing Army requirements. Moreover, there was at first little hope of increasing the supply, since the entire production was in the hands of a single concern. Finally, however, other firms were interested in the situation and agreed to undertake production at 21 cents per pound. This figure was based on the fixed price of methyl alcohol and acetate of lime and was adopted as the price for all Government orders. Formaldehyde: The production of formaldehyde in early 1918 was in the control of five concerns. A detailed investigation of their costs of production showed Chat they were manufacturing formalde- 1 Compare memorandum from L. L. Summers to the War Industries Board. F>1>. If 5, 1918. 348 HISTORY OF PRICES DURING THE WAR. hyde at a cost of 12^ to 134 cents. 1 The market price at times was around 22 cents per pound, while prices as high as 30 and 35 cents had been quoted. It was apparent that the situation warranted a revision of prices, and on February 12, at a meeting with the for- maldehyde manufacturers, a price of 15 \ cents per pound was fixed for formaldehyde f. o. b. shipping point, naked. This price, how- ever, was based on 86 cents pure methyl alcohol, which was the figure fixed for Government-controlled supplies. There were in the hands of the manufacturers large stocks which had been produced from alcohol that had cost $1.25, the old market price. An oppor- tunity to dispose of these stocks at the old prices was therefore given to the producers of formaldehyde, and not until June 12, 1917, did the agreed price of 15-| cents really become effective. 2 Toluol. In prewar times toluol played relatively a small part in the chemical consumption of the United States. Indeed, it was merely a by-product of coal-tar distillation, the production of which was little developed. The American consumption prior to 1914 was approximately 500,000 gallons annually. Toluol prices varied from 19 to 30 cents. The outbreak of the European war, however, with the consequent demand for explosives revolutionized the pro- duction of toluol, and overnight, as it were, this chemical assumed a position of utmost importance. The war had not yet entered its tenth month when the price of toluol jumped from 25 cents to $2.50 per gallon, and on the first anniversary of the declaration of hostili- ties, market quotations were in the vicinity of $3.50. At the end of 1915 the peak of this runaway market was reached when toluol was quoted at $4.50 This price continued through May, 1916. It was inevitable that such prices should lead to the development of facilities for the greater production of toluol, and by the middle of 1916 many new plants were reaching completion. The new potential supply led to a " softening " of the market and June witnessed a fall in prices, while the addition of still further productive facilities finally brought toluol prices down to $1.50 per gallon in November. It was at this point that the United States Ordnance Department entered the market after our declaration of war in 1917, and the price of $1.50 was agreed upon with the producers for our military sup- plies. However, it became evident that this price would not itself lead to the acquiring of a supply sufficiently large to meet all the necessary demands. Accordingly, the Ordnance Department set out to stimulate production, and, by placing large contracts, advancing 1 These costs were based on the Government fixed price of raw materials. 2 This 15^-cent price for formaldehyde was one of the few instances where the price of a requisitioned commodity was distinctly fixed for the United States Government, the Allies and the consuming public alike. Usually such fixed prices were made applicable to the United States Government and the Allies only. GOVERNMENT CONTROL OVER PRICES. 349 funds for the construction of private and Government plants, it increased our productive facilities so that our output for 1918 reached 13,553,860 gallons. This amount represented an increase of almost 3,000 per cent over the prewar average. A large part of this growth in production was achieved, however, only after the toluol industry had been commandeered in February, 1918, when there began a distribution of all toluol produced in the United States by a committee of representatives of the Army, Navy, and War Industries Board. The price paid for the toluol so com- mandeered was the agreed figure of $1.50 per gallon. On July 18, 1918, the price-fixing committee approved this price as applicable to all sales of toluol, civilian as well as military, and no shipments were allowed from any plant at a pi-ice in excess of $1.50 per gallon in tank cars and $1.55 per gallon in drums. In November, 1918, the control over the toluol industry was re- linquished. Immediately the market crashed, and December, 1918, witnessed sales of toluol at 25 cents a gallon, a price 83J- per cent lower than the quotations for the preceding month. Alkalies. The prices of alkalies were in -all cases fixed for Govern- ment purchases only and, with the possible exception of liquid chlorine, the nonmilitary use of which was virtually eliminated from June to November, 1918, 1 the prices so fixed were considerably lower than those on the open market. Virtually all agreements as to the price of the alkalies were made in early 1918 and continued through the year until November 25. Several agreed prices, however, such as those of carbon tetrachloride and caustic soda, remained effective until the end of the year. 1 A brief summary of the prices fixed on the various alkalies, such as bleaching powder, carbon tetrachloride, caustic soda, liquid chlorine, and soda ash will be found on p. 805. 6. THE WAR TRADE BOARD. The War Trade Board, charged with the responsibility for de- termining what commodities should be exported or imported, exer- cised less direct price control than any other war board. 1 It obviously had no concern with the great bulk of staples that were bought and sold for war uses within the country. The board, to be sure, had practically absolute power to permit or refuse licenses to export goods or import them, and sometimes used that weapon when requested to enforce price regulations upon exporters and importers. But the business of controlling the amounts of exports and imports w r as in itself a big one, and the War Trade Board usually left to other boards the setting of prices. That procedure seemed to it wise, in part because the War Industries Board, the Food Admin- istration, and the Fuel Administration were all regulating prices, but more especially because the tonnage and the enemy-trade prob- lem, rather than price factors, were the primary basis for determin- ing what goods to export or import. (i) THE CREATION OF THE WAR TRADE BOARD. The passing in turn of the espionage act and the tiading-with- the-enemy act gave the President wide powers over exports, imports, and enemy trade. The President, in full appreciation of the serious need for a control over all foreign trade, created the War Trade Board through an Executive order of October 12, 1917, and charged it with a responsibility for administering the controls authorized by these two laws. The new War Trade Board, by that order, super- seded the earlier Exports Administrative Board and the former Exports Council became the War Trade Council. 2 There was thus set up the final machinery for a control over all war trade. It is worthy of note at this point that the presidential proclamation of 1 A fuller account of the activities of the War Trade Board should be had from its own forthcoming official history. 2 The War Trade Board, made up of representatives from various important Government bureaus, had the following membership at the signing of the armistice : Vance McCor- mick, chairman, and representative of the Secretary of State ; Thomas L. Chadbourne. jr., counselor, and representative of the Secretary of State ; Albert Strauss, representa- tive of the Secretary of the Treasury ; Alonzo E. Taylor, representative of the Secretary of Agriculture ; Clarence M. Woolley, representative of the Secretary of Commerce ; Beaver White, representative of the Food Administration ; and Edwin F. Gay, representa- tive of the United States Shipping Board. 350 GOVERNMENT CONTROL OVER PRICES. 351 November 28, 1917, vitally enlarged the scope of War Trade Board duties by increasing the list of commodities requiring license for export, and by the initial making of a similar list for imports. The turning of this country from a neutral into an ally involved the laying down of very definite policies with respect to our foreign trade. It meant especially the conserving of our own supplies for our war machinery and that of our Allies, the cutting off of all direct or indirect trade with the enemy, and the conservation of tonnage for war-making uses. The working out of these general policies by the War Trade Board gave rise to four primary functions, around which virtually the whole work of the board turned: The commercial isolation of the enemy, the financial isolation of the enemy, the obtaining of essential supplies and controlling prices, and the conservation of ocean tonnage. 1 (2) ALL EXPORTS AND IMPORTS BROUGHT UNDER LICENSE CONTROL. The actions of the War Trade Board concern price control only so far as they pertain to the exercise of regulation over prices, direct enough to lay hands upon. The extension of control over exports and imports ushered in important influences upon prices. The control of exports, begun relatively early, and later that of imports were extended item by item until the two famous proclamations of February 14, 1918, brought under license control all exports and imports. 2 THE CONTROL OVER EXPORTS. It is conceivable that the restraint upon the exportation of certain commodities that was imposed by the requirement of licenses for exports sometimes had a more vital indirect effect upon the price level than the corresponding restraint of imports. The effect pre- sumably would be most felt in the prices of those goods which were not only brought under license control, but were actually denied exportation and thrown as a consequence into the home market. In a general way the actual holding of commodities from foreign sale, in so far as it increases the supply at home, would tend to lower or 1 This division of functions was selected by Henry F. Walradt and B. D. Mudgett as the basis for their history of the War Trade Board. 2 The War Trade Board issued at the same time a statement in which it said in part : " The promulgation of these two proclamations did not mean an embargo on exports or a prohibition of imports, but placed in the hands of the President the power to regulate, which be will exercise through the War Trade Board and the Treasury Department. This power will be exercised with the single purpose of winning the war, and every effort will be made to avoid unnecessary interference with our foreign trade and to impose upon our exporters and importers no restrictions except those involved in the accomplish- ment of definite and necessary objects." 352 HISTORY OF PRICES DURING THE WAR. stabilize market prices. But there is no measure of the effect of these export rulings that is accurate or even approximate. 1 THE CONSERVATION LIST. The commodities for which the War Trade Board required licenses prior to their exportation were said to have been put upon the con- servation list. This conservation list, which began with a very few important raw materials on July 9, 1917, was extended from time to time until the whole lot of exports were entered upon it by Febru- ary 14, 1918, 2 and by the signing of the armistice it contained nine hundred odd commodities. 3 These commodities, which contained representatives virtually from our whole range of production, were all actually restricted from export trade under license control. THE CONTROL OVER IMPORTS. The control over imports, whether of more or less influence upon the price level, afforded more opportunity for price regulation. The War Trade Board, which was not a price-regulating body and which interfered with prices only when pressed to it by other bodies, was seldom under necessity for stipulating prices for exports, since the regulation of domestic commodities was exercised by the War In- dustries Board, the Food Administration, and the Fuel Administra- tion. But frequently these very bodies found themselves under pe- culiar administrative difficulties in the price control of foreign goods imported into the country, and appealed to the War Trade Board to stipulate stabilization as a condition of their entrance into Ameri- can markets. THE RESTRICTED LIST. This inquiry does not go into the ramifications of import control, except as prompted by odd instances where the War Trade Board stipulated price regulation as a condition for the granting of an import license. The board, in order to interfere as little as possible with business as constituted, administered these import controls largely through trade organizations. The latter, in cooperation with the War. Trade Board, acted as consignees of various import com- modities to keep themselves informed for the benefit of the board 1 The following instance of an exercise of price control, in connection with, the export license power, is perhaps more interesting than widely significant. On and after July 20, 1918, no license will be issued authorizing the exportation of gold jewelry, gold watches, gold plate, or other manufactures of gold unless evidence satisfactory to the War Trade Board is submitted showing that the f. o. b. selling price of the articles to be exported is not less than three times the value of the fine gold contained in such articles. 2 The proclamation of Feb. 14, 1918, became effective Feb. 16. 8 Consult the Export Conservation List issued by the War Trade Board, effective Oct. 15, 1918, and that effective Dec. 6, 1918. GOVERNMENT CONTROL OVER PRICES. 353 as to the use and disposition of the import commodities, and the observance by the importers of any guaranty or agreement given in connection therewith; to prevent hoarding and speculation, and to keep full and complete records of the commodities and their dis- tribution 1 . The extension of import control was made by the plac- ing gradually of certain commodities upon the so-called restricted list. That list, the initial issue of which appeared November 28, 1917, was made to include all imports by February 14, 1918, and thus contained more than 140 classes of commodities by the signing of the armistice. (3) THE EXERCISE OF PRICE CONTROL BY USES OF THE LICENSING POWER. There lay in the very restriction of exports and imports, even where a direct price control was not exercised specifically, a potent though not measurable influence upon prices. The War Trade Board exercised infinitely more export and import restrictions than the few in which it avowed a direct interest in the price factor. But in the main an enormous restriction upon export trade in particular goods for any reason would tend to stabilize domestic prices, and a corresponding restriction upon imports would tend to disturb the prices of available stocks. The great body of export-conservation rulings, it would be supposed, worked for lower, and that of import- restriction rulings for higher prices. But this very considerable in- direct influence which the War Trade Board rulings must have had upon prices, important though it be, leads too far into speculation for its adequate analysis in a record of fact. Quite apart from any indirect effects upon prices which may have resulted from export or import restrictions as such, there were sev- eral steps taken by the War Trade Board to control prices. Those instances came in the form of conditions which the board set up as prerequisite to the issuing of licenses for the importation of a few of the commodities appearing on the restricted list. Even those exceptional cases, however, were seldom highly developed controls such as were issued and administered by the price-fixing boards. They were, for the most part, blanket provisions simply looking to the stabilization of the prices for imported goods in the domestic markets. The War Trade Board, at requests from other war boards, undertook to provide in part for the stabilization of certain prices (asbestos, pig tin, chloride of tin, tin ore, wool, pickled skins, varnish gums, sugar, castor oil, castor beans, hides and skins, leather, tanned skins, silk noils, silk-noil yarns, garnetted stock and silk waste, 1 Rules and regulations, War Trade Board, No. 2, May, 1918, p. G4. 125547 20 23 354 HISTOBY OF PRICES DURING THE WAR. manila fiber, crude rubber, coffee, Xew Zealand fiber, copra, tin, burlap, burlap bags, and jute), either by requiring the importer to give a guaranty, an option, both a guaranty and tin option, per- mitting importation, of substitutes, restriction of certain imports that would compete with domestic stocks, or by imposing an em- bargo. 1 One method by which the War Trade Board took precaution that goods coming in under authority of its licenses should not be hoarded for speculation, was to require a guaranty from the importer that he sell his goods not above the maximum set by any war board. Appli- cants for sugar or wheat-flour licenses were required to guarantee not to sell their sugar or flour to any party at any price without first securing the approval of the Food Administration. The board, by a resolution of August 22, 1918, declared that no licenses to import pickled skins would be issued unless the applicant agreed not to sell the skins at a price in excess of the prices established by the price- fixing committee. Importers of asbestos, pig tin, chloride of tin, and tin ore were required to guarantee that they would use these imports " for our own manufacturing use and not for hoarding or speculative purposes." A ruling passed late in September, 1918, limiting the amount of varnish gum to be imported, stipulated that the amounts allowed to enter should be allocated and the price con- trolled by the War Industries Board. Still another and earlier ruling, May 27, restricted the amount of asphalt allowed to enter and required the importers to guarantee to sell at a price to be deter- mined by the War Industries Board. The most common requirement which the War Trade Board im- posed as a condition for the granting of an import license, designed purely to regulate prices, was the agreement of the importer to give the Government an option upon the imported goods. The sugar guaranty, indeed, early in December, 1917. had contained an option clause by which the importer promised to sell his sugar, if so re- quested, to the international sugar committee at such price as it might prescribe. The well-known early wool option was made on December 15, 1917, and required all importers of foreign wool to give the Government, as a condition of their license, an option to purchase all or any of the wool covered by his import license, at a price equivalent to 5 per cent less than the market price prevailing July 30, 1917. 2 This option was to hold 10 days after the entry of the wool at the customhouse, but the Government was given the right to purchase at that price so long as any part of the shipment remained 1 Mr. Henry F. Walradt, after studying carefully the minutes and other records of the War Trade Board, worked out the above classification of controls over prices. 2 A full statement of the regulations governing this important wool option may be found in the War Trade Board Journal of Jan. 8, 1918, p. 6. GOVERNMENT CONTROL OVER PRICES. 355 unsold. It became soon necessary, in order to expedite the adminis- tration of the wool option, to enforce it through the medium of the Textile Alliance. The importer then was required to indorse his bill of lading to this private organization, as a condition of the license. 1 Similar options, granting the Government the right to purchase the goods at a given price, were required as a condition of the licenses allowing the importation of castor oil, castor beans, hides and skins, leather, tanned skins, leather manufactures, platinum, indium, pal- ladium, quebracho extract, silk noils, garnetted stock, and silk waste. The price control that was exercised over crude rubber combined the guaranty and option feature in a unique way. The Rubber Asso- ciation of America, to whom the War Trade Board officially asked all importers to indorse their bills of lading, was required not to release any shipment of rubber until each applicant had signed an option allowing the Government to purchase the stock imported at a certain price, and also a guaranty that, should the Government not take advantage of the option, the importer would not sell the imported rubber at a price higher than that provided by the option. 2 The diverse ways by which the War Trade Board exercised its licensing power to control prices was strikingly illustrated by its resolution of May 23, 1918, that no licenses should be granted for the importation of coffee which was carried at a freight rate greater than that established by the United States Shipping Board. 3 There is on record one case where the War Trade Board assisted a Government board to hold down the prices of domestic goods by 1 Mr. Ilenry F. Walradt, in summary of the results of this wool option for the official history record of the War Trade Board says : ' This policy of obtaining options on wool imports saved the United States over $33,000,000. The fact that the wool importers were required to give this option made it unprofitable for them to buy foreign wool at the prices which were prevailing at the close of the year 1917 ; consequently the foreign growers were forced to lower their prices. From Dec. 15, 1917, when the option agreement was put into force, until Mar. 1, 1918, the average price of imported wool of the grades the United States Government was buying, fell from about GG cents to somewhat less than 58 cents a pound, a drop of about 81 cents per pound. Purchases made after Dec. ID. 1917, did not begin to arrive in this country in quantity until February, 191S. From Feb. 1, 1918, until Dec. 31, 1918, there were 405,624,700 pounds of wool imported into the United States. If it is assumed that SJ cents was saved on each pound, the total amount saved by this policy was $33,464,038." 2 One of the most interesting instances of price control throughout the war is that set forth by the War Trade Board pertaining to crude rubber, in a letter to the Rub- ber Association of America on Apr. 30, 1918. That letter was published in full in the War Trade Board Journal for June, 1918, p. 17. 8 The purpose of this ruling was to aid in enforcement of the rates which had been established on Nov. 21, 1917, by the chartering committee of the Shipping Board. It appeared that these rates were being disregarded. In fact at the time this ruling was passed the coffee en route to the United States was being transported at rateg which caused the total freight charges to be hundreds of thousands of dollars in. excess of the lawful amount. The profiteering in freight rates on coffee had caused an unstable condition in the coffee market, and a wide variation in the cost of coffee to different buyers. Accordingly, all licenses for the importation of coffee were held up until the importers presented a sworn statement that the rate of freight paid for the transportation of the coffee was not in excess of the rate established by the Ship- ping Board, (Report of the War Trade Board.) 356 HISTORY OF PRICES DURING THE WAR. allowing the unrestricted entrance of a substitute. The Food Admin- istration attempted during the war to prevent rises in the price of cot- tonseed oil on domestic markets. Copra, which is used to manufac- ture coconut oil, has a vital relation to the prices of cottonseed oil. The War Trade Board, in order to assist in the stabilization of cotton-^ seed oil prices, lifted its restrictions upon the importation of copra on July 12, 1918. There has been, since the signing of the armistice and contrary to the prevailing policies previous, occasion to sustain the prices of cer- tain materials which were stimulated in production during the war. The War Trade Board, in one conspicuous instance, attempted to sustain a domestic price by restricting the importation of competing goods. A considerable importation of pig tin took place during the war at high prices for the meeting of Government orders. That source of demand was cut suddenly short by the cessation of hostili- ties, and pig tin prices began to break. The War Trade Board, in order to protect from loss buyers who in good faith had bought large stocks for the Government, left standing its restriction upon the importation of pig tin. 1 One of the more serious of the problems confronting the Food Administration and the War Industries Board during the fall of 1918 was the rise in burlap and burlap bags. The Government had important uses for these materials as trench bags and packing cases. The high prices for bags frequently made necessary the shipment of potatoes and wheat in bulk and cargo for overseas in wooden cases. The British Government controlled its own purchase prices for bur- 1 Mr. Walradt makes the following summary of the action of the War Trade Board with respect to pig tin after the signing of the armistice : " In order to protect the buyers who had bought at high prices from the impending loss, the War Trade Board maintained the restriction upon the importation of pig tin which it had placed by a resolution passed on Oct. 4, 1918. This resolution re- voked all outstanding licenses for the importation of pig tin, tin ore, and tin, concen- trates, and any chemical extracted therefrom to be shipped after Oct. 20, 1918. The resolution also provided that henceforth no licenses were to be issued for the importa- tion of these commodities excepting for shipments consigned to the United States Steel Products Co. On Nov. 1 this resolution was modified to permit the importation of these commodities excepting pig iin, provided the bills of lading were indorsed to the American Iron and Steel Institute. Pig tin bought Sept. 30, however, could still be imported only by the United States Steel Products Co. The original resolution had been passed at the request of the inter-allied tin executive in London to effect an equitable distribution of pig tin. With the signing of the armistice the value of this resolution changed. The United States Steel Products Co. alone was able to import pig tin and this company already had more pig tin than it could sell without loss. The market price for tin outside of the United States had broken and if pig iron could have been imported freely, the stocks of pig tin already in the United States would have fallen greatly in value. As it was, the fact that tin ore was permitted to enter gave the smelters an opportunity to import the ore, smelt it, and put the pig tin on the mar- ket at a few cents below the price at which pig tin was being held by the United States Steel Products. Co. This practice caused the War Trade Board, on Jan. 30, 1919, to pass a resolution whereby no import licenses were to be issued for any metal con- taining more than 20 per cent of tin. This measure is in harmony with the at- tempt which was being made to keep up the price of pig tin to prevent large losses to those importers who previous to the cessation of hostilities had purchased large stocks of pig tin for Government purposes." GOVERNMENT CONTROL OVER PRICES. 357 lap at Calcutta, the primary market, but took no effective hand to prevent the Calcutta merchants from exacting enormous prices from American importers. The War Trade Board accordingly, on October 4, 1918, passed a resolution prohibiting the licensing of the importa- tion of burlap, burlap bags, or jute without the approval of the Food Administration and the War Industries Board. This virtual em- bargo broke the speculation of Calcutta, it would seem, for the base price at that market dropped from 16.17 cents per pound on October 2 to 9.79 cents on December 28, 1918. RUBBER. The United States in the early years of the World War was de- pendent in large part upon the various warring countries or their colonies for many essential raw materials. One of the most important of these was rubber, a considerable portion of which came from the English and Dutch possessions in the Far East. The British embargo of 1914.. When war first broke out in August, 1914, tires were the only important rubber products which were made contraband. In the following month the British Gov- ernment added crude rubber to the list of contraband and decreed that rubber could be exported only to certain ports of Europe, namely, those of France, Belgium, Eussia, Spain, and Portugal. In October the French Government followed suit and declared rubber absolute contraband. But Great Britain, late in October, issued an order forbidding shipments from those plantations in the Far East which were under her control to any port other than London, thereby making virtually all plantation rubber contraband. Even this latter decree, however, did not seem to bring the desired results, and finally during the last days of October, 1914, the British Government forbade all exports of crude rubber from any English port. 1 As a result of these restrictions, rubber prices soared, and it was said that the cost of the embargo to the industry was $250,000 a day. 2 After several advances to the British Government the embargo was partially lifted, and in January, 1915, shipments of rubber to the United States were again permitted, but not without restriction. First, no rubber was shipped direct to any American consumer. It was consigned directly to the British consul general in New York, and he alone had authority to release it. Secondly, every American buyer before securing the release of any rubber was compelled to 1 The reason for these actions on the part of Great Britain is given in the following extract taken from the India Rubber World for Nov. 1, 1914 : " It was given out that the requirements of the allied armies would be sufficient to absorb practically the whole plantation production for the next six months. It was stated that the British and French military authorities would need a new equipment of tires for the quarter million motor transport vehicles then being used in the war, and that there would be great demand for waterproof ground sheets for the troops, for rubber boots, to be used in digging trenches, for all kinds of surgical appliances, 2 India Rubber World, January, 1915. 358 HISTORY OF PRICES DURING THE WAR. guarantee that lie would not reexport except under specified restric- tions and would not use it in trading with the enemy. This rule not only applied to the particular rubber which he wanted to have released, but to all the rubber, crude or manufactured, which he had on hand or might dispose of during the war. This was the state of affairs as regards the rubber importer at the entrance of the United States into the conflict. Rubber had been coin- ing into the country in tremendous quantities during 1916. and 1917 presaged the largest imports in our history. 1 The licensing of rubier imports. On November 28, 1917, rubber was put on the restricted list by presidential proclamation and all imports were forbidden except under license. Thus the control of American imports was shifted from the British consul general at New York to the War Trade Board. The Rubber Association of America was virtually appointed the agent of the United States Government and undertook to collect information relative to the rubber industry for the War Trade Board; to act as consignee for rubber shipped to the United States; to release rubber to importers under instructions from the War Trade Board; to obtain from im- porters and manufacturers guarantees that they would not sell any rubber, directly or indirectly, to any country at war with the United States, or to any person, unless satisfied that there was no intention of exporting without an export license; to keep informed for the benefit of the War Trade Board as to the use and disposition of the imported rubber; and to keep full records of all importations of rubber. No restrictions were placed on the amount of rubber that could be imported, and throughout the first few months of the year large quantities of rubber came into the country. But large imports of rubber meant large amounts of shipping space and long hauls, since the greater portion of our rubber sup- plies come from the Far East and Brazil. The restriction of rubber imports and price fixing. The military requirements of the country demanded a conservation of tonnage, however, and on May 7, 1918, after conference with representatives of the War Industries Board, the United States Shipping Board, and the rubber industry, the War Trade Board restricted the quantity of rubber to be licensed for import during the three-month period, May, June, and July, to 25,000 long tons. This was at the rate of 100,000 tons per year, or about two-thirds of the 1917 importation of 157, 000 tons. 2 It was naturally expected that this cutting off of 1 Indeed, our rubber imports for 1917 proved to be over 167,000 tons, as against 115,000 tons, in 1916 and 103,000 tons in 1915. See War Industries Board Bulletin, " Prices of Rubber and Rubber Products," by Isador Lubin. 2 Subsequently, the War Trade Board virtually increased the amount to be licensed for import to 28,000 long tons (green basis) per quarter by ruling that the Brazilian imports should be allocated on a dry basis which allowed approximately 12 per cent for water content. GOVERNMENT CONTROL OVER PRICES. 359 an appreciable part of our supply would start rubber prices up- ward, and, indeed, a speculative market did develop as soon as word was received that the restriction of the importation of rubber was contemplated. 1 As a preliminary step therefore to the restrictions of rubber im- ports, the War Trade Board inaugurated an option system whereby it regulated rubber prices from the time of import until passing into the hands of the manufacturer. A maximum price, based on quota- tions current in the trade when restrictions were first considered, was fixed for the various types of crude rubber, and the possibilities of profiteering and speculation were limited. These prices, fixed on May 1, c. i.^FrNejw York were as follows : Cents per pound. 2 Para Upriver Fine 68 Plantation : First Latex Crpe 63 Smoked sheets (standard) 62 All importers before securing an import license were compelled to give to the United States Government an option on " all or any part of the crude rubber " covered by the license, as well as on all other crude rubber at that time or thereafter covered or controlled by the applicant until sold and delivered to a manufacturer. 3 In the event of the exercise of this option the prices to be paid by the Government were to be those mentioned above. The results of the embargo. It appears that this fixing of rubber prices was an unnecessary expedient, however, since the curtailment of imports had little effect upon the rubber supply of the country. For, first, the stocks on hand on April 1, were the largest in the history of the industry, 4 and, second, our imports during May, June, and July were much larger than the specified 25,000 tons. The pre- liminary negotiations leading to the cutting of imports had been held in April, and the anticipation by the trade of some form of re- strictions stimulated buying. Large contracts were therefore entered into for the immediate shipment of rubber to the United States in order that stocks might be accumulated before the expected restric- tions went into effect. The restrictions of May 8 did not apply to shipments which had left foreign ports prior to that date, and since the time required for transporting rubber from primary markets to 1 Compare chart of crude rubber prices in " Prices of Rubber and Rubber Products," as above. 2 Tbese prices were supplemented on May 14 by maximum prices for other grades of crude rubber ; while on May 29, June 13, July 2, and July G, respectively, still further additions were made. Applicants for import licenses had to guarantee that they would not sell rubber covered by their license to or for any person at a price higher than the fixed prices. 8 Compare letter from the War Trade Board to the Rubber Association of America on Apr. 30, 1918, in the War Trade Board Journal of June, 1918. * Compare statement by Bertram G. Work, chairman of the War Service Committee of the rubber industry in the India Rubber World, June, 1918. 360 HISTORY OF PRICES DURING THE WAR. the United States was considerable the actual imports during the second quarter of 1918 were much greater than the specified 25,000 tons. Indeed, 55,000 tons of rubber entered American ports during May, June, and July. Finally, the curtailment of the American receipts was immediately felt in the primary markets, where already the decreased consump- tion of other nations had had its effects. The further elimination of means of disposal naturally led to keen competition among the hold- ers of the existing large stocks and prices tended to fall even below the existing low level. The result then was that allocated Upriver Para rubber sold in September for 58 cents per pound and Plantation First Latex Crepe sold for 37 cent's per pound 1 as compared with the fixed maxima respectively of 68 cents and 63 cents. On December 12, restrictions as to the amount of rubber to be licensed for import from overseas were withdrawn as were also the maximum price and allocation features of the import regulations. SILK. The second presidential proclamation on imports, issued Febru- ary 14, 1918, included silk among the commodities for which import licenses were to be required. In order to discourage imports for speculative purposes, the War Trade Board, on September 3, 1918, revoked all outstanding licenses for the importation of silk noils, silk noil yarn, garnetted stock, silk waste, spun silk, and pierced cocoons for shipment after Sep- tember 10. The United States Government was to have an option to purchase all silk of the above varieties for which import licenses were issued after September 3, at a price 2 per cent above the cost at the foreign ports of shipment, including all charges except prepaid freight and prepaid insurance. 1 This variation in the price of the two types of rubber is to be explained by changes which were made in the import program in August and September. The War Trade Board had at first failed to make allowance for the large amount of water in Brazilian rubber and the high price of this type of rubber resulted in the American consumer giving preference to rubber from the Far East, and imports from Brazil decreased steadily from June to August. The former factor was eliminated about a month after import restrictions became effective, and in order to further stimulate the im- portation of Brazilian rubber the War Trade Board ruled in early August that during the months of August and September rubber importers should replace 50 per cent of the rubber utilized in Government contracts by Brazilian rubber. The result of these pro- visions for stimulating imports became apparent in September, and imports from Brazil increased 54 per cent over the month of August. The results attained, however, were not up to expectations, and on Sept. 26, the ruling relative to the use of Brazilian rubber was supplanted by ail order of the War Trade Board requiring that at least one-fourth of the total amount of imports authorized should be licensed from South and Central America. With the production of the Plantations over six times as large as that of South America, these regulations led to a heavy oversupply of the Planta- tion variety of rubber and keener bidding at Plantation markets for the right to ship to American ports. It should be added also that the maintenance of relatively normal values by Brazilian rubber was in part to be accounted for by the stabilizing control over its price by the Bank of Brazil. 7. THE WAR DEPARTMENT. The War Department expended $14,244,061,000 from the declara- tion of war in this country to April 30, 1919, and was given a hand in the general price-fixing program by reason of its interest in Army purchases. 1 The large purchases which the War Department began making soon after April 6, 1917, indeed, and the erratic behavior of the market, were among the main causes for the control over raw- material prices by the Government. The quantity of goods required to feed and clothe the Army was great enough vitally to affect market quotations. The statistics branch of the General Staff has estimated the total purchase by the Army for subsistence from April 2, 1917, to May 3, 1919, as $1,093, 636,623. 2 The total Army purchases for clothing from the beginning of war to May 31, 1919 amounted to $1,212,066,018, and those for equipage to $254,721,400. There follows an itemized list of the clothing commodities purchased by the War Department from the beginning of war to May 31, 1919, and the unit price for each commodity, as given by the statistics branch of the General Staff. A similarly itemized list for the equipage purchased follows. SUBSISTENCE SHIPPED TO AMERICAN EXPEDITIONARY FORCES APR. 1, 1917, TO DEC. 1, 1918. Item. Quantity (pounds unless otherwise specified). Unit price. Total cost. Bacon 147,956,223 $0. 44 $65, 722, 154 250, 584, 692 .23 58, 536, 584 Beef tinned . , 140,843,476 .32 45,717,792 Flour 542, 874, 797 .05 28, 500, 927 27. 449, 645 .67 18,407,732 Cigarettes each. . 2, 439, 260, 097 .0-06 15,123,412 Reserve rations each 15,623,150 .76 11,875,594 106,169,345 .07 7,888,382 Cigars each 160, 180, 225 .05 7, 768, 741 Butter and substitutes. 16, 200, 799 .40 6,433,337 100 081 789 .06 6. 024. 924 Beans, baked 54,731,786 .10 5.226,886 j&ni 26, 029, 028 .19 4,877,840 Colfee 39 185,167 . 12 A , 729, 650 Milk . evanorated . . . 42, 922, 743 .11 4,498,303 1 See " The War with Germany," prepared under the direction of Coi. Leonard P. Ayers, of the statistics branch of the General Staff, for an itemizatiou of these ex- penditures. 2 There is not available an itemized list of the commodities that made up this total expenditure fo-r foods, and their unit costs. There follows, however, a table showing the individual commodities shipped to the American Expeditionary Forces from Apr. 1, 1917, to Dec. 1, 1918, as reported by the statistics branch of the General Staff, and the unit price of each. Later figures given out by the Staff, which do not have the advantage of carrying unit costs, show that the total expenditures for overseas sub- sistence from the beginning of war to May 1, 1919, was $616,134,000. fclSL 361 362 HISTORY OF PRICES DURING THE WAR. SUBSISTENCE SHIPPED TO AMERICAN EXPEDITIONARY FORCES APR. 1, 1917, TO DEC. 1, 1918 Continued. Item. Quantity (pounds unless otherwise specified). Unit. price. Total cost. Fish salmon 30 961 801 14 4 408 960 Beans, dry 39 646 677 .11 4* 297* 700 Vegetables dehydrated 12 971 935 30 3*924 01 Lard and substitutes 15 781 228 .25 3 861 666 Syrup, gallons. . . 6 171 80S .59 3 654 945 Hard bread 27 978 830 .13 3 614 865 Candy. . 7 895 053 .28 2 191 667 Rice., 25. 466. 547 .08 2' 029' 684 Prunes . . 15 748 931 .10 1 630 014 Fruit evaporated 8 976 848 13 1 191 228 Cornmeal 16' 074' 687 .05 736 221 Pickles, gallons 1.333,210 .47 625 809 Ham 1 772 917 .34 610 238 Corn, sweet 7. 639, 786 .06 431 648 Emergency rations, each. . . 765 400 .53 401 835 Vinegar gallons 1 319 877 .28 367 586 Oatmeal 4 661 732 .06 296 020 Peas green 4 689 425 06 262 608 Peaches, canned . 2 415 182 .11 255' 043 Hominy 1,826,269 .09 155, 963 Beans, stringless.. 2, 148, 759 .06 127 207 Salt 13 707 276 .009 120 624 Pears, canned 1,150,120 .10 117*542 Apples canned 1 831 096 .06 117 007 Cheese 314, 203 .28 87' 191 Pineapples, canned 899 25S .09 82 012 Apricots, canned 863,415 .09 78 743 Cherries, canned. 423 444 .12 51 703 Total 327 059 997 CLOTHING PURCHASED BY THE ARMY DURING THE WAR. Breeches and trousers, wool 21,768,220 14,154,000 2,964,932 10,867,000 5,741,012 8,872,000 10,942,000 13,870,000 41,089,000 42,468,360 8,220,000 12,494,000 8,315,000 26,547,817 18,769,648 11,847,000 20,210,000 58,712,000 61,243,000 11,561,505 48,110,000 36,931,000 16,771,000 8,481,000 ' 6,235,000 2,236,000 635,000 7,254,000 2,632,000 5,007,000 9,357,000 17,283,000 9,927,000 873,000 868,000 1,220,000 S6.70 1.69 5.08 .23 .88 1.96 1.55 9.79 .50 2.00 2.00 .92 12.17 3.50 7.45 4.65 .16 .55 .35 1.55 .60 2.00 2.20 5.21 .24 7.50 14.00 1.07 .48 .46 1.16 .65 .25 2.52 2.58 .75 5145,847,074 23,920,260 15,061,854 2,499,410 5,052,090 17,389,120 16,960,100 135,787,300 20,544,500 84,936,720 16,440,000 11,494,480 101,193,550 92,917,359 139,833,878 55,088,550 3,233,600 32,291,600 21,435,050 17,920,333 28,866,000 73,862,000 3t>, 896, 200 44,186,010 1,496,400 16,770,000 8,890,000 7,761,780 1,263,360 2,303,220 10,854,120 11,233,950 2,481,750 2,199,960 2,239,440 915,000 Breeches, cotton Boots, rubber Belts, waist . . . Caps, overseas Coats, cotton Coats, denim Coats, wool.. Drawers summer Drawers, winter Hats, service Leggins, canvas Overcoats Shirts, flannel Shoes/field Shoes, marching Stockings, cot ton Stockings^ wool heavy Stockings, wool, light Trousers denim Undershirts, summer ... . Undershirts winter Puttees . . Raincoats Hats, denim ... Jerkins Mackinaws Gloves, leather Gloves canton flannel, Ip . Mittens, canton flannel Mittens leather Gloves wool Gloves jersey knit Oilskin coats Oilskin trousers Oilskin hats Total 1,212,066,018 Purchased. Unit price. Approximate value. GOVER^MEXT CONTROL OVER PRICES. 363 EQUIPAGE PURCHASED BY THE ARMY DURING THE WAR. Purchased. Unit prica. Approximate value. Barracks bags ! 8, 982, 000 $0.85 $7,634,700 Bedsocks. ... . 9,581,000 1 10 10 539 100 Blankets com 6 00 Blankets, 3 pounds 14,167,000 6.50 92,085 500 Blankets, 4 pounds 7, 106, 000 8 00 56 848 000 Tents, hospital, drop : 8,090 92.18 745,736 Tents, hospital, ward. . . 21,142 227 19 4 803 251 Tents, pyramidal 500, 341 76. 73 38,391,165 Tents, shelter, halves.. ' 7,499,437 2 62 19,648,525 Tents storage 21,108 136 11 2 873 010 Tents, wall, large 71,705 80.08 5,742,136 Tents, wall, small . ; 76, 178 43 71 3,329 740 Latrine screeen ' 64,114 18.73 1,200,855 Paulins, large 145, 420 72.69 10,570,580 Paulins, extra large ' 12,511 Paiilins, small - 13, R47 22.65 309,104 Total . 254.721.400 There follows a summary of the value of overseas shipments of quartermaster material in the main from April 6, 1917, to December 1, 1918, as compiled by the statistics branch of the General Staff. Oversea* shipments. Clothing, equipage, etc., shipped with troops $326,000.000 Subsistence 327, 059, 997 Clothing __ 269, 451, 890 Forage 21 ,106, 138 Remount $15, 219, 878 Fuel 12, 608, 353 General supplies 11,807, 118 Horse-drawn vehicles 7, 247, 522 Harness 4, 957, 993 (i) THE ARMY REPRESENTED ON THE PRICE-FIXING COMMITTEE. Virtually every instance of price fixing that had been undertaken by the War Industries Board prior to March, 1918, had its incep- tion in the fact of large Government purchases which needed pro- tection against unstable markets. It was not surprising, therefore, that when the price-fixing committee was created there should have been appointed to it a representative of the Army, despite the fact that the President in his letter had not so provided. 1 It was the duty of the representative of the War Department to present to the com- mittee always the Army point of view, and to carry back to the Army that of the committee. 1 The first representative of the Army upon the price-fixing committee was Brig. Gen. Palmer E. Pierce, but Lieut. Col. R. H. Montgomery served in that capacity from May 29, 1918 (S. O. 126), until the committee resigned. 364 HISTORY OF PRICES DURING THE WAR. (2) THE PRICE-FIXING SECTION. As time went on it became necessary for the Army to determine fair prices for its own purchases upon commodities that had not been fixed by the price-fixing committee. It frequently had occa- sion, for example, to determine differentials from the base prices set by the price-fixing committee and less important base prices. A new order was accordingly issued by the War Department September 4, 1918 (S. C. No. 88), creating a price-fixing section within the Army, whose chief was to be the representative of the Army on the price- fixing committee, and with the following duties : To conduct inquiries as to fair prices and departure from sucii prices, to advise agencies of the War Department in relation thereto, and to represent the War Department on the price-fixing committee of the War Industries Board. (3) COMMANDEERING AND REQUISITIONING. It was not always possible satisfactorily to secure commodity re- quirements from the market at prices set by the price-fixing commit- tee or the price-fixing section, and the Army resorted frequently to the practice of commandeering and requisitioning. The comman- deer orders were compulsory orders to manufacture certain products, and the requisition orders were those taking over properties or stocks for use by the Government. 1 A considerable confusion arose late in 1917 and early in 1918 by reason of the decentralization of seizure orders, and on March 22, 1918 (General Orders, No. 27) a commandeering section was estab- lished to bring uniformity of procedure in the requisitioning and commandeering of property. There had been 164 different requisi- tions issued by the several bureaus of the War Department prior to the establishment of the commandeering section. Another 341 requi- sitions, affecting 2,501 persons or companies, were issued after the creation of the section. There had been 370 compulsory orders is- sued prior to the establishment of the commandeering section. An- other 626 compulsory orders, affecting 732 persons or companies, were issued after the creation of the section. The commandeering section, in its report following the signing of the armistice, esti- mated that the approximate value of all property requisitioned and secured under compulsory order was $141,687,000. 2 1 The main authority for commandeering was had from section 120 of the national defense act (II. R. 12766, Public No. 85), approved June 3, 1916; and that for requisi- tioning section 10 of the food and fuel control act (H. R. 4961, Public No. 41), approved Aug. 10, 1917. 2 There follows a summary and itemized list of properties taken for military purposes by requisitioning or compulsory orders, during the war : 1. Real property, improved and unimproved, title taken $15, 697, 000 2. Personal property 125,990,000 Total, title taken 141,687,000 GOVERNMENT CONTROL OVER PRICES. 365 (4) THE BOARD OF APPRAISERS. The duty of determining compensation for properties requisitioned or commandeered was placed upon the, board of appraisers, estab- lished by General Orders, No. 30, on April 1, 1918. The board, as then constituted, was composed of Lieut. Col. John S. Dean and Lieut. Col. R. H. Montgomery, and was given the following duties: To determine, by appropriate methods, just compensation of all properties of whatever kind, real, personal, and mixed, for the seasons of occupancy of any property, first, which shall hereafter during the existing emergency be ordered requisitioned, commandeered^ or otherwise formally taken over according to law, through, by, or by direction of, the Secretary of War for the direct and special use of the armies ; or, second, which has heretofore, during the present emergency, been directly taken over and the determination, of just compensa- tions for which has not been concluded, or is not under consideration by the special board. To determine all elements of valuation, in all useful or necessary phases of such valuation, included as items of cost in any contract in which such ele- ments affect the rights and obligations of the Government and which shall 3. Real property (improved and unimproved, including plants and trans- portation facilities) use and occupation taken (value per annum) 3,146,000 4. Personal property (vessels), use and occupation taken (value per annum) 126, 047, 000 Total, use and occupation taken (value per annum) 129,193,000 The more important of the commodities that were taken through requisitioning or compulsory orders by the War Department, found by segregating the items classified under personal property, follow in order of their values. 1. Cotton goods, silks, gauze, etc $56, 086, 700 2. Toluol 17, 211, 600 3. Wood chemicals 16,092,200 4. Platinum 9, 747, 2QO 5. Subsistence supplies 6, 854, 300 (5. Machine guns and ammunition 5, 720, 500 7. Caustic soda 2,899,300 8. Nitrate of soda 2,598,700 9. Spruce 1, 124, 300 10. Carbon tetrachloride 1,110,100 11. Machine tools 975,200 12. Folding steel hospital beds 750,000 13. Bleach powder 590,000 14. Building materials 551,800 15. Machinery 289, 900 10. Thermometers 284, 900 17. Typewriter ribbon cloth 269,900 18. Acetylene cylinders '. 260,400 19. Phenol 250, 700 20. Tin 227,900 21. Locomotive cranes . ; 203,200 22. Chestnut extract 189,900 23. Steel wire 169,200 24. Sulphate of ammonia 124,700 25. Boilers , 115, 000 26. Leather gloves 71,700 27. Brass ^ 66, 100 28. Sulphuric acid ' 64,000 29. Dimethylaniline 33, 900 30. Tapioca flour 29,400 31. Miscellaneous... 26, 200 366 HISTORY OF PRICES DURING THE WAR. hereafter during the present emergency be entered into by the bureau of the War Department, or any official of any such bureau whenever the contract itself shall not provide for and require a different method of determination; and likewise to determine such elements included in any such contract hereinbefore entered into during the present emergency where such determination is not otherwise provided for or required, or has not been concluded, or is not the subject of consideration by the special board. The board of appraisers, between April 1, 1918, and November 22, 1918, was presented with 1,147 different requisition compulsory orders and clearances for the determination of a just value. 8. THE NAVY DEPARTMENT. The Navy Department had no more authority than the War De^ partment for fixing the prices of commodities to the public. It, by virtue of the enormous purchases for its own supplies, was repre- sented on the price-fixing committee and the commodity sections of the War Industries Board. The purchasing of supplies for the Navy was concentrated on the Bureau of Supplies and Accounts, which undertook frequently to determine " fair and reasonable " prices. 1 (i) COMMODITIES PURCHASED BY THE NAVY. The bulk of purchases made by the Navy during the war, like those made by the Army, was a considerable factor in prompting the price-fixing committee and the War Industries Board to extend con- trol over certain commodities. The Navy purchased a quantity of nonferrous metals amounting in value to $71,218,289 ; steel and iron valued at $91,846,654; woolens and equipment valued at $96,400,000; lumber valued at $5,918,822: provisions (obtained through alloca- tion) valued at $7,427,260; and chemicals and explosives valued at $100,827,611. There follows a summary of the volume of purchases made by the Navy of the more important commodities, as recorded in the annual report of the Paymaster General for 1918 : NONFERROUS METALS. i ' : Commodity Copper 150,031, 522 pounds... 24.833,000 pounds $35, 2o7. 407. 67 1,800,392.50 1,184,320.00 28,632.41 514,837.13 7,750,884.36 83, 560. 00 5,997,251.96 197,085.56 1,980,403.24 26,623,502.95 9,798,010.00 Lead. . . Tin ... 1 850 500 pounds Antimony 222 008 pounds Monel metal 1,263 404 pounds Steel wire rope 85 105 281 pounds Nickel... 219,900 pounds Zinc 45 810 433 pounds Aluminum 597 229 pounds Portland cement 1 151 098 barrels Copper products 7 '695*998 pounds Brass products 28 5 9 7 258 pounds 71,218,289.78 1 An excellent account of the price and purchase work of the Navy during the war to the summer of 1918, is given in the Annual Report of the Paymaster General of the Navy for the fiscal year 1918. 2 Ex-copper furnished by Government ; value, including copper furnished by Government, $10,695.60. 367 368 HISTORY OF PRICES DURING THE WAR. STEEL AND IRON. Commodity. Quantity. Value. Steel 517 828 000 pounds $20 790 356 98 Forgings and ingots 50,943,104 pounds 16 417 288 00 Anchors 1 294 667 00 Chain iron 10 000 000 pounds ' 562' 500' 00 Castings ... 5,960 000 pounds 628 020 00 Pig iron 68 264 000 pounds 1 012*018 00 Rails 26 280 000 pounds '633*000 00 Mine anchors 40,000 2 080 000.00 Extender mechanisms 50000 155 000 00 Tin plate 194 768 pounds 46 517 00 Pipe 1 188*322 67 Iron ore 201 600 pounds 587 70 Tubing 7,730,514 feet 1,699,328.00 Railroad equipment 2,037,742.00 Machine t ools 17 570 468 33 Chain 25,985,300 pounds 2.600,060.00 Armor plate 2,430,000 pounds 483 600 00 Bolts, nuts, and rivets 32,643,450 pounds 2.131,504.00 Hand tools 359 966 00 Miscellaneous TB3'5 028 00 Fittings 930 681.00 Alloy steel 8 090 000 00 Tool steel 1,500 000.00 91,846,654.68 WOOLENS AND EQUIPMENT. Overcoating 1 600 006 yards $9,000,000.00 22,000,000.00 5,000,000.00 5,500,000.00 1,500,000.00 7, 500, 000. 00 4,000,000.00 7, 000, 000. 00 8.000,000.00 $500,000.00 800,000. 00 900,000.00 900,000.00 350,000.00 150,000.00 I 1,000,000.00 75,000.00 } 1,000,000.00 900,000.00 250,000.00 $450,000.00 } 800,000.00 6,000,000.00 1 1, 500, 000. 00 2,000,000.00 500, 000. 00 4,000,000.00 } 1,500,000.00 850, 000. 00 73, 000. 00 1 1,000,000.00 1 800, 000. 00 300,000.00 300, 000. 00 Uniform cloth 7,000,000 yards Flannels (billiard cloth scarlet cloth etc) 2 063,000 yards Blankets . 735,000 yards Bunting 4 285 000 yards Australian, domestic, and South American wool (grease). Denim 12,000,000^ yards 14,800.000 yards Drill 29,630 000 yards Canvas and duck 10,000,000 yards Cotton check lining 1 ,850,000 yards Surgical gauze 975,000 yards 865 000 'pairs Mattress ticking 2,647,000 yards Nainsook 1 736 000 yards Muslin 800,000 yards Pillow cases 140,000 Sheets 230,000 Sheeting 1,500,000 yards Pajamas 46,000 pairs Towels 270 000 Toweling 2,900,000 yards 7 200 000 pounds Handkerchiefs 3,850,000 Twine 865,000 pounds Thread 1,000,000 spools Do 320,000 cones Underwear 2,335,000 suits Socks 423,000 pairs (heavy) Do 1,940,000 pairs (merino) Do 2 500 000 pairs (cotton) Jersevs 475,000 Watch caps 555,000 Shoes 885,000 pairs 150 000 pairs ( arctics) Do 315,000 pairs (boots) 708,000 i Ribbon Grommets, buttons, and other accessories Mattresses and cots 500,000 vards (50,000 gross (grommets) <260 000 gross (buttons) 1770,000 (brushes and whisks) . . . f 100,000 mattresses Burlap hemp and kapok \ 20,000 cots |300 000 yards (burlap) . [290,000 pounds (hemp) (400 000 pounds (kapok) (150,000 yards (netting) (750 000 yards (braid) (l5 000 spools (tape) . 96, 400, 000. 00 GOVERNMENT CONTROL OVER PRICES. LUMBER. 369 Commodity. Quantity. Value. 7'% 586 917 feet SI 838 086 01 Douglas fir 22,972,560 feet . . . '528*369 28 North Carolina pine. . . 12,683, 796 feet 380' 513. 88 Oak . 10, 4 10,0(16 feet 884 855 61 Spruce 9, 368, 500 feet 374 740 00 White pine 6,828,000 feet 546' 240 00 3 522 950 feet 264*221 25 Ash 1,797.000 feet . 197 670 00 Yellow-pine decking 1 432 000 feet 143 200 00 Redwood . . . 1,059,000 feet 47' 655 00 White cedar 1,056 000 feet. . 100'320 00 Poplar 1 016 000 feet 8l'280 00 Hemlock 820,000 feet ......... 19' 824 00 Beech, birch, and maple Mahoganv 445,000 feet 362,800feet 31. 150. 00 90 700 OC Port Orford cedar . . . . 245,000 feet . 24 500 00 Maple 112 000 feet 8*960 00 Basswood 90,000 feet 6 300 00 Sugar pine- 75 000 feet 4 500 00 Sitka pine 65,000 feet 3*250 00 Walnut - 27, 000 feet 4 050 00 Laurel 23 500 feet 2' 115 00 Hickory 15,500 feet 2' 325 00 Cherry 1 000 feet 140 00 213 000 pounds 10 650 00 Crossties 57,366 pieces . 7l'707 50 Piling 12 400 pieces . 173 600 00 Juniper poles . ..... 3, 500 pieces 24' 500 00 Douglas fir spars 1,495 pieces 44 850 00 Spruce poles 1 425 pieces '855 00 5,918,822.633 PROVISIONS (OBTAINED THROUGH ALLOCATION). Item. Quantity. Approximate value. Apples, evaporated 1,208,000 pounds .. $163 120 00 Apples, tinned . 2,000,000 pounds . 127 600 00 Apricots, tinned 2,660,000 pounds... 230' 500. 00 Beans, lima, dried .... 3,462,000 pounds 415 440 00 Beans, navy . 15,000,000 pounds . 1 762 500 00 Beans, string 3,978,000 pounds... 358*900 00 Catsup 519 000 gallons 519 000 00 Corn, tinned 6,630,000 pounds. 552 500 00 Peacnes evaporated . ... 728, 000 pounds 72 800 00 Peaches tinned 4 066 000 pounds 361 400 00 Pears, tinned........ 2, 885,000 pounds 262* 850 00 Prunes 2 800 000 pounds 553 650 00 Pumpkin 1,678,000 pounds 67,800 00 Salmon 2,850 000 pounds 415 700 00 Sauerkraut 2 782 000 pounds 163 500 00 Tomatoes 13, 100,000 pounds 900 000 00 Peas 6,000,000 pounds. ... 500 000 00 7,427,260.00 CHEMICALS AND EXPLOSIVES. t Commodity. Quantity. Value. Petroleum 217 749 gallons $59 928 00 Turpentine 33 600 gallons 20 477 00 Linoleum 182,464 square yards. . 212 324 00 Shellac Garnetlac 9,000 pounds 987 bags 5, 130. 00 69 700 00 Varnish 213,505 gallons 151 819 70 Paint drier . 408 576 gallons 123 663 00 Lubricating oil 3,402,981 gallons... 1,227,072 00 Kerosene oil 444, 182 gallons . 88 201 (jO Sperrn oil Linseed oil (boiled and raw) Lard 31, 400 gallons 201.626 gallons 57 050 gallons 53,668.00 228, 743. 00 53 38 7 00 Costor oil 79 740 gallons 160 340 00 Miscellaneous paints 300 ' 000 00 Coke... 13,294 tons 105.881.00 125547 2 370 HISTORY OF PRICES DURING THE WAR. CHEMICALS AND EXPLOSIVES Continued. Commodity. Quantity. Value. LXI'LOSIVES (INCLUDING RAW MATERIALS AND FREIGHT WHEN FURNISHED BY NAVY). TNT, grade '-A" 10,527 000 pounds... 85,633,500.00 29,033,250.00 13, 280, 400. 00 32,068 892 70 TNT trade "B" 72 012 000 pounds TNx 1 ....... : 30,000,000 pounds.: Smokeless powder .... 59 800 000 pounds .... Black powder 1 151 750 pounds 208,664.50 2, 904, 000. 00 12,500.00 18,000.00 327,000.00 391,756.00 5,496.50 720. 0-:.) 86, 748. 26 2, 720. 00 57,020.70 6,000.00 1,980.00 4,319.50 28,745.00 1,331.67 7, 452. 00 6,365.00 45, 100. 00 744,800.00 30, 000. 00 56,212.87 27, 210. 00 22, 080. 00 16, 000. 00 5,000.00 . 22, 460. 00 29, 898. 30 21,678.00 2,656.90 350,594.00 208, 807. 00 540. 00 7, 125. 00 364,980.00 11,500.00 149,868.60 2,573.75 2,373.00 16,593.31 2,000.00 2, 345. 50 16, 560. 00 3,004.00 1,904.00 5, 167. 50 1,927.00 156,543.75 483,646.00 11,129.30 144, 774. 75 3,827.24 3,213.00 322,579.00 729, 433. 00 333, 695. 00 3, 569, 892. 00 800,000.00 97,500.00 6, 159. 00 13,177.50 8,857.77 97.50 1, 666, 700. 00 19, 076. 00 804, 160. 00 311,400.00 53,520.00 507, 750. 00 41,797.00 1,587,891.00 152, 635. 25 Ammonium picrate 4 550 000 pounds. . . Picric acid 20 000 pounds Tetryl 2o'oOO pounds Chemicals for gas shells (estimated) Priming caps 18 160 000 caps CHEMICALS. Acetone. . . . 14 100 pounds . . . Aluminum, sulphate 40 000 pounds Ammonia anhydrou > . . . 305 000 pounds Ammonia aqua 34 000 pounds Ammonia chloride 506 800 pounds Amonium phosphate 40 000 pounds Barium chlorate 11 000 pounds Borax 41 800 pounds Calcium carbide 762 000 pounds Calcium chloride 17 000 pounds Calcium magnesium chloride 162 000 pounds Calcium phosphide 5 750 pounds Carbon tetra-chloridc 4io,000 pounds Cartridge bag cloth 1 070 000 square yards Diphen vlaminc 50 000 pounds Dope dictate 12 000 gallons Dope, 'litralc 13 000 gallons Ethvl chloride 24 000 pounds Ethyl chloride drums 400 pounds .... Gas carbon dioxide 150 000 pounds G as h y dr ogen 1 440 000 cubic feet Gas oxygen 2'sio'ooO cubic feet Glue, dry 6*500 pounds Gluo liquid 1 150 gallons Glue, marine 606 000 gallons 32 600 gallons Iron reduced 600 pounds 75 000 pounds Nitrating cotton 4 200 000 pounds PbenylcincLoninic acid 10 000 ounces Platinum and iridium 1 417 30 ounces Potassium permanganate 775 pounds Salicylic acid 1 500 pounds Soda ash 538 tons Sodium benzoate 500 pounds Sodium carbonate 42 250 pounds Sodium chlorate 92 000 pounds Sodium cyanide 11, 300 pounds Sodium fluoride 11 200 pounds Sodium silicate 127,000 pounds Soap cleaning and polishing 32,800 cakes 1 706 500 pounds Soap silt water 7*890 '000 pounds Soap toilet 35 000 pounds Soap, washing powder 2,182,500 pounds 12 136 ounces Silver nitrate Zinc dust 35 700 pounds L/6ad for painting purposes 3 330 100 pounds Zinc oxide 6 565 993 pounds 505 660 gallons Mercury 33 993 flasks 4 Sodium nitrate (for Indianheod) 10 000 long tons Acids: Carbolic 250 000 pounds Hydrochloric 205 800 pounds 117 200 pounds Nitric 55 658 pounds Oxalic 200 pounds Sulphuric Fuming . 35,100 tons 66 Baum.6 1 156 780 pounds 28 900 tons 60 Baum6 17' 200 tons Carbon electrodes 800 electrodes Caustic soda 6 325 tons 580 000 pounds Ferroalloys Sulphur 5,001.41 tons 100,827,611.32 GOVERNMENT CONTROL OVER PRICES. 371 (2) REPRESENTATION OF THE NAVY UPON THE PRICE-FIXING COMMITTEE. The Navy was represented on the price-fixing committee by Pay- master John M. Hancock, whose relation to it was like that of the Army representative on the same committee. It should be added that the task of making Navy purchases was expedited by the forma- tion of commodity sections within the Navy, whose chiefs were members of and participated in the deliberations of the commodity sections of the War Industries Board. (3) COMMANDEERING. In peace-times Navy purchases were made in the open market, but during the war resort was frequently had to commandeering and mandatory orders. 1 The scope of the newly created naval board of commandeering was extended on February 1, 1918, "to act as a clearing house to supply all the Navy with information at hand, giving consideration to quantities, material, prices, suitability for Navy use, and other data relative to the stores produced." The work of the board consisted in making inventories of goods of in- terest to the Navy stored in warehouses and held by banks and for- warding agents for export. The Paymaster General gives the following account of the pro- cedure followed by the Navy in taking tin at a time when the market was rising: In the fall of 1917, 27,000 pounds of tin were urgently needed. The tin market was jumping out of bounds. Several dealers were called upon without result. The collector of customs at the port of New York was called by long distance telephone. He advised that a ship was in with a cargo of 250 tons consigned to three companies. The 13 tons required by the Navy were appor- tioned among those three companies and the tin paid for at 64 cents per pound, the approximate value before the market began to rise. With this beginning, arrangements were gradually made to restrain all tin warehoused in New York found to meet Navy specifications. Through the commandant at New York, approximately 2,000 tons were placed under seal. This action prompted a dealer to place at the Navy's disposal 700 tons additional, which was con- tracted for at 64 cents per pound, the market price at that time being 80 cents per pound. Provisions were secured for the Navy generally by allocation or competition. But in January, 1918, it became necessary to obtain some Kotinashi (white) and Kintoki (kidney) beans by a joint 1 The principal statutes relating to price control, and authorizing commandeering and mandatory orders for use by the Navy were the Naval appropriation act, Public No. 479 of Mar. 4, 1911, and succeeding years ; naval appropriation act, Mar. 4, 1917, naval en- gineering fund (Public, No. 391, 64th Cong.) ; the urgent deficiency act of June 15, 1917 ; the food and fuel act, Public No. 4, 65th Cong., of Aug. 10, 1917 ; and the naval appropriation act, July 1, 1918 (Public No, 182, 65th Cong.). 372 HISTORY OF PRICES DURING THE WAR. Army and Navy commandeer, whereby 42,000,000 pounds of beans were secured in California. This notable instance of commandeer- ing, one of the first large cases of food sei/.ure in our history, was the more interesting since the Navy saved to itself middlemen's profits by commandeering the cargo by a radio message before the ships reached port. Another interesting instance of control was that exercised by the Navy over the prices of canvas, which is described in the annual re- port of the Paymaster General as follows : Unusually heavy demands for certain numbers and weights of canvas and duck in the fall of 1917 made it necessary for the Navy to go into the market rather heavily. In view of the abnormally high prices prevailing in the com- mercial market, manufacturers were apparently unwilling to bid. The War In- dustries Board was requested to provide the Navy with information as to the mills from which the Navy could expect deliveries within a reasonably short time. When this complete list was received, mandatory orders were issued with a provisional price set at the figure which appeared just on the basis of all available data in the hands of the Navy. The receipt of these orders at this provisional price appeared to occasion some concern in the industry and drew forth replies to the effect that the material could not be supplied. The Navy referred these claims of inability to supply to the subcommittee of the War Industries Board. This committee had stated, at the time of furnishing the Navy with the information used, that the capacity of every available loom was known to it. The protest then became one as to price, the industry claim- ing that the material could be supplied but that the Navy's price was entirely unreasonable. To this statement the Navy replied with the request for facts nnd cost figures substantiating the claims for a higher price, assuring the manu- facturers of a fair profit over and above manufacturing cost. Owing to non- receipt of the requested figures, the case lapsed. Subsequently the war service committee of the cotton industry accepted for the trade a price practically identical with the provisional price set by the Navy. Not only did this action save money directly for the Navy, but it also served as an anchor for Army and civilian purchases, since the canvas mills were obviously unable to explain any material discrepancy to other buyers over and above the price at which the Navy was obtaining canvas. A situation similar to that of canvas arose with regard to denim. When the manufacturer asked 40 cents a yard for his material, the Navy served an order for the quantity needed at about 34 cents a difference of over $120,000 from his quotation. The manufacturer finally admitted the justice of the Navy price and requested a trans- fer from a Navy order to a voluntary contract. (4) THE SUPPLY OF RAW MATERIALS TO CONTRACTORS BY THE NAVY. One of the unique and effective methods by which the Navy as- sured itself of the completion of contracts at reasonable rates was its practice of supplying raw materials to its contracting manufac- turers. The Navy, for example, bought 3,000,000 pounds of wool in GOVERNMENT CONTROL OVER PRICES. 373 July, 1917, and offered that wool to its cloth contractors at a reason- able price. The contractors thus were in a position to ignore ex- orbitant quotations made by private wool dealers, and to buy of the Government. The Navy's holdings generally prevented the price on contractors' options from exceeding the price set by the Navy on its own supply. In a like manner the Navy arranged for a purchase of about 25,000 bales of Australian wool from the British Government. Since the trade did not know generally how small an amount the Navy had, and the consequent ease with which it could be exhausted, there was given to contractors an effective weapon for making private purchases at reasonable figures. It was estimated that the direct saving brought about by this wool purchase amounted to $1,500,000. The success of the Xavy with its original small wool purchase became the basis for joint action by the war agencies in importing foreign wools and in taking over the entire domestic clip. 1 (5) DETERMINATION OF "FAIR AND JUST" PRICES. When the commodity specialists within the Xavy found that prices quoted by bids received in the regular openings were unjust, those bids were rejected and a Navy mandatory order issued. The work later followed of determining a " just " price for the materials taken by seizure. In the determination of a " just " price the Navy made extensive uses of cost data supplied by the contractor, the Federal Trade Com- mission, or opinions expressed by the commodity sections of the War Industries Board. A Navy accounting officer was also ordered to the plant to report on the cost of manufacture. The Navy worked out with remarkable precision the factors that would be allowed as costs, and endeavored to standardize them. 1 Annual report of the Paymaster General for 1918. g. THE FEDERAL TRADE COMMISSION. In the field of public price control during the war the Federal Trade Commission has performed primarily an advisory function by collecting and interpreting for the price-fixing agencies data on costs of production. In the case of news-print paper, however, the activities of the commission have extended somewhat further and have taken the form of administrative control over prices. The regulation of the prices of news-print paper differs materially from the instances of war-time price fixing, in that the need for regulation appeared and the preliminary steps in the control were taken considerably before the entry of this country into the war. On April 24, 1916, the United States Senate, impelled by the receipt of numerous complaints from publishers, adopted the following resolution : That the Trade Commission is hereby requested to inquire into the increase of the price of print paper during the last year, and ascertain whether or not the newspapers of the United States are being subjected to unfai^ practices in the sale of print paper. 1 Upon the passage of this resolution the Federal Trade Commission undertook an investigation into the prices and distribution of news- print paper. Finally, after a series of conferences between the manufacturers, publishers, and the commission, at a conference on January 26, 1917, it was suggested that the Federal Trade Commis- sion should " arbitrate the question of what was a fair and reasonable price for the sale of news-print paper." ' This the commission agreed to do, and on March 4, 1917, the prices upon which it had determined were announced and were accepted by a number of the news-print paper manufacturers of this country and of Canada. After this agreement was adopted a Federal grand jury for the southern district of New York found indictments against four of the signatories to the agreement for violation of the Sherman anti- trust law T . These signatories, accordingly, .withdrew from the agree- ment, which soon collapsed. On November 26, 1917, a new T agree- ment was made between Thomas W. Gregory, Attorney General of the United States, as trustee, and certain persons and corporations engaged in the manufacture and sale of news-print paper. It was 1 S. Res. 177, 64th Cong., 1st sess., adapted Apr. 24, 1916. 2 Report of the Federal Trade Commission on the news-print paper industry, June 13, 1917. 374 GOVERNMENT CONTROL OVER PRICES. 375 provided in the agreement that the Federal Trade Commission should fix the maximum prices and terms of sale of the output of the news-print paper of the 10 signatory companies sold to purchasers in the United States for the duration of the war and three months thereafter. The findings and aw r ard of the Federal Trade Commission, con- cerning prices and terms of contract and sale of news-print paper, were announced on June 18, 1918. The manufacturers of news-print paper, parties to the agreement, considered the price-awards too low and appealed for a review to the United States circuit court. The decision of this court, rendered September 25, 1918, in the main sup- ported the contentions of the manufacturers and ordered a substan- tial increase in the original price awards of the commission. The detailed awards and price schedules are reprinted in the second part of this study, which contains the rules and regulations affecting prices adopted by various governmental agencies. io. THE DEPARTMENT OF AGRICULTURE. Distinct lines of service for the Food Administration and the Department of Agriculture were clearly drawn at the outset in order that neither should intrude upon the field of the other. The De- partment of Agriculture undertook the stimulation and supervision of the production of foodstuffs, and the Food Administration that of providing for distribution. It was intended, of course, that many rules of the Food Administration should work for a vital increase of production. But measures which related to the producer in the main were administered strictly by the Department of Agriculture. Little occasion arose for direct administrative action on the part of the Department of Agriculture which might be ascribed to the emergency conditions arising from the war. The only approach to regulation which can be considered as coming within the scope of the food law and which related to prices took place in connection with fertilizers and farm equipment. (i) THE CONTROL OF FARM EQUIPMENT. The food supply of the world is peculiarly dependent upon the adequate production of farm equipment, and it was necessary to stimulate production of farm implements without too greatly in- creasing their prices to the producer. Farm implements were caught in the current of rising prices because of the rising cost of raw materials and labor, and by the latter part of 1917 their prices were climbing at an extraordinary rate, 1 The American farmers became disturbed and complained that prices were unduly high. Moreover, there were many difficulties encountered in securing certain farm machinery. The needs of the hour, however, were too acute to allow any disorganization or delay in the production of foodstuffs, and it became apparent that govern- 1 The following index of farm implement prices, based on the average price of 1911, which is made equal to 100, shows the price situation in the farm implement industry during 1917 and early 1918 : 1911 1912 1913 1914 1915 1916 1917 1918 Mav 100 100 96 101 100 102 126 170 October 100 100 100 100 101 119 151 Data from Bulletin 847, United States Food Administration, statistical division, infor- mation service. 376 GOVERNMENT CONTROL, OVER PRICES. 377 mental regulation of the industry would be necessary to alleviate the situation. 1 Accordingly, under the license provision of the Food Administra- tion, the President required all importers, manufacturers, stores, and distributors 2 of " tools, utensils, implements, machinery, and certain other farm equipment to secure Federal licenses not later than June 20, 1918," and the execution of the provisions and regula- tions thereunder were placed in the hands of the Secretary of Agri- culture. Under the regulations promulgated for the industry all records and property of licensees were subject to examination by representa- tives of the Secretary of Agriculture. Eesales within the trade were specifically prohibited to prevent any increase in the price of the product resulting from unnecessary sales. Beyond this requirement no direct regulation of prices was put into effect. The Department of Agriculture, however, had the power to prevent unfair " commissions, profits, or practices," and ruled that A licensee shall not buy, contract for, sell, store, or otherwise handle or deal in any farm equipment for the purpose of unreasonably increasing the price or restricting the supply of any such commodity, or of monopolizing, or attempting to monopolize, either locally or generally, any such commodity. This regulation gave indirect supervision over the prices of all farm implements. Agricultural agents were asked to report to Washington the prices that the increased costs of freight, labor, and raw materials had to June, 1918, and price lists were secured from the licensees in order to check prices in each branch of the industry. 3 The hoarding of 1 The difficulties of the situation had early reached Congress, and on May 13, 1918, under Senate Resolution No. 223, the Federal Trade Commission was directed to in- vf-stigate and report to the Senate the cause or causes of the high prices of agricul- tural implements and machinery. The investigation at the present date, June 15, 1919, has not been completed. 2 Retailers whose gross annual sales were less than $100,000 were exempted from the license requirements. s It is of interest to note that while the Food Administration paid no attention to replacement value in determining selling price, the Department of Agriculture left the question as to whether replacement value would he considered in figuring costs entirely to the individual licensee. The attitude of the Department of Agriculture in this connection is well presented in the following public statement made in the midsummer of 1918 : " The prices of farm equipment are more or less seasonal, but if the price should jise or fall during the season, then, to be consistent, a person who wishes to sell on the basis of replacement values would be obliged to sell at a loss if the price fell. Equipment carried over from one season to another that is, the residual from a pre- vious season's reasonable supply should be considered in the same manner. There- fore, if persons have sold at replacement values, they must continue to do so when a drop in prices comes, and carry the same amount of stock as in the beginning through- out the period of the high prices in order not to profiteer. " In short, it will not be considered profiteering if farm equipment is sold on the basis of replacement prices^ provided the goods sold are replaced at once at replace- ment prices and this practice is continued during the period of high prices caused by the war." 378 HISTORY OF PRICES DURING THE WAR. VDGHTEQ iNorx Nucicr PWCQ or -FERTILIZERS -&LL .COMMODITIES" agricultural implements was declared illegal, and " the holding, con- tracting, or arranging for a quantity of equipment in excess of rea- sonable requirements " was con- sidered evidence of hoarding. In the autumn of 1918 the farm-implement manufacturers wished to increase their prices. It was the contention of the manufacturers that the in- creased cost of freight, labor, and raw materials had increased their costs about 10 per cent, and that they should be allowed to increase their selling prices to a commensurate degree. 1 The Federal Trade Commis- sion, which was making a cost investigation in the implement industry, had not yet secured sufficient data to justify any action on the part of the De- partment of Agriculture, and it was not thought advisable to make any definite decision. The profits of the preceding- year, however, had, in the opin- ion of the Department of Agri- culture, been " well above the prewar average," 2 and this, taken in consideration with the general conditions of the industry, led the authorities to believe that a rise 1 In a letter of Oct. 22, 1919, from the farm-implements committee representing the industry to the Department of Agriculture, in which permission for the increase in price was asked, 'the following facts were emphasized : 1. The advance in freight rates over the preceding spring cost the industry approxi- mately $7,500,000. 2. Labor costs had increased from 20 to 40 per cent, or approximately $15,000,000, thereby making a total increased cost of $22,500,000, " which would be 7i per cent on $300,000,000 sales volume." 3. Malleables and other items entering into the construction of farm implements had also gone up in price. The committee asked the Department of Agriculture to rule " on the question of the average amount of advance in selling price " that would be sanctioned, and added that the general view of the industry appeared to be that conditions justified an average advance of approximately 10 per cent. 2 The Department of Agriculture apparently doubted several of the contentions of the industry as is evidenced in the following extract from a letter on Oct. 28, 1918, in reply to the request that they be allowed to increase prices : " It would be of great assistance if you could give the information upon which the extra cost of the industry of seven and a half million dollars as based for freight ad- vances, so we could have some detatils for this huge figure. The same applies to labor advances. The figures 20 to 40 per cent seem to me too high, as I have seen no figures to justify such a rise all round." Weighted index numbers of prices. Fer- tilizers and " All commodities." By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) GOVERNMENT CONTROL OVER PRICES. 379 of prices would be unjustified. And the price lists of early 1918 were continued through 1918 without any change. (2) FERTILIZERS. No attempt was made by the Department of Agriculture to exer- cise direct control over the prices of fertilizers, although the im- porters and manufacturers and distributors had been licensed under the presidential proclamation of February 25, 1918. The activities of the department, indeed, consisted mainly in helping the industry to secure cars and fuel during periods of stringency. The price of fertilizers was, however, probably affected by the work of the department in distributing nitrate of soda to farmers throughout the country. In the year 1918, 75,000 short tons were sold at a price of $75.50 per ton. The 1919 demands approximated 150,000 tons, the selling price of which averaged $81. 1 1 The present tendency of fertilizer prices is shown in reports received by the De- partment of Agriculture which indicate that the fall of 1919 will witness a drop of about 3d per cent in the price of mixed fertilizers in various southern States. ii. THE BASIS FOR DETERMINING A FIXED PRICE. The student who turns through the several chapters that have gone before, and seeks there a sharp analysis of the policies that lay at the bottom of each control, will be disappointed. The Con- gress or the President formulated no general rule of price fixing, upon which each control agency might put its finger, beyond their hope that prices would remain near enough the cost of production to yield only " reasonable profits." The various war-time agencies, therefore, each went its own way always with the approval of the President, and each set up its peculiar system of control. The price-control boards generally were given cost data through the Federal Trade Commission, and this fact did give them a some- what common approach in their bases for determining upon a fixed price. But not during the whole war were the boards in working agreement upon what should constitute the costs allowable for pro- duction, or the " reasonable profit ? ' allowable above those costs once they had been determined. They were at equal loss in the beginning, once each had satisfied its own mind what to allow as a " reasonable profit," whether to grant that " reasonable profit " to each producer above his own individual cost of production, or make it applicable without scruples to low-cost and high-cost producers alike. The Food Administration generally chose the more flexible control, made possible by wide uses of profit margins for application by each individual. The price-fixing boards, strictly speaking, however, came to adopt a single rather than a variable price, fixed somewhere above the " bulk line " of production. (i) THE OBJECTS OF THE PRICE FIXERS. It is important to bear in mind at the outset that the immediate objects at stake with the various control boards were not 'always identical. The War Industries Board and price-fixing committee, for instance, gave emphasis to the stabilization of prices pertaining especially to Government purchases, while the Food Administra- tion and Fuel Administration emphasized the protection of the pub- lic. The main object of all price-control boards at Washington, however, was to stimulate and maintain a maximum of production and it was to this problem they all gave attention in some manner. The Food Administration and the Fuel Administration did not, of course, await the announced intention of the Government to pur- chase a particular commodity before adopting some form of con- trol if public necessity required. There were in point of fact close 380 GO VEHEMENT CONTROL OVER PRICES. 381 and direct relations between Government orders and the regulations of foods and fuels, through food supplies going to the Army and Navy and the supply of fuel for war manufactures. But the War Industries Board, and later the price-fixing committee, took as their main concern the prices of commodities which Avere needed in great quantity by the Government. The origin of every regulation by the price-fixing committee lay in the circumstance that the Government purchases were on a great scale and threatened to disturb market prices. 1 The main object of the price-fixing committee was the stimulation of production, and it was that factor rather than the de- sire for a low price alone which influenced them in determining upon various fixed prices. They did not, it should be emphasized, work always upon the theory that the highest price would assure an ulti- mate maximum production when wage or other problems compli- cated particular situations. 2 They strove to fix their maximum prices at points high enough to encourage production adequate to meet the war program, but no higher. (2) THE METHODS OF CONTROL. So many kinds of control affecting prices were exercised during the war that an arbitrary line can scarcely be drawn separating price from other controls. The method of this inquiry has been to count as affecting prices those controls exercised over requirements, clearances, allocations, conservation, and priorities, but to study them only in a general way. The main business of this study after all has been an analysis of the controls dealing directly and strictly with prices. These controls include the setting of minimum and maximum prices known commonly as " fixed " prices, the setting of maximum margins of profit, or the fixing of special prices for Gov- ernment purchase solely. The latter prices pertaining to Govern- ment purchases might in another sense be classed under options or outright purchases, and involve a study of the commandeering and requisitioning orders. These kinds of price control were exercised by different boards in diverse ways, determined usually by the powers at their command. The conspicuous instance of a minimum price set during the war was that made by the Congress on August 10, 1917, when it fixed a minimum price of $2 per bushel for wheat. The whole body of regulations administered by various boards, with but three excep- tions, were designed to hold prices down and might be called either " maximum prices " or " maximum margins of profit." There fol- lows a word in explanation of the method by which each board chose one or the other of these kinds of control. 1 Price-fixing as Seen by a Trice-fixer, Ly F. W. Taussig, formerly of the price-fixing committee. 2 Lieut. Col. Robert II. Montgomery, formerly of the price-fixing committee. 382 HISTORY OF PRICES DURING THE WAR. The War Industries Board, and the price-fixing committee after March 14, 1918, concerned themselves solely with setting pegs beyond which prices might not rise but below which the law of supply and demand theoretically was given free play. But in fact the paucity of real power given to the board and the committee made them bar- gain virtually with the trade until an agreement was reached. Their control might more properly, therefore, be called " agreed-upon maximum prices " between the Government and the industry. The Food Administration, while sometimes virtually fixing prices by effective roundabout methods, did not in the main utilize the fixed-price method of control exercised by other boards and seemed almost to boast that it had no legal power to fix prices. Their atti- tude was the more significant, furthermore, because apparently it represented a real conversion to some definite policy of control. The point of departure was, it would seem, one of policy rather than power, since the Food Administration was granted more liberal powers to control prices by Congress than were the War Industries Board or the price-fixing committee. The Food Administration control was more nebulous than any other control at Washington, and from many angles more flexible as applied to widely used staples. It consisted in the setting of maximum margins of profit, determined generally upon the reasonable prewar profit announced in circular form, with the intention that each individual affected should apply the approved margins in his own business. The Fuel Administration, with a firmer legal authority to do so than any other price-control organ at Washington, fixed prices in a stricter sense than any other board. The War Trade Board exer- cised its control over prices by its power to stipulate the conditions upon which import and export licenses would be granted. The Army and Navy, interested only in their own purchases, worked out schemes whereby Government prices were determined and enforced by their power of commandeering or requisitioning. (3) THE DATA USED IN FIXING A PRICE. The most useful data, which the war boards sought to have on hand before beginning the determination of a fixed price, were sched- ules of the costs of production. The Federal Trade Commission, with its hundreds of accountants busy over the country, supplied cost figures especially for the War Industries Board, the price-fixing committee, and the Fuel Administration. 1 The various interpreta- 1 The Federal Trade Commission during the war made confidential cost studies upon the following : Bituminous coal ; anthracite ; coal, jobbing : coal, retailing ; coal, docking ; crude petroleum ; fuel oil ; kerosene ; gasoline ; lubricating oil ; aviation gaso- line ; castor oil ; iron ore ; coke ; charcoal ; pig iron ; ingots ; blooms ; slabs ; billets ; rails ; shapes ; plates ; bars ; sheet bars ; sheets ; rods ; wire ; tin plate ; wire rope ; steel rounds ; forged billets ; nickel and carbon steel bars ; steel slugs ; Davis wheels ; cast-iron pipe; high-speed tool steel; steel castings; malleable-iron castings; fuses GOVERNMENT CONTROL OVER PRICES. 383 tions put upon different cost data in the determination of the point above which to allow a " reasonable profit" are considered later. In addition to material relating to costs of production there was made available to various control agencies at Washington through the price section of the War Industries Board a comprehensive set of quotations of commodities at wholesale. These prices were espe- cially useful where cost data were not available and where it was desired to know how far above costs speculation in the market had carried prices. It was not possible, except where confidential re- ports were available or volunteered, to report contract prices, although in the case of several of the most important commodities dealt with the bulk of sales was made under contract. For a great many of the transactions current quotations were of little significance because of outstanding contracts. Old contract prices were of par- ticular importance in the consideration of control over crude iron, steel, copper, and sulphuric acid. (4) THE PROBLEM OF THE LOW-COST AND THE HIGH-COST PRODUCERS. It was obvious from the outset that producers would not strive to turn out their maximum of production unless assured of a price high enough above their costs of production to yield them a reasonable profit. But as soon as an investigation into the cost of producing any commodity began, wide differences appeared between the costs incurred by the several producers. That problem remained through- out the war one of the most intricate of those confronting price-fixing .boards. and torpedoes ; locomotives ; locomotive cranes ; farm machinery ; farm machinery, re- tailing ; sisal twine; automatic sprinklers; automatic sprinklers, installing; clinical thermometers ; copper ; nickel ; lead ; manganese ore ; aluminum ore ; aluminum ingots ; aluminum products ; zinc ; zinc sheets ; zinc plates ; zinc concentrates, reducing ; monel metal ; quicksilver ; brass and copper sheets ; brass seamless tubes ; brass rods ; insulated copper wire; sand and gravel; crushed stone: riprap stono ; asbestos fiber; asbestos prod- ucts ; cement ; common brick ; sand, lime, brick ; fire brick ; hollow building tilo ; gypsum wall board ; gypsum plaster board ; fiber wall board ; yellow-pine timbers ; yellow-pine lum- ber ; spruce lumber ; Douglas fir ; hemlock lumber ; mahogany lumber ; logs ; logging ; locust treenails ; windows and doors : birch logging ; rosin ; lumber, retailing ; boxes and barrels; wood pulp; sulphite pulp; newsprint paper; book paper; envelopes; stationery; chip board; container board; acetone; acetate of lime; alcohol; sulphur; sulphuric acid ; caustic soda ; chloride of lime ; soda ash ; bicarbonate of soda ; wash- ing soda ; liquid chlorine ; calcium chloride ; hydrochloric acid ; glycerin ; pintsch gas ; cottonseed crushing ; cotton ginning ; cotton compressing ; cotton linters ; cotton yarn ; cotton duck ; shelter tent cluck ; tape and webbing ; sheetings ; denims ; gauze ; towels; wool, wholesaling; woolens, wholesaling; rags, wholesaling; kersey lined breeches ; sheepskins, importing ; hides, wholesaling ; sole leather ; black harness leather ; calf upper leather ; kip upper leather ; side upper leather ; boots and shoes ; boots and shoes, retailing ; slaughtering ; meat and by-products ; lard rendering ; lard substitutes ; milk; grain, wholesaling ; flour; flour, jobbing; bread; canned vegetables; canned fruits; canned meat; canned fish; canned milk; canned condiments; dried fruits; smoking tobacco ; chewing tobacco ; cigarettes ; oil tanker transportation ; towing ; ship- building, accounting, 384 HISTORY OF PRICES DURING THE WAR. Less difficulty would have been encountered in finding a single unit cost of production for each commodity controlled, perhaps, had the whole of each commodity been produced by one company. It was relatively simple to represent the cost of producing a pound of nickel or of aluminum in this country because the output of each was virtually controlled by a single concern. But the cost of producing a ton of pig iron varied from $18.14 to $45.72 in September, 1918, according to figures collected by the Federal Trade Commission. The cost of producing a ton of beehive coke varied, in like manner with different producers, from $2.93 to $11.45. The cost of produc- ing a ton of anthracite coal within the Pennsylvania district varied from $2.64 per ton to $7.06. An excellent example in the diversity of unit costs is brought out by the Federal Trade Commission report upon the costs of producing rosin, which show a variation in the per cent of margin on investment running for different companies from 10.7 per cent to 275.1 per cent. 1 The price-fixing committee gave considerable thought to this problem, and endeavored carefully to determine whether it would be better to fix upon a set margin of profit above cost and thus fix a different price for each producer, or select a point somewhere between and make that single fixed price applicable alike to the low-cost and high-cost producer. There did not appear during the whole war a more intelligent in- quiry into the problem provoked by a difference in cost between pro- ducers than that initiated by Mr. Kobert S. Brookings as chairman of the price-fixing committee. Mr. Brookings, early in September 1 Federal Trade Commission figures, covering first 10 or 11 months of 1918: ROSIN [Production margin, based on average sales value.] <* Company. Barrels produced, 280.a Sales value produc- tion (per barrel). Cost of produc- tion and market- ing ex- pense(per barrel). Margin (per bar- rel). Invest- ment (per barrel). Per cent of mar- gin on invest- ment. No 1 b 5 991 10 69 10 087 lower cost and hence, under fixed price, to greater profit. The higher the Nprices^the sooner the excess-profit point is arrived at, and as production con- jj timies the more rapidly the successive stages of surtax are arrived at. The . /higher the tax the lower the net profit becomes, and the inducement, is not 7 A not to increase production but rather to curtail it in order to avoid get- y* ting into the class of maximum tax. To illustrate this we might take a single ..^ basic commodity for example, coal and any rule that would apply to con! 4 would apply equally to iron ore and lumber, and other basic commodities and their products. Taking the case of coal, suppose a given mine produces a million tons of coal per year in normal or peace times, and earned an average of 10 cents per ton net profit. Its net profit per million tons of coal would then be $100,000. Suppose in war times, under regulation, and with excess-profit tax operating, this mine produced its million tons, was allowed 2_per__cenj; net operating - profit, and by so doing arrived at 30 per cent excess-profit tax rate. It would then earn $200.000 net operating profit, pay $60,000 excess-profit tax, and keep $140,000 as divisible profit. Suppose the production of this mine were doubled and the resulting profit (capital investment remaining the same) caused it to go to an 80 per cent excess-profit tax rate. It would earn on the second million tons (the stimu- lated production) a gross profit of $200.000, on which its excess-profit tax would be $160,000, and the divisible profit (the only real profit) remaining would be but $40,000. Clearly, in the absence of any other consideration, the mine would earn $40,000, leaving the second million tons of coal in the ground J until the return of peace, when it could be mined at the peace-time rate of / profit (10 cents) with the resulting divisible profit of $100,000. GOVERNMENT CONTROL OVER PRICES. .. 391 or *y *** %* *ko up?**** W * tfaory* I dissent whoHy and entirely from the theory that excess-profit taxes justify unreasonable m-ice structures and purge unreasonable profits. Not a penny of excess-profit tax^has been or will be paid to the Government that has not first been collected with many other pennies irona the people of the counjtry, either as consumers or as taxpayers. Since the Government itself is by far the largest of all buyers at fixed prices, it seems to be absurd to take an excess dollar out of the Treasury in order to get 34 cents of it back by way of excess-profit taxes. The net result of such a transaction is merely creating the necessity of raising an otherwise unnecessary 66 cents by some other means of taxation or by bond sale. In the main, it is not industry which ultimately pays excess-profit taxes, but the consumer, and only a small part of the excess which the consumer pays reaches the Treasury in the form of taxes. The whole excess-profit tax theory is an attempt to lift oneself by his boot- straps, and there is lost from 20 to SO per cent of the energy employed in the process. A referendum taken by the National Chamber of Commerce was practically unanimous in favor of taking no excess profi^ during the war. Taking this as a representative judgment of the business world, it would seem that the per- plexing problem of dealing with excess profits would be solved by having no excess profits with which to deal. To take the referendum of the National Chamber of Commerce at its face value and apply it would probably draw forth some hoarse cries. As a group, men are patriotic ; as indivJdual&JJLLfiy will pay as small a tax as can be calcu- lated and will secure as high prices and as great profits as can be extracted. High excess-profit taxes themselves have a bad effect on business men. They nourish a feeling that the Government is wasteful, and, as a result, tax evasions do not carry any particular feeling of guilt. When tax evasion takes the form of padded and increased costs, of lavish expenditures made for the sole purpose of reducing the rate of profit, the result must be detrimental to the maximum production at maximum efficiency. The business organization is softened by bad practice and by unbusinesslike methods, and while it holds to such un- healthy practices it can not maintain the highest degree of efficiency. The purchasing power of our money and credit as well as that of our allies would be restored by a lowered price structure; tax dollars would each buy more nearly a hundred cents' worth of goods; the Government would need to collect fewer dollars in taxes and sell fewer bonds; and the public, relieved of profiteering (I do not use the word "profiteering" invidiously, at this time), would be able to produce the required tax money and bond money since their buying power, which is not absorbed by the mere expense of keeping alive, would be left free in large proportion to be dedicated to the service of the Nation. If the inflated price structure were brought back to an approximation of normal, and if 100-cent dollars were substituted for the 40-cent dollars we are now using, many of the problems which perplex and much of the rising discontent would be disposed of. The single-price fixed so high as to make profitable the high-cost marginal producer has, as I have said, a vicious effect on business itself. The reflex shows itself in tax evasions and, worst of all, in inviting and encouraging wasteful and extravagant business operations. When a business reaches the point that its excess-profit tax will operate to take away a considerable part of its earnings, it inevitably is tempted (and in many cases the temptation has proven irresistible) to spend extraordinary sums in unnecessary expenditures. These take the form of advertising looking to the building up of present or future good will, or repairs and betterments not presently needed or made with an eye to the future and in anticipation of a return to peace-time basis. Further, expenditures are lavishly made by big con- 392 HISTORY OF PRICES DURING THE WAR. corns out of rapidly accumulating surpluses which are in the nature of strategic advances upon other weaker competitors and which, upon a return to peace- time basis, will tend to result in a permanent elimination of weaker competitors and the rapid extension of monopolistic conditions. These expenditures are made on the theory that out of every dollar so spent, the Government itself contributes anywhere from 20 to 80 cents of the cost. The whole purpose of price fixing and of tax legislation is not to raise revenue but to win the war. That is the single aim of all these activities. Any device which interferes with that aim is conceived in error. Having gotten this rather long preamble behind us, let us now consider what may be done with respect to iron and steel. In the first place, the Steel Corporation, through its control of a large part of the railroad transportation at the head of the Lakes, was able to levy a toll on the bulk of the iron ore produced in the country. Just as in the case of anthra- cite coal, in which a plan was worked out where the profit in anthracite coal lay in many cases not in mining it but in its transportation to market, so in the case of iron ore, the mining of toe ore itself was often relatively unprofitable while the transportation of the ore by rail was made to yield enormous profit. The anthracite railroads owned a great many of the anthracite mines; they often mined practically at a loss, transporting the coal at an enormous profit, and competitors were compelled to mine at the lowest possible margin and all the natural profits were absorbed by the transportation companies as freight. The railroads of the country, aside from .the Government itself, are the greatest consumers of iron and steel products. The Railroad Administration now has in its control the ore-carrying roads of the Northwest. If the iron ore were carried to market at a price which would represent just about the cost of the service, the resulting total railroad revenue for the whole country would show a very slight decrease, but if this loss in freight revenue and consequent saving in cost of ore at furnace were carried on through the iron and steel price structure, the railroads would undoubtedly get back several times over, by reason of lowered cost of materials, such shrinkage in freight earnings. This would apply also, perhaps, to a readjustment of freight rates with respect to coke, and possibly for coal also, at least in certain cases, for example, such rates as apply to Bethlehem on ore, coal, and coke. Bethlehem might be made a fairly low-cost production, instead of which Bethlehem now puts the entire steel industry out of harmony and is the chief disturbing factor in our problem. Rather than permit Bethlehem to upset the whole steel industry, it might well be operated on Government account and so be removed from the equation. As we see the enormous spreads in the various production costs of pig iron, end as we see these spreads grow as the fabrication of the material is carried forward, it seems apparent that if some device could be found whereby opera- tions could be started at one or more points from a level, the problem would be simplified. The main objection to a variety ^of buying prices and a composite selling price is that it penalizes efficiency and bonuses inefficiency. But the excess profit tax does this very thing, frankly and unashamedly. That is what the excess profit tax, taken together with high prices, is penalty for efficiency and by contrast a subsidy for inefficiency. Suppose we were seeking for a real stabilization ; let us take iron and steel as our example. If at vital points equitable levels could be arrived at, we could have a fair basis from which, particularly in an effort to stimulate pro- duction, to keep prices relatively normal, to directly reward efficiency and by contrast to penalize inefficiency. GOVERNMENT CONTROL OVER PRICES. 393 Suppose in iron and steel all the iron ore were taken over by the. Govern- ment at varying prices to be determined by adding to a reasonable cost of production a just and reasonable profit. The iron ore from the various ore- producing fields purchased at varying prices would be pooled and result in a composite price for each consuming field, so that, so far as the ore price is concerned, all furnaces would start on an equality. There would remain the 'differential of transportation, and -absolute equality could be secured by de- livering ore to the various furnaces at a uniform price which would include transportation. In other words, pool not only the ore price but the trans- portation charge. Now we would have all furnaces in a given field starting on an equality as to their ore. Similarly let the Government buy all the coke at varying prices and dis- tribute it at a composite price which would absorb freight differentials. Now we come to the calculation of the profit per ton. There should be an a^^eed upon per-ton profit, but this should be used only as a basis, because, as we shall see, equity would require certain differentials not difficult to calculate. First : Equity as between producers requires consideration of the amount of the investment and of its character. For instance, it is often found that a low-furnace cost has only been obtained by the expense of a high investment per ton of output, while frequently a high-furnace cost may be coupled with a low investment. It is obvious that the application of a uniform unit profit without reasonable consideration and scrutiny of investment will be inequitable. This calculation of unit profit based on investment would also run with respect to the ore mines and coke ovens, and the same theory might well be carried on through the more advanced stages of the fabrication. Data suf- ficient for giving consideration to varying per-ton investments are not so difficult to arrive at as would appear. Book costs of investment less depre- ciation is presumably shown in more or less satisfactory form on the books of practically every company. Most of them also have the revaluation as of 1913 permitted under the internal revenue law. These give bases of comparison between companies and reveal the. cases of high investment per unit of output, so that such cases may be easily isolated and intensively studied. Before going into a discussion of the mechanism of a pooling device, I wish to suggest some devices for encouraging volume and economy of pro- duction. These may be. set down as follows : After determining a tentative cost price by considering monthly production costs and adding a unit profit as modified by the legitimate unit investment and then adding a small charge to take care of the operation of the pool: First. Make a further profit addition based upon a showing of decreased operating costs. For example, if cost is reduced a dollar per unit, allow 50 cents to go to additional profit and 50 cents to lowering price. Second. Similarly penalize unwarranted increases in cost by deducting them from allowed profit. The deduction could be continued to a point of ex- tinguishing the profit if the production can be dispensed with or can not bei secured by transfer of labor, material, and cars to lower-cost operations. Third. Allow an increase in profit as a return for supernormal production; jillowance to be generous but apply only to the tonnage_that is above normal production. Fourth. Allow a substantial wage bonus to labor in return for continuous working. The fourth point would best be elaborated a bit. Suppose a laborer re- ceived 50 cents an hour; after he had worked 15 consecutive working days, 394 HISTORY OF PRICES DURING THE WAR. set his wages at 55 cents per hour for so long thereafter as he continues to work without interruption. Voluntary loss of time would return him to the 50-cent wage, where he would remain until he had again worked 15 consecutive days. Holiday work might well be counted as double time (as two days for each holiday) in earning a place in the bonus class. In case of involuntary idleness, forced by lack of material, car shortage, accident, or any other cause beyond the workman's control, such idle days should not be held to demote him from the bonus class, Now for the pooling plan : The pool organization would make use of all existing agencies of production and distribution. There need be no resulting dislocation of trade. Transactions would be exactly as now; orders taking the same course ex- cept when, as now, through priority orders or for ton-mile or other trans- portation or economic reasons, the pool manager might otherwise direct. The ore or the coke or the pig iron would be billed out in the name of the Govern- ment pool, to the immediate purchaser at the pool price, and at the same mo- ment the mine or oven or furnace would bill the Government pool for the same quantity and -quality at the price fixed for that particular mine, oven, or furnace. The pool \vould settle monthly with each mine, oven, or furnace for all material shipped. There would be added to the price paid the pro- ducer such small margin as would care for the expenses and hazard of the pool. A surprisingly small initial working capital would be required and it would be in the nature of a revolving fund, augmented by any net profits which might accrue to the pool as time passed. The pool (the Government) would have ownership of the material only for the instant of time when the title passed from the producer through the pool to the immediate purchaser, but that instant of ownership would be absolute ownership. I am saying that the single-price theory has failed in practice. We have seen unduly high prices raised and raised again on the representation of fear of future increase in costs, and, as industries are interrelated and buy and sell from and to each other, and as we raise one because it anticipates an increase in cost, and raise others on the same anticipation, these raises, reacting, tend to justify the darkest fears. In other words, business oonporn^ are busy 7 skinning each other and the publicand the Government is paying for the hide that i!Tremo?eTt: With respect to iron and steel, all these considerations seem to argue that a number of changes in policy might well be adopted at this time. First. Reduce the rail freight rate on iron ore to a figure which would repre- sent the cost of the service and a fair average transportation profit; also con- trol lake freight rates. I Second. Have the Government buy all iron ore and distribute it to econom- ically efficient furnaces at a composite price which shall likewise absorb trans- portation charges. Third. Treat coke the same as iron ore by pooling it and distributing it at a uniform price, absorbing transportation charges, Fourth. Buy all pig iron through the Government pool and distribute it at a uniform price, absorbing freight differentials. Fifth. From this point seek to establish no other composite price through pooling except in such cases as where the Government buys practically the total output, as in the case of rails, ship material, munitions, etc. In such cases apply the pooling system and distribute the surplus to the public at a composite price. Sixth. Secure stimulated production by generously increasing the profit on all \ tonnage produced above the normal production as shown by recent experience, and similarly reward efficiency and lowering of costs, as set forth above. GOVERNMENT CONTROL OVER PRICES. 395 Looking: forward to the post-war contest for world markets, a present and determined effort to return to normal would seem to be prudent. 5. Mr. W. F. Grephart, Federal food administrator in Missouri, wrote the following memorandum 011 the " Governmental Policy of Fixing One versus Several Prices on a Single Commodity : " It is assumed in the statement which follows: First, that there are several competitors producing the commodity with different costs of production ; second, that in the system of taxation there is an excess profits tax or income tax of a character which will enable the Government, if it so desires, to reduce the larger profits of those producers who are able to produce well under the single-fixed price. The following reasons may be urged in favor of a single- fixed price : 1. It is in harmony with the present organization of industry, one of whose chief characteristics is competition. This is true because the primary justi- fications of the competitive system is that a premium is placed on most efficient production. The inefficient man is, in time, compelled because of his high costs to go out of business in favor of the more efficient, and the public secures the benefit of low-cost production. Yet, under a single-price system, the price must necessarily be fixed at the particular time, at or near the cost of produc- tion of that producer who has the highest costs, because his production is necessary in order to secure the desired supply or quantity. At the same time, the more efficient producers are encouraged by their liberal margins of profit to increase their output. There is thus an opportunity for tha Govern- ment to do one of two things, or to do, in part, both of two things: First, the Government may take all or a large part of whatever is excess profit; or it may, when the production capacity of the more efficient plants has increased, readjust its one fixed price on a lower level, thus securing for society the advantage of a lower price and maintaining all the beneficial efforts of a normal competitive condition. It may be urged that the more efficient producers under the above condi- tions will not increase their output and thus make possible the elimination of the less efficient, but such a result does not occur in actual business. It may also be urged that the less efficient should not be put out of business, but this is what actually occurs in normal times, and in addition, by the intervention of the Government in stabilizing the price on the basis of this less efficient producer, the Government protects him for a period, thus giving him every opportunity to improve his business and reduce costs. In addition, there is under the present industrial organization and legal system no vested right of any producer to remain in business, especially if he can not render society a service in fair costs of production. 2. The single-price system is much less complex and more easily administered. It is a very difficult and often an impossible task to determine production costs for the many different producers of a commodity. No two costs would be the same, and in an industry where there are many different producers, it would take many months to arrive at approximate costs. Then again changes in costs, which at the present time are marked, would require frequent and com- plete readjustment of the price schedules for the different producers. Again, the multiple or several-price system would result in a static condition in the industry. Every one would continue as a producer, whether or not his costs would entitle him to remain. 3. A multiple or several-price policy might have inequitable results on war tax- ation. This is true because these various prices would be fixed so that no 396 HISTORY OF PRICES DURING THE WAR. excess margin of profit would be left to the producers. That is to say, the Public Treasury would receive little or no tax from this particular source to be expended in whatever form of public expenditure it desired; the consumers of this par- ticular commodity, under a varying-price system might escape their just share of taxes. Under a single-price system the higher prices which they may pay for the product goes in larger part into the Public Treasury in the form of taxes. 4. Under a several-price system large opportunity is given for comparisons which is likely to embarrass the Government. One producer thinks another is allowed an unfair margin. Another complains that his costs are increasing and desires a larger margin. No one of the producers has any great inducement to reduce costs under the static conditions of several prices. 5. Whether or not the numerous prices would be constitutional is primarily a question for the courts, but in any event there is in such a policy a large element of inequality. It is taking as a permanent measuring unit for the in- dustry the least efficient and penalizing the more efficient. However important it is in these war times to stabilize certain prices for certain essential products this should not be undertaken at the expense of stabilizing industrial organiza- tion. No policy of price fixing can be successful except as it is established for short periods. Adjustments must be made and therefore a multiple-price system makes such adjustments much more difficult, even assuming that the the original system be successfully established. 6. On the basis of my experience as a Food Administrator in fixing food prices through the interpretation of fair prices, it seems fairly clear that any system of fixed prices must be simple and most easily administered if it is to have a large measure of success; second, that spreads in prices or different prices always tend in their actual workings to encourage the perpetuation of high prices. In our work we quote only one price on each commodity of the same grade. 6. Mr. H. M. Charming, chief of the legal section of the War In- dustries Board, wrote the following memorandum on " General Price Fixation on Cost Basis:" We have been asked for an expression of opinion on the following problem. In determining a general price for certain staple commodities such, for example, as copper or steel, it is apt to appear that there is quite a wide range between the costs of the principal producers. It may, nevertheless, be essential to maintain the production of the higher-cost concerns, and also at the same time may be thought desirable to avoid paying inordinately large profits to the low- cost members of the industry. It has been suggested, and the idea strongly attracts many people, that prices for certain products be determined upon the basis of individual cost, allowing substantially the same profits to all whose production is requisite. BY AGREEMENT. The price-fixing committee operates either by means of agreement or in an advisory capacity to the purchasing departments. The committee can, with considerable freedom, enter into agreement with producers to adopt any basis of price fixation which may be acquiesced in by substantially all of them. It is not perfectly clear that the low-cost producer who has refused to agree to sell his product at cost plus a fixed profit could not make a fairly plausible claim that an arrangement of this character, entered into between the other pro- ducers and the price-fixing committee (acting in concert with intending pur- chasers), would constitute an unreasonable restraint of trade. We incline, GOVERNMENT CONTROL OVER PRICES. 397 however, to the opinion that such an arrangement would be upheld by the courts as a reasonable restraint. Failing agreement the Government would, of necessity, resort to its affirma- tive powers. These powers would be (a) to requisition existing goods; (&) to commandeer future production ; (c) to take over and operate the plants them- selves. (A) REQUISITION OF EXISTING GOODS. We have in a previous memorandum to you expressed the opinion that the measure of just compensation for existing property requisitioned would be the fair market value of such property, subject to certain qualifications which we believe would exist in the absence of a fair market. It would follow that the individual cost plus a profit probably would not be the measure adopted by the courts to determine compensation for such property. (B) COMPULSORY ORDERS FOR FUTURE PRODUCTION. With relation to compulsory orders for production of ordinary staple com- modities, such as copper or standard steel plates, as we construe the statutes, there is contemplated a taking of the finished commodity rather than an order for involuntary performance of service (national defense act of June 3, 1916, sec. 120 ; naval appropriation act of July 1, 1918, p. 18. The language used in the statutes, and the clearer constitutionality which would result from the first construction, tend to bring us to our conclusions, although there might be commandeer orders issued which would approach very closely orders for the performance of services. Under our views compulsory orders require the delivery of a finished product, and the measure of just compensation would be substantially the same as for existing property requisitioned the fair value of the product. We should qualify this statement by the opinion, earlier expressed to your committee, that the highest cost producer could not be compelled to work at jsn absolute loss. The burden would probably rest upon him to establish that what would be fair value and just compensation for the rest of the industry would not be just compensation to him. In time of shortage it may be neces- sary to compel many such producers to operate and to pay them in excess of the actual value of their product. Of course, some differentials based on local conditions might properly be made. Market values in one part of the country often vary from those in other parts of the country, and the same considerations which affect market values might properly be taken into account in the determination of just com- pensation or in price fixation. Although a good deal of argument can be made on the other side of the question, we are unable to advise the price-fixing committee that under com- pulsory orders, dissatisfied producers would not be able ultimately to recover through the courts compensation based upon fair market value or its equiva- lent. (C) TAKING OVER PLANTS. Under certain conditions the Government has the power to take over plants. Where the Government does take over and operate a plant the compensation is not based at all either upon market value of the product or upon the cost of production, but is established as just compensation for use of the plant, which, in turn, is arrived at through the medium of market value of plant appurte- nances. 398 HISTORY OF PRICES DURING THE WAR. In conclusion we would say that although in some industries it might be possible to obtain the required volume of production upon a cost basis without creating litigation, it appears to us, from a legal standpoint, highly desirably to avoid the difficulties which are apt to attend the cost basis of price deter- mination, and to adhere, so far as practicable, to the flat-price basis. 7. Mr. Robert S. Brookings, chairman of the price-fixing com- mittee, wrote the following memorandum on the question of fixing "One Price or Several Prices:" Referring to the discussion of one price or several prices and to avoid losing ourselves in a maze of abstract argument, suppose we simply investi- gate the steel situation to-day with the view of ascertaining whether or not any change in price or method is necessary or desirable. First. Have we any evidence under the present one-price system of any failure in efficiency ? I have never heard of any. On the contrary, the steel producers seem to have shown remarkable efficiency, and we hear only of shortage in coking coal, transportation, and blast furnace capacity, which the steel companies seem to be making every possible effort to improve, Second. Are the prices of steel, as fixed at present, abnormally high, as reflected in the profits of the lowest-cost producer? Careful computation would indicate that, at present market prices, the Steel Corporation will receive this year gross profits of about $420,000,000, of which the new excess profits and income taxes will absorb ,$247,500,000, leaving $172,500,000 or about nine per cent, on their investment of $1,887, 000,000. Of this sum, the Steel Corporation say they should set aside $36,000,000, or 2 per cent on their investment to take care of depreciation and replacement which the Federal Government will not permit them to deduct in figuring their excess profits taxes. While the Steel Corporation's costs are lower than those of the six or seven other companies which with it produce over 80 per cent of the steel, a careful comparison of the net results of -their year's business indicates that they all show as large a return on their investment as the Steel Cor- poration, which is, of course, accounted for by the ratio of their production to capital. It is also shown that the so-called nuirfber three or small companies special- ize largely in steel refinements and that their return on investment, a^ reported to us last year, was larger than the Steel Corporation's. We, therefore, find all steel companies practically on the same footing. It is then simply a question of whether or not the net returns on investment of 8 or 10 per cent in the steel industry are unreasonable as compared with other investment securities, taking into consideration the risks of manu- facturing. Third. Conceding as an abstract argument, however, that prices should not be made with any regard to the securing of excess profits taxes, and that the economic national health is best preserved by a low range of prices, inasmuch as the Government has formulated its revenue program for this year based upon large receipts from excess profits, would it be wise at the present time to propose any system of price fixing which would wipe out all excess profits? Or, in other words, even if the steel manufacturers were willing to practi- cally reduce the price of steel so as to wipe out the excess profits which I am sure they fire not should we encourage such a proposition? GOVERNMENT CONTROL OVER PRICES. 399 Referring to the detailed cost sheets presented by the Federal Trade Com- mission, I would briefly call attention to the following points: They have not yet finished their report on cost of ore, which they expect to have ready in a day or two. Their costs of coke, both beehive and by-product, for the month of June, as compared with the month of April (which we used at our May meeting) show practically no change. Referring to the pig-iron reports for the same months, the costs would also appear to be about the same. A study of the figures submitted to you will show that, as a matter of fact, the steel companies producing four-fifths of the entire steel product produce their own coke and pig iron, and have conse- quently little or no interest in the prices we may fix on raw material or semi- finished products. This reduces the interest in these items practically to the merchant pig- iron companies. You will notice from the report of these companies that they produce only about 200,000 tons of basic pig per month (and practically no Bessemer), which basic pig must necessarily go to the so-called No. 3 or smaller companies, which produce such refinements as to make the question of a dollar or two per ton on pig a not very vital matter. The balance of the merchants' companies' production (say 300,000 tons per month) is .foundry pig, which finds its market in products over which we have exercised little or no control in prices. It would seem therefore that our entire steel price-fixing problem is reduced to a question of whether or not there are any differentials in cost which the present range of prices makes burdensome to any important producers; and I have failed to find any evidence of this, except in the case of the Bethlehem Co. ; and we have no means of knowing whether, in the last analysis, it is burdensome to them until the Federal Trade Commission makes a special report on their costs and their Government contracts for shipbuilding and ordnance, with a view to ascertaining the facts. Notwithstanding Bethlehem's high costs, they seem to have made good profits last year, and I am told they are doing very well at the present time. P. S. It is quite probable that a few small merchant producers of basic pig and a larger proportion of producers of foundry pig will show that August costs will leave them no profit at present prices. So that we may have to consider an advance in pig iron, which would not affect steel prices, or else require the big integrated companies to absorb this production at a price which will maintain production, (5) PRICES FIXED ABOVE THE "BULK LINE" OF PRODUCTION. The theoretical arguments urged before the price-fixing ccmimittee in favor .of allowing each producer a set margin of profit above his individual cost of production soon gave way to the practical diffi- culties involved. The committee came to believe that any theory of determining fixed prices, akin to the cost-plus rule, made for en- couragement to the less efficient high-cost producers. There seemed no disposition to countenance a practice that would give the high- cost producer precisely the same war-time guarantee that accrued to the low-cost producer, since there was not at hand the enormous administrative machinery necessary to enforce a variable price. The 400 HISTORY OF PRICES DURING THE WAR. price-fixing committee and the Fuel Administration thereupon de- termined to throw overboard the niceties of the variable price, and to fix a flat price somewhere above the " bulk line " of production. The term " bulk line " of production, as it came into use during the war, meant the indispensable amount of any commodity that the war program required should be produced, and the " bulk line " of cost meant the unit cost to produce the last unit lot of that requirement by the marginal producer. It was the cost of production at the hands of this marginal or bulk line person usually which formed the basis for the price fixed. An arrangement of the costs of Beehive coke, for example, shows that there was a gradual shading in the cost of pro- duction, from $2.93 per ton by the lowest-cost producers to $11.45 per ton by the highest-cost producers. But it was found that these WtPE PPODUCEQ SEPTEMBER 1910 .* .9' ION COSTS DEB ENTASE OF THE. TOTAL QUTDUT PRODUCED AT COST SHOWN BY VERTICAL SCALE. Costs at which different portions of the output of coke, beehive, were produced in September, 1918. highest-cost producers had a capacity to supply only the last 10 per cent of maximum production, and that virtually 90 per cent of the possible output of the country would be sustained by fixing the price at $6 per ton. It was the unwritten rule both of the price-fixing com- mittee and the Fuel Administration to fix a price high enough to assure the output of about 85 or 90 per cent of the absolute maximum production of the country. It is of especial interest to study by way of example, the several production costs, which follow in table or chart form as reported by the Federal Trade Commission or the Tariff Commission, and the prevailing fixed prices for the same months. The Government fixed price of $32 per ton for basic pig iron in September, 1918, clearly was high enough to bring out over 90 per cent of the possible production. GOVERNMENT CONTROL OVER PRICES. 401 The base price of $73 per gross ton for forging ingots (open hearth) was apparently high enough to draw out virtually the whole pro- duction. Structural shapes were fixed at a point to encourage over 90 per cent of the production, and so, too, were plates. *so. 40. 3 !; KO. -o I 10. COSTS AT WHICH DIFFERENT PORTIONS OF THE OUTPUT OF PIG mow, BASIC WEH-E PHQDUCED rw SEPTEMBER 191S. *~ / 405.- 7 f JO. 20. < o ? 10. of. / Go ein, iveri t E ICC S 3^. o. / / / x f^- ? ^ s , . - - ;=^" _^- = -... J 10 20 . 30 40 50 60 7O 8O 9O 1O Percentages of the total out.pUt iu.4.atiii I protfuted at Boosts. showrx j>w vertical &cal . Costs at which different portions of the output of pig iron, basic, were produced in September, 1918. The two cost lines for Douglas fir lumber in Washington and Oregon show how the cost curve for October, 1918, ran above that of the spring previous. The previous maximum price of $26 per thou- sand was left unchanged, however, because the same output was no longer needed. 1 Data given by F. W. Taussig. 125547 20 26 402 HISTORY OF PRICES DURING THE WAR. The earlier fixed price for the 1917-18 crop of beet sugar of $147 per ton at New York, was found to afford adequate return for the ;:::L_ Costs at which different portions of the output DOUGLAS FIR were produced line for March and ftprll, 1918, the upper for October, 191! Percentage of total output' produced at various costs. -- '- '-" Costs at which different portions of the output of Douglas Or were produced in March, April, and October. 1018. production only of about 82 per cent of the crop. 1 The Food Admin- istration, therefore, after an investigation into the costs of producing- sugar beets, found it necessary later to increase the price to $176.40 COSTS at which different portion s of the o utput Tons produce d at various cost-s Costs at which different portions of the output of beet sugar were produced in 1917-18. per ton in order to cover costs for about 90 per cent of the forth- coming crop. 1 The 1917-18 crop of beet sugar was about 848,800 tons. GOVERNMENT CONTROL OVER PRICES. 403 UNITED STATES FUEL ADMINISTRATION . Average adjusted costs, bulk lines, and prices originally fixed for all bituminous coal districts charted during August and September, 1917, 37,357,000 tonnage, average of August and September, 1917. UNITED" STATES FUEL AQMINfSTRATtON _J Graphic chart showing cost of production of anthracite coal in Pennsylvania anthra- cite region during the period December, 1917, to May, 1918 ; reported cost, adjusted cost, tons reported by 83 operators, 33,039,655 ; tons, monthly average reported, 5,506,609. 404 HISTORY OF PRICES DURING THE WAR. COSTS FOUND BY THE FEDERAL TRADE COMMISSION FOR SEPTEMBER, 1918. BEEHIVE COKE. [Government price $6 per net ton.] Production cost per gross ton. Companies producing up to 00 per cent of total $2. 93-$4. 44 Companies producing over 60 to 70 per cent of total 4. 44 4. 99 Companies producing over 70 to 80 per cent of total 4. 99- 5. 44 Companies producing over 80 to 90 per cent of total 5. 44- 6. 47 Companies producing over. 90 to 100 per cent of total 6. 47-11. 45 PIG IRON (BASIC). [Government price $32 per ton.] Companies producing up to 60 per cent of total $18. 14-$22. OG Companies producing over 60 to 70 per cent of total- 22. 06- 24. 32 Companies producing over 70 to 80 per cent of total 24. 32- 25. 41 Companies producing over 80 to 90 per cent of total 25. 41- 27. 49 Companies producing over 90 to 100 per cent of total 27. 49- 45. 72 INGOTS (OPEN HEARTH). [Government price $73 per ton.] Companies producing up to CO per cent of total $30. 60-$33. 42 Companies producing over 60 to 70 per cent of total 33. 42- 35. 16 Companies producing over 70 to 80 per cent of total 35. 16- 39. 77 Companies producing over 80 to 90 per cent of total 39. 77- 41. 86 Companies producing over 90 to 100 per cent of total 41. 86- 66. 34 STRUCTURAL SHAPES. [Government price $3 per 100 pounds.] Companies producing up to 60 per cent of total $45. 54 Companies producing over 60 to 70 per cent of total- 45. 54-$49. 37 Companies producing over 70 to 80 per cent of total 49. 37- 52. 07 Companies producing over 80 to 90 per cent of total 52. 07- 57. 69 Companies producing over 90 to 100 per cent of total 57. 69- 76. 79 PLATES SHEARED. [Government price $3.25 per 100 pounds.] Companies producing up to 60 per cent of total $46. 30-$56. 80 Companies producing over 60 to 70 per cent of total 56. 80- 59. 56 Companies producing over 70 to 80 per cent of total 59. 56- Companies producing over 80 to 90 per cent of total 59. 56- 66. 28 Companies producing over 90 to 100 per cent of total 66. 28- 82. 25 MERCHANT BAR. [Government price $3.50 per 100 pounds.] Companies producing up to 60 per cent of total $44. 82-$48. 45 Companies producing over 60 to 70 per cent of total 48. 45- 48. 74 Companies producing over 70 to 80 per cent of total 48. 74- 53. 38 Companies producing over 80 to 90 per cent of total 53. 38- 68. 98 Companies producing over 90 to 100 per cent of total 68. 98- 87. 15 One of the most interesting studies of the relation of bulk line to the average costs and price fixed is afforded by the accompanying chart, representing the country-wide costs of producing anthracite and bituminous coal. The engineering committee of the Fuel Ad- ministration, after adjusting the reported costs, established a bulk line above which the Fuel Administrator personally allowed a per- cent of profit and fixed the price. The latter two charts pertain- ing to coal prices fixed are designed, of course, to show results for the country as a whole and are not the specific ones used by the Fuel GOVERNMENT CONTROL OVER PRICES. 405 Administration in setting prices. The price differentials for each district were actually determined by separate district charts, made, however, in precisely the same manner as these summary charts. KEY TO COST CHART OF BITUMINOUS COAL. State and district. Average tonnage, August- Septem- ber, 1917. Per cent total. Costs. Bulk line. Price fixed. Cumulative, per cent. Re- ported. Ad- justed. Aver- age cost. Bulk. Price. Alabama: No. 1 380,000 185,000 790,000 90,000 272,500 462.000 320,000 145,000 310,000 417, 500 5, 525, 000 1,770,000 140,000 410,000 475,000 658,000 1,135,000 900,000 240,000 130,000 950,000 17,000 40,000 261, 000 70,000 165,000 591,000 296,000 360,000 1,115,000 4,310,000 7, 225, 000 12,000 73,000 80,000 27,500 1,625,000 230,000 285,000 842,500 1,092,000 890,000 94,000 365,000 52,500 595,000 947, 500 1.02 .50 2.12 .24 .73 1.24 .86 .39 .83 1.12 14.40 4.74 .37 1.10 1.27 1.76 3.04 2.41 .64 .35 2.54 .04 .11 .70 .19 .44 1.59 .79 .96 2.99 11.87 19.35 .03 .19 .21 .07 4.35 .62 .76 2.26 2.93 2.38 .25 .98 .14 1.59 2.54 $1.47 2.49 1.87 1.86 2.50 2.04i 1.88 1.84J 2. 28J 1.86 1.481 1.58 2.42 2.14 2.16 1.43 1.54 2.02 2.03 2.47 1.89 2.38 1.47 1.55J 3.05i 2.38 1.61 2.11 1.61 1.50 1.95* 1.57 3.38 2.62 .83 2.15} .40 .83 2!l5 2 1.69 1.92 1.84* 1.56" $1.48 2.47 1.86 1.96 2.50| 1.96J 1.80 1.78 2.26J 1.83 1.50* 1.61" 2.44 2.16 2.21 1.46 1.60 1.91 2.09 2.47 1.89 2.17 1.55 1.73 3.15J 2.30 1.65 2.02 1.65 1.51 1.98 1.59 3.35 2.71 1.03 2.12J 1.31J 1.78 1.62| 1.65 1.75J 1.60 1.92 1.72 1.90 1.88 1.59J $1.68 2.75 2.14 2.16 2.90 2.20 1.84 1.84 2.40 2.00 1.66 1.80 2.60 2.40 2.40 1.65 1.80 2.25 2.40 2.80 2.20 2.25 1.70 1.78 3.54 2.67 1.80 2.35 1.95 1.65 2.22 1.70 3.83 3.00 1.25 2.13 1.60 2.01 1.90 1.80 2.00 1.90 2.05 2.00 2.15 2.02 1.80 $2.10 3.10 2.50 2.50 3.30 2.55 2.19 2.35 2.75 2.40 2.00 2.00 3.00 2.80 2.75 2.00 2.20 2.65 2.75 3.20 2.60 2.65 2.10 2.35 3.95 3.10 2.20 2.60 2.35 2.00 2.60 2.00 4.35 3.50 1.65 2.50 2.00 2.40 2.30 2.15 2.35 2.25 2.45 2.30 2.40 2.40 2.15 7.34 98.51 72.18 79.35 99.59 80.59 68.94 68.08 97.20 70.06 21.74 56.89 98.01 95.06 96.37 6.32 49.77 78.86 93.89 98.86 76.31 95.10 24.84 64.14 99.97 97.64 59.24 93. 25 60.20 24.73 92.. 46 44.19 100.00 99.78 .21 93.96 4.56 67.69 57.65 62.46 67.07 52.15 79.11 63.44 76.45 73.77 46.73 24.73 98.51 74.09 74.47 99.59 78.25 60.31 59.45 97.20 69.44 23.71 55.21 97.57 95.10 96.37 6.32 47.93 92.57 94.00 98.86 77.01 95.10 24.84 44.89 99.97 98.01 59.06 93.36 64.41 9.31 90.12 44.19 100.00 99.78 .21 71.97 4.56 70.06 63.45 57.47 68.32 62.69 71.90 65.39 74.23 71.65 50.47 48.82 98.51 74.23 74.47 99.59 75.71 54.59 64.43 96.10 69.44 23.71 47.80 97.57 97.20 95.27 6.32 57.63 93.36 94.00 98.86 78.25 90.95 48.93 64.04 99.97 98.01 59.22 90.91 65.39 9.31 90.12 43.06 100.00 99.78 .21 72.11 4.56 70.06 62.36 .53.73 68.32 61.60 72. 04 63.34 71.79 71.65 51.47 No 2 No 3 No 4 Colorado: Trinidad Lignite Illinois: No 1 Nos 2 and 5 .... Nos 3 4, and 6 Indiana Iowa: Appanoose Des Moines Kansas, Cherokee, and Crawford . . Kentucky: No. 2 (Tennessee and Virginia) . No. 3 (east Kentucky and east Tennessee) Missouri: No 1 No 2 Montana, Utah, and Wyoming North Dakota: North district South district Oklahoma: (See Arkansas.) McAllister Ohio: No. 1. (See West Virginia No. 9.) Nos 2 and 7 No. 3 Nos 4 and 6 No 5 No.8 Pennsylvania: No 1 central No 2 , southwest Tennessee. (See Kentucky.) Texas: Bituminous No 1 Bituminous No 2 Lignite Utah. (See Montana.) Virginia: (See Kentucky.) Upper Clinch West Virginia: No 1 , Pocahontas No 2 Tug River Nos. 3 and 4, Thacker and Kenova No 5 Logan No. 6, New River .... No. 7, Kanawha No. 9, Pomeroy... No. l6 . No. 11, Preston No. 11 , upper Potomac No. 12, Fairmont No. 13 including Pennsylvania ( No. 2). Wyoming. (See Montana.) 406 HISTORY OF PRICES DURING THE WAR. KEY TO COST CHART OF ANTHRACITE COAL. Ton- nage. Costs. Ad- justed standard per cent sizes. General. Company. Individual. Re- ported. Ad- justed. Per cent. Re- ported cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. Per .cent. Re- ported cum. Ad- justed cum. 145, 672 46,277 1,367 5,231 9,740 119, 637 80,389 2,799 13,438 14, 122 24,981 28,578 120,063 43,957 126,571 132,005 122,642 145, 292 143,369 279,040 69,850 266,955 31,226 212,932 88, 193 87,622 371, 192 315,537 450,209 204,78-3 376, 876 182, 572 198,420 26, 778 365, 160 337, 037 183,059 505, 178 639, 950 306, 519 417, 865 239, 712 228,806 214, 648 159, 284 30,404 484,884 184,142 99, 147 195, 067 255,547 108, 359 139, 848 102, 590 260, 069 310,445 83, 971 190, 071 100, 473 10, 764 112, 386 77, 261 16,014 51,076 24,815 94, 535 38,.a71 39,667 81,560 78, 899 65,090 28,722 12,919 365,099 37, 175 27, 960 242, 028 31.141 $4. 961 5.26 4.52 4.96 4.36 4.30 4.76 5.998 4.64 3.37 4.88 4.21 2.92 4.59 3.72 2.77 3.47 3.65 3.80 4.77 3.95 5.77 4.77 5.24 6.04 6.69 4.97 4.32 5.18 3.96 4.02 5.24 4.34 3.83 4.67 3.37 5.25 3.05 2.53 3.14 3.25 3.42 2.77 3.34 3.98 4.01 2.81 3.39 3.57 3.21 2.65 4.19 3.49 4.11 3.09 2.84 3.77 3.56 4.64 4.05 4.23 5.20 5.15 5.42 3l 19 5.05 3.65 4.64 5.06 3.91 5.07 5.22 3.17 4.00 3.41 2.87 3.80 $4.783 5.45 4.51 4.14 4.06 4.46 5.28 5.77 4.49 3.78 5.40 4.22 3.27 4.05 3.32 3.04 3.54 3.77 3.88 4.82 4.12 5.39 4.69 5.03 5.69 6.30 4.66 3.77 4.47 3.89 4.04 4.92 4,18 3.83 4.04 3.27 5.23 2.80 2.64 3.18 3.42 3.70 2.92 3.24 3.90 4.18 2.87 3.71 3.51 3.44 2.98 4.23 3.67 4.45 2.98 3.05 3.79 3.67 4.56 4.49 4.35 4.71 5.23 4.85 4.48 3.28 5.67 4.00 4.44 4.86 3.94 4.93 - 3.6 + 3.4 "~'6."92" + 4.5 : + 3.6 i + 11.1 - 0.5 + 13.2 + 6.8 + 10.8 + 0.1 + 5.3 + 1.0 -10.65 + 5.46 + 0.72 + 3.22 + 2.27 + 1.1 + 4.6 + 1.7 - 1.38 - 3.96 - 5.86 + 3.44 - 5.22 - 9.00 - 8. 51 - 3.63 0.18 - 3.59 5.95 - 5.98 - 7.72 - 3.10 1.70 8. 37 - 2.76 - 1.94 - 1.13 + 4.03 - 4.24 - 4.49 - 1.94 2.51 - 1.29 + 4.93 - 1.77 + 2.5 + 3.23 - 1.98 + 3.23 + 6.33 - 3. 74 + 0.87 + 0.65 1.35 - 1.9 + 10.7 + 4.7 - 3.0 + 4.4 - 9.5 + 4.3 + 1.1 + 16.9 + 2.7 - 2.0 - 3.1 + 3.7 - 2.6 + 1.8 0.44 .14 .01 .02 .03 .36 87.70 95.64 78.16 87.72 74.87 69.78 88.87 98.48 80.24 62.00 60.65 77.73 1.83 .58 .02 .07 .12 1.50 81.53 91.40 58.08 81.06 50.74 44.64 80.23 95.93 59.36 36.96 33.74 55.77 .01 .04 .04 .08 .09 .36 .13 .38 .40 .37 .44 .43 .84 .21 .81 .09 .64 .27 .27 1.12 .96 1.36 .62 1.14 . 55 .60 .81 1.11 1.02 .55 1.53 1.94 .93 1.26 .73 .69 .68 .48 .09 1.47 .56 .30 .59 .77 .33 .42 .31 .79 .94 .25 .58 .30 .03 .34 .23 .05 .15 .08 .29 .12 .12 98.64 80.49 29.62 85.64 67.60 12.13 79.66 44.28 5.44 35.26 41.70 48.48 84.77 55.39 98.63 84.86 94.40 98.94 99.91 89.36 71. 94 93.20 56.67 61.29 94.95 74.84 51.70 81.85 30.64 95.50 15.48 3.47 18.19 23.93 34.37 6.13 23.25 38.30 59.41 7.60 32.90 39.92 21.11 5.04 67.97 36.16 65.21 16.27 10.10 46.46 39.59 80.45 63.75 68.52 93.76 91.76 96.64 82.27 20.18 90.23 41.26 99.50 79.52 43.79 98.73 66.50 22.25 59.31 24.12 11.81 32.78 42.79 49.84 90.48 61.98 98.15 85.30 94.36 99.37 100.00 84.62 43.75 79.37 50.46 58.52 91.97 63.23 46.40 57.38 21.73 96.23 5.27 1.94 17.86 27. 58 40.14 7.98 19.98 31.53 64.54 6.74 41.86 30.21 28.55 9-54 68-07 38.28 76-96 8.77 12.75 44.04 38.86 81.20 79.48 72.11 86.80 95.68 91.42 79.45 23.13 99.10 52.17 .04 .17 .18 .31 .36 1.51 .55 97.23 65.38 8.03 77.10 39. 94 2.54 63.15 99.07 56.39 18.76 95.35 42.11 2.54 33.62 0.50 .53 .49 .58 .57 54.07 6.85 43.96 50.67 57.30 29.66 14.65 39.86 49.53 56.65 3.51 .88 74.80 27.71 84.21 36. 89 1.06 .12 .85 .35 .35 1.48 1.26 1.79 .82 1.50 .73 .79 1.07 1.46 1.34 .73 2.01 2.55 1.22 1.67 .96 .91 .86 .64 .12 1.93 .73 .40 .78 1.02 .43 .56 .41 1.04 1.24 .33 .76 99.16 88.12 95.60 99.51 100.00 91.19 79.07 94.75 65.92 71.00 96.33 82.58 61.42 86.82 37.87 97.06 19.64 4.58 21.90 29.08 42.78 7.76 34.77 67.68 68.78 9.69 40.84 48.49 25.37 6.32 76.12 45.15 73.80 20.68 14.22 65.74 48.09 99.15 91.23 95.59 99.65 100.00 90.34 50.79 86.85 57. 47 66.59 9413 70.73 53.62 65.09 27.37 97.80 6.9-4 2.55 20.96 34.22 47 59 59. 76 23.76 58.85 72.37 8.87 48.95 36.48 35. 49 11.65 75.92 45.14 84.69 10.63 15.89 51.12 45.90 1.26 .14 1.41 .97 .20 .64 .31 1.19 .48 .50 65.21 31.04 41.35 90.82 88.16 94.45 66.97 7.85 84.22 13.58 62.21 56.22 48.60 72.78 91.32 85.17 56.08 3.73 98. 53 26 91 .20 .09 53.25 90.62 52.05 92.68 .82 .36 22.08 85.85 26.41 88.12 3.53 4.19 3.60 3.24 4.01 - 2.61 - 8.24 - 9.95 - 2.51 + 0.2 1.11 .11 .08 .73 .09 19.30 59. 32 32.98 11.77 48.99 32.41 64.65 35.50 20.71 54.18 1.46 .15 .11 .96 23.36 68.66 40.95 15.18 39.37 72. 52 43.44 26.08 .39 21.26 23. OS GOVERNMENT CONTROL OVER PRICES. 407 KEY TO COST CHART OF ANTHRACITE COAI^-Continued. Ton- nage. Costs. Ad- justed standard per cent sizes. General. Company. Individual. Re- ported. Ad- justed. Per cent. Re- ported, cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. 163, 227 33, 476 396,962 82,638 55, 156 335,330 407, 650 382, 336 172, 128 217,662 181,620 153,522 108, 589 147,428 26.906 124, 125 88,528 97,534 208,745 161,504 187,028 195,007 157,978 159,271 72,448 227,685 113,817 284,953 184, 286 200,475 64,892 128,950 91,027 104, 168 53,842 132, 154 243, 729 244,470 145, 581 158, 148 312, 131 274, 155 176,881 98,414 166,047 116,247 300,277 136, 586 44,074 79,355 83, 152 30,582 156, 819 133,820 170,527 65,989 118, 130 10,252 115, 107 46,953 50,414 125, 122 59,541 169,394 29.577 112,689 81,969 97, 579 278,410 353,711 328,971 325,004 375,596 92,113 138, 344 272, 981 116,842 S3. 77 5.70 4.31 4.67 3.94 3.74 4.33 3.82 4.22 3.95 4.01 3.87 3.23 3.66 3.46 3.24 5.43 4.59 3.98 4.05 3.97 4.02 4.30 3.36 4.81 3.22 3.20 3.04 3.56 3.66 3.60 3.28 4.68 4.50 3.25 3.93 3.57 3.81 3.42 3.84 2.84 3.29 3.53 4.95 3.36 3.35 3.14 4.48 6.46 4.71 5.14 7.04 5.43 4.32 4.97 5.15 3.16 3.78 3.50 4.79 4.77 3.98 4.74 4.42 4.56 4.08 2.60 4.21 3.554 3.337 2.93 3.383 2.83 3.63 2.84 3.27 2.51 S3. 73 5.71 4.03 4.16 - 1.6 + 0.1 - 6.36 - 8.9 + 2.1 .49 .10 1.20 .25 46.21 97.82 70.98 80.74 42.35 99.49 56.27 62.63 2.05 .42 4.99 1.04 16.61 97.19 49.63 66.42 18.58 99.03 33.07 39.57 4.01 4.39 4.18 4.37 4.60 4.29 3.66 3.08 3.50 3.06 3.43 4.93 4.26 3.83 4.22 4.11 4.27 4.22 3.22 5.27 3.02 3.11 2.76 3.37 3.31 3.22 3.11 4.51 3.92 3.27 3.61 3.59 3.52 3.22 3.71 2.79 3.17 3.135 4.202 3. 335 3.526 3.44 4.45 6.01 4.71 5.54 6.11 5.37 + 5.51 + 2.08 + 7.8 + 2.3 + 14.81 + 5.75 - 6.0 - 4.81 - 5.11 -13.8 + 4.75 - 4.41 - 7.21 - 3.88 + 4.33 + 3.45 + 5.42 - 4.45 - 5.1 + 8.48 - 8.06 - 5.20 -11.44 5.81 - 9.43 -10. 54 7.01 - 3.46 -12.86 - 3.43 - 8.14 - 1.66 - 9.48 - 9.55 - 5.1 - 9.3 - 6.56 - 6.91 -11.84 - 4.25 - .93 + 4.3 - 1.6 - 2.7 1.01 1.23 1.16 .52 .66 .55 .46 .33 .45 .08 .38 .27 .30 .63 .49 .57 .59 .48 .48 .22 .69 .34 .86 .56 .61 .20 .30 .28 .32 .16 .40 .74 .74 .44 .48 .94 .83 .54 .30 .50 .35 .91 .41 .13 .24 .25 .09 .47 45.29 73.41 51.89 68.18 56.05 59.96 52.64 22.13 42.15 34.89 22.51 97.38 79.96 58.83 63.62 57.72 61.88 75.35 29.08 85.56 21.80 20.52 13.95 39.01 42.76 40.86 25.70 82.19 78.15 22.67 54.80 40.66 50.73 34.81 52.18 11.04 26.53 37.61 87.26 29.58 28.60 17.26 77.53 99.63 82.89 91.43 ICO. 00 97.11 54.09 74.77 64. 39 72.83 82.45 70.95 37.86 13.16 29.91 12.83 27.96 92.95 68.78 47.03 67.47 61.77 69.80 66.98 17.69 96.87 11.41 14.31 2.80 25.18 23.74 17.89 13.97 80.52 31.85 21.89 35.90 35.42 31.30 18.33 40.62 3.74 15.93 14.85 65.76 24.62 30.56 29.46 77.37 99.63 86.06 98.73 99.72 97.34 1.34 1.63 1.52 .69 .87 .72 .61 .43 .59 .11 .49 .35 .39 .83 .64 .75 .78 .63 .63 .29 .91 .45 1.14 .73 .80 .26 .51 .36 .42 .21 .53 .97 .97 .58 .63 1.24 1.09 .71 .39 .66 .46 55.41 80.70 60.35 77.20 65.10 69.50 62.66 26.71 51.26 43.47 27.20 97.76 85:36 68.51 73.39 67.04 72.32 83.21 35.87 88.41 26.28 24.50 17.63 47.33 52.06 49.72 31.41 87.18 84.59 27.41 63.73 49.46 58.83 43.36 62.05 12.98 32.50 46.60 89.71 36.53 35.23 62.46 82.80 72.25 80.23 88.86 78.83 44.58 16.43 36.08 16.20 34.71 94.48 76.85 54.45 75.49 69.94 77.63 74.85 22.06 98.09 14.12 17.94 3.69 1 31. 05 29.16 22.32 17.49 87.21 60.18 27.58 43.97 43.33 37.91 22.90 48.22 4.93 19.74 18.65 73.52 30.32 36.94 1 1 3.77 1.72 .55 1.00 1.05 .38 1.97 6.66 58.06 99.62 69.54 87.96 99.62 96.42 7.50 54.27 99.62 69.68 96.99 99.62 95.05 + 7.84 + 4.05 + 8.42 + 4 67 4.70 5.17 - 5.3 .52 88.24 85.82 2.14 83.74 68.68 4 32 4.06 3.85 4.62 4.92 4.15 4.94 4.71 4.65 4.20 3.14 4.72 3.651 3.591 3.241 4.057 3.41 4.05 3.09 3.58 3.18 + 2.87 +10.1 - 2.3 + 7.6 + 4.3 + 4.3 + 6.5 + 0.8 + 2.9 +10.6 +16.1 + 2.7 - 4.81 - 6.81 + 2.44 + 0. 21 - 0.98 - 8.65 - 3.5 - 0.92 .31 .35 .14 .15 38 .18 .51 .09 .34 .25 .30 .84 1.07 .96 .98 1.14 .28 .42 .83 .35 46.77 36.51 85.34 85.01 59.21 83.31 77.00 79.15 64.99 3.72 67.27 38.45 27.60 13.09 31.62 8.74 41.14 9.16 24.76 1.53 60.96 49.22 82.97 92.37 62.38 93.13 86.57 83.31 65.46 15.10 87.10 37.40 34.68 19.98 60.29 26.32 58.80 13.58 33.61 17.21 1.28 1.45 1.57 .63 .59 .75 2.13 .37 1.42 1 03 18.67 9.48 30.11 75.43 76.79 71.29 55.82 61.01 34.60 35.02 24.70 38.53 86.83 64.37 88.87 71.81 65.77 41.23 1.23 3.50 39.58 12.98 74.01 13.79- 1.41 1.31 1.30 1.50 .37 .55 1.09 .47 33.91 16.49 39.17 11.19 50.09 11.74 30.17 2.03 42.36 25.07 69s 19 32.55 66.96 16.98 40.95 21.43 408 HISTORY OF PRICES DURING THE WAR. KEY TO COST CHART OF ANTHRACITE COAL Continued. Ton- nage. Costs. Ad- justed standard per cent sizes. General. Company. Individual. Re- ported. Ad- justed. Per cent. Re- ported cum. Ad- justed cum. Ter cent. Re- ported cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. 390,540 180.871 90,599 160,034 52,709 186,552 219,333 92, 918 184, 978 97,621 204,465 126,562 157,015 182, 768 140,385 95,808 178, 191 134,340 153,685 248, 895 218, 248 134,502 93,589 120, 120 197, 200 174, 447 236,856 101,304 273, 180 141, 801 138,540 161,074 126,417 63,122 6,190 27, 844 216,696 37, 140 74,055 61,490 54,941 170,018 61,980 195, 548 37, 719 36,092 60,196 4,164 30,585 98, 443 108,625 84, 361 2,219 81, 621 8,284 41,100 234, 630 223, 779 140,087 142, 391 84, 102 100, 691 81,865 175, 310 124, 792 61,877 95, 610 132,657 "57,681 154, 153 79,014 79, 168 128,612 107,283 75,272 78,054 65. 957 $2.06 2.63 4.55 3.69 5.37 3.52 3.42 5.14 5.04 4.21 4.76 3.95 3.47 3.28 3.80 4.52 4.19 4.02 4.23 3.79 3.70 3.87 3.97 4.13 4.88 4.168 3.384 5.117 4.334 4.407 4.702 5.070 4.573 4.012 6.019 3.095 4.082 4.521 4.916 4.791 5.875 4.046 3.769 3.170 6.184 5.305 5.031 14.499 4.923 4.501 4.037 5.452 5.363 4.088 3.561 4.470 4.400 3.930 6.07 4.24 5.12 5.07 5.35 3.80 4.70 5.78 7.91 5.65 5.51 3.93 4.33 4.73 5.20 5.40 4.52 3.77 3.97 $2.99 2.89 4.22 3.84 4.59 3.90 3.80 4.78 5.13 4.43 4.38 4.05 4.02 3.67 3.70 4.69 4.33 4.25 4.19 3.86 4.79 4.03 4.45 4.28 4.83 4.213 4.003 5.144 4.412 4.570 + 5.62 - 7.71 - 7.2 - 3.26 -12.9 + 4.86 + 3.33 - 3.91 - 2.79 - 0.76 - 5.2 + 2.90 + 6.63 + 8.24 - 5.73 + 1.1 - 0.92 - 0.47 - 0.88 - 3.71 - 5.38 - 0.85 + 4.51 - 2.49 - 3.71 - 5. 71 + 8.65 + 2.56 + 0.69 + .81 + 50 1.18 .55 .27 .48 .16 .56 .66 .28 .56 .30 .62 .38 .48 .55 .42 .29 .54 .41 .47 .75 .66 .41 .28 .36 .60 .53 .72 .31 .83 .49 1.18 4.27 79.06 43.24 96.17 37.07 33.64 91.71 90.11 67.57 83.93 55.18 35.74 25.31 48.90 78.79 66.64 62.29 69.09 47.52 43.90 53.05 57.15 65.57 86.24 66.10 32.34 91.18 74.24 76.49 10.72 7.29 67.74 48.12 81.79 51.05 45.12 88.43 95.31 76.65 73.45 59.18 54.66 39.41 44.46 85.21 71.77 68.48 65.12 48.87 89.53 55.07 78.01 70.16 91.08 66.41 52.89 95.62 75.84 81.63 1.56 .72 1.56 5.30 13.21 9.59 1.14 60.64 43.25 .64 .21 .74 .87 .37 .74 .39 .82 .50 .63 .73 .56 .38 .71 .54 .61 .99 .87 .54 .37 .48 .79 .70 .94 .40 1.09 .57 52.70 97.41 45.89 41.82 92.96 92.19 76.51 88.00 64.23 44.59 30.90 57.86 84.97 75.69 71.54 77.81 56.73 53.57 63.20 66.29 74.28 89.20 74.98 40.11 92.59 81.79 83.78 55.09 87.99 58.21 52.55 91.60 96.67 84.28 81.05 67.46 63.09 46.63 51.68 91.11 79.54 76.46 73.13 56.08 92.47 63.66 85.06 78.11 93.26 74.22 61.12 97.07 83.89 87.78 + 2.88 - .1 - .9 + .3 +23.7 - 7.2 + 10.9 - 0.5 - 0.9 + 0.3 + 12.0 - 4.4 - 3.64 -12.55 - 8.56 - 1.60 -12.47 -11.0 + 5.6 - 0.2 - 7.63 + 1.6 + 10.2 + 5.7 +14.9 + 2.23 - 5.6 -11.78 + 0.55 + 9.03 - 6.67 - 5.40 + 1.05 - 1.90 - 4.62 - 6.81 + 5.77 - 8.38 - 5.52 - 6.00 - 8.02 - 8.63 - 8.00 + 5.6 + 16.8 4-9.8 4.523 3.863 5.692 3.828 3.630 4.803 4.921 4.659 .38 .19 .02 .08 .66 .11 .22 .19 79.53 60.15 98.66 16.35 64.65 78.50 86. 46 85.20 80.90 49.41 99.39 47.11 36.56 89.64 92.59 83.50 1.59 .79 .08 .35 2.72 .47 .93 .77 68.30 30.90 97.31 2.89 37.32 59.50 78.03 76.20 60.95 25.49 98.61 21.05 10.22 80.70 87.76 66.54 4.420 4.008 3.273 5.410 4.851 4.950 5.00 4.381 4.669 4.057 5.036 5.205 4.637 3.901 4.210 4.50 3.71 5.27 4.27 5.59 4.73 4.92 3.84 4.61 5.51 7.06 5.97 5.02 3.81 4.07 4.28 4.75 4.97 4.77 4.40 4.36 .51 .19 .59 .11 .11 .18 .01 .09 .30 .33 .26 .01 .25 .03 .12 .71 .68 .42 .43 .25 .30 .25 .53 .38 63. 13 45.72 19.89 99.49 95.75 89.55 89.37 86.55 77.83 62.62 97.64 96.01 64.90 39.62 77.12 76.06 54. 40 99.37 69.42 90.87 90.53 96.00 48.05 82.65 76.35 53.08 22.84 98.34 91.27 93.31 93.64 73.54 84.92 60.62 94.62 95. 63 83.22 50.49 65.88 80.23 41.30 96.65 69.21 98.98 87.40 92.22 47.64 82.83 2.14 .78 33.18 17.39 52. 55 27.69 .78 .15 .14 .24 .02 .12 .39 .43 .34 24.14 99.66 97.20 91.45 91.21 89.32 84.17 72.75 98.10 28.36 99 30 93.40 84.72 94.74 81.17 90.73 67.89 95.93 .03 1.03 .10 .52 2.95 2.81 .76 .79 .06 .27 .03 2.20 1.57 92.46 38.35 13.08 56.34 53. 69 26.83 97.31 43.14 86.91 85.49 92.43 20.87 68.54 91.12 65.40 25.59 41.75 59.34 16.43 93.08 45.04 98.05 75.28 86.20 23.23 63.78 .08 .47 .24 .24 .33 .32 .23 .24 .20 97.72 53.72 72.18 83.13 93.53 96.49 78.39 45.53 56. 87 93.72 45. 59 61. 20 70.40 87.73 93.63 88. 15 75.01 72.31 .35 2.81 .99 1.00 1.37 1.35 .95 .98 .83 96.77 26.83 50.62 70. 54 89.85 93.81 59.03 14.56 28.54 90.57 20.70 36.01 46.04 76.63 90.22 78.40 50. 41 49.43 GOVERNMENT CONTROL OVER PRICES. 409 KEY TO COST CHART OF ANTHRACITE' COAL Continued. Ton- nage. Costs. Ad- justed standard per cent sizes. General. Company. Individual. Re- ported. Ad- justed. ttfe Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. 64. 023 41,316 238, 729 25. 565 91, 747 19,338 $4. 62 4.94 4.86 5.16 4.94 4.67 $4.76 5.13 4.97 4.83 4.31 4.18 + 3.2 + 3.8 + 6.2 + 6.0 -10.9 -10.6 . 19 80. 15 .13 86.96 87.92 94.75 .80 .52 63.95 78.55 77.45 91.09 .08 91. 84 . 28 S6. 83 .06 81.91 91. 16 71. 23 64.45 .32 1.15 .24 88.48 79.70 66.66 84.53 47.19 39.81 -' | It may be repeated that the price-fixing committee gave frank recognition to the fact that a determination to fix prices at the " bulk line *' would give the lowest-cost producers enormously large profits. They relied, however, upon the Government getting those profits through the operation of the excess-profits tax. Chairman Brookings gave voice to the sentiment that it made no especial difference to the Government whether these profits were held in check by the com- mittee or taken by tax. A considerable tax upon excess profits was already being collected in 1918, under the revenue act of 1917, upon the incomes of 1917, and one still higher was in prospect for the incomes of 1918. 1 (6) THE INTERPRETATION OF A " REASONABLE PROFIT." Once the " bulk line '' of production had been found and the cost necessary to protect enough producers to supply that amount, the technical difficulties of fixing any price were over. There remained then simply the allowance of a " reasonable " margin for profit above the " bulk-line " cost and the announcement of the price. The " bulk line " for coal, in the Fuel Administration, was located by a committee of technical experts who left, as a matter of policy, the determination of the fixed price above the " bulk line " to the Fuel Administrator in person. The price-fixing committee, which had no such technical assistance, roughly estimated their own " bulk lines " and fixed their own prices after conferences with the industry. The whole body of price-control boards at Washington, either care- fully or roughly, figured that the producer should have a " reasonable profit," though they were not in agreement as to what that profit should be. The President in his address to the mine operators and manu- facturers of the United States, on July 12, 1917, had said: A just price must, of course, be paid for everything the Government buys. By a just price I mean a price which will sustain the industries concerned 1 See "Price-Fixing as seen by a Price-Fixer," by F. W. Taussig in the Quarterly Journal of Economics, February, 1919. 410 HISTOKY OF PRICES DURING THE WAR. in a high state of efficiency, provide a living for those who conduct them, enable them to pay good wages, and make possible expansions of their enter- prises which will from time to time become necessary as the stupendous under- takings of the great war develop. It was left to each board, however, to determine upon the inter- pretation of their general principle and its application to specific controls. The price-fixing committee tried in a rough way to measure the prewar profits and, with that weapon in hand, they fought in con- ference for the opportunist policy most favorable to the Govern- ment upon which they and the industry could agree. They were compelled, for want of adequate legal powers, to accomplish their ends by resort to indirect methods and did not have the same relative success with all industries. There was not, therefore, established by the price-fixing committee, and given out to the public as their formal policy, any resolute or general rule with respect to what they considered a " reasonable profit." It was, indeed, not possible for them to formulate any such general policy by reason of various complications within certain industries. It has already been noted, for example, that the difficulties of negotiation made finally man- datory the approval of particular cotton-goods prices at figures more than 25 per cent above cost. A considerable emphasis has. already been given to the noteworthy work done by the Food Administration with respect to determining their " reasonable margin of profit." Mr. Herbert Hoover said over and again that no person was entitled to make more profit from any employment than he could have made under prewar conditions. He did not interpret this policy to mean, of course, that no licensee could charge more than a prewar price. The administration of his general policy gave form to three important aspects of rule: That the " reasonable margin of profit " must be figured upon a cost basis, the fixing of maximum margins of profit above that basis, and the disregard of replacement value in fixing margins. 12. THE LIFTING OF GOVERNMENT CONTROL OVER PRICES. The Government began lifting its war-time control over prices immediately after the signing of the armistice, and had, in fact, virtually restored prices to free competition by the end of 1918. Some controls were continued a short while beyond November 11, 1918, at requests from the industries to allow for gradual readjust- ment, or where it was required that particular transactions al- ready underway be completed. The War Industries Board told its commodity chiefs after the armistice was signed that the war was over, and repeatedly refused to enter into new regu- lations. It closed its doors to new business officially on Decem- ber 31, 1918. The price-fixing committee refused numerous re- quests to continue price fixing, in the main, and disbanded on March 1, 1919. The Fuel Ad- ministration relinquished its control over fuels and closed offi- cially all price control on Janu- ary 31, 1919. The Food Ad- ministration, though obliged to continue certain controls, such as wheat and sugar, lifted most of its regulations soon after the armistice. The War Trade Board continued its license con- trol over exports and imports somewhat longer than other boards continued price control, but closed its official work on June 30, 1919, and went into the State Department for liquidation. (i) THE EFFECT OF LIFTING CONTROL UPON PRICES. It is of especial significance, since most of the Government regu- lations over prices had been lifted by January 1, 1919, to inquire 411 "THE BUREAU OF LABOR. 5TAT&TTC5 INDEX NilMBLR ALL COMMODITES SEPARATED INTO CONTROLLED AND UNCONTROLLED FROM " AUGU5T,19I7TOMAY,1919 9-. 100). CONTROLLED * UNCONTROLLED, * ' 1917 | oia | 1319 | , , i ZAP' /S-'x _. p^l-j ^ 200 \ -./ r-'Vl / 160 ? "" jf** ' ;&o I ' KO ' T .IZO 100 60 - \ w \ 'ioia ."* 1919 I The Bureau of Labor Statistics index numbers. ' All commodities " sepa- rated into controlled and uncontrolled. By months, August, 1017, to May, 1919 (1913=100). 412 HISTORY OF PRICES DURING THE WAR. what then happened to prices. A succinct presentation of the effects of -lifting control upon the "All Commodities" index number of the Bureau of Labor Statistics is given here. There follows a separa- tion, extending from August, 1917, when control began, to May, 1919, of the series carried by the Bureau of Labor Statistics into con- trolled and uncontrolled commodities. 1 Beginning with August, 1917, all commodities carried by the .Bureau of Labor Statistics were divided into two groups one of commodities over which price control was exercised at some time during the war, and one of those over which no control was exercised. An index number for August, 1917, was figured for each series on a 1913 base, and subsequently the per cent of change each month from the preceding month was found and multiplied by the index number for the month used as a base. Thus, two new index numbers, one for controlled and one for uncontrolled commodities, were made from the Bureau of Labor Statistics "All Commodities " index num- ber,, and by the same method. The fact that the Bureau of Labor Statistics index number in July, 1917, was 185, and that the new con- trolled index number for August stood at 191 and the uncontrolled at 162, does not, of course, mean that controlled prices rose that month or that uncontrolled prices fell. The behavior of the index number of controlled commodities, after control had been lifted in January, 1919, would seem to indi- cate that regulation had held it in check. Once the regulations were removed, and in spite of the fact that war pressure had ceased, the index started upward and continued rising throughout the spring. The index number of uncontrolled commodities, which showed less stability during the war, underwent no such fluctuation or rise dur- ing the first half of 1919 as characterized the controlled index. There were so many new influences tending to determine the course of prices after control was lifted that no further generalization upon the effectiveness of war-time regulation can here be made. 1 The basis for determining which commodities were controlled and which were un- controlled was precisely that used in the making of controlled and uncontrolled indexes from the price section index number. It is easily possible, therefore, to check the com- modities carried by the Bureau of Labor Statistics against the list of commodities counted as controlled and uncontrolled in the following chapter and discover the separa- tion that is made here, GOVERNMENT CONTROL OVER PRICES. 413 THE BUREAU OF LABOR STATISTICS INDEX NUMBERS OF "ALL COMMODITIES " SEPARATED INTO CONTROLLED AND UNCONTROLLED COMMODITIES FROM JANUARY, 1914, TO MAY, 1919. [1913=100.] Uncontrolled January, 1914, to August, 1917. 1914 1915 1916 1917 January 100 99 99 98 98 98 99 102 103 99 98 97 98 100 99 99 100 99 101 100 98 101 102 105 110 111 114 116 118 118 119 123 127 133 143 146 150 155 160 171 181 184 185 184 February March . April May June .. July August September... . October November December 1917 1918 1919 Con- trolled. Uncon- trolled. Con- trolled. Uncon- trolled. Con- trolled. Uncon- trolled. January . . . 185 186 185 189 189 188 194 198 201 198 201 194 182 184 190 194 192 201 205 209 216 211 213 211 198 192 197 202 205 204 200 201 197 202 February March April... May... June . ... July August 191 189 182 183 181 162 158 168 173 176 September October November December (2) THE PURPOSE OF THE INDUSTRIAL CONFERENCE BOARD. Considerable anxiety arose within the Government and out, following the lifting of war-time control over prices, lest prices become unstable while readjusting themselves to peace-time condi- tions. The informal discussion held at Washington between high officials following the signing of the armistice developed a belief that the agreements relied upon during the war to hold prices down could be modified to meet the peace-time situation. The Cabinet was called into special meeting on February 5, 1919, and made plans for the creation of an industrial board. The industrial board, under the plan approved by the President, was to meet the representatives of industry and determine with them u fair prices " for the basic raw materials. These prices, it was thought, could be found by a study of cost and marketing data and could be agreed upon as during war time without resort to compul- sion. The personnel of the new board was announced by the Secre- tary of Commerce on March 10, 1919, and its seven members began work immediately. 414 HISTORY OF PRICES DURING THE WAR. The new board held numerous conferences during March with rep- resentatives of the more important industries and discussed the low- ering of prices. In several cases agreements were reached and the agreed " fair prices " announced. The strength of the board lay in part in the hope that it and offi- cials of the Government responsible for large purchases might work in absolute understanding. But on April 1, 1919, there arose a seri- ous difficulty in the refusal of the Railroad Administration to ac- cept the " agreed upon " prices set by the board for steel rails. There seemed no way of reaching an agreement between the Railroad Administration and the industrial board. The Attorney General announced, as his opinion, that the plan developed had no legal authority. The difficulties of various kinds, aggravated by the lack of statutory power, accumulated and the members of the board resigned as of May 12, 1919. The informal method of fixing prices had not proved as efficacious in peace time as during war. PART III. STATISTICAL DEVICES FOR MEASURING THE EFFECTS OF PRICE CONTROL. INTRODUCTION. A study of the extraordinary heights to which prices rose by August, 1917, and of the actions then begun by the Government to arrest them, prompts the inquiry how those actions affected prices. The search for a full answer leads into wide fields of study, depending upon the individual urge, and leaves the investigator at last with little more than opinion. Men differ in the objective points by which they judge whether price control was effective, and seek nothing so much as facts with which to support their own theories. This monograph nowhere ventures to establish or contest any theory of Government regulation. It presents simply the pertinent facts. There have been set up in the present chapter various statistical devices with which each person may for himself measure the effects of Govern- ment price control. It should be understood at the outset that no one can hope ever to measure precisely the effects of price control upon the general level of prices. The better price index numbers of commodities at wholesale, made from selected samples which are weighted to allow each commodity its proper influence upon the index, give an accurate enough record of the general price level. They show how wholesale prices actually moved during the war. But it can not be said, of course, to what further heights the prices would have carried these index numbers had there been no Government interference. It is possible only to look backward and analyze what did happen. The most useful analysis for students anxious to know the effects of con- trol is had by separating the controlled and uncontrolled commodi- ties in a general index number of prices and recomputing new in- dexes for each. The resulting devices make reliable measures of past relative rises of controlled and uncontrolled prices and at least suggest probable rises under free competition. 415 416 HISTORY OF PRICES DURING THE WAR. There have been made, and put into this chapter for each student to use as he will, the following statistical devices for measuring the effects of price control: A tabulation of the commodities controlled and uncontrolled each month showing the gradual extension of con- trol by an arrangement of the series in the Price Section index num- ber; index numbers of controlled and uncontrolled prices for "all commodities/' the 7 major groups and the 50 subclasses, running by months from 1913 to 1918, and showing their relative movements away from prewar levels; chain indexes of controlled and uncon- trolled prices for "all commodities," 7 major groups and selected subclasses, running by months from April, 1917, to the end of 1918, and showing in each month the rise or fall from the month preceding; the relative points below which 50 selected basic commodities were pegged; a comparison of controlled raw-material prices with their uncontrolled manufactures; a comparison of controlled prices of manufactured goods with their uncontrolled raw materials ; a com- parison of controlled raw material prices with their controlled manufactures; a comparison of controlled wholesale prices with corresponding controlled retail prices; and finally a comparison of war prices in the United States, England, France, and Canada. 1. THE GRADUAL EXTENSION OF PRICE CONTROL. It is of value, before attempting any measure of the effects of price control, to note the extent to whicK the Government brought com- modities under control. An analysis of the 1,366 typical commodi- ties at wholesale, which are included in the Price Section index number, shows that in September, 1917, only 3.66 per cent of them were controlled and the remaining 96.34 per cent uncontrolled. But by -the time the armistice was signed the Government had brought 41.95 per cent of these commodities under price control, while 58.05 per cent of them were still uncontrolled. The table which follows shows the commodities that were brought under con- trol each month during the war and the rate at which the list of controlled commodities increased and that of uncontrolled commodi- ties decreased. GOVERNMENT CONTROL OVER PRICES. 417 "ALL COMMODITIES." (1366 series=100 per cent.) Control began. Commodities. Number of series. Percentage of series. Con- trolled. Uncon- trolled. Con- trolled. Uncon- trolled. 1917. September October Coal, coke, copper, wheat, iron ore, pig iron, steel bars, steel shapes, steel plates 50 66 266 294 318 352 362 387 469 481 545 570 572 573 573 573 1316 1300 1100 1072 1048 1014 1004 979 897 885 821 7% 794 793 793 793 3.66 4.83 19.47 21.54 23.28 25.77 26.50 28.34 34.33 35.22 60.10 41.73 41.87 41.95 41.95 41.95 96.34 95.17 80.53 78.46 76.72 74.23 73.50 71.66 65.67 64.78 39.90 58.27 58.13 58.05 58.05 58.05 Steel blooms and billets, sheet bars, wire rods, skelp, sugar November December 1918. January Steel sheets, pipe, steel scrap, tinplate, lead, corn, oats, barley, fresh fruits and vegetables, live stock, poultry, fish, vegetable oils, southern or yellow pine, ammonia, smoke- less cannon powder Douglas fir, wood chemicals, Portland cement, remainder of iron and steel class Nitrate of soda, fertilizers, except sulphur and sulphuric acid February March Zinc, formaldehyde, toluol, arsenic, animal feeds, coffee Aluminum, binder twine, manila fiber Spruce, hemlock, nickel, quicksilver, silver, paper, caustic soda, soda ash, bleaching powder, carbon, tetrachloride . . . April May Wool, hides and skins, rubber, platinum, manganese, cotton, linters, quebracho Sulphuric and nitric acids, sulphur, harness leather Jimp July Cotton goods and cotton yarns, brick, build- ing tile, sand and gravel, crushed stone Woolen rags, glycerin, sole and belting leather, crude petroleum, kapoc August September October Silk waste Burlap November December The queries which press most persistently, on one seeking to measure effects of price control, are whether the commodities that were brought finally under regulation had risen relatively higher than others, whether the controlled commodities afterwards became more stable than the uncontrolled, and, finally, to what heights prices were allowed to rise before the Government began regulating them. These moot points can scarcely be settled in a manner that will permit of generalization upon the effects of control as a whole, except by the construction of a weighted index number for commodities that came under control some time during the war and another for those which did not. It is true that none of the commodities in such a controlled list would have come under price control before the summer of 1917, and some of them not until 1918. But, if one object of the inquiry is to determine whether the precontrol rises of commodities afterwards controlled were more threatening than rises of other commodities, this is the proper method to pursue. The index numbers presented here by months from January, 1913, to December, 1918, are not then strictly speaking for controlled and uncontrolled commodities as it is proposed to call them. They are, more specifically, an index number of representative commodities which were brought under price control some time before the signing of the armistice and an index number of other commodities equally representative which were not. 125547 20 27 418 HISTOKY OF PRICES DURING THE WAR. 2. THE PRICE SECTION WEIGHTED INDEX NUMBER SEP- ARATED INTO CONTROLLED AND UNCONTROLLED PRICES. The index number of wholesale prices made by the Price Section of the War Industries Board is, by all odds; the most comprehensive and best device for measuring war prices that has been used in this country. This index number contained prices for 1 ,366 of the most important individual commodities that were dealt in at wholesale during the war, classified into 7 major groups and 50 subclasses. These 1,366 commodities, for which the index number contains monthly, quarterly, and yearly prices from January, 1913, to Decem- ber, 1918, fall under one or another of the following 7 groups and 50 classes : I. Fooi> GROUP. 1. Feed and forage. 2. Wheat and wheat products. 3. Corn and corn products. 4. Oats, rice, buckwheat, and their products. 5. Barley, hops, rye, and their products. 6. Sugar and related products. 7. Vegetables and truck. 8. Edible vegetable oils. 9. Fruits, nuts, and wine. 10. Spices and condiments. 11. Tea, coffee, and cocoa. 12. Tobacco and tobacco products. 13. Live stock, meats, and fats. 14. Poultry and dairy products. 15. Fish and oysters. II. CLOTHING GROUP. 16. Cotton and cotton products. 17. Wool and wool products. 18. Silk and silk products. 19. Hides and skins and their products. 20. Hatters' fur and fur felt hats. 21 . Hair, bristles, and feathers. 22. Buttons. III. RUBBER, PAPER, AND FIBERS GROUP. 23. Rubber and rubber products. 24. Paper. 25. Fibers and fiber products. IV. METALS GROUP. 26. Iron, steel, and their products. 27. Ferroalloys, nonferrous and rare metals, V. FUELS GROUP. 28. Coal and coke. 29. Petroleum and its products. 30. Matches. VI. BUILDING MATERIALS GROUP. 31. Clay produces. 32. Sand and gravel. 33. Quarry products. 34. Cement. 35. Glass. 36. Lumber. 37. Paints and varnishes. VII. CHEMICALS GROUP. 38. Mineral acids. 39. Heavy chemicals. 40. Miscellaneous inorganic chemicals. 41. Fertilizers. 42. Soaps and glycerin. 43. Essential oils, flavoring, and per- fumery materials. 44. Wood distillation products and naval stores. 45. Natural dyestuffs and tanning chemi- cals. 46. Coal-tar crudes, intermediates, and dyes. 47. Drugs and pharmaceuticals. 48. Proprietary preparations. 49. Explosives. 50. Miscellaneous organic chemicals. GOVERNMENT CONTROL OVER PRICES. 419 The price series were, so to speak, laid upon a table and separated into those which some time came under price control and those which did not. The field of prices formally or informally controlled by the Government is infinitely wider and more indefinite than that covering simply the prices fixed. But an adequte measurement, covering all price regulations undertaken by the Government, requires that the broader interpretation of control be chosen. There was involved, therefore, considerable arbitrary judgment in determining whether certain prices were controlled. The use of the word control at any rate is consistent throughout this inquiry and it is doubtful whether the few exceptions which may be taken to the division made would materially affect the result. The 1,366 commodities were, as indicated, then separated into 573 controlled and 793 uncon- trolled commodities. (1) TABLES OF INDEX NUMBERS OF PRICES OF CONTROLLED AND UNCONTROLLED COMMODITIES. These 573 series of controlled wholesale prices and the 793 series of those uncontrolled, after classification under their proper groups and subclasses, were weighted by multiplying each individual series by the quantity of its 1917 production plus imports. That operation, designed to assign each commodity an influence upon the final index in proportion to its importance, gave 12 monthly, 4 quarterly and 1 yearly aggregate for each of the 1,366 series for each of the 6 years. These aggregates were then turned into relatives by allowing the average prewar aggregate (July 1, 1913, to June 30, 19i4,) to equal 100. There was thus made an index number for controlled and another for uncontrolled prices upon a prewar base. The slight dis- crepancy between the Price Section " all commodities" index number listed here as "all," and the controlled and uncontrolled indexes occurs because class weights were not used in making the latter. 1 It is of especial significance that the 573 series of the " all commod- ities" index, which the Government finally put under control, had risen much higher when control began than the remaining 793 uncon- trolled series. Indeed, just before the Government began control of them the index of these so-called controlled series reached 209, while the index for the uncontrolled series during the same month was only 160. But immediately after the beginning of control the index for the controlled series began to drop until by June, 1918, it was down to 189. The index of the uncontrolled series, 011 the other hand, continued steadily upward until October, 1918, when it reached 201. The controlled series likewise rose after June but never again reached the higher point to which they had climbed before control began. 1 On the use of class weights, see War Industries Board Price Bulletin No. 1, "Summary," by Wes- ley C. Mitchell. 420 HISTORY OF PRICES DURING THE WAR. The food prices that came finally under control during the war had risen to 194 when price control really set in, while the uncontrolled lot during that month had risen only to 150. The controlled food prices, which reached a peak of 200 in November, 1917, began dropping as control was extended until they were as low as 179 in June, 1918. They then started upward again during the latter half of 1918. The uncontrolled food prices, while at a lower level when food control set in, continued rising during the whole time that the controlled food prices were falling. Control within the clothing group began relatively late and the behavior of the controlled and uncon- trolled indexes is not greatly different. The effect of the controlled wool prices upon their uncontrolled manufactures, and that of con- trolled cotton manufactures upon their raw material are studies, of course, which can be made only by use of the class indexes for wool and cotton. The effect of control within the rubber, paper, and fiber group does not show in the controlled index until during the latter half of 1918. There are few groups in which the effect of control upon market prices shows so immediately and clearly as in metals. The index of metals which the Government finally controlled reached an extraordinary peak of 350 in July, 1917, when talk of regulation began. The other metals, which never did come under control, had risen only to 205 in that month. Metal prices started downward before actual Government regulation began, and were brought by regulation down to 212 by November, 1917. It is noteworthy that the index of controlled metals was held within a few points of that stable level throughout the war. The rise within the controlled fuels, following Government regulation of coal, would seem to indicate that coal control did not hold prices down. The rise, however, is explained in a large way by increases which were from time to time allowed by the Fuel Administration. It is difficult to measure the effects of control within the building materials group because of the somewhat similar behavior of the controlled and uncontrolled groups, and the fact that building materials prices were so largely influenced by war buying. The controlled series within the chemical group began a decline in April, 1918, which continued throughout the year. They had fallen from 224 in April to 174 by December. The uncontrolled series during the same months rose gradually. GOVERNMENT CONTROL OVER PRICES. 421 8 8 1?I 422 HISTORY OF PRICES DURING THE WAR. !NOX NUMBER OF PRI ELS GROUP S3 AERIES OLLED UNCONTROLLE DURING THE WAR GE ACTUAL AGGREGATE JULY, 131 J T tJUN-!00 LED 3Z. ..... UN 8 8 fr. Sl It9 OLLED !> UNC DURING THE E ACTUAL AGG JULy,l9l3''UUNE ED 21 "' WEICHTED BER.B i i III! GOVERNMENT CONTROL OVER PRICES. 423 eighted ton pro trolled d gates, J 57 series 424 HISTORY OF PRICES DURING THE WAR. lijl *- :s BJ as GOVERNMENT CONTROL OVER PRICES. 425 l t I P1 426 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base average prices July, 1913, to June, 1914=100.] All commodities. Food group. Clothing group. Con- trolled. (573) Uncon- trolled. (793) All. (1,366) Con- trolled. (214) Uncon- trolled. (54) All. (268) Con- trolled. (140) Uncon- trolled. (269) All. (409) 1913 Months January 98 97 98 99 98 98 98 102 103 102 102 101 97 98 101 102 100 99 103 103 103 102 101 101 101 101 102 102 102 100 103 101 101 101 102 99 99 99 99 98 99 98 98 96 95 94 94 99 99 97 94 97 97 97 98 99 101 102 103 102 103 106 109 111 97 101 103 109 102 103 102 102 101 100 100 100 101 102 102 102 101 102 100 101 102 101 100 100 99 98 97 97 97 101 101 99 98 98 100 97 100 98 99 100 100 100 100 100 100 102 102 102 104 107 111 100 100 102 107 102 92 91 92 95 94 95 95 100 103 102 103 101 92 94 100 102 97 99 99 99 99 100 99 99 107 108 104 102 102 99 99 105 103 101 105 105 105 104 104 102 105 103 98 97 99 101 105 103 102 99 102 100 100 100 99 99 100 99 99 101 101 101 101 100 99 100 101 100 100 99 99 100 100 100 100 100 100 101 101 101 99 100 100 101 100 101 101 102 102 102 102 102 102 102 102 102 102 101 102 102 102 102 98 96 97 97 95 96 96 100 102 102 103 102 97 96 99 103 99 101 101 100 98 98 97 98 105 107 104 103 104 101 98 103 104 101 105 106 105 103 103 100 103 101 99 99 102 103 105 102 101 101 102 103 103 102 101 100 99 99 10f> 100 102 102 101 102 100 100 101 101 99 100 100 99 100 100 100 99 98 95 93 94 99 100 99 94 98 95 97 98 97 99 99 101 103 105 108 111 112 96 98 103 111 102 101 101 100 100 100 100 100 100 100 102 101 100 101 100 100 101 100 99 99 100 99 99 100 100 100 94 93 90 91 99 100 98 91 97 92 94 95 96 97 97 97 97 98 103 106 107 94 97 97 105 98 102 102 101 100 100 99 99 100 100 103 102 100 101 100 100 101 101 99 99 100 99 99 100 100 99 94 91 88 89 99 99 98 89 96 90 92 92 93 95 95 96 96 98 103 106 107 91 95 97 105 97 February March April May .. June July August September October November December Quarters- First Second Third Fourth Y"ear. 1914 Months- January February. . . . 99 99 99 99 98 98 104 105 101 99 99 99 98 102 100 100 101 102 101 101 101 100 103 103 101 101 103 107 101 101 102 104 102 March April. . Mav June July August September October November December Quarters- First Second . . Third.... Fourth Year 1915 Months- January February. March April . May June July August . September. October November. December Quarters First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 427 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base average prices July, 1913, to June, 1914=100.] All commodities. Food group. Clothing group. Con- trolled. (573) Uncon- trolled. (793) All. (1,366) Con- trolled. (214) Uncon- trolled. (54) All. (268) Con- trolled. (140) Uncon- trolled. (269) All. (409) 110 113 115 116 118 120 122 125 129 135 146 154 112 118 125 145 125 155 156 157 163 167 174 187 189 189 191 199 202 156 168 188 198 177 209 212 218 228 226 228 233 234 237 238 234 230 213 227 235 234 227 1916 Months 113 115 117 120 121 120 121 125 127 134 143 146 115 120 124 141 125 151 155 164 183 192 201 209 1204 205 198 200 193 157 194 206 196 188 195 198 197 196 192 189 195 199 204 201 200 204 197 192 199 201 197 116 119 121 123 123 124 124 124 125 127 131 135 119 123 124 131 124 140 142 142 146 149 152 160 162 163 167 172 174 141 149 162 171 156 178 180 182 187 189 191 194 195 199 201 200 197 180 189 196 199 191 115 118 121 123 123 122 123 125 127 132 141 144 118 123 125 139 126 148 151 156 170 178 183 189 187 186 182 183 182 152 177 187 182 175 185 187 188 191 190 189 193 196 201 201 201 203 187 190 197 202 194 106 106 106 109 110 110 112 116 119 127 133 132 106 110 116 131 116 136 140 150 170 183 182 189 1186 193 194 200 191 142 179 190 193 176 193 196 194 189 182 179 186 192 199 194 193 201 194 183 193 196 192 102 102 103 104 104 104 104 104 104 104 105 105 103 104 104 105 104 110 110 110 111 113 115 123 127 130 150 156 156 110 113 127 154 126 165 165 166 170 172 180 180 180 181 182 188 189 165 174 180 186 176 105 106 106 109 109 109 111 115 118 125 130 129 106 109 115 128 115 133 136 142 157 166 164 167 168 173 177 182 178 137 162 169 178 162 182 184 182 180 177 175 182 187 194 195 194 202 183 177 188 197 186 114 117 119 121 124 126 127 131 133 143 159 171 117 124 130 157 132 170 169 173 177 181 189 195 195 197 201 204 207 170 182 196 204 188 214 216 222 236 1240 244 247 249 241 242 241 238 217 240 245 240 236 111 113 116 117 118 120 123 125 128 131 139 145 113 118 125 139 124 151 153 153 158 162 168 181 186 185 186 195 198 152 163 184 193 173 205 207 210 216 214 215 221 221 230 231 227 223 207 215 224 227 218 Februarv March April Mar June . July August .... September October November December Quarters First Second Third Fourth Year 1917 Months- January February March... April Mav June Julv August September October November December Quarters First Second Third Fourth Year 1918 Months- January February March..' April May June July August September October November December Quarters- First Second Third Fourth Year 1 Price control began during month. 428 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices, July, 1913, to June, 1914=100.] LU fifeffSrapV 80 Metals group. Fuels group. Con- trolled. Uncon- trolled. (98) All. (119) Con- trolled. (49) Uncon- trolled. (67) All. (116) Con- trolled. (32) Uncon- trolled. (31) All. (63) 1913 Months- January 144 108 108 108 103 103 103 103 103 103 103 103 99 108 103 103 102 104 98 98 97 98 98 97 97 98 98 97 97 97 98 98 97 97 97 97 85 85 85 85 86 86 86 85 86 86 87 89 85 86 86 87 114 113 112 107 105 105 104 104 103 102 101 99 113 106 103 101 106 98 98 98 99 98 97 96 101 100 98 98 100 98 98 99 99 98 100 00 90 90 90 90 91 90 89 90 92 95 93 90 90 93 91 120 118 117 115 114 111 111 110 108 105 99 96 118 113 110 100 110 95 98 97 96 94 92 92 93 94 91 89 89 97 94 93 90 93 90 91 92 94 96 99 102 105 110 113 119 132 91 96 106 121 104 118 113 111 110 109 108 105 105 107 106 103 100 114 109 106 103 108 99 98 96 95 94 92 90 100 92 87 87 90 98 93 94 88 93 95 108 119 124 145 164 172 147 147 145 159 163 108 145 155 156 141 120 118 116 114 113 111 110 110 108 105 100 96 118 113 109 100 110 96 96 92 93 91 94 93 91 80 89 97 94 93 89 93 91 93 95 98 101 106 110 110 114 116 124 136 93 102 111 125 108 100 99 99 98 98 98 99 101 102 102 102 102 99 9.8 101 102 100 102 102 101 99 94 93 93 93 91 89 89 89 102 95 93 89 95 89 89 86 84 84 84 83 85 91 92 93 98 88 84 86 94 88 104 106 106 107 106 106 105 103 104 103 102 99 105 106 104 101 104 100 99 99 97 95 93 89 87 85 84 83 83 100 95 87 83 91 82 80 78 77 77 77 76 77 79 87 95 103 80 77 78 95 82 102 101 101 101 101 101 101 102 102 102 102 101 102 101 101 101 101 101 100 100 98 96 95 94 94 92 91 91 91 101 96 93 91 95 90 89 88 85 85 85 85 86 90 92 95 100 89 85 87 96 89 February 140 March 133 April... 125 May 118 June 115 July 109 August 108 September 105 October 97 November 97 December 97 Quarters- First 139 Second 119 Third 107 Fourth 97 Year 116 1914 Months- January 96 February 98 March 98 April. 101 May 100 June. .. 93 July 93 August 110 September 105 October 97 November 99 December 111 Quarters- First 98 Second . 98 Third 103 Fourth 102 Year 100 1015 Months January 111 February . 96 March ' 98 April 97 May 95 June 98 July i 99 August 97 September 95 October 96 November i 104 December. 117 Quarters- First 102 Second... 97 Third 97 Fourth 106 Year 100 GOVERNMENT CONTROL OVER PRICES. 429 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices, July, 1913, to June, 1914=100.] Rubber, paper, and fiber group. Metals group. Fuels group. Con- trolled. (21) Uncon- trolled. (98) All. (119) Con- trolled. (49) Uncon- trolled. (67) All. (116) Con- trolled. (32) Uncon- trolled. (31) All. (63) 1916 Months- January 132 122 130 124 114 106 101 102 102 106 111 125 128 114 102 114 114 133 139 144 142 150 147 140 140 142 139 138 138 138 146 141 138 141 147 140 1144 149 156 155 156 155 153 146 143 139 143 153 155 143 149 93 96 99 103 105 106 107 109 111 113 116 119 96 104 109 116 107 127 129 130 135 136 136 135 135 142 142 141 140 129 136 137 141 136 142 144 144 150 157 160 159 160 161 161 161 160 143 156 160 161 155 103 104 109 112 112 111 112 114 117 120 123 129 106 112 114 124 114 138 141 143 146 148 147 144 143 149 147 146 145 141 147 145 146 145 148 148 150 155 162 165 164 166 166 165 163 162 149 161 165 163 160 141 148 164 168 166 165 165 169 172 177 202 220 1.50 167 169 199 171 230 237 251 267 285 330 350 328 1295 234 212 211 239 296 325 219 270 212 212 212 211 212 212 214 215 215 217 217 212 212 212 215 216 213 186 203 201 212 209 197 185 181 181 187 196 202 197 206 182 195 195 199 205 210 205 206 205 205 198 192 188 190 186 205 206 199 188 199 181 179 183 181 189 190 197 207 206 205 201 200 181 187 203 202 193 147 154 168 174 171 169 167 170 172 176 202 218 155 171 171 199 174 226 234 247 260 276 315 333 313 283 228 209 208 235 286 310 215 262 208 209 209 208 209 210 212 214 214 216 216 211 209 209 213 214 211 105 106 109 114 114 114 113 107 105 109 119 123 107 114 108 117 111 131 136 134 173 182 184 178 M78 176 176 179 180 134 180 177 178 167 182 182 184 215 219 215 215 216 218 218 224 224 182 216 216 222 209 111 115 120 120 123 123 123 123 118 117 119 119 115 123 121 118 119 127 133 134 135 137 137 140 140 142 142 144 148 131 136 140 145 138 155 157 159 161 167 169 168 168 169 169 166 166 157 166 168 167 164 106 107 109 112 113 113 113 110 109 111 120 122 107 113 111 118 112 129 133 131 163 172 173 168 169 165 164 167 170 131 170 167 167 138 173 174 175 200 204 202 201 202 204 204 207 207 174 202 202 207 196 February March ' April. . May . June July . . . August September October November December Quarters First... Second Third Fourth Year 1917 Months- January February March ' April Mav June. July August September October November December Quarters First Second Third Fourth Year 1918 Months- January February . March April... May June July . August September October November December Quarters- First Second . . Third Fourth Year Price control began during month. 430 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] Building materials group. Chemicals group. Con- trolled. (42) Uncon- trolled. (107) All. (149) Con- trolled. (75) Uncon- trolled. (167) All. (242) 1913- 'Months- January 108 108 109 110 110 110 104 104 104 100 99 99 108 110 104 99 106 98 98 99 98 98 98 97 97 98 93 92 91 '98 98 97 92 96 90 91 91 91 92 92 93 93 93 104 106 106 91 92 93 105 95 100 101 101 101 101 101 101 101 102 101 100 100 101 101 101 100 101 100 100 100 99 99 99 99 99 99 98 98 97 100 99 99 98 99 96 96 96 96 96 97 100 99 99 101 100 101 96 96 100 101 98 104 104 105 105 105 105 102 102 103 100 100 100 104 105 103 100 103 99 99 99 99 98 98 98 98 98 96 95 94 99 98 98 95 98 93 93 93 93 94 94 96 95 95 101 101 102 93 94 95 102 96 102 102 103 103 103 102 102 102 101 100 100 100 102 103 102 100 102 99 99 99 99 99 98 98 99 101 99 98 98 99 99 99 98 99 98 99 99 107 108 108 125 129 141 152 163 173 98 107 132 163 125 103 103 103 102 102 102 102 101 102 100 101 101 103 102 102 100 102 99 99 100 99 98 99 98 99 107 108 111 109 99 99 101 109 102 135 141 142 147 144 154 158 158 163 166 171 174 139 148 159 170 154 103 104 104 103 103 102 102 101 101 100 100 101 103 103 102 100 102 99 99 100 99 98 99 98 99 106 105 106 105 99 99 101 105 101 123 126 126 133 132 137 146 148 155 162 172 178 125 134 149 171 145 February . . . March April... May... June . . July August September October November Dficp.m bpr Quarters- First Second Third Fourth Year 1914 Months- January February. . March April... May . June July August. . . . . September October November . . Dpp,p,mbpr Quarters First Second . Third Fourth Year 1915 Months- January February March... April May June July .... August September October November December . . Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 431 PRIGS SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] Building materials group. Chemicals group. Con- trolled. (42) Uncon- trolled. (107) All. (149) Con- trolled. (75) Uncon- trolled. (167) All. (242) 1916 Months^ January 113 114 115 113 114 114 111 111 111 119 120 121 114 114 111 119 115 129 130 131 157 158 159 164 164 164 165 U67 167 130 158 164 166 155 174 175 177 184 186 187 187 188 189 186 187 186 176 186 188 186 184 108 111 112 117 118 118 117 117 117 118 119 122 110 118 117 120 116 132 133 135 141 144 148 151 152 153 153 155 155 134 144 152 154 146 161 160 167 175 178 180 184 186 190 190 190 188 162 178 187 189 179 109 111 112 113 113 113 112 112 112 116 118 119 110 113 112 118 114 129 130 132 146 148 151 155 155 156 157 159 159 130 148 155 158 148 165 165 169 176 179 181 182 184 186 185 186 185 167 179 184 185 179 196 216 218 216 200 197 177 164 160 163 163 167 210 205 167 164 187 166 167 172 179 190 192 196 203 217 217 1213 221 169 188 206 217 195 207 223 224 224 212 207 192 193 196 193 192 174 218 215 194 186 203 177 181 181 176 171 170 163 156 153 152 152 149 179 172 158 151 165 145 142 141 142 152 157 162 161 163 167 167 167 143 150 152 167 156 166 165 166 167 170 171 172 173 174 178 179 178 166 169 173 178 172 189 200 201 198 188 185 175 166 162 162 163 162 196 190 168 162 179 159 157 159 163 172 174 180 183 190 193 191 193 158 170 184 192 176 186 192 192 192 190 189 184 186 188 190 193 183 190 190 186 189 189 February March April .. May June Julv .... .... August SeptemlxM'. .. October November December Quarters- First Second Third . Fourth Year 1917 Months- Jan uarv February March April May June July August September . October November December. . Quarters First Second Third Fourth Year . 1918-Months January February . . . March.... April May June July August September October November December Quarters First Second .. Third Fourth Year.. Price control began during month. 432 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The food group. Feed and forage class. Wheat and wheat prod- ucts class. Corn and corn prod- ucts class. Oats, rice, buck- wheat, and their products class. Barley, hops, rye, and their prod- ucts class. All con- trolled. (22) All con- trolled. (12) Con- trolled. (6) Un- con- trolled. (3) All. (9) Con- trolled. (9) Un- con- trolled. (1) All. (10) Con- trolled. (4) Un- con- trolled. (4) All. (8) 1913 Months January . ... 83 80 80 86 90 92 89 102 105 104 104 101 81 90 100 103 93 95 95 95 101 106 102 98 108 109 104 101 100 95 103 105 102 101 108 109 110 111 110 109 113 108 95 88 92 95 109 110 106 92 104 105 104 102 104 104 104 99 98 100 99 100 100 104 104 99 99 101 101 101 101 101 102 99 96 110 116 115 117 120 101 101 107 118 107 135 146 150 148 148 127 128 121 111 115 114 124 143 141 120 118 130 70 72 75 82 84 90 91 108 110 103 105 100 73 85 105 103 91 92 91 95 99 102 104 104 118 116 107 100 94 93 102 114 101 102 104 108 105 110 110 108 114 118 111 93 93 97 106 109 114 94 106 99 99 99 99 99 99 99 99 100 100 100 100 99 99 99 100 99 99 99 100 100 100 100 100 100 100 102 102 102 99 100 100 102 100 102 101 101 101 102 103 103 103 103 103 103 104 101 102 103 103 102 79 80 82 87 89 92 93 105 107 102 104 100 81 89 103 102 94 94 94 97 99 102 103 103 113 111 106 100 97 95 102 110 101 102 103 106 104 107 108 106 111 114 109 96 96 99 104 107 110 97 105 92 92 93 94 96 97 103 105 101 105 103 100 92 96 103 102 98 97 97 97 96 97 100 99 110 116 108 102 109 97 97 108 106 102 113 120 122 121 119 115 116 106 99 99 101 102 118 118 108 101 111 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 92 92 93 95 96 97 103 105 101 104 103 100 92 96 103 102 98 97 97 97 96 97 100 99 110 116 108 102 108 97 97 108 106 102 113 120 122 121 119 115 115 106 99 99 101 102 118 118 107 101 111 100 98 95 96 99 98 94 104 114 107 103 99 98 97 105 103 101 101 98 95 94 95 95 89 105 121 115 122 124 98 95 105 120 105 138 150 141 139 141 135 135 129 105 109 115 121 143 138 123 115 129 98 98 99 99 99 100 100 ICO 100 101 101 100 98 99 , 100 101 100 99 99 99 100 100 100 100 100 101 100 100 100 99 100 100 100 100 100 100 101 102 103 103 103 104 103 104 103 103 101 103 103 103 102 99 98 97 98 99 99 98 102 105 103 102 100 98 99 102 102 100 100 99 98 98 98 98 96 102 108 106 108 109 99 98 102 107 102 114 118 116 115 117 114 115 113 104 106 108 110 116 116 111 107 112 February March April May--- June July August September October November December Quarters- First Second Third Fourth ear . .... 1914 Months- January February March April . . May... June July August. September October November December Quarters- First Second Third Fourth Year 1915 Months- January February March April May June July August. September October November December Quarters- First Second Third Fourth... Year GOVERNMENT CONTROL OVER PRICES. 433 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913 to Juno, 1914=100.] The food group. Feed and forage class. Wheat and wheat prod- ucts class. Corn and corn prod- ucts class. Oats, rice, buck- wheat, and their products class. Barley, hops, rye, and their prod- ucts class. All con- trolled. (22) All con- trolled. (12) Con- trolled. (6) Un- con- trolled. (3) All. (9) Con- trolled. (9) Un- con- trolled. (1) All. (10) Con- trolled. (4) Un- con- trolled. (4) All. (8) 1916 Months- January 105 104 100 104 108 10G 103 108 110 - 117 126 126 103 106 108 125 111 131 134 145 170 191 193 218 197 214 212 i 239 207 137 184 210 214 184 207 220 220 190 175 170 175 187 200 184 185 189 216 178 188 186 192 128 126 117 122 120 113 120 143 152 167 177 168 123 119 138 171 138 178 174 189 221 267 248 230 1232 215 211 209 203 181 247 226 208 216 202 205 202 209 206 207 215 213 212 211 211 214 203 208 213 212 209 110 108 106 111 110 106 117 125 126 140 144 134 108 109 123 140 123 145 147 165 218 241 252 299 302 301 293 1268 247 153 236 301 267 240 243 247 232 233 219 223 236 242 227 195 190 211 240 225 236 198 224 104 104 105 105 105 105 105 105 105 105 105 105 104 105 105 105 105 114 113 113 115 119 119 131 136 139 172 175 173 113 117 135 173 135 181 181 181 184 185 191 185 182 183 183 194 194 181 187 183 190 186 108 107 105 109 108 106 114 119 120 130 133 126 106 108 118 130 119 136 137 150 188 205 214 250 254 254 258 241 226 141 202 253 240 209 225 228 217 214 221 225 214 192 191 206 223 214 221 196 213 104 104 104 129 139 139 140 142 144 155 163 103 104 136 142 160 135 117 116 123 157 174 174 179 174 173 180 U80 187 119 169 175 183 161 192 197 209 214 207 206 210 197 191 197 194 195 200 209 199 196 200 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 104 104 104 128 159 159 159 141 144 155 162 162 104 135 141 159 135 117 116 123 156 173 173 178 173 171 179 178 186 119 168 174 181 161 190 195 207 212 206 205 208 196 189 196 192 194 198 207 197 195 199 132 132 125 129 131 131 130 157 176 182 200 194 130 131 155 192 152 204 200 213 238 265 262 266 244 1235 235 228 253 206 254 248 240 237 260 308 358 327 283 228 217 217 210 202 200 199 310 278 214 200 251 103 104 105 105 105 106 106 106 106 106 106 105 104 105 106 106 105 105 104 104 104 104 105 109 110 112 124 132 134 104 104 110 130 112 154 154 153 158 160 171 175 176 177 178 178 179 154 163 176 178 168 113 114 112 114 115 115 115 124 131 133 140 137 113 115 123 137 122 141 139 143 152 162 162 166 159 157 164 167 177 141 159 161 170 158 192 210 227 219 205 192 190 191 189 187 186 186 210 205 190 186 198 March \pril May J U ly September October November .... Quarters- First Third Year 1917 Months February March - - - April May - June Julv August - - - September October . . November December Quarters- First . . . Second Third Fourth Yea r 1918 Months- January February March April May June July \ugust September October November December Quarters- First Second Third Fourth Year 125547 20 28 Price control began during month. 434 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The food group. Sugar and related prod- ucts class. Vege- tables and truck class. Edible vegetable oils class. Fruits, nuts, and wine class. Con- trolled. (9) Un- con- trolled. (1) All. (10) All con- trolled. (15) Con- trolled. (13) Un- con- trolled. (1) All. (14) Con- trolled. (10) Un- con- trolled. (7) All. (17) 1913 Months- January February . . . March 105 100 101 99 99 99 105 110 109 103 104 99 102 99 108 102 103 96 97 91 90 96 100 100 151 161 136 116 115 95 95 137 122 112 117 131 136 136 138 139 138 133 123 118 132 138 128 138 132 129 132 103 103 103 103 103 107 107 107 107 107 107 107 103 104 107 107 105 107 95 85 87 91 95 95 99 99 99 99 99 96 91 97 99 96 99 95 95 95 95 95 95 99 99 99 99 99 96 95 97 99 97 105 100 101 99 99 99 105 110 109 103 104 99 102 99 108 102 103 96 97 91 90 96 100 99 150 160 136 115 115 95 95 137 122 112 117 131 135 136 138 139 138 133 123 117 132 138 128 138 131 129 131 84 86 85 85 84 90 88 102 104 102 97 98 85 86 98 99 92 98 100 101 102 104 104 113 115 104 93 83 81 100 103 111 85 100 84 86 86 ^. 88 91 91 89 92 84 81 89 91 86 90 88 87 8S 88 90 90 94 95 98 105 106 102 98 98 98 89 96 104 98 97 98 98 99 101 99 98 98 90 88 81 78 83 98 100 92 81 93 90 98 96 93 90 87 84 81 89 111 115 125 94 90 84 117 96 109 111 114 110 112 112 108 106 106 106 108 104 111 111 107 106 109 98 101 99 90 88 88 87 102 82 81 87 120 99 88 90 96 93 115 144 145 140 115 114 112 120 120 131 149 131 135 123 118 137 128 89 91 91 95 95 98 105 106 102 98 99 98 90 96 105 98 97 98 98 99 100 99 98 98 90 88 81 79 84 98 99 92 81 93 90 99 97 94 90 87 84 82 89 112 115 125 95 91 85 117 97 71 71 74 75 88 102 96 89 86 83 88 90 72 88 90 87 84 99 110 117 116 114 113 92 79 69 60 60 61 108 115 80 60 90 63 66 66 76 82 90 85 74 72 70 67 68 65 82 77 69 73 96 97 97 99 100 102 103 103 104 105 103 102 97 101 103 103 101 101 98 96 96 95 94 94 95 97 97 97 96 98 95 95 97 96 94 95 95 95 94 90 90 89 89 82 84 87 95 93 89 84 90 73 73 75 76 89 102 96 90 87 84 89 91 74 89 91 88 86 99 109 116 114 113 111 92 80 71 63 63 63 108 113 81 63 91 65 68 68 78 82 90 85 75 73 71 69 69 67 86 78 70 74 April May. . June July August ... . September . . October November. . December... Quarters- First Second . Third Fourth . Year .... 1914 Months- January February . . . March April May June July. August September . October November . December.. Quarters- First Second... Third . Fourth Year 1915 Months- January February . . . March April... May June July August September . October.... November . December. . Quarters- First Second... Third Fourth Year . GOVERNMENT CONTROL OVER PRICES. 435 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices, July, 1913, to June, 1914=100.] The food group. Sugar and related prod- ucts class. Vege- tables and truck class. Edible vegetable oils class. Fruits, nuts, and wines class. Con- trolled. (9) Un- con- trolled. (1) All. (10) All con- trolled. (15) Con- trolled. (13) Un- con- trolled. (1) All. (14) Con- trolled. (10) Un- con- trolled. (7) All. (17) 191 6- Months- January February . - - March ' 134 140 155 167 176 174 175 163 153 170 175 159 143 173 164 168 162 155 156 164 184 185 181 189 206 204 1201 200 192 159 184 200 198 185 182 181 181 181 180 180 181 182 203 212 212 213 181 180 188 212 191 99 91 87 87 87 95 95 103 95 95 95 95 92 90 97 95 93 95 87 87 87 87 99 99 99 103 103 134 142 90 91 100 127 102 147 158 158 162 162 166 166 170 193 193 221 221 154 163 177 212 177 134 139 154 166 175 173 174 162 152 169 174 159 142 172 163 167 161 154 156 163 183 184 180 188 204 202 200 199 192 158 182 199 197 184 181 181 181 181 180 180 181 182 202 212 212 213 181 180 188 212 191 101 115 121 124 123 128 135 130 138 139 166 177 112 125 134 161 133 183 212 272 275 314 307 276 215 186 174 U82 178 222 299 226 178 232 184 188 186 169 159 150 165 201 207 196 181 171 186 159 191 183 180 129 132 141 147 149 146 138 151 145 163 181 180 134 147 145 175 150 175 175 183 199 209 211 199 199 208 233 1246 248 177 206 202 242 207 252 255 255 256 256 252 251 249 255 255 255 255 254 254 252 255 254 132 120 124 120 120 116 112 124 108 97 105 96 126 119 115 100 115 103 101 89 97 91 91 93 87 89 88 79 84 98 92 90 84 91 88 104 112 105 102 96 105 105 97 103 104 120 101 101 102 109 103 129 131 140 146 148 145 138 151 144 162 179 178 134 147 144 173 150 173 173 181 196 206 208 197 197 205 230 243 244 176 204 200 238 204 249 252 252 252 252 248 248 246 251 252 251 252 251 251 249 252 250 72 75 75 75 77 89 86 84 80 82 89 89 74 81 84 87 81 92 105 114 114 114 118 116 109 103 106 1116 121 104 116 109 115 111 124 130 138 144 164 168 155 139 136 140 140 137 130 159 144 139 143 86 86 83 84 85 85 88 89 92 99 102 102 85 85 90 101 90 104 104 101 101 100 110 106 108 108 120 126 127 103 104 108 124 109 129 130 134 134 137 139 138 141 143 153 175 184 131 137 141 171 145 73 76 75 76 78 88 87 84 81 84 90 90 75 81 84 88 82 93 105 113 113 115 117 115 109 104 107 117 122 104 115 109 116 111 124 130 138 144 162 166 -154 139 136 141 143 140 130 158 144 142 143 April . Mav June July August September . . October November. . December... Quarters- First Second Third Fourth Year 1917 Months- January February . .. . March April May June July August September.. October November. . December... Quarters- First Second Third Fourth . .. Year 1918 Months- January February . . . March April May June July., August September . . October November. . December... Quarters- First Second Third Fourth Year Price control began during month. 436 HISTORY OF PRICES DURING THE WAR. TRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices, July. 1913, to June, 1915=100.] The food group. Spices and condi- ments class. Tea, coffee, and cocoa class. Tobac- co and tobac- co prod- ucts class. Live- stock, meats, and fats class. Poul- try and dairy prod- ucts class. Fish and oyster class. All uncon- trolled. (10) Con- trolled. (9) Un- con- trolled. (11) All. (20) All uncon- trolled. (15) All con- trolled. (48) All con- trolled. (43) Con- trolled. (14) Un- con- trolled. (1) All. (15) 1913 Months- January February . . . March 103 103 101 101 102 101 99 100 99 100 100 100 102 101 100 100 101 100 101 101 101 99 99 99 110 109 106 105 105 101 100 106 105 103 107 112 115 116 114 114 115 114 114 117 123 124 111 114 115 121 116 129 123 115 110 109 101 96 96 98 108 106 101 122 107 97 105 107 99 102 98 98 96 101 98 102 92 80 81 80 100 98 97 80 94 82 85 83 85 83 79 80 80 76 77 81 82 83 82 79 80 81 103 104 106 103 104 104 103 101 102 102 102 101 104 103 102 102 103 99 99 98 98 99 98 98 107 103 100 101 111 99 98 103 104 101 103 120 120 119 115 113 119 121 118 119 126 121 117 116 120 122 119 124 120 113 109 108 102 97 97 98 107 106 101 119 106 97 105 107 99 102 98 98 97 100 98 103 94 84 84 86 100 98 98 84 95 86 91 89 91 89 85 87 87 83 84 89 88 89 88 86 87 87 103 103 99 97 97 98 99 99 101 102 102 102 101 97 100 102 100 100 100 99 99 99 99 99 100 100 100 100 100 100 99 100 100 99 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 97 95 101 103 99 101 101 100 100 100 97 97 97 101 100 98 99 99 101 101 101 101 101 103 105 108 102 100 100 100 101 105 101 102 95 92 92 92 95 96 98 96 96 98 94 92 93 94 97 95 9 r > 104 103 100 98 89 86 91 96 102 107 114 115 102 91 96 112 100 112 105 99 90 84 84 90 96 100 106 112 113 105 86 95 110 99 112 106 100 91 84 82 89 91 96 101 109 111 106 86 92 97 98 104 117 99 99 83 85 84 91 93 92 96 115 107 89 89 101 96 116 107 112 101 96 96 99 101 105 122 112 110 112 98 102 115 106 113 116 121 109 101 95 97 99 96 92 108 98 117 102 97 99 104 105 105 105 105 105 105 92 92 99 102 102 102 105 105 94 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 102 87 87 87 87 87 87 102 102 87 87 94 :ios in 102 102 95 96 88 91 96 97 99 108 106 98 92 102 99 109 104 107 102 99 69 101 101 103 112 107 106 107 100 102 108 104 107 109 111 105 102 99 92 92 91 89 97 92 109 102 92 93 99 April... May June July ... . AugUSt September . . October November. . December. . . Quarters- First Second Third Fourth Year 1914 Months- January February . . . March April . . . May June . . . July August September.. October November. . December. . . Quarters- First.- Second Third Fourth Year 1915 Months- January February . . . March April Mav June July August September . . October November . . December. . . Quarters- First Second Third Fourth Year.. GOVERNMENT CONTROL OVER PRICES. 437 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices, July, 1913, to June, 1914=100.] The food group. Spices and condi- ments class. Tea, coffee, and cocoa class. Tobac- co and tobac- co prod- ucts class. Live- stock, meats, and fats class. Poul- try and dairy prod- ucts class. Fish and oyster class. All uncon- trolled. (10) Con- trolled. (9) Un- con- trolled. (11) All. (20) All uncon- trolled. (15) All con- trolled. (48) All con- trolled. (43) Con- trolled. (14) Un- con- trolled. (1) All. (15) 1916 Months- January February . . . March ' April May... 129 132 144 141 137 135 135 132 132 132 132 140 135 138 133 135 135 148 155 158 164 169 171 171 170 172 175 178 177 154 168 171 177 167 176 182 187 204 209 211 210 208 209 206 206 201 182 207 209 204 200 81 85 91 92 93 92 89 90 94 92 91 89 86 92 91 91 90 93 92 87 88 90 90 87 85 83 81 80 81 91 89 85 80 87 89 189 93 95 93 90 92 92 100 111 118 177 90 93 94 129 99 120 118 118 118 118 116 117 118 117 116 112 111 119 118 117 113 116 114 118 117 125 132 132 130 133 133 133 132 134 116 129 132 133 127 135 139 140 139 138 138 143 145 148 149 150 154 138 139 145 151 143 88 91 95 96 97 96 94 95 98 96 94 93 91 97 94 95 94 96 96 92 94 97 97 94 93 92 90 89 90 95 96 93 89 94 96 97 101 102 100 98 101 101 108 118 123 173 88 100 103 133 107 101 99 99 100 100 100 100 100 100 100 100 105 100 100 100 102 100 107 109 109 110 110 119 129 134 135 138 155 158 109 113 133 150 125 154 156 161 167 171 185 195 200 202 203 203 200 157 175 199 202 183 94 97 104 106 109 114 114 113 116 114 114 116 98 109 114 114 109 120 127 138 150 156 156 152 156 169 U67 168 167 128 154 159 167 152 167 168 171 184 185 185 190 189 198 191 182 193 168 185 192 189 183 109 105 101 100 95 90 96 103 108 124 131 134 105 95 102 129 108 133 132 124 137 130 122 130 142 151 U71 174 177 130 130 141 174 144 193 188 172 157 149 137 154 168 182 203 218 227 184 147 168 216 179 106 115 133 115 104 109 114 115 119 134 142 153 118 109 116 143 122 169 166 181 199 198 189 189 189 210 J 221 235 224 172 195 196 227 198 247 239 229 220 218 225 226 231 233 251 260 264 239 222 230 258 237 88 82 95 102 102 97 100 100 100 100 100 100 88 100 100 100 97 105 105 105 105 105 105 109 109 126 126 126 126 105 105 114 126 113 126 126 126 126 146 146 146 146 146 156 160 174 126 139 146 163 144 97 97 113 108 103 103 107 107 109 116 120 125 102 105 108 120 109 135 134 141 150 150 145 147 147 166 171 178 172 137 148 153 174 153 183 180 175 171 180 184 184 186 188 201 207 217 179 178 186 208 188 June July August September . . October November . . December. . . Quarters- First Second Third Fourth Year. 1917 Months- January February . . . March April May June . . July August. . September . . October November. . December. . . Quarters First Second. Third Fourth...... Year 1918 Months- January February . . . March... April May June July August. ... September.. October November.. December. . . Quarters First Second Third. Fourth Year Price control began during month. 138 HISTORY OF PRICES DURING THE WAR. I'RIC ".': SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The clothing group. Cotton and cotton prod acts class. Wool and woolen products class. Silk and silk products class. Con- trolled. (57) Uncon- trolled. (24) All. (81) Con- trolled. (21) Uncon- trolled. (45) All. (66) Con- trolled. (2) Uncon- trolled. (52) All. (54) 1913 Months- January 103 103 103 102 101 100 99 100 100 102 102 102 103 101 100 102 101 100 100 99 99 99 99 99 97 94 89 85 84 100 99 97 88 95 83 84 85 87 89 89 91 92 94 99 102 104 84 89 93 102 92 100 98 97 97 95 95 95 95 97 110 107 100 98 96 96 105 99 96 98 103 98 100 102 102 102 72 64 52 56 99 100 92 57 87 54 61 61 67 75 71 71 67 70 92 95 93 59 71 69 93 73 102 101 101 100 99 98 98 98 99 105 104 101 101 99 98 103 100 98 99 101 98 99 100 100 99 86 79 72 73 99 99 95 i 75 92 72 75 76 79 84 82 83 82 85 97 99 100 74 82 83 99 84 122 122 118 114 110 110 109 108 107 105 102 96 121 111 108 101 110 92 92 94 97 99 101 102 103 105 106 111 114 92 99 103 110 101 122 133 138 136 136 136 139 143 145 146 149 153 131 136 143 149 140 106 106 106 106 105 105 104 103 102 102 101 99 106 105 103 101 104 98 98 98 98 98 93 99 100 100 100 101 101 98 98 100 101 99 103 101 107 107 107 108 109 111 112 113 115 116 105 107 111 114 109 108 108 108 107 106 105 105 103 103 102 101 99 108 106 104 101 105 97 97 98 97 98 99 99 1QO 100 101 102 103 98 98 100 102 99 105 107 110 110 111 111 112 114 116 116 118 120 108 111 114 118 113 91 90 89 91 91 91 97 96 103 98 98 99 90 91 98 98 94 101 102 103 103 102 99 103 99 91 88 82 86 102 101 98 85 96 85 85 84 84 84 85 84 85 88 89 88 95 85 84 85 91 86 96 100 96 95 95 97 96 100 101 100 99 99 97 95 99 100 98 100 101 100 100 100 103 100 96 94 93 90 91 100 101 96 91 97 92 92 92 93 92 91 91 92 93 97 103 107 92 92 92 102 95 96 100 96 95 95 96 ' 96 100 101 100 99 99 97 95 99 100 98 100 101 100 100 100 103 100 96 94 93 90 91 100 101 96 91 97 92 92 92 92 92 91 91 92 93 97 103 107 92 92 91 102 94 February March April May June July August September.. October November December Quarters- First Second Third Fourth Year . , 1914 Months- January February. . . March Aprl May Junte .. July August September October November December Quarters- First Second Third' . Fourth Year 1915 Months- January February March. . April May June July August September. . October November. December . Quarters- First ... . Second Third. Fourth Year GOVERNMENT CONTROL OVER PRICES. 439 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] The clothing group. Cotton and cotton products class. Wool and woolen products class. Silk and silk products class. Con- trolled. (57) Uncon- trolled. (24) All. (81) Con- trolled. (21) Uncon trolled. (45) All. (66) Con- trolled. (2) Uncon- trolled. (52) All. (54) 1916 Months- January 106 109 110 112 114 116 119 124 128 140 153 160 108 114 124 151 124 158 157 161 169 172 184 193 194 200 206 206 211 159 175 196 208 184 225 233 246 268 1270 275 279 283 269 270 270 267 235 271 277 269 263 94 95 91 95 95 100 103 104 120 128 148 161 93 97 109 145 111 141 138 131 148 156 167 203 200 192 192 224 228 136 157 198 215 176 238 244 248 261 234 225 235 229 264 261 240 227 243 240 243 243 242 101 103 103 105 107 110 112 116 125 135 151 160 102 107 118 149 119 151 150 149 161 166 177 197 196 197 200 213 218 150 168 197 210 181 230 237 247 265 256 256 262 262 267 267 258 251 238 259 264 259 255 157 161 161 160 161 162 163 164 166 169 179 187 160 161 164 178 166 194 203 215 217 230 255 268 273 273 283 285 286 202 234 272 285 248 288 286 290 289 1288 290 298 297 299 299 298 287 288 289 298 294 292 121 125 128 130 132 133 136 138 141 142 147 155 125 131 138 148 136 164 170 175 182 188 197 206 218 223 227 237 244 170 189 216 236 202 248 252 259 266 270 272 279 281 285 289 285 281 253 269 282 285 272 125 129 132 133 135 136 139 141 144 145 151 158 129 135 141 152 139 167 174 179 186 193 203 213 225 228 234 243 248 173 194 222 242 208 253 256 262 268 272 274 281 283 286 290 286 282 257 272 283 286 274 95 92 101 103 109 111 111 120 124 124 123 121 96 107 118 122 111 119 110 112 113 115 137 164 173 161 152 142 152 114 122 166 149 138 152 157 163 185 202 221 235 245 *250 235 224 220 157 203 244 226 208 109 116 122 121 120 121 122 128 125 128 134 134 116 121 125 132 124 132 135 134 136 136 141 147 153 151 145 147 147 133 138 150 147 142 150 151 153 159 162 171 172 174 179 181 184 181 151 164 175 182 16S 109 115 122 121 120 121 122 128 125 128 134 134 116 121 125 132 123 132 134 133 136 136 141 147 153 151 146 147 147 133 138 150 147 142 150 151 153 159 162 171 172 175 180 181 184 182 151 164 176 182 168 February March \pril May... June . .... July \ugust . September October November December Quarters First... Second Third Fourth Year 1917 Months- January February March April . . . May June Julv August September October. November Deeeml>er Quarters- First Second ... . Third . Fourth Year 1918 Months- January . . February March . . . April.. May Junf>... July August September... October Novem)>er. . December Quarters- First.. . Second Third.... Fourth Year Price control began during month. 140 HISTOKY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The clothing group. I Hatters' Hides and skins and their j fur class products class. | and fur i felt hats. Con- trolled. (60) Uncon- trolled. (96) All. (156) All un- controlled (10) Hair, bristles, and feathers class. All un- controlled (22) 1913 Months- January 97 February 97 March 96 April 95 May 95 June 95 July 95 August 97 September 98 October 101 November 101 December 100 Quarters- First 97 Second 95 Third 97 Fourth 100 Year 97 1914 Months- January 99 February 102 March 102 April 102 May 102 June 102 July 101 August 102 September 104 October 103 November 105 December 109 Quarters- First 101 Second 102 Third 102 Fourth 105 Year 103 1915 Months- January 112 February 113 March 112 April 105 May 107 June 108 July 112 August 115 September 115 October 116 November 117 December 118 Quarters- First 112 Second 107 Third 114 Fourth 117 Year... 113 'J'j 99 100 100 100 100 100 99 100 100 100 101 100 100 101 101 101 101 101 102 100 100 101 W2 101 104 104 104 104 104 lOi 105 105 105 105 106 306 104 104 105 106 105 98 99 99 100 100 100 97 99 100 99 ICO 101 101 101 101 101 10! 101 102 102 102 105 101 101 101 103 101 107 107 107 104 105 106 107 109 109 109 110 no 107 105 108 110 108 105 105 105 105 105 105 104 104 103 103 101 99 105 105 104 101 104 98 98 97 97 100 100 99 98 98 97 101 101 101 101 101 100 100 IOC 99 99 99 99 101 101 100 99 100 101 101 101 101 100 100 100 100 100 104 103 101 101 100 100 103 101 100 100 100 99 98 98 100 100 100 98 GOVERNMENT CONTROL OVER PRICES. 441 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1916=100.] The clothing group. Hides and skins and their products class. Con- trolled. (60) Uncon- trolled. (96) All. (156) All un- controlled (10) Hatters' fur class and fur felt hats. Hair, bristles, and feathers class. All un- controlled (22) 1916 Months- January 117 February 12: March 125 Apnl 130 May 134 June 137 July 135 August 135 September 134 October 143 November 165 December 189 Quarters First 122 Second 134 Third 135 Fourth 166 Year 139 1917 Months- January February 184 March. . .' 185 April 182 Mav 186 June 182 July 180 August 176 September 168 October 168 November 175 December 177 Quarters- First 186 Second 183 Third 175 Fourth 173 Year 179 1918 Months- January 170 February 160 March 153 April 156 May '166 June--- July August 164 September 165 October 166 November 166 December 165 Quarters- First 161 Second 163 Third 165 Fourth 166 Year... 164 113 113 115 116 118 119 123 122 123 125 132 136 114 118 131 121 159 158 158 158 157 158 168 If>S 167 167 168 168 158 158 168 163 176 175 175 175 177 178 183 183 183 183 185 185 175 177 183 184 180 114 116 118 120 123 125 127 127 127 131 143 154 116 123 127 143 127 169 167 1(>7 166 107 166 172 171 lfif> 168 170 171 168 166 170 170 168 174 170 168 168 173 175 177 177 177 177 178 178 171 172 177 178 174 101 104 107 114 107 121 125 130 130 131 131 132 132 135 136 155 125 131 133 150 135 164 179 177 183 189 192 218 219 221 221 221 220 173 188 219 221 200 100 99 101 103 104 100 100 103 100 106 106 107 107 106 110 112 114 113 112 115 10C> 108 112 113 110 121 121 125 131 131 131 137 146 145 147 147 146 122 131 143 147 136 Price control began during month. 442 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1913-1915. [Base: Average prices, July, 1913, to June, 1915=100.] The rubber, paper, and fibers group. Rubber and rubber products class. Paper class. Fibers and fiber products class. Con- trolled. (10) Uncon- trolled. (24) All. (34) Con- trolled. (1) Uncon- trolled. (40) AIL (41) Con- trolled. (10) Uncon- trolled. (34) All. (44) 1913 Months- January 169 161 149 138 127 123 113 111 104 92 93 % 160 129 109 94 123 95 100 99 104 102 91 92 115 106 % 104 125 98 99 104 108 102 126 98 100 98 93 97 99 95 92 94 107 127 108 96 95 109 102 111 111 111 104 103 104 104 104 104 104 104 98 111 104 104 102 105 97 97 97 97 97 97 97 97 96 96 96 96 97 97 97 96 97 96 80 79 79 80 SO 80 79 29 80 80 80 85 80 79 80 81 123 122 119 111 108 108 106 105 104 102 102 98 121 109 105 100 109 97 97 97 98 98 96 96 100 98 96 97 102 97 97 98 99 98 102 84 83 83 82 83 84 83 82 83 85 90 90 83 83 86 85 101 101 101 100 101 100 101 101 100 100 100 99 101 100 100 100 100 101 100 100 100 100 99 100 99 100 100 102 102 100 100 100 101 100 100 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 101 98 101 101 101 100 100 100 100 100 100 100 100 101 100 100 100 100 100 100 100 99 99 99 100 100 104 102 102 100 99 100 103 100 101 100 100 99 100 100 100 100 100 100 100 101 100 100 100 100 100 101 99 101 101 101 100 100 101 100 100 100 100 100 100 100 100 100 100 100 100 100 100 99 99 100 100 103 102 102 100 99 100 102 100 100 100 100 99 99 100 100 100 100 99 99 100 100 99 100 100 100 116 116 116 113 108 105 105 109 111 108 103 99 116 108 109 103 109 94 9-- 95 94 95 94 92 106 106 98 86 80 94 94 103 87 94 82 86 89 93 97 100 99 98 97 98 101 107 86 97 98 102 96 97 97 98 99 99 99 101 101 102 102 102 102 97 99 101 102 100 100 98 97 99 101 98 95 102 103 97 94 92 98 99 100 94 98 96 96 101 106 102 106 108 108 108 108 111 111 98 105 108 110 105 105 105 105 105 103 101 102 104 106 104 102 100 105 103 104 102 104 97 96 96 97 98 96 93 104 104 97 91 87 97 97 101 91 96 90 92 96 101 100 103 101 10} 103 104 107 110 93 102 104 107 101 February March April May June July August September October November December Quarters- First Second Third Fourth Year 1914 Months- January February March April May June July August September October November December Quarters- First Second Third Fourth Year 1915 Months . January February March April May June July August September October November December Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 443 TRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1916-1918. [Base: Average prices, July, 1913, to June, 1916=100.] The rubber, paper, and fibers group. Rubber and rubber products class. Paper class. Fibers and fiber products class. Con- trolled. (10) Uncon- trolled. (24) All. (34) Con- trolled. a) ; Uncon- trolled. (40) All. (41) Con- trolled. (10) Uncon- trolled. (34) All. (44) 1916 Months January 146 127 140 131 116 101 92 92 93 97 104 119 138 116 92 107 113 121 125 132 127 129 118 104 103 105 100 95 88 126 124 104 94 112 96 S3 38 93 198 .98 98 98 98 98 96 96 97 98 97 95 87 87 87 88 88 88 89 89 89 90 92 93 87 88 89 92 89. 102 102 103 108 109 110 110 111 119 121 121 121 102 109 113 121 111 123 125 125 131 139 140 140 141 141 141 141 141 125 137 140 111 136 99 95 98 97 94 91 89 90 90 92 95 98 97 94 90 95 94 106 107- 109 112 113 112 109 109 116 1L7 115 114 : 107 112 111 115 112 117 117 118 123 131 % 131 131 132 132 132 131 131 117 128 131 131 127 100 99 99 101 102 104 108 112 115 : 118 116 i 126; 99 102 111 120 108: 149 ^ 162 169 168 168 168 ' 166 166 170 166 164 : 161 160 168: 168 164 165 170 169 170 U73 191 191 195 195 195 196 196 196 170 185 195 196 187 108 116 131 147 153- 158 162 169 1.78 187 194 202 118 153 169 194 159 208 209 208 208 202 196 186 182 187. 175 171 166 209 202 185 170 192 165 168 170 177 181 194 191 195 198 199 .199 199 168 184 195 199 186 106 112 122 134 139 143 147 153 160 168 173 181 113 139 153 174 145 192 196 197 197 192 188 195 177 183 172 169 165 195 192 180 169 184 166 168 170 176 184 193 192 194 197 199 199 198 168 184 195 198 187 121 128 129 126 119 118 117 119 118 121 127 141 127 121 118 129 124 151 155 155 163 194 209 215 217 219 222 235 258 154 188 217 238 199 266 270 1272 280 281 280 281 275 266 .233 224 206 270 280 274 221 261 116 132 138 139 143 145 150 153 153 156 156 169 129 142 152 161 146 180 189 192 207 216 224 230 230 231 239 241 240 187 215 231 240 218 239 238 238 240 244 247 243 244 244 245 244 232 238 244 244 240 241 118 131 134 133 133 134 137 139 139 142 144 158 128 133 138 148 137 168 175 177 189 206 218 224 225 226 232 239 248 173 204 225 239 210 250 251 252 256 260 261 259 256 253 240 236 221 251 259 256 232 249 February March \pril May June July . . \u a ust September October November... . December Quarters- First Second Third Fourth Year. 1917 Months- January . February March April May ..... June July August September . October November. December Quarters- First Second Third Fourth Year 1918 Months- January February March April May June July August September .. October November. December Quarters- First Second Third Fourth Year 1 Price control began during month. 444 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER, SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices, July. 1913. to June, 1914=100.] The metals group. Iron, steel, and their products class. Con- trolled. (36) Uncon- trolled. (52) All. (88) Ferroalloys, nonferrous, and rare metals class. Con- trolled. (13) Uncon- trolled. (15) 1913 Months- January 121 February 121 March 120 April 117 May... 115 June 113 July 112 August Ill September 108 October 104 November 98 December 96 Quarters- First 121 Second 115 Third 110 Fourth .' 99 Year Ill 1914 Months- January 95 February 98 March..! 98 April 96 May 93 June 92 July ; 92 August 93 September 95 October 92 November 90 December 89 Quarters- First 97 Second 94 Third ! 93 Fourth 90 Year 93 1915 Months- January 89 February 90 March 90 April 91 May 91 June 93 July 97 August 103 September. . . 108 October Ill November 117 December 131 Quarters- First 90 Second 92 Third 103 Fourth 120 Year... 101 99 99 99 100 100 100 100 100 100 100 101 100 99 100 100 100 100 100 100 100 99 99 99 99 99 99 99 99 99 100 99 99 99 99 97 97 98 100 100 100 98 97 97 100 98 121 120 119 116 115 113 112 111 108 104 98 96 120 114 110 99 111 89 90 90 91 92 93 97 103 108 111 117 131 90 92 103 119 101 111 105 102 105 106 102 101 106 109 108 103 98 106 104 105 103 104 94 100 102 112 119 131 127 119 122 122 129 138 98 121 122 130 118 121 115 112 111 111 109 106 106 108 106 104 100 116 110 107 103 109 99 98 96 94 93 91 89 100 91 84 86 89 95 110 123 129 153 175 185 155 155 152 169 174 109 152 165 165 148 GOVERNMENT CONTROL OVER PRICES. 445 PRICE SECTION WEIGHTED INDEX NUMBER, SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices, July, 1913, to June, 1914 = 100.] The metals group. Iron, steel, and-their products class. Ferroalloys, nonferrous, and rare metals class. Con- trolled. (36) Uncon- trolled. (52) All. (88) Con- trolled. (13) Uncon- trolled. (15) All. (28) 1916 Months- January 139 143 161 165 162 163 165 169 171 176 203 222 146 163 168 200 169 237 241 257 276 297 348 374 349 1313 244 219 218 244 310 346 227 282 218 219 219 218 218 218 218 220 220 222 223 217 219 218 219 221 219 105 106 105 113 119 119 120 120 120 129 130 136 106 117 120 132 119 142 142 145 149 155 160 170 175 189 185 185 185 143 154 178 185 165 186 187 184 186 186 191 194 194 194 199 201 205 185 188 194 202 192 138 143 160 164 161 162 164 168 170 175 202 221 145 162 167 198 168 235 238 254 274 294 344 370 346 310 243 218 217 242 306 342 226 279 218 218 218 217 217 218 218 219 219 222 222 217 218 217 219 220 218 156 173 178 187 190 177 167 174 180 182 198 207 169 185 174 196 181 193 217 223 211 222 227 212 205 i 197 176 171 172 211 220 205 173 202 175 174 173 174 175 177 188 189 189 189 189 183 174 175 188 187 181 200 219 217 228 224 210 195 191 192 197 207 213 212 221 192 206 208 208 215 221 215 217 213 211 201 192 189 191 186 215 214 202 188 205 181 178 183 180 189 190 197 209 208 206 201 199 181 187 205 202 194 175 192 194 205 205 191 179 181 185 188 202 209 187 200 182 200 192 200 217 222 213 219 221 212 203 195 181 180 178 213 218 203 180 203 177 176 177 177 181 183 192 197 197 196 194 190 177 180 195 193 187 February March April May June . July August September October November December Quarters First Second .... Third Fourth Year , 1917 Months- January February March April May June July August September October November Quarters First Second Third Fourth Year 1918 Months- January February March April May June . . July August September October November December Quarters- First . .. . Second Third.... Fourth Year Price control began during month. 446 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND /. UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 191-4=100.] The fuels group. Coal and coke class Petroleum and petroleum products class. Matches class. All con- trolled. (27) Con- trolled. (5) Uncon- trolled. (22) All. (27) All-uncon- trolled. (9) 1913 Months January 104 101 100 99 99 100 100 101 101 102 102 101 102 99 101 101 101 100 100 100 98 98 98 98 99 99 99 99 99 100 98 99 99 99 99 99 98 95 95 95 95 95 96 % 97 99 99 95 95 98 97 87 93 96 95 96 96 98 102 104 104 105 105 92 95 101 104 98 105 108 106 101 82 80 79 78 70 64 63 63 106 88 76 63 83 63 63 55 54 54 54 52 58 75 79 81 97 60 54 62 86 Go 104 106 106 107 106 106 105 103 104 103 102 99 105 106 104 101 104 100 99 99 97 95 93 89 87 85 83 S3 83 9-3 95 87 83 91 81 80 77 77 77 77 76 77 79 86 95 103 79 77 77 95 2 99 102 103 104 103 103 103 103 103 103 103 101 102 103 103 102 102 101 102 101 98 92 89 86 84 81 78 77 77 102 93 84 77 89 76 75 71 70 70 70 69 71 78 84 91 101 74 70 73 92 77 99 99 99 99 99 99 99 99 99 100 100 100 99 99 99 100 103 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 101 105 105 105 105 105 106 106 106 106 101 105 105 106 104 March April Mav June - July August October . . . December . . Quarters First Second Third Fourth, .... 1914 Months- January .... .. .. February March . April Mav June July August September October November December . . ............ Quarters- First Second . Third Fourth Year 1915 Months- January ... February March . April May June July August. September October . . November December ... . . . Quarters- First Second Third Fourth.. . . ...... Year . .1 GOVERNMENT CONTROL OVER PRICES. 447 TRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] The fuels group. Coal and coke class. Petroleum and petroleum products class. Matches class. All con- trolled. (27) Con- trolled. (5) Uncon- trolled. (22) All. (27) All uncon- trolled. (9) 191C Months January . 102 100 99 103 103 103 103 104 106 110 123 122 100 103 104 118 106 127 127 124 177 189 189 180 U81 170 169 174 175 126 185 177 173 165 177 177 178 215 218 213 212 213 215 215 223 223 177 215 214 220 207 114 122 136 142 144 144 142 115 104 106 108 125 124 143 120 113 125 142 163 163 163 164 168 172 172 193 193 193 193 156 165 178 193 173 195 196 200 215 223 223 223 1223 227 227 227 227 197 220 224 227 217 111 115 120 120 123 123 123 123 118 117 118 119 115 123 121 118 119 126 132 133 135 136 137 139 139 141 142 143 148 130 136 140 145 138 155 157 159 161 167 169 168 168 169 169 166 166 157 166 168 167 164 112 117 125 127 130 130 128 120 114 114 115 121 118 129 121 117 121 131 141 142 143 144 146 149 149 157 157 158 161 138 145 151 159 148 167 169 171 177 183 185 '184 184 186 186 184 184 169 182 185 185 180 121 121 121 121 121 122 123 124 124 127 137 148 121 121 124 137 126 .163 164 164 164 164 164 165 165 165 16 167 168 164 165 165 167 165 1C8 1C8 169 1C9 169 170 171 172 173 173 173 174 168 169 172 174 171 February March.... April . . May June.. July. August September October... . November December Quarters- First.. Second Third Fourth Year 1917 Months- January February March April May June July August September October November December Quarters First Second Third Fourth Year 1918 Months- January February. . . ; March April.. May June July August ... . September October November December Quarters- First Second Third.... Fourth . . Year Price control began during month. 148 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1913-1915. [Base: Average prices July, 1913 to June, 1914=100.] The building materials group. Clay products class. Sand and gravel class. Quarry prod- ucts class. Cement class. Con- trolled. (3) Uncon- trolled. (13) All. (16) Con- trolled. (8) Uncon- trolled. (1) All. (9) All uncon- trolled. (15) Con- trolled. (6) Uncon- trolled. (1) All. (7) 1913 Months- January February . . . March April 99 100 100 100 100 101 101 101 101 100 100 100 100 100 101 100 100 101 100 100 99 99 99 98 98 99 98 99 98 100 99 99 99 99 96 96 97 87 87 97 97 97 97 97 100 100 97 97 97 99 97 97 97 98 100 100 100 100 100 100 100 98 98 97 100 100 99 99 100 100 100 100 100 101 101 102 102 102 101 101 100 100 102 101 101 101 101 101 102 102 102 102 102 102 102 101 103 101 102 102 102 102 98 98 99 100 100 100 100 100 100 100 99 99 98 100 100 99 100 100 100 100 100 100 100 101 101 101 101 100 100 100 100 101 100 100 99 99 100 100 100 100 101 101 100 100 100 102 100 100 101 101 100 98 99 98 98 99 98 99 98 99 99 99 100 98 98 99 99 99 100 101 102 101 101 100 100 99 100 99 100 101 101 101 99 100 100 105 108 101 103 102 100 100 96 97 99 100 105 105 102 97 102 102 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 98 99 98 98 99 98 99 98 99 99 99 100 99 99 99 99 99 100 101 102 101 101 100 100 99 100 99 100 101 101 101 99 100 100 105 108 101 103 102 100 100 96 97 99 100 105 105 102 98 102 102 98 98 100 100 100 100 101 101 101 101 101 101 98 100 101 101 100 101 101 101 98 98 98 98 - 98 97 96 96 % 101 98 98 96 98 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 91 94 99 103 104 103 104 104 105 105 102 100 95 103 104 102 101 96 95 99 99 97 97 97 99 99 98 96 87 97 97 98 94 96 85 88 86 85 86 87 91 92 93 94 97 96 86 86 92 96 90 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 91 94 99 102 104 103 104 104 105 105 102 100 95 103 104 102 101 96 95 99 99 97 97 97 99 99 98 96 87 97 97 98 94 96 85 88 86 85 86 87 91 92 93 94 97 96 86 86 92 9G 90 May June July August September. . October November. . December... Quarters- First Second Third Fourth Year 1914 Months- January February. .. March..:.... April Mav June July August September.. October November. . December. . . Quarters- First Second Third Fourth Year 1915 Months- January February. .. March April May ....... June July August September.. October November. . December. . . Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 449 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1916-1918. [Base: Average prices July, 1913 to June, 1916=100.] The building materials group. Clay products class. Sand and gravel class. Quarry prod- ucts class. Cement class. Con- trolled. (3) Uncon- trolled. (13) All. (16) Con- trolled. (8) Uncon- trolled. (1) All. (9) All uncon- trolled. (15) Con- trolled. .(6) Uncon- trolled. (1) All. (?) 1916 Months- January February . . . March April.. 107 109 112 112 113 114 117 118 119 123 125 127 109 113 118 125 117 130 134 136 138 142 146 150 151 152 152 154 155 134 142 151 153 145 156 163 163 164 172 177 U88 197 203 201 201 205 161 171 196 203 183 107 107 105 105 109 109 110 114 114 116 118 125 106 107 113 120 112 133 136 141 146 152 158 159 163 163 163 163 164 137 152 162 163 153 174 174 179 184 195 201 201 206 211 211 210 200 176 193 206 207 196 107 108 107 107 110 110 112 115 115 118 120 126 107 109 114 121 113 132 136 140 143 149 154 157 159 160 160 160 161 136 149 159 160 151 169 171 174 178 188 194 197 203 208 208 209 201 171 187 203 206 192 110 110 109 109 108 110 110 110 110 109 112 115 110 109 110 112 110 126 126 117 123 128 128 131 134 133 131 155 159 123 126 133 148 132 183 181 173 172 177 185 U82 185 184 1% 199 197 179 178 184 197 184 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 121 121 121 121 121 121 121 121 121 121 121 121 121 121 121 121 121 136 136 136 136 136 136 136 136 136 136 136 136 136 136 136 136 136 109 109 109 109 108 110 110 109 109 108 111 114 109 109 109 111 110 126 126 117 123 127 128 131 134 132 131 153 157 123 126 132 146 132 181 178 171 170 175 183 179 183 181 192 195 194 177 176 181 194 182 99 103 103 105 105 108 108 108 108 110 110 113 102 106 108 111 107 120 120 120 120 129 133 134 134 134 143 144 144 120 127 134 144 131 148 148 148 161 166 172 172 173 173 173 192 192 148 167 173 186 1 i 168 101 104 110 112 115 115 113 114 114 115 117 120 105 114 114 117 112 125 132 138 146 147 151 151 151 151 152 152 U49 132 148 151 151 146 151 152 167 167 172 172 171 174 173 172 176 173 157 171 172 174 169 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 130 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 170 101 104 110 112 115 115 113 114 114 115 117 120 105 114 114 117 112 125 132 138 146 147 151 151 151 151 152 152 149 132 148 151 151 146 151 153 167 167 172 172 171 174 173 172 176 173 157 171 172 174 169 May June July........ August September. . October November. . December. . . Quarters- First Second Third Fourth Year 1917 Months- January February . . . March . April... May June July . August September.. October November. . December... Quarters- First Second... Third Fourth Year 1918 Months- January February . . . March . April... May ... June July August September. . October November. . December. . . Quarters- First........ Second Third Fourth Year 125547 20 29 Price control began during month. 450 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The building materials group. Glass class. Lumber class. Paints and varnishes class. All uncon- trolled. (10) Con- trolled. (24) Uncon- trolled. (38) All. (62) Con- trolled. (1) Uncon- trolled. . (29) All. (30) 1913-Months January 102 102 102 102 102 102 102 102 102 101 101 101 102 102 102 101 102 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 91 90 90 90 90 90 90 90 90 90 95 91 90 90 90 91 90 115 115 115 115 115 115 105 105 105 99 99 99 115 115 105 99 108 98 98 98 98 98 98 97 97 97 90 90 90 98 98 97 90 96 90 90 90 91 91 91 92 92 92 109 109 109 90 91 92 109 96 103 103 103 103 103 103 102 102 102 101 101 101 103 103 102 101 102 99 99 99 98 98 98 96 96 96 93 93 93 99 98 96 93 97 93 93 93 91 91 91 90 90 90 95 95 95 93 91 90 95 92 111 111 111 111 111 111 104 104 104 99 99 99 111 111 104 99 105 99 99 99 98 98 98 96 96 96 91 91 91 99 98 96 91 96 91 91 91 91 91 91 91 91 91 104 104 104 91 91 91 104 94 90 88 92 92 94 94 94 102 102 102 100 100 90 94 99 101 96 100 100 100 100 100 98 98 98 106 102 102 83 100 100 101 95 99 82 94 98 100 98 100 96 94 90 96 110 118 92 100 94 108 98 99 100 100 100 99 100 100 100 102 101 100 100 100 100 101 100 100 100 100 99 100 99 99 100 101 102 100 99 99 100 99 101 99 100 99 100 100 103 104 105 120 117 116 117 116 119 100 104 118 117 110 99 99 100 100 99 99 100 100 102 101 100 100 99 99 101 100 100 100 100 99 100 99 99 99 101 102 100 99 98 100 99 101 99 100 98 100 100 103 103 105 118 116 115 116 115 119 99 104 116 117 109 February March April May June July August September October November . December Quarters- First Second . . . Third Fourth Year. . 1914 Months- January February... March. April May June July.... August September October... November December . . Quarters- First Second . Third Fourth . . Year. . 1915 Months- January February March. April May. June July August September . . . October November December Quarters- First... Second Third . Fourth Year GOVERNMENT CONTROL OVER PRICES. 451 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.1 The building materials group. Glass class. . Lumber class. Paints and varnishes class. All uncon- trolled. (10) Con- trolled. (24) Uncon- trolled. (38) All. (62) Con- trolled. (1) Uncon- trolled. (29) All. (30) 1916 Months- January 105 107 107 111 111 112 112 112 113 114 114 114 106 112 113 114 111 138 138 138 139 139 144 145 145 145 145 155 155 138 141 145 152 144 161 161 168 168 169 170 171 171 178 178 178 179 163 169 173 178 171 117 117 117 113 113 113 109 109 109 119 119 119 117 113 109 119 115 128 128 128 164 164 164 171 171 . 171 171 171 171 128 164 171 171 159 179 179 179 190 190 190 188 188- 188 184 184 184 179 190 188 184 185 99 99 99 99 99 99 100 100 100 103 103 103 99 99 100 103 100 111 111 111 125 125 125 131 131 131 137 137 137 111 125 131 137 125 142 142 142 152 152 152 153 153 153 154 154 154 142 152 153 154 150 111 111 111 108 108 108 106 106 106 113 113 113 111 108 106 113 109 122 122 122 150 150 150 156 156 156 159 159 159 122 150 156 159 146 166 166 166 176 176 176 176 176 176 173 173 173 166 176 176 173 172 121 134 139 153 146 134 121 118 121 146 165 181 132 144 120 163 140 188 188 204 213 228 236 224 200 226 242 260 271 194 225 217 258 223 276 287 294 307 307 287 283 287 283 287 278 271 286 299 284 278 287 124 132 137 154 155 152 146 143 144 142 146 150 131 154 144 146 144 154 156 161 165 171 174 180 181 183 176 172 175 157 170 181 174 171 176 176 190 205 207 210 222 228 232 231 227 226 181 207 228 228 211 124 132 137 154 154 152 145 142 142 142 147 151 131 153 143 147 144 156 157 163 168 174 177 182 182 185 179 177 180 159 173 183 178 173 181 181 195 210 211 214 225 231 235 234 229 228 186 212 230 230 214 February March April . . . May June July August September October November December. . Quarters- First Second . . . Third Fourth Year 1917 Months- January February March April... May June July August . . September October November . December Quarters- First Second . . Third Fourth Year 1918 Months- January . . ... February March April.. May June July August September October November December Quarters- First Second . . . Third . . Fourth Year. . . 'Price control began during month. 452 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] me cnemicais group. Mineral acids class. Heavy chemicals class. Miscellaneous inorganic chemicals class. Ferti- lizers class. Con- trolled. (6) Un- con- trolled. (2) All. (8) Con- trolled. (3) Un- con- trolled. (6) All. (9) Con- trolled. (2) Un- con- trolled. (18) All. (20) All con- trolled. (25) 1913 Months- January February . . . March. . 102 102 102 102 102 102 102 102 101 101 100 99 102 102 102 100 102 99 99 99 99 99 99 99 98 99 98 97 97 99 99 98 97 98 97 97 97 99 100 100 123 123 141 142 145' 146 97 100 129 144 117 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 133 133 152 152 152 152 100 100 139 152 123 102 102 102 102 102 102 102 102 101 101 100 99 102 102 101 100 104 99 99 100 99 100 99 99 98 99 98 97 97 99 99 99 97 99 97 97 97- 99 100 100 123 124 141 142 145 146 97 100 129 144 118 103 103 105 105 102 102 102 102 94 100 100 100 104 103 99 100 102 100 100 100 100 100 100 100 100 100 101 101 101 100 100 100 101 100 101 99 99 105 112 112 138 169 171 202 219 316 100 110 160 245 154 97 97 101 99 101 98 102 102 102 100 102 101 98 99 102 101 100 101 100 100 96 95 97 101 99 99 98 99 96 100 96 100 98 96 96 96 95 98 96 95 103 102 102 102 109 111 96 96 102 107 101 101 101 104 103 101 100 102 102 97 100 101 100 102 101 100 101 101 101 100 100 99 99 99 100 100 100 100 100 99 100 99 100 100 100 99 98 98 103 107 107 127 148 149 170 183 250 99 106 141 201 137 104 104 103 102 102 101 101 101 100 100 100 100 104 102 101 100 102 99 100 100 100 100 100 100 99 104 104 103 102 100 100 101 103 101 102 102 102 102 102 102 102 101 102 101 101 101 102 102 101 101 102 102 102 101 101 101 101 101 101 101 101 100 100 102 101 101 100 101 100 100 100 100 100 98 98 98 123 117 114 117 100 99 107 116 105 117 122 121 127 129 132 146 152 151 156 163 178 119 129 149 165 141 102 102 101 101 101 101 101 101 101 101 100 100 102 101 101 100 101 100 100 100 100 100 99 99 98 120 115 112 115 100 99 106 114 105 115 119 118 123 125 127 139 144 143 147 153 165 116 125 142 155 134 103 103 103 104 104 103 103 100 99 99 99 100 103 104 101 100 102 100 100 101 100 100 99 98 98 99 98 96 96 100 100 99 97 99 95 98 99 102 103 101 104 105 109 116 134 142 97 102 106 130 109 April May June July..: August September . . October November. . December. . . Quarters- First Second. Third Fourth.. .. Year 1914 Months- January February. .. March April . May June . July. .. August September. October.... November . December. . Quarters- First Second. . . Third Fourth Year 1915 Months- January February. .. March April... May June July August September . . October November. . December. . . Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 453 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] The chemicals group. Mineral acids class. Heavy chemicals class. Miscellaneous inorganic chemicals class. Ferti- lizers class. Con- trolled. (6) Un- con- trolled. (2) All. (8) Con- trolled. (3) Un- con- trolled. (6) All. (9) Con- trolled. (2) Un- con- trolled. (18) All. (20) All con- trolled. (25) 1916 Months- January February . . . March April May 183 194 197 196 181 180 153 139 137 133 132 133 192 186 143 133 163 133 134 144 149 155 148 152 167 170 171 176 186 137 151 163 177 157 i 181 191 197 202 184 174 154 154 154 142 142 142 190 187 154 142 168 208 208 208 208 208 245 208 170 170 152 152 152 208 220 183 152 190 137 137 137 138 120 120 138 138 138 148 151 158 137 126 138 ' 152 138 162 158 158 232 232 195 176 176 162 162 162 162 159 219 171 162 178 183 195 197 196 182 182 154 140 138 134 133 133 192 187 144 133 164 133 134 144 148 154 147 152 166 169 170 175 185 137 150 162 177 157 180 190 196 203 185 175 155 155 155 143 143 143 189 188 155 143 169 350 507 498 443 351 367 327 310 330 359 343 371 451 387 322 358 379 351 340 337 352 384 373 381 394 519 471 403 . 410 342 370 431 427 393 246 263 346 1323 299 293 245 254 301 331 327 278 318 305 267 312 301 115 117 117 121 120 122 125 123 121 123 120 126 116 121 123 122 121 166 164 168 179 185 190 193 196 192 203 215 214 166 185 194 211 189 225 217 217 225 230 226 224 235 227 243 252 239 220 227 229 245 230 274 381 375 339 276 288 262 249 262 283 271 292 343 301 258 282 296 291 283 283 296 320 314 321 330 414 384 342 347 286 310 355 358 327 239 316 304 292 276 271 238 248 277 303 303 266 287 280 255 290 278 103 104 106 108 108 107 107 107 107 106 107 110 104 108 107 108 107 112 117 122 133 135 135 135 151 154 149 i 151 150 117 134 147 150 137 132 149 149 132 133 133 133 133 133 132 132 132 144 133 133 132 135 218 251 256 281 275 261 243 226 225 232 221 228 242 273 231 227 243 231 237 229 242 247 248 254 252 256 254 233 234 232 246 254 240 243 252 235 236 258 261 256 240 240 235 254 251 230 241 258 238 245 246 199 227 231 253 248 236 221 207 206 211 202 208 219 246 211 207 221 212 218 211 224 229 230 235 236 239 237 220 ' 220 213 228 237 226 226 233 221 222 237 240 236 223 223 218 234 232 214 225 238 221 227 228 174 179 179 177 159 156 141 135 134 136 138 141 177 164 137 138 154 144 145 148 151 156 166 173 187 189 198 193 202 146 158 183 198 171 1 203 215 215 218 206 203 195 197 190 187 187 184 211 209 194 186 200 June July August September . . October November. . December. . . Quarters First. Second. . . Third Fourth Year. . 1917 Months- January February . . . March April... May June July. August September.. October November . . December. . . Quarters- First Second Third Fourth Year 1918 Months- January February . . . March... April... May June July August September . . October November. . December. . . Quarters- First Second Third Fourth Year Price control began during month. 454 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The chemicals group. Soaps and glycerin class. Essen- tial oils, flavor- ing and per- fum- ery mate- rials class. Wood distillation prod- ucts and naval stores class. Natural dyestuffs and tanning chemicals class. Con- trolled. (21) Uncon- trolled. (9) All. (30) All un- con- trolled. (20) Con- trolled. (5) Uncon- trolled. (4) All. (9) Con- trolled. (1) Uncon- trolled. (18) All. (19) 1913 Months- January February . . . March 96 99 100 101 100 99 99 102 102 102 101 101 98 100 101 101 100 100 100 99 99 99 97 98 98 114 106 99 98 100 98 103 101 100 98 102 102 102 102 99 97 98 109 125 152 158 101 101 102 145 112 99 99 99 99 99 99 99 100 100 100 101 101 99 99 100 101 100 100 100 100 100 100 100 100 100 100 99 99 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 98 99 99 100 99 99 99 101 101 101 101 101 99 99 100 101 100 100 100 100 99 99 99 99 99 104 101 99 99 100 99 101 101 100 99 100 100 100 100 99 99 99 102 107 115 117 100 100 100 113 103 90 96 93 94 97 102 106 107 104 105 101 99 93 97 106 101 99 97 97 97 98 96 95 98 94 102 99 92 89 97 96 98 93 96 88 76 77 76 75 75 76 72 71 72 77 80 80 75 73 76 76 121 121 121 119 119 118 118 116 116 108 103 103 121 119 117 104 115 95 95 87 87 87 87 87 87 88 89 93 102 92 87 87 95 90 110 113 113 128 128 138 154 160 . 173 173 181 198 112 131 162 184 147 118 129 133 118 105 105 101 93 98 92 98 97 127 109 98 96 107 103 109 102 100 102 104 104 103 100 99 98 96 105 103 103 98 102 93 90 90 94 100 90 94 91 87 96 128 144 91 94 90 122 99 119 126 129 118 109 110 107 100 104 97 100 99 125 112 104 99 110 100 104 97 96 97 99 99 97 96 96 97 98 101 97 98 97 98 98 97 98 105 109 105 113 113 115 121 145 161 98 106 114 143 115 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 153 211 252 252 252 100 100 155 252 152 102 102 102 103 103 102 102 102 102 101 99 99 102 103 102 100 102 99 99 99 99 99 99 99 99 124 125 129 127 99 99 107 127 108 122 124 125 136 138 148 152 170 182 195 209 226 124 140 168 210 161 102 102 102 103 103 101 101 101 101 100 99 99 102 102 101 100 101 99 99 99 99 99 99 99 99 119 119 122 121 99 99 106 121 106 117 118 119 128 129 136 140 166 189 208 220 233 118 131 165 220 159 April... May.. June July August September . . October November . . December. . . Quarters- First Second. Third Fourth. Year 1914-Months January February. . . March April... May June . . July August September . October.... November . December. . Quarters- First Second Third Fourth Year. 1915-Months January February . . . March April.. May June . . July August September . . October November . . December. . . Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 455 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] The chemicals group. Soaps and glycerin class. Essen- tial oils, flavor- ing and per- fum- ery mate- rials class. Wood distillation prod- ucts and naval stores class. Natural dyestuffs and tanning chemicals class. Con- trolled. (21) Uncon- trolled. (9) All. (30) All un- con- trolled. (20) Con- trolled. (5) Uncon- trolled. (4) All. (9) Con- trolled. (1) Uncon- trolled. (18) All. (19) 1916 Months- January February . . . March 154 161 171 187 189 177 164 142 148 166 180 190 162 185 151 179 169 187 193 196 208 238 260 253 238 260 265 1267 274 192 235 250 269 236 276 277 275 273 269 269 269 274 275 279 275 219 276 271 273 257 269 100 100 100 101 101 101 101 101 101 104 108 107 100 101 101 106 102 107 107 107 110 129 144 144 138 136 136 140 140 107 127 139 139 128 142 143 147 149 153 . 155 158 158 160 168 165 172 144 152 159 168 156 116 118 121 126 126 123 119 113 115 122 129 131 118 125 116 127 122 130 132 133 138 161 177 175 167 172 174 177 179 132 159 171 176 160 181 182 185 185 187 188 190 192 193 201 197 186 182 187 192 194 189 79 79 81 80 82 80 80 80 82 82 82 82 79 81 81 82 81 83 82 83 81 83 91 91 92 95 105 104 101 82 85 93 104 91 102 100 100 101 105 104 103 105 112 121 124 124 101 103 107 123 108 228 260 276 275 264 264 263 263 207 170 173 185 254 268 244 176 236 186 193 193 221 226 226 245 247 253 275 282 1291 191 224 249 282 237 284 293 284 221 221 200 201 200 200 200 200 200 288 214 200 200 226 151 156 148 146 117 128 129 145 140 136 139 144 151 131 138 140 140 151 145 142 137 141 135 126 126 139 154 156 146 146 137 130 151 141 143 146 138 131 141 182 212 212 241 259 266 255 142 152 221 260 194 176 190 189 188 165 173 173 183 162 147 150 158 185 175 173 152 171 162 161 158 164 168 164 165 166 176 193 197 193 160 166 169 .194 172 189 194 186 161 168 188 208 208 227 240 244 237 189 172 215 241 204 274 295 295 295 295 295 295 295 295 295 295 295 288 295 295 295 294 295 295 295 295 295 295 295 295 295 211 211 211 295 295 295 211 274 189 189 189 252 1252 295 201 201 201 201 201 201 189 266 .201 201 213 280 344 360 361 351 350 292 259 252 232 228 220 328 355 268 227 294 221 220 223 222 220 213 210 211 210 217 206 202 222 218 210 209 215 204 208 215 219 233 236 250 252 253 251 254 255 209 229 252 254 236 278 333 345 346 338 337 293 268 262 247 244 238 319 341 274 243 294 238 238 240 239 238 232 230 231 230 215 207 204 239 236 230 209 229 201 203 209 227 238 250 238 240 240 239 241 242 204 238 240 241 231 April Mav June July . August September . . October November. . December. . . Quarters- First Second Third Fourth Year 1917 Months- January February . . . March April... Mav . . June July August September . . October November. . December. . . Quarters- First Second Third Fourth Year 1918 Months- January February. . . March. . * April May.... June July August September . . October November . . December. . . Quarters First Second Third Fourth Year. Price control began during month. 456 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915- [Base: Average prices July, 1913, to July, 1914=100.] The chemicals group. Coal tar crudes, in- termediates, and dyes class. Drugs and phar- ma- ceuti- cals class. Pro- prie- tary prep- ara- tions class. Explosives class. Miscellaneous or- ganic chemicals class. Con- trolled. (1) Un- con- trolled. (18) All. (19) All un- con- trolled. (27) All un- con- trolled. (23) Con- trolled. (9) Un- con- trolled. (10) All. (19) Con- trolled. (2) Un- con- trolled. (12) All. (14) 1913 Months- January 83 83 83 100 100 100 100 100 100 100 100 100 83 100 100 100 96 100 100 100 100 100 100 117 117 117 117 117 117 100 100 117 117 109 117 117 117 833 833 833 1167 1167 1167 1418 1418 1500 117 833 1167 1445 889 112 112 111 114 113 112 112 107 105 103 103 102 112 113 108 103 109 95 94 95 95 95 94 101 106 195 . 225 267 233 95 95 134 242 141 255 411 448 554 435 572 628 638 648 663 666 680 371 520 638 667 549 109 109 108 113 112 111 111 106 105 103 103 102 109 112 107 103 108 95 95 95 95 95 95 103 107 187 215 252 222 95 95 132 230 138 242 383 417 581 473 596 679 688 697 735 737 758 347 550 688 741 582 103 103 100 100 100 99 98 99 101 100 99 99 102 100 99 99 100 100 102 101 100 100 101 101 106 136 134 124 118 101 100 114 125 110 117 116 117 122 126 132 132 138 147 152 174 178 116 127 139 168 137 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 101 101 101 101 100 100 100 100 100 100 100 101 101 100 100 101 103 102 104 103 103 103 103 103 103 100 102 102 103 103 103 101 102 98 98 99 99 97 98 95 100 98 96 96 97 98 98 98 96 98 97 98 97 107 109 111 143 142 158 175 181 177 97 109 148 177 133 104 104 104 104 104 104 104 103 103 99 102 103 104 104 103 101 103 98 97 99 99 96 98 94 98 102 101 106 104 98 98 98 104 99 188 187 186 189 188 200 200 198 209 212 217 219 187 193 202 216 199 104 103 104 103 103 104 103 103 103 98 102 102 104 103 103 101 103 98 97 99 99 96 98 94 98 100 99 103 102 98 98 98 102 99 161 161 160 165 165 174 183 181 194 201 207 206 161 168 186 205 180 107 103 103 103 103 101 101 101 101 101 99 99 104 102 101 100 102 99 99 99 99 99 99 99 142 142 137 142 142 99 99 128 140 117 137 125 125 142 148 154 154 148 155 152 166 166 129 148 152 162 148 106 105 105 102 101 101 100 100 101 101 99 98 106 101 100 99 102 99 101 100 100 100 100 98 98 101 103 102 102 100 100 99 102 100 102 100 100 100 100 104 106 108 109 109 117 119 100 101 107 115 106 106 105 105 102 101 101 100 100 101 101 99 98 106 102 100 99 102 99 101 100 100 100 100 98 99 102 104 103 103 100 100 100 103 101 102 101 100 101 101 105 108 108 110 110 119 120 101 103 108 116 107 February March April May... June July August September October November December Quarters- First Second Third Fourth Year 1914 Months- January February March April SSy :: June July August September October November Dp-wmbpr Quarters- First Second . . . Third Fourth Year . ... 1915 Months- January February... March April .. May June July August September October November December Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 457 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to July, 1914=100.] The chemicals group. Coal tar crudes, in- termediates, and dyes class. Drugs and phar- ma- ceuti- cals class. Pro- prie- tary prep- ara- tions class. Explosives class. Miscellaneous or- ganic chemicals class. Con- trolled. (1) Un- con- rolled. (18) All. (19) Allun- con- rolled. (27) All un- con- trolled. (23) Con- rolled. (9) Un- con- trolled. (10) All. (19) Con- rolled. (2) Un- con- rolled. (12) All. (14) 1916 Months- January 1500 1500 1500 1500 1500 1167 1167 1167 667 667 500 500 1500 1389 1000 556 1111 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 1500 500 500 500 500 500 500 500 500 500 83 500 500 500 360 464 668 652 643 560 560 531 465 306 377 363 363 358 654 551 416 361 495 350 344 329 307 299 '301 285 281 280 271 286 297 341 303 282 285 303 292 291 295 288 276 276 258 255 257 250 251 244 293 280 257 249 270 747 732 724 649 649 591 532 478 405 392 376 371 734 630 471 379 553 364 359 345 325 318 320 305 302 300 293 307 316 356 321 302 305 321 312 311 314 308 297 297 281 278 280 274 275 229 312 301 280 259 289 194 209 216 226 224 209 198 191 192 189 197 196 203 217 195 194 202 192 197 214 222 227 224 223 221 224 230 232 234 202 225 223 232 220 235 238 240 239 241 243 246 253 259 274 319 288 238 241 251 294 256 100 100 102 102 102 102 102 102 102 102 102 102 101 102 102 102 101 102 102 103 103 103 104 105 105 108 110 110 110 102 104 106 110 106 112 112 112 112 112 112 113 114 114 116 117 117 112 112 114 117 114 179 186 188 190 188 184 171 159 150 151 147 149 184 187 160 149 170 147 147 152 158 165 163 169 169 172 173 U75 178 149 165 170 175 166 174 179 183 184 183 179 167 166 166 162 163 141 179 182 166 155 170 211 212 208 201 188 189 186 182 177 171 169 156 210 192 182 165 187 140 132 130 128 136 137 133 134 136 136 140 140 134 134 134 138 135 138 138 138 135 136 136 135 137 137 136 137 135 138 136 136 136 136 202 204 202 197 188 187 182 175 169 165 162 154 203 191 175 160 182 142 137 136 137 145 144 144 144 142 147 151 151 138 143 145 149 144 149 150 151 149 150 149 145 146 145 144 144 137 150 145 145 142 146 166 160 160 171 171 199 191 181 175 158 158 160 162 180 182 159 171 175 175 183 184 201 211 211 208 201 201 206 210 177 199 207 206 197 217 1219 217 217 217 210 198 201 280 280 280 280 218 214 226 280 234 123 128 132 133 134 134 133 123 123 127 132 136 128 134. 127 132 130 136 135 135 142 151 152 197 205 210 232 216 212 135 148 204 220 177 202 199 199 198 198 198 199 199 199 198 200 195 200 198 199 198 199 124 129 133 134 135 135 135 125 125 128 133 137 129 135 128 133 131 137 136 137 143 153 153 197 205 210 232 216 212 136 149 204 220 177 202 200 200 199 199 198 199 199 201 200 202 197 200 198 200 200 200 February... March April May... June . . July August September October November December Quarters- First Second Third Fourth Year 1917 Months- January February March April Mav June July August September October November December Quarters- First Second Third Fourth Year 1918 Months- January February March April May June ...:... July August September October November December Quarters- First Second Third Fourth Year 1 Price control began during month. 458 HISTORY OF PRICES DURING THE WAR. There follows a separation of the 1,366 commodities carried in the Price Section Index Number into those controlled and uncontrolled. The separation indicated forms the basis for all comparisons in this section, for the chain index of controlled and uncontrolled prices and for frequent illustrations in the inquiry. The individual com- modity series counted as controlled are listed here under their proper classes, as numbered in the " History of Prices During the War," when one or more series of a class came under control. This method was also used to list the uncontrolled series. The class index numbers for the controlled and uncontrolled series run parallel The first of the 50 classes in the Price Section Index Number, for example, is known as "8. Feeds and Forage Class" and the last as "57. Miscellaneous Inorganic Chemical Class." A full count of the series in one of these classes under the controlled list, and of those in the same class under the uncontrolled list, makes up the full number of series carried by the Price Section for that class. GOVERNMENT CONTROL OVER PRICES. 459 (2) THE SERIES OF THE PRICE SECTION INDEX NUMBER CONSIDERED UNCONTROLLED. FOOD GROUP. 10. Corn and corn products class (3 series): Alcohol, grain, 190 proof. Beer, western, light or dark. Whisky, Bourbon, 4 years in bond, 100 proof. 11. Oats, buckwheat, and rice class (1 series): Puffed rice. 12. Barley, hops, rye, and their products class (4 series): Beer, light or dark. Hops, Pacific coast. Hops, prime to choice, New York State. Whisky, rye, straight, 4 years in bond, 100 proof. 13. Sugar and related products class (1 series): Honey, clover, comb, lower grade. 15. Edible vegetable oils class (1 series'): Cocoa beans, in bags. 16. Fruits, nuts, and wine class (7 series): Almonds, ne plus ultra, unshelled. Apricots, canned, X standard, 2J California. Claret, medium grade, California. Nuts, Brazil, medium, unshelled. Peaches, canned, X standard, 2$ California. Pineapple, canned X standard, 2J Hawaiian, sliced Walnuts, No. 1 soft shelled. 17. Spices and condiments class (10 series): Cassia, China rolls. Cloves, Zanzibar. Ginger, Cochin, A. B. C. Mace, Singapore. Nutmegs, 105s to 110s. Pepper Black, Lampong. Black, Singapore. Red, Japan. Salt- American, medium. Domestic. 18. Tea, coffee, and cocoa class (11 series): Cocoa Arriba. Bahia. Trinidad. Tea- Ceylon, Pekoe. Country, green, gunpowder. Country, green, imperial firsts. Darzeeling, fancy orange. Formosa, good. Goochow, good. Pingsuey, gunpowder, firsts. Pingsuey, imperial firsts. 460 HISTOKY OF PRICES DURING THE WAR. 19. Tobacco and tobacco products class (15 series): Broadleaf, Connecticut, second. Broadleaf, Pennsylvania, B's. Burley, good leaf, bright red. Cigars, little, under 3 pounds. Cigars, little, over 3 pounds. Cut plug. Habana Vuelta Abajo. Habana, remedies fillers. Habana, seed, medium and dark wrappers. Little Dutch, Ohio. Long cut. riug. Scrap. Sumatra. Zimmers Spanish. 22. Fish and oysters class (1 series): Codfish, salt, whole bank medium. CLOTHING GROUP. 23. Cotton and cotton products class (24 series): ' Cotton (raw materials) Cotton, average in the United States. Egyptian, brown F. G. F. Egyptian, medium. Good, No. 1, Oomra. Long staple, strict middling, l-inch. Long staple, strict middling, l-^-inch. Long staple, strict middling, l-|-inch. Long staple, strict middling, 1^-inch. Sea Island, extra choice. Short staple, upland middling, American. Short staple, upland middling, New York. Short staple, upland middling, New Orleans. Cotton manufactures Hosiery Men's half, 176 needles, 17/1 combed yarn. Women's full fashioned, 18/1 combed yarn, 33 gauge. Tire fabric, Sea Island, 17^-ounce, combed. Underwear Long staple, men's balbriggan, 178E, 5 pounds per dozen, 26 gauge, 22/1 combed yarn. Long staple, merino shirts and drawers, 50 per cent wool, 24 gauge. Long staple, men's shirts and drawers, flat fleece, 12 J to 13 pounds per dozen. Long staple, women's ribbed union suits, 12 pounds per dozen. Velvet, millinery (17 inch, 2.955 ounces per yard). Cotton waste Dirty card fly, mill run. No. 1 card strips, graded stock. For packing purposes. Dirty picker motes, mill run. GOVERNMENT CONTROL OVER PRICES. 461 24. Wool and woolen products class (45 series): Blankets, all-wool, 5 pounds to the pair. By-products Noils, three-eighths blood. Waste, card, one-fourth blood. Tops- Australian, 64s. Buenos Aires, 40s. Buenos Aires, 46e. Territory, 56s. Knit goods Men's shirts and drawers, 50 per cent wool, 24-gauge. Men's half-hose, seamless, wool. Worsted cloths Dress goods Sicilian cloth, cotton warp, 50-inch. Serge, botany, 11433, 7-ounce, 54-inch. Serge, 10-ounce, 54-inch. Storm serge, double-warp, 50-inch. Suitings Clay diagonal, 16-ounce, 56 to 58 inch. Serge, Fulton Mills, 3192, 11-ounce, 56 to 58 inch. Trousering Cotton warp, worsted-filled, 10 to 11 ounce, 60-inch. Woolen cloths Carpets Axminster, 6 2/3 by 7. Body Brussels, 9-wire, 256 pitch. Tapestry, 8-wire, 200 pitch. Broadcloth, dress, botany, 315, 10-ounce, 54 to 56 inch. Felt, upholstery, 11 to 13 ounce. Felt, interlining, 13-ounce. Overcoating Melton, Worumbo, 30-ounce, 58-inch. Twill, plain soft-faced, black, 24-ounce, 54 to 56 inch. Suits, serge, 5130. Shirtings- All-wool flannel, white Ballard. Black Thibet. Wool, Middlesex. Velour, dress, Worumbo, 829, 11-ounce, 54-inch. Woolen yarn Carpet yarn, 3-ply velvet, 55 yards to the ounce. Weaving yarn, 12 to 16 run, one-fourth blood. Weaving yarn, 20 to 28 run, three-eighths blood. Worsted yarn Carpet yarn, white 16s. French system l/40s, one-half blood. l/50s, domestic. 2/50s, fine territory or domestic. Knitting yarn 2/5s to 2/10s, one-fourth blood. 2/lls to 2/20s, one-fourth blood. 462 HISTORY OF PRICES DURING THE WAR. 24. Wool and woolen products class (45 series) Continued. Worsted yarn Continued. Knitting yarn Continued. 2/16s to 2/20s, three-eighths blood. 2/20s to 2/24s, low, one-fourth blood. 2/26s to 2/30s, one-half blood. Weaving yarns Bradford system 2/26s to 2/30s, one-fourth blood. 2/36s, three-eighths blood. 2/40s, one-half blood. 2/50s, fine territory or domestic. 25. Silk and silk products class (52 series): Raw silk, Chinese Canton filature, extra extra A. Steam filature, best chops, first and second choice. Steam filatures, second grade chops. Tsatlee improved, Stars and Stripes, and Red Indian. Tsatlee improved black lion, 1, 2, 3. Tussah, best chops. Raw silk, Japanese Filature, Kansai, 13 to 15 extra extra. Filature, Shinshu, No. 1, 13 to 15. Silk manufactures Broad silk Nos. 1 to 23, inclusive. Japanese Habutai, 6-momme, 36-inch. Japanese Habutai, 3^-momme, 36-inch. Hose- Ladies', all-silk, standard quality. Ladies', medium- priced, all-silk. Ladies', cotton feet, silk-top. Men's half, all-silk. Men's, cotton- top. Plush Tussah face, cotton back, artificial fur. Millinery, artificial-silk face, cotton back, 17-inch. Cloaking, 1410, Tussah warp, cotton filling. Ribbon Satin and taffeta. All-silk, satin, and taffeta. Velvet- Millinery, colored silk, spun silk warp, cotton filling. Spun warp, millinery. Semimanufactures Silk thread- Embroidery, No. 1. Embroidery, No. 2. Spun silk yarn Artificial silk, B quality, 150 denier, unbleached. Domestic, 60/1. Domestic, gray, spun, 60/2-1 Imported, 200/2, gray. Viscose yarn, artificial silk, B quality 360 denier, unbleached. GOVERNMENT CONTROL OVER PRICES. 463 26. Hides and skins and their products class (96 series): Calf-skin leather Full grained, bordered, black kip II , second grade. Full grained, bordered, black, L, second grade. Full grained, smooth, black, L, second grade. Full grained, smooth, colored, M, second grade. Snuffed, smooth, black, M, second grade. Cattle hide leather Case, bag and strap leather: Case, colors, 2 Bounce, B. Strap, colors, 9-ounce, B. Strap, colors, 6-ounce, B. Embossed bag and belt, 4^-ounce, B. Smooth bag, 3-ounce, B. Cattle side, upper leather Chrome, box, 1. m. weight, A quality. Chrome, black, slightly corrected, smooth. Chrome, patent. Sides, black gun metal, 1. m. weight, A quality. Waterproof, H weight, A quality. Offal, heads, bellies, and shoulders Shoulders Double-oak belting. Hemlock. Heads- Scoured oak heads. Union heads. Bellies- Hemlock dry hide bellies. Skirting California oak, No. 1. California oak, BB, No. 2 Horsehide leather Glove, buffed, M, second grade. Shoe, upper and patent. Shoe, upper and patent, M, second grade. Shoe, upper and patent, upper, M, second grade. Sheepskin leather Fancy and other stock Bag roans. Black, for beading, quarter lining, No. 1. Black, for beading, quarter lining, No. 2. Black, for beading, quarter lining, No. 3. Tops and plain black chrome. White alum. Glove stock Domestic Napa. Domestic suede. Fleshers. South African cape. Glazed kid leather Black and colors, export and domestic. 464 HISTORY OF PRICES DURING THE WAR. 26. Hides and skins and their products class (96 series) Continued. Glazed kid leather Continued. Shoe stock Black, dull and glazed. Colors. Imitation calf. Leather manufactures Bags, cowhide, 2J-ounce, 18-inch. Belting- First quality. Light doubles. Regular quality. Gloves, men's Unlined, mocha, P. X. M., first grade. One clasp, P. X. M., unlined cape, first grade. Silk lined, P. X. M., cape, first grade. Silk lined, P. X. M., mocha, first quality. Gloves, women's and children's Children's gloves, average grade. One clasp, P. X. M., cape, second grade. One clasp, P. K., cape, first grade. One clasp, P. X. M., first grade. Harness, sets Standard farm team. Team, all purposes. Single buggy, standard. Horse collars High grade. Standard imitation Scotch, Saddles- Riding, high grade. Spring seat, standard. Shoes, boys' and youths'- Boys' Grade I. Grade II. Grade III. Little Gents'- Grade I. Grade II. Grade III. Shoes, men's Black calf Oxford. Black kid, A-boot. Black, low price. Black, Rumania calf. Bench, combination tan Oxfords. Bench, patent colt. Farmer, mechanic, and laborer, 49-226. Farmer, mechanic, and laborer, 49-307. Handstitched patent kid Oxfords. Rumania calf, high. Steel or black calf A-boot. Tan, low price. Tan, kid, A-boot, Vici kid. GOVERNMENT CONTROL OVER PRICES. 465 26. Hides and skins and their products class (96 series) Continued. Shoes, misses' and children's Children's gunmetal, button, low heel, sizes 9-ll|. Misses', vici patent, button, low heel, sizes 12-2^. Shoes, women's Black kid, button, dull kid top. Black kid, lace, regular top, classic heel. Boots, McKay. Boots, welt. Brown kid, welt, leather heel, 7^-inch boot. Glazed kid, Oxford, leather heel. Glazed kid, welt, leather heel, 7^-inch boot. Kid Oxford, McKay. Low shoes, patent leather. Oxford, McKay. Oxford, welt. Patent kid, full seam vamp, black cloth top. Patent pump (T. and W.). Black kid (T. and W.). Suit case, cowhide, 2^-ounce, 24-inch. 27. Hatters' fur and fur felt hats class (10 series): Coney Best B. C. B. unpulled. French, best extra. French, best mottled. French, unpulled. Scotch, best B. C. B. Hair, best 001H. Hats- Fur felt- A. Fur felt No. 1. Knox. Stetson. 28. Hair, bristles, and feather class (22 series): Bristles- Chunking, superior No. 3. Chunking, superior No. 5. Hankow, superior No. 3. Hankow, superior No. 5. Tiensin, superior No. 3. Tiensin, superior No. 5. Brushes- Hair, prophylactic, No. 500. Hand, prophylactic, No. 400. Tooth, prophylactic, No. 1. Feathers Chicken, body, colored, dry picked. Chicken, body, white, dry picked. Duck, white or yellow. Geese, mixed gray. Geese, prime white. Turkey, body, white. Feather articles Mattress, 40-pound. Pillow, chicken feather, 18 by 25. 125547 20 30 466 HISTORY OF PRICES DURING THE WAR. 28. Hair, bristles, am 1 feather class (22 series)--Continued. Hair- Cattle, washed, domestic. Hog, processed, domestic. Horse manes. Horse tails. Hair cloth, 50-pick, 24-inch. 29. Button class (20 series): Raw materials Shells, fresh water pearl, all varieties. Shells, yellow Manila, bold and bold medium, average weight 1^ pounds Ocean, West Australian, bold medium, average weight T 8 ^ pound. Pearl, Tahiti, black chickens, average weight T % pound. Vegetable ivory (Tagua nuts). Manufactures Buttons Bone, white, commercial, 22-line. Bone, underwear, Navy prices, 22-line. Glass, jet, 18 line. Metal, Army blouse, 36-line. Metal, trouser, 27-line. Pearl- Ocean and fresh water. Imported, ocean, Trochus Japanese, first grade. Fresh water, all sizes and grades. Ocean, West Australian, fine shirt button, 16-line. Ocean, smoked Panama, 36-line. Ocean, Tahiti, | fine, 36-line. Ocean, West Australian, ^ fine, 36-line. Shoe, No. 4 bright black, regular finish. Vegetable ivory, flannel shirt, 24-line. Vegetable ivory, trouser, black, 22-line. RUBBER, PAPER AND FIBERS GROUP. 30. Rubber and rubber products class (24 series): Chemicals Barytes, domestic. Flowers, sulphur. Lithopone. Magnesite, calcined. Whiting, commercial. Zinc oxide, standard American process. Fabrics Cotton, 17^-ounce Sea Island, combed. Reclaimed rubber Mechanical. Truck tires. Rubber products Clothing, rubber Calendered, single texture, western. Calendered, double coated, fire coat. Double texture, bombazine coat. Single texture, woman's coat. GOVERNMENT CONTROL OVER PRICES. 467 30. Rubber and rubber products class (24 series) Continued. Rubber products Continued. Footwear, rubber- Arctics. Boots. Tires and tubes, rubber Pneumatic plain tread, 30 by 3^ inches. Pneumatic non-skid, 30 by 3 inches. Pneumatic non-skid, 33 by 4 inchea. Pneumatic tubes, 33 by 4 inches. Solid rubber tire, 36 by 5 inches. Sundries, druggists' Ice bags, cloth lined. Water bottles (all rubber). Rubber goods Conveyor belting, 8-inch, 5-ply. Water hose, -inch, 5-ply. 31. Paper class (40 series): Paper Nos. 1 to 20, inclusive. Boards Bogus bristol. Chip. News. Plain. Straw. Paper Blotting. Building, red rosin, sized sheeting. Tissue, Manila. Wrapping, Nos. 1 to 10, inclusive. Writing, bond, No. 4. Writing, coupon bond, No. 1. 32. Fibers and fiber products class (34 series): Raw materials Fibers American, Kentucky, double dressed. Flax, New Zealand, good, fair shipment. Istle, Palma. Jute, raw, M, double triangle, shipment. Sisal, Mexican, current shipment. Sisal, Java A, shipment. Manufactured products Cordage, jute Packing, coarse. Papermaker's twine. Rope, No. 1, -inch and above. Rope, No. 2, -inch and above. Twine, wool, A quality. Twine, wrapping, 2 to 6 ply. Twine, wrapping, hide rope form. Cord and twine India, dark color, No. 2. India, dark color, No. 9. 468 HISTORY OF PRICES DURING THE WAR. 32. Fibers and fiber products class (34 series) Continued. Manufactured products Continued. Cordage, hard fiber Manila rope, third-grade basis. Pure manila rope, basis f -inch diameter. New Zealand rope, basis f -inch diameter. Russian, tarred basis. Sisal, rope basis. Hemp and twine American, mixed, No. 9. American, mixed, No. 12. Pure, No. 9. Pure, No. 12. Oakum Best. Plumbers'. United States Navy. Navy. Rope, hard fiber Manila, basis price. Manila, lariat. Oilwell drilling cables. Sisal, basis, f -inch diameter. Transmission. Packing, fine. METAL GROUP. 33. Iron and steel and their products class (52 series): Manufactures Adzes, carpenters'. Anvils, American. Augers, regular, 1-inch. Axes, single-bit, base weight, first quality. Braces, common ball. Butts, loose-pin, wrought steel, 3 by 3^ inch. Carvers, stag handles, 8-inch. Chains, traces, wagon, western standard, straight with ring. Chisels, regular, socket firmer, 1-inch. Files, 8-inch, mill bastard, Nicholson. Gimlets, bits, common double cut. Hammers, Maydole, No. 1. Hammers, farriers', 2^-pound, turning. Hinges, gate, with latch, western. Hinges, spring, holdback, cast-iron. Hods, coal, galvanized, open, 17-inch. Hooks, bush, light. Hooks, grass, bent shank. Hooks and eyes, group 3, No. 40|. Knives and forks, cocobolo handles, metal bolsters. Knobs, door, steel, bronze plated. Locks, common mortise, knob lock, 3^-inch. Locks, padlocks. Lock sets. GOVERNMENT CONTKOL OVER PRICES. 469 33. Iron and steel and their products class (52 series) Continued. Manufactures Continued . Pans, dripping, refrigerator, galvanized, 16-inch. Planes, Sargent, No. 414 Jack. Pails, galvanized, light. Punches, saddlers' or drive, good. Rasps, horse, 16-inch, plain. Rings and ringers, hog, gray iron. Rings and ringers, bull rings, steel. Saws, cross-cut, Disston, No. 2, 6-foot, Champion tooth. Saws, hand, Disston, No. 8, 26-inch, skewback. Shaves, spoke, iron. Shovels, Ames, No. 2. Spoons, tinned, iron, table. Springs, carriage, black, l|-inch and wider. Staples, fence, bright. Swages, 1-inch. Tongs, 18-inch, blacksmiths'. Traps, fly, balloon, glove or Acme. Trowels, Johnson's, brick, 10^-inch. Truck, warehouse, hand. Turns, cupboard. Vises, solid -box, 50-pound. Vises, self-adjusting, jaw vises, Prentiss patent. Washers, cast-iron, -inch, barrel lots. Wedges, oil finish. Wheelbarrows, tubular steel, steel tray. Wire, clothes line, No. 20. Wire, cloth and netting, black. Wire, cloth and netting, standard galvanized. 34. Nonferrous metals class (11 series V. Antimony, ordinary brands. Brass Sheets. Rods. Copper Casting. Sheets. Wire. Lead- Sheet. Solder. Pipe. Tin, pig, straits. Zinc, prime western. 35. Rare metals class (4 series) : Chromite, 40 per cent and over Ferro vanadium. Spiegel eissen, 20 per cent. Tungsten ore, 60 per cent. 470 HISTORY OF PRICES DURING THE WAR. FUELS GROUP. 36. Petroleum and petroleum products class (22 series): Fuel oil, wholesale markets Tulsa, Okla. Vinton, La. Houston, Tex. San Francisco. Los Angeles, Calif. Gasoline, tank wagon Baltimore. Chicago. Kansas City. New York. San Francisco. Kerosene, standard white, 110 test. Kerosene, tank wagon Baltimore. Chicago. Kansas City. New York. San Francisco. Lubricating oil Dark, steam refined. Red paraffin. Paraffin, 903 sp. Spindle No. 150. Spindle No. 200. Paraffin, crude, 118 to 1,220. 37. Matches class (9 series): Best and cheapest. Japanese safety, extra quality, "Namco" brand. Nitedal brand, safety. Standard, No. 1. Standard, No. 2. Standard, No. 5. Safe home. Searchlight. Strike-on-the-box. BUILDING MATERIALS GROUP. l 38. Clay products class (13 series): Brick- Face, building, No. 1, color gray. Fire, high-grade. Paving, No. 1. Dinner sets, china, commercial grade. China, decorated in cheap standard treatments. Ground plastic. Kaolin, refined white. Pipe, sewer, salt-glazed, fire-clay. 1 This group includes a few materials which are not strictly building materials, such as china, etc., but which are included in the group because of convenience in classification. The aggregate importance of these materials is so small, however, that their inclusion has a negligible influence on the index number. GOVERNMENT CONTROL OVER PRICES. 471 38. Clay products class (13 series) Continued. Pipe, sewer, vitrified, salt-glazed, 4-inch. Sanitary ware, white, with glazed finish. Sinks, kitchen, porcelain. Stoneware, Ohio standard, white and black. Tile, drain, 4-inch. 39. Sand and gravel class (1 series): Railway ballast. 40. Quarry products class (15 series): Granite Dark, monumental. Light, building, light blue. Building, red, white, and blue. Crushed, No. 3, inch to inch. Monumental, red and gray Paving blocks. Limestone Crushed, for furnace flux. Crushed, railway ballast. Indiana building, buff, rough block. Lime, in bulk. Marble, sawn. Slate, green roofing, No. 1 grade, 20 by 10. Stone Building, gray blockstone. Curbing, 4-inch and under. Flagging, sawed. 41. Cement class (1 series): Natural rock cement. 42. Glass class (10 series) : Glass- Plate, polished, glazing area 3 to 5 square feet. Plate, polished, glazing area 5 to 10 square feet. Window, single, 40-A. Window, double, 40-A. Window, single, 40-B. Window, double, 40-B. Glassware Milk bottles, glass. Nappies, 4-inch, common. Pitchers, ^-gallon, common. Tumblers, table, J-pint. 43. Lumber class (38 series): Ash- Firsts and seconds, 4/4. No. 1 common, 4/4. No. 2 common, 4/4. Birch- Firsts and seconds, 4/4. No. 1 common, 4/4. No. 2 common, 4/4. No. 3 common, 4/4. 472 HISTORY OF PRICES DURING THE WAR. 43. Lumber class (38 series) Continued. Chestnut Firsts and seconds, 4/4. No. 1 common, 4/4. No. 3 common, 4/4. Sound, wormy, 4/4. Gum Firsts and seconds, 4/4, red. Firsts and seconds, 4/4, sap. No. 1 common, 4/4, red. No- 1 common, 4/4, sap. No. 2 common, 4/4. Hickory No. 2 common, 8/4. Maple, hard Firsts and seconds, 4/4. No. 1 common, 4/4. No. 3 common, 4/4. Oak, plain Firsts and seconds, 4/4. No. 1 common, 4/4. No. 1 common. No. 3 common, 4/4. Poplar, yellow Firsts and seconds, 4/4. No. 1 common, 4/4. No. 2 common, 4/4. No. 1 common, 8/4. Saps or selects, 4/4. Pine, eastern white Dimension: No. 1, S-l-S-L, 2 by 4 inches by 16 feet. Dimension: No. 1, S-1-S-1L, 2 by 10 inches by 16 feet. Inch finish, select, 1-inch. No. 2 boards, 1 by 8 inches by 12 feet. No. 3 boards, 12 by 10 inches by 20 feet. No. 4 boards, mixed widths, 10 to 20 feet. Selects, C and better, 6/4 M-L. Shop, No. 1, 8/4 M-L. Shingles, red cedar. 14. Paints and varnish class (29 series): Paint pigments Bone black. Lamp black. Prussian blue. Chrome green. Paris green. Ochre. Venetian red. Ultramarine. Umber. Chrome yellow. Paints and pigments Barytes, domestic, floated. Blanc fixe, pulp. GOVERNMENT CONTROL OVER PRICES. 473 44. Paints and varnish class (29 series) Continued. Paints and pigments Continued. Lead- Basic, sulphate. Basic, carbonate, dry. Red. Litharge. Lithophone. Paint, outside white. Whiting. Zinc oxide. Paint and varnish, raw materials- Casein. Carnauba wax. Copal gum, Manila Kauri gum, ordinary chips. Oil, china wood. Oil, linseed. Shellac, T-N. Turpentine, spirits of. Varnish, inside, oil. THE CHEMICALS GROUP. 45. Mineral acids class (2 series): Hydrocholoric acid (muriatic), 20 Baume. Rock salt, crushed, f. o. b. car, mines. 46. Heavy chemicals class (6 series): Bicarbonate of soda, commercial, 99.9 per cent pure. Caustic potash (potassium hydroxide), 88-92 per cent. Lime, burnt, in bulk. Rock salt, crushed. Salt cake (sodium sulphate), unground, spot. Sodium sulphide, 60 per cent. 47. Miscellaneous inorganic chemicals class (18 series): Alluminum sulphate, commercial. Barium chloride, white crystals. Borax (sodium tetraborate), crystals and granulated. Bromine. Calcium carbide. Calcium chloride. Copper sulphate (blue vitriol). Ferrous sulphate (copperas, sulphate of iron). Lead acetate (sugar of lead), brown, broken. Magnesium sulphate (epsom salts), technical. Mercuric chloride (bichloride of mercury, corrosive sublimate). Phosphorous, yellow. Potassium chlorate crystals. Potassium permanganate. Silver nitrate (lunar caustic). Sodium silicate (water glass, 40 Baume"). Sodium trio-sulphate (hypo). Zinc chloride. 474 HISTORY OF PRICES DURING THE WAR. 49. Soaps and glycerin class (9 series): Rosin, grade F, 280-pound barrel. Soap- Toilet, average of two leading brands.. White floating, Flotilla. White floating, Ivory. White laundry, Proctor & Gamble white naphtha. White laundry, crystal white. Octagon. Yellow rosin laundry, Lenox. Sodium silicate. 50. Essential oils, flavoring and perfumery materials class (20 series): Balsam, Peru. Benzoin gum, Siam. Musk, natural. Oils of Cassia. Bergamot. Cedar leaf. Cedar wood. Eucalyptus, Australia. Lavender flowers. Lemon. Neroli, petale. Orange, sweet, Italian. Peppermint. Rose. Sassafras. Wintergreen (sweet birch). Wormwood. Orris root, Florentine. .Vanilla beans. Vanillin. 51. Wood distillation products and naval stores class (4 series): Acetic acid, 28 per cent, in barrels. Acetone oil. Rosin, grade F. Turpentine, spirits of. 52. Natural dyestuffs and tanning chemicals class (18 series): Raw materials Divi-divi. Fustic sticks. Gambier, common or spot, ex-store. Hemlock bark. Logwood sticks. Oak bark. Sumac, Sicily, 29 per cent tannin. Quercitron bark. Manufactured materials Chestnut extract. Dextrine, domestic potato. Fustic extract, solid. Hemlock bark, extract, 25 per cent tannin. Indigo, Bengal. Logwood extract, solid. GOVERNMENT CONTROL OVER PRICES. 475 52. Natural dyestuffs and tanning chemicals class (18 series) Continued. Manufactured materials Continued. Oak bark extract. Quercitron extract, 51. Sodium bichromate. Turkey red oil. 53. Coal tar crudes, dyes and intermediates class (18 series): Coal tar crudes Creosote oil. Benzol, pure white. Napthaline, refined flakes. Solvent naptha. Coal tar intermediates Aniline oil. Beta-napthol. Paranitraniline. Phenol, U. S. P. crystals (carbolic acid). Salicylic acid. Coal tar dyes Bismark brown (2R) No. 284. \Chrysoidine R (No. 34). Chrysoidine Y (No. 33). Direct black, No. 462. Indigo, synthetic, No. 874. Nigrosine, spirit soluble, blue shade, No. 698. Nigrosine, water soluble, blue shade, No. 700. Orange II (No. 145). Scarlet, 2 R (No. 82). 54. Drugs and pharmaceuticals class (27 series): Aspirin, Bayer. Antipirine. Aloes, cape. Acetphenitidin. Acetanilid, C. P. Belladonna root. Bismuth subnitrate. Castor oil, 1, or AA. Cream of tartar crystals. Cocaine hydrochloride, large crystals. Citric acid crystals. Camphor, Japanese refined. Calomel, U. S. P. (mercurous chloride). Digitalis, domestic. Iodine, resublimed. Lanolin, anhydrous. Licorice root. Menthol. Morphine sulphate. Nux Vomica. Opium gum. Quinine sulphate. Salol. Sodium bromide, granular. Strychnine sulphate. Tartaric acid, crystals. Thymol. 476 HISTORY OF PRICES DURING THE WAR. 55. Proprietary preparations class (23 series): An antiseptic wash. An ant-acid. A disinfectant. A cathartic. A digestive remedy. Cough remedy No. 1. Cough remedy No. 2. A facial cream. A hair tonic. A headache remedy. Laxative No. 1. No. 2. No. 3. Liniment No. 1. No. 2. Mouth wash. Prepared food. Purgative. Salve. Talcum powder. Tonic- No. 1. No. 2. Tea. 56. Explosives class (10 series): Commercial explosives Dynamite, 40 per cent N. G. Dynamite, 40 per cent L. F. Am. Powder F. F. F., black. Military explosives Ammonium nitrate. Picric acid. Powder Smokeless, foreign cannon (water dried). Smokeless, United States military rifle (air dried). Phenol. Trinitrotoluol, crude, melting point 76. Trinitrotoluol, refined, melting point 79.6 to 80. 57. Miscellaneous organic chemicals class (12 series): Ether. Hexainethylenetetramine. Hydroquinone. Lactic acid, 22 per cent. Oxalic acid. Pyrogallic acid. Solvents- Alcohol, denatured. Alcohol, grain, 190 proof. Amyl acetate. Carbon bisulphide. Chloroform. Fusel oil, amyl alcohol. GOVERNMENT CONTROL OVER PRICES. 477 (3) THE SERIES OF THE PRICE SECTION INDEX NUMBER CONSIDERED CONTROLLED. FOOD GROUP. 8. Feed and forage class (22 series): Corn chop. Corn Kafir, No. 3, white. Mixed, cash, No. 3. Feed, molasses alfalfa. Meal- Alfalfa, new choice. Cottonseed. Linseed. Molasses, black strap. Hay- Alfalfa, No. 2. Clover, No. 1. Clover, mixed, No. 1. Johnson grass, No. 2. Prairie, No. 2. Wild oat. Choice, tame oat. Timothy, No. 2. Fancy wheat. Hulls, cottonseed, loose. Oats, cash, No. 3, white. Straw- Oat. Rye. Wheat. 9. Wheat and wheat products class (12 series): Biscuit, social tea. Bread, loaf, before baking. Cake, Regina, pound, raisin, and plain. Crackers Graham. Soda, in boxes. Cream of wheat. Flour, wheat, standard patents. Macaroni. Mill feeds- Bran. Middling, standard, 100-pound jute sacks. Shorts, mixed. Wheat, No. 2, red winter, cash. 10. Corn and corn products class (6 series): Corn, yellow, cash, No. 3. Corn meal, white, in bulk. Corn oil, crude, in 400-pound barrels. Cornstarch, powdered, in bags. Corn sirup, 43 crystal, in 100-pound barrels. Hominy grits, in bulk, carload lots. 478 HISTORY OF PRICES DURING THE WAR. 11. Oats, buckwheat, and rice class (9 series): Buckwheat. Flour- Aunt Jemima pancake. Buckwheat. Gold medal. Teco pancake. Oats, No. 3, white, cash. Oatmeal, carload lots. Rice- Honduras head, domestic, clean. Japanese head, domestic, clean. 12. Barley, hops, rye, and their products class (4 series): Barley, fair to good. Malt, western grade, standard. Rye, No. 2, Minneapolis. Rye flour, pure, medium straight. 13. Sugar and related products class (9 series): Corn, No. 3, yellow. Glucose, 42 mixing. Molasses, fancy, blended, in barrels. Sugar Beet, refined, standard granulated. Cane, raw, 96 centrifugal. Cane, refined, fine granulated, in bags or barrels. Cane, refined, granulated, in cartons, cased. Cane, refined, cubes, in barrels. Cane, refined, No. 7, soft, brown, in barrels. 14. Vegetables and truck class (15 series): Beans Navy, or pea, dried. Pinto, dried. Dried, unclassified. Cabbage Fresh, unclassified. Fresh, white, Danish. Corn, New York standard, canned. Onions, fresh, unclassified. Peas- Fresh, shelled. Canned, No. 3 sieve. Peanuts Dried, unclassified. Dried, shelling stock, or grade No. 3. Potatoes Fresh, white, unclassified. Fresh, sweet, unclassified. Tomatoes Fresh, canners' stock. Canned, standard. 15. Edible vegetable oils class (13 series): Beans, soya. Butter, cocoa, in bulk. / GOVERNMENT CONTROL OVER PRICES. 479 15. Edible vegetable oils class (13 series) Continued. Cottonseed. Copra, in bags. Lard substitutes, in barrels. Oil- Coconut, crude, in tank cars. Cottonseed, crude, in tank cars. Cottonseed, prime, summer yellow, in barrels. Corn, crude, in barrels. Corn, refined, in barrels. Palm kernel, crude. Soya bean, crude, in barrels. Olive, edible. 16. Fruits, nuts and wine class (10 series): Apples Average of all varieties. Baldwin. Ben Davis. Dried. Bananas, Jamaica. Lemons, California. Oranges, California Valencias and navels. Peaches, dried, California, choice. Prunes, dried, California, 60-70. Raisins, dried, choice, seeded. 18. Tea, coffee, and cocoa class (9 series): Coffee- Caracas, washed. Colombian, Bogotas. Costa Rica, fair to good. Cucuta, fair to good. Hayti, unwashed. Mocha, small. Padang, interior. Rio, No. 7. Santos, No. 4. 20. Live stock, meats and fats class (48 series): Bacon Short, clear sides, smoked, loose. Rough sides, smoked, loose. Breakfast, loose. Beef- Fresh native sides. No. 1 plate. Salt, extra mess. Cows, choice to prime. Hams, smoked, loose. Heifers, choice to prime. P Dressed. Live, bulk of sales. Live, carload lots. Live, light to heavy. Heavy fair to choice heavy shipping and heavy butcher. Common to choice light bacon, and fair to fancy select butchers. 480 HISTORY OF PRICES DURING THE WAR. 20. Live stock, meats and fats class (48 series) Continued. Lambs Good to prime. Carload lots. Lamb, dressed, round. Lard- Compound, in tierces. Leaf. Pure leaf, kettle rendered, tierces. Prime, steam, loose. Prime, contract. Stearine. Margarine, standard, high-grade. Meat, mutton, dressed. Mutton, legs. Pork loins. Pork, salt mess. Sheep Prime. Carload lots. Ewes. Wethers. Oleomargarine, standard, uncolored, pound carton. Oleo oil, extra. Steers- Feeding, 790 to 839 pounds. Feeding, 940 to 989 pounds. Choice to prime, heavy beeves. Good to choice, corn-fed. Native beef. 1,180 to 1,229 pounds. Good native, fresh carcass. Steer- Chucks, No. 1. Loins, No. 1. Rounds, No. 1. Tallow, packers' prime. Veal calves, prime, live. Veal, city dressed, good to prime. 21. Poultry and dairy products class (43 series): Butter: Creamery Extra, San Francisco. Extra, Philadelphia. Seconds, New York. Firsts, New York. Fancy, New Orleans. Extra, New York. Elgin. Centralized firsts, Cincinnati. Firsts, Chicago. Extra, firsts. Extra, Chicago. Seconds, Boston. Extra, Boston.* GOVERNMENT CONTROL OVER PRICES. 481 21. Poultry and dairy products class (43 series) Continued. Butter Continued . Whole milk, extra, at Cincinnati. Cheese- Whole milk, American twins. New York State, full cream, large colored. Colored. California, flats, fancy. Flats, average and fancy. Long horn. Chickens, broilers, western, combed. Ducks. Eggs- Average, fresh, best, St. Louis. Average, best, fresh, New York. Candled, western, New Orleans. Firsts- Western, Boston. Fresh, Chicago. Fresh, Cincinnati. Fresh gathered, New York. Extra, western, Philadelphia. Selected, pullets. Fowls Live, Chicago. Live, choice, New York. Dressed, western killed, corn fed. Dressed, western, dry picked, and packed. Turkeys- Dressed, iced. Live. Milk- Fresh, Chicago. Grade B, New York. Fresh, San Francisco. Evaporated. Sweetened, condensed. Oleomargarine. 22. Fish and oysters class (14 series): Bluefish. Carp. Cod. Flounder. Haddock. Hake. Halibut, western white. Herring, lake. Mackerel, Spanish Salmon. Salmon, mild cured. Salmon, pink, No. 1 tails, canned. Sardines, |-oils, keyless, canned. Trout, lake. 125547 20 31 482 HISTORY OF PRICES DURING THE WAR. CLOTHING GROUP. 23. Cotton and cotton products class (57 series): Cotton goods: Damask, bleached, 64-inch. Denim, Amoskeag, 28-inch, 2.20-yard. Drilling, Massachusetts D standard, 30-inch, 2.85-ounce. Duck- Sail, numbered, firsts, 22-inch, No. 6. Standard, United States Army, firsts, 28^-inch, 8-ounce. Shelter tent, first quality, 35-inch, 1.90-yard. Wide, numbered, firsts, 60-inch, No. 8. Cotton linters Grade A, cut 25-40. Grade B, cut 45-75. Grade C, cut 80-125. Grade D, cut 130-175. Cotton manufactures Bags, 2 bushel, Amoskeag, 16-ounce. Blankets, 90-inch, colored, 2 pounds to pair, 54 by 74. Calico, American standard, 28-inch, 64 by 64. Cambric, Lonsdale. Cashmere, cotton warp, 36-inch. Cotton, absorbent, Maple wood grade. Flannels, unbleached, 31^-inch, 3 yards. Gauze, bandage, bleached, 36-inch, 20 by 12. Gauze, Brunswick, bleached, 36-inch, 20 by 12. Gingham, Lancaster, 26J-inch, 6.5 yards. Lawn, 40-inch, 88 by 80, 8.5 yards. Mattress, Anchor, from linters, 4/6 by 6/4, 45 pounds. Percale, 36 inches, 5.35 yards. Print cloths 39-inch, 72 by 76, 4.25 yards. 27-inch, 64 by 60, 7.60 yards. Sateen, 39-inch, 72 by 120, 3.50 yards. Sheeting Brown, 36-inch, 44 by 48, 2.85 yards. Brown, 36-inch, Ware Shoals LL, 4 yards. Bleached, 90-inch, Wamsutta, S. T. Shirting Bleached, 36-inch, 76 by 84, 3.90 yards, in gray. Muslin, 36-inch, Rough Rider, 4 yards. Rope, first grade, 1^-inch. Tape, No. 7118, 60 by 38. Ticking, Amoskeag, A. C. A. 32-inch, 2.05 yards. Tire fabric, 17^-ounce, Egyptian, carded. Thread, cotton, 6-cord, white, 200-yard spool. Towels, Terry, 22 by 44 and 83 by 32. Twill, 29.5-inch, 104 by 48, 2.15 yards, rwine, wrapping, first grade. Seed, cotton. Waste, cotton, Osnaburg. GOVERNMENT CONTROL OVER PRICES. 483 23. Cotton and cotton products class (57 series) Continued. Cotton manufactures Continued . Yarns Carded, white, northern mule spun, 22/1, cones. Carpet, short staple, 8/3 warp, twist slack. Hosiery Long staple, 10/1, combed, C. C. hosiery, twist, cones. Short staple, 30/1, northern carded, double roving mule spun. Weaving Short staple 10/1 carded, white, northern mule spun, cones. 16/2, southern 2 ply skein. Long staple 24/1, eastern peeler cones, carded. 36/1, eastern peeler cones, combed. 50/2, eastern peeler cones, combed. 60/2, eastern peeler cones, combed. 70/2, eastern peeler cones, combed. 80/2, eastern peeler cones, combed. Egyptian twist, 60/1. Egyptian, single, 70/1, skeins, combed. Sea Island, 80/1, combed. 24. Wool and woolen products class (21 series): Raw materials- Domestic wool Ohio, fine, unwashed, delaine. Ohio, three-eighths blood, unwashed. Ohio, one-fourth blood, unwashed. Territory, staple, F. and F. M., scoured basis. Territory, combing, one-half blood. Imported wool Adstralian, choice Sydney and Geelong, merinos, 64s, scoured basis. Australian, choice Sydney and Geelong, merinos 70s, scoured basis. Chinese, China ball, No. 2, open grain basis. South American Buenos Aires 36s, grain basis, 28 per cent shrinkage. 40/44 grain basis, 30 per cent shrinkage. 46s, grain basis, 34 per cent shrinkage. Montevideo 50s, grain basis, 35 per cent shrinkage. South African 58/60s, scoured basis. 60/64s, scoured basis. 70s, scoured basis. Substitutes Clips- Blue worsted. Reworked blue serge. Rags, graded Blue serge. Light skirted cloth. Light worsted. Rags, A shoddy, reworked blue serge. 484 HISTORY OF PRICES DURING THE WAR. 25. Silk and silk products class (2 series): Waste silk Japan, best white Prisons. Japan, pierced cocoons. 26. Hides and skins and their products class ((!() series): Cattle hides- Country Branded. Cows, heavy. Steers, No. 1, GO pounds, and up. Imported Bogota. Vera Cruz. Imported dry Packer. Puerto Cabella, 21 to 23 pounds, selected. Tuxpam, 20 to 27 pounds, selected. Vera Cruz, 18 to 19 pounds, selected. Packer Cows Branded. Light native. Native, over 55 pounds. Steers- Butt branded. Extreme light Texas. Heavy native. Light Texas. Spready. Calfskins Country. Country kips Kips No. 1, 15 to 25 pounds. Selected, 5 to 7 pounds. Selected, 7 to 9 pounds. Selected, 9 to 12 pounds. Green, trimmed to butchers- No. 1. No. 2. New England 4 to 5 pounds. 5 to 7 pounds. 7 to 9 pounds. 9 to 12 pounds. 12 to 16 pounds. 16 pounds and up. Selected 5 to 7 pounds. 7 to 9 pounds. 9 to 12 pounds. Goatskins Amritsars 1,000 pounds to 500 skins. 1,110 pounds to 500 skins. 1,200 pounds to 500 skins. GOVERNMENT CONTROL OVER PRICES. 485 26. Hides and skins and their products class (60 series) Continued. Goatskins Continued . Brazil, first selection. Rio Hache. San Luis Zacatecas. Sheep and lambskins- Country Lambs. Sheep and shearlings. Imported Capeskins, glove. Lambs, Greek and Macedonian. Lambskins, Spanish. Mochas. Packer- Lambs. Sheep and shearlings. Horsehides, country. Leather, cattle hide- Belting butts Light standard tannages. Heavy standard tannages. Medium standard tannages. No. 1 heavy. Harness leather Grade B. California oak. Grade 2. Sole leather Buenos Aires, dry hide, hemlock. M. W., reject second grade. Buenos Aires, dry hide, hemlock, O. W., 2d grade. Hemlock packer slaughter, No. 1. Hemlock slaughter, No. 1, best tannages. No. 1 scoured oak bends, all weights. No. 1 scoured oak backs, all weights. RUBBER, PAPER, AND FIBERS GROUP. 30. Rubber and rubber products class (10 series): Rubber, crude African, Niger flake. Brazilian Para- Cameta. LTpper Caucho Ball. Upriver, coarse. Upriver, fine. Centrals, Guayule Corinto scrap. 20 per cent, guaranteed. Plantation Hevea First latex crepe. Fine smoked sheets, ribbed. Rubber substitute Gutta joolatong. 31. Paper class (1 series): News print rolls, car lots. 486 HISTORY OF PRICES DURING THE WAR. 32. Fibers and fiber products class (10 series): Raw materials Kapok, prime Japara. Manila ^air, current shipment. Good, current shipment. Midway, bhipment. Manufactured product Binder twine Manila, 600 feet to the pound. Pure manila, 650 feet to the pound. Standard manila or extra, 550 feet to the pound. Standard, 500 feet to the pound. White sisal, 500 feet to the pound. Burlap, 40-inch, lO^-ounce, Calcutta. METALS GROUP. 33. Iron and steel and their products class (36 series) : Raw materials and slightly manufactured products- Iron ore Mesabi Bessemer, 55 per cent. Mesabi non-Bessemer, 51 per cent. Coke, Connellsville furnace, f. o. b. ovens. Pig iron Basic. Bessemer. Foundry, No. 2 southern. Scrap, steel Heavy melting. No. 1 railroad wrought. Billets, steel- Bessemer. Open-hearth. Bars- Iron, common, from mill, Pittsburgh. Sheet steel, Bessemer. Sheet steel, open-hearth. Steel. Shapes, steel, structural. Plates, steel , tank . Manufactured products Rails, steel Bessemer, standard. Open-hearth, standard. Spikes, steel- Standard railroad. Skelp, grooved. Pipe, cast iron, 6-inch. Hoops, steel. Sheets- Black, No. 28. Blue annealed, No. 10. Galvanized, No. 28. GOVERNMENT CONTROL OVER PRICES. 487 33. Iron and steel and their products class (36 series) Continued. Manufactured products Continued. Tin plate, domestic coke, 14 by 20 inches. Wire rods, Bessemer. Wire fence Plain, annealed, Nos. to 9. Barbed, galvanized. Calk, toe, blunt and medium, 1 prong. Chains, American coil. Nails- Cut, eightpenny, fence and common. Wire, eightpenny, fence and common. Rivets, button head, structural. Screws, wood, 1-inch, No. 10, flat head. Shoes, horse and mule. 34. Ferro-alloys, nonferrous and rare metals class (13 series): Aluminum 98 to 99 per cent, contract price. 98 to 99 per cent, open market. Copper Electrolytic. Lake. Lead, pig. Nickel, ingot. Nickel, shot and ingot. Zinc, sheet. Quicksilver. Ferromanganese, 80 per cent. Manganese ore, 49 per cent. Platinum, refined ingots. Silver, fine. FUELS GROUP. 35. Coal and coke class (27 series) : Coal- Anthracite, f. o. b. New York Chestnut. Egg- Pea. Steam. Stove. Bituminous (districts in which produced) Cartersville and Franklin, 111. (2 series). Clinton, 111. (2 series). Eastern Kentucky (2 series). Georges Creek, Md. (2 series). Hocking, Ohio (2 series). Mount Olive, 111. (2 series). Pittsburgh, No. 8, Ohio (2 series). Springfield, 111. (2 series). Standard, 111. (2 series). Western Kentucky (2 series). Coke-y Birmingham. Connellsville. 488 HISTORY OF PRICES DURING THE WAR. 36. Petroleum and petroleum products class (5 series) : Crude petroleum California, at wells. Gulf, barrel, 42-galkm, at wells. Illinois. Mid-continent. Pennsylvania. BUILDING MATERIALS GROUP. 38. Clay products class (3 series): Brick, common. Tile- Hollow, building. Hollow blocks, standard size. 39. Sand and gravel class (8 series): Sand- Building. Building, coke and engine. Fine building. Foundry. Fire and furnace. Glass. Molding. Gravel. 41. Cement class (6 series): Cement, Portland (markets) New York. New England and Middle States. Illinois. Indiana. Ohio, Indiana, Illinois, and Michigan. Western Washington . 43. Lumber class (24 series) : Douglas fir Is and 2s, v l-inch. No. 2 and better, drop siding, 1/6. No. 1 common, SIS, 1 by 8 inch and 10-inch. Is and 2s, 2-inch. Hemlock, eastern No. 1 boards, SIS, 1 by 8 inch by 16 feet. No. 1 fencing, SIS, 1 by 16 inch. No. 1 piece stuff, S1S1E, 2 by 4 inch by 16 feet. Timbers, rough, 4 by 4 inch to 8 by 8 inch by 16 feet. Pine, southern yellow Finish B and better, 6-inch and wider. Common boards, No. 1, S2S, 1 by 10 inch. Common boards, No. 2, S2S, 1 by 8 inch. No. 1, S1S1E, 2 by 8 inch by 16 feet. Timbers, S1S1E, 6 by 8 inch by 16 feet. Spruce Boards Covered, 5-inch and up. Matched. GOVERNMENT CONTROL OVER PRICES. 489 43. Lumber class (24 series) Continued. Spruce Continued. Bundled furring, 2-inch. Frames 8-inch and under. 9-inch and under. 10-inch. 11 or 12 inch. Random 2 by 3; 2 by 4. 2 by 8. 2 by 10. 2 by 12. 44. Paints and varnishes class (1 series): Soya bean oil . CHEMICALS GROUP. 45. Mineral acids class (6 series): Nitrate of soda, 95 per cent. Nitric acid, 42 Baume. Pyrites, urn size, lump ore wash. Sulphuric acid 60 Baume". 66. Sulphur, brimstone, stick, crude. 46. Heavy chemicals class (3 series) : Bleaching powder, 35 per cent chlorine. Caustic soda, 76 per cent, spot. Soda ash, light, 58 per cent, spot. 47. Miscellaneous inorganic chemicals class (2 series): Ammonia, liquid anhydrous, in cylinders. Arsenic, white. 48. Fertilizers class (25 series) : Acid phosphate, 16 per cent phosphoric acid. Bones Raw ground, 4 per cent ammonia and 50 per cent bone phosphate. Ground, steamed, 1 per cent ammonia and 60 per cent bone phosphate. Carbonate of potash, calcined, 80 to 85 per cent. Cottonseed meal. Cyanamid, 22 per cent ammonia. Dried blood, 12 to 13 per cent ammonia. Fish scrap, dried, 11 per cent ammonia, and 14 per cent bone phosphate. Hoofmeal. Kainit. Manure salt. Manure salt, double, 48 to 53 per cent basis. Muriate of potash, 80 to 85 per cent. Nitrate of soda, 95 per cent. Sulphate of ammonia. Sulphate of potash, 90 to 95 per cent. Tankage- Garbage. Slaughterhouse, concentrated, 14 to 15 per cent ammonia. Slaughterhouse, crushed, 9 and 20 per cent. 490 HISTORY OF PRICES DURING THE WAR. 48. Fertilizers class (25 series) Continued. Phosphate rock Florida, high grade, hard, 77 per cent. Florida land pebble, 68 per cent. Tennessee, domestic, 78 to 80 per cent. Pyrites, urn size, lump ore wash. Sulphuric acid, 60. Sulphur, brimstone, stick, crude. 49. Soaps and glycerin class (21 series): Fats and oils Degras, American. Grease Brown. House. Oil- Coconut, domestic, in tanks. Corn, crude, in barrels. Cottonseed, crude, in tank cars. Menhaden, southern. Palm, Lagos. Red. Soya bean. Whale, natural, winter. Olive. Soapstock, cottonseed oil, loose 65 per cent f . a. 50 per cent f. a. Stearine White grease, loose. Yellow grease, loose. Tallow- Packers', No. 1. Packers', No. 2. Other materials Caustic soda. Glycerine Dynamite, carload lots, drums included. C. P., in bulk. 51. Wood distillation products and naval stores class (5 series): Acetone. Acetate of lime. Alcohol, wood, refined, 95 per cent. Methyl acetone. Ethyl methyl ketone. 52. Natural dyestuffs and tanning chemicals class (1 series): Quebracho, extract, solid. 53. Coal tar crudes, intermediates and dyes class (1 series): Toluol, pure. 56. Explosives class (9 series): Aqua ammonia, 20 per cent. Cotton linters. Glycerine, dynamite. Nitrate of soda, 95 per cent. GOVERNMENT CONTROL OVER PRTCES. 491 56. Explosives class (9 series) Continued. Nitric acid, 42 Baume. Powder, smokeless, Army and Navy, cannon, air dried. Powder, smokeless, American, cannon, water dried. Sulphuric acid, 66 Baume. Toluol. 57. Miscellaneous organic chemicals class (2 series): Carbon tetrachloride. Formaldehyde. 3. THE CHAIN INDEXES OF CONTROLLED AND UNCON- TROLLED PRICES. Perhaps no statistical measure is more significant for making broad economic interpretations of the effects of price control upon war-time prices than a series of controlled and uncontrolled price index numbers. The outstanding shortcoming of such index num- bers is, however, that no single device can be made to answer sev- eral general queries with accuracy. The so-called controlled index number for the period 1913-1918 by necessity includes commodities as controlled from the beginning of 1913, while none were actually controlled until August, 1917, and while all did not come under con- trol until the signing of the armistice. It is, therefore, an excellent measure of the war-time price movement of the so-called controlled commodities or the uncontrolled commodities, but a crude measure of the immediate effects of each regulation as it came on. To show these effects more accurately, there has been devised a chain index of controlled prices showing each month, for all prices under control by the end of the month, the per cent of rise or fall from the prices of the identical commodities in the month preceding. There has been made, too, a like chain of uncontrolled prices. This schedule permits, by reason of its changing base, the gradual transfer of com- modities from the uncontrolled list to the controlled list. The con- trolled list, which increases from month to month, and the uncon- trolled list, which decreases in exact degree, are thus strictly accu- rate for each month. There is, so far as known, no more precise statistical measure of the immediate effects of regulation upon prices than the chain index of controlled and uncontrolled commodi- ties constructed here. 1 1 The task of constructing a chain index of 1,366 commodities from April, 1917, to December, 1918, in view of the volume of transfers from the uncontrolled to the controlled list after September, 1917, was a prodigious one. It involved the separate handling of thousands of 8 and 9 figure aggregates, which do not show in the completed index, anew each month. Some few liberties were necessarily taken, and com- binations of series were sometimes entered together during the same month in order to reduce the calcu- Jations involved. These few cases were considered with care, however, andi t is believed that the general result is as satisfactory as any that could be made. The chronological order in which commodities were transferred from the uncontrolled to the controlled list follows: 1917. September. Coal, coke, copper, wheat, iron ore, pig iron, steel bars, steel shapes, steel plates. October. Steel blooms and billets , sheet bars ,wire rods, skelp, sugar. November. Steel sheets, pipe, steel scrap, tinplate, lead, corn, oats, barley, fresh vegetables, vegetable oils, live stock, poultry, fish, fresh fruits, southern or yellow pine, ammonia, smokeless cannon powder. December. Douglas fir, wood distillation products, cement, remainder of iron and steel class. 492 HISTORY OF PRICES DURING THE WAR. The chain index, which was made simply to find whether Govern- ment regulation affected current war prices, was made to begin in April, 1917. The "all commodities" chain index, and that for each group and class figured, contains its full lot of commodi- ties from the month of our entrance into war until the first month of regulation. The whole lot of com- modities were then separated, more and more each month as regulation was ex- tended, into those controlled and un- controlled. The "all commodities' 7 chain index in April, 1917, for example, contains 1,366 commodities. But regulation soon began and in Sep- tember the commodi- ties were separated into 50 controlled and 1,316 uncontrolled . Weighted chain index for prices. "All commodities'' (1.366 series) r^ i f i f i controlled and uncontrolled during the war, showing changes as -^ aC control is extended. (Controlled, 0-573 series; uncontrolled, 1,366- after, Until the C6SSa- tion of hostilities, the extension of regulations necessitated the transfer of certain series from the uncontrolled list to the controlled list. By October, 1918, the original 1,366 uncontrolled commodities had been separated into 573 controlled series and 793 uncontrolled prices. 1918. January. Nitrate of soda, all fertilizers excepting sulphur and sulphuric acid. February. Zinc, formaldehyde, toluol, arsenic, animal feeds, coffee. March. Aluminum, binder twine, marula fiber. April. Spruce, hemlock, nickel, quicksilver, silver, newsprint paper, caustic soda, soda ash, bleaching powder, carbon tetrachloride. May. Wool, hides and skins, rubber, platinum metals, manganese ore, cotton linters, quebracho. June. Sulphuric acid, nitric acid, sulphur, harness leather. July. Cotton goods and cotton yarns, brick, building tile, sand and gravel. August. Woolen rags, glycerin, sole and belting leather, crude petroleum, kapok. September. Silk waste. October. Burlap. 5 5 5 WEIGHTED CHAIN INDEX FOR PR1CE5 Of ALL COMMODITIES 136G 3EB1ES~ CONTROLLED 6, UNCONTROLLED DURING THE WAR SHOWING CHANGES AS C.ONTROL 15 EXTENDED CONTROLLED 0^573 5CRJC5 UNCONTROLLED 1366 793 3CR1C3 5 5 5 5 5 5 5 5 5 S 5 5 5 5 5 5 S 5 5 5 5 o 1917 i9ie> | i i 1 5 I? i 3 i | a * ] t 1 1 s S X 5 \ .(& BOO X ~*L *;^* 5 rt^ <" ** ^ "**' 5 5 r** m V J 1 \ f \ g " . X ** *-- >*. - 5 *. ^ s* ^. = ^_ 5 \ $ 1 I * K 3 i \ I 1917 1 191& GOVERNMENT CONTROL OVER PRICES. 493 To repeat, the chain index of controlled and that of uncontrolled commodities for each class figured, each group, and "all commodi- ties/' represents a series of percentages of the aggregate rise or fall each month by comparison with prices of the identical commodities during the preceding month. For example, when 16 additional series were brought under control in October, 1917, they were not compared simply with the 50 series that made up the list of controlled commodi- ties for September. But, in order to be strictly accurate, new Sep- tember aggregates were figured for September using the whole 66 series which by the end of October were under control. It was thus found that the weighted prices of the 66 series under control during October, by reason presumably of extended regulation, fell 14.78 per cent below the corresponding 66 price series for September, when only 50 of them were regulated. And, by the same process, it was found that the remaining 1,300 series still uncontrolled in October, rose 1.11 per cent above their own level for September. Each con- trolled commodity was taken out of the uncontrolled list and put into the controlled list in the month when control began. The chain index of controlled commodities throughout, therefore, is a comparison of prices during the month when regulation began with the prices of identical commodities in the month before, and the uncontrolled index is a comparison of prices still uncontrolled by the end of each month with identical series for the month preceding. 1 The 1,366 commodities, which went into the "all commodities'' chain index, each month rose steadily higher than their level of the month before until August, 1917. And from, September on until the signing of the armistice the commodities that were not under control moved steadily upward in price. But each month some of these un- controlled commodities were put under regulation and there is a marked difference in the behavior of the chain index of controlled commodities. The Government had begun to control prices in earnest by September, and the September controlled prices fell 8.05 per cent below their own August level while those under control in October fell 14.78 per cent below their own September level. It is of especial note that while the uncontrolled index continued upward from our declaration of war to the signing of the armistice, the controlled index made an enormous drop at the beginning of control, and from No- vember, 1917, held relatively stable. The behavior of the food group chain index, significantly, is very like that of " all commodities " in which it has a large weighting. The clothing group chain index shows that the controlled series went somewhat higher in their monthly rises between May and September, 1 A fuller commercial description of each of the above series of commodities, which were all taken from the Price Section index number, may be had by a study of the list of controlled commodities selected previously for the controlled index number. 494 HISTORY OF PRICES DURING THE WAR. 1918, than those not under control, and then fell below. The out- standing features of the chain index for the metals group are the extent to which prices were scaled from previous heights and the strength with which they were held afterward. Metal prices, in September, 1917, were brought 9.32 per cent below their August level; in October they were brought 24.82 per cent below their September level; and in November they were brought 9.68 per cent below their October level. Metal prices, once reduced to this lower level, show scarcely the variation of 1 per cent up to the signing of the armistice. The fuels group chain index shows a fairly stable price movement except for the enormous increase of 20.9 per cent in April, 1918, the beginning of the new "coal year" when the annual contracts, under which a very large proportion of all coal mined is sold, were reversed. GOVERNMENT CONTROL OVER PRICES. 495 m ^ // B? 'gSS JX . ? [- 'gc D i p: ^g,^ m Q i ,"*- O Z 'J~> ^-^ Q t HJUJ i? ft tjfcJ- y v Jug OJ j !^ g.s's J?O d o ^^ Q ail. 1 * - ^fL t a j s uu. \ 1*1 fcj^poj g| ~j v * ^ 111 2 2 ^u z ^.Q \ 8 SI gO^ '"'ir 8 Q * 1+3 w r ^0 n7 QU \ t ju ic Prewar base price $1.2600 100 3. 8800 308 2.9000 230 148 163 187 198 198 198 186 203 206 208 219 233 166 198 203 220 197 238 238 260 269 289 317 357 357 *308 230 230 230 245 292 341 230 277 230 230 230 230 230 230 230 230 230 230 230 221 230 230 230 227 229 $21.7917 100 55. 2500 254 47. 5000 218 163 170 190 206 197 195 204 213 216 220 242 262 174 200 211 241 207 291 298 312 344 404 436 436 385 321 1254 218 218 301 395 381 230 326 218 218 218 218 218 218 ftl 218 218 218 218 207 218 218 218 214 217 $1.2600 100 7.0500 560 3. 2500 258 151 171 201 218 225 230 230 233 238 244 264 280 174 224 234 263 224 287 298 344 357 357 563 714 711 1560 258 258 258 309 426 662 258 413 258 258 258 258 258 258 258 258 258 258 258 246 258 258 258 254 257 51.4600 100 5.1900 355 3. 0000 205 163 167 177 188 191 191 191 198 201 201 218 236 169 190 197 218 194 236 244 255 260 316 397 424 424 1355 205 205 205 245 324 401 205 294 205 205 205 205 205 205 205 205 205 205 205 197 205 205 205 203 205 53.4375 100 12.0000 349 7. 7500 225 107 111 116 131 131 167 171 171 171 171 171 171 112 143 171 171 149 204 204 218 233 233 247 349 349 349 349 !225 225 208 238 349 267 265 225 225 225 225 225 225 225 225 225 225 225 218 225 225 225 223 225 SO. 0735 100 .1800 245 .1500 20 ^ 318 333 340 343 327 265 212 204 204 207 248 2i6 331 312 207 21 274 286 286 286 278 259 259 f 259 259 259 259 259 259 286 265 259 259 267 259 '245 204 204 204 204 204 204 204 204 204 204 236 204 204 204 212 Made equal to ... Market price when control began Found equal to Government price Found equal to 1916 Months- January . . . February March April Mav June July August . . ... September October November December Quarters- First Second Third Fourth .... Tear 1917 Months- January February March April May June July August September . . October November December. Quarters- First .... Second Third Fourth Year 1918 Months- January February . March April... May June July August September October . . . November December Quarters- First Second... Third .. Fourth Year Government control began during month. 528 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Fuel Group. Building Materials Group. Coal, anth- racite, chest- nut, New York (per long ton.) Coal, bitumi- nous, Pitts- burgh, No. 8 Ohio, Colum- bus anc Detroit (per short ton). Coke, Con- nells- ville furnace f. o. b. ovens (per short ton). Petro- leum, crude, Mid- conti- nent (Ivans. Okla.) at wells bbSo I Cement, Port- land, domes- tic, New York (per bbl.) Doug- las fir com- mon, No. 1, Iby8 by 10 Wash- ington mills (perM bd. ft.) Penna. hem- lock, No. 1 boards. 1 by 10-16 f. o. b. mill (perM bd. ft. ) South- ern or yellow pine, com- mon boards No. 1, S-2-S 1 by 10 inches Ark. (perM ibd. ft.) New Eng- land spruce, ran- dom, 2 by 10 Boston (perM bd. ft.) $24. 2600 100 46.3700 191 45. 0000 185 19 104 104 106 106 104 101 100 100 100 100 100 103 105 100 100 102 100 100 100 100 100 90 98 98 97 96 96 98 100 100 98 97 99 98 97 97 98 98 97 96 96 96 96 99 106 97 98 96 100 98 Prewar rTase price $3. 7800 100 4. 9000 130 4.8000 127 107 104 101 90 92 94 96 100 103 103 103 103 104 92 99 103 99 103 163 103 93 95 97 99 112 105 105 105 105 103 95 102 105 101 105 105 104 93 94 96 99 102 104 105 106 106 104 94 102 105 102 $1.0900 100 2. 5400 233 2. 0000 183 113 98 93 97 % 94 92 99 100 106 115 100 101 96 97 107 100 98 99 99 99 97 97 95 91 91 96 102 102 99 98 92 100 97 103 105 95 94 88 90 89 94 95 98 97 100 101 91 92 99 96 $2. 0625 100 11.7500 570 6. 0000 291 178 149 124 113 104 107 115 121 119 105 93 91 1.50 108 118 97 118 93 93 91 93 93 91 91 87 84 81 75 79 93 93 87 78 88 79 76 76 79 79 79 85 81 81 97 115 112 77 79 82 108 87 $0.9725 100 2. 2500 231 $1. 5800 100 2. 5600 162 1.8500 117 100 100 100 100. 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 : 100 91 89 89 85 85 85 90 90 90 111 97 87 86 97 92 $7.9167 100 18. 5000 234 18. 5000 234 120 133 133 139 133 120 107 107 101 101 101 101 128 131 105 101 116 101 101 107 101 101 101 101 107 101 95 95 88 103 101 103 93 100 95 95 101 95 95 95 95 95 101 101 107 120 97 95 97 109 99 $24. 8300 100 32. 6200 131 32. 0000 129 95 96 100 101 101 101 101 101 101 100 100 100 97 101 101 100 100 100 101 101 101 102 94 94 94 94 94 94 93 100 99 94 94 97 93 89 89 90 90 90 89 89 89 90 94 98 91 90 89 94 91 $13.8750 100 27. 5000 1980 24.000 173 Made equal to Market price when control began Found equal to Government price Found equal to 1913 Months- January February 85 90 90 90 90 90 94 102 105 105 105 105 89 90 101 105 97 105 107 107 102 76 76 76 76 66 56 56 56 107 86 74 56 81 56 56 41 41 41 41 41 51 76 82 82 102 51 41 57 89 60 March April May .. June July 105 105 105 97 97 97 August September October November. December Quarters First Second ""16,5" 97 101 101 101 101 97 97 97 94 94 94 101 101 101 101 97 94 101 98 97 97 97 101 101 101 101 101 101 130 130 130 97 101 101 130 107 Third Fourth . Year 1914 Months - January February March April... May June July August . September . October I'ovember December ... Quarters- First Second Third Fourth Year.. . 1915 Months- January February. March April . . May June July August September October. .. November December Quarters- First Second... Third.... Fourth Year.... GOVERNMENT CONTROL OVER PRICES. 529 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged. ] Fuel Group. Building Materials Group. Coal anth- racite, chest- nut, New York (per long ton.) Coal, bitumi- nous, Pitts- burgh, No. 8 Ohio, Colum- bus and Detroit (per short ton). Coke, Con- nells- ville furnace, f. o. b. ovens (per short ton). Petro- leum, crude, Mid- conti- nent (Kans.- Okla.) at wells (per bill.) Cement Port- land, domes- tic, New York T, Doug- las fir com- mon, No. 1, Iby8 by 10 Wash- ington mills (perM bd. ft.) Penna. hem- lock, No. 1 boards, Iby 10-16 f. o. b. mill (perM m. ft.) South- ern or yellow pine, com- mon boards, No. 1, S-2-S Iby 10 inches Ark. (perM bd. ft.) New Eng- land spruce, ran- dom, 2 by 10 Boston (perM bcL ft.) Prewar base price $3. 7800 100 4.9000 130 4. 8000 127 106 106 106 109 105 107 109 122 115 119 140 128 106 107 112 129 113 129 129 122 106 128 122 124 130 M32 132 132 141 126 119 128 135 127 141 141 141 133 133 133 133 133 141 141 169 169 141 133 136 160 143 $1.0900 100 2.5400 233 2.0000 183 96 97 95 102 102 103 103 103 123 228 42o 366 96 102 109 340 162 442 438 335 248 374 392 269 1269 184 184 224 224 405 338 240 211 299 224 224 224 224 2 224 3215 219 219 219 219 219 219 224 222 219 219 221 $2.0625 100 11.7500 570 6. 0000 291 139 127 145 137 115 127 127 127 133 152 279 279 137 126 129 236 157 352 364 412 352 339 461 594 485 1570 291 291 291 376 384 549 291 400 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 $0.9725 100 2. 2500 231 $1.5800 100 2.5600 162 1.8500 117 106 106 106 106 106 106 106 106 106 106 106 120 106 106 106 110 107 122 128 128 136 136 136 134 134 134 134 134 1134 126 136 134 134 133 136 136 136 149 2162 164 165 165 184 203 203 203 136 159 170 203 167 $7.9167 100 18.5000 234 18.5000 234 126 133 145 145 145 139 126 120 114 114 126 139 13") 143 120 126 131 145 152 152 164 208 234 234 234 234 208 208 1234 149 202 234 217 201 234 234 234 234 234 2 234 246 246 2 246 208 208 208 234 234 246 208 231 $24.8300 100 32.6200 131 32.0000 129 97 97 99 99 99 99 99 100 100 100 103 103 98 99 100 102 100 103 107 107 111 116 130 130 129 129 129 129 128 106 119 129 129 121 132 132 131 '131 129 129 129 2 129 137 137 137 137 131 130 132 137 132 $13.8750 100 27.5000 198 24.0000 173 130 130 130 117 117 117 123 123 123 133 133 133 130 117 123 133 126 137 137 137 191 191 191 184 184 184 198 M98 198 137 191 184 198 177 202 202 202 205 205 2 205 213 213 213 213 213 213 202 205 213 213 208 $24. 2600 100 46. 3700 191 45.0000 185 107 110 110 110 110 108 107 108 113 114 118 130 109 109 109 121 112 130 137 144 146 146 142 138 136 151 Made equal to Market price when control began Found equal to Government price Found equal to 1916 Months- January . 125 133 151 158 158 158 155 106 92 92 93 117 137 158 119 101 129 143 173 173 173 173 173 173 173 204 204 204 204 165 173 184 204 182 204 204 204 229 3 229 229 229 1229 229 229 229 229 204 229 229 229 224 February March April . . May June July August September October November. December Quarters - First Second . . . Third Fourth Xear.... 1917 Months- January February March April . Mav June July August September... . October November 166 164 145 137 142 165 146 163 168 181 1191 190 188 "188 188 188 188 188 188 172 190 188 188 184 December Quarters- First Second Third.... Fourth Year.... 1918 Months- January February. . . March April. Mav June July August September... October November. December Quarters First Second Third.... Fourth . Year i Government control began during month. a Government revised price during month. 12554719 34 Prices fixed August 10, 1918, retroactive to May, 1918. 530 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Chemicals group. Alcohol, wood, refined, 95 per cent, New York (per gal.). Arsenic, white, New York (perlb.). Caustic soda, 76 per cent spot, New York (perlb.). Nitrate of soda, 95 per cent, New York (percwt.). Sulphuric acid, 60 Be., New York (perlb.). Prewar base price ... . . $0.4558 $0.0310 $0.0181 $2.3183 $0.0085 Made equal to 100 100 100 100 100 Market price when control began 1.3500 .1600 .0490 4.4938 0125 Found equal to 296 516 271 194 147 Government price .7900 .0900 .0350 4.2250 .0090 Found equal to. 173 290 193 182 106 1913 Months- January . - - 110 161 100 112 100 110 153 100 112 100 March * 110 137 105 113 100 April 108 133 105 113 100 May 108 129 103 113 100 June . 108 113 103 113 100 July 108 109 103 110 100 August . - - 99 109 103 110 100 September 99 103 96 106 100 October ... 101 103 100 104 100 November 101 97 100 101 100 December 101 101 100 95 100 Quarters First .. 110 151 102 113 100 Second 108 125 104 113 100 Third.... 102 107 101 109 100 Fourth 101 100 100 100 100 Year 105 121 102 109 100 1914 Months- January 99 93 100 93 100 February . . 99 97 100 96 100 March 99 97 100 97 100 April . . 99 97 100 96 100 May 99 97 100 97 100 June 99 97 ICO 96 100 July 99 97 100 93 100 August 99 90 100 90 100 September 99 161 100 92 100 October 99 161 102 86 100 November. '. . . . 99 145 102 82 100 December 99 129 102 82 100 Quarters- First 99 95 100 95 100 Second 99 97 100 96 100 Third 99 116 100 91 100 Fourth 99 145 102 83 100 Year 99 114 101 92 100 1915 Months- January . . 99 129 102 82 100 February 99 129 98 82 100 March 99 129 98 82 100 April 99 129 112 95 100 May " 99 129 129 99 100 June... 99 121 129 99 100 July . . . 99 121 192 101 100 August 99 113 262 106 100 September... 99 121 262 101 118 October . 99 113 290 110 118 November 110 113 290 125 118 December 110 113 290 125 118 Quarters- First 99 129 99 82 100 Second 99 126 124 98 100 Third 99 118 239 103 106 Fourth.. . . 106 113 290 120 118 101 122 188 101 106 GOVERNMENT CONTROL OVER PRICES. 531 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Chemicals group. Alcohol, wood, refined, 95 per cent, New York (per gal.). Arsenic, white, New York (perlb.). Caustic soda, 76 per cent spot, New York (perlb.). Nitrate of soda, 95 per cent, New York (percwt.). Sulphuric acid, 60 Be., New York (perlb.). Prewar base price $0.4558 Made equal to 100 Market price when control began 1.3500 Found equal to 296 Government price .7900 Found equal to 173 1916 Months- January 121 February 132 March 143 April 143 May 143 June 143 July 143 August 143 September 143 October 154 November 165 December 197 Quarters- First 132 Second 143 Third 143 Fourth 172 Year 147 1917 Months- January 197 February 219 March 219 April 219 May 219 June 219 July 219 August 219 September 219 October 241 November 263 December i 296 Quarters- First 212 Second 219 Third 219 Fourth 267 Year 229 1918 Months- January 296 February 296 March 296 April 199 May 199 June 199 July 202 August 201 September 201 October 201 November 201 December 201 Quarters- First 296 Second 199 Third 201 Fourth 201 Year.... 224 $0.0310 100 .1600 516 .0900 290 145 161 177 210 210 202 194 194 185 194 234 161 207 195 204 192 266 339 403 548 581 581 581 548 581 516 548 532 570 570 532 502 516 1516 290 298 298 290 290 290 441 296 298 290 331 $0.0181 100 .0490 271 .0350 193 845 352 339 304 276 249 193 193 214 221 306 212 270 242 235 235 242 318 345 387 398 497 470 428 428 237 302 427 442 199 320 271 1271 249 262 214 215 235 249 235 229 264 261 222 238 246 $2.3183 100 4.4938 194 4.2250 182 140 147 155 147 147 134 134 134 129 125 125 129 147 142 132 127 137 143 158 162 164 172 179 183 198 204 201 196 148 166 185 200 175 U94 191 194 221 222 194 2213 2216 2208 2187 2190 2190 193 213 213 202 Government control began during month. 2 Government revised price during month. 532 HISTORY OF PRICES DURING THE WAR. 5. A COMPARISON OF CONTROLLED RAW-MATERIAL PRICES WITH THE PRICES OF THEIR UNCONTROLLED MANUFACTURED PRODUCTS. The theory underlying practically all of our Government regulation over prices was that stabilization among the prices of manufactures would result from a control simply of the basic raw materials. It was appreciated, of course, that for a rigid exercise of control, regula- tion must also be extended over the products of manufactures. But, by and large, the Government was content to fix maximum prices for the basic raw materials and leave their finished products to adjust themselves in price as they would. l It is of especial interest, in view of this prevailing method of price fixing, to note whether the price control of raw materials actually did operate to stabilize the prices of their primary finished products. Significant bases for that sort of inquiry may be had from a compari- son of the raw-material prices for copper, iron and steel, lead, wool, rubber, hides and skins, lumber, and crude petroleum, 2 which were controlled, with certain of their manufactures which were not. Such a comparison here has been facilitated by turning the actual prices for several controlled raw materials, and their corresponding uncontrolled products, into relative prices by making their respective prewar actual prices (July 1, 1913, to June 30, 1914) equal 100. The fluctuations of copper wire followed closely those of the highly controlled electrolytic copper. The prices of chains and saws did not rise as high as those of pig iron, but those of chains especially became more stable after control of pig iron began. The fluctuations of lead pipe were almost identical with those of lead. Woolen yarn and suiting prices followed the general rise in wool prices but seem to have been stabilized after control of wool set in. The effect of a control of calfskins upon the prices of shoes can scarcely be made out from a comparison of their respective market prices. * The most notable exceptions to this common practice were wheat and iron and steel, the products of which were controlled in large part as well as the raw materials. ' Crude petroleum was stabilized informally by the industry but not fixed in the same sense that the other raw materials were. GOVERNMENT CONTROL OVER PRICES. 533 S 8 8 S "8 8 r* i: in 1 S J...-*,,^ ___ ains and ember, It o June, It 534 HISTORY OF PRICES DURING THE WAR. "E^.4 ft 536 HISTORY OF PRICES DURING 'THE WAR. RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Copper. Iron and steel. Lead. electro- lytic, New York (perlb.). Copper wire, base prices, New York (perlb.). Pig iron, Marion- ing or She- nango Valley furnace (pergr. ton). Chains, traces, wagon, western standard, straight, with ring, 6*-S-2, New York (per 100 pr.). Saws, crosscut, Diston No. 2, 6-foot champion tooth, Phila. (per saw). Lead, S& York (perlb.). Lead pipe, New York (per cwt.). Prewar base price $0. 1492 100 112 102 100 104 105 100 98 105 111 111 104 97 105 103 105 104 104 97 98 96 96 95 93 90 83 81 76 79 87 97 95 85 81 89 92 98 100 115 125 132 128 115 119 120 126 136 97 124 121 127 117 $0. 1618 100 114 108 99 99 103 103 99 99 103 110 110 99 107 102 100 106 104 99 99 97 96 96 94 90 90 83 80 77 86 98 95 88 81 91 90 97 97 103 124 124 130 124 117 117 117 130 95 117 124 121 114 $13.3183 100 123 122 121 119 114 109 108 106 105 104 98 95 122 114 106 99 110 94 99 98 98 98 98 98 98 98 96 94 94 97 98 98 95 97 94 94 94 94 94 95 96 106 111 113 118 131 94 94 104 121 103 $32.00 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 ' 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 109 109 109 109 109 97 97 97 100 106 109 97 103 $1.7820 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 $0.0418 100 103 104 104 105 104 104 104 111 112 105 103 97 103 104 109 102 105 98 97 95 91 93 93 93 93 92 84 88 ?1 97 93 92 88 92 89 92 97 101 102 142 135 111 110 110 123 128 93 115 119 121 112 $4. 8725 100 101 101 101 103 106 106 106 108 111 108 103 97 101 105 108 103 104 96 % 96 94 93 93 93 93 93 89 88 91 96 93 93 89 93 88 88 92 96 102 131 136 124 116 111 116 123 89 110 125 116 110 1913 Months- January February. March April. May June July August September October November December Quarters- First Second Third Fourth Year 1914 Months- January February March April May June July August September. . . October November December Quarters First Second Third Fourth Year 1915 Months- January February March April May June July August. . . . September October r . Novembfir. Dppp.Tnher Quarters First Second Third Fourth .... Year GOVERNMENT CONTROL OVER PRICES. 537 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Copper. Iron and steel. Lead. Copper, electro- lytic, New York (perlb.). Copper wire, base prices, New York (perlb.). Pig iron, Mahon- ing or She- nango Valley furnace ( fo r nf Chains, traces, wagon, western standard, straight, with ring, 64-8-2, New York (per 100 pr.)- Saws, crosscut, Diston No. 2, 6-foot champion tooth, Phila. (per saw). Lead, pig, New York (perlb.). Lead Pipe, New York (per cwt.) Prewar base price $0. 1492 100 162 184 184 196 200 184 172 183 189 192 216 227 176 193 182 212 191 203 236 240 216 217 218 194 182 i 171 158 158 158 226 217 182 158 1% 158 158 158 158 158 158 174 174 174 174 174 170 158 158 174 173 165 $0. 1618 100 145 168 181 176 195 201 201 188 190 196 196 221 165 190 193 204 188 227 227 227 227 215 202 208 196 184 184 178 171 227 215 196 178 204 167 167 167 164 164 162 175 181 181 178 178 178 167 163 179 178 172 $13.3183 100 134 133 137 136 135 135 135 135 137 149 188 225 134 135 136 188 148 225 225 242 291 312 366 394 384 1321 248 248 248 230 322 368 248 292 248 248 248 240 240 240 240 240 240 248 248 248 248 240 240 248 244 $32.00 100 100 106 119 119 134 134 134 188 188 188 188 188 108 129 170 188 149 188 188 188 188 188 188 188 188 238 238 238 238 188 188 204 238 204 238 238 238 238 238 238 238 238 238 238 238 238 238 238 238 238 238 $1.7820 100 100 100 106 106 106 106 116 116 116 116 128 128 102 109 116 124 113 128 141 141 141 155 155 155 172 172 172 172 172 137 150 166 172 156 172 172 172 172 172 202 202 202 202 202 202 202 172 182 202 202 189 $0.0418 100 142 150 171 183 178 166 152 149 163 167 168 180 154 176 155 172 164 183 207 220 222 244 267 256 253 208 161 U50 153 203 244 239 154 210 162 167 172 162 163 182 192 193 193 193 193 157 167 169 192 181 177 $4.8725 100 133 143 162 181 174 163 156 146 151 156 158 166 146 173 151 160 157 176 191 206 211 230 257 257 246 226 181 156 156 191 232 243 164 208 161 171 176 176 176 183 191 191 191 191 191 191 169 178 191 191 182 Made equal to 1916 Months- January February. March April . May June July August September October. . November December Quarters First Second Third Fourth Year ... 1917 Months- January February March April May June July August September October. . November December Quarters First Second Third Fourth Year 1918 Months- January . . February. March April . . May Jim? .. July. August September October. . November. December Quarters- First. Second . . . Third .fourth . . Year Government control of price began during month. 538 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Wool. Rubber. Hides and skins. Petroleum. Wool, dom.. Ohio, Pa., W. Va., un- washed, fine delaine, Boston, i { K Woolen yarn, weav- ing, 12-16 cut, i blood grade Boston, (per lb.). Woolen cloths, suit- ings Middle- sex, 15 oz. 55-56 n.,New York, (per yd.)- Rubber crude, Hevea, first latex crepe, New York, (per lb.). Rubber tires, pneu- matic, plain tread, 30 by 3i in., Akron, Ohio, (per tire). Cattle hides, packer, heavy native steers, Chi- cago, ft Men's shoes vici calf, blu- cher, (per pair). Petro- leum, crude, Mid- conti- nent (Kans., Okla.) at wells, b ( E Fuel oil, Tulsa, Okla., (per bbl.). Kero- sene, refined for export, New York, (per gal.). Prewar base price.. Made equal to... 191 3-Month s January February. .. March . $0.2317 100 122 119 110 110 97 97 97 97 97 97 97 96 117 101 97 97 103 96 100 100 101 106 114 119 119 114 106 110 110 99 107 117 109 108 114 132 140 127 127 123 127 132 132 182 132 136 129 126 130 133 129 $0. 5725 100 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 107 90 90 90 90 90 90 90 90 90 104 90 90 90 93 90 90 94 94 94 94 94 111 111 111 111 111 91 94 106 111 100 $1.4813 100 106 106 106 106 lOf. 106 106 106 100 100 100 100 106 106 104 100 104 100 97 97 97 97 97 97 97 100 100 100 100 98 97 98 100 98 . 100 100 106 106 106 106 106 106 106 106 106 109 102 106 106 107 106 $0.6123 100 175 164 149 135 132 121 114 112 96 87 93 91 163 129 107 90 122 97 102 102 112 101 93 91 139 96 95 109 130 101 102 109 111 106 119 100 105 99 98 102 105 100 97 101 122 143 108 99 101 122 108 $13. 0900 100 115 115 115 104 104 104 104 104 104 104 104 97 115 104 104 102 106 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 97 70 70 70 70 70 70 70 70 70 70 70 79 70 70 70 72 $0. 1861 100 103 97 97 93 89 94 95 100 101 106 106 105 99 92 99 106 99 97 98 97 97 98 99 104 110 113 114 117 121 97 98 109 117 105 124 126 124 101 111 125 138 147 142 142 141 138 125 112 143 141 130 $3. 1375 100 99 99 99 99 99 99 99 99 99 100 100 100 99 99 99 100 99 100 100 100 100 100 100 100 100 102 102 104 104 100 100 101 103 101 104 104 104 104 104 104 104 104 104 104 104 105 104 104 104 104 104 $0.9725 100 85 90 90 90 90 90 94 102 105 105 105 105 89 90 101 105 97 105 107 107 102 76 76 76 76 66 56 56 56 107 86 74 56 81 56 56 41 41 41 41 41 51 76 82 82 102 51 41 57 89 60 $0. 7979 100 135 135 135 135 110 110 110 94 94 100 100 100 135 118 99 100 113 100 100 100 100 100 100 72 72 72 60 60 GO 100 100 72 60 83 56 56 44 47 47 47 47 66 66 78 97 119 52 47 60 98 64 $0.0871 100 98 98 98 98 98 100 100 100 100 100 100 100 98 98 100 100 99 100 100 100 100 100 98 98 95 95 95 92 92 100 100 96 93 97 92 89 89 87 87 87 86 86 86 86 89 94 90 87 86 90 88 April... May .... June July August September.. October November. . December. . . Quarters- First Second Third Fourth Year 1914 Months January February . . . March... April May June July August. . . . September.. October November. . December. . . Quarters- First Second. Third Fourth Year 1915 Months- January February . . . March... April May. June July August Setember.... October November. . December. . . Quarters- First Second Third Fourth Year GOVERNMENT CONTROL OVER PRICES. 539 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Wool. Rubber. Hides and skins. Petroleum. Wool, dom., Ohio, Pa., W. Va., un- washed, fine delaine, Boston, ft Woolen yarn, weav- ing, 12-16 cut, i blood grade Boston, ft Woolen cloths, suit- ings Middle- sex, 15 oz. 55-56 n.,New York, (per yd.). Rubber crude, Ilevea, first latex crepe, New York, (per lb.). Rubber tires, pneu- matic, plain tread, oOby3 in., Akron, Ohio, (per tire). Cattle hides, packer, neavy native steers, Chi- cago, (per lb.). Men's shoes vici calf, bluch- er, (per pair). Petro- leum, crude, Mid- conti- nent (Kans., Okla.) at wells, (per bbl.). Fuel oil, Tulsa, Okla., $. Kero- sene, refined for export, New York, (per gal.). Prewar base price... Made equal to... 1916 Months- January February . . . March $0.2317 100 140 140 145 145 145 145 149 151 155 158 170 186 142 145 152 171 152 196 211 220 231 240 304 317 322 326 324 324 324 209 258 322 324 278 324 324 324 324 !324 319 324 324 319 319 319 293 324 322 322 311 320 JO. 5725 100 111 111 116 116 116 116 116 116 121 121 121 129 113 116 118 123 118 135 155 172 177 181 181 190 199 199 199 225 234 154 180 196 219 187 234 242 284 301 301 301 301 301 301 301 301 301 253 301 301 301 289 $1.4813 100 109 122 129 129 129 129 132 137 141 141 147 153 120 129 137 147 133 158 173 173 182 197 213 228 243 243 243 252 252 168 197 238 249 213 255 258 258 258 276 283 283 283 283 283 283 283 257 272 283 283 274 $0.6123 100 146 140 147 136 117 105 95 95 98 102 112 129 145 119 96 114 119 127 140 139 134 135 118 111 106 109 104 98 91 135 129 109 98 118 100 86 91 98 1103 103 103 103 103 103 100 100 92 101 103 101 99 $13.0900 100 77 77 77 77 77 77 77 77 77 77 77 77 I 77 77 77 77 77 85 85 85 96 96 96 96 96 105 105 105 105 85 96 99 105 96 105 105 105 116 116 116 116 116 116 116 116 116 105 116 116 116 113 0.1861 100 124 128 122 120 113 144 145 141 140 143 169 180 125 132 142 164 141 180 171 164 164 169 177 177 172 177 181 189 188 172 170 176 186 176 176 157 141 146 *167 177 174 161 161 161 156 156 160 164 166 158 161 3. 1375 100 107 108 110 112 115 120 120 120 120 127 127 135 108 115 120 130 118 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 159 159 159 174 180 191 205 207 207 207 154 164 192 207 179 0.9725 100 125 133 151 158 158 158 155 106 92 92 93 117 137 158 119 101 129 143 173 173 173 173 173 173 173 204 204 204 204 165 173 184 204 182 204 204 204 229 229 229 229 ^229 229 229 229 229 204 229 229 229 224 0. 7979 100 128 135 144 113 88 88 81 81 81 88 141 141 136 96 81 123 109 188 188 188 188 188 172 172 172 172 226 219 219 188 183 172 221 191 219 219 219 251 251 251 251 235 235 235 235 235 219 251 240 235 236 $0. 0871 100 99 102 102 103 103 103 103 104 102 96 96 96 101 103 103 96 101 99 105 112 118 118 118 118 119 119 119 128 139 105 118 118 129 118 144 144 146 152 153 173 174 175 178 178 194 194 144 160 175 189 167 April . Mav June July August September.. October November.. December. . . Quarters- First Second Third Fourth Year 1917 Months- January February . . . March April Mky June July August September.. October November. . December. . . Quarters- First Second Third Fourth Year 1918 Months- January February . . . March . . April May... June July August September. October.... November . . December. . Quarters- First Second Third Fourth Year 1 Government control of price began during month. 540 HISTORY OF PRICES DURING THE WAR. 6. A COMPARISON OF THE PRICES OF CONTROLLED MANUFACTURED GOODS WITH THE PRICES OF THEIR UNCONTROLLED RAW-MATERIALS. It was exceptional for the Government to initiate control within any family of commodities by a regulation of the finished-product prices only. Since raw-material prices, in the main, fluctuate more violently, the common practice was to begin control by regulating the raw material. The outstanding departure from this procedure during the war was the extension of price control over cotton goods, while at no time was any control exercised over raw cotton. There are given here relative prices for cotton, upland middling, comparable with others for cotton yarn, carded, white, Northern, mule spun, 22/1 cones. The actual prewar price (July 1, 1913, to June 30, 1914) for each was made equal to 100, and the monthly actual prices from January, 1913, through December, 1918, turned into relatives upon that base. COTTON YARN, CARDED, WHITE, NORTHERN MULE SPUN, 22/1 CONES. [Controlled.] [Prewar price of $0.2438 made equal to 100.] 1913 1914 1915 1916 1917 1918 January .. . 98 98 78 105 160 238 100 98 78 105 152 249 March 98 98 70 104 148 257 April 100 98 78 110 168 281 Mav 100 94 76 112 174 289 June 98 90 76 115 180 292 July 98 94 76 116 205 i 288 August 98 90 79 118 205 287 September 103 82 82 125 238 285 October 109 82 90 135 197 285 November 107 72 94 149 205 273 December 107 74 98 170 217 242 First quarter 99 98 75 104 153 248 Second quarter . 100 94 77 112 174 287 Third quarter 100 89 79 120 216 287 Fourth quarter . . 107 76 94 151 206 267 Year ... 102 89 81 122 187 272 Government control began. GOVERNMENT CONTROL OVER PRICES. 541 COTTON, UPLAND MIDDLING. [Uncontrolled.] [Prewar price of $0.1312 made equal to 100.] 1913 1914 1915 1916 1917 1918 January' 100 97 63 95 134 247 February . 98 98 65 89 124 243 March 96 101 69 91 142 258 April 94 ]00 78 92 155 242 May 91 103 75 98 158 210 June 93 103 74 99 194 232 July 94 100 70 99 199 238 August 92 91 71 111 197 263 September 103 64 84 121 173 273 October 107 53 95 138 214 248 November 104 58 91 153 228 225 December 99 58 94 139 233 232 First quarter 98 98 66 92 134 249 Second quarter 93 102 76 96 168 229 Third quarter 96 96 75 110 190 256 103 58 93 143 224 236 Year... 97 92 77 110 179 242 The basis for a wider generalization, perhaps, may be had from the weighted index numbers representing 57 series of controlled cot- ton goods and 24 series of uncontrolled cotton in the raw-materials stage, which also follow as made up earlier in this chapter. WEIGHTED INDEX NUMBERS OF CONTROLLED COTTON MANUFACTURES AND UNCONTROLLED COTTON RAW MATERIALS. [Prewar average aggregates made equal to 100.] Month. 1913 1914 1915 1916 1917 1918 CONTROLLED. January 103 100 83 106 158 225 February . . . 103 100 84 109 157 233 March 103 99 85 110 161 246 April.. 102 99 87 112 169 268 May 101 99 89 114 172 270 June . . 100 99 89 116 184 275 July 99 99 91 119 193 i 279 August 100 97 92 124 194 283 September . . 100 94 94 128 200 269 October 102 89 99 140 206 270 November 102 85 102 153 206 270 December. 102 84 104 160 211 267 First quarter.. 103 100 84 108 159 235 Second quarter 101 99 89 114 175 271 Third quarter 100 97 93 124 196 277 Fourth quarter 102 86 102 151 208 269 Year 101 95 92 124 184- 263 UNCONTROLLED. January 100 96 54 94 141 238 February . . , 98 98 61 95 138 244 March . . 97 103 61 91 131 248 April 97 98 67 95 148 261 May.... 95 100 75 95 156 234 June . 95 102 71 100 167 225 July 95 102 71 103 203 235 August 95 102 67 104 200 229 September 97 72 70 120 192 264 October 110 64 92 128 192 261 November .... 107 52 95 148 224 240 December. 100 56 93 161 228 227 First quarter.. 98 99 59 93 136 243 Second quarter 96 100 71 97 157 240 Third quarter 96 92 69 109 198 243 Fourth quarter 105 57 93 145 215 243 Year . 99 87 73 111 176 242 Government control began. 542 HISTORY OF PRICES DURING THE WAR. 7. A COMPARISON OF CONTROLLED RAW-MATERIAL PRICES WITH THE PRICES OF THEIR CONTROLLED MANUFACTURED PRODUCTS. A study of the relative movements of important basic commodities which were regulated both in the raw-material and finished-product stages, shows the results of the more rigid controls. The important basic commodities so controlled were wheat, iron and steel, hides and skins, corn, sugar, cattle, and coal. There have been made ready for comparison the following combinations of raw materials and finished products of which all series were controlled: (1) No. 2 red winter wheat; standard patents wheat flour; and loaf bread; (2) iron ore, Mesabi, non-Bessemer, 51 J per cent; pig iron, basic, Mahoning or Shenango Valley Furnace; steel bars, steel sheets, Bessemer; and pipe, cast iron 6 inches; (3) cattle hides, heavy native steers; and, cattle hide leather, sole leather, hemlock packer slaughter, No. 1; (4) corn, yellow cash, No. 3; and corn meal, white, in bulk; (5) raw cane sugar, 96 centrifugal, duty paid; refined cane sugar, fine granu- lated; beet sugar granulated; (6) steers, choice to prune, heavy beeves; and steer rounds, No. 1; (7) bituminous coal, Pittsburgh No. 8 Ohio ; and Connellsville coke. The relative prices of wheat and flour held close together save during 1918. Bread prices did not rise relatively as high either as wheat or flour prices, but behaved more like flour prices than wheat prices. Government control did not bring the pronounced drop hi iron ore prices that it brought in pig iron prices, since iron ore prices were fixed near their market level and pig iron prices much below. The behavior of controlled raw and refined sugar prices was nearly identical. GOVERNMENT CONTROL OVER PRICES. 543 544 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OT COAL 5 COKE. BTMONTM5 JANUARY, isra -DCCTMBCR 1910 AVCRAGC QJOTCD POICCS JULY1913 TJUNC19I4-IO Relative prices. Iron: Ore, Pig, and Pipe. By months, January, 1913, to December, 1918. (Aver- age quoted prices, July, 1913, to June, 1914=100.) Relative prices. Coal and Coke. By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) GOVERNMENT CONTROL OVER PRICES. 545 125547 20 35 546 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Wheat, flour, and bread. Iron ore, pig iron, steel bars, sheet steel, and pipe. Cattle, hides, and sole leather. Iron Wheat, No. 2, red, winter, Chicago (per bu.). Wheat flour, stand- ard pat- ents, Minne- apolis (per bbl.). Bread, loaf, New York (per 16-oz.). ore, Mesabi, non- Bes- semer 51i per cent, lower lake ports (per Pig iron, basic, Ma- honing or She- nango Valley furnace (per gr. ton). Sheet bars, Bes- semer Pitts- burgh (per gr. ton). Steel, blue, an- nealed sheets, 10- gauge, Pitts- burgh (per cwt.). Pipe, cast- iron, 6-inch, New York (per sh.ton). Cattle hides, packer, heavy, native steers, Chicago (per 16.). Sole leather, hem- lock, packer, slaugh- ter, No. 1, Chicago K gr.ton). Prewar base price $0.9321 $4.5699 $0.0412 $3. 3083 $13.3183 $22.6750 $1.4983 $22.2258 $0. 1861 $0.3192 Made equal to 100 100 100 100 100 100 100 100 100 100 1913 Months- January.. 120 98 103 103 123 128 113 112 103 94 February 116 99 103 103 122 132 117 111 97 94 March 111 96 103 103 121 132 . H7 107 97 94 April May 114 113 101 102 103 103 103 103 119 114 125 121 117 117 106 103 93 89 94 94 June 109 106 103 103 109 119 117 103 94 91 July 95 104 103 103 108 121 117 103 95 91 August... 93 103 103 103 106 116 113 103 100 94 Septem- ber 99 100 103 103 105 110 109 103 101 94 October.. 99 98 103 103 104 101 105 103 106 100 Novem- ber 101 98 103 103 98 95 101 103 106 100 Decem- ber 103 98 103 103 95 93 100 100 105 103 Quarters- First 116 98 103 103 122 131 116 110 99 94 Second. . . 112 103 103 103 114 122 117 104 92 93 Third.... 96 102 103 103 106 116 113 103 99 93 Fourth... 101 98 103 103 99 96 102 102 106 101 Year... 106 100 103 103 110 116 112 105 99 95 1914 Months- January.. 104 98 105 103 94 91 93 99 97 103 February 103 100 104 103 99 97 93 99 98 103 March.... 102 101 104 103 98 97 93 99 97 103 April... 101 100 104 103 98 96 93 99 97 103 May 105 101 104 86 98 93 91 94 98 102 June . . . 96 98 109 86 98 90 90 92 99 102 July 88 101 107 86 98 88 90 92 104 100 August... 103 121 107 86 98 93 91 92 110 100 Septem- ber 119 130 107 86 98 96 93 92 113 101 October.. 119 126 109 86 96 91 95 90 114 101 Novem- ber 123 129 109 86 94 87 93 90 117 102 Decem- ber 129 130 109 86 94 86 89 90 121 102 Quarters- First 103 100 104 103 97 95 93 99 97 103 Second. . . 100 100 105 92 98 93 92 95 98 102 Third.... 103 117 107 86 98 92 91 92 109 100 Fourth... 124 128 109 86 95 88 93 90 117 102 Year. 108 112 106 92 97 92 92 94 105 102 1315 Months- January.. 149 150 115 86 94 87 87 90 124 105 February 173 169 102 86 94 87 87 90 126 105 March.... 164 164 141 86 94 87 87 90 124 105 April 171 169 113 86 94 88 89 97 101 102 May 168 172 115 86 94 88 90 99 111 100 June 132 144 117 86 95 90 89 100 125 100 July 125 154 119 85 96 97 88 101 138 103 August... 118 138 119 85 106 106 91 105 147 108 Septem- ber 115 117 109 85 111 112 101 110 142 110 October.. 121 121 109 85 113 115 107 114 142 114 Novem- ber 121 120 109 85 118 117 127 119 141 114 Decem- ber 132 136 115 85 131 135 151 124 138 114 Quarters- First 162 161 119 86 94 87 87 90 125 105 Second. . . 157 162 115 86 94 89 89 99 112 101 Third.... 119 136 115 85 104 105 93 105 143 107 Fourth... 125 126 111 85 121 122 128 119 141 114 Year.... 141 146 115 85 103 101 99 103 130 107 GOVERNMENT CONTROL OVER PRICES. 547 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Wheat, flour, and bread. Iron ore, pig iron, steel bars, sheet steel, and pipe. Cattle, hides, and sole leather. Iron Wheat No. 2, red, winter, Chicago (per bu.). Wheat flour, stand- ard pat- ents, Minne- apolis (per bbl 1 Bread, loaf, New York (per 16-oz.). ore, Mesabi, non- Bes- semer 51J per cent, lower lake ports Pig iron, basic, Ma- honing or She- nango Valley furnace (per Sheet bars, Bes- semer Pitts- burgh (per gr. ton). Steel, blue, an- nealed sheets, 10- gauge, Pitts- burgh (per Pipe, cast- iron, 6-inch, New York (per sh.ton). Cat.tle hides, packer, "heavy, native steers, Chicago Sole leather, hem- lock, packer, slaugh- ter, No. 1, Chicago (per DA. ) gr. ton). gr. ton). cwt.). 16.). Prewar base price $0.9321 $4.5699 $0.0412 $3. 3083 $13.3183 $22.6750 $1.4983 $22. 2258 $0. 1861 $0.3192 Made equal to 100 100 100 100 100 100 100 100 100 100 1916 Months- January. . 133 145 109 107 134 143 170 130 124 111 February 135 141 109 107 133 150 177 132 128 114 March.... 122 129 109 107 137 181 190 134 122 114 April Mav - 130 124 136 135 109 109 107 107 136 135 198 190 197 200 137 137 120 133 117 122 June 112 126 111 107 135 185 200 137 144 122 July 124 133 111 107 135 187 194 137 145 122 August... 158 166 109 107 135 203 194 137 141 122 Septem- ber 165 184 111 107 137 198 194 139 140 122 October. . 180 203 129 107 149 212 210 142 143 127 Novem- ber 194 215 132 107 188 238 225 160 169 174 Decem- ber 185 190 141 153 225 259 244 184 180 188 Quarters- First 132 138 109 107 134 158 179 132 125 113 Second... 122 133 109 107 135 191 199 137 132 121 Third.... 149 161 110 107 136 196 194 138 142 122 Fourth... 187 203 134 122 188 236 226 162 164 163 Year 147 159 115 111 148 195 200 142 141 130 1917 Months- January. . 204 202 139 153 225 280 284 187 180 190 February 193 198 141 153 225 287 300 187 171 189 March.... 212 211 152 153 242 300 314 196 164 188 April.... 265 254 155 153 291 331 360 233 164 188 May 319 326 179 153 312 414 447 250 169 187 June 283 304 183 153 366 463 534 273 177 185 July 250 279 183 153 394 463 551 295 177 185 August... 1242 286 183 153 384 414 534 295 172 172 Septem- ber 234 1246 183 1153 1321 1353 534 295 177 166 October.. 233 232 183 153 248 260 501 270 181 157 Novem- ber 233 224 183 153 248 225 1296 254 189 160 Decem- ber 233 222 U55 153 248 225 284 1254 188 160 Quarters- First 205 203 144 153 230 289 299 189 172 189 Second... 291 297 172 153 322 403 447 252 170 187 Third.... 243 271 183 153 368 410 539 295 176 174 Fourth... 233 226 173 153 248 237 360 260 186 159 Year... 244 249 168 153 292 335 410 249 176 177 1918 Months- January. 233 221 155 153 248 225 284 249 176 156 February 233 225 155 153 248 225 284 249 157 152 March. . . 233 221 155 153 248 225 284 249 141 149 April.... 233 219 189 153 ! 240 225 284 249 146 149 May.... 233 208 189 153 240 225 284 256 M67 157 June 233 215 189 153 240 225 284 276 177 165 July.... 241 234 189 153 240 225 284 278 174 169 August.. 240 223 189 166 i 240 225 284 278 161 M69 Septem- ber 240 223 185 166 240 225 284 278 161 171 October.. 240 223 185 174 248 225 284 305 161 172 Novem- ber 240 223 185 174 248 225 284 305 156 174 Decem- ber 248 223 185 174 248 225 270 305 156 175 Quarters- First 233 222 155 153 248 225 284 249 160 149 Second. . . 233 214 189 153 240 225 284 260 164 157 Third 240 228 187 162 240 225 284 278 166 170 Fourth... 242 223 185 174 248 225 279 305 158 174 Year 237 222 179 160 244 225 283 273 161 163 i Government control of price began during month. 548 HISTORY OF PRICES DURING THE WAR. RELATIVE TRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Corn and corn- meal. Raw sugar, refined cane sugar, beet sugar, granulated. Steers and steer rounds. Bituminous coal and coke. Corn, cash, No. 3 yellow, Chi- cago (per bu.). Corn- meal, white, in bulk, Terre Haute (per cwt.). Sugar, raw. 96 centri- fugal, New York (per l). Sugar, refined, granu- lated, New York & Sugar, stand- ard, beet, granu- lated, Chi- cago (per l). Steers, choice to prime, heavy beeves, Chi- cago (per cwt.). Steer rounds, No. 1, Chi- cago , ( K Coal, bitu- minous, Pitts- burgh, No. 8, Ohio, Colum- bus, and De- troit (persh. ton). Coke, Con- nells- ville furnace, l.o. b. ovens (per sh. ton). Prewar base price . $0.6859 100 70 71 74 81 83 89 90 108 110 102 106 100 72 84 104 102 90 91 90 95 99 102 104 104 118 115 107 100 94 92 102 114 101 102 104 108 105 110 111 109 114 119 112 93 93 97 106 110 114 94 107 $1.6962 100 74 75 83 94 94 97 100 107 111 102 97 98 78 95 106 99 94 95 97 96 96 97 106 105' 118 115 104 99 97 96 100 113 101 102 95 100 98 100 101 96 103 100 93 84 82 90 98 99 99 86 95 $0.0340 100 104 102 104 100 98 98 104 109 109 102 106 99 104 99 108 103 103 99 101 88 87 94 99 97 154 170 131 115 117 96 94 141 122 113 119 139 143 139 142 144 143 140 126 122 143 146 133 142 137 136 137 $0.0413 100 109 101 101 99 99 100 108 112 110 101 102 99 104 100 110 101 104 95 95 92 90 96 101 102 157 165 144 119 117 94 96 141 127 114 118 134 138 140 142 142 141 133 123 120 138 143 130 142 132 134 135 $0. 0426 100 109 101 101 99 99 100 108 110 109 100 101 98 103 99 109 100 103 96 96 93 91 96 101 102 156 162 143 118 117 95 96 140 125 114 118 133 138 139 140 141 140 131 122 118 129 127 130 140 131 127 132 $9. 1022 100 99 98 98 98 95 96 99 98 100 100 98 98 98 96 99 99 98 101 101 102 102 100 101 106 110 116 115 112 107 101 101 111 111 106 101 94 95 92 95 102 100 108 107 106 109 106 97 96 108 107 102 $0. 1295 100 97 97 95 99 103 104 108 108 104 104 99 97 96 102 107 100 101 93 90 96 93 101 108 114 117 115 107 100 98 93 101 116 102 97 90 89 89 86 96 102 104 106 105 97 98 93 89 95 105 96 % $1.0900 100 113 98 93 97 96 94 92 99 100 106 115 100 101 96 97 107 100 98 99 99 99 97 97 95 91 91 96 102 102 99 98 92 100 97 103 105 95 94 88 90 89 94 95 98 97 100 101 91 92 99 96 $2.0625 100 178 149 124 113 104 107 115 121 119 105 93 91 150 108 118 97 118 93 93 91 93 93 91 91 87 84 81 75 79 93 93 87 78 88 79 76 76 79 79 79 85 81 81 97 115 112 77 79 82 108 87 Made equal to 1913 Months February March April Mav June July August September October November December Quarters- First Second Third Fourth . . . Year 1914 Months- January February. . March April May June ... July August September . October November . . December Quarters- First Second Third Fourth Year 1915 Months January February March April May... June July August September October November.. . DfiOfvmhfir Quarters- First Second Third Fourth . . . Year GOVERNMENT CONTROL OVER PRICES. 549 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Corn and corn- meal. Raw sugar, refined cane sugar, beet sugar, granulated. Steers and steer rounds. Bituminous coal and coke. Corn, cash, No. 3, yellow, Chi- cago (per bu.). Corn- meal, white, in bulk, Terre Haute (per cwt.)- Sugar, raw, 96 centri- fugal, New York (per IS.). Sugar, refined, granu- lated, New York & Sugar, stand- ard, beet, granu- lated, Chi- cagfr ,**< lO-^t* ^ O O O> *O CO Oi *O ?JS """Si 2* 25 S2 :< OOOO i-HOi T 4O I s * 1 1MO CO 1 2 ss II 2 3i Ss gs i i s^ 2 1 1 si 11 II SS li )fo ^H CO OOCO t^-O ^-tO *O - fcO *rt< * I CO C^ OO CO -^ CQ OO ^J< O OO CO C^ O5 OS O O l^- o> oo 01 oj ;5 <^o t-- 1-- cfi * i-- 25 o -^ r- co 8 ^ O CO >O T-H ( S 5 S! I>.^H lOOi O5 C r-< O ^ O> OS 00 - O O ^H t- 5 r-H OO ooo ooo r ^o ^o lOiO lOift O>O OO'** "CO COCO *"* O5O O'O IOIM OO Oi iO>O 1-1 28 ^^ 2 S SB S 3 SS 23 1 sS -^00 SJl^ oooo oooo oooo O t^O -^ O 0>O I> ** ^OO Ot^ IN. co t> ^O >O O OO OO oooo t^S SS ooS SS ^* "^ t" !> 01 OO "^t 1 o> .-.05 c^oo 010 88 88 88 88 88 88 88 88 88 88 88 88 GOVERNMENT CONTROL OVER PRICES. 553 9. A COMPARISON OF WAR PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA. The world price revolution which followed close upon the heels of the war in Europe, and the widespread control over prices which the Governments exercised, make the price student eager to measure the relative successes of our Government and foreign Governments in stabilizing prices. There are many reasons why caution must be exercised while measuring the effects of regulation upon domestic and European prices. The paramount difficulty, which can never be entirely overcome or discounted, is that Europe went to war and began her control nearly three years ahead of the United States. The United States, which did not set maximum prices until the price level had reached a high point, had by far the easier control problem. There are, despite these difficulties, certain devices which help to measure the relative rises of prices here and abroad during their various control periods. It is not permissible statistically to judge the relative degrees of stabilization that were brought to various price levels, except by a comparison of identical prices. The difficulty of finding foreign quotations, not to mention that of weighting the few available, makes expedient the rejection of the Price Section index number for this country and the making anew of one to match each foreign index number constructed. There were compiled, as the basis for making American index numbers, 150 commodity prices for England; 44 for France; 36 for Italy; and 270 for Canada. These actual prices, after reducing them to their smallest monetary unit but without assigning weights, were turned into relative prices by letting the average pre- war (July 1, 1913, to June 30, 1914) actual price of each series equal 100. They were then matched by a like number of corresponding price series for the United States which also were turned into relatives. The resulting set of index numbers for each country, made from the medians of relative prices, is strictly comparable with the corre- sponding set of index numbers made from corresponding prices in the United States. The comparison of prices in England and the United States, made more in detail by the separation of food, iron and steel, clothing, and chemical prices from the two index numbers, is much the most significant of these studies: 554 HISTORY OF PRICES DURING THE WAR. LISTING IN DETAIL OF EACH SERIES OF FOREIGN PRICES FROM WHICH VARIOUS FOREIGN INDEX NUMBERS WERE MADE, AND FOR WHICH IDENTICAL SERIES OF DOMESTIC PRICES WERE CHOSEN TO MAKE STRICTLY COMPARABLE INDEX NUMBERS FOR THE UNITED STATES. UNITED KINGDOM. [150 commodities.] Acetone. Acid, muriatic Tw. Acid, acetic, 60 per cent. Acid, carbolic, crystals, 34/35. Acid, nitric, 80. Acid, oxalic. Acid, sulphuric, 168. Acid, tartaric, powder. Alumina, sulphate of, pure. Ammonia, anhydrous. Ammonia, sulphate of. Aniline oil, pure. Arsenic, white, powdered. Bacon, Canadian, green sides. Barley, British Gazette price. Barium, sulphate of, native levigated. Beans, English. Beef, British. Benzol, 50/90 per cent. Bleaching powder. Brass sheets. Burlap, bags, Chilean oats and barley. Butter, British, first quality. Cabbages. Calcium, chloride of. Casein. Cattle, store, shorthorns, yearling. Cement, Portland. Cheese, Canadian. Coal, anthracite, best malting. Coal, Lancashire, best house. Coal, steam, best Lancashire. Coal, steam, smalls, best Cardiff. Cocoa, Grenada, good to fine. Coffee, Costa Rica, good to fine. Coke, furnace, best, South Wales. Copper, English selected. Copper, standard. Copper sheets, sheathing and rods. Copper, sulphate of. Copper wire. Copperas, green, in bulk. Cotton, American, middling. Cotton, cloth, 32-inch printed, 116 yards, 16 by 16, 32/50. Cotton cloth, 32-inch shirtings, 76 yards, 19 by 19, 32's/40's. Cotton yarn, 60's twist, Egyptian. Cotton yarn, 40 's weft. Creosote, ordinary good liquid. Ducks, London, live. Eggs, British, first quality. Flour, wheat, Town Household. Fowls, live. Fustic, Jamaica. Gambier. Glue, best bone (bone liquid glue). Glycerin, industrial, S. C., 1,260. Hams, American, green, long cut. Hay, best. Hemp, manila. Hides, cattle, 50/59. Hides, cattle, 60/69. Hides, cattle, 70/79. Hides, cattle, dry and dry salted, Central American. Hides, cattle, salted, Australian. Hogs, porkers. Indigo, Bengal, good red violet. Iron, bars, unmarked, South Stafford- shire. Iron bars, Welsh ports. Iron hoops, ordinary bedstead. Iron, pig, Middlesborough, good marked bars. Lamb, Argentine. Lard, American, boxes. Lead, acetate of, white. Lead, carbonate of (white lead), pure. Lead, nitrate of. Lead, red. Lead, soft, foreign. Lime. Lime, acetate of, gray, 80 per cent. Logwood, Campeche. Lumber, Dantzig and Memel. Magnesium, sulphate of. Mutton, Argentine, frozen. Mutton, English. Oatmeal, Aberdeen. Oats, British Gazette price. Oil, coconut, crude. Oil, cottonseed. Oil, linseed. GOVERNMENT CONTROL OVER PRICES. 555 Onions, Valencia. Petroleum, American. Pork, British. Potassium, bichromate of. Potassium, chlorate of. Potassium, muriate of. Potassium, nitrate of. Potassium, permanganate of. Potassium, sulphate of, 90 per cent. Potatoes, English. Rice, Bassein. Rubber, Para, fine hard. Sheep, fat stock, Welsh. Shellac, T. N. orange, fair. Silk, Cossimbuzzar, raw. Silk, Italian. Silk, Japan. Silver, metal. Skins, calf, 12/16. Skins, calf, light. Skins, kip, first quality. Soda, ash, carbonated, 58 per cent (am- monia alkali) . Sodium, bicarbonate of, crystals. Sodium, borate of (borax), crystals. Sodium, hydrate of (75 per cent 0. soda). Sodium, nitrate of, 95 per cent. Sodium, silicate of (liquid 100 Tw.). Sodium, sulphate of (salt cake). Sodium, sulphide of, cone. Steel, rails, heavy. Steel, sheets, doubles. Steel, sheets, galvanized, flat, annealed, 18 g., South Wales. Steel, strip, mild Siemens, for nails, hinges, etc. Sugar, cane (West Indian sirups). Sulphur, brimstone, best thirds. Tallow, imported. Tea, Congow. Tin, English ingots. Tin plates, Bessemer steel coke or Sie-' mens (coke finish). Tobacco, Virginia leaf (in bond). Turpentine, American. Veal, British, first quality. Wheat, British Gazette price. Wood pulp, chemical, soda unbleached. Wood pulp, chemical, sulphite, bleached, good quality. Wood pulp, mechanical, 50 per cent moist, unwrapped. Wool, Cape firsts. Wool, good Victoria. Wool, domestic, Lincoln hogs. Wool, domestic, Scotch blackface. Wool, Shropshire hogs. Wool, tops, colonial, 40 's prepared. Wool, tops, colonial, 50's. Wool, tops, colonial, 60's, super. Wool, tops, colonial, 70's. Wool, yarns, 2/48 white botany. Wool, yarns, 3/12 white scoured hosiery (40's). Wool, yarns, 2/32's, worsted crossbred. Wool, yarns, 2/40's, worsted crossbred. Zinc, pig (spelter), ordinary foreign. Zinc, sulphate of. PRANCE. [44 commodities.] Acid, hydrochloric. Acid, sulphuric. Ammonia, sulphate of. Barley. Beef, first to third quality, dressed. Butter, from all sources. Cocoa, Haiti. Coffee, Santos. Copper, ingots, for manufacturing of brass. Cotton, Louisiana ordinary. Flour, Corbell brand. Gasoline, mineral. Glycerin, lixivation. Glycerin, saponincation. Hay. Lard, American. Lead, various origins. Lime, chloride of. Mutton, first to third quality, dressed. Oats, black (or gray). Oil, colza. Oil, linseed. ; Oil, palm. Petroleum, refined. Pork, first to third quality, dressed. Potatoes. Rice, Saigon, importation. Rubber, fine, Para. Rye. Silk, raw, Cevennes, second class, 12/16. Soap, white, pure, olive oil. Soda, carbonate of. 556 HISTORY OF PRICES DURING THE WAR. Soda, caustic, salts of (for manufacturing). Soda, nitrate of. Straw. Sugar, refined, beet, first quality.. Superphosphate . Tallow, native, fresh melted. Tin, English, from Cornwall. Tin, Straits Settlements. Wheat, national. Wine, Rousillon, 10-11. Wool, Buenos Aires. Zinc, of Silesia. CANADA. [270 commodities.] A listing of the specific series which went into the making of this index number, which is of less importance for the purposes of this inquiry than those previous, may be had by reference to the index number made by the Canadian Department of Labor. The medians of relative prices of 150 identical commodities in England and the United States, show that English prices rose earlier and higher than American prices. While England had a more difficult control problem, because she started regulation before prices had adjusted themselves to the war pressure, the general rise of English prices was not stopped by regulatory measures. The level of American prices, after this country began control, shows a marked stability by comparison with the continued British rises. Food prices were held relatively much lower in the United States than in England, as were chemical prices. The prices of iron and steel, on the other hand, were stabilized on a somewhat lower level relatively in England than in the United States. The prices of clothing rose and fell relatively about the same in England and the United States though the rise and fall were both slightly earlier in this country than in England. The medians of relative prices of 44 identical commodities in France and the United States, show that French prices rose earlier and much higher than American prices. The American prices of these selected commodities, unlike those of the corresponding prices for France, turned downward early in 1918. The behavior of Cana- dian and American prices was curiously similar, though Canadian prices rose slightly higher. GOVERNMENT CONTROL OVER PRICES. 557 mm .8 8 8 ,' . 5 IS, !_ I I .8 1 I -I 11^ ill 11* 8g> 558 HISTORY OF PRICES DURING THE WAR. GOVERNMENT ^CONTROL OVER PRICES. 559 !#*'i8g ^9 ZQ^ iSftS 6ftf i- p, . >&> opq g S3^ Srt^d sll! 560 HISTORY OF PRICES DURING THE WAR. A COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA. [Medians of relative prices of identical lists of commodities figured by making the price from July 1, 1913, to June 30, 1914=100.] Date. Class and series. All commodities. (150) Food. (34) Iron and steel. (9) Clothing. (29) Chemicals. (55) Eng- land. United States. Eng- land. United States. Eng- land. United States. Eng- land. United States. Eng- land. United States. 1913 Months- January February.. . March April... 101 102 101 101 101 101 101 100 101 101 100 100 101 101 101 100 101 100 100 100 99 99 99 98 100 100 102 102 105 100 99 99 103 100 107 111 117 119 124 131 130 133 137 137 137 147 112 125 133 140 128 101 101 101 101 100 100 100 101 101 101 100 100 101 100 101 100 101 99 99 100 99 99 99 99 100 100 100 100 100 99 99 100 100 100 100 100 101 102 102 105 111 112 110 113 116 123 100 103 111 117 108 102 103 105 105 103 103 102 102 102 101 100 100 103 104 102 100 102 100 100 100 98 97 98 96 102 105 103 104 105 100 9 101 104 101 110 113 110 126 123 125 120 123 127 128 130 133 114 125 123 130 123 94 99 99 100 98 97 100 99 101 101 100 99 97 98 100 100 99 100 100 100 98 99 98 98 102 103 102 103 101 100 98 101 102 100 100 103 104 100 99 97 99 101 97 100 99 102 102 99 99 100 100 113 113 112 112 112 111 109 105 106 101 99 98 113 112 107 99 108 98 98 96 98 98 96 97 97 103 104 104 104 97 97 99 104 99 104 112 117 127 127 140 143 145 141 140 152 180 111 131 143 157 136 114 115 115 113 111 111 111 109 103 103 100 97 115 112 108 100 109 95 98 98 96 93 92 91 95 95 93 93 90 97 94 94 92 94 89 90 91 91 91 92 93 99 103 110 120 129 90 91 98 120 100 99 99 99 99 100 101 101 100 100 101 100 98 99 100 100 100 100 98 98 101 101 101 102 100 99 98 101 96 92 99 101 99 96 99 90 99 103 106 106 108 116 117 116 117 114 114 97 107 116 115 109 105 105 105 102 99 99 98 98 100 103 102 99 105 100 99 101 101 97 99 101 100 99 100 100 100 100 97 100 100 99 100 100 99 99 103 107 112 104 108 110 115 116 117 118 119 120 107 107 ' 116 119 112 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 109 119 114 117 100 100 103 117 105 121 123 126 130 137 145 150 155 158 168 187 201 123 137 154 185 150 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 102 102 100 100 100 101 100 102 103 103 111 112 113 127 131 142 147 160 167 103 112 133 153 127 May June July.... August September . . October November. . December. . . Quarters- First Second. Third Fourth.. . Year.... 1914 Months- January February March April June July August September. October November. December. . Quarters First Second Third Fourth Year 1915 Months- January February. .. March April. . . May June. . JuJy.... August September.. October November. . December. . . Quarters First Second Third ' Fourth Year GOVERNMENT CONTROL OVER PRICES. 561 A COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA Continued. [Medians of relative prices of identical lists of commodities figured by making the price from July 1, 1913, to June 30, 1914=100.] Date. Class and series. All commodities. (150) Food. (34) Iron and steel. (9) Clothing. (29) Chemicals. (55) Eng- land. United States. Eng- land. United States. Eng- land. United States Eng- United land. States. Eng- land. United States. 1916 Months- January February.. . March April 151 158 164 166 171 172 167 167 173 177 186 196 158 170 169 186 171 198 198 206 206 214 216 214 211 215 222 226 237 201 212 213 228 214 238 239 239 241 241 241 242 239 245 249 245 245 239 241 242 246 242 128 132 139 145 146 145 144 149 148 164 164 176 133 145 147 165 148 181 187 195 202 206 206 205 206 206 204 207 209 188 205 206 207 202 209 211 207 213 208 199 202 209 209 210 210 207 209 207 207 209 208 139 137 141 150 155 153 148 151 1.55 157 158 166 139 153 151 160 151 172 186 188 193 203 202 198 197 197 194 201 199 182 199 197 198 194 204 204 203 220 216 225 226 232 234 234 227 231 204 220 231 231 221 108 113 111 115 114 113 115 117 123 124 129 127 111 114 118 127 117 137 146 149 165 178 169 157 155 164 170 173 187 144 171 159 177 163 182 195 192 199 190 186 187 200 201 206 209 208 190 192 196 208 196 189 198 210 219 231 225 225 225 225 225 227 234 199 225 225 229 219 240 240 210 206 218 241 241 231 231 222 222 222 230 222 234 222 227 222 222 222 222 222 222 222 220 218 216 216 216 222 222 220 216 220 147 158 165 167 167 167 171 171 171 171 188 218 157 167 171 192 172 222 226 243 261 289 325 357 357 349 289 250 250 230 292 3.54 263 285 250 250 250 250 250 250 251 251 251 251 251 251 250 250 251 251 251 124 126 127 128 130 139 139 138 148 153 161 167 126 132 142 160 140 168 168 170 175 184 190 196 200 201 206 212 230 169 183 199 213 191 236 242 245 249 243 243 258 223 223 230 205 205 241 245 235 213 234 123 126 132 134 136 141 142 142 143 147 160 175 127 137 142 161* 142 179 185 189 187 194 210 216 212 209 218 240 246 184 197 212 235 207 247 250 251 239 212 232 225 203 203 203 190 185 249 228 210 193 220 204 207 226 230 235 255 255 261 261 255 264 255 212 240 259 258 242 255 262 286 286 293 293 289 288 289 296 302 302 268 291 289 300 287 202 314 312 312 326 326 326 307 321 336 300 283 309 321 318 306 314 183 208 208 250 250 250 233 216 200 190 193 192 200 250 216 192 214 192 192 205 235 240 235 229 239 239 247 244 237 196 237. 236 243 228 240 240 240 236 247 247 213 228 230 250 251 233 240 243 224 245 238 May June July August September . . October November. . December. . . Quarters- First Second Third Fourth Year 1917 Months- January February.. . March April... May June July August:.. September . . October November. . December. . . Quarters First Second Third Fourth Year 1918 Months- January February.. . March April May June July August September . . October November. . December. . . Quarters First Second Third Fourth Year 125547 20 36 562 HISTORY OF PRICES DURING THE WAR. A COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IX THE UNITED STATES, ENGLAND, FRANCE, AND CANADA Continued- [Medians of relative prices of identical lists of commodities figured by making the price from July 1, 1913, to June 30, 1911=100.] All commodities class. Series 41. Series 270. France. United States. Canada. 1913 Months- January 102 100 February 102 100 March 101 100 April .. 102 100 May 102 100 June 102 100 July 100 100 August 102 101 September 102 103 October... 101 103 November 100 101 December 100 99 Quarters First 102 1 00 Second.... 102 100 Third . 101 101 Fourth 100 101 Year 101 101 191-1 Months- January . 100 99 February... 100 100 March 100 100 April... 98 99 May . 100 100 June 100 99 July. 100 97 August 98 99 September 98 108 October 99 99 November . 99 97 December 104 99 Quarters First 100 100 Second... 99 99 Third 99 101 Fourth 101 98 Year 100 100 1915-Months January - - 105 100 February... 106 100 March 113 103 April... Ill 101 May 107 99 June 100 100 July , , 114 102 August - 118 102 September 127 96 October 130 98 November 141 102 December 153 116 Quarters- First 1 08 101 Second 108 100 Third 120 100 Fourth 141 105 Year 119 102 , I 101 100 100 100 100 100 99 99 99 99 100 101 100 100 99 100 100 101 101 101 101 100 100 100 104 102 101 101 101 100 101 102 101 102 105 107 108 109 110 111 112 111 112 117 119 105 109 111 116 110 GOVERNMENT CONTROL OVER PRICES. 563 A COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA Continued. [Medians of relative prices of identical lists of commodities figured by making the price from July 1, 1913, to June 30, 1914=100.] All commodities class. Series 44. Series 270. France. United States. Canada. United States. 1916 Months Janiiarv. . 160 162 165 167 170 170 161 163 172 177 183 189 162 169 165 183 170 186 187 184 208 229 238 265 256 255 227 227 245 186 225 259 233 226 238 238 247 265 261 257 255 293 297 297 266 297 241 261 282 287 268 127 128 129 132 134 123 125 132 134 138 151 150 128 130 130 146 134 150 150 165 171 179 172 179 186 174 192 195 200 155 174 180 196 176 201 212 219 223 210 194 209 187 206 178 179 188 211 209 201 182 201 127 130 131 133 135 135 133 133 135 139 148 153 129 134 134 146 136 157 162 166 170 180 182 183 182 181 180 186 189 161 177 182 185 176 191 194 198 198 203 207 209 209 210 213 214 213 194 203 209 213 205 115 118 121 123 123 122 123 125 127 132 141 144 118 123 125 139 126 148 / 151 156 170 178 183 189 187 186 182 183 182 152 177 187 182 175 185 187 188 191 190 189 193 196 201 201 201 203 187 190 197 202 194 February March * April May June July August... . September October November December Quarters- First Second. Third Fourth Year . . . 1917 Months Januarv. . February March April. . May June July August... September October November December Quarters- First Second. Third Fourth Year 1918 Months Januarv ... February March April... Mav June July August September October November.. .. December Quarters- First. Second Third... . Fourth. . Year BOOK II GOVERNMENT REGULATIONS RELATING TO PRICES 565 1. INTRODUCTION. The substance of all known formal and informal regulations relating to prices, that were issued by the Government during the war, has been put here into compact form. The regulations compiled and digested make up Book II of the study on " Government Control Over Prices." The Government issued thousands of regulations during the war relating to production, conservation, curtailment, priority, transportation, and pur- chase which affected prices indirectly but are not here recorded. This digest does not comprehend other controls than those which pertain strictly to prices. An endeavor has been made even to cut away parts of regulations, where the whole regulation was not relevant to price control. The body of separate regulations that appear are classified alphabetically, under one or another of the following main commodity groups : Foods ; fuels ; metals and metal products ; textiles and fibers ; hides, skins and leather ; lumber ; building materials ; chemicals ; rubber ; and paper. There remained two alterna- tive methods of arrangement each with its advantages a classification of regu- lations under the Government agencies exercising them, and a classification chronologically by the dates of their issue. The former alternative proved not feasible since frequently the same commodity was controlled by various boards at different times. Its advantages, moreover, can be had by reference to the main part of this investigation where the commodity controls are discussed under the boards exercising them at the signing of the armistice. The latter alternative had only a slight advantage to recommend it. It should be noted that, although the regulations are listed alphabetically, it is possible to find quickly the date of each regulation and the Government agent exercising it. The Government has not heretofore attempted any compilation of war- time regulations over prices, and it is inevitable that this one will present slight omissions. The most serious of these are the many informal agreements per- taining to prices which, commodity chiefs made with their industry, and of which no records remain. The Government regulations which are printed here include all that were found in the official sources of price regulation, and many others that were discovered by correspondence and by searching through the files left over from the war. The compilers have not felt obliged to include all differential prices, which the industry calculated and printed with Government approval. These differ- entials represent simply prices figured to make various grades of goods sell in scale with the base prices fixed by the Government. 567 2. FOODS. The Congress passed the food and fuel control act (Public, No. 41, 65th Cong.) on August 10, 1917, and thereby gave the President power to bring under license control virtually all large dealers in foodstuffs. 1 The President, by a 1 There follows in full a copy of the provisions of the food and fuel act of Aug. 10, 1917 (Public, No. 41, 65th Cong., H. R. 4961), which -elate to food control. An Act To provide further for the national security and defense by encouraging the production, conserving the supply, and controlling the distribution of food products and fuel. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That by reason of the existence of a state of war, it is essential to the national security and defense, for the successful prosecution of the war, and for the support and maintenance of the Army and Navy, to assure an adequate supply and equitable distribution, and to facilitate the movement, of foods, feeds, fuel including fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, imple- ments, machinery, and equipment required for the actual production of foods, feeds, and fuel, hereafter in this Act called necessaries ; to prevent, locally or generally, scarcity, monopolization, hoarding, injurious speculation, manipulations, and private controls, affecting such supply, distribution, and movement ; and to establish and maintain govern- mental control of such necessaries during the war. For such purposes the instrumen- talities, means, methods, powers, authorities, duties, obligations, and prohibitions herein- after set forth are created, established, conferred, and prescribed. The President is authorized to make such regulations and to issue such orders as are essential effectively to carry out the provisions of this Act. SEC. 2. That in carrying out the purposes of this Act the President is authorized to enter into any voluntary arrangements or agreements, to create and use any agency or agencies, to accept the services of any person without compensation, to cooperate with any agency or person, to utilize any department or agency of the Government, and to coordi- nate their activities so as to avoid any preventable loss or duplication of efforts or funds. SEC. 3. That no person acting either as a voluntary or paid agent or employee of the United States in any capacity, including an advisory capacity, shall solicit., induce, or attempt to induce any person or officer authorized to execute or to direct the execution of contracts on behalf of the United States to make any conrtact or give any order for the furnishing to the United States of work, labor, or services, or of materials, supplies, or other property of any kind or character, if such agent or employee has any pecuniary interest in such contract or order, or if he or any firm of which he is a member, or cor- poration, joint-stock company, or association of which he is an officer or stockholder, or in the pecuniary profits of which he is directly or indirectly interested, shall be a party thereto. Nor shall any agent or employee make, or permit any committee or other body of which he is a member to make, or participate in making, any recommendation concerning such contract or order to any council, board, or commission of the United States or any member or subordinate thereof, without making to the best of his knowledge and belief a full and complete disclosure in writing to such council, board, commission, or subordinate of any and every pecuniary interest which he may have in such contract or order and of his interest in any firm, corporation, company, or association being a party thereto. Nor shall he participate in the awarding of such contract or giving such order. Any willful violation of any of the provisions of this section shall be punishable by a fine of not more than $10,000, or by imprisonment of not more than five years, or both : Provided, That the provisions of this section shall not change, alter or repeal section forty-one of chapter three hundred and twenty-one, Thirty-fifth Statutes at Large. SEC. 4. That it is hereby made unlawful for any person willfully to destroy any necessaries for the purpose of enhancing the price or restricting the supply thereof ; knowingly to commit waste or willfully to permit preventable deterioration of any neces- saries in or in connection with their production, manufacture, or distribution ; to hoard, as defined in section six of this Act, any necessaries ; to monopolize or attempt to monopo- lize, either locally or generally, any necessaries ; to engage in any discriminatory and unfair, or any deceptive or wasteful practice or device, or to make any unjust or unrea- sonable rate or charge, in handling or dealing in or with any necessaries ; to conspire, combine, agree, or arrange with any other person, (a) to limit the facilities for trans- porting, producing, harvesting, manufacturing, supplying, storing, or dealing in any necessaries ; (b) to restrict the supply of any necessaries ; (c) to restrict distribution 568 GOVERNMENT REGULATIONS RELATING TO PRICES. 569 series of Executive orders and proclamations, put entire responsibility for food control under the United States Food Administrator, Herbert C. Hoover, and extended the list of foods requiring licenses from the Food Administration. 1 i There follow the Executive orders and proclamations issued from time to time, and which were the immediate authority from the President for the administration of control : EXECUTIVE ORDERS. Providing for organization of the United States Food Administrators, Aug. 10, 1917. Providing for organization of the Food Administration Grain Corporation, Aug. 14, 1917. Directing Treasury Department to enforce sections 15 and 16 of food-control act, Sept. 2, 1917. Providing for appointment of secretaries to Federal Food Administration without civil- service examination, Sept. 27, 1917. Providing for requisitioning of foods and feeds, Oct. 23, 1917. Amending civil-service regulations, Nov. 10, 1917. Authorizing United States Food Administration to find that fair profit is normal average prewar profit, Nov. 27, 1917. Designating Food Administration Grain Corporation as agency of United States to pur- chase wheat, and directing that capital stock be increased, June 21, 1918. Note regarding formation of the United States Sugar Equalization Board (Inc.), formed July 13, 1918. PROCLAMATIONS. License of wheat and rye elevators and millers, Aug. 14, 1917. License of importers, manufacturers, and refiners of sugar, sugar sirups, and molasses, Sept. 7, 1917. License of manufacturers and distributors of certain food commodities, Oct. 8, 1917. Licensing bakers, Nov. 7, 1917. License of arsenic industry, Nov. 15, 1917. Limiting alcoholic content of malt liquor, Dec. 8, 1917. License of ammonia industry, Jan. 3, 1918. Licensing the importation, manufacture, storage, and distribution of feeds and certain other food commodities, Jan. 10, 1918. Conservation of wheat, Jan. 18, 1918. Licensing bakers not already licensed, and importers and distributors of green coffee, Jan. 30, 1918. Fixing guaranteed prices for 1918 wheat crop, Feb. 21, 1918. License of fertilizer industry, Feb. 25, 1918. Licensing packers of canned tuna and others, May 14, 1918. License of farm-equipment industry, May 14, 1918. License of stockyards, June 18, 1918. Fixing guaranteed prices for 1919 wheat crop, Sept. 2, 1918. License of dealers in live or dead cattle, sheep, swine, or goats, Sept. 6, 1918. Prohibiting manufacture of malt liquors, Sept. 16, 1918. Licensing operators of warehouses storing foods and feeds for hire, and others, Nov. 2, 1918. cf any necessaries; (d) to prevent, limit, or lessen the manufacture or production of any necessaries in order to enhance the price thereof, or (e) to exact excessive prices for any necessaries ; or to aid or abet the doing of any act made unlawful by this section. SEC. 5. That, from time to time, whenever the President shall find it essential to license the importation, manufacture, storage, mining, or distribution of any necessaries, in order to carry into effect any of the purposes of this Act, and shall publicly so announce, no person shall, after a date fixed in the announcement, engage in or carry on any such business specified in the announcement of importation, manufacture, storage, mining, or distribution of any necessaries as set forth in such announcement, unless he shall secure and hold a license issued pursuant to this section. The President is author- ized to issue such licenses and to prescribe regulations for the issuance of licenses and requirements for systems of accounts and auditing of accounts to be kept by licensees, submission of reports by them, with or without oath or affirmation, and the entry and inspection by the President's duly authorized agents of the places of business of licensees. Whenever the President shall find that any storage charge, commission, profit, or practice of any licensee is unjust, or unreasonable, or discriminatory and unfair, or wasteful, and shall order such licensee, within a reasonable time fixed in the 570 HISTOEY OE PRICES DURING THE WAR. The whole body of regulations pertaining to foods issued by the Food Admin- istration fall under general license regulations (No. I) or special license regula- order, to discontinue the same, unless such order, which shall recite the facts found, is revoked or suspended, such licensee shall, within the time prescribed in the order, dis- continue such unjust, unreasonable, discriminatory and unfair storage charge, com- mission, profit, or practice. The President may, in lieu of any such unjust, unreasonable, discriminatory, and unfair storage charge, commission, profit, or practice, find what is a just, reasonable, nondiscriminatory and fair storage charge, commission, profit, or practice, and in any proceeding brought in any court such order of the President shall be prima facie evidence. Any person who, without a license issued pursuant to this sec- tion, or whose license shall have been revoked, knowingly engages in or carries on any business for which a license is required under this section, or willfully fails or refuses to discontinue any unjust, unreasonable, discriminatory and unfair storage charge, commission, profit, or practice, in accordance with the requirement of an order issued under this section, or any regulation prescribed under this section, shall, upon conviction thereof, be punished by a fine not exceeding $5,000, or by imprisonment for not more than two years, or both : Provided^ That this section shall not apply to any farmer, gardener, cooperative association of farmers or gardeners, including live-stock farmers, or other persons with respect to the products of any farm, garden, or other land owned, leased, or cultivated by him, nor to any retailer with respect to the retail business actually conducted by him, nor to any common carrier, nor shall anything in this section be construed to authorize the fixing or imposition of a duty or tax upon any article imported into or exported from the United States or any State* Territory, or the District of Columbia : Provided further, That for the purposes of this AcT a retailer shall be deemed to be a person, copartnership, firm, corporation, or association not engaging in the wholesale business whose gross sales do not exceed $100,000 per annum. SEC. *6. That any person who willfully hoards any necessaries shall upon conviction thereof be fined not exceeding $5,000 or be imprisoned for not more than two years, or both. Necessaries shall be deemed to be hoarded within the meaning of this Act when either (a) held, contracted for, or arranged for by any person in a quantity in excess of his reasonable requirements for use or consumption by himself and dependents for a rea- sonable time ; (b) held, contracted for, or arranged for by any manufacturer, wholesaler, retailer, or other dealer in a quantity in excess of the reasonable requirements of his busi- ness for use or sale by him for a reasonable time, or reasonably required to furnish neces- saries produced in surplus quantities seasonally throughout the period of scant or no pro- duction ; or (c) withheld, whether by possession or under any contract or arrangement, from the market by any person for the purpose of unreasonably increasing or diminish- ing the price : Provided, That this section shall not include or relate to transactions on any exchange, board of trade, or similar institution or place of business as described in section thirteen of this Act that may be permitted by the President under the authority conferred upon him by said section thirteen : Provided, however, That any accumulating or withholding by any farmer or gardener, cooperative association of farmers or gardeners, including live-stock farmers, or any other person, of the products of any farm, garden, or other land owned, leased, or cultivated by him shall not be deemed to be hoarding within the meaning of this Act. SEC. 7. That whenever any necessaries shall be hoarded as defined in section six they &hall be liable to be proceeded against in any district court of the United States within the district where the same are found and seized by a process of libel for condemnation, and if such necessaries shall be adjudged to be hoarded they shall be disposed of by sale in such manner as to provide the most equitable distribution thereof as the court may direct, and the proceeds thereof, less the legal costs and charges, shall be paid to the party entitled thereto. The proceedings of such libel cases shall conform as near as may be to the pro- ceedings in admiralty, except that either party may demand trial by jury of any issue of fact joined in any such case, and all such proceedings shall be at the suit of and in the name of the United States. It shall be the duty of the United States attorney for the proper district to institute and prosecute any such action upon presentation to him of satisfactory evidence to sustain the same. SEC. 8. That any person who willfully destroys any necessaries for the purpose of en- hancing the price or restricting the supply thereof shall, upon conviction thereof, be fined not exceeding $5,000 or imprisoned for not more than two years, or both. SEC. 9. That any person who conspires, combines, agrees, or arranges with any other person (a) to limit the facilities for transporting, producing, manufacturing, supplying, storing, or dealing in any necessaries; (b) to restrict the supply of any necessaries; (c) to restrict the distribution of any necessaries ; (d) to prevent, limit, or lessen the manu- facture or production of any necessaries in order to enhance the price thereof shall, upon GOVERNMENT REGULATIONS RELATING TO PRICES. 571 tions (Nos. II to XX VIII )/ These regulations, issued during the war in mimeo- graphed and printed loose-leaf form, pertain to prices, specifications, contracts, 1 There follows a list showing dates of the various general and special license regulations issued by the Food Administration : No. T. General license regulations : Governing all licenses for the importation, manufac- ture, storage, and distribution of food commodities and feeds. SPECIAL LICENSE REGULATIONS. No. II. Wheat millers and manufacturers of mixed flours, effective July 22, 1918. No. III. A. Elevators and dealers handling wheat, rye, corn, oats, and barley. B. Corn, oats, rye, and barley millers. Effective September 23, 1918. No. IV. A. Malsters. B. Near-beer manufacturers, effective September 23, 1918. No. V. A. Special regulations governing dealers in rough rice. B. Special regulations governing rice millers and manufacturers of rice flour, effective July 29, 1918. No. VI. Manufacturers and refiners of sugar, effective June 15, 1918. No. VII. Canners of peas, tomatoes, corn, dried beans, salmon, sardines and tuna, and manufacturers of tomato catsup, tomato soup, and other tomato products, manufacturers of condensed, evaporated, or powdered milk, effective June 15, 1918. No. VIII. Packers of dried fruits, effective June 15, 1918. No. IX. Dealers and brokers in cotton seed and peanuts and cotton ginners, crushers of cotton seed, peanuts, soya beans, palm kernel, and copra. Importers of peanuts, peanut oil, soya beans, soya-bean oil, palm kernels, palm-kernel oil, copra, copra oil, and palm oil, and dealers and brokers in such imported products. Refiners of and dealers and brokers in cottonseed oil, peanut oil, soya-bean oil, palm-kernel oil, and copra oil, effective July 1, 1918. No. X. Special regulations governing manufacture of oleomargarine and other butter substitutes, effective December 4, 1918. No. XI. Wholesalers, jobbers, importers, retailers : Special rules applying to licensed nonperishable food commodities, effective June 15, 1918. No. XII. Brokers and' auctioneers of licensed nonperishable food commodities, effective June 15, 1918. No. XIII. Manufacturers of bakery products, effective September 1, 1918. No. XIV. Dealers in glucose, refiners' sirups, maple sirup, sorghum, cane-juice sirup, centrifugal molasses, open-kettle molasses, West India molasses and blackstrap molasses, and manufacturers and mixers of mixed molasses, effective November 7, 1918. No. XV. Distributors of fresh fruits and vegetables. No. XVI. Distributors of fresh fish and frozen fish. No. XVII. Salt-water fishermen. No. XVIII. Distributors of poultry, effective December 9, 1918. No. XIX. Distributors of eggs, effective November 11, 1918. No. XX. Manufacturers and distributors of butter, effective December 23, 1918. No. XXI. Manufacturers and distributors of cheese, effective June 12, 1918. No. XXII. Distributors of milk and cream. No. XXIII. Meat packers and manufacturers of lard, distributors of fresh meat. No. XXIV. Cold-storage warehousemen, effective August 26, 1918. No. XXV. Feeding stuffs, effective August 1, 1918. No. XXVI. Directions regarding the use of tin and other containers adopted by the United States Food Administration and the War Industries Board applying to manufac- turers and packers of baking powder, ground spice, powdered cocoa, chocolate, candy, cof- fee, coffee substitutes, tea, spaghetti, pickles, hominy, condensed milk, salt, lard, and lard substitutes, macaroni, sirups, and molasses, effective October 1, 1918. No. XXVII. All public eating places, effective December 17, 1918. No. XXVIII. Special regulations governing licensees engaged in business as general stor- age warehousemen, effective December 1, 1918. conviction thereof, be fined not exceeding $10,000 or be imprisoned for not more than two years, or both. SEC. 10. That the President is authorized, from time to time, to requisition foods, feeds, fuels, and other supplies necessary to the support of the Army or the main- tenance of the Navy, or any other public use connected with the common defense, and to requisition, or otherwise provide, storage facilities for such supplies ; and he shall ascertain and pay a just compensation therefor. If the compensation so determined be not satisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined by the President, and shall be 572 HISTORY OF PRICES DURING THE WAR. conservation, and distribution. An endeavor has been made in this digest, made entitled to sue the United States to recover such further sum as, added to said seventy- five per centum will make up such amount as will be just compensation for such neces- saries or storage space, and jurisdiction is hereby conferred on the United States Dis- trict Courts to hear and determine all such controversies : Provided, That nothing In this section, or in the section that follows, shall be construed to require any natural person to furnish to the Government any necessaries held by him and reasonably required for consumption or use by himself and dependents, nor shall any person, firm, corporation, or association be required to furnish to the Government any seed necessary for the seeding of land owned, leased, or cultivated by them. SEC. 11. That the President is authorized from time to time to purchase, to store, to provide storage facilities for, and to sell for cash at reasonable prices, wheat, flour, meal, beans, and potatoes : Provided, That if any minimum price shall have been theretofore fixed, pursuant to the provisions of section fourteen of this Act, then the price paid for any such articles so purchased shall not be less than such minimum price. Any moneys received by the United States from or in connection with the disposal by the United States of necessaries under this section may, in the discretion of the Presi- dent, be used as a revolving fund for further carrying out the purposes' of this section. Any balance of such moneys not used as part of such revolving fund shall be covered into the Treasury as miscellaneous receipts. SEC. 12. That whenever the President shall find it necessary to secure an adequate supply of necessaries for the support of the Army or the maintenance of the Navy, or for any other public use connected with the common defense, he is authorized to requisition and take over, for use or operation by the Government, any factory, packing house, oil pipe line, mine, or other plant, or any part thereof, in or through which any necessaries are or may be manufactured, produced, prepared, or mined, and to operate the same. Whenever the President shall determine that the further use or operation by the Government of any such factory, mine, or plant, or part thereof, is not essential for the national security or defense, the same shall be restored to the person entitled to the possession thereof. The United States shall make 1 just compensation, to be determined by the President, for the taking over, use, occupation, and operation by the Government of. any such factory, mine, or plant, or part thereof. If the compensation so determined be unsatisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined by the President, and shall be entitled to sue the United States to recover such further sum as, added to said seventy-five per centum, will make up such amount as will be just compensation, in the manner provided by section twenty- four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. The President is authorized to prescribe such regulations as he may deem essential for carrying out the purposes of this section, including the operation of any such factory, mine, or plant, or part thereof, the purchase, sale, or other disposition of articles used, manufac- tured, produced, prepared, or mined therein, and the employment, control, and compensa- tion of employees. Any moneys received by the United States from or in connection with the use or operation of any such factory, mine, or plant, or part thereof, may, in the discretion of the President, be used as a revolving fund for the purpose of the continued use or operation of any such factory, mine, or plant, or part thereof, and the accounts of each such factory, mine, plant, or part thereof, shall be kept separate and distinct. Any balance of such moneys not used as part of such revolving fund shall be paid into the Treasury as miscellaneous receipts. SEC. 13. That whenever the President finds it essential in order to prevent undue en- hancement, depression, or fluctuation of prices of, or in order to prevent injurious specu- lation in, or in order to prevent unjust market manipulation or unfair and misleading market quotations of the prices of necessaries, hereafter in this section called evil prac- tices, he is authorized to prescribe such regulations governing, or may either wholly or partly prohibit, operations, practices, and transactions at, on, in, or under the rules of any exchange, board of trade, or similar institution or place of business as he may find essential in order to prevent, correct, or remove such evil practices. Such regulations may require all persons coming within their provisions to keep such records and state- ments of account, and may require such persons to make such returns, verified under oath or otherwise, as will fully and correctly disclose all transactions at, in, or on, or under the rules of any such exchange, board of trade, or similar institution or place of business, including the making, execution, settlement, and fulfillment thereof. He may also require all persons acting in the capacity of a clearing house, clearing association, or similar insti- tution, for the purpose of clearing, settling, or adjusting transactions at, in, or on, or under the rules of any such exchange, board of trade, or similar institution or place of business, to keep such records and to make such returns as will fully and correctly dis- close all facts in their possession relating to such transactions, and be may appoint agents GOVERNMENT REGULATIONS RELATING TO PRICES. 573 possible and approved by Mr. W. C. Mullendore, of the legal section of the Food to conduct the investigations necessary to enforce the provisions of this section and all rules and regulations made by him in pursuance thereof, and may fix and pay the com- pensation of such agents. Any person who willfully violates any regulation made pur- suant to this section, or who knowingly engages in any operation, practice, or transaction prohibited pursuant to this section, or who willfully aids or abets any such violation or any such prohibited operation, practice, or transaction, shall, upon conviction thereof, be punished by a fine not exceeding $30,000 or by imprisonment for not more than four years, or both. SEC. 14. That whenever the President shall find that an emergency exists requiring stimulation of the production of wheat and that it is essential that the producers of wheat, produced within the United States, shall have the benefits of the guaranty pro- vided for in this section, he is authorized, from time to time, seasonably and as far in advance of seeding time as practicable, to determine and fix and to give public notice of what, under specified conditions, is a reasonable guaranteed price for wheat, in order to assure such producers a reasonable profit. The President shall thereupon fix such guar- anteed price for each of the official grain standards for wheat as established under the United States grain standards Act, approved August eleventh, nineteen hundred and six- teen. The President shall from time to time establish and promulgate such regulations as he shall deem wise in connection with such guaranteed prices, and in particular gov- erning conditions of delivery and payment, and differences in price for the several stand- ard grades in the principal primary markets of the United States, adopting number one northern spring or its equivalent at the principal interior primary markets as the basis. Thereupon, the Government of the United States hereby guarantees every producer of wheat produced within the United States, that, upon compliance by him with the regula- tions prescribed, he shall receive for any wheat produced in reliance upon this guarantee within the period, not exceeding eighteen months, prescribed in the notice, a price not less than the guaranteed price therefor as fixed pursuant to this section. In such regula- tions the President shall prescribe the terms and conditions upon which any such pro- ducer shall be entitled to the benefits of such guaranty. The guaranteed prices for the several standard grades of wheat for the crop of nineteen hundred and eighteen, shall be based upon number one northern spring or its equivalent at not less than $2 per bushel at the principal interior primary markets. This guaranty shall not be dependent upon the action of the President under the first part of this section, but is hereby made absolute and shall be binding until May first, nineteen hundred and nineteen. When the President finds that the importation into the United States of any wheat produced outside of the United States materially enhances or is likely materially to enhance the liabilities of the United States under guaranties of prices therefor made pursuant to this section, and ascertains what rate of duty, added to the then existing rate of duty on wheat and to the value of wheat at the time of importation, would be sufficient to bring the price thereof at which imported up to the price fixed therefor pursuant to the foregoing pro- visions of this section, he shall proclaim such facts, and thereafter there shall be levied, collected, and paid upon wheat when imported in addition to the then existing rate of duty, the rate of duty so ascertained ; but in no case shall any such rate of duty be fixed at an amount which will effect a reduction of the rate of duty upon wheat under any then existing tariff law of the United States. For the purpose of making any guaranteed price effective under this section, or whenever he deems it essential in order to protect the Government of the United States against material enhancement of its liabilities arising out of any guaranty under this section, the President is authorized also, in his discretion, to purchase any wheat for which a guaranteed price shall be fixed under this section, and to hold, transport, or store it, or to sell, dispose of, and deliver the same to any citizen of the United States or to any Government engaged in war with any country with which the Government of the United States is or may be at war or to use the same as supplies for any department or agency of the Government of the United States. Any moneys received by the United States from or in connection with the sale or disposal of wheat under this section may, in the discretion of the President, be used as a revolving fund for further carrying out the purposes of this section. Any balance of such moneys not used as part of such revolving fund shall be covered into the Treasury as miscel- laneous receipts. SEC. 15. That from and .after thirty days from the date of the approval of this Act no foods, fruits, food materials, or feeds shall be used in the production of distilled spirits for beverage purposes : Provided, That under such rules, regulations, and bonds as the Presi- dent may prescribe, such materials may be used in the production of distilled spirits exclusively for other than beverage purposes, or for the fortification of pure sweet wines as defined by the Act entitled "An Act to increase the revenue, and for other purposes," approved September eighth, nineteen hundred and sixteen. Nor shall there be imported 574 HISTORY OF PRICES DURING THE WAR. Administration, to show simply the rules relating directly to food prices. The into the United States any distilled spirits. Whenever the President shall find that limi- tation, regulation, or prohibition of the use of foods, fruits, food materials, or feeds in the production of malt or vinous liquors for beverage purposes, or that reduction of the alco- holic content of any such malt or vinous liquor, is essential, in order to assure an adequate and continuous supply of food, or that the national security and defense will be subserved thereby, he is authorized, from time to time, to prescribe and give public notice of the extent of the limitation, regulation, prohibition, or reduction so necessitated. Whenever such notice shall have been given and shall remain unrevoked no person shall, after a reasonable time prescribed in such notice, use any foods, fruits, food materials, or feeds iu the production of malt or vinous liquors, or import any such liquors except under license- issued by the President and in compliance with rules and regulations determined by him governing the production and importation of such liquors and the alcoholic content thereof. Any person who willfully violates the provisions of this section, or who shall use any foods, fruits, food materials, or feeds in the production of malt or vinous liquors, or who shall import any such liquors, without first obtaining a license so to do when a license is required under this section, or who shall violate any rule or regulation made under thi ? section, shall be punished by a fine not exceeding $5,000, or by imprisonment for not xuoro than two years, or both : Provided further, That nothing in this section shall be con- strued to authorize the licensing of the manufacture of vinous or malt liquors in any State, Territory, or the District of Columbia, or any civil subdivision thereof, where the manufacture of such vinous or malt liquor is prohibited. SEC. 16. That the President is authorized and directed to commandeer any or all dis- tilled spirits in bond or in stock at the date of the approval of this Act for redistilla- tion, in so far as such redistillation may be necessary to meet the requirements of the Government in the manufacture of munitions and other military and hospital supplies, or in so far as such redistillation would dispense with the necessity of utilizing products and materials suitable for foods and feeds in the future manufacture of distilled spirits for the purposes herein enumerated. The President shall determine and pay a just compensation for the distilled spirits so commandeered ; and if the compensation so determined be not satisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined by the President and shall be entitled to sue the United States to recover such further sum as, added to said seventy-five per centum, will make up such amount as will be just compensation for such spirits, in the manner provided by section twenty-four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. SEC. 17. That every person who willfully assaults, resists, impedes, or interferes with any officer, employee, or agent of the United States in the execution of any duty authorized to be performed by or pursuant to this Act shall upon conviction thereof be fined not exceeding $1,000 or be imprisoned for not more than one year, or both. SBC. 18. That the sum of $2,500,000 is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, to be available until June thirtieth, nineteen hundred and eighteen, for the payment of such rent, the expense, including postage, of such printing and publications, the purchase of such material and equipment, ana tne employment of such persons and means, in the city of Washington and elsewhere, as the President may deem essential. SBC. 19. That for the purposes of this Act the sum of $150,000,000 is hereby appropri- ated, out of any moneys in tne Treasury not otherwise appropriated, to be available during the time this Act is in effect: Provided, That no part of this appropriation shall be expended for the purposes described in the preceding section : Provided furtlter, That itemized statements covering all purchases and disbursements under this and the pre- ceding section shall be filed with the Secretary of the Senate and the Clerk of tho House of Representatives on or before the twenty-fifth day of each month after the taking effect of this Act, covering the business of the preceding month, and said state- ments shall be subject to public inspection. SBC. 20. That the employment of any person under the provisions of this Act shall not exempt any such person from military service under the provisions of the selective draft law approved May eighteenth, nineteen hundred and seventeen. SEC. 21. The President shall cause a detailed report to be made to the Congress on the first day of January each year of all proceedings had under this Act during the year preceding. Such report shall, in addition to other matters, contain an account of all persons appointed or employed, the salary or compensation paid or allowed each, the amount of the different kinds of property purchased or requisitioned, the use GOVERNMENT REGULATIONS RELATING TO PRICES. 575 original issue numbers of all rules, and their exact headings, have been retained, but parts not relevant to prices are omitted. and disposition made of such property, and a statement of all receipts, payments, and expenditures, together with a statement showing the general character, and estimated value of all property then on hand, and the aggregate amount and character of all claims against the United States growing out of this Act. SEC. 22. That if any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof, directly involved in the controversy in which such judgment shall have been rendered. SEC. 23. That words used in this Act shall be construed to import the plural or the singular, as the case demands. The word "person," wherever used in this Act, shall include individuals, partnerships, associations, and corporations. When construing and enforcing the provisions of this Act, the act, omission, or failure of any official, agent, or other person acting for or employed by any partnership, association, or corporation within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such partnership, association, or corporation as well as that of the person. SEC. 24. That the provisions of this Act shall cease to he in effect when the existing state of war between the United States and Germany shall have terminated, and the fact and date of such termination shall be ascertained and proclaimed by the President ; but the termination of this Act shall not affect any act done, or any right or obligation accru- ing or accrued, or any suit or proceeding had or commenced in any civil case before the said termination pursuant to this Act ; but all rights and liabilities under this Act arising before its termination shall continue and may be enforced in the same manner as if the Act had not terminated. Any offense committed and all penalties, forfeitures, or liabilities incurred prior to such termination may be prosecuted or punished in the same manner and with the same effect as if this Act had not been terminated. SBC. 26. That any person carrying on or employed in commerce among the several States, or with foreign nations, or with or in the Territories or other possessions of the United States in any article suitable for human food, fuel, or other necessaries of life, who, either in his individual capacity or as an officer, agent, or employee of a corporation or member of a partnership carrying on or employed in such trade, shall store, acquire, or hold, or who shall destroy or make away with any such article for the purpose of limiting the supply thereof to the public or affecting the market price thereof in such commerce, whether temporarily or otherwise, shall be deemed guilty of a felony and, upon conviction thereof, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both : Provided, That any storing or holding by any farmer, gardner, or other person of the products of any farm, garden, or other land cultivated by him shall not be deemed to be a storing or holding within the meaning of this Act: Provided further, That farmers and fruit growers, cooperative and other exchanges, or societies of a similar character shall not be included within the provisions of this section : Provided further That this section shall not be construed to prohibit the holding or accumulating of any such article by any such person in a quantity not in excess of the reasonable requirements of his business for a reasonable time or in a quantity reasonably required to furnish said articles produced in surplus quantities seasonally throughout the period of scant or no production. Nothing contained in this section shall be construed to repeal the Act entitled "An Act to protect trade and eoin- merce against unlawful restraints and monopolies,'' approved July second, eighteen hun- dred and ninety, commonly known as the Sherman Antitrust Act. SEC. 27. That the President is authorized to procure, or aid in procuring, such stocks? of nitrate of soda as he may determine to bo necesary, and find available, for increasing agricultural production during the calendar years nineteen hundred and seventeen and eighteen, and to dispose of the same for cash at cost, including all expenses connected therewith. For carrying out the purposes of this section, there is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, available immediately and until expended, the sum of $10,000,000, or so much thereof as may be n-ecessary, and th-p President is authorized to make such regulations, and to use such means and nancies of the Government, as, in his discretion, he may deem best. The proceeds arising from the disposition of the nitrate of soda shall go into the Treasury as miscellaneous receipts. Approved, August 10, 1917. 576 HISTORY OF PRICES DURING THE WARo GENERAL REGULATIONS. The following general rules correspond to general rules, series B, which became effective, unless otherwise noted, on November 1, 1917 : Rule 1. Reports to be furnished. It shall be the duty of each licensee to give to such representative as may be designated by the United States Food Administrator, whenever the said representative shall so require, any informa- tion concerning the conditions and management of the business of the licensee. Reports, when requested by said representative, shall be made on such blanks, to be furnished by the United States Food Administration, as the United States Food Administrator may designate, giving complete information regarding trans- actions in any commodities imported, manufactured, refined, packed, purchased, contracted for, received, sold, stored, shipped or otherwise handled, distributed or dealt with by the licensee, or on hand, in the possession or under the control of the licensee, and any other information concerning the business of the licensee that such representative may require from time to time. Whenever the said representative shall require it, the licensee shall furnish such information in writing under oath. Rule 2. Property and records to be open to inspection. The authorized repre- sentative of the United States Food Administrator shall be at full liberty, dur- ing ordinary business hours, to inspect any and all property stored or held in possession or under the control of the licensee, and all records of the licensee. All necessary facilities for such inspection shall be extended to the said repre- sentative by the licensee, its agents and servants. Rule 3. Must keep records. The licensee shall keep such records of his busi- ness as shall make practicable the verification of all reports rendered to the United States Food Administration. NOTE. Records of " drop shipments " are to be included in the records of the whole- saler as well as of the manufacturer or retailer. Rule 5. Unreasonable profits prohibited. The licensee shall not import, manu- facture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, unreasonable, discriminatory, or unfair commission, profit, or storage charge. NOTES. Special profit regulations. In addition to this general rule requiring that profits should be reasonable, the licensee in most lines of business will find special rules dealing more explicitly with the profits permitted in his business. Licensee performing two functions. In cases where a licensee, in addition to his princi- pal business, performs another function customarily performed by a different type of licensee, as where a manufacturer distributes through a jobbing department directly to the retail trade, he will be permitted to make a reasonable charge for each service, provided (a) That he keeps such separate accounts of his operations as to enable him to make the reports required of persons licensed to perform that function, and to enable such reports to be verified ; and (b) Conforms to the regulations of the Food Administration in respect to the supple- mentary function which he performs. In many cases, however, the licensee's service and his expense of operation will not be as great as that of persons engaged exclusively in a similar business, and in such case he willnot be allowed to charge as great a margin as is permitted to such other licensee. Cold-storage warehouse charges. This rule prohibits cold-storage warehouse licensees from making unreasonable or discriminatory charges in handling or storing food com- modities. The United States Food Administration recognizes the principle that up to a certain point it ordinarily costs less per unit to handle large quantities than to handle small quantities, and large lots than small lots, of a particular commodity, and has no objection, to licensees charging a lesser rate per unit for large quantities or lots than for small quantities or lots if the diiferentiation in rates is based on variation of cost in handling the particular commodity. Hereafter, the above-mentioned principle must be applied by cold-storage warehousemen in arranging any variations in rates or discounts for quantity contained in schedules of rates or amendments thereto that are filed. With respect to rate schedules now on file in which lower rates for large lots or discounts for quantity are stated, no objection has been or will be made to differentia- tions in rates unless they are obviously merely arbitrary or discriminatory or in effect constitute a preference to one or a few patrons, cr unless upon investigation they are found to be without reasonable justification. All rates must of course be contained in the schedule required to be filed with the United States Food Administration and must be clear, explicit, well defined, and intel- ligible. Every patron is entitled to know his exact classification and the specific rate he is to be charged. Application of maximum margins of profits to ex-port transactions. All sales made in the United States are governed by the margins of profit indicated by the Food Admin- istration except sales made by exporters who extend credit abroad or sell on letters of credit and actually ship the goods abroad, provided, however, that where a manufacturer or dealer sells to an exporter for shipment on the exporter s own account, or for ship- ment as an agent for the buyer, such sales will not be governed by the margins pre- scribed by the Food Administration for domestic sales if the seller can show that the goods are shipped abroad without any storage or resale in 1he United States. (Opinion A-125, Dec. 10, 1918.) GOVERNMENT REGULATIONS RELATING TO PRICES. 577 Rule 6. Resales within same trade prohibited, when. The licensee, in selling food commodities, shall keep such commodities moving to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, especially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice. NOTE. Special resale regulations. See pamphlets containing special regulations for ap- plication of this rule to particular businesses and commodities. Dealers in nonperishable commodities will find a full statement explaining what resales are reasonable in their business in the special license regulations applying to them under Rule A-6. Resales in poultry, eggs, butter, cheese, coffee, and rice are dealt with bv special regula- tion under the rules applying to dealers in those commodities. In cases of resale, any broker concerned shares the same responsibility as the buyer and seller. Resales that may be permitted should be made subject to such measure of control as the Federal food administrator in the particular State deems it necessary to exercise. In some States, for example, the administrator has required the parties to a proposed resale to file with him affidavits or other evidence sufficient to establish the fact that the particu- lar lot of goods being resold bears but one wholesale profit between the manufacturer and the retailer. A similar principle applies to resales between retailers. Rule 7. Speculation prohibited. No broker or other licensee shall buy or sell any food commodity for his own account unless he is also regularly engaged in and holds himself out to the trade as conducting the business of distributing such commodity otherwise than on a commission or brokerage basis, or unless he uses such commodities in manufacturing, provided that this rule shall not apply to sales on an exchange, board of trade, or similar institution. Rule 8. Sales to speculators forbidden. No licensee shall knowingly sell any food commodity to a broker or other licensee who is not buying for personal consumption or engaged in using such commodity in manufacturing, or who is not regularly engaged in and holding himself out to the trade as conducting the business of distributing such commodity otherwise than on a commission or brokerage basis, provided that this rule shall not apply to sales on an exchange, board of trade, or similar institution. NOTE. The regulation of exchange transactions is not a function of license regulations, and under section 13 of the food-control act will be handled by special regulation from time to time. There is no general rule 9 in the present series. See special rules applying to vour business. Rule 10. Unfair practices forbidden. The licensee shall not buy, contract for, sell, store, or otherwise handle or deal in any food commodities for the pur- pose of unreasonably increasing the price or restricting the supply of such corn- -modities, or of monopolizing, or attempting to monopolize, either locally or gen- erally, any of such commodities. Rule 18. Secret rebates prohibited. No licensee shall make any allowance or payment to the agent or employee of any exchange, association, or other person from whom he buys, or to whom he sells, or for whom he handles commodities on commission without the permission of the principal of such agent. If such permission is not in writing, immediate written notice shall be sent to the prin- cipal by the licensee on the account sales or otherwise, giving the amount of the payment and the name of the agent, exchange, or association to whom paid. ( Rule issued Nov. 1, 1917, prohibited rebates " without written permission of principal." Amended to present form Apr. 4, 1918; repealed Dec. 16, 1918.) If general written permission is given by the principal for his agent to receive commis- sions from a particular broker or other person, written permission or notice is not required in case of each individual commission. . Payments or allowances to an agent of the shipper by a licensee for any services what- ever which the agent renders to the licensee are not permissible without the permission of the shipper. The fact that a broker makes no charge to the owner for forwarding to another locality goods that he can not sell in his own field does not obviate the necessity of obtaining the permission of the owner to the receipt by the broker of an allowance or payment from the new consignee. Rule 19. Market quotations must not be misleading. The licensee shall not issue, or make public, market quotations or make any statements to any person regarding the price at which food commodities are being sold, which quotations or statements can not be verified either from his own records or from the records 125547 20 37 578 HISTORY OF PRICES DURING THE WAR. of other licensees, and shall not make any other misleading statements which tend to enhance the price of any food commodities. NOTES. This rule does not make the licensee responsible for distributing market re- ports published by reputable and established market news agencies bearing the name of the publishers. It is not necessary to inform a shipper that a quotation is subject to a charge for broker- age if it is the general understanding of the trade that such a quotation is subject to such a charge. Rule 23 (as amended Dec. 3, 1918). Combination sales prohibited. No licensee dealing in food commodities at retail shall make or ofter to make any combina- tion sales of any food commodity. A combination sale is (1) any sale or delivery of two or more commodities, or of two or more kinds or sizes of the same commodity, at a price effective only if they are bought at the same time; or (2) any sale or delivery of a commodity upon condition that the purchaser shall buy some other commodity, or some other kind or size of the same commodity. (Rule issued Jan. 28, 19is! permitted sales of sugar with corn meal, and wheat flour with substitutes. Changed Sept. 1, 1918, permitting only combination sales of wheat flour with substitutes. Dec. 3, 1918, all combination sales prohibited; repealed Feb 1 1919.) SPECIAL REGULATIONS. II. WHEAT MILLERS AND MANUFACTURERS OF MIXED FLOURS. PROFITS, PRICES, AND DIFFERENTIALS. Rule M. S. 11 (as amended Sept. 20, 1918). Wheat flour, mixed flour, and feed to be sold at reasonable advance over cost of wheat and packages. The wheat miller shall sell flour and feed at not more than a reasonable advance over the average purchase price of the wheat from which it is manufactured, plus the cost of packages; provided that if any such miller pays more for wheat than the customary market price in that locality, as evidenced by the fail- guaranteed price basis established by the President's proclamation of February 21, 1918, he shall not be permitted to include in his average purchase price, for the purpose of this rule, the excess over such customary market price. (Rule issued Nov. 1, 1917, allowed a profit of 25 cents per barrel on flour and 50 cents per ton on feed. Dec. 25, 1917, differentials on various w^heat mill feeds indicated. May 2, 1918, differentials changed on wheat mill feed. Changed to present form July 22, 1918; repealed Dec. 19, 1918.) NOTE. Fair price schedules. The United States Food Administration will publish from time to time and furnish to any wheat miller a maximum fair price schedule for flour and feed established with relation to the guaranteed price basis for wheat. Any sales of wheat flour, mixed flour, whole wheat or graham flour, or wheat mill feed in excess of this fair price schedule will be regarded as a violation of the above rule, and any sale at a price at or below the fair price schedule will be regarded as a compliance with the above rule. Mixed -flours. The above rule and fair price schedule apply to " mixed flour " and whole wheat and graham flour, as well as to wheat flour. Sales of mixed flour, whole wheat and graham flour will be considered to return an excessive profit if made at 'a Srice in excess of the fair price schedule or of the licensee's current selling price of wheat our. Soft wheat feeds. The Food Administration will regard as reasonable the sale of soft winter wheat mill feeds at a price not more than $2 in excess of the maximum fair price schedule for other wheat mill feeds ; provided that all shipments or deliveries of such mill feeds are made in packages which are plainly marked " soft winter wheat." Interest on arrival drafts. Interest on arrival drafts on sales of flour and feed may be included in invoices as a separate item, and is chargeable over the fair price schedules where definite arrangements to that effect are made between buyer and seller. Self-rising wheat flour. The Food Administration will regard as reasonable the sale of self-rising wheat flour at a price not more than 50 cents per barrel over the licensee's maximum fair price schedule for 100 per cent straight grade wheat flour. Blenders. The Food Administration will regard as reasonable a margin of 25 cents per barrel over average cost for blending wheat flours or for blending wheat flours with sub- stitutes, the cost to be considered as the average invoice price delivered at the blending plant. To the above carload basis it will be considered reasonable that blenders add the selling margins covering various classes of sales, as per rule M. S. 14. Wheat screenings. Any sales of wheat screenings in excess of the fair price schedule for bran will be regarded as a violation of rule M. S. 11 and cause for revoking the offender's license. (Aug. 24, 1918 ; canceled Dec. 3, 1918.) GOVERNMENT REGULATIONS RELATING TO PRICES. 579 Rule M. S. 12. Package charge. In arriving at the per barrel package cost for the purpose of rule 11 the licensee shall use the current cost of two 98-pound cotton sacks of standard size and grade as quoted for lots of 1,000 bags, plus any freight or transportation charges. The charge for any other size or style of packages as furnished by mill or buyer shall be calculated on the basis of such 98-pound cotton sacks, plus or minus the differential which will be indi- cated from time to time by the United States Food Administration. (Differen- tials for various sizes and kinds of wheat flour packages indicated Dec. 25, 1917 ; differentials changed Mar. 23, 1918; changed to present form July 22, 1918; repealed Dec. 19, 1918.) Rule M. S. 13. Flour price schedule and differentials should be displayed in mill. The wheat miller shall cause to be displayed in his principal place of business and mills, warehouses, and agencies maintained, controlled, or oper- ated by him such flour price schedule and package differentials as may be fur- nished to him from time to time by the United States Food Administration, and a schedule showing cost of sacks and other charges. He shall furnish copies of any such documents to buyers upon request. (Issued July 22, 1918; repealed Dec. 19, 1918.) PACKAGE DIFFERENTIALS. [Basis, 98 pounds cotton.] Weight. Kind. Charge over bulk price for packing in buyer's packages. 196 wood $0 60 over basis $0.05 .15 .05 .05 .05 .05 .10 .10 .10 .10 .15 .15 .15 .20 .25 .25 .35 .35 .35 .50 .10 .10 .12 .12 .18 .18 .20 .25 .30 .30 .45 .45 .45 .75 98 wood $1 35 over basis 98, cotton Basis (2 to barre Same as basis 1) 140 jute 98, jute $0.05 over basis $0.20 under basi $0.20 over basis Same as basis . . 2 to barrel) 96, cotton 3 (2 to barrel) . . . 49 cotton 4 to barrel) 48, cotton . 24 cotton $0.45 over basis $0.25 over basis $0.80 over basis $0.60 over basis $1.20 over basis $0.90 over basis $1.10 over basis $1.05 over basis $1.70 over basis $1.55 over basis $1.70 over basis $2.65 over basis $0.05 under basi $0.25 under basi $0.05 over basis $0.05 under basi $0.25 over basis $0.05 over basis $0.50 over basis $0.15 over basis $0.40 over basis $0.55 over basis $0.70 over basis $0.85 over basis $0.95 over basis $1.60 over basis 8 to barrel)... 24 cotton 8 to barrel) 12J , cotton 16 to barrel) 12 cotton 16 to barrel) 10 cotton 20 to barrel) 8, cotton 24 to barrel) 7, cotton 28 to barrel) 6 cotton 32 to barrel) 5, cotton . . . . 40 to barrel) 3J cotton 56 to barrel) 64 to barrel) 2, cotton 96 to barrel) . . . 49 paper 3 (4 to barrel) 48, paper 3 (4 to barrel) 24| paper 8 to barrel) 24, paper 3 (8 to barren 12J , paper .. 16 to barrel) 12, paDer 16 to barrel) 10 paper 20 to barrel) 8, paper . . 24 to barrel) 7, paper 28 to barrel) 6, paper 32 to barrel) 5, paper 40 to barrel) .... 3i paper 56 to barrel) 3 , paper 64 to barrel) 2, paper ' 96 to barrel) . .. Outside jute or cotton envelopes, $0.60 per barrel additional, 10 cents. Outside paper envelopes, $0.40 per barrel additional, 10 cents. All sales to be made basis 98-pound cotton. Where flour is sold on basis 98-pound cotton sacks and delivery is made In buyer's sacks, the invoice price shall be arrived at by deducting from the selling price the cur- rent cost of two 98-pound cotton sacks. To bulk price thus obtained shall be added charges over bulk price for packing flour in buyer's sacks as named above. Seller or buyer may not have option of shipping flour in cotton or jute sacks where either have been specified at time of sale, except as may be agreed to by buyer and seller at time of shipment. (Note to rule 12, effective Sept. 18, 1918.) Rule M. S. 14 (as amended Sept. 20, 1918). Maximum permissible margins over car-lot bulk on various classes of sales. All sales of wheat flour and wheat mill feed shall be classified as follows, and the wheat miller shall not charge 580 HISTORY OF PRICES DURING THE WAR. more than the maximum margins indicated for each class over his car-lot price, bulk, mill, cash, or draft terms : Class A. Sales to any buyer in carload lots, bulk, mill, cash, or draft attached to bill of lading. Basis. Class B. Sales to any buyer in mixed carloads of wheat flour, wheat-flour sub- stitutes, and feeds : Flour, not more than 25 cents per barrel over basis. Feed, not more than 50 cents per ton over basis. Class C. Sales of " consigned " flour to wholesale dealers from cars or docks, in carload lots (not delivered). 25 cents per barrel over basis. Class D. Sales of " consigned " flour to wholesale dealers, from cars or docks ; in less than carload lots ( not delivered ) , 35 cents per barrel over basis. Class E. Sales of flour to any buyer, other than individual consumer, less than carload lots (not delivered) and excepting sales as per Schedules " C " and " D," not more than 50 cents per barrel over basis. Class F. Sales of flour in less than carload lots to individual consumers (not including bakers or public-eating places) : Not more than $1.20 per barrel over basis. Class G. Sales of feed to wholesale dealers in less than carload lots and not less than 1 ton : Not more than $1 per ton over basis. Class H. Sales of feed to retail dealers in less than carload lots and not less than 1 ton : Not more than $2 per ton over basis. Class I. Sales of feed in less than ton lots to feed dealers : Not more than $3 per ton over basis. Sales of feed to consumers. Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill is located will indicate what margins will be considered reasonable, NOTES. Credit and delivery on flour. Not more than 25 cents per barrel for delivery and credit may be charged in addition to the above margins where flour is delivered to the buyer's door, including all charges for credit, if credit is extended. Where credit is ex- tended without delivery, only the actual interest may be added. Brokerage. Brokerage may not be added to the fair price schedule either on flour or feed. Credit and delivery charges on feed. Not more than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. Only one margin over oasis permitted. Not more than one of the margins over basis, as Indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. Rule M. S. 15. Permissible price differential for farina, purified middlings, semolina, or special granular macaroni flour. Wheat-flour millers manufactur- ing farina, purified middlings, semolina, or special granular macaroni Hour. under the special permission of the United States Food Administration, flour milling section, Washington, D, C., may charge a price for such products not to exceed 40 cents per barrel above the licensee's fair price of 100 per cent straight- grade flour on date of sale. (Issued July 22, 1918 ; repealed Dec. 19, 1918.) Rule M. S. 16. Price differential on table bran. Bran intended for human consumption, so-called table bran, may be sold at a reasonable advance over the licensee's fair price for bran. (Issued July 22, 1918 ; repealed Dec. 19, 1918.) Rule M. S. 17, Differentials and returns on wheat mill feed. In selling wheat mill feed to the consumer at the mill door, if the purchaser desires to buy wheat mill feed in bulk and the sacks are emptied and left at the mill in undamaged condition, the miller shall not add to the purchase price any charge for sacks. In selling various grades of wheat mill feeds in carload lots, on terms of cash or draft attached to bill of lading, the miller shall sell same at a price not in excess of his car-lot price for mixed feed, bulk mill, plus or minus the following differentials : Shorts, standard middlings, gray shorts, gray middlings, flour middlings, or red dog, with or without screenings, 75 cents per ton over basis. Bran, with or without screenings, $1.25 per ton under basis. NOTE. The wheat miller may make such separations of wheat mill feeds as his trade may demand, but if the total returns received by him from the sale of wheat mill feed manufactured from any given wheat exceeds the amount which the Pood Administration considers to return a reasonable profit on an equal quantity of wheat mixed feed, i. e., the entire mill run of wheat mill feed, it will be considered that the miller has violated rule M. S. 11. Rule M. S. 19. Differential for reconditioning and blending. The licensee who blends or reconditions flour not of his own manufacture shall not sell such flour GOVERNMENT REGULATIONS RELATING TO PRICES. 581 in carload lots at more than 25 cents per barrel over the purchase price ; pro- vided that in making sales of the character of those described in rule 14 under classes B, C, D, E, and F, he may add not to exceed the additional margins pre- scribed therein for such sales. (Issued July 22, 1918 ; repealed Dec. 19, 1918.) NOTE. This rule does not apply to wheat millers mixing their own wheat flour with purchased wheat or substitute flours. Such mixed flour must be sold at not more than the licensee's price for wheat flour, in accordance with rule M. S. 11. Rule M. S. 20 (as amended Sept. 20, 1918). Custom and exchange grinding. The wheat miller who receives wheat from farmers' wagons and grinds such wheat on a toll basis, or exchanges such wheat for flour and feed, shall charge not to exceed 35 cents per bushel for each 60 pounds of cleaned wheat so received, and on such basis he shall return to the farmer flour and feed in accordance with the following schedule : Test weight of of wheat per bushel. Number pounds flour returnable. Number pounds hard-wheat feed returnable. Number pounds soft- wheat feed returnable. Pounds. 158 44 15 14 57 43 i 56 42| 164 15i 55 42 17 16 54 411 161 53 40J 17$ 52 m 18J 51 39 20 19 i Or heavier. (Rules issued Mar. 20, 1918, limited farmer to 30 days' supply, and if sold without substitutes a certificate was required restricting him to 30 days' supply to be used only for human consumption by his own household. Changed as noted here July 22, except that millers were not required to do custom and exchange grinding. Sept. 20, 1918, millers were required to continue such grind- ing, as noted here. Repealed Dec. 3, 1918.) CONTRACTING AND SHIPPING. Rule M. S. 21 (as amended Sept. 20, 1918). Uniform contract prescribed. The wheat miller shall not sell any wheat or mixed flour in quantities of more than 50 barrels, or wheat mill feed in quantities of more than 5 tons, except by signet contract in the form prescribed below. He shall not contract to sell wheat flour, mixed flour, or wheat mill feed in any quantities without stipu- lating that the terms of the uniform Food Administration contract shall pre- vail. He shall fill out in every such contract covering flour the flour charge items appearing under " Method of calculating maximum delivered fair price," and in every such contract covering feed the feed charge items appearing thereunder, and shall print under the item " Reasonable price schedule " the figures furnished to the miller by the United States Food Administration for that purpose. NOTE. This rule requires the confirmation by written contract of every telegraphic or other order for flour of more than 50 barrels or more or feed of more than 5 tons, even though by reason of shortage in time the flour is shipped before the actual signing of the contract. Until such, contract is signed it shall be understood that the trans- action is subject to the terms and conditions of the United States Food Administration contract. Orders taken by salesmen may be taken on regular mill contract forms, which may not show all details as listed in rule M. S. 21, but in such case the memoranda forms must bear notation as follows : " This order is taken subject to conditions of the uniform con- tract prescribed by the United States Food Administration, and buyer and seller hereby agree to execute such contract in writing on the United States Food Administration contract forms and with all prescribed details shown." Millers who have had their contract and invoice forms printed in accordance with the regulations issued on July 22, 1918, may use such contracts and invoices until ex- hausted, conforming in their charges to the minor changes now made. (Rule of Nov. 1, 1917, provided contract for sales of 25 barrels or more of wheat or rye. July 22, 1918, same provision added for sales of 5 tons or more of wheat mill feed. Mixed flour added and changed to 50 barrels as noted here, Dec. 19, 1918.) 582 HISTORY OF PRICES DURING THE WAR. Contract No. CONTRACT FORM PRESCRIBED BY RULE 21. Date__ of _. sell(s), and of buy(s), the following commodities, on the terms and conditions stated below : Timf. of /shipment ) Time ot { deliver y / Destination : Terms of~payment - Draft, through .Bank of- Prices named in this contract are based on (a) effective price schedule, (b) " class of sale," (c) freight charge, and (d) package charge, as specified below : Number packages. Size. Kind. Brand. B ulk price f.o.b. mill. Deli vered price in packages. METHOD OF CALCULATING MAXIMUM DELIVERED FAIR PRICE. [Flour in 98-pound cotton sacks.] Flour per barrel. Feed per ton. (a) Maximum fair price bulk mill as per schedule No. (6) Maximum differential if any on sale of class (c) Freight charge (including freight tax) . (d) Cost of sacks (98- pound cotton for flour) T t a i (The schedules, note, and detailed terms and conditions below may be placed on reverse of contract form if desired.) MAXIMUM PERMISSIBLE MARGINS OVER BASIS ON VARIOUS CLASSES OF SALES. Class of sale. Millsaleto How sold. Flour, per barrel. Feed, per ton. A Anyone Carload lots, bulk mill, cash or draft at- None. None. tached to B/L. B Anyone Mixed carloads of wheat flour, mixed flour, $0.25 $0.50 wheat flour substitutes and feeds . o Wholesale dealers From cars or docks, car lots (not delivered) .25 where flour has been forwarded "on con- signment." j) From cars or docks, less than carload (not .35 delivered) where flour has been forwarded ' ' on consignment. " E Less carloads (except class C or D sales) (not .50 sumer. delivered). F Less carloads 1.20 cept bakers and public eat- ing places). G Wholesale feed dealers Less carloads and 2,000 pounds or over 1.00 H Retail feed dealers Less carloads and 2,000 pounds or over 2.00 l All feed dealers Less than 1 ton 3.00 GOVERNMENT REGULATIONS RELATING TO PRICES. 583 Credit and delivery on flour. Not more than 25 cents per barrel may be charged in addition to .the above margins where flour is delivered to the buyer's door, including all charges for credit, if credit is extended. Where credit is extended without delivery only the actual interest may be added. Brokerage. Brokerage may not be added to the fair-price schedule either on flour or feed. Credit and delivery on feed. Not more than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or warehouse is located will indicate what margin will be considered reasonable. Only one margin over carload basis permitted. Not more than one of the margins over carload basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. TERMS AND CONDITIONS. (2) is sol It is understood and agreed-* (1) Food Administration regulations. That the buyer and seller shall conform, to all regulations promulgated by the United States Food Administration. ) Net weights. That the wheat flour and wheat mill feed covered by this contract ld on the basis of net weights when packed, and the determining factor as to weight shall be a moisture content not in excess of Government allowance. (3) Contract not subject to change. That there are no conditions, representations, or warrants, oral or otherwise, and that there shall be no assignment or cancellation of this contract except as herein stated, and that no agent or representative has authority to modify the printed terms of this contract. (4) Shipments within 60 days. That the above order shall be shipped or delivered as specified within 60 days from the time that the order is confirmed by the seller unless a shorter time is expressly provided. (5) Routing. That the seller shall have the right to route all shipments unless other- wise stated in this contract. (G) Nonextension of time. That there shall be no extension of the time of shipments or delivery under this contract except as herein specified. (7) Buyer's nonfulfillment of contract. That if the buyer shall fail to file with the seller within 30 days of the date of confirmation of this contract shipping instructions permitting the seller to ship at his option within the remaining period of the contract, then the seller may cancel this contract and the buyer shall pay to the seller an entry charge of 25 cents per barrel on tlour and 50 cents per ton on feed, plus or minus the market difference, provided that if such shipping instructions are received before the expiration of 60 days from the date of confirmation of this contract, and prior to any cancellation being sent, the seller's right to cancel shall cease. If the buyer shall refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the otner terms of this agreement, then the seller may cancel this contract, and the buyer shall pay to the seller the entry charge above provided, plus or minus the market difference. In addition thereto the seller may pursue such further remedies as the law may provide. (8) Seller's nonfulfillment of contract. That if the seller shall fail except for the reasons specified in paragraph 9 of this contract to make any shipment or delivery as specified, then the buyer may, at his option, cancel this contract at any time before actual shipment, and the seller shall pay to the buyer the sum jot 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the such further remedies as the law may provide. and 50 cents per ton on feed, plus or minus the market difference. The buyer may pursue (9) Exceptions to seller's responsibilities. That if this contract can not be performed by the seller within the time specified, because of Government contracts not in contem- plation at the time of the contract, or because of fires, strikes, labor difficulties, acts of carriers, or other causes beyond the control of the seller, and if the seller notifies the buyer of such inability, stating the specific cause, as soon as he knows that such inability will prevent performance, and in any event on or before the date of shipment or delivery, the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he exercises such option within 24 hours from the time when he receives notice of the seller's In- ability to perform. If such option is not exercised, the contract time of shipment or delivery shall be extended until a reasonable time after the termination of seller's in- ability is removed, but not to exceed 30 days beyond the original date of shipment or delivery. At the end of such additional 30 days' period the buyer shall again have the right to cancel as above provided, or the contract shall be similarly extended. (10) Buyer's responsibility for final payment. That where buyer specifies the bank through which draft is to be presented and to whom payment is to be made by the buyer, the buyer shall be responsible for final payment to the seller. (11) Package differentials. That both buyer and seller agree to the shipment or de- livery of commodities named in this contract on the basis of the package differentials in effect at date of sale as promulgated by the United States Food Administration. Seller. By - By 584 HISTORY OF PRICES DURING THE WAR. Rule M. S. 22. Uniform invoice prescribed. The wheat miller shall invoice all wheat flour and wheat mill feed, except sales to individual consumers, and except sales of 15 barrels or less of flour and 3 tons or less of mill feed, on an invoice form on the front or back of which shall be printed all information shown in this rule and in the form prescribed, the schedule of " reasonable prices " to be in accordance with schedule which will be furnished any miller. He shall fill out in every such invoice covering flour, the flour charge items ap- pearing under " Method of calculating invoice price," and in every invoice cover- ing feed the feed charge items under such heading. The following items shall appear on front or back of every invoice : REASONABLE PRICE SCHEDULE (BULK MILL). Schedule No. Flour. Bran. Wheat mixed feeds. Middlings, shorts, red-dog. (Here insert figures furnished you by Food Administration.) I I I Soft wheat feeds. The Food Administration will regard as reasonable the sale of wheat mill feeds containing not less than 90 per cent soft winter wheat at a price not more than $2 in excess of the maximum fair-price schedule for other wheat mill feeds ; provided that all shipments or deliveries of such mill feeds are made in packages which are plainly marked " Manufactured from soft winter wheat." NOTE. The schedule of prices indicated above is based upon a determined wheat value as indicated by the Government reasonable price guarantee and a maximum permissible miller's charge. Any price in excess of that based on the schedules printed in this con- tract should be reported to the Federal food administrator for your State. (Issued July 22, 1918; repealed Dec. 19, 1918.) MAXIMUM PERMISSIBLE MARGINS OVER BASIS ON VARIOUS CLASSES OF SALES. Class of sale. Mill sale to How sold. Flour per barrel. Feed per ton. A Anyone Carload lots, bulk mill, cash or draft attached to B/L. Non& None. B Anvone Mixed carloads of wheat flour, mixed flour, $0.25 $0.50 wheat-flour substitutes, and feeds. C Wholesale dealers From cars or docks, car lots (not delivered), .25 where flour has been forwarded "on con- signment." D Wholesale dealers From cars or docks, less than carload (not .35 delivered), where flour has been forwarded "on consignment." E Anyone other than consumer Less carloads (except class C or D sales) (not .50 delivered). F 1.20 cept bakers and public eating places). 1 00 H Less carloads and 2,000 pounds or over 2.00 I All feed dealers Less than 1 ton 3.00 Sales of feed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or warehouse is located will indicate what margin will be considered reasonable. Only one margin over carload lasis permitted. Not more than one of the margins over carload basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. GOVERNMENT REGULATIONS RELATING TO PRICES. 585 Credit and delivery on flour. Not more than 25 cents per barrel may be charged in addition to the above margins where flour is delivered to the buyer's door, including all charges for credit if credit is extended. Where credit is extended without delivery only the actual interest may be added. Brokerage. Brokerage may not be added to the fair price schedule either on flour or feed. Credit and delivery charges on feed. Not more than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. METHOD OF CALCULATING MAXIMUM FAIR INVOICE PRICE. [Flour, basis 98-pound cotton sacks.] Flour per barrel. Feed, per ton. (a) Maximum fair price bulk mill as per Schedule No. . . . (b) Maximum differential, if any, onlsale of class (d) Cost of sacks (98-pound cotton for flour) Total Millers who have had their contract and invoice forms printed in accordance with the regulations issued on July 22, 1918, may use such contracts and invoices until exhausted, conforming in their charges to the minor changes now made. Rule M. S. 23. Change in destination or point of shipment. The wheat miller, in invoicing where change in destination is made at the request of the buyer and such change results in a freight rate other than that specilied in the original contract, shall charge to the buyer any additional freight charge over, and credit to the buyer any lesser freight charge under, that specified in the contract. If the wheat miller makes a change in point of shipment from that originally named in the contract, such change of point of shipment shall not result in change of delivered cost to buyer. In such case the bulk mill price and freight charge shown on the invoice must be identical with similar prices and charges shown in the original contract. (Issued July 22, 1918; repealed Dec. 19, 1918.) Rule M. S. 30 (as amended Nov. 12, 1918). Contracts must provide for delivery in 60 days. The wheat miller shall not make any contract for the sale or delivery of wheat flour, mixed flour, or wheat mill feed for shipment or delivery more than 60 days after the making of such contract, provided that this rule shall not apply to contracts with the Federal, State, county, or municipal Govern- ments or with the Government of any nation at war with Germany. (Rule of Sept. 1, 1917, limited contracts for wheat flour to 30 days. Changed Sept. 1, 1918, to 30 days' supply of wheat flour or mixed flour. Changed Sept. 20, 1918, to include wheat mill feed. Changed to 60 days as noted here Nov. 12, 1918 ; re- pealed Dec. 19, 1918.) III. WHEAT, CORN, OATS, RYE, AND BARLEY. A. SPECIAL LICENSE REGULATIONS GOVERNING OPERATORS OF ELE- VATORS WAREHOUSES, OR OTHER PLACES FOR THE STORAGE OF WHEAT, RYE, CORN, OATS, AND BARLEY, AND DEALERS IN WHEAT, RYE, CORN, OATS, AND BARLEY. Rules 1 to 3 relate to storage only. Rules 4 to 8 relate to dealings in wheat only. Rules 9 to 13 relate to dealings in corn, oats, barley, and rye. Rule 9. Grain to be sold at reasonable advance over cost, hedging- considered. The licensee shall sell corn, oats, rye, and barley at not more than a reasonable advance over the average cost of the stock of such commodity on hand or under the control of the licensee not at that time contracted to be sold. In arriving at the cost thereof he shall take into consideration the gain or loss from any hedg- ing transaction on any recognized grain exchange. (Issued Jan. 28, 1918.) 586 HISTORY OF PRICES DURING THE WAR. B. SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES EN- GAGED IN THE BUSINESS OF MANUFACTURING CORN, OATS, RYE, OR BARLEY PRODUCTS. The manufacture and distribution of the following: corn, oats, rye, and barley products are licensed : Barley flour. Oerealine flakes. Rye flour. Corn oil. Oatmeal. Corn sirup. Rolled oats. Glucose. Hominy. Corn sugar. Corn grits. Products and by-products of shelled Corn meal. corn, ear corn, oats, rye, and barley Corn flour. for use as feed, including grain Starch from corn. screenings. Oat flour. NOTE. Any corn, oats, or barley millers who resell corn, oats, or barley without milling them must have a license to deal in these commodities and are subject to rules governing dealers therein. Any corn, oats, or barley miller buying any products of corn, oats, or barley and reselling them must have a license to deal therein, and are subject to the rules governing jobbers in such commodities. Rule 4. Unreasonable profits prohibited. The licensee shall sell edible prod- ucts of corn, oats, rye, and barley at not more than a reasonable margin over the average cost to him of the corn, oats, rye, or barley from which such edible products are manufactured. In estimating such average cost he shall include all grain in his possession or under his control by contract or other arrangement, but he shall not include any grain which he has contracted to sell or the products of which he has contracted to sell. Provided, that in determining the cost of such grain he shall (1) Add to the average purchase price the loss, and deduct from the average purchase price the gain, resulting from any hedging transactions on an estab- lished grain exchange in which the transaction is finally closed. The loss or gain on such transaction shall be calculated on the average price of all outstanding hedging sales or purchases. (2) He shall deduct from the average purchase price the proceeds from the sale of feed or offal created in the milling operation, or, if not sold, he shall deduct its current market value. Any average once calculated shall be taken as the basis for such averaged grain in all subsequent calculations. He shall keep records in such manner as to show how all averages and selling prices have been determined. (Rule issued Sept. 1, 1917, provided rye or rye products should not be handled on unjust or unreasonable profit. Rule of Nov. 1, 1917, provided rye flour should be sold at not more than reasonable advance over cost. Issued July 20, 1918, as noted here ; repealed Feb. 1, 1919. ) Semiannual profits. The Food Administration will consider a net earning of more than 6 per cent upon the gross sales of any edible products of corn, oats, rye, or barley as shown at the end of any semiannual period, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule 5). This limitation does not modify or abrogate the general principle contained in the Food Admin- istration regulations that a licensee should not earn more than a reasonable net profit on his capital invested, nor does it change in any way the maximum margins which have been prescribed on individual sales. (Issued Sept. 1, 1918.) (New, Nov. 7, 1918.) Semiannual profits of wet corn millers. The Food Administra-. tion will consider a net earning of more than 6 per cent upon the gross sales of all prod- ucts or by-products of corn, whether such products or by-products are sold, pure or mixed with other commodities, by any licensee engaged in the milling of corn for the production of starch or glucose and other products from the manufacture of starch, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule I A 5). This percentage will be calculated for each of the two semi- annual periods making up the licensee's fiscal year. The Federal income and excess-profits taxes may not be deducted as expenses or otherwise, but all other taxes may be consid- ered as expenses. This limitation does not" modify or abrogate the general principle con- tained in the Food Administration regulations that a licensee should not earn more than a reasonable net profit on its capital invested. GOVERNMENT REGULATIONS RELATING TO PRICES. 587 Rule 5 (as amended Nov. 1, 1918). Profits on feeds. The licensee shall not sell hominy feed, hominy meal, hominy chop, gluten feed, oil-cake meal, or other feed by-product of corn, hominy feed, rye feed, or oat feed, produced as a by- product of the manufacture of corn, barley, rye, or oat products at a price per pound in excess of the purchase price per pound of the grain from which it is manufactured. (Rule issued July 20, 1918, applied to hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed. Nov. 1, 1918, commodities added as noted here. Repealed Dec. 17, 1918. ) Rule 8. Package differentials on corn meal. The licensee shall not sell corn meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis of the following differentials : Package differentials. The following package differentials apply to all sales of buck- whe'at flour : Basis of 100 pounds cotton or jute lags. Cents per 100 pounds. 50 pounds cotton 1 over basis__ 10 25 pounds cotton do 20 10 pounds cotton do 50 5 pounds cotton - do 75 50 pounds paper under basis 10 25 pounds paper do 5 10 pounds paper over basis 15 5 pounds paper do 30 3 pounds paper do 45 Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. (Rule issued May 22, 1918. fixed differentials for corn meal, corn grits, hominy. July 20, 1918, corn, barley, and rye flour added and differentials changed as noted here. Repealed Dec. 17, 1918.) C, SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES EN- GAGED IN THE BUSINESS OF MANUFACTURING BUCKWHEAT PRODUCTS. (Effective Nov. 15, 1918.) Rule 1. Unreasonable profits prohibited. The licensee shall sell buckwheat flour at not more than a reasonable margin over the average cost to him of the buckwheat from which such flour is manufactured. In estimating such average cost he shall include all grain in his possession or under his control by contract or other arrangement, but he shall not include any grain which he has contracted to sell or the products of which he has contracted to sell; provided, That in determining the cost of such grain he shall deduct from the average purchase price the proceeds from the sale of feed or offal created in the milling operation ; or if not sold, he shall deduct its current market value. Any average once calculated shall be taken as the basis for such averaged grain in all subsequent calculations. He shall keep records in such manner as to show how all averages and selling prices have been determined. (Repealed Jan. 10, 1919.) NOTE. The Food Administration has determined that the sale of buckwheat flour at a gross margin in excess of $1.25 per 100 pounds bulk product over the cost of the buckwheat is unreasonable and excessive under the foregoing rule. These margins may therefore be regarded as maximum margins, but they do not in any way abrogate or modify the general rule that profits must not be excessive. The Food Administration will further consider a net earning of more than 10 per cent on the first $25,000 of gross sales of buckwheat products and 8 per cent on all gross sales over $25,000 as prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule 5). This limitation does not modify or abrogate the general principle that a licensee should not earn more than a reasonable net profit on capital invested. Differentials on less than car-lot sales. The following additional margins over the $1.25 maximum will be considered reasonable by the Food Administration on less than car-lot sales, but this does not modify in any way the 10 per cent and 8 per cent limitation of net profits. The additional margin should be calculated on car-lot price in sacks : Less than car lots to wholesalers or flour mixers, not more than 4 per cent. (&) Less than car lots to bakers, hotels, or retailers, not to exceed 10 to 12 i per cent in packages of 25 pounds or over ; not to exceed 12 to 15 per cent in packages less than 25 pounds. (Only one of the three foregoing additional margins may be added on. any lot.) 588 HISTORY or PRICES DURING THE WAR. V. RICE. A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH RICE. Rule 1. Maximum margin over cost fixed. The licensee shall not sell rough rice, except for seed, at an advance over the actual purchase price of the par- ticular rice sold in excess of 1 per cent of such purchase price plus the storage charge, insurance, and interest on the investment at the rate of 6 per cent per annum. (Issued Nov. 1, 1917; repealed Jan. 10, 1919.) Rule 2 (as amended Oct. 31, 1918). 'Brokers and commission merchants' charges limited. The licensee in acting as a broker in rough rice, or in receiving rough rice on consignment, shall not charge a commission of more than 1 per cent for selling such rice to any person except for seed purposes. If the licensee performs additional services these shall be included as separate items on the account sales, and a separate charge shall be made therefor, in no case to exceed an additional 1 per cent. (Issued July 29, 1918; amended Oct. 31, 1918; repealed Jan. 10, 1919.) Rule 3. Resales prohibited. The licensee shall not sell rough rice, except for seed, to any person other than a rice miller. (Issued July 29, 1918; repealed Jan. 6, 1919.) Rule 4. Amount of rough rice under control limited to 60 days' supply. The licensee shall not keep on hand or have in possession or under control by con- tract or other arrangement any rough rice, except for seed purposes, in a quan- tity in excess of his reasonable requirements during the period of 60 days. (Issued Nov. 1, 1917, as to " any food commodities " ; repealed Jan. 6, 1919.) Rule 5. Contracts must provide for shipment within 60 days. The licensee shall not make any contract for rough rice for delivery more than 60 days after the making of the contract, except for seed. (Issued Nov. 1, 1917, as to "any food commodities " ; repealed Jan. 6, 1919. ) B. SPECIAL REGULATIONS GOVERNING RICE MILLERS AND MANU- FACTURERS OF RICE FLOUR. Rule 3. Clean rice not to be sold at more than reasonable advance over cost. Any licensee engaged in the business of milling rice shall sell cleaned rice at not more than a reasonable advance over the cost of such rice without regard to the market or replacement value at the time of sale. ( Issued Nov. 1, 1917 ; repealed June 16, 1919.) NOTE. Brokers' commissions. Brokers will be considered by the Food Administration as making an unreasonable and exorbitant charge for negotiating the sale of rice or rice products in any case where the brokerage exceeds (a) Seven cents per 100 pounds on carload orders, except brewer's rice, sold in the following cities : New York ; San Francisco ; Charleston ; Savannah ; Jacksonville, Fla. ; St. Louis ; Chicago ; Kansas City, Mo. ; Galveston and Houston, Tex. (6) Six cents per 100 pounds on any quantity of rice, except brewer's rice, sold in New Orleans. (o) Eight cents per 100 pounds for carload orders, except brewer's rice, sold at any othei point except those designated in (a) and (&). (d) Six cents per 100 pounds on brewer's rice sold at any point and in any quantity. (e) Twenty-five cents per ton on rice bran or rice polish at any point and in any quantity. (/) Six cents per 100 pounds on rice flour sold at any point and in any quantity. Rule 7. Maximum margins governing manufacturers of rice flour. The licensee shall not sell ri^e flour at an advance of more than 75 cents per 10(? pounds over the purchase price of brewer's rice or screenings delivered at the mill. (Issued July 29, 1918; repealed June 16, 1919.) VI. SUGAR. A. SPECIAL REGULATIONS APPLYING TO ALL MANUFACTURERS AND REFINERS OF CANE SUGAR AND BEET SUGAR. Rule 3. Prices shall conform to price list furnished. The manufacturer shall furnish to the United States Food Administrator, Washington, D. C., and deliver to the trade a price list showing his selling price and all selling terms and differentials in force. After such price list or any subsequent price list is issued the manufacturer shall make no sales of suger except at the price, dif- ferentials, and. terms shown in the price list then in force until he has mailed to the United States Food Administrator a new price list showing any change made GOVERNMENT REGULATIONS RELATING TO PRICES. 589 in said price, differentials, or terms and has received the written approval of the United States Food Administrator to any change in differentials and to any addition to the list of new types of sugar or styles of packages: Provided, That every price list and contract to sell sugar shall include a stipulation that in case a change in the United States Food Administration regulations authorizes a higher price than that named in the contract or price list before the arrival of the sugar .at destination, the refiner shall have the right to raise his price to such higher price, and that in case such change requires sales at a lower price than that named in the price list or contract before the arrival of the sugar at destination, the refiner shall be required to reduce his price to such lower price. (Issued Oct. 1, 1917 ; added to July 1, 1918 ; repealed Jan. 26, 1919.) NOTE. The issuance of price lists by manufacturers of beet sugar will not be necessary until August 1, 1918, and after that date it will be dispensed with in cases in which {he manufacturer shall have entered into a proposed voluntary agreement with the United States Food Administrator prescribing other methods of supplying such infor- mation. Rule 4. Maximum brokerage fixed. The manufacturer shall not pay any broker commissions in excess of one-fourth of 1 per cent on the value of raw sugar bought, or in the case of refined or semirefined sugar sold in excess of 5 cents per hundred pounds, excepting, however that a higher commission may be paid for any special service if first approved by the United States Food Ad- ministrator. (Rules issued Oct. 1, 1917; limited brokerage on beet sugar to 5 cents per 100 pounds cane sugar as noted here. Combined June 15, 1918, as noted here; repealed Jan. 26, 1919.) Rule 5. Double brokerage prohibited. The manufacturer shall not allow or pay to any person any brokerage or commission on sugar or its by-products on which he knows a commission or brokerage to have already been paid. (Issued Oct. 1, 1917; repealed Jan. 26, 1919.) B. SPECIAL REGULATIONS APPLYING TO REFINERS OF CANE SUGAR. Rule 2. Sugar to be sold at reasonable advance over cost. The manufacturer shall sell his sugar at not more than a fair and reasonable advance over cost. (Issued Oct. 1, 1917; repealed Jan. 26, 1919.) NOTE. The United States Food Administration will announce from time to time what advance it considers fair. Rule 3. Price of sirups and molasses. The licensee shall not sell the follow- ing products, when manufactured from imported raw cane sugar, at prices to exceed those named below, which are based on the cost of imported raw sugar to the refiner. (Issued June 15, 1918 ; repealed Jan. 26, 1919.) Per gallon, in barrels. Per gallon. in bulk. Refiner's sirups highest grade (fancy filtered). Cents. 55 40 30 23 Cents. 50 35 25 18 Refiner's sirups, medium grade (filtered) Refiner's sirups low grade (unflltered) Blackstrap molasses . . . The prices named are f. o. b. cars at primary markets or port of entry, for point of production if carrying same freight rate as from primary markets, net cash in 10 days without discount, and shall include brokerage and any profit taken by a distributor in tank cars direct from the refinery, but shall not include freight or tank-car charges. NOTE. Any questions in regard to the grading of fancy, medium, and low-grade sirups will be determined by the United States Food Administration committee on sirup valuations. Preference to domestic orders for sirup. The Food Administration urgently requests that in accepting and filling orders for refiners' sirups preference be given domestic customers over exporters. If this is not done voluntarily, it will be necessary to consider regulations limiting the export of such shipments. 590 HISTORY OF PRICES DURING THE WAR. C. SPECIAL REGULATIONS APPLYING TO PRODUCERS OF BEET SUGAR. Rule 2. Unreasonable profit prohibited. The manufacturer shall sell beet sugar, beet molasses, and beet pulp at not more than a fair and reasonable ad- vance over cost. (Issued June 15, 1918 ; repealed Jan. 26, 1919.) NOTE. The United States Food Administration will announce from time to time what advance it considers fair. Until further notice any sales of beet sugar at a price in excess of the selling price, at the same time and place of standard granulated sugar made from cane produced in the United States (including insular territories), will be considered evi- dence of a violation of this rule. Beet molasses. Until further notice any sales of beet molasses at a price in excess of 18 cents a gallon in bulk or 23 cents a gallon in barrels, f. o. b. factory net cash in 10 days without discount wil). be considered evidence of a. violation of this rule. This price shall include brokerage and any profit taken by a distributor in tank cars direct from fac- tory, but shall not include freight or tank-ear charges. Beet pulp. The Food Administration will regard any sales of beet pulp at prices greater than those named below as a violation of the above rule : Beet pulp wet from factory or from silo within first 30 days after manufacture, 80 cents per ton. Beet pulp out of silo after 30 days therein, $1.25 per ton. Dried pulp sacked, f. o. b. factory, $40 per ton. D. SPECIAL LICENSE REGULATIONS APPLYING TO MANUFACTURERS OF REFINED, SEMIREFINED, AND RAW SUGAR PRODUCED FROM SUGAR CANE GROWN ON THE MAINLAND OF THE UNITED STATES AND SOLD FOR DIRECT CONSUMPTION. Kule 2. Unreasonable profits prohibited. The manufacturer shall sell his sugar at not more than a fair and reasonable advance over cost. (Issued July 31, 1918; added to Oct. 21, 1918; repealed Jan. 26, 1919.) NOTB. The United States Food Administration will consider as a violation of the above rule any sale of direct consumption sugar at a price in excess of $9 per 100 pounds f. o. b. seaboard points or points of production carrying the same freight rate as seaboard points, with the customary discounts, terms, and conditions, less the following differentials : Plantation granulated No differential. White clarified __10 cents per hundredweight Off plantation granulated 10 cents per hundredweight. Off white : 15 cents per hundredweight. Choice yellow clarified 15 cents per hundredweight Prime yellow clarified 20 cents per hundredweight. Kettle 20 cents per hundredweight. Off yellow clarified 30 cents per hundredweight. Seconds and thirds (first group) 80 cents per hundredweight. Seconds and thirds (second group) 90 cents per hundredweight. Seconds and thirds (third group) $1 per hundredweight. Seconds and thirds (fourth group) $1.10 per hundredweight. Seconds and thirds (fifth group) $1.20 per hundredweight. The differential on all grades of semirefined direct-consumption sugars not listed above shall be the differential indicated for sugars of equal grade ; or if of an inter- mediate grade, at the differential of the listed grade next below ; and the differential on sugars, the grade and price of which can not be thus determined, shall be fixed by the said sugar committee. The above grades shall be determined with reference to the standard samples thereof as fixed by the New Orleans Sugar and Rice Exchange, with the approval of the United States Food Administration, and now on file with said ex- change. In case of dispute regarding the grade, the final decision shall be made by the Louisiana sugar committee. The Food Administration will further consider as a viola- tion of the above rule any sale of raw sugar at a price delivered at customary Louisiana refining points in excess of $7.28 per 100 pounds for 96 test, and any sale of washed sugar (which is defined as any first sugar above the grade of raw sugar and below the grade of off yellow clarified, and having a color test of not less than 22 Dutch standard) at a price in excess of $7.68 per 100 pounds, with an addition of one-sixteenth cent per pound for every degree or fraction thereof above 96 and a reduction of one-tenth cent per pound for every degree or fraction thereof below 96. GOVERNMENT REGULATIONS RELATING TO PRICES. 591 VII. CANNERS OF PEAS, TOMATOES, CORN, DRIED BEANS, SAL- MON, SARDINES, AND TUNA, AND MANUFACTURERS OF TOMATO CATSUP, TOMATO SOUP, AND OTHER TOMATO PRODUCTS; CON- DENSED, EVAPORATED, OR POWDERED MILK. A. SPECIAL REGULATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS OF CANNING PEAS, CORN, TOMATOES, DRIED BEANS, SALMON, SARDINES, OR TUNA, OR MANUFACTURING TOMATO SOUP, TOMATO CATSUP, OR OTHER TOMATO PRODUCTS. (The following special rules correspond to series B, and in so far as they apply to the canning of peas, corn, tomatoes, dried beans, salmon, or sardines became effective Nov. 1, 1917, unless otherwise noted. They became effective as to tomato catsup and other tomato products other than canned tomatoes on Feb. 28, 1918. They became effective as to canned tuna on June 15, 1918. ) Rule 2. Manufactured products must be sold at not more than reasonable ad- vance over average cost. The licensee shall sell goods manufactured and on hand for not more than a reasonable advance over the average cost of the sea- sou's pack, without regard to the market or replacement value at the time of such sale. ( Issued Nov. 1, 1917, providing for sale at " not more than reasonable advance over cost of such goods"; changed Jan. 28, 1918, to present form; repealed Jan. 10, 1919.) The canned-goods division, under date of September 7, 1918, issued the fol- lowing announcement : TO CANNERS AND DISTRIBUTORS OF LICENSED CANNED VEGETABLES. In order to make clear the attitude of the Food Administration in regard to the rules and regulations governing canners and distributors of licensed canned vegetables, the following announcement is made in regard to canned corn, canned tomatoes, and canned peas: 1. Future sales. Before invoicing goods which were sold for future delivery, canners have been instructed to review their estimate of cost, and if it is determined at the time of shipment that the actual cost is lower than the estimated cost, prices must be revised by the canner so that the margin of profit will not exceed the maximums announced as reasonable. 2. Revision of prices. Revision of prices must occur before invoicing. It would be impracticable to rebate throughout the channels of distribution in order to give the con- 1 sumer the benefit of lower prices ; therefore the canner's invoice price is the final price, and no revision after invoicing will be permitted, with this exception : ' If the direct customer of a canner will agree to accept delivery and withhold the goods from distribution, the canner will be permitted to bill at the time of shipment at the future contract price, pending the final determination of his cost at the end of his pack. In this case the purchaser must make payment on the basis of this invoice and in accord- ance with its terms permitting the canner to make final adjustment,, if any, in the form of a rebate. The purchaser must in such cases await the canner's final price before invoicing these goods. 3. Spot sales. Canners who have made delivery in good faith at future contract prices and later find their costs are lower than anticipated must sell the balance of their pack at such prices as to insure their making no more than the maximum margins on the entire season's output. In these cases purchasers who have already received shipments at the contract price must be given the opportunity of purchasing such surplus at the lower price. This surplus must be offered to such purchasers pro rata up to a quantity equal to their future purchases. 592 HISTOKY OF PRICES DURING THE WAR. The canned foods and distribution division issued the following announcement, under date of October 22, 1918 : TO CANNERS AND DISTRIBUTORS OF LICENSED CANNED VEGETABLES. (Statement supplementing announcement of Sept. 9, 1918 Revision of contract prices.) As many inquiries have been received with reference to the proper construction of the announcement made September 9, 1918, as to the revision of contract prices of canned corn, canned tomatoes, and canned peas, it is deemed advisable- to make the following general statement : Where the packer's profits prove to be greater than those permitted by the rules of the Food Administration, he shall remit the excess to the purchaser, who shall credit the amount received by him upon the average cost of goods of the same grade and size of the same commodity then in his possession or invoiced to him. Attention is called to the fact that the rules permit, but do not require, that goods of different brands be averaged. In a spirit of fairness to the packer, therefore, the pur- chaser should apply the reduction in cost first to goods then in his possession under packers's label, up to an amount in cents per dozen equal to the rebate, before applying the reduction in cost to goods under other labels. If the purchaser's stock of such goods is so small as to make this impracticable or the price ridiculous, he shall apply to the wholesale section of the Food Administration for instructions. The packer shall make to the canned foods division of the Food Administration a state- ment giving the names of the purchasers to whom such payments are made, the amount of each payment, and stating the grade and size of the canned goods on account of which each payment is made. The purchaser shall also make a written statement to the wholesale section of the Food Administration showing the amounts so received, from whom received, and how the same were credited. The wholesaler will not be permitted to make any rebate to the retailer on the price of any goods already delivered to the retailer. In this connection attention is called to the fact that the wholesaler can not sell at a price which will enable him to realize more' than the prescribed margin of profit over the average cost, reduced as above provided for. The average cost is to be determined in the manner required by the rules and regulations. (Rules 6 to 11 apply to the canning of fresh vegetables and fish only.) Rule 6. Quotations or sales before February 1 prohibited. The licensee shall not quote for future packing or delivery or sell any canned peas, canned corn, canned tomatoes, tomato soup, tomato catsup, or other tomato products, canned salmon, canned sardines, or canned tuna before February 1 of the year in which such products are to be canned : Provided, That this rule shall not apply to sales to the Government of the United States. (Issued Nov. 1, 1917 ; repealed Jan. 10, 1919.) NOTE. This rule corresponds to special rule 1, series B, governing canners. It was amended to its present form January 28, 1918. " Shall not quote for future packing or delivery or sell " includes acceptance of orders subject to approval of price when named. This rule prohibits. the acceptance of conditional orders or commitments of every kind. Rule 9. Licensee must not buy commodities already sold. No licensee shall buy or contract to buy any of the vegetables or fish required for the above- mentioned products if he has reason to believe that the seller has already con- tracted to sell the said materials to other persons. In buying vegetables or fish for such products he shall require the seller to state in writing, in the contract or otherwise, that he has not contracted to sell said vegetables or fish to others. (Issued Nov. 1, 1917; repealed Dec. 3, 1918.) NOTE. This rule corresponds to special rule 5, series B, governing canners. The canned goods division issued the following announcement on November 1, 1918: The Food Administration has been able to arrange for a sufficient quantity of tin plate to permit the packing of beans. Permission is herewith granted to canners of beans to pack during the months of November, December, and January a total quantity not in excess of a normal pack for these three months. Canners may use up all odd-sized tins now on hand, but additional purchases of tins smaller than No. 2 size will not be permitted. It is still necessary for all shippers selling beans to canners to secure permits before making sales. Canners may not, however, contract for more than a three months' supply of cans or beans. GOVERNMENT REGULATIONS RELATING TO PRICES. ESTABLISHED PRICES CANNED GOODS DIVISION. 593 The canned goods division has prepared the following, which shows what has been done in establishing prices on commodities' under its supervision : CANNED SALMON. Conferences were held with the State food administrators and fishermen on the coast and maximum prices were adopted which were as follows : RAW FISH. Alaska section. Kings (each). Reds (per fish). Cohoes (each). Dogs (each). Pinks (each). Bristol Bay $0 40 $0.07 SO. 07 $0.04 $0. 02 Hcrendeen Bay . 25 .12* .121 .08 .04 Central Alaska 50 .12 .12 .05 .04 Yukutat: 40 Under 15 pounds 15 .12 .12 OH Southeast \laska i 09 .32 .32 .09 .06 Per pound. Oregon : Columbia River Chums _ Chinooks__. Then Silversides Steelheads Rogue River All grades Chinooks _ Cents. J 1 3J 0! =r Washington coast streams. Prices per pound. Chinooks. Cohoes. Chums. Cents. 6* 9 1 Cents. 6i flat (per dozen). Reds $2.35 $2.50 $1.65 2.25 2.40 1.65 Pinks 1.65 1.80 1.10 Chums 1.60 1.75 1.10 *To Sept. 10. 2 To Sept. 20. 3 80 cents per box to be paid for hauling to Noclips, including return of empty boxes. 125547 20 38 594 HISTORY OF PRICES DURING THE WAR. Since the Alaska prices were established the following maximum prices have been estab- lished for salmon caught in Oregon waters and salmon caught in Washington waters : COLUMBIA RIVER AND ORECfON COAST STREAMS. No. 1 No. 1 Halves tails (per flats (per (per dozen). dozen). dozen). Fancy spring chinooks . $3.15 2.75 $3.25 2.85 $2.00 1.75 Standard spring and No. 1 fall chinooks . ... Blue backs 2.00 No. 2 fall chinooks 2.30 2.40 1.50 Silver sides 2.40 2.50 1.60 No 3 chinooks and chums 1.75 1.85 1.10 PUGET SOUND AND WASHINGTON COAST STREAMS. 1 Tails (per dozen). Flats (per dozen). Halves (per dozen). Fancy springs or chinooks $3.15 $3.25 $2.00 Standard springs or chinooks . . ' 2.75 2.85 1.75 Cohoes 2.40 2.50 1.60 Chums ... 1.75 1.85 1.10 CANNED SARDINES. Eastern. The Maine State food administrator early in this year called a conference of the fishermen heavily interested, and a price of $25 per hogshead for raw fish was estab- lished as the maximum price to be paid by the packers. A little later a committee representing a very large proportion of the Maine sardine packers appeared before Mr. Munn and a voluntary maximum price was established of $6.50 per case for one-quarter oil canned sardine. Later the Canadian authorities adopted the American prices as maximum. Western. The sardine situation has recently been handled in California by Mr. Munn in conferences held with the fishermen and packers, and the basis is as follows : Maximum prices for raw sardines : Per ton. Under 7J inches $30 Over 7| inches 15 Based on these raw-fish prices, the following maximum canned sardine prices were approved : Tomato (per case). Oil (per case). Quarter round $3.25 $3. 35 One-half round 4.00 4.15 Ones round 5.75 6.00 7 25 One-half oval 5.50 CANNED TUNA. The tuna situation was handled by conferences with the fishermen at which the maxi- mum prices for raw tuna were established as follows : % One hundred and ten dollars per ton for Albacore and blue-fin tuna, and $100 per ton. for all other tuna. Later the canners were gotten together and the prices on canned tuna were established as follows : Per doz. 48/1's , $3. 37$ 48/i's J 1.90 48/1's 1.25 GOVERNMENT REGULATIONS RELATING TO PRICES. 595 CANNED CORN,, PEAS, AND TOMATOES. It has been impossible to reach the grower. The canner, however, has been on the basis of maximum margins of profit as announced in Bulletin No. 38, issued by the canned goods division on Mny 1, 191S, which reads as follows: Based on the views of the Federal Trade Commission of reasonable profit and the Food Administration's valuation of reasonable crop hazard insurance, the following maximum margins in cents per dozen cans are announced for licensed eanners between cost and selling price. Excess of these margins will be considered unreasonable under the food-control act. Cost shall not include income and excess profits taxes, interest on investment, interest on long-term notes, or crop hazards. Corn (per dozen cans) : Cents. No. 2, standard 19 No. 2, extra standard 22 No. 2, fancy 30 Peas (per dozen cans) : No. 2, substandard (average all sizes) 15 No. 2, standard (average all sizes) 22 No. 2, fancy (average all sizes) 31 NOTE. Greater margins on smaller sizes of peas, offsetting less margins on larger sizes, will be allowed, provided the average does not exceed margin announced. Tomatoes (per dozen cans) : Cents. No. 2, standard 18 No. 2J, standard 22 No. 3, standard _L 27 No. 3, fancy 31 No. 10, standard 90 No. 10, fancy , 100 NOTE. From the margins on standard tomatoes a deduction of 5 cents per dozen on Nos. 2, 2i, 3, and of 15 cents per dozen on No. 10 shall be made for the substandard grade. While profits shall be reasonable, the Food Administration adopts the general principle, applicable to all important producing agencies, that profits must be sufficient to encourage production. These margins are believed to be ample to provide a fair stimulative profit to the ean- ners, with due consideration to labor difficulties, crop hazards, and the peculiar uncer- tainties incident to this industry. We emphasize the fact that the margins are maximum margins and must be considered as euides only. They do not change the rules. This industry, like all others subject to license, should be guided by the general prin- ciple that what would have been a satisfactory profit in the prewar period on an even market, under freely competitive conditions, should be the standard to-day, and no maximum named as a guide should be accepted as an invitation to exceed this former standard. The practice of selling the pack, or a large proportion of it, in advance of its produc- tion is an outgrowth of conditions existing in this industry. It is a safeguard, both for farmers and for eanners, and the practice, properly conducted in accordance with the rules and regulations of the Food Administration, tends strongly to remove the dangerous speculative features otherwise incident to the business. B. SPECIAL REGULATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS OF MANUFACTURING CONDENSED, EVAPORATED, OR POWDERED MILK. Rule 2. Goods must be sold for not more than reasonable advance over average cost. The licensee shall sell condensed, evaporated, and powdered milk for not more than a reasonable advance over the average cost of the season's pack without regard to the market or replacement value at the time of such sale. (Issued Nov. 1. 1917, providing for sale at " not more than reasonable advance over cost of such goods." Changed to present form Jan. 28,. 1918 ; repealed Jan. 10, 1919.) VIII. SPECIAL REGULATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS OF PREPARING OR PACKING DRIED PEACHES, DRIED APPLES, DRIED PRUNES, OR DRIED RAISINS. Rule 2. New-crop fruits not to be bought or sold before July 15. The licensee, prior to July 15 of the year in which new-crop fruits are to be grown and packed shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commitment for sale of new-crop fruits not available for spot delivery. A commitment shall include all tentative or conditional orders 596 HISTORY OF PRICES DURING THE WAR. whether definite prices are named or not. (Rule issued Mar. 30, 1918, forbade sales before May 1. Changed to June 1 on Apr. 30, 1918; changed to July 15 on May 24, 1918; repealed Jan. 10, 1919.) Rule 4. Dried fruits must be sold at not more than a reasonable advance over cost. The licensee shall sell his products for not more than a reasonable ad- vance over the cost of said products and without regard to market or replace- ment value at the time of said sale. (Issued Mar. 30, 1918; repealed Jan. 10, 1919. ) DRIED FRUITS. Rule VIII-A-2. The canned goods and dried fruits division has prepared the following, which shows what has been done in establishing prices on dried fruits. The dried fruit situation has been handled largely by Mr. Merritt, State food administrator for California, and his conferees. In each instance a large majority of the representative growers have been brought together and voluntary agreements have been reached covering the maximum prices. The dried fruit packers were then handled in the same way and adopted a maximum of profit of 4 per cent. The prices for dried fruits in California are as follows : PEACHES. Maximum price to grower, 11 cents, which includes 8 per cent gain in dip already agreed upon. Maximum price to trade. Cents. Choice yellow, bulk basis 111 Fancy yellow, bulk basis 12J Choice muir, bulk basis 111 Fancy muir, bulk basis 121 (Add 1 cent per pound for 50's and 1J cents for 25's.) RAISINS. Huijiti;/ j>rk-c to f/roira: Cents. Muscat ' 5J Selling price to trade. Fancy seeded $0.0962 Choice seeded , 09125 Bulk seeded J . 08 Loose 2 crown x . 075 Loose 3 crown x . 08 PRUNES. Cents. 40-50 bulk basis 10 50-60 bulk basis 9 70-80 bulk basis L__ 81 The Oregon situation was handled by Mr. Ayer. The Oregon prices on prunes are as follows : Cents. 40-50 bulk basis 10 50-60 bulk basis ,. 9 60-70 bulk basis 9 70-80 bulk basis 8| DRIED APPLES. While dried apples are licensed, it has. been found impossible to reach any general vol- untary agreement with the growers owing to the peculiar production feature, in that they are produced practically everywhere. We are, however, attempting to regulate the prof- its of packers on the 4 per cent maximum basis. 1 Per Ib. in 25-lb. boxes. GOVERNMENT REGULATIONS RELATING TO PRICES. 597 Rule VIII-A-2 is not to be construed as prohibiting the making of a contract whereby a packer or association agrees with a grower to market the grower's crop at the price pre- vailing when the crop is marketed ; nor is the rule to be construed as affecting any such contracts that are already outstanding. (Opinion A-106, July 22, 1918.) Rule 5. Price lists and circulars to be mailed Food Administration. Licensees quoting dried fruits for shipment in carload lots shall mail promptly to the dried-fruit division of the United States Pood Administration, Washington, D. C., all price lists and circulars relating to prices on dried peaches, apples, prunes, or raisins. (Issued Mar. 30, 1918; repealed Dec. 3, 1918.) NOTE. Rules 2, 3, 4, and 5 correspond to special rules 1, 2, 3, and 4, series B, supple- ment 16, effective March 30, 1918. Rules 4 and 5 were amended to their present form May 24, 1918. IX. DEALERS AND BROKERS IN, AND IMPORTERS OF CERTAIN VEGETABLE OILS AND THEIR RAW MATERIALS. A. SPECIAL REGULATIONS GOVERNING LICENSEES DEALING IN COT- TON SEED AND PEANUTS, BROKERS IN SUCH COMMODITIES, AND COTTON GINNERS. Rule 3. Licensee must not pay higher prices for cotton seed * or peanuts 2 in one market than in another. No licensee shall pay or offer to pay higher prices for cotton seed or peanuts in one market than he pays or offers to pay for cotton seed or peanuts of the same quality in any other market: Provided, however, That when zones are established as mentioned in the note to Rule B-8, he may pay varying prices in the several zones, but must pay the same price at all points in the same zone on the same day for cotton seed or peanuts of the same quality. (Issued July 1, 1918.) Rule 5. Cotton seed 1 or peanuts 2 to be sold at not more than reasonable advance over cost. The licensee shall sell cotton seed and peanuts at not more than a reasonable advance over the actual cost to him of the particular cotton seed or peanuts, sold without regard to the market or replacement value at the time of sale. (Issued Nov. 1, 1917, making exception for licensees who could not keep separate the purchase and manufacturing costs of particular com- modities, and forbidding averaging costs, etc., of separate mills operated by a licensee.) NOTE. Effective July 1, 1918, and until further notice the United States Food Ad- ministration will regard any sale of cotton seed at advances greater than those indicated below over the prices paid for such cotton seed as a violation of the above rule : (1) Purchase and sale of cotton seed where the licensee provides the necessary facilities and capital, and bears the expenses and risks incident to the business, $3 per ton (including delivery and loading of seed into cars at mills). (2) Purchase and sale of cotton seed where the licensee operates as principal but his capital is furnished by another, and his expenses and business risks and facilities, in whole or in part, are borne by another, or where the licensee operates as agent under his own license or under the license of another, $1.50 for each ton of cotton seed negotiated by him. The remainder of the margin as provided for in paragraph 1 shall be retained by the party or parties furnishing the capital and facilities and assuming the risks and expenses, in whole or in part. (3) Any margin or commission in excess of 25 cents per ton to a licensee operating either as broker or as dealer who buys and sells cotton seed in car lots will be regarded as unreasonable. Any commission must be paid by either the seller or final buyer out of his spread or margin, and if any dealer in car lots takes a margin for such handling the person who buys from him shall deduct such margin from his own permissible spread or margin unless it has already been deducted by the original seller. Rule 8. Unreasonable charges by ginners prohibited. No licensee owning, controlling, or operating a ginnery shall make any unreasonable charge for the service of cleaning seed cotton or separating the seed from the lint. (Issued Nov. 1, 1917 ; repealed May 31, 1919.) NOTE. The United States Food Administration may determine and announce a maxi- mum charge that may be made by licensees for performing the service known as ginning. Ginners shall keep a correct record showing the name and address of each party for whom they gin cotton, the amount of cotton ginned in each case, and the actual charge made for each service. They must also keep a careful record showing the name and address of each party from whom they purchased cotton seed, together with the quantity and price paid for the same. They must at all times be prepared to furnish detailed in- formation to the United States Food Administration. 1 Repealed May 31, 1919. 2 Repealed Nov. 13, 1918. 598 HISTORY OF PRICES DURING THE WAR. The charge for ginning should be the same whether or not the cotton or the cotton seed is purchased by the ginner. Ginners should gin as rapidly as possible consistent with good work all dry seed cotton tendered them, and upon demand they should return to the owner the cotton and cotton seed ginned by them. If cotton seed is purchased by the ginner, he becomes a dealer therein, and must be guided by the margins indicated under Rule 5, above. Kule 9. Maximum buying margin below carload market price prescribed. A licensee who buys cotton seed in less than carload quantities for sale or ship- ment in carload quantities shall buy at a gross margin below the carload market price at railroad points, not to exceed $3 per ton. The cost of hauling from distant points to the railroad may also be deducted. (Rule issued Dec. 7, 1917, provided " No licensee shall sell any cotton seed in car lots at more than $2 per ton, exclusive of customary loading charge, over price paid for said cotton seed." Rule governing 1918 crop issued July 1, 1918, given here ; repealed May 31, 1919.) B. SPECIAL REGULATIONS GOVERNING LICENSEES CRUSHING COT- TON SEED, PEANUTS, SOYA BEANS, PALM KERNELS, OR COPRA, AND DEALERS AND BROKERS IN THE RESULTING OILS. Rule 8. Commodities must be sold at not more than reasonable advance over cost. The licensee shall sell the products of cotton seed, peanuts, and soya beans at not more than a reasonable advance over the average cost to the licensee of the cotton seed, peanuts, or soya beans from which such products are manufactured. A licensee who operates one or more cotton ginneries or crushing mills shall keep separate accounts and make "reports to show separately the operations of each ; for the purpose of this rule each cotton ginnery or crushing mill shall be considered as a unit and the licensee shall not be permitted to average any costs, profits, or, losses between such units. NOTE. The United States Food Administration will divide the cotton-producing terri- to/y of the United States into zones, and it will determine and announce basic yields of oil, meal, linters, and hulls from cotton seed for each zone, and differentials or spreads to represent the difference between the price paid for cotton seed and the total amount any licensee engaged in the business of crushing cotton seed may receive from the sale of the manufactured products of the cotton seed. The licensee will be permitted to sell all manufactured products in excess of the basic yields without reference to the established margin, provided that the price charged for such excess products shall not exceed the average price that will be indicated for the other products in said yield. (Issued Nov. 1, 1917; repealed May 31, 1919.) D. SPECIAL REGULATIONS GOVERNING REFINERS OF COTTONSEED OIL, PEANUT OIL, SOYA-BEAN OIL, PALM-KERNEL OIL, PALM OIL, AND COPRA OIL, AND DEALERS AND BROKERS IN SUCH REFINED OIL. Rule 5. Domestic oil to be sold at reasonable advance over cost. The licensee shall sell cottonseed oil, peanut oil manufactured from domestic peanuts, and soya-bean oil manufactured from domestic soya beans at not more than a reasonable advance over the average cost to licensee of the crude oil from which such oil was relined. 1 (The licensee may consider all refining plants operated by or controlled by such licensees as a single unit. Licensees who control mills crushing oleaginous materials must credit all raw materials obtained from such crushing mills at the same price at which, they could purchase the same products in the open market at the time of transfer.) (Issued Jan. 28, 1918; repealed May 31, 1919.) NOTE. The United States Food Administration will indicate from time to time what margins it considers fair. E. MANUFACTURERS AND DEALERS IN LARD SUBSTITUTES. (Issued Jan. 28, 1918; repealed May 31, 1919.) Rule 2. Licensees engaged in the manufacture and distribution of lard substi- tutes may consider all plants for the manufacture of lard substitutes operated by, belonging to, or controlled by the licensee as one unit for the purpose of deter- mining costs and profits. Rule 3. Licensees engaged in the manufacture of lard substitutes who own or control mills crushing cotton seed, peanuts, or other oleaginous materials must 1 Issued July 1, 1918 ; repealed as to all except " cotton seed " Feb. 1, 1919. GOVERNMENT REGULATIONS RELATING TO PRICES. 599 credit all raw material obtained from such crushing mills at the same price at which they could purchase the same products in the open market at the time of transfer. Rule 4. Licensees engaged in the manufacture of lard substitutes who own or control plants for the refining of vegetable oils must credit the refined oil received from said refining plants at the same price at which they could obtain the same product in the open market at the time of the transfer. Rule 5. Every licensee who owns or controls a plant for the manufacturing of lard substitutes shall be subject to such differentials and spreads for the cost of manufacture of crude material into a finished product as may from time to time be determined and announced by the United States Pood Administrator to return a fair profit to the licensee. Rule 6. No manufacturer engaged in the manufacture of lard substitutes shall, without the written permission of the United States Food Administrator, sell or offer to sell lard substitutes at higher prices in one market than he is selling or offering to sell the same quality or brand in any other market on the same day. The price for sales in lots of 5,000 pounds or more, tierce basis, for delivery at one time, net after deducting all discounts and allowances, shall be taken as the basis in making comparisons for the purpose of this rule. In comparing with this the selling price of lots of less than 5,000 pounds, tierce basis, for delivery at one time, 1 cents per pound will be deducted from the price actually charged. In comparing the price of package and case goods, stated differentials will be determined by the United States Food Administrator from time to time for all manufacturers of lard substitutes. (Issued Mar. 23, 1918.) X. SPECIAL REGULATIONS GOVERNING MANUFACTURERS OF OLEOMARGARINE AND OTHER BUTTER SUBSTITUTES. Rule 1 (effective Dec. 4, 1918). Maximum margins for manufacturers. The manufacturer shall not sell oleomargarine or other butter substitutes at a greater average advance over the cost of the raw material (in any period of two months beginning Dec. 1) than the sum of his actual manufacturing cost plus a profit not to exceed 10 per cent of the selling price to the wholesale trade. In no case shall the manufacturing cost be figured in excess of $6.30 per hundred pounds. (Repealed Jan. 26, 1919.) Manufacturing costs shall include : 1. Labor. 2. Selling expenses. 3. Advertising. 4. Administrative expenses. 5. Depreciation. 6. Taxes, not including excess-profits tax and income tax. 7. Miscellaneous manufacturing expenses, not including interest charges. The cost of raw materials shall mean the cost, delivered, at plant of following : (a) Oils. (6) Milk. (c) Salt. (d) Package. (e) Color. (f) Stamps. (g) Cartons and paper. (h) Supplies. NOTEJ.^ The Food Administration does not recognize $6.30 per hundred pounds as a normal, reasonable cost of manufacture, nor 10 per cent net profit as a normal, reasonable net profit. These are maximum margins to cover the most expensive legitimate methods of operation. XL WHOLESALERS, JOBBERS, IMPORTERS, RETAILERS. A SPECIAL RULES APPLYING TO LICENSED NONPERISHABLE FOOD COMMODITIES. Rule 5 (as amended Dec. 31, 1918). Must sell at reasonable advance over average purchase price. The licensee, without regard to market or replace- ment value at the time of such sale, shall sell the following commodities at not more than a reasonable advance over the average purchase price of all lots of 600 HISTORY OF PRICES DURING THE WAR. the same grade and size of the same commodity in Iris possession or invoiced to him not contracted to be sold : Self-rising flour. ' Dried raisins. 1 Cleaned rice. * Dried beans. 1 Rice flour. 1 Dried peas. 1 Oleomargarine. J Rye flour. 1 Lard. * Barley flour. 1 Lard substitutes. * Oatmeal. *Oleo oil. J Rolled oats. 1 Cooking fats. 1 Corn grits. 1 Condensed, evaporated, or powdered * Corn meal. milk. 1 Hominy. 1 Canned or cured beef, pork, or mut- 1 Corn flour. ton. , a Corn starch. 1 Canned peas. * Corn oil. 1 Canned dried beans. * Corn sirup. 1 Canned tomatoes. * Glucose. 1 Canned corn. * Sirups. 1 Canned salmon. * Molasses. 1 Canned sardines. Maple sugar. 1 Dried prunes. Maple compounds. 1 Dried apples. Clarified, plantation- washed, and 1 Dried peaches. open-kettle sugars. The licensee shall keep a record of the manner in which such average has been arrived at, and he shall take as the cost of all stock remaining on hand from lots already averaged the average cost previously arrived at. In selling commodities not yet invoiced to him he shall sell at not more than a reasonable advance over the actual purchase price to him of all lots of the same grade and size of the same commodity purchased by him but not yet invoiced to him. (This rule corresponds to special rules 1 and 2, series B, governing -wholesalers and retailers. See special rules H, following, for green coffee.) EXPLANATION. NOTE. This rule prohibits speculation in licensed commodities. The following is an example of the method by which the average cost shall be deter- mined, taking flour as an example : Cost per Barrels, barrel. Total. Lot A__ 20 $10. 50 $210. 00 Lot B 30 11. 00 330. 00 Lot C 25 10. 75 268. 75 75 808. 75 Average cost per barrel 10. 78 Reasonable advance . 50 11. 28 Suppose that 35 barrels are then sold at $11.28 and 15 barrels purchased at $11. The calculation for further sales will then be made as follows : Cost per Barrels, barrel. Total. Barrels remaining on hand from lot previously averaged 40 $10. 78 $431. 20 Lot D (new purchase) 15 11.00 165.00 55 596. 20 Average cost per barrel 10.84 Reasonable advance . 50 Sellng price 11.34 1 Rule providing for sale of these commodities 4< at not more than reasonable advance over actual purchase price of particular goods sold," issued Nov. 1, 1917. Wheat flour and mixed flour and other commodities listed in rule issued June 15, 1918. Repealed as to wheat flour and mixed flour Dec. 31, 1918. Repealed as to all commodities, except lard and lard substitutes made from cotton seed, Jan. 10, 1919. Repealed as to lard Apr. 1, 1919. Repealed May 31, 1919, as to lard substitutes made from cotton seed. GOVERNMENT REGULATIONS RELATING TO PRICES. 601 Neither the Food Administration nor any other branch of the Government has pre- scribed uniform cost accounting- systems for either wholesale or retail food distributors. The Government has not, therefore, indicated how the licensee, in dealing with a com- modity covered by the reasonable profit rule, shall dispose of cartage, interest, or other special charges, but it does expressly forbid the employment of such charges with the pur- pose, or with the effect, of increasing the licensee's profit above his own reasonable pre- war level. The licensee shall not, in calculating cost, include accruals or payments of Federal in- come, corporation or excess profits taxes. A wholesaler who also does a retail business is not required to sell to both classes of customers at the same price ; and a merchant, if he desires, may make prices in the case of cash sales, or sales upon which he does not have to perform the delivery service, differ- ent from his- prices when credit is given or delivery made. The test is, Are the commodi- ties being sold at not more than a reasonable advance over the average price. Regarding special discounts to favored customers, see General License Regulations No. I, rule 5, relating to discriminatory charges. If the consumer does not get the benefit of the discount and the retailer retains it in addition to his allowed profit, then the retailer is selling at, an unreasonable advance. The giving of special discounts to favored cus- tomers! by wholesalers at least tends to cause the wholesaler to sell to other customers at a greater advance than he would if no special discounts to favored customers were given. The United States Food Administration intends to scrutinize all transactions in- volving special discounts and rebates of every kind given by licensees. Under Rule XI-A-5 the licensee is not required to average the purchase price of commodities of different brands that are of a proprietary nature, even though the grade and size are the same. He may average, however, if he desires. (Opinion A-108, July 23, 1918.) A wholesaler or jobber in the commodities mentioned \a rule A-5, Special License Regulations XI, who conducts branches in one or more localities should calculate his costs according to each locality and sell at not more than the maximum margins over delivered costs in each particular vicinity. (Opinion A-117, Aug. 26, 1918.) The Food Administration has determined, after careful consideration, that it will at present issue no regulations prohibiting the sale of foodstuffs at less than cost. Action will be taken, however, in cases where wholesalers or retailers are selling licensed foods at less than their purchase price plus railroad transporta- tion charges, with the result of stimulating the consumption of such foodstuffs and increasing the margin which the dealer can charge for other goods. Each case will be considered on its individual merits. It is considered most inadvis- able to attempt to limit sales at less than " cost," as ordinarily defined in busi- ness, because of the difficulty of calculating overhead expense per unit. The purchase price forms a simple test where the other elements of stimulating con- sumption and increasing profits in other licensed foodstuffs are present. It has been pointed out that there are many instances in which dealers may be compelled by the condition of the market or of the goods to sell at considerably less than cost, especially in the case of perishables, and the Food Administration does not regard the practice in such case as unfair (Oct. 10, 1918). MAXIMUM MARGINS ON SALES BY WHOLESALERS TO RETAILERS. Commodities. Maximum margins. Sugar__ 15-35 cents per 100 pounds. Wheat flour. _ 50-75 cents per barrel. Lard, lard substitutes, bulk (packages of 50 pounds or over) l$-2 cents per pound. Standard hams, bacon 1-2 cents per pound. All flours (except wheat) 1 Lard and lard substitutes, in packages (less than 50 pounds) __ Condensed, evaporated milk -..f 8 - per cent " Blackstrap molasses in barrels J Rice, hominy, grits, oatmeal, rolled oats, corn meal, beans, in bulk (packages of 25 pounds or over) 10-12J per cent. Rice, corn meal, hominy, grits, oatmeal, self-rising and pre- ' pared flour, and rolled oats, all in packages Corn oil, corn sirup, sugarhouse sirup, mixed sugar and corn sirup, and cottonseed oil U*>-15 uer cent Standard and extra standard licensed canned peas, tomatoes, ' corn, and canned dried beans, and pink, chum, and red sal- mon, and all domestic sardines All licensed dried prunes, apples, peaches, raisins NOTE. Percentages should be figm-ed on the wholesaler's selling price. The maximum margin on sugar has been increased to 35 cents per 100 pounds for wholesale grocers and food jobbers who actually perform, as to substantially all the sugar handled by them, the functions of buying, warehousing, selling, and distributing. But this maximum margin is not allowed where such service is not performed. Margins for sugar dealers 602 HISTORY OF PRICES DURING THE WAR. are not changed. Rye flour has been transferred to the 8-10 per cent classification. Prepared flours, sugarhouse sirup, and mixed sugar and corn sirup, have been placed in the 12-15 per cent classification. All domestic sardines and all grades of licensed dried fruits are now included within the 12-15 per cent classification. Any gross margins above delivered cost upon sales in unbroken cases to retailers in excess of the foregoing margins will be regarded as prima facie evidence of a violation of the statute and the regulations. In case the licensee breaks original packages he may add to his cost the actual cost of such repacking, in no case to exceed 5 per cent ^ It should be noted that the above differentials are maximum margins, which must not be exceeded by the wholesaler. Licensed commodities not covered by the above margins shall not be sold at a margin above delivered cost to the wholesaler average purchase price plus freight to public railway terminal in jobber's city or town of the particular goods sold which will yield any greater profit than the dealer customarily enjoyed on the same commodity in the prewar period on an even market under freely competitive conditions. High margins, even if customary during prewar period, are not justifiable now. Un- reasonable margins are not excused by lower margins on other transactions in the same commodity or in other commodities. The margins named are ample to include all ordinary carrying charges. If general con- ditions should later necessitate the carrying of goods for a longer period than usual, further consideration will be given to this feature. In determining the cost of dried fruit, the licensee may add to his purchase price not more than one-eighth cent per pound per month on dried fruit, actually carried in cold storage between May 1 and November 1, not to exceed three-fourths cent per pound, on any particular lot of goods. Any change from the prewar custom in cash discount terms, cartage, or other charges, which tends to or results in increasing the margin of profit allowed, will be dealt with as an unfair practice. WHAT RESALES ARE JUSTIFIABLE. (The following applies to all licenses governed by the rules contained in this pamphlet.) General rule 6 reads as follows : " The licensee, in selling food commodities, shall keep such commodities moving to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without reasonable justifi- cation, especially if tending to result in a higher market price to the retailer or con- sumer, will be dealt with as an unfair practice." Service. Any transactions that savor of trading in which a profit accrues to the dealer without corresponding service, are clear violations of the rule and will subject the offender to revocation of his license and to such other penalty as the law provides. A resale that is in keeping with one of the following principles will be considered lawful under general rule 6 : A. Continuous service. The seller may customarily and continuously serve in less than carload lots wholesale grocers who are serving retail grocers, but who are unable for some sufficient and legitimate reason to purchase direct from the source of supply. B. Carload buying. A wholesaler or jobber may enjoy the benefit of carload rates from distant points and sell to smaller wholesale grocers who are unable to buy the commodity in carload lots. C. Warehousing. A wholesaler or jobber may continuously and customarily furnish cold storage or other warehousing service and sell to wholesale grocers who have not adequate facilities of that character. D. Surplus stocks. A wholesaler may dispose of surplus stocks bought, not for speculation, but in good faith for the reasonably anticipated requirements of his busi- ness under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have not been warehoused by such wholesaler will be regarded as prima facie evidence that they were not bought in good faith. Only one resale permitted. The distributor who purchases from a wholesaler or jobber must not, under any circumstances, resell the goods in question to a wholesaler or jobber, but must distribute directly to retailers or consumers. MAXIMUM MARGINS ON RESALES JUSTIFIED BY PERFORMANCE OF ACTUAL SERVICE SPECIFIED IN A, B, C, AND D, ABOVE. 1. Seller's margins. The margin of profit enjoyed by the wholesaler or jobber selling to another wholesaler or jobber shall in no case exceed one-half of the maximum margin named for the particular commodity in the wholesaler's list above. These margins shall include all cartage, storage, interest, and other charges. 2. Purchaser's margins. The distributor who has thus purchased within the trade shall sell the goods so purchased at not more than the lower margin indicated in the list above. MAXIMUM MARGIN ON OTHER RESALES. 3. On all other resales, such as accommodation sales, commonly known in the trade as " pick-ups," only one wholesale profit (as indicated by the above maximum margins) is allowed, but this one allowable profit may be divided between the wholesalers as they determine. GOVERNMENT REGULATIONS RELATING TO PRICES. 603 MARGINS FOR CLEAN RICE DEALERS IN SELLING TO WHOLESALERS. (As amended Nov. 25, 1918.) Where a rice dealer's business was established prior to August 10, 1917, the Food Administration will permit one such dealer to handle rice between the miller and the wholesale grocer, but no resale of rice between such dealers will be permitted. Except in the case of such established business, it is considered that rice should be on the same basis as other manufactured cereal products so far as resale within the trade is concerned. All sales of rice made through any distributing company in which the mill is interested must be made at the original mill price except as specifically provided below for millers' selling agencies. Sales by established dealers referred to above at margins over cost greater than the following maximum margins will be considered a violation of the regulations : MAXIMUM MARGINS. 1. Carload lots, including mixed cars, shipment direct from mill or reconsigned without unloading not to exceed 2J per cent. 2. Pooled cars, shipment direct from mill or reconsigned without unloading not to exceed 4 per cent. 3. Carload lots, including mixed cars, where dealer unloads and handles through a warehouse not to exceed 4 per cent. 4. Less than car lots, including pooled cars, where dealer unloads and handles through, a warehouse not to exceed 6| per cent. In the first three cases mentioned any wholesale grocer buying from a dealer may take the^same margin as if he had bought direct from the mill. In the fourth case the wholesaler is limited to a 10 per cent margin and may not resell to another wholesaler. MILLERS' SELLING AGENCIES. A company acting as a dealer which was established prior to August 10, 1917, may carry on its own business in accordance with the margins indicated above, although it is owned or controlled by a rice miller, provided that no larger proportion of rice Is sold by the miller through such company than the average proportion so sold during the next three preceding years. Where a miller maintains a branch office which receives rice in car lots on consign- ments from the mill, warehouses this rice, and distributes it in less than car lots to wholesale grocers, such branch office shall be permitted to add to the miller's maximum prices not more than 3 per cent for the service performed, provided that no larger proportion of the mill's product is thus sold through such branch house than the average proportion so sold during the next three preceding years. NOTE. Where a selling company owned or controlled by a miller sells directly to retailers in less than car lots, it may add a margin not greater than that added by other licensees performing similar services. (New, Nov. 16, 1918.) The maximum margin of from 8 to 10 per cent upon the sale of condensed evaporated milk does not apply to such milk when packed in barrels. Nom Resales of cornstarch. Issued October 31, 1918. The attention of the Food Administration has; been called to speculation and intertrading in bulk cornstarch. Atten- tion is called to the fact that the resale regulations applying to wholesalers of other groceries apply in full to cornstarch in bulk or in packages (see Rule XI-A-5 Note). Under general rule 6 the Food Administration considers that a dealer in cornstarch should only sell cornstarch : 1. To a manufacturer using cornstarch in his manufacture (including confectioners and bakers). 2. To retail grocers and consumers. 3. To smaller wholesale grocers under one of the following circumstances : A. Continuous service. The dealer may customarily and continuously serve in less- than-carload lots wholesale grocers who are serving retail grocers but who are unable for some sufficient and legitimate reason to purchase direct from the source of supply. B. Carload buying. A dealer may enjoy the benefit of carload rates from distant points and sell to smaller wholesale grocers who are unable to buy /he commodity in carload lots. C. Warehousing. A dealer may continuously and customarily furnish cold storage or other warehousing service and sell to wholesale grocers; who have not adequate facilities of that character. D. Surplus stocks. A dealer may dispose of surplus stocks bought, not for speculation, but in good faith for the reasonably anticipated requirements of his business under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have not been warehoused by such dealer will be regarded as prima facie evidence that they were not bought in good faith. Where cornstarch is used by manufacturers in any quantity there should be not more than one dealer between the cornstarch manufacturer and the manufacturer using corn- 604 HISTORY OF PRICES DURING THE WAR. starch. The greater number of such sales should he made direct without the interposition of any dealer. No manufacturer who purchases cornstarch can resell the same without the written permission of the United States Food Administrator, which will be given in proper cases on the condition that, the purchaser is not required to pay a total margin over the cornstarch manufacturer's price greater than that permitted to a single dealer plus actual freight. Margins and profits. Under Rule XI-A-5 the Food Administration will consider any gross margins above delivered cost in excess of those listed below as prima facie evidence of a violation of the statute and regulations, and cause for revocation of a dealer's license. A. Where cornstarch is sold in car lots without warehousing, not to exceed 4 per cent. B. Where cornstarch is sold in less than car lots to bakers, mixers, manufacturers, or retailers, not to exceed 8 to 10 per cent, in bulk or barrels, not to exceed 12 to 15 per cent in packages. C. Where cornstarch is sold to a smaller wholesale grocer under the resale provisions given above in less than car lots, not to exceed 7! per cent in bulk. D. Where the dealer breaks original packages he may add to his; cost the cost of the new package plus actual cost of repacking, in no case to exceed 5 per cent. Sale of lard substitutes. The following ruling has been made by the law department in reply to an inquiry regarding jobbers' margins on lard substitute : " We beg to acknowledge your letter of September 28 in which you inquire whether it is against the Food Administration regulations for a wholesale jobber to sell lard sub- stitute at less than 24 J cents, tierce basis, which under the stabilized program he pur- chases at 23 cents. The Food Administration regulations provide a maximum margin for the wholesaler of li to 2 cents per pound over the purchase price delivered at rail- road station. A general stabilization program affecting lard substitutes and other cotton- seed products has now been adopted by the Food Administration for the purpose of eliminating speculation and reducing the margin between the producer of cotton seed and the consumer of lard substitutes, and this program has been approved by representatives of all interests concerned, w T ho have expressed their desire to cooperate. In view of the circumstances surrounding this program, it will hereafter be considered an unfair practice for any jobber to sell lard substitutes or lard compound in lots of less than 5,000 pounds at a margin over his delivered purchase price less than li cents or 1J cents where the jobber purchases in lots of 30,000 pounds or more and receives a concession of \ cent. " It should be pointed out that this action rests solely on the peculiar circumstances surrounding the cottonseed program. The reasons applying to lard substitutes do not apply to any other commodity handled by wholesale grocers ; and the policy of the Food Administration and its distribution division is decidedly opposed to the application of any similar principle to other commodities. " It should further be pointed out that the 2 cent maximum margin for jobbers applies on the actual purchase price. The jobber who purchases in lots of 30,000 pounds at 22| cents must sell at not to exceed 24| cents." The maximum margins permitted on sales of nonperishables by wholesalers to retailers prescribed in the announcement of June 6, 1918, and in the note to Rule XI A 5 include local cartage, but does not include delivery charges incurred by the wholesaler in de- livering by truck to points to which shipment might be made by rail. The actual ex- pense of making such deliveries by truck may be charged by the seller to the parties to whom the sale is made after the price has been fixed by the seller in conformity with said rule A 5 and announcement of June 6. In no case, however, shall the added charge be in excess of the freight charge. (Opinion A-113, July 26, 1918.) A brokerage may be paid to a broker in a permissible resale from one jobber or wholesaler to another ; the brokerage must, however, be deducted from the profit of either the buyer or seller so that the price of goods in the course of further distribution shall not bear such brokerage. (Opinion A-118, Aug. 26, 1918.) MAXIMUM MARGINS ON SALES BY RETAILERS TO CONSUMERS. (Issued Nov. 7, 1918.) The Food Administration has determined that any sales of food commodities at a gross margin above delivered cost in excess of those indicated below are unreasonable, and will be regarded as prima facie evidence of a violation of the statute and of the above regulation. Percentage may be calculated on the selling price. Delivered cost shall mean the cost at the railroad, steamboat, or other terminal in the retailer's town. Where the retailer is not located in a railroad or steamboat town he may include any hauling charge in the delivered cost. The lesser margin indicated is not a minimum margin, but is a maximum margin for those whose cost of doing business is less, such as stores which do not perform the services of credit and delivery. Any change from the prewar practice in cash discount terms or other changes which tend to or result in increasing the margin of profit allowed will be dealt with as an unfair practice. The retailer may have the benefit of fractional costs on each transaction ; that is, he may^ calculate the total charge to a customer on any transaction as if fractional costs were not allowed, and if the result is a fraction, he may add thereto such fraction of a cent as may be necessary to make a price in even cents. The following table gives an example in the case of eggs, using the cash and carry margin of 7 cents per dozen : GOVERNMENT REGULATIONS RELATING -TO PRICES. 605 Amount of sale. Cost. Margin (cents). Total. Fraction added. Maximum selling price. 1 dozen J0.46J 7 $0. 53i |.54 2 dozen .92| 14 1.06J 1.07 Sdozen \ 1.38f 21 1.59f 1.60 | MAXIMUM MARGINS. Barley flour, original mill packages _: 18 to 22 per cent. Barley flour, broken mill packages 1 0.01J per pound. Rye flour, original mill packages 18 to 22 per cent. Rye floifr, broken mill packages 0.01J per pound. Corn flour, original mill packages 18 to 22 per cent. Corn flour, broken mill packages O.G1J per pound. Rice flour 18 to 22 per cent. Corn meal, bulk * O.Oli per pound. Corn meal, original mill packages 18 to 22 per cent. Hominy 18 to 22 per cent. Sugar, all kinds in bulk 0.01| per pound. Sugar, all kinds in refiners' original packages 0.01 per pound. Evaporated milk, unsweetened ! 18 to 22 per cent. Oatmeal-and rolled oats, bulk . O.Oli per pound. Oatmeal and rolled oats, original mill packages 20 to 25 per cent. Rice__ 20 to 25 per cent. Beans, white or colored 2O to 25 per cent. Starch, edible 20 to 25 per cent. Corn sirup, tins 20 to 25 per cent. Canned corn, peas, and tomatoes, standard grades 25 to 30 per cent. Canned salmon chums, pink, and red 25 to 30 per cent. Canned sardines, domestic 25 to 30 per cent. Dried fruit, raisins, prunes, and peaches 25 to 30 per cent. Lard, pure leaf, bulk 5 to 6 cents per pound. Lard, pure leaf, tins 18 to 22 per cent. Lard, substitutes, bulk 5 to 6 cents per pound. Lard, substitutes, tins 18 to 22 per cent. Breakfast bacon, whole pieces 6 to 7 cents per pound. Heavy bacon, whole pieces 5 to 6 cents per pound. Hams, smoked, whole 6 to 7 cents per pound. In quoting sliced ham and bacon add usual differential to cover actual shrinkage. " Original mill packages " as used above means where retailer sells product in the same mill container as received by him. " Broken mill packages " means when retailer removes contents from original pack- ages and sells in smaller quantities. By other special regulations the retailer's maximum margins have also been fixed in accordance with the following list : Potatoes, white or Irish 25 to 30 per cent. Onions : 25 to 30 per cent. Eggs (whether sold in carton or not) 7 to 8 cents per dozen. Cold-storage butter 6 to 7 cents per'pound. Butter substitutes, oleomargerine, nutmargerine, etc 5 to 6 cents per pound. NOTE. The maximum margins on wheat flour and mixed flour were removed December 31, 1918. B. REFINED SUGAR. Rule 1. Profit on sugar purchased from refiner. No wholesale dealer in refined sugar who purchases such sugar from the producer or refiner, direct or through a broker, shall sell such sugar at an advance over the refiner's list price at which he purchased sugar greater than the normal margin charged by wholesale dealers in refined sugar in the same locality, or such margin as may hereafter be established by the Food Administration. (Issued Nov. 1, 1917; repealed Feb. 1, 1919.) (This rule corresponds to special rule 1, series B, Governing Wholesale Dealers in Sugar.) NOTR. This rule applies to plantation granulated sugar. 606 HISTORY OF PRICES DURING THE WAR. Rule 2. Profit on sugar obtained from other than refiner. It will be con- sidered an unreasonable practice if two or more wholesale dealers handle the same sugar at a greater total margin than that prescribed by rule 1. No whole- sale dealer or other licensee who purchases refined sugar from any person other than the producer or refiner shall sell such sugar to a retailer or to a person using such sugar in manufacturing at a price representing an advance over the producer's or refiner's list price on the day of such sale greater than the advance allowed by the preceding rule to a wholesale dealer in the locality where such sale occurs. (Issued Nov. 1, 1917; added to June 15, 1918; re- pealed Feb. 1, 1919.) (This rule corresponds to special rule 2, series B, Governing Wholesale Dealers in Sugar.) Rule 3. Retail sales must be made at not more than reasonable advance over cost. The licensee shall sell sugar at retail at not more than a reasonable advance over the actual purchase price of the particular goods sold, without regard to the market or replacement value at the time of such sale. (Issued Nov. 1, 1917; repealed Feb. 1, 1919.) E. DRIED BEANS AND DRIED PEAS. Rule 1 (as amended July 24, 1918). Future dealing in new crop beans prohibited. The licensee shall not buy or sell new crop dried beans except for seed, or for the Federal, State, county, or municipal governments or for the Government of any nation at war with Germany, before September 1 of the year covering such new crop if grown in the United States of America, Japan, Manchuria, China, or Asiatic countries, or before June 1 if grown in South America, Porto Rico, or Mexico. (Rule issued Nov. 1, 1917, limited dealing in beans grown in "the United States changed July 24, 1918, to include beans grown in countries noted here ; repealed Dec. 3, 1918. ) NOTE. This rule does not prohibit a licensee from guaranteeing a certain price for a crop to be planted ; however, sales against such an arrangement can not be made before September 1. Rule 2 (as amended July 24, 1918). Future dealing in new crop peas pro- hibited. The licensee shall not buy or sell new crop dried peas grown in the United States of America, Japan, Manchuria, China, or Asiatic countries, except for seed, or for the Federal, State, county, or municipal governments or for the Government of any nation at war with Germany, before July 1 of the year covering such new crop. If grown in South America, Porto Rico, or Mexico such new crop shall not be sold before April. 1. (Rule issued Nov. 1, 1917, limited dealing in peas grown in the United States, changed July 24, 1918, to include peas grown in countries noted here ; repealed Dec. 3, 1918. ) NOTE. While this rule permits the guaranteeing of a price for a crop, no sales can be made by the licensee before July 1. MAXIMUM MARGINS. Under Special Rule XI-A-5 speculation in dried beans or dried peas is prohibited. (Effective Aug. 20, 1918.) The Food Administration will regard any sales of dried beans or dried peas at a gross margin above delivered cost (purchase price plus freight) in excss of the margins indicated in the following table as prima facie evidence of a violation of the statute and the rules. These margins are guides only. They do not change the rules. The margins of profit are still limited to a reasonable advance over the average purchase price of the goods sold without regard to the market or replacement value, and a smaller margin may be considered reasonable where the licensee has a lower cost than customary by reason of his failure to perform any part of the services customarily performed by dealers of that class. High margins, even if customary during prewar periods, are not justifiable now. Unreasonable margins are not excused by lower margins on other transactions in the same commodity or in other commodities. GOVERNMENT REGULATIONS RELATING TO PRICES. 607 Class. Services rendered. Maxi- mum margin. Interpretations. 1. Importer Furnishes letter of credit and Per cent. 10 Importers who buy on c. i. f. terms or 2. Elevator or clean- ing warehouse. 3. Bean factor... buys direct for import. Buys from grower, elevates, cleans, handpicks, and sacks. Buys from grower, elevates, re- cleans and sacks; does not handpick. Buvs from retail elevator (or 12 10 5 bank guarantee of payment after arrival of shipment, or who do not assume the direct risk of buying in foreign countries, fall in class 3 and are entitled only to maximum margin of profit for that class. The difference between the selling price and the actual cost on a handpicked or recleaned basis should be used in arriving at these margins. These margins have been determined by taking the average cost and ex- pense of operating in different sec- tions of the country. Elevators and warehouses which buy importer) and finances to destination. Buys from grower and has re- cleaned by railroad or public warehouse. 7 as agents for larger concerns and do not prepare for the market, are not entitled to more than a reasonable commission for the services rendered, which must be included in the allowed margin of his principal. WHAT RESALES ARE JUSTIFIABLE. General rule 6. The licensee in selling food commodities, shall keep such commodities moving to the consumer in as direct line as practicable and with- out unreasonable delay. Resales within the same trade without reasonable justification, especially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice. Service. Any transactions that savor of trading in which a profit accrues to the dealer without corresponding service are clear violations of the rule and will subject the offender to revocation of this license and to such other penalty as the law provides. The handling of dried beans and dried peas by wholesale grocers, including those sometimes referred to as " bean jobbers " when such jobbers are not lo- cated in the bean-producing sections, and do not buy from or finance retail ele- vators, is dealt with in the circular of June 6, 1918, on " Maximum margins on sales by wholesalers to retailers and by merchandise brokers; and justifiable resales for such dealers." The contents of this circular are also to be found in the note to Rule XI-A-5, effective June 15. The provisions regarding importers of beans in the circular of June 6 are superseded by this circular. Resales between bean factors, commonly known as bean jobbers, located in the bean-producing sections who buy from the retail elevators and finance such stock to destination are prohibited unless the sum of the gross profits obtained by such factors does not exceed the maximum reasonable profit for that group. Resales between elevators or cleaning warehouses are also prohibited unless the sum of the gross profits obtained by such warehouse does not exceed the maximum reasonable profit for that group. Elevators and importers may resell to bean factors, but the effect of the re- sale rule is : (1) That imported beans shall in no event reach the wholesaler or mer- chandise broker class dealt with in the circular of June 6 at an advance of more than 5 per cent over the price received by the importer, plus freight. (2) That domestic beans shall reach the wholesaler or merchandise broker class dealt with in the circular of June 6 at an advance of not more than 5 per cent (or 7 per cent as the case may be), plus freight, over the price received by the elevator. It may be noted that by the provisions of the circular of June 6, after the beans reach the wholesale grocery or merchandise broker class, they must be sold direct to retailers, except in certain specified cases where one resale at a small margin is permitted. F. DRIED FRUITS. Rule 1. New-crop fruits that are not available for spot delivery not to be bought or sold before July 15. The licensee, prior to July 15 of the year in 608 HISTORY OF PRICES DURING THE WAR. which new-crop fruits are to be grown and packed, shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any commit- ment for sale of new-crop fruits not available for spot delivery. A commitment shall include all tentative or conditional orders whether definite prices are named or not. (Rule issued Mar. 30, 1918, forbade dealing in dried fruits before May 1 of year grown. Time changed to June 1, Apr. 30, 1918 ; changed to July 15, May 24, 1918; canceled Jan. 10, 1919.) NOTE. This rule and the following rule correspond to rules 4 and 5, series B, Sup- plement 28, which became effective May 7, 1918, and were amended to their present form May 24, 1918. G. CANNED PEAS, CANNED CORN, CANNED TOMATOES, CANNED SALMON, AND CANNED SARDINES. Rule 1. Canned goods not to be quoted before February 1 The licensee shall not quote for future delivery any canned peas, canned corn, canned tomatoes, canned salmon, or canned sardines before February 1 of the year when such products are to be canned. (Issued Dec. 20, 1917; canceled Jan. 10, 1919.) (This rule corresponds to special rule 3, series B, governing wholesalers and retailers.) H. GREEN COFFEE. Rule 1 (as amended Dec. 5, 1918), Licensees entitled to reasonable profit. Licensees in selling coffee, which is owned by any licensee, spot or afloat, on or before December 15, 1918, shall not take more than a reasonable profit over the cost of the particular coffee sold, provided that any sale of spot coffee shall be made at not more than a reasonable profit over the average cost of his entire stock of spot coffee. Each growth of coffee shall be averaged separately. Every invoice or contract covering the sale of coffee subject to this rule shall be marked : " The seller of the coffee covered by this invoice or contract hereby certifies that same has been sold subject to special rules 1, 2, and 3 of the Food Admin- istration." The licensee in arriving at the cost of such coffee shall include any gain or loss resulting from any actual hedging transaction on a coffee exchange. For the purpose of this rule, an actual hedging transaction on a coffee exchange shall only include transactions in which the sale or purchase made is finally closed or offset. In calculating the profit permitted by this rule the licensee shall not include the gain or loss from more than one hedging transaction on the same lot or stock of coffee, but the position of this transaction may be switched from one month to another, provided that all profits or losses from any hedging transac- tion and all facts regarding the switching of any hedge from one month 'to an- other are included in the licensee's reports. The licensee shall keep any speculative account of the coffee exchange en- tirely separate from such hedging transactions, and the gain or loss resulting therefrom shall not be considered in determining the cost of his hedged stock of coffee. (First issued Feb. 7, 1918; amended June 15 to define hedging transac- tion more in detail ; amended July 24 and Sept. 11 with reference to coffee which might be averaged in figuring cost. Canceled Jan. 10, 1919.) NOTE. The above rule applies only to coffee owned by any licensee, spot or afloat, on or before December 15, 1918. Rule 2 (as amended July 24, 1918). Importer limited to profit of 5 per cent. For the purpose of rule 1 a reasonable profit for an importer shall not exceed 5 per cent gross margin over cost, plus any brokerage or commission actually paid, and the usual ex ship or in store, and shipping charges actually incurred by the licensee on such coffee. If drafts against purchase are drawn in pounds sterling, only the actual amount paid shall be used in figuring the cost. For the purposes of this rule, an importer is one who buys coffee in the country of origin, or coffee in transit to this country, irrespective of terms or conditions of delivery, and who resells such purchase as shipped, in any position, as a whole or in divided quantities without selection of specified chops. A jobber dealing in the foregoing manner shall be considered an importer. (Issued Mar. 9, 1918, limiting profit to 2i per cent; amended July 24, 1918, GOVERNMENT REGULATIONS RELATING TO PRICES. 609 limiting profit to 5 per cent; made to apply only to coffee owned by licensee on or before Dec. 15, 1918, by note added Dec. 5, 1918 ; canceled Jan. 10, 1919. ) NOTE. An importer's transaction is one in which an invoice is sold practically aa shipped. For example, a sale of 450 bags, more or less, out of an invoice of 500 bags, in order to enable the seller to obtain the profit allowed to jobbers, will be considered as a violation of the regulations. Rule 3 (as amended July 24, 1918). Jobber limited to profit of 7^ per cent. For the purposes of rule 1 a reasonable profit for a jobber shall be 7$ per cent gross margin over cost, such cost and charges to be computed as prescribed ill rule 2. A jobber, for the purpose of this rule, is one who customarily sells coffee in one or more chops to wholesalers, roasters, or other licensed green- coffee dealers. (Issued Mar. 9, 1918, limiting profit to 5 per cent; amended July 24, 1918, limiting profit to 7^ per cent, made to apply only to coffee owned by licensee on or before Dec. 15, 1918, by note added Dec. 5, 1918 ; canceled Jan 10, 1919.) NOTE.. The prescribed margin of profit does not apply to sales of 25 bags or less. Rule 4 (as amended July 24, 1918). Resales, with certain exceptions, for- bidden. The licensee in selling green coffee shall keep it moving to the con- sumer in as direct a line as practicable and without unreasonable delay. Resales, especially if tending to result in a higher market price to the con- sumer, will be dealt with as an unfair practice. One resale from one importer to another is permissible, and on such resale the gross margin of profit shall not exceed 2 per cent over cost plus such charges as are stated in rule 2. One resale from one jobber to another is permissible, and on such resale the gross margin shall not exceed 3f per cent over cost plus such charges as are stated in rule 2. (Issued Mar. 9, 1918, limiting profit in sales between im- porters to 1| per cent and between jobbers to 2$ per cent; changed July 24, 1918, to 21 per cent for importers and 3| per cent for jobbers; made to apply only to coffee owned by licensee on or before Dec. 15, 1918 ; added Dec. 5, 1918 ; canceled Jan. 10, 1919.) NOTE. More than one resale will be permitted only under very exceptional conditions. The Food Administration realizes that conditions may arise where sufficient justification may be found to warrant further resales. Such resales, however, can only be made with the permission of the Food Administration. Full consideration for the issuing of such permission will be given when sufficient justification can be shown. Rule 7. Must not charge more than the customary brokerage. The licensee shall not charge, directly or indirectly, a commission or brokerage on the sale of green coffee in excess of that which ordinarily and customarily prevails, under normal conditions, in the locality in which the broker's business is con- ducted. (Issued Mar. 9, 1918; canceled Jan. 10, 1919.) Rule 8. Only one brokerage permitted. Brokers shall not receive more than one brokerage on any sale, nor shall they receive an overage except where by force of circumstances they may have become principals through a misunder- standing or delay. When a broker closes out or sells coffee upon which he receives an overage he must send to the buyer, and enter in his reports to the Food Administration, full particulars regarding such transaction. In cases where first-hand dealers (i. e., importers, jobbers, or licensees holding green coffee on commission) employ one broker as their exclusive broker, and such goods are placed to the interior trade through a local broker acting there as the representative of the sole broker of the principal, the licensee under rules 2, 3, and 4 may include under the item of brokerage such extra brokerage or commission as has been heretofore customary for the local broker. All invoices rendered by licensees to buyers of green coffee shall state the entire amount of brokerage paid, if any, on the transaction, and included in the price paid by the buyer. ( Issued Mar. 9, 1918 ; canceled Jan. 10, 1919. ) NOTE. In the green-coffee trade it has been customary for brokers, representing exclusively first-hand dealers, to handle these accounts through outside brokers for the interior trade, and these first-hand dealers cover the cost to them of these outside brokers by an additional price, secured from the purchaser. As this custom has been long established, the Food Administration, pending further notice, will permit it to continue, but requires that the full amount of all commissions paid on a transaction shall be shown on the coffee invoices rendered by the seller to the buyer in every case. ROASTED COFFEE. Although roasted coffee itself has not been licensed, it must be carefully noted that all persons selling roasted coffee are subject to the food-control act of August 10, 1917, and -that this law expressly forbids unreasonable or exces- 125547 20 39 610 HISTORY OF PEICES DURING THE WAR. sive charges. If it is found that the trade is violating this law as to reason- able profits upon roasted coffee, prompt action will be taken and the Food Administration will also find it necessary to place roasted coffee under license. J. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF OLEO- MARGARINE OR OTHER BUTTER SUBSTITUTES. Rule 1 (new, Oct. 25, 1918). Oleomargarine must not be sold at retail at more than reasonable advance over cost. The licensee dealing in oleomargarine or other butter substitutes at retail shall not sell at more than a reasonable ad- vance over cost without regard to market or replacement value at the time of sale. Cost shall include purchase price plus transportation charges, if any. The licensee may average the cost of all oleomargine or other butter substitutes of the same kind and grade in his possession at the point from which the sale is made which has not already been contracted to be sold, and may take such aver- age cost as the cost of any particular lot. When new lots are added and a new average calculated the licensee shall include in the new averaging all stock remaining on hand of lots already averaged at the average cost of such lots previously determined. If the cost of any oleomargine or butter substitutes is averaged the cost of all such products must be averaged. When costs are aver- aged the licensee must keep a record of the manner in which such average has been arrived at. (Repealed Feb. 1, 1919.) NOTE. The United States Food Administration will regard any advance in excess of 5 cents to 6 cents per pound over cost as unreasonable and as evidence of violation of the above rule. The 5 cents per pound represents the maximum margin for stores con- ducted on the cash and carry or no service plan, while 6 cents per pound is tlie maximum margin for the extra service stores extending credit and delivery. In determining margins at 5 cents and 6 cents per pound on oleornarjrme with the fractional costs in favor of the dealer, the United States Food Administration has given due consideration to the rising costs of operation which must be met by the dealer. Retailer may have benefit of fractional cost on ani/ transaction. Retailers whose de- livered terminal costs figure in fractions may have the benefit of such fractional costs. Tor example, if oleomargine costs at terminal delivery 32 i cents per pound, the selling price may be figured as follows : CASH AND CAHIlY STORES. Amount of sale. Cost. Margin. Total. Fraction added. Maximum selling price. 1 pound Cents. 32J Cents. 5 Cents. 37| Cents. J Cents. 3? 65 10 75 Xonc. 75 3 pounds . 97i 15 ii2i i 113 would be 1 The maximum selling price for the extra service or credit and delivery stor< cent per pound higher. Rule 2 (new, Oct. 17, 1918). The manufacture and sale of prints of oleomar- garine or other butter substitutes weighing less than 1 pound prohibited. On and after January 1, 1919, no licensee shall manufacture or sell units of oleo- margine or any other butter substitute in print form that weighs less than one pound, provided that this rule shall not prevent a retailer from cutting a unit weighing 1 pound or more, and selling a portion thereof to a consumer. (Re- pealed Nov. 25, 1918. ) L. CLEAN RICE. Hule 2. Quotations of imported clean rice by the pound only. The licensee shall quote, buy, and sell all imported clean rice by the pound only. (Repealed Feb. 1, 1919.) NOTE. This rule applies to imported clean rice which is held for export. XII. BROKERS AND AUCTIONEERS OF LICENSED NONPERISH- ABLE FOOD COMMODITIES. A broker or auctioneer in a transaction eoiu-e ruing any licensed food com- modity is responsible for any violation by the principal of the regulations gov- erning such transaction. Brokers and auctioneers should, therefore, familiarize themselves with the general regulations and any special regulations governing principals for whom they act. A list of the special rules issued will be found on page 3 of Pamphlet No. I (General License Regulations). GOVERNMENT REGULATIONS RELATING TO PRICES. 611 Brokers and auctioneers ,in all licensed nonperishable food commodities must also conform to the following brokers' rules : Rule 1. Commission or brokerage charges limited. A licensee shall not charge directly or indirectly a commission or brokerage on the sale of food commod- ities in excess of that which ordinarily and customarily prevails under normal conditions in the locality in which the broker's, conimssion merchant's, or auctioneer's business is conducted and in the particular branch of trade in question. Rule 2. Prompt remittance required. The licensee shall remit promptly fol- lowing the sale of food commodities received on consignment for sale or dis- tribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, repealed Feb. 1, 1919.) NOTE. A commission merchant can not divide his commission with the buyer unless he shows on the account of sales rendered to the consignor that he has done so. Rule 3. Charging of both brokerage and overage prohibited. The licensee sluill not charge or receive for himself, on the sale of any food commodities, both a commission or brokerage and an overage or profit. (Issued Nov. 1, 1917; repealed Feb. 1, 1919.) Rule 4. Sales to self forbidden without written consent of principal. The licensee shall not directly or indirectly sell consigned food commodities, or food commodities with the sale of which on commission he is intrusted, to himself or to anyone connected with his business without the written permis- sion of his principal. Rule 5. Only one brokerage on sugar permitted. No licensee shall charge a -commission or brokerage on any sugar on which one brokerage or commission has already been charged. (Issued Nov. 1. 1917; repealed Feb. 1, 1919.) Rule 6 (as amended Aug. 15, 1918; effective Aug. 20, 1918). Commissions must not be split with buyer. The licensee may split with other brokers' commis- sions or brokerage received on the sale of food commodities, but shall not split such commissions or brokerage with the buyer of the food commodities, or any employee of the buyer. (Issued Nov. 1, 1917, as to sugar; changed Aug. 20, 1918, to cover "food commodities," as noted here; repealed Feb. 1, 1919.) NOTE. The payment by a broker of charges incurred by him for telephone and tele- graph messages received by him from a buyer does not constitute the splitting of his commissions with the buyer. Money so paid out is an expense of the brokerage busi- ness. MARGINS FOR BROKERS WHO BUY AND SELL FOR THEIR OWN ACCOUNT. Subject to the provisions of general rules C T 7. and 8 and the above rules governing commission merchants and brokers, brokers may in proper and necessary transactions buy and sell for their own account. Transactions of this kind should be confined to the smallest possible volume, and in every case must be justified by the necessity of com- pleting cars or dividing carloads among smaller buyers ; such merchants engaged in this business should be guided by the following-suggested margins, which are to be re- garded as maximum gross profits, but are not permitted unless corresponding service is rendered : All flour (except wheat and rye flour), hominy, grits, corn meal, oatmeal, rolled oats, beans, rice, etc 4 Licensed cereals in packages, licensed canned goods, licensed dried fruits 5 These margins shall be inclusive of any brokerage received. In every case where a broker sells for his own account any nonperishable goods that he has purchased from a particular principal, and has received, or is entitled to receive, a brokerage on such goods, he must deduct such brokerage before fixing his margin of profit as a jobber. XIV. SUGARS AND SIRUPS. A. SPECIAL REGULATIONS GOVERNING DEALERS IN GLUCOSE, RE- FINERS' SIRUPS, MAPLE SIRUP, SORGHUM, CANE JUICE SIRUP CENTRIFUGAL MOLASSES. OPEN-KETTLE MOLASSES, WEST INDIA MOLASSES, AND BLACKSTRAP MOLASSES, AND MANUFACTURERS AND MIXERS OF MIXED SIRUPS AND MIXED MOLASSES. (Effective Nov. 7, 1918.) NOTE. The following regulations do not apply to established wholesale grocers handling sirups or molasses through customary trade channels for the hcusehold and bakers trade. Such wholesale grocers are governed by Regulations No. XI and the margins and resale pi-ovisions there prescribed. These regulations do apply to all other dealers in pure sirups or molasses, whether sold in original packages or repacked; and to all licensees who mix, blend, or process in any way sirups consisting in whole or ID part of sirups, glucose, or molasses of any kind. 612 HISTOEY OF PRICES DURING THE WAR. Rule 1. Reasonable profits prescribed. The licensee without regard to market or replacement value at the time of such sale shall sell glucose, refiner's sirups, maple sirup, sorghum, cane-juice sirup, centrifugal molasses, open-kettle mo- lasses, West India molasses, blackstrap molasses, and all mixed sirups and mixed molasses at not more than a reasonable advance over the average purchase price of all lots of the same grade and size, of the same commodity or the in- gredients thereof, in his possession or invoiced to him not contracted to be sold. The licensee shall keep a record of the manner in which such average has been arrived at, and he shall take as the cost of all stock remaining on hand from lots already averaged the average cost previously arrived at. In selling commodities not yet invoiced to him he shall sell at not more than a reasonable advance over the actual purchase price to him of all lots of the same grade and size of the same commodity, or the ingredients thereof, pur- chased by him but not yet invoiced to him. ( Issued Nov. 7, 1918 ; canceled Jan. 10, 1919.) NOTE. Margins for dealers in pure refiners' sirups or glucose. Under the above rule the Food Administration will consider any gross margins above delivered cost in excess of those listed below taken by dealers in pure refiners' sirups or glucose, as prima facie evidence of a violation of the statute and this regulation. A violation of these margins will therefore be considered cause for the revocation of a dealer's license. (a) Where glucose or refiners' sirup is sold by a dealer in car lots (including mixed cars), not to exceed 5 per cent. (6) Where glucose or refiners' sirup is sold by a dealer in less than car lots to bakers, mixers, or manufacturers, not to exceed 12 to 15 per cent. (C) Where glucose or refiners' sirup is sold to a wholesale grocer under the provision of rule 2 .following, in less than car lots, not to exceed 7i per cent. (d) Where the dealer breaks original packages he may add to his cost the cost of the new packages plus actual cost of such packing, in no case to exceed 5 per cent. The margins named are large enough to include all ordinary carrying charges. If general conditions should later necessitate the carrying of goods for a longer period than usual, further consideration will be given to this feature. The above margins do not justify the taking of a profit greater than was taken by the licensee in prewar times. A large part of the commodities covered by this rule are dealt with in large quantities, and it is quite possible that dealers who handle them in such quantities will receive an unreasonable profit if they take the full maximum margin. In such cases they should continue to sell at somewhat lower margins. Dealers in refiners' sirups and glucose are also subject to the 6 per cent profit limitation following : Profits for dealers and mixers of sirup, f/lucose, and molasses. The Food Administra- tion will consider ,a net earning of more than 6 per cent upon the gross sales of pure and mixed sirups, glucose, and molasses by any dealer in sirups as above defined, or by any sirup mixer or blender, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule l-A-5). This percentage will be calculated for the semiannual periods making up the licensee's fiscal year. The Federal income and excess-profits taxes may not be deducted, but all other taxes may be considered as expenses. The limitation does not modify or abrogate the general prin- ciples contained in the Food Administration regulations that a licensee should not earn more than a reasonable net profit on its capital invested. Blackstrap molasses and refiners' sirups prices. The following maximum prices have been named for refiners' sirups and blackstrap molasses sold by the refiner or dealer in tank cars and based on the cost of imported raw sugar and domestic beet manufacture : Per gallon in barrels. Per gallon in bulk. Refiners' sirups highest grade (fancy filtered) . Cents. 55 Cents. 50 40 35 Refiners' sirups low grade (unfiltered).. 30 25 Blackstrap molasses. .. 23 18 The maximum prices named also apply to imported blackstrap. These prices are f. o. b. cars at seaboard point or point of production, net cash in 10 da~ys without discount. They include brokerage, and if sirups or molasses are distributed in tank cars they include the margin allowed to dealer, so that no dealer may sell blackstrap molasses in tank cars at more than 18 cents plus freight and tank-car charges. Where blackstrap molasses or sirups are distributed in barrels, the dealer's margins named may be added to the maxi- mum price. Where sirups are distributed in packages smaller than barrels, the packer may add to the bulk price the actual cost of such packages. Rule 2. Resale of glucose and refiners' sirups limited. The licensee shall not resell pure glucose or pure refiners' sirups except (1) to a manufacturer, baker, or mixer using such article in his manufacture, (2) to a retail grocer or con- sumer, (3) to wholesale grocers under one of the following circumstances: A. Continuous service. The seller may customarily and continuously serve in- less than carload lots wholesale grocers who are serving retail grocers but who are unable fox- some sufficient and legitimate reason to purchase direct from the source of supply. GOVERNMENT REGULATIONS RELATING TO PRICES. 613 B. Carload buy-ing. A sirup dealer may enjoy the benefit of carload rates from distant points and sell to smaller wholesale grocers who are unable to buy the commodity in carload lots. C. Warehousing. A sirup dealer may continuously and customarily furnish cold- storage or other warehousing service and sell to wholesale grocers who have not adequate facilities of that character. D. Surplus stocks.- A sirup dealer may dispose of surplus stocks bought, not for speculation but in good faith, for the reasonably anticipated requirements of his business under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have not been warehoused by such dealer will be regarded as prima facie evidence that they were not bought in good faith. No person who purchases glucose or refiners' sirups from a dealer, except a wholesale or retail grocer buying under subdivisions (2) or (3) above, shall resell such glucose or sirup without the written permission of the United States Food Administration. (Issued Nov. 7, 1918; repealed Dec. 17, 1918.) NOTE. Wholesale grocers purchasing from a dealer are forbidden to resell, except to retailers, manufacturers, or consumers, under the wholesale grocers' regulations (No. XI) and are limited to a margin of 12 per cent. . Permission to resell will be given in proper cases upon the condition that no person from whatever source he buys shall sell glucose or refiners' sirups in bulk at an advance over the manufacturer's price of the particular lot sold greater than that permitted to a single dealer plus actual freight. Sirup mixers may sell their mixed sirups and molasses to any wholesale grocer. XV. SPECIAL REGULATIONS GOVERNING ALL DISTRIBUTORS OF FRESH FRUITS AND VEGETABLES. Rule 9. Terms to be included in every contract unless expressly agreed other- wise. The licensee shall include in every contract for the sale of fresh fruits and vegetables to be shipped by a common carrier the following terms, and these terms shall be understood as included in every such contract between licensees, even though not expressly stated ; provided, however, that the said terms may be varied by express agreement in writing. (Issued Jan. 28, 1918; repealed Dec. 10, 1918.) TERMS OF CONTRACT. A. The seller shall be responsible for and reimburse the buyer for any failure of the goods to conform to the grade, quality, or condition specified in the contract of sale, except that all sales made f. o. b. point of origin shall be construed to mean that the buyer assumes all risks of damage in transit not caused by the shipper whether there is a bill of lading to the order of the seller or not. B. The shipment shall be deemed to have reached destination when placed on any railroad team track or private unloading track or where awaiting consignee's order for placing on such team or private unloading track. The burden of locating a ship- ment on such arrival shall be on the consignee, provided that the consignor has billed the shipment with proper instructions as to the railroad notifying the consignee. The failure of the railroad to notify the consignee will not be construed as releasing the consignee from his obligations to the consignor, provided proper advice as to the car number has been given to the consignee by the consignor. But if the consignee uses every reasonable effort to locate a car and fails, he shall not be responsible for failing to learn of its arrival. NOTES. The rule issued as series B, special rule 13, effective January 28, 1918, is amended by the above rule. This rule applies to the sale of cars in transit, provided the seller advises the buyer that the car is in transit, the date of shipment, and if possible, where it is located. NOTE TO RULES 3 TO 9, INCLUSIVE. The above rules have been prepared after con- ference with representatives of those engaged in the business of shipping and receiving perishable food commodities, and have been based on recommendations from them in order to meet a condition which has resulted in great waste of fresh fruits and vege- tables throughout the country. The rules are designed to prevent delay in unloading the shipment of goods contrary to contract, and the resulting traffic congestion and food waste. It is essential that all licensees should cooperate in good faith with the Food Ad- ministration to avoid improper shipments, rejections, and disputes, and to arrange quickly for prompt release, handling, or unloading of the goods involved, and to sub- mit any dispute promptly to arbitration. It is strongly recommended that contracts for the sale of fresh fruits and fresh vegetables, be definite as to the quality and grade of goods and terms of sale and delivery, and be evidenced by a proper memorandum in writing. The Food Administration will consider the certificate of any food-products inspector of the Bureau of Markets of the United States Department of Agriculture as prima facie evidence of the condition of the goods. If no such inspector is available, great weight will be attached to inspection by expert officials of trade organizations. Where no official inspectors are available, due weight will be given to the judgment of such unofficial experts as may have made inspection or are designated or approved by the Food Administration. 614 HISTORY OF PEICES DURING THE WAR. In all cases submitted to arbitration or settlement where the shipment is made, draft, bill of lading attached, the consignor should direct the bank holding his draft to retain the proceeds thereof and to distribute the same according to the result of the final determination. Thereupon the consignee should pay said draft and release the bill of lading. In, the case of commodities where it is customary to assort or recondition, and where necessary to preserve food values and prevent waste, fresh fruits and vegetables should be assorted or reconditioned by the consignee upon the consignor's request to recondi- tion and his agreement to arrange for the payment of properly substantiated claims. B. ADDITIONAL SPECIAL REGULATIONS GOVERNING COMMISSION MERCHANTS, BROKERS, AND AUCTIONEERS DEALING IN FRESH FRUITS OR FRESH VEGETABLES. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. The licensee shall not charge directly or indirectly an unjust, unreasonable, discriminatory, or unfair commission or brokerage on the sale of fresh fruits or fresh vegetables. (July 10, 1918 ; repealed Dec. 10, 1918.) NOTE. The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administration before such increased rate is put into effect. This rule was formerly included in series B, general rule 5, governing all licensees as issued November 1, 1917. Rule 2. Prompt remittance and proper account of sales to be rendered. The licensee shall remit promptly following the sale of fresh fruits or vegetables received on consignment for sale or distribution, and shall render to the con- signor an account showing the true sales and with charges only for services actually performed, and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to " food commodities " ; repealed Dec. 10, 1918.) NOTE. This ru i e is j n conformity with special rule 2, of series B, issued November 1, 1917. From November 1, 1917, to April 16, 1918, the rule governing all commission merchants, brokers, and auctioneers which limited their charges to " * that which ordinarily and customarily prevails under normal conditions in the locality in which their business is conducted * * * " applied to these dealers in perishables. XVI. DISTRIBUTORS OF FRESH FISH AND FROZEN FISH. C. ADDITIONAL SPECIAL REGULATIONS GOVERNING COMMISSION MERCHANTS AND BROKERS DEALING IN FRESH FISH OR FROZEN FISH. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. 1 The licensee shall not charge directly or indirectly an unjust, unreasonable, discriminatory, or unfair commission or brokerage on the sale of fresh fish or frozen fish. (Issued Aug. 24, 1918; repealed Dec. 17, 1918.) NOTE. The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local food administrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administration before such increased rate is put This rule was formerly included in series B, general rule 5, governing all licensees as issued November 1, 1917. Rule 2. Prompt remittance and proper account of sales to be rendered. The licensee shall remit promptly following the sale of fresh fish or frozen fish re- ceived on consignment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed, and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to " food commodities " ; repealed Dec. 17, 1918. ) NOTE. This rule is in conformity with special rule 2, of series B, issued November 3, 1917, Rule 3. Agent not to buy from principal unless noted on account of sales. The licensee shall not directly or indirectly sell consigned fresh fish or frozen fish or such commodities with the sale of which on commission he is entrusted, 1 From Nov. 1, 1917, to Apr. 16, 1918, the rule governing all commission merchants, brokers, and auctioneers, which limited their charges to " * * * that which ordinarily and customarily prevails under normal conditions in the locality in which * * their business is conducted * * applied to these dealers in perishables. GOVERNMENT REGULATIONS RELATING TO PRICES. 615 to himself or to anyone connected with his business, unless he notes the facts of such transaction on the account of sales. (Issued Nov. 1, 1917, as to "food commodities"; repealed Dec. 17, 1918.) NOTE. This rule is in conformity with special rule 4, series B, issued November 1, 11)17. When a licensee sells to himself or to anyone connected with his business, he must clearly show on the account of sales that he himself bought the fish and also clearly show the quantity and at what price they were taken over. RECOGNIZED FUNDAMENTALS APPLYING TO THE STORING AND DISTRIBUTION OF FROZEN FISH. Storers of/ frozen fish, whether storing at the producing districts or in the dis- tributing markets, perform an important function in preserving the overproduction of the various seasonal varieties for consumption during periods of scant production i. e., the winter months. They are a direct and potent aid in encouraging and fostering the production of the fisheries by enabling the various producing units to operate steadily and at full efficiency. Broad differences in the first costs of frozen fish must prevail generally, affected as they are by the uncertainties surrounding production, influence of water temperatures, storms, feed conditions, and many other natural factors incident to the industry. The period of marketability is limited to the cold-weather months. The pack of any one variety must be sold in competition with the total pack of all kinds of frozen fish throughout the country aggregating over a score of important varieties and many miscellaneous varieties. Marketing must also be carried on in competition with the daily supplies of fresh-caught fish, which fluctuate widely during the winter months. No satisfactory determination of total storage stocks and average costs on most of the varieties of frozen fish can be reached until after the completion of the fall runs. Storers of frozen fish and distributors must necessarily contend with these complex and uncertain factors. The business is so speculative in its nature and so variable in its results from season to season that ordinary methods of estimating margins of profit, whether upon particular varieties or the business as a whole are difficult of application. The practice of the original storers in selling portions of their pack of particular varieties in advance of the termination of the season of flush production is a natural outgrowth of the uncertainty. It is a safeguard both for producers and storers and tends to remove some of the speculative features naturally inherent to the industry. PRESENT POLICY OF REGULATIONS. The particular attention of the frozen-fish industry is called to general license regu- lations No. 1 (printed in a separate pamphlet) governing all industries licensed by the United States Food Administration. (1) The reports required from all licensees will furnish a basis from which to survey the operations of all licensees during the season of 1918-19. As the season progresses special reports will be requested whenever deemed advisable. These will supplement our follow up of daily quotations in the principal distributing centers. (2) With the approach of winter certain staple varieties of frozen fish stored in heavy volume will be given special consideration, and the United States Food Adminis- tration hopes, if such action is deemed to be desirable and practicable, to announce maximum prices beyond which these particular varieties can not be sold to the retailer or supplier of hotels and institutions. Such maximum prices, when announced will be based on merchandise costs, with due allowance for reasonable margins of profit. Such maximums, when announced, must be accepted as guides only. They do not modify the rules and must not be regarded by storers or owners of relatively low-cost packs as an invitation to take unreasonable profits. Rule 5 of the general license regulations provides as follows : " The licensee shall not import, manufacture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, unreasonable, discriminatory, or unfair commission, profit, or storage charge." We call attention to the fact that storers of frozen fish in districts favored by a heavy average production will have acquired their stocks at a much lower cost than storers where the runs of fish have been short and unfavorable. The United States Food Administration will expect the rapid pushing of all low-cost packs through the usual distributing channels early in the season, and under such conditions as will naturally bring about prices to the retailer and the supplier of hotels and institutions materially below any maximum prices which may hereafter be established. 616 HISTORY OF PRICES DURING THE WAR. (3) Attention is also called to general rule 6 regarding resales within the trade. The aim of the United States Food Administration is to keep the supplies of the various varieties of frozen fish moving naturally, freely, and as rapidly as possible into con- suming channels at the prevailing prices determined solely by an open unrestricted market in each distributing district and without local or general manipulation and without advantage being taken by the trade of temporary emergencies creating artificial price conditions. August 1M, 1918. XVIII. DISTRIBUTORS OF POULTRY. (Effective Dec. 9, 1918.) A. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FRESH POULTRY. INTERTRADING RESTRICTED. General rule 6 provides as follows : " The licensee, in selling food commodities, shall keep such commodities mov- ing to the consumer in as direct line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, espe- cially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice." The United States Food Administration recognizes the following classes of dealers in fresh poultry : 1. Original packers and shippers. 2. Commission merchants and wholesalers. 3. Jobbers and suppliers of hotels and institutions. 4. Retailers. All trading in fresh poultry must contribute toward moving the poultry in a direct line to the consumer. Sales between dealers in any one of the classes mentioned above are prohibited, except as follows: Sales between wholesalers in different cities will, for the present, be permitted where necessary to supply the reasonable requirements of the buyer's business, provided there is an actual shipment of the goods, and provided the movement between cities is in the direction of normal crop movement from producer to consumer. In addi- tion thereto, not more than two sales between dealers in class 2 may be made without obtaining the consent of the local Federal food administrator if such sales are necessary to supply the reasonable requirements of the buyer's busi- ness, but more than two sales between dealers in class 2 shall not be made without the written consent of the local Federal food administrator. One sale, and only one, between dealers in the same class other than class 2 may be made without obtaining the consent of the local Federal food administrator if such sale is necessary to supply the reasonable requirements of the buyer's business, but more than one such sale shall not be made without the written consent of the local Federal food administrator. In no case shall a dealer sell fresh poultry to any dealer in a class further removed from the consumer than the class in which the seller is included ; for example, a jobber shall not sell to a wholesaler, or a retailer to a wholesaler. No objection will be made to sales of fresh poultry that are made at a price that is less than or equal to the initial cost to the seller of the particular com- modities sold, nor are such sales to be counted as sales between dealers in the same class. Licensees will be expected to find out whether sales are justifiable by obtain- ing information as to the class in which the seller and buyer are dealing, and the location and class of the licensee from whom the seller purchased. This information should be placed on all confirmation of sales. B. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FROZEN POULTRY. DEFINITIONS. In the following rules the different kinds of dealers in frozen poultry are defined as follows: (a) An original packer or shipper is a person, firm, corporation, or association that assembles and packs the poultry for market or storage. (6) A commission merchant is a person, firm, corporation, or association that solicits for sale or receives for sale, and sells food products on a commission basis, or that acts GOVERNMENT REGULATIONS RELATING TO PRICES. 617 as agent or representative of shippers, packers, and other distributors in the marketing of food products for a fixed package charge or on a percentage basis. (c) A wholesaler is a person, firm, corporation, or association other than the original packer or shipper that sells to jobbers or to suppliers of hotels and institutions. (d) A. jobber is a person, firm, corporation, or association that sells or distributes to retailers. (e) A supplier of hotels and institutions is a person, firm, corporation, or associa- tion that sells to hotels, restaurants, clubs, dining-car or steamship companies, public or private institutions, or to retail dealers requiring specially selected stock and being furnished a service similar to that rendered to hotels and institutions. (f) A retailer is a person, firm, corporation, or association that sells or distributes to consumers. (f 21 159| | 1 fiO The maximum selling price for the extra service or credit and delivery stores would be 1 cent per dozen higher. In determining margins at 7 cents and 8 cents per dozen on eggs with the fractional cost in the dealer's favor, the United States Food Administration has given due considera- tion to the rising costs of operation which must be met by the dealer. Margin for retailer who stored eggs during 1918. The attention of any retailer who was the original storer of eggs during the season of 1918, is called to the fact that he is still governed by rule 8 of the special regulations governing distributors of cold-storage eggs in respect to transactions in these eggs. SUPPLEMENT. TO LICENSEES WHO ARE RECEIVERS OF POULTRY OR EGGS (BUTTER AND OTHER PRODUCE), ON CONSIGNMENT OR AS -PURCHASERS. A licensee in receiving goods shipped in to him acts in one of two capacities, either as an agent of the shipper in selling commodities or as a purchaser of the commodities from the shipper. Some licensees are engaged in both forms" of business and confusion has arisen in the minds of shippers as to exactly how their shipments are to be handled. Licensees should be guided by the following principles : (1) If the licensee acts as an agent for the shipper in disposing of goods he must render an account sales showing the sales made for the account of the shipper, the amount deducted by him for compensation, and any other charges. In some cases it is the practice for commission merchants to take to their own account goods which are consigned to them as agents. Where an agent so takes to account this fact is required to be noted on the account sales by the regulations of. the Food Administration. The shipper will then kjiow the nature of the transaction. This requirement is in addition to any obligation at common law resting on the receiver to obtain the consent of the shipper to such a transaction. Licensees who handle commodities for shippers for a certain compensation, even though not expressed in terms of percentage or called a commission, are none the less commission merchants, and must comply with the regula- tions governing commission merchants. (2) If the licensee is not acting as agent for the shipper and the intention is that the licensee shall purchase from the shipper, this matter should be clear to the shipper as well as the receiver of the commodities. The use of expressions by the receiver in connection with such a transaction which would lead the shipper to believe that the receiver is acting as an agent for the shipper is misleading and unfair. Purchases are made under different arrangements as to price, more commonly in one of the following ways : (a) The receiver agrees to pay the shipper a definite price upon arrival. (&) The receiver agrees to pay the shipper a price Tiaving a definite relation to the market price on the day of arrival. (c) The receiver agrees to pay the shipper a price to be determined by the receiver on the day of arrival. Such agreements are not prohibited by the Food Administration. In the third case (c) it is clearly implied in the agreement that the price to be paid by the receiver shall not be arbitrary but shall be reasonable under all the circumstances and shall bear a GOVERNMENT REGULATIONS RELATING TO PRICES. 625 proper relation to the market value. The Food Administration will so construe such agreements and the parties should so understand them. Where a dealer ) One and three-eighths cents per pound on sales less than a car lot but amount- ing to 8,000 pounds or more. (c) Two cents per pound on sales less than 8,000 pounds but amounting to 1,500 pounds or more. (d) Two and one-half cents per pound on sales less than 1,500 pounds but, amount- ing to 750 pounds or more. (c) Three cents per pound on sales less than 750 pounds but amounting to 150 pounds or more. (f) Four and one-half cents per pound on sales less than 150 pounds. In addition to the selling margin, which should normally be considerably below the above maximum margins, a further margin may be added where block Swiss cheese is held in a warehouse for more than 30 days, not to exceed one-fourth cent per pound per month for each and every month after thel 30-day period during which the cheese is held in the warehouse by any licensee, but in no case shall the amount so added exceed 2 cents per pound and no further amount shall be added by any licensee after nine months from the date of original storage. Transfer margins. The margins for transfer of block Swiss cheese to a branch house where the main house actually handles the cheese shall not exceed three-fourths cent per pound regardless of quantity. 632 HISTORY OF PRICES DURING THE WAR. BRICK, LIMBURGER, AND MUNSTER CHEESE. (a) One and one-fourth cents per pound on car-lot sales. (b) One and five-eighths cents per pound on sales less than a car lot, but amounting to 6,000 pounds or more. (c) Two and one-half cents per pound on sales less than 6,000 pounds, but amounting to 2,400 pounds or more. (d) Three cents per pound~bn sales less than 2,400 pounds, but amounting to 600 pounds or more. (e) Three and one-half cents per pound on sales less than 600 pounds, but amounting to 120 pounds or more. (/) Five cents per pound on sales less than 120 pounds. In addition to the selling margin which should normally be considerably below the above maximum margins, a further margin may be added where brick, Limburger, or Munster cheese is held in a warehouse for more than 30 days, not to exceed three- eighths cent per pound for the first month after the 30-day period and one-fourth cent per pound per month for each of the following months thereafter during which the cheese is held in the warehouse by any licensee ; but in no case shall the amount so added exceed 11 cent's per pound and no further amount shall be added by any licensee after six months from the date of original storage. Transfer margins. The margins for transfer of brick, Limburger, or Munster cheese to a branch house where the main house actually handles the cheese shall not exceed" three-fourths cent per pound, regardless of quantity. Rule 2. Manufacturers who perform services of dealer or assembler. Any manufacturer who acts also as an assembler, wholesaler, or jobber shall be subject in such sales to the rules and margins governing assemblers, whole- salers, and jobbers, provided that instead of the purchase price as an. assembler, wholesaler, or jobber he shall either (1) Compute the cost of raw materials and the expense of manufacture; or (2) In the case of American or Cheddar cheese, take the price during the 10 days after the cheese is manufactured on the shape and grade of cheese in the established primary market on the basis of which the cheese is usually sold by manufacturers. (Issued June 12, 1918; repealed Jan. 6, 1919.) Rule 3. Commissions not to be unreasonable. No licensee shall pay, and no commission merchant shall receive, an unreasonable or exorbitant commission in connection with the sales of cheese. The licensee shall inform any commission merchant selling cheese for him of the maximum permitted price at which such cheese may be sold. (Rule issued June 12, 1918, provided commission of one-half cent per pound. Changed Aug. 2, 1918, to present form. Repealed Jan. 6, 1919.) NOTE. Ten days after the cheese is manufactured *' means 10 days after the cheese is removed from the hoops and placed in the curing room. Under rule 1 the selling price may not be increased by reason of the payment of a commission. Commissions higher than those indicated below will be considered prima facie unreasonable and exorbitant. (a) Maximum commissions. In the case of American or Cheddar cheese one-half cent per pound on car lots and 1 cent per pound on less than car lots. <&) In the case of round or tub Swiss cheese II cents per pound on car lots and li cents per pound on less than car lots. (o In the case of block Swiss cheese 1 cent per pound on car lots and li cents per pound on less than car lots. (d) In the case of brick, Limburger, and Munster cheese 1 cent per pound on car lots and 1| cents per pound on less than car lots. It should be understood that the above are maximum commissions which may at times be in excess of reasonable commissions. Rule 4. Intertrading restricted. The licensee in selling cheese shall keep it moving to the consumer in as direct a line as practicable and without unreason- able delay. The direct line of distribution of cheese is from a licensee in any of the following classes to a licensee in any succeeding class. (Issued June 12, 1918; repealed Jan. 6, 1919.) Class 1. Manufacturers. Class 2. Assemblers, wholesalers, and jobbers, including all licensees who receive cheese from manufacturers and grade and assemble cheese for sale, or who distribute it in any way except at retail, and all manufacturers who per- form the service customarily performed by an assembler, wholesaler, or jobber. Class 3. Retailers, hotels, restaurants, and institutions. NOTE. Any transactions that savor of dealing in which a profit accrues to the dealer without corresponding service are clear violations of the rule and will subject the offender to revocation of his license and to such other penalty as the law provides. GOVERNMENT REGULATIONS RELATING TO PRICES. 633 The following kinds of sales between dealers will be considered justifiable, but sales other than those described between dealers in the same class will be considered as prima facie evidence of violation of the rule : A. A sale by any dealer in cheese to a dealer in any succeeding class will be con- sidered as in the direct line of distribution. B. One sale and only one sale of the same cheese between dealers in class 2 in the same city will be considered justifiable when necessary to supply the reasonable require- ments of the buyer's business, without the special consent of the local Federal food administrator, provided, however, that a second sale of the same cheese between dealers in class 2 in the same city will be permitted without the consent of the local Federal food administrator if this sale is made at an advance over cost of not more than one- half of the margin indicated above, and provided that the seller notifies the buyer that this is a second sale. C. In addition to such sales as are otherwise indicated as justifiable, sales between dealers in class 2 in different cities will be considered justifiable, provided that an actual delivery of the cheese follows the sale, and that the shipment is for the purpose of obtaining supplies from primary markets for the reasonable requirements of the pur- chaser's business ; provided further, that not more than three such sales are made of any lot of cheese without special permission. D. Any sale between dealers without any advance over cost will be considered as justifiable in addition to such other sales as are permitted. Rule 5. The licensee making a second sale in the same class to notify buyer. The licensee in class 2 as deiined in rule 4 who purchases cheese from another assembler or dealer in such class or from a manufacturer performing the serv- ices of an assembler or dealer and who sells to another dealer in class 2, shall notify such dealer of the prior sale and of all other prior sales of such cheese within that class of which he has knowledge. (Issued June 12, 1918; repealed Jan. 6, 1919.) NOTE. This information should be disclosed at the time of the transaction and should be placed by the seller upon the invoice in order that there shall be a permanent record. B. ADDITIONAL REGULATIONS GOVERNING COMMISSION MER- CHANTS, BROKERS, AND AUCTIONEERS DEALING IN CHEESE. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- reasonable, discriminatory, or unfair commission or brokerage on the sale of cheese. (Issued Dec. 9, 1918; repealed Jan. 6, 1919.) NOTE. The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administration, before such increased rates are put into effect. The rates to be charged by a commission merchant are more specifically treated under A, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered. The licensee shall remit promptly following the sale of cheese received on consign- ment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to "food commodities"; repealed Jan. 6, 1919.) Rule 3. Agent not to buy from principal unless noted on account of sales. The licensee shall not, directly or indirectly, sell consigned cheese, or cheese with the sale of which on commission he is intrusted, to himself or to any one connected with his business unless he notes the facts of such transaction on the account of sales. (Issued Nov. 1 1917, as to " food commodities " ; repealed Jan. 6, 1919.) From November 1, 1917, to April 16, 1918. the rule governing all commission mer- chants, brokers, and auctioneers which limited their charges to " that which ordinarily and customarily prevails under normal conditions in the locality in which * * * their business is conducted * * * " applied to these dealers in perishables. C. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN CHEESE. The attention of all retail dealers in cheese is called to A, Rule 1 of the above regulations, headed: CHEESE TO BE SOLD AT REASONABLE ADVANCE OVER COST. Under the above rule the retail section of the distribution of perishables of the United States Food Administration will consider the sale of American or Cheddar cheese at an advance in excess of 7 or 8 cents per pound over cost (as 634 HISTORY OF PRICES DURING THE WAR. defined in rule 1) as unreasonable and as evidence of violation of rule 1. The 7 cents per pound represents the maximum margin for stores conducted on the cash and carry or no service plan, while 8 cents per pound is the maximum for the extra service stores extending credit and delivery. Dealers whose delivered store-door cost figures in fractions may have the benefit of such fractional cost. CASH AND CARRY STORES. Amount of sale. Cost. Margin. Total. Fraction added. Maximum selling price. Cents. 26 Cents. 7 Cents. Cents. Cents. 34 2 pounds 524 14 66i 67 3 pounds 96f 21 117J 118 In determining margins at 7 and 8 cents per pound on cheese with the fractional cost in the dealer's favor, the United States Food Administration has given duo consideration to the rising costs of operation, which must be met by the dealer. In addition to the above margin a retailer who carries American or Cheddar cheese in a warehouse for more than 30 days may add not to exceed one-fourth cent per pound per month for each and every month after the 30-day period during which the cheese is held in the warehouse by him, but in no case shall the amount added exceed 2 cents per pound, and no further amount shall be added by the dealer after nine months from the date of original storage. Dealers should understand that if they average costs they must average the cost of each grade and style separately. XXIV. REGULATIONS GOVERNING COLD-STORAGE WAREHOUSE- MEN. Rule 3. Schedules of rates to be filed. Licensees shall submit on blanks to be furnished for that purpose a statement or schedule showing present rates and charges for storage and other service on each commodity required to be licensed, together with all charges for labor, insurance on contents of ware- houses, and whether included in storage rate, cartage, if any, and whether in- cluded in storage rate, interest, and all other charges not enumerated. (Such schedule shall be open to inspection at the office of the Food Administration in Washington, D. C., and information as to any particular rate included in any such schedule may be given by mail or telegraph by the representatives of the Food Administration having control of such schedules to persons who, in their opinion, have proper reasons for requesting such information. A copy of such statement or schedule shall be open to inspection at the office of the ware- houseman by whom it is filed.) (Issued Nov. 1, 1917; added to Aug. 26, 1918; repealed Feb. 14, 1919.) NOTE. Attention is called to general rule 5, which prohibits licensees from making unjust, exorbitant, unreasonable, discriminatory, or unfair storage charges. The fact that a licensee files with the Food Administration his schedule of rates and charges under special rule 3 does not mean that the rates and charges in such schedule have the approval of the Food Administration. If the Food Administration at any time has reason to believe that any such rates or charges are unjust, unfair, exorbitant, unrea- sonable, or discriminatory, the licensee will be called upon to justify such rates or charges. Rule 4. No rates to be charged other than those in schedules filed.- -The licensee shall not demand, collect, or receive, directly or indirectly, from any patron or other person concerned any different sum for storage or other services per- formed than that shown on the schedule filed with the United States Food Ad- ministration, or make any charge for services or special allowance or rebate not shown on said schedule, unless he has filed with the United States Food Ad- ministration at least 30 days before the change in rate or charge becomes effec- tive an amendment to the schedule showing such change in rate or charge. (Issued Nov. 1, 1917, providing for amendment to storage rates to be filed 5 days before change is effective ; changed to 30 days Jan. 28, 1918 ; repealed Feb. 14, 1919.) NOTES. (1) By this rule a licensee is prohibited from storing licensed food com- modities at rates 'fixed by contract or other arrangement that differ from those specified in the filed schedule ; when amendments to any schedule are filed the new rates become effective 30 days after filing and at such time storing at the rates superseded by the amendments must cease, any arrangement or agreement to the contrary notwithstanding. GOVERNMENT REGULATIONS RELATING TO PRICES. 635 / (2) General rule ~> prohibits cold storage licensees from making unreasonable or dis- criminatory charges in handling or storing food commodities. The United States Food Administration recognizes the principle that up to a certain point it ordinarily costs less per unit to handle large lots than small lots of a par- ticular commodity and has no objection to licensees charging a lesser rate per unit for large lots than for small lots if the differentiation in rates is based on variation of cost in handling the particular commodity. Hereafter the above-mentioned principle must be applied by cold-storage warehousemen in arranging any variations in rates contained in schedules of rates or amendments thereto that are filed. With respect to rate schedules now on file in which lower rates for large lots or dis- counts for quantity are stated, no objection has been or will be made to differentiations in rates unless they are obviously merely arbitrary or discriminatory, or in effect con- stitute a preference to one or a few patrons, or unless, upon investigation, they are found to be without reasonable justification. All rates must, of course, be contained in the schedule required to be filed with the United States Food Administration and must be clear, explicit, well defined, and intel- ligible. Every patron is entitled to Isnow his exact classification and the specific rate he is to be charged. Hule 5. Public cold-storage warehousemen not to lend more than 70 per cent of the value of stored goods. The licensee shall not make any loan on licensed commodities stored with him, or Incur liability by indorsement, guarantee, or otherwise, in connection with any loan on licensed commodities stored with him, in excess of 70 per cent of the market value of such commodities on the date of said loan. A margin of not less than 30 per cent on each loan shall be maintained at all times. (Any advances made by the licensee on the goods upon which the loan is made, such as freight, cartage, or insurance, shall be included in the 70 per cent of the market value permitted above.) Loans upon licensed and unlicensed commodities shall in all cases be made separately. (Issued Nov. 1, 1917; added to Aug. 26, 1918; repealed Feb. 14, 1919.) NOTES. (1) An advanced charge arises through the payment of money by the ware- houseman to some third person, or the assumption of an indebtedness by the ware- houseman, with reference to the goods upon which the loan is based. For example, a charge for insurance, freight, or cartage, or prior storage, which the warehoxiseman has paid or assumed to pay, is an advanced charge, and must be included in estimating the amount of the loan permitted by this rule. On the other hand, the indebtedness to the warehouseman making the loan for storage charges on the goods or interest on the loan, or any other item which does not repre- sent an advance by the warehouseman to or for the customer with reference to the goods stored, is not an advanced charge and need not be included in estimating the amount of the loan permitted by this rule. (2) A cold-storage* warehouseman in releasing or delivering out any licensed com- modities on which such loans as are mentioned in this rule have been made, shall, if such release or deliA'ery would result in the margin on the loan being reduced to less than 30 per cent, require and obtain before or at the time such release or delivery is made a sufficient payment so that the amount of the loan is reduced and the required margin of at least 30 'per cent is at all times preserved. (3) A combined public and private cold-storage warehouseman who sells on credit food commodities required to be licensed and transfers title thereto and who there- after stores such commodities which remain security for the unpaid portion of the purchase price, is by extending credit in such a transaction indirectly making a loan on such commodities within the meaning of this rule, and he must not so extend credit for more than 70 per cent of the market value of such commodities. XXV. FEEDING STUFFS. Rule 7 (as amended, effective Oct. 1, 1918). Feed to be sold at reasonable ad- vance over average cost. The licensee in any sale of feeding stuffs shall take no more than a reasonable profit for such sale over the average cost of his stock of any commodity on hand or under control not at that time contracted to be sold, and in arriving at the cost of grain he shall take into consideration the gain or loss resulting from any hedging transaction on a grain exchange. (This rule shall not apply to feeding stuffs (other than grain, hay, or seed) pur- chased by one wholesale feed dealer from another wholesale feed dealer, and no such feeding stuffs so purchased shall be included in calculating the average cost above referred to.) (Issued Jan. 28, 1918; added to Oct. 1, 1918; repealed Jan. 10, 1919.) NOTE. This rule does not apply to wheat mill feeds, cottonseed products, rice polish, rice bran, or dried beet pulp, which are dealt with under Special Regulations C and D. Marcjins and profits for icliolesalc dealers in feeding stuffs. The United States Food Administration considers that In sales of feeding stuffs at wholesale the advance on any individual sale should not in any case exceed the purchase price delivered at rail- road station, plus 15 per cent. The Food Administration will therefore consider any sale of feeding stuffs in excess of this advance as a violation of the foregoing rule. This margin will also apply to the sale of corn, oats, rye, or barley as feed, in assorted cars with .other feeding stuffs but not in straight carload quantities, but will not apply to wheat mill feeds, cottonseed products, rice polish, rice bran, or dried beet pulp, for 636 HISTORY OF PRICES DURING THE WAR. which special margins have been prescribed. For margins applying on straight carload shipments of grain, see the grain dealers' rules No. III-A. Furthermore, the Food Administration will consider an annual net earning by any wholesale dealer in feeding stuffs of more than 4 per cent upon the total gross sales, if his gross sales of feeding stuffs amount to $100,000 or more per annum to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits. In the case of dealers who handle wheat mill feeds, cottonseed products, rice polish, rice bran, and dried beet pulp, as well as other feeds, the 4 per cent will be calculated on all sales. The maximum margin on individual sales is purposely made wide because of the speculative character of the products dealt with and the fluctuating prices which may prevail. As pointed out, the general average on all sales must not exceed 4 per cent advance over the cost of materials and overhead, nor must this 4 per cent limitation modify or abrogate the general principle contained in the Food Administration regula- tions that a licensee shall not earn more than a reasonable net profit on his capital invested. Rule 8 (effective Oct. 1, 1918). Margins for wholesale dealer, on feeding stuffs bought from another wholesale dealer. No wholesale dealer in feeding stuffs shall sell any feeding stuffs which he has purchased from another wholesale dealer, other than grain, hay, or seed, at an advance over the average cost to the dealer who bought direct from the manufacturer, greater than would be reasonable for the first dealer to charge if selling direct to a retailer. No wholesale dealer shall purchase feeding stuffs from another dealer without obtaining from him a written statement giving the average delivered purchase price paid by the dealer who purchased direct from the manufacturer for his stock of such commodity and the margin which he has added. (Repealed Jan. 10, 1919.) NOTE. The Food Administration has considered the advisability of prohibiting all resales of feeding stuffs between wholesale feed dealers, but has decided, under the above rule, to permit such resales if the total margin charged by the wholesale dealers does not exceed the margin which would be considered reasonable if the product passed through the hands of one dealer only. Rule 9 (as amended Dec. 31, 1918). No resales unless cost and margin are stated on sales memorandum and invoice. No wholesaler or jobber shall sell feed unless he states upon his contract or sales memorandum and upon the invoice the average delivered purchase price of his stock of such commodity on hand or under control at the time they are contracted to be sold, or in cases wheYe he purchased feeding stuffs other than grain or seed from another wholesale feed dealer the average delivered purchase price paid by the dealer who bought direct from the manufacturer, provided, however, that this rule shall not apply to sales of wheat mill feeds. (Issued Oct. 1, 1918; added to Dec. 31, 1918; repealed Jan. 10, 1919.) NOTE. Under the above rule the following notation should be made on the contract or sales memorandum and upon the invoice by every jobber of feed : " This invoice is sold on the basis of an average purchase price of $ per ton. I have added a gross margin of $ per ton." If the feed, other than grain or seed, has been purchased from another feed dealer, the following notation should be made : " This invoice is sold on the basis of an average purchase price (when bought from manufacturer) of $ per ton. " The first dealer added a gross margin of $ per ton and freight of $ per ton. I have added a gross margin of $ per ton." C. SPECIAL REGULATIONS APPLYING TO WHEAT MILL FEEDS. NOTE. Wheat mill-feed prices. All wheat millers should sell wheat mill feed on a fair-price schedule which is based on the Government wheat price and which is furnished to each mill. The rules require that upon request the mill furnish to any person a copy of its fair-price schedule as prescribed by the United States Food Administration. The purchaser is abetting a violation of the milling rules if he pays more for feed than is permitted thereby. Rule 2 (as amended, effective Oct. 1, 1918). One commission not to exceed 50 cents a ton permitted on consigned feed. No licensee selling the above feeds as a commission agent for the sale of consigned wheat mill feeds making sale, delivery, and collection shall charge more than a reasonable commission, not to exceed 50 cents per ton ; and no licensee shall charge a commission on any of the above feeds on which a commission has already been charged. (Rule issued Feb. 13, 1918, provided brokerage not to exceed 25 cents per ton on wheat mill feed and prohibited double brokerage ; changed Oct. 1, 1918, as noted here, by addition of commodities ; repealed Dec. 31, 1918. ) NOTE. Commission or brokerage must be paid out of the margin or price allowed by the regulations to the person paying the commission or brokerage and must not be added to price charged. GOVERNMENT REGULATIONS RELATING TO PRICES. 637 Rule 3 (as amended, effective Oct. 1, 1918). Reasonable margins fixed for deal- ers. No licensee buying and selling the above feeds as a wholesaler or jobber shall charge more than a reasonable advance over the bulk price at mill of the particular feed sold (plus freight and cost of sacks), such advance not to exceed the following: Shipment from mill or in transit, payment cash, demand draft, or sight draft, $1 per ton. Shipment from mill or in transit, sale on arrival, draft terms, $1.50 per ton. Sale ex-jobbers' warehouse, payment cash, sight draft or demand draft, $2.50 per ton. Sale ex-jobbers' warehouse upon arrival draft terms, $3 per ton. In making sales on credit not to exceed $1 per ton may be added to the margin which could be charged if sold on arrival draft terms. (Rule issued Feb. 13, 1918, applied only to wheat mill feeds; changed Oct. 1, 1918, as noted here, by addition of commodities ; repealed Jan. 10, 1919. ) C (a). SPECIAL REGULATIONS APPLYING TO RICE POLISH, RICE BRAN, AND DRIED BEET PULP. NOTE. Rice feed prices. Under a uniform agreement with, the United States Food Administrator, all rice millers have agreed to sell rice polish at not to exceed $50 per ton, packed in customary manner, car lots, f. o. b. mills, and rice bran at not to exceed $36 per ton, packed in customary manner, car lots, f. o. b. mills. Beet pulp prices. The United States Food Administration has fixed the following prices for beet pulp as returning a fair margin of profit to the beet-sugar manufacturers : Ter ton. Wet boot pulp, bulk, mill $0. 80 Wet beet pulp out of silo, bulk, mill _ 1. 25 Dried beet pulp, sacked, f. o. b. factory, in car lots 40. 00 Rule 1 (as amended Dec. 31, 1918). One brokerage not to exceed 25 cents a ton permitted. No licensee selling the above feeds as a broker shall charge more than a reasonable brokerage, not to exceed 25 cents per ton. (Rule issued Feb. 13, 1918, provided brokerage not to exceed 25 cents per ton on wheat, mill feed, and prohibited double brokerage; changed Oct. 1, 1918, to include rice polish, rice bran, and dried beet pulp; changed Dec. 31, 1918, as noted here wheat, mill feed not included ; repealed Jan. 10, 1919. ) Rule 2 (repealed Dec. 31, 1918). One commission not to exceed 50 cents a ton permitted on consigned feed. Rule 3 (as amended, effective Oct. 1, 1918). Reasonable margins fixed for deal- ers. No licensee buying and selling the above feeds as a wholesaler or jobber shall charge more than a reasonable advance over the bulk price at mill of the particular feed sold (plus freight and cost of sacks), such advance not to ex- ceed the following: Shipment from mill or in transit, payment cash, demand draft or sight draft, $1 per ton. Shipment from mill or in transit, sale on arrival draft terms, $1.50 per ton. Sale ex-jobbers' warehouse, payment cash, sight draft or demand draft, $2.50 per ton. Sale ex-jobbers' warehouse, upon arrival draft terms, $3 per ton. In making sales on credit not to exceed $1 per ton may be added to the margin, which could be charged if sold on arrival draft terms. Rule 4. No resales of wheat mill feeds if total margin exceeds that prescribed in rule 3. No wholesaler or jobber shall sell wheat mill feed to any person other than a retail dealer, manufacturer, or a consumer ; provided, that he may sell to another wholesaler or jobber if in making such sales he states to the buyer the price which was paid bulk mill for the particular wheat mill feeds sold in such case. The buyer shall not sell such mill feed at more than the advances specified in rule 3 over the bulk mill price of the particular wheat mill feed bo purchased from another wholesaler or jobber. (Issued Feb. 13, 1918; see rule 4 following; repealed Oct. 1, 1918.) Rule 4 (repealed Oct. 1, 1918). No resales of wheat mill feeds if total margin exceeds that prescribed in rule 3. Dealers in wheat mill feeds as well as other feeds are now governed as to resales by rules B 7, 8, 9, which see above. D. SPECIAL REGULATIONS APPLYING TO DEALERS AND BUYERS IN COTTONSEED CAKE, COTTONSEED MEAL, COTTONSEED HULLS, PEANUT MEAL, AND SOYA-BEAN MEAL. Rule 1. To be sold at reasonable advance over cost of particular lot sold. The licensee shall sell the above commodities at not more than a reasonable ad- vance over the actual cost of the particular commodity sold, without regard to the market or replacement value at the time of sale. (Issued Aug. 1, 1918; 638 HISTORY OP PRICES DURING THE WAR, repealed as to all except cottonseed products Jan. 10, 1919; repealed as to cot- tonseed products May 31, 1919.) NOTE. Until further notice tlic United States Food Administration will regard any resale of cottonseed meal or cake by jobbers or wholesalers at margins in excess of the following as unreasonable and in violation of the foregoing rule : Shipment from mill or in transit, payment cash, demand draft or sight draft, $1 per ton. Shipment from mill or in transit, Palo on arrival draft terms, $1.50 per ton Sale ex-jobbers' warehouse, payment cash, sight draft, or demand draft where meal or cake is actually handled through the warehouse, $2.50 per ton. Sale ex- jobbers' warehouse upon arrival draft terms where meal or cake is actually handled through the warehouses, $3 per ton. In making- sales on credit except to other wholesalers not to exceed $1 per ton may be added to the margin which could be charged if sold on arrival draft terms. Rule 2. New crop cottonseed products not to be bought or sold before Au- gust 1. The licensee shall not buy or sell cottonseed meal, cottonseed cake, or cottonseed hulls, made or to be made from new-crop cotton seed, grown in the United States before August 1 of the year in which such cotton seed is grown. (Issued Aug. 1, 1918; repealed Dec. 17, 1918.) NOTE. Under special rule B-3 these products can only be bought or sold after August 1, for 60 days' delivery. Eule 3. Quotations based on protein or fat content. Licensees who base quota- tions of cottonseed meal or cake upon either the protein or fat content, or combination thereof, shall not use any range of percentages, but shall state that the product offered contains not less than a definite percentage. (Issued Apr. 4, 1918; repealed Dec. 17, 1918.) Note to rule 1. Resales are forbidden by rule B-8 unless they divide the above margin. Under the stabilization program of the United States Food Administration based on the price of cotton seed at the average agreed upon by the producers and the Food Admin- istration, the following prices have been arranged for cottonseed meal, cake, and hulls : Cottonseed meal and screened cracked cake 43 per cent protein in any quantity $57 per ton in sacks, f. o. b. all points of manufacture in Texas. Cottonseed meal and screened cracked cake 40 per cent protein in any quantity $54 per ton in sacks, f. o. b. all points of manufacture in Oklahoma. Cottonseed meal and screened cracked cake 36 per cent protein in any quantity $51 per ton in sacks, f. o. b. all points of manufacture in Imperial County, Calif., and $55 per ton in sacks, f. o. b. all points of manufacture in Los Angeles County, Calif. Cottonseed meal and screened cracked cake 36 per cent protein in any quantity $53 per ton in sacks, f. o. b. all points of manufacture in Alabama, Arkansas. Florida, Georgia, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, and Tennessee. Bulk, loose, or slab cottonseed cake shall be not less than $5 per ton, and bulk or loos; 1 cottonseed meal and screened cracked cake shall be not less than $4 per ton under the prices specified above. All cottonseed meal, screened cracked cake, bulk cake showing protein content other llian above specified may be offered and sold at $1 for each unit protein over or under the percentages as shown above : Provided, Iwwever, if cottonseed meal or cake upon delivery is ascertained to be of lower protein content than justified by price charged any refund must be made at the rate of $1.40 per unit protein. Each shipment or delivery shall be considered separately and without relation to the whole contract. This rule must not be construed in any way as an exception to the pure food act of 1906 or any of the amendments thereto. Cottonseed hulls, bulk or loose, $20 per ton, f. o. b. cars at point of manufacture. Prices specified are net to manufacturer. Terms of sale are upon the basis of cash or its equivalent. All manufacturers are urged to give preference in the sales of their products to producers and consumers. Under the Food Administration regulations manufacturers of cottonseed meal, cake, and hulls are not permitted, to the exclusion of consumers, to make sales of their products to firms, factories, or corporations in which the corporation or the officers of the producing mill may be interested, without the written consent of the Food Administration. G. SPECIAL REGULATIONS APPLYING TO MANUFACTURERS OF COM- MERCIAL MIXED FEEDS. pEorrr LIMITATION. Under rule B-7 prescribing a reasonable profit on the sale of feeding stuffs, the following announcement has been issued applying to the manufacture of commercial mixed feeds : Margins and pro-fit for mixed-feed manufacturers. The United States Food Administration considers that in the manufacture and sale of ground or crushed grains or ground hay, and of all commercial mixed feeds, the advance on any individual sale should not exceed the cost of materials, manufacturing, and over- head, plus 12* per cent. The Food Administration will therefore consider un- reasonable and as a violation of the foregoing rule any sale of such feeds in excess of this advance. Furthermore, the Food Administration will consider an annual net earning or more than 6 per cent upon the total gross sales of any such feeding stuffs if the dealers' gross sales amount to $100,000 or more per annum to be prima facie evidence of a violation of the rule which prohibits the taking of unreason- able profits. GOVEKNMENT REGULATIONS RELATING TO PRICES. 639 The maximum margin on individual sales is purposely made wide because of the speculative character of the products which enter into such manufacture and the rapidly fluctuating prices which may prevail. As pointed out, the gen- eral average on all sales must not exceed 6 per cent advance over the cost of materials, manufacture, and overhead, nor does this 6-per cent limitation modify or abrogate the general principle contained in the Pood Administration regulations that a licensee shall not earn more than a reasonable net profit on his capital invested. The manufacture of mixed feeds is a business which varies in many respects according to the type of feed, the expense of manufacture, and the rapidity of turnover. There are therefore some manufacturers to whom a 6 per cent annual net profit may give an unreasonable return on their investment. In such case they are obliged to sell at a lower average return. One margin only. Mixed feed manufacturers are not allowed directly or indirectly to take any feed dealer's margin on their mixed feed. On feed which they buy and sell without mixing or processing in any manner they may take only the feed dealers' margins, and not that permitted to mixed feed manufacturers. Feed manufacturers may not establish any jobbing department for feeds of their own manufacture in order to obtain additional profits. Blackstrap molasses. The attention of feed manufacturers is called to the fact that refiners and manufacturers of sugar in the United States have been forbidden to sell blackstrap molasses in bulk at more than 18 cents per gallon, or in barrels, at more than 23 cents per gallon. The prices named are f. o. b. cars at primary markets or port of entry, or factory, net cash in 10 days with- out discount, and shall include brokerage and any profit taken by distributors in tank cars direct from the refiners, but shall not include freight or tank-car charges. Feed manufacturers should be able to buy blackstrap molasses at the above- prices in tank cars, paying in addition thereto only the freight and tank-car charges. An additional margin of 10 per cent is permitted to dealers in barrels who handle such barrels through their warehouse. The same rules apply to imported blackstrap molasses. J. SPECIAL REGULATIONS APPLYING TO RETAILERS OF FEED. Rule 1 (as amended Dec. 31, 1918). Margin over cost of particular feed pre- scribed on feeds whose price is stabilized. No retailer of rice polish, rice bran, dried beet pulp, or cottonseed products shall charge more than a reasonable advance over the delivered price of the particular feeds sold. (Rule issued Oct. 1, 1918, included wheat mill feeds. Changed Dec. 31, 1918, as noted here, wheat mill feed not included. Repealed Jan. 10, 1919, as to all except cotton- seed products. Repealed May 31, 1919, as to cottonseed products.) . NOTE. Under the above rule the Food Administration will consider any margins iu excess of those indicated in the following schedule as unreasonable in case of rice feed, and dried beet pulp. These schedules are maximum, and do not justify charges in excess of those customarily charged in any particular district or case where the lower charge;; will insure a reasonable profit. 1. Where oue or more farmers purchase in advance of delivery, in full carloads, take delivery at car and pay cash when retail dealer is required to meet sight draft, $1 per ton, plus demurrage, if any. 2. Where one or more farmers purchase in advance of delivery, in full carloads, take delivery at car and pay for it on delivery, $1.50 per ton, plus demurrage, if any. 3. Where a farmer purchases and takes delivery at car and pays for it on delivery in ton lots or more but less than car lots, $2 per ton. 4. Where farmer purchases and takes delivery at car and pays for it on delivery in lots less than one ton, $2.50 per ton. 5. Sale ex-warehouse in lots of one ton or more, $4 per ton. G. Sale ex-warehouse in lots of less than one ton, $5 per ton. 7. One dollar may be added to the foregoing margins when sale is made on credit, or at dealer's option the legal rate of interest may be charged. 8. One dollar shall be deducted from the margins prescribed in 5 and 6 when the retailer buys on credit and the jobber's margin is thereby increased $1 a ton. Cottonseed products. The above margins will also apply to the sale of cottonseed meal, cake, and hulls by retail feed dealers, except where different margins have been prescribed by the Federal food administrator of the State where the dealer is located. Margins and profits for retail dealers in feeding stuffs. The United States Food Ad- ministration considers that in sales of feeding stuffs at retail the advance on any indi- vidual sale should not in any case exceed the purchase price delivered at warehouse door, plus 15 per cent. Where delivery is made to the consumer, reasonable cartage charges may be added. The Food Administration will therefore consider any sale of feeding stuffs in excess of this advance as a violation of rule B-7. This margin also applies to the sale of corn, oats, rye, or barley at retail as feed, but not to wheat mill feeds, cotton- scrd products, rice products, or dried beet pulp. Special margins for cottonseed products, rice products, and beet pulp are prescribed above. Futhermore. the Food Administration will consider an annual net earning by any retail dealer of feeding stuffs of more than 6 per cent upon the total gross sales if his gross sales of feeding stuffs amount to $100,000 or more per annum to be prima facie evidence of a violation of tbe rule which prohibits the taking of unreasonable profits. This 6 per cent will be calculated on tbe sales of all feeding stuffs, including those specially listed above and also wheat mill feeds. 3. FUELS. The basis for all of the formal regulations over fuel prices during the war lay in section 25 (commonly known as the Pomerene amendment) of the food-and- fuel control act which was made law r on August 10, 1917. 1 An informal control 1 There follows in full the section of the food-and-fuel control act of August 10, 1917, which pertains to control over fuel prices : SEC.. 25. That the President of the United States shall be, and he is hereby, authorized and empowered, whenever and wherever in his judgment necessary for the efficient prose- cution of the war to fix the price of coal and coke wherever and whenever sold, either by producer or dealer, to establish rules for the regulation of and to regulate the method of production, sale, shipment, distribution, apportionment, or storage thereof among deal- ers and consumers, domestic or foreign ; said authority and power may be exercised by him in each case through the agency of the Federal Trade Commission during the war or for such part of said time as in his judgment may be necessary. That if, in the opinion of the President, any such producer or dealer fails or neglects to conform to such prices or regulations, or to conduct his business efficiently under the regulations and control of the President as aforesaid, or conducts it in a manner preju- dicial to the public interest, then the President is hereby authorized and empowered in every such case to requisition and take over the plant, business, and all appurtenances thereof belonging to such producer or dealer as a going concern and to operate or cause the same to be operated in such manner and through such agency as he may direct during the period of the war or for such part of said time as in his judgment may be necessary. That any producer or dealer whose plant, business, and appurtenances shall have been requisitioned or taken over by the President shall be paid a just compensation for the use thereof during the period that the same may be requisitioned or taken over as afore- said, which compensation the President shall fix or cause to be fixed by the Federal Trade Commission. That if the prices so fixed, or if, in the case of taking over or requisitioning of the mines or business of any such producer or dealer the compensation therefor as deter- mined by the provisions of this act be not satisfactory to the person or persons entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined, and shall be entitled to sue the United States to recover such further sum as added to said seventy-five per centum, will make up such amount as will be just com- pensation in the manner provided by section twenty-four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. While operating or causing to be operated any such plants or business the President is authorized to prescribe such regulations as he may deem essential for the employment, control, and compensation of the employees necessary to conduct the same. Or if the President of the United States shall be of the opinion that he can thereby better provide for the common defense, and whenever, in his judgment, it shall be neces- sary for the efficient prosecution of the war, then he is hereby authorized and empowered to require any or all producers of coal and coke, either in any special area or in any special coal fields, or in the entire United States, to sell their products only to the United States through an agency to be designated by the President, such agency to regu- late the resale of such coal and coke, and the prices thereof, and to establish rules for the regulation of and to regulate the methods of production, shipment, distribution, ap- portionment, or storage thereof among dealers and consumers, domestic or foreign, and to make payment, of the purchase price thereof to the producers thereof or to the person or persons legally entitled to said payment. That within fifteen days after notice from the agency so designated to any producer of coal and coke that his, or its, output is to be so purchased by the United States as hereinbefore described, such producer shall cease shipments of said product on his own account and shall transmit to such\ agency all orders received and unfilled, or partially unfilled, showing the exact extent to which shipments have been made thereon, and there- after all shipments shall be made only on authority of the agency designated by the President, and thereafter no such producer shall sell any of said products except to the United States through such agency, and the said agency alone is hereby authorized and empowered to purchase during the continuance of the requirement the output of such producers. That the prices to be paid for such products so purchased shall be based upon a fair and just profit over and above the cost of production, including proper maintenance and depletion charges, the reasonableness of such profits and cost of production to be deter- mined by the Federal Trade Commission ; and if the prices fixed by the said commission 640 GOVERNMENT REGULATIONS RELATING TO PRICES. 641 was, however, previously exercised over anthracite prices in particular by the Federal Trade Commission and over bituminious prices by the coal production committee of the Council of National Defense. The President, by authority from the food and fuel control act, issued a provisional schedule of bituminous coal prices on August 21, 1917, another of anthracite coal prices on August 23, and also named Mr. Harry A. Garfield as United States Fuel Administrator on August 23, 1917. The whole body of fuel-price controls thenceforth were ad- ministered through the United States Fuel Administration at Washington. The United States Fuel Administration was concerned with distribution, production, conservation, and price regulation over domestic coal, but this inquiry pertains only to the price controls exercised by it. The price regula- tions which are tabulated here cover in full the field marked out by the legal division of the Fuel Administration, as compiled officially by them in " general orders, regulations, and rulings of the United States Fuel Administration." They have been brought down to date by assistance from the Fuel Adminis- tration, since the above official compilation covers only the rulings from August 23, 1917, to January 1, 1919. of any such product purchased by the United States as hereinbefore described be unsatis- factory to the person or persons entitled to the same, such person or persons shall be paid seventy-five per centum of the amount so determined and shall be entitled to sue the United States to recover such further sum as added to said seventy-five per centum will make up such amount as will be just, compensation in the manner provided for by section twenty-four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. All such products so sold to the United States shall be sold by the United States at such uniform prices, quality considered, as may be practicable, and as may be deter- mined by said agency to be just and fair. Any moneys received by the United States for the sale of any such coal and coke may, in the discretion of the President, be used as a revolving fund for further carrying out the purposes of this section. Any moneys not so used shall be covered into the Treasury as miscellaneous receipts. That when directed by the President, the Federal Trade Commission is hereby re- quired to proceed to make full inquiry, giving such notice as it may deem practicable, into the cost of producing under reasonably efficient management at the various, places of production the following commodities, to wit, coal and coke. The books, correspondence, records, and papers in any way referring to transactions of any kind relating to the mining, production, sale, or distribution of all mine operators or other persons whose coal and coke have or may become subject to this section, and the books, correspondence, records, and papers of any person applying- for the purchase of coal and coke from the United States shall at all times be subject to inspection by the said agency, and such person or persons shall promptly furnish said agency any data or information relating to the business of such person or persons which said agency may call for, and said agency is hereby authorized to procure the information in refer- ence to the business of such coal-mine operators and producers of coke and customers therefor in the manner provided for in sections six and nine of the* act of Congress ap- proved September twenty-six, nineteen hundred and fourteen, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," and said agency is hereby authorized and empowered to exercise all the powers granted to the Federal Trade Commission i>y said act for the carrying out of the purposes of this section. Having completed its inquiry respecting any commodity in any locality, it shall, if the President has decided to fix the prices at which any such commodity shall be sold by producers and dealers generally, fix and publish maximum prices for both producers of and dealers in any such commodity, which maximum prices shall be observed by all producers and dealers until further action thereon is taken by the commission. In fixing maximum prices for producers the commission shall allow the cost of produc- tion, including the expense of operation, maintenance, depreciation, and depletion, and shall add thereto a just and reasonable profit. In fixing such prices for dealers the commission shall allow the cost to the dealer and shall add thereto a just and reasonable sum for his profit in the transaction. The maximum prices so fixed and published shall not be construed as invalidating any contract in which prices are fixed, made in good faith, prior to the establishment and publication of maximum prices by the commission. Whoever shall, with knowledge that the prices of any such commodity have been fixed as herein provided, ask, demand, or receive a higher price, or whoever shall, with knowl- edge that the regulations have been prescribed as herein provided, violate or refuse to conform to any of the same, shall, upon conviction, be punished by fine of not more than $5,000, or by imprisonmnt for not more than two years, or both. Each independent transaction shall constitute a separate offense. Nothing in this section shall be construed as restricting or modifying in any manner the right the Government of the United States may have in its own behalf or in behalf of any other Government at war with Germany to purchase, requisition, or take over any such commodities for the equipment, maintenance, or support of armed forces at any price or upon any terms that may be agreed upon or otherwise lawfully determined. 125547 20 41 642 HISTORY OF PRICES DURING THE WAR. The formal control over prices of coat and coke was discontinued by the Fuel Administration on January 31, 1919, and the orders governing the oil industry were set aside on May 15, 1919. Regulations affecting the prices of fuel are here arranged under the following heads in the sequence indicated: Anthracite coal, bituminous coal, coke, jobbers' margins and distributers' commissions, retail margins, and petroleum stabilization. ANTHRACITE COAL. The maximum prices of anthracite coal were provisionally fixed by order of the President on August 23, 1917. The prices named in that order, effective on September 1, 1917, were made applicable to the following specific producers : Philadelphia & Reading Coal & Iron Co.; Lehigh Coal & Navigation Co.; Lehigh & Wilkes-Barre Co.; Hudson Coal Co.; Delaware & Hudson Co.; Scranton Coal Co. ; Lehigh Valley Coal Co. ; Coxe Bros. & Co. ; Pennsylvania Coal Co. ; Hillside Coal & Iron Co. ; Delaware, Lackawanna & Western Rail- road Co. ; Delaware, Lackawanna & Western Coal Co. ; Susquehanna Coal Co. ; Susquehanna Colleries Co. ; Lytle Coal Co. ; M. A. Hanna Coal Co. Other producers were not to exceed the scheduled fixed prices by more than 75 cents per ton, but any producer rescreening at Atlantic or Lake ports for shipment by water might increase the price by not more than 5 cents per ton. All anthracite prices, unless otherwise noted, were maximum prices per ton of 2,240 pounds, f. o. b. cars at mine. The anthracite prices scheduled do not include allowance for a wage increase under the President's order of Decem- ber 5, 1917. The increase of 35 cents per ton provided in that order should be added to all except the Arkansas prices after December 5, 1917. A digest of the prices contained in the President's order, and the later modifications and additions made by the Fuel Administrator, follows :* SCHEDULE OF ANTHRACITE BASE PRICES. Commoditj". Date when effective. Price fixed per ton. Commodity. Date when effective. Price fixed per ton. White-ash grade: Broken Sept 1 1917 $4.55 Red-ash grade -Contd. Chestnut Sept 1 1917 $4 % Egg ...do... 4.45 Pea d'o 4 10 Stove do 4 70 Do Oct 1 1917 3 50 Chestnut ...do 4.80 Lykcns Valley grade: Pea do * 4 00 Broken Sept 1 1917 5 00 Do Oct. 1,1917 3.40 Egg do 4 90 Red-ash grade: Stove . do 5.30 Broken Sept. 1, 1917 4.75 Chestnut do 5 30 Egg ...do... 4.65 Pea... do 4.35 Stove do 4.90 Do Oct 1 1917 3 75 1 Prices of all Arkansas anthracite, except slack, were subject to the following reduc- tions per ton for the summer of 1918 : April, 90 cents ; May, 75 cents : June, 60 cents ; July, 45 cents ; August, 30 cents ; September, 15 cents. Coal at docks on Lake Michigan or Lake Superior were subject to a general summer reduction of 30 cents per gross ton until September 1, 1918. Coal prices at Lake ports were based on freight rates effective- June 25, 1918, from the mines to Lake Erie ports. Virginia and West Virginia anthra- cite was subject to a summer reduction of 30 cents per net ton from April 1 to September 1, 1918. GOVERNMENT REGULATIONS RELATING TO PRICES. SCHEDULE OF ANTHRACITE BASE PRICES Continued. 643 Commodity. ** ! Price fixed per ton. Commodity. Date when effective. Price fixed per ton. Bernice mines. Spadra '. field. Bernice mines. Spadra field. Arkansas mines: ! Grate Jan. 5,1918 $7.30 7.55 8.30 8.30 6-30 2.85 2.50 7.75 8.00 8.75 8.75 $6.80 6.80 Arkansas mines- Continued . Pea May 15,1918 .. do $6.75 2.85 2.50 8.75 9.00 9 75 S5.25 Eec do Stove do . . Buck . . No 4 do 7.30 4.80 Slack do 2.50 8.75 8.75 Pea do Grate Buck do Egg Slack do 2.50 7.25 7.25 Stove Grate . May 15,1918 No. 4... 9.75 6.75 4.75 9.25 5.25 Egg do Pea Stove do Buck No. 4 . do. 7.75 Slack 2.50 2.50 ^ Date when Commodity. effective. Price fixed per ton. Commodity. "*$ Price fixed per ton. Coal at Great Lake docks: Broken June 25, 1918 $10.20 10.10 10.35 10.45 8.80 5.40 5.75 5.75 4.60 Virginia Continued . Buckwheat July 22, 1918 i $1.55 .90 5.30 5.40 5.75 5.75 5.30 4.60 Egg d Culm dc Stove . .. do .... Briquettes do Nut do West Virginia: Egg Aug. 29,1918 > Pea do Virginia: Egg Jnlv 22,1918 ). . . Stove . dc Nut do Stove dc Briquettes do. . . . Nut do Pea and smulle Pea do Price fixed per ton. Commodit Price fixed per ton. Commodity. 1 Compa- nies. s Individ- uu Is. Compa nies. Individ- uals. White-ash grade: Broken $5.95 5.85 6.10 6.20 4.80 6.15 5.45 6.30 $6.70 0-60 6.85 6-95 5.55 6-90 6.20 7.05 Red-ash grade Continued. Nut $6.30 4.90 6.40 6-30 6.70 6.70 5.15 $7.05 5.65 7.15 7.05 7.45 7.45 5.90 Egg Pea Stove ' Lykens Valley grade: Broken Nut Pea i Egg Red-ash grade: Broken Stove.. Nut Egg Pea Stove 1 Effective on coal mined on or after Nov. 1, 1918. NOTE. The anthracite price schedule has been revised to meet increased labor costs and includes only the actual additional cost of a recent adjustment of anthracite wages. The sizes scheduled comprise 70.6 per cent of the total anthracite output. Remaining anthracite sizes, comprising 29.4 percent of the output are nearly stationary at existing quotations, and no price adjustment was made as to them. Under order of November 16, 1918, maximum prices for the different sizes of anthracite smaller than "pea," f. o. b., mines, were made that for "pea"size less 50 cents per gross ton of 2,240 pounds. BITUMINOUS COAL. The maximum prices oi' bituminous coal at the mine were tentatively fixed for the entire country by order of the President on August 21, 1917. All bituminous coal prices were f. o. b. mine basis, per ton of 2,000 pounds, and do not include allowance for wage increase under the President's order of October 27, 1917. An increase of 45 cents per net ton, granted in that order, should be added to all prices, except those for coal mined in Alabama. 644 HISTORY OF PRICES DURING THE WAR. In Alabama a separate and satisfactory wage agreement was made between mine operators and mine workers and approved by the Fuel Administrator, modifying the terms of the President's order of October 27, 1917. This agree- ment became effective February 6, 1918. On April 20 new terms were agreed upon in Alabama and the allowance of 45 cents per net ton, as of the order of October 27, 1917, became effective May 15, 1918. On May 24, 1918, there was a general order reducing all prices for bituminous coal, fixed to that date, by the sum of 10 cents for each net ton of 2,000 pounds. A digest of the schedule of prices contained in the President's order and subsequent amendments made by the United States Fuel Administrator follow :* SCHEDULE OF BITUMINOUS BASE PRICES. [Prices fixed by the President on Aug. 21, 1917.] District. Run of mine. Pre- pared sizes. Slack or screen- ings. Alabama: Big Seam $1.90 S2.15 $1.65 2.15 2.40 1.90 Cahaba and Black Creek . ... 2.40 2.65 2.15 2.65 2.90 2.40 Colorado - 2.45 2.75 2.20 1.95 2.20 1.70 Third vein . 2.40 2.65 2.15 1.95 2.20 1.70 Iowa 2.70 2.95 2.45 2.55 2.80 2.30 Kentucky 1.95 2.20 1.70 Jellico 2.40 2.65 2.15 Maryland 2.00 2.25 1.75 2.70 2.95 2.45 Montana 2.70 2.95 2.45 New Mexico 2.40 2.65 2.15 Ohio: Thick vein - - - 2.00 2.25 1.75 2.35 2.06 2.10 3.05 3.30 2.80 2.00V 2.25 1.75 Tennessee: 2.30 2.55 2.05 Jellico - - - 2.40 2.65 2.15 Texas 2.65 2.90 2.40 Utah 2.60 2.85 2.35 3.25 3.50 3.00 West Virginia 2.00 2.25 1.75 2.50 2.75 2.25 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Alabama: Big Seam Oct. 1.1917 $2.15 $2.45 $1.85 Cahaba, Black Creek, Brookwood, Blue Creek Pratt Jaeger Jefferson Nickel Plate and Coal City do .do 2.85 2.35 3.10 2.65 2.45 2.05 Corona do 2.40 2.75 2.05 Montavello .do 2.40 4.00 2.15 Sunlight Mining Co., in Walker County Dec. 1,1917 2.85 3.10 2.45 Benoft Coal Mining Co. and Cordova Fuel Co., in Walker County . . . Dec. 6, 1917 2.85 3.10 2.45 1 Temporary schedules were published for the summer months allowing reductions, as follows : 1. Colorado : Domestic coal, domestic field April, 70 cents ; May, 50 cents ; June, 35 cents; July, 15 cents. Steam coal, Trinidad district April, 40 cents; May, 30 cents; June, 20 cents ; July, 10 cents. 2. Arkansas and Oklahoma : March, 75 cents ; April, CO cents ; May. 45 cents ; June, 30 cents ; July, 15 cents. 3. New Mexico: April, 50 cents; May, 40 cents; June, 30 cents; July, 20 cents; August, 10 cents. 4. Texas: April, 75 cents; May, 60 cents; June, 45 cents; July, 30 cents; August, 15 cents. GOVERNMENT REGULATIONS RELATING TO PRICES. 645 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Alabama Continued. Linn mines of Monroe- Warrior Coal & Coke Co., to supply Macon Ga Dec. 10 1917 $3.50 $4.00 $3 10 Gilbert Coal Mining Co., Walker County, and the Mount Carmel seam Dec. 20,1917 2.85 3.10 2 45 Climax seam, in or about Maylene, Shelby County Big Seam. IJpper Bench supersedes orders of Dec. 6 and Dec 20 1917 Jan. 17,1918 do 4.25 2.35 4.50 2.65 2.15 2.05 Cahaba Southern Coal Mining Co., Hargrove, Bibb County Feb. 4 1918 2.85 3.70 2.45 District 'No. 1, Big Seam group District No 2 Cahaba group Black Creek group Aug. 23,1918 .do 2.00 3.00 2.30 3.30 1.95 2.65 District No 3 Pratt group do . 2.40 2.60 2.00 District No. 4, Helena and Harkness seams and coal mined by No. 2 Belle Ellen mine in Youngjblood seam District No. 5, mines in the Climax seam,* in or about Mavlene Shelby County do do 2.45 4.15 2.75 4.40 2.25 2.05 Montovello Mining Co Oct. 7, 1918 3.65 3.90 3.15 Warrior Pratt Coal Co Oct. 18, 1918 2.25 2.50 2.00 West Helena Coal Co do 3 00 3 30 2 65 Montovello Stroven Coal Co Nov. 6,1918 3.65 3.90 2.65 Yolande Coal & Coke Co Dec. 15,1918 3.00 3.30 2.65 Arkansas: Thin vein seam, Hartford, Greenwood, Midland, Hackett, and Denning Oct. 1,1917 3.05 3.40 2.40 Paris field Oct 27 1917 4.50 2.00 Johnson, Franklin, and Sebastian Counties, except the Excelsior district Mar 29 1918 3.70 4.60 2.40 Logan and Scott Counties and Excelsior district of Sebastian County, namely, mines on the Midland Valley Railroad north of Montreal Junction and east of Hackett and west of, but not at, Greenwood . . . Colorado: Walsenberg, Canon City, Routt, Garfleld, Gunnison, Durango, Mesa, Pitkin, Montezuma, Delta, Mont- rose and Rio Blanca (domestic coal) do Oct. 10.1917 4.35 ^~ 3.00 5.15 4.00 2.60 1.50 Trinidad (steam coal) do 2.75 3.25 2.00 Do Mar. 11,1918 2.35 3.25 1.65 Northern field and El Paso (lignite) Oct 10 1917 2.45 3.50 1.00 Do Nov. 22,1917 2.45 3.50 1.25 Domestic (domestic coal) Mar. 11 1918 2.25 3.50 1.25 Lignite coal do 2 25 3 25 J.OO Florence, Fremont County, Williamsburg Slope Coal Co May 1 1918 2 25 4 25 1.25 Walsenberg district: Aztec Coal Mining Co., Caprock Fuel Co., Monument Valley Fuel Co., Caddell & Carlson, Premium Mining Co., Rugby Fuel Co., Gordon Coal Co., Black Canon Coal & Fuel Co.. Geo. McNally Coal Co., Black Hawk Coal Co., Ideal Fuel Co., Green Coal Co., Minnequa Coal Co June 14,1918 2.15 4.15 1.15 Nut . .... $3.65 Canon City: Royal Gorge mine, Gibson Lumber & Fuel Co June 15,1918 2. 65 4.15 1.40 Nut .. $3 65 Canon City district: Radiant mine Aug. 20,1918 2.15 4.15 1.15 Walsenberg district: Ravenwood mine, Rapson Min- ing Co., Cedar Hill Coal & Coke Co . , Oakdale Coal Co do 2.15 4.15 1.15 Trinidad district: Gray Creek mine, of the Victor Am. Fuel Co., Empire mine of the Empire Mining Co Canon City district: Wolf Park Coal Co Aug 30,1918 do 3.00 2.15 3.15 4.15 1.55 1.15 Reliance mine by Alliance Coal Co Oct. 8,1918 2.15 4.15 1.15 Temple Fuel Co Nov. 18 1918 2.15 3.40 1.55 G eorgia Apr. 5 1918 3.25 3.50 3.20 Illinois: McLean County Coal Co , retail only Oct. 27 1917 4.00 1.70 Counties of Peoria, Fulton, and Tazewell Dec. 8,1917 2.30 2.55 2.05 Illinois (third vein) northern field (conditional) and Matherville field, Mercer County do 2.65 2.90 2.40 Moweaqua Coal Mining & Manufacturing Co., Mowea- qua, Christian Countv Feb. 13,1918 2.40 2. C5 2.15 Assumption Coal & Mining Co. , Assumption, Christian County do 3.00 4 55 2.15 Spoon River Colliery Co., Ellis ville (listed in the northern Illinois field) . . do 2. 65 2.90 2.40 District No. 1: Mercer, Bureau, Kankakee, La Salle, Grundy, Will Putnam, Marshall, Livingston, Wood- ford, and McLean Counties.. . Mar. 23.1918 2.C5 2.90 2.40 646 HISTORY OF PRICES DURING THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Illinois Continued. District No. 2: Rock Islnnd, Henry, Warren, Knox, Stark, Peoria, Hancock, McDoriough, Henderson, Fulton, Tazewell, and Schuyler Counties District No. 3: Menard, Logan, Dewitt, Champaign, Vermilion, Sangamon, Macon, Pratt, Christian, Moultrie, Shelby, Greene, Macoupin and Mont- gomery Counties, and Madison County north of the latitudeof Alton; also all mines not included in other rulings Mar. 23,1918 do.. $2.40 2.00 . S2.f>0 2.20 $2.10 1 70 DistrictNo.4: Bond, St. Clair, Monroe, and Randolph Counties, and Madison County south of the latitude of Alton,and Clinton, Washington, and Perry Coun- ties, not including mines along the line of Illinois Central Railroad between Vandalia and Carbondale . . District No. 5: Jackson County, not including mines on the line of the Illinois Central Railroad between Carbondale and Duquoin do do 2.00 2.40 2.20 2.60 1.70 2.10 District No. 6: Marion, Jefferson, Franklin, William- son, Johnson, Hamilton, Saline, White, Gallatin, and mines along the mainline of the Illinois Central Railroad between Vandalia and Carbondale in Clin- ton, Washington, Perry, and Jackson Counties do 2 00 2 20 1 70 Macon County '. May 1,1918 2.25 2.50 1.70 Latham Coal & Mining Co. , Logan Count v Oct. 1,1918 2.05 2.25 1.75 Searls Coal Co., in Williamson County, passing through a li-inch screen Jan 6 1919 1 60 Indiana: Brazil block . Oct. 1 1917 2 95 1 70 Indiana May 1 1918 2 00 2 20 1 70 Brazil block do 2 95 3 25 1 70 Essanbee Mine Co., Vermilion County Aug. 19, 1918 2 30 2-50 2.00 Atlas Mining Co. at Linton Summit mine, Greene County Sept 25 1918 2 20 2 40 1 90 Iowa: Appanoose, Wayne, Boone, and Webster Counties Appanoose, Wayne, Boone, Webster, and Marion Counties Oct. 1, 1917 Mar. 11,1918 3.15 2 75 3.40 3.10 2.90 2.00 Marion County. . Apr. 5, 1918 2 70 2 95 2 45 Kansas: Mines at Leavenworth take prices for Platte County, Mo. . Oct 1 1917 3 15 3 40 2 90 Osage County . . do 2 55 4 00 2 30 Do Dec 1 1917 3 05 4 ^0 2 80 Cherokee and Crawford Counties, except shaft mines in Lightning Creek or upper thin vein and any min- ing operations in the State not covered by other rul- ings Apr 20 1918 2 70 2 95 2 45 Shaft workings in the Lightning Creek or upper thin vein in Cherokee and Crawford Counties do.. 3.65 3.95 2.45 Osage, Franklin, and Linn Counties. . do 3 50 4 50 2 80 Leavenworth County do 3 40 3 65 2 00 Cherokee and Crawford Counties ... Aug. 3, 1918 Nut run or stoker coal . $3 05 Mill coal 2 95 Kentucky: Whifley, Knox, Clay, and Bell Counties, Blue Gem district... . Nov 6, 1917 3 55 3 80 2 30 McCreary, Pulaski, Rockcastle, Jackson. Lee, Wolfe, Morgan, Lawrence, Johnson, Martin, Laurel, Whit- ley, Clay, Omsley, Knox, Bell, Breathitt, Perry, Leslie, Harlan, Magoffin. Boyd, Carter, Pike, and all of Floyd, Knott, and I/etcher Counties excepting coal produced from the thick- vein Elkhorn district in these three counties Whitley. Knox, Bell, and McCreary Counties, other than the Blue Gem district (conditional) Harlan, Perry, and Letcher Counties and operations in Pike County on the Levisa Fork of the Big Sandy River Oct. 11,1917 Dec. 3, 1917 \.pr 5 1918 2.40 2.65 2 20 2.65 2.90 45 2.15 2.40 1 95 East of the 85th degree of longitude except Harlan, Perry, Letcher, Pike, and Martin Counties. . do.. 2.65 2.90 2.40 Thacker district; operations in Pike County on the watershed of the Tug Fork of the Big Sandy River east of Williamson, on the Norfolk & Western Ry. . Kenova district; operations in Pike and Martin Coun- ties on the watershed of the Tug Fork of the Big Sandy River west of Williamson, on the Norfolk & Western Ry.. Apr. 20,1918 ...do.. 2.30 2.30 2.55 2.55 2.05 2.05 GOVERNMENT REGULATIONS RELATING TO PRICES. 647 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Kentucky Continued. Blue Gem coal produced in Knox and Whitley Coun- ties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Mar -1,1918 Aug. 19, 1918 ...do... $3.55 3.25 2.55 1.90 2.10 2.55 2.55 2.60 2.15 2.60 2.15 3.30 2.55 2.20 2.20 3.45 3.25 2.55 3.45 2.35 2.75 2.40 3.15 3.40 $3.80 3.50 2.80 2.'15 2.35 2.80 2.80 2.85 2.40 2.85 2.40 4.05 2.80 2.45 2.45 3.70 3.50 2.80 3.50 2.60 $2.40 2.50 2.30 1.60 1.85 2.30 2.30 2.30 1.85 2.30 1.85 2.30 2.30 1.95 1.95 2.30 2.50 2.30 2.30 2.00 Wallen Jellico Coal Co in Whitley County . Elkhora City Coal Co. and Guthrie Coal Co., in Pike County District No. 1, west of the 85th degree of longitude District No. 2, Harian, Letcher, and Perry Counties, except the operations in Perry County included in district No 3 ... Aug. 23,1918 do.. Loony Creek Coal Co Harian County Oct. 5,1918 .do. . . Reliance Coal & Coke Co., at the Glowrnar mine in Perry County Blue Gem coal mined in Knox and Whitley Counties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Oct. 28,1918 do Clover Fork, Golden Ash, King Harian, Lick Branch, Wilson Berger, East Harian, R. C. Tway, White Star, Harian Fox, ' Walliiis Creek, Harian Gas, Creech, Banner Fork. MeCoinb, Bear Branch, Ken- tucky Harian, Middleton, or Kentucky Coal Co. in Utility Gas Coal Co., Kanawha Knox Coal Co., Ben- netts Fork Coal Co., J. B. Blue Gem Coal Co., J. B. Jellico Coal Co., J. B. Straight Creek Coal Co., Paige Jellico Coal Co., and Pine Ridge Coal Mining Co. in Bell County . . . do 1 Spring Branch Coal Co., High Point Coal Co., Harlan- KeUioka Coal Co., J. L. Smith Coal Co., Adair Min- ing Co., Baileys Creek Coal Co., High Splint Coal Co., Wilson Berger Coal Co., and Black Mountain Coal Corporation in Harian County .. .do Blue Gem Coal mined in Knox and Whitley Counties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Dec. 7,1918 Aug. 23,1918 do Nut and slack through 1-i-inch bars $2. 55 District No. 3: East of the 85th degree of longitude, excepting Harian, Letcher, and Martin Counties; that part of Pike County on the watershed of the Tug Fork of the Big Sandy River, and that part of Perry County included in district No. 2, but including the operations in Perry County of Hazard Coal Co., Dia- mond Block Coal Co., ConevaCoalCorporation r Storm King Coal Co., C. H. McDonald Coal Co., Four Seam Block Coal Co., Daniel Boone Coal Co., Blue Grass Coal Corporation, Columbus Mining Co., No. 4 Coal Co.. and Walker's Branch Mining Co District No. 4, or Thacker: Operations in Pike Coun- ty on the watershed of theTug Fork of the Big Sandy River east of Williamson on the Norfolk & Western R R District No. 5, or Kenova: Martin County, and opera- tions in Pike County on the watershed of the Tug Fork of the Big Sandy River west of Williamson on the Norfolk & Western R. R ... .do The following producers are not included: Blue Gem Coal produced in Knox and Whitley Coun- ties by operators who are members of the Tri-County Blue Gem Coal Operators' Association .do. Coal produced in Whitley County by the Wallen- Jelhco Coal Co do Coal produced in Pike County by the Elkhorn City Coal Co and the Guthrie Coal Co do Kentucky Block Cannel Coal Co. south of the Licking River in Morgan County Sept. 25, 1918 do Norton Coal Co., White Plains Coal Co and B. D. Williams Coal Co. in the Empire or^ Mannington seam in Christian and Hopkins Counties . Maryland: The North Maryland Coal Mining Co. in Allegany County Dec. 3,1917 Feb. 1,1918 Oct. 27,1917 Nov. 30,1917 The upper Potomac, Cumberland, and Piedmont fields, comprising all coal mined in the State of Maryland and in parts of West Virginia Michigan 2.65 3.60 3.95 2.15 2.20 2.25 What Cheer Mining Co., Banner Coal Co., Bliss Coal Co., Robert Gage Coal Co., Beaver Coal Co., Consoli- dated & Wolverine Coal Cos... Announced Jan. 2 f 1918. 648 HISTORY OF PRICES DURING THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATFS FUFT, ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Michigan Continued. Handy Bros Nov. 30, 1919 do ... .do. $3.70 4.55 $4.25 5.05 5.55 3.85 4.15 4.95 5.45 3.40 3.40 2.95 3.40 3.95 3.65 $2.55 3.55 3.55 2.50 2.80 3.80 3.80 2.90 2.90 2.45 2.45 2.45 2.45 Caledonia mine, operated by the Robert Gage Coal Co Flint mine, operated by the What Cheer Mining Co. . What Cheer Mining Co"., Banner Coal Co., Bliss Coal Co., Robert Gage Coal Co., Beaver Coal Co., Consoli- dated & Wolverine Coal Co. ... Aug. 16,1918 do 3.30 3.60 4.45 3.05 3.15 3.15 2.70 3.15 3.65 3.40 Handy Bros Caledonia mine, operated by Robert Gage Coal Co Flint mine, operated by What Cheer Mining Co Missouri: Lafayette Ray, Clay, Platte, and Linn Counties Putnam County and the Longwall thin vein seam in Randolph County ... do do Oct. 1,1917 Oct. 27,1917 Apr. 20,1918 do District No. 1: Audrain, Barton, Bates. Galloway, Henry, Johnson, Monroe, Randolph, Rails, St. Clair, Schuyler, Vernon, and Montgomery Counties; Adair County except operations of the Star Coal Co., and Macon County east of New Cambria, and mining operations not covered by other rulings District No. 2: Boone, Clay, Cooper, Chariton, Carroll, Dade, Harrison, Linn, Lafavette, Putnam, Ray, and Sullivan Counties, and Macon County west of New Cambria, and the long wall thin-seam mines in Randolph County. . Grundy County, operations of the Star Coal Co. in Adair County and shaft workings in the Lightning Creek or upper thin vein in Barton, Bates, and Ver- non Counties. . do Platte County do Barton and Vernon Counties Aug. 3, 1918 Sept. 14,1918 Oct. 27,1917 Mar. 11,1918 May 1,1918 Oct. 28,1917 Nov. 26,1917 .do ... Nut run or stoker coal $3 05 4. .50 2.70 2.65 2.70 2.75 3.05 4.05 3.00 2.35 3.05 4.25 4.05 3.00 4.05 2.25 2. 2:> 2.70 3.75 3.25 2.00 2. 3o 3.00 2.10 2.50 2.50 2.25 2.50 5.00 3.60 3.30 3.60 3.25 4.50 5.05 4.00 3.25 4.05 5.05 4.55 4.00 5.05 2.45 1.50 1.50 1.00 2.00 2.00 3.55 2.00 1.65 2.00 3.55 3.55 2.00 3.55 1.25 1.25 1.00 3. -0 3.00 1.75 2.10 2.85 1.85 2.25 2.25 2.00 2. 25 Mill coal 2 95 Moniteau and Morgan Counties. . Montana Do Do New Mexico: Raton district... Gallup field Cerrillos and Carthage fields Sugarite and Monero fields . do Raton district Apr. 1,1918 .do.... Gallup field Carthage field... do Cerrillos field... do Sugarite and Monero fields do Cerillos field Aug. 30,1918 Jan. 4,1918 May 24,1918 ....do Nov. 6.1917 Jan. 23,1918 Mar. 23,1918 June 29,1918 .do.. North Dakota: Lignite coal Screened lump . $2 50 $2.50 3.00 4.00 3.50 2.25 2.60 3. 25 2.35 2.75 2. 75 2.50 2. 75 6-inch steam lump 2. 00 Lignite coai, mined south of the twelfth standard par- allel 6-inch steam lump $2 All coal mined north of the twelfth standard parallel .... 6-inch steam lump $2.50 Ohio: Deerfield or Palmyra field, Massillon field, and Jackson Do Jefferson, Harrison, Belmont, Carroll, and Monroe Counties District No. 1 : Meigs County, Cheshire and Addi'son Townships in Gal Ha County . District No. 2: Vinton, Jackson, Lawrence, Scio'ta, Pike, and Gallia Counties, except Cheshire and Ad- dison Townships in Gallia County District No . 3 : Hocking and A thens Counties, and Coal Township and the south half of Monroe Township Perry County do The Bailey Run or No 7 seam do District No. 4: Noble and Washington Counties, Mor- gan County , except the township of Homer, and Perry County, except the townships of Coal and Monroe .do.. District No. 5: Guernsey and Muskingum Counties. . . District No. 6: Holmes, Tuscarawas, Carroll, Coshoc- ton Counties and the townships of Monroe,Franklin. Washington, and Freeport in Harrison County and the townships of Washington and Yellow Creek in Columbiana County, and the townships of Brush Creek, Saline, Springfield, Ross, and Knox in Jeffer- son County ....do ...do... GOVERNMENT REGULATIONS RELATING TO PRICES. 649 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Ohio Continued. District No. 7: Trumbull, Portage, Summit, Mahoning, Medina, Wayne, Stark, and Columbiana Counties, except the townships of Yellow Creek and Washing- ton June 29 1918 $3 00 $3 25 52 85 District No. 8: Monroe County, Belmont County, ex- cept Warren Township; Harrison County, except Monroe, Franklin, Washington, and Freeport Town- ships; Jefferson County, except Brush Creek, Saline, Ross Knox, and Springfield Townships do 1.90 2 15 1 90 Wayne Mining Co Guernsey County . Aug 20 1918 2 50 2 75 2 25 District No. 1 ." Aug 23' 19] 8 2 .30 2 55 2 05 District No 2 . . do 2 95 3 20 2 80 DistrictNo. 3: Hocking and Adams Counties, Coal and Monroe Townships in Perry County, and Homer Township in Morgan County . . do 2 05 2 30 1 80 The Bailey Run or No 7 seam do 2 45 2 70 2 20 District No. 4: Washington and Noble Counties, Mor- gan County except Homer Township, and Perry County except Coal and Monroe Townships do 2 45 2 70 2 20 District No. 5: Muskingum County do 2 20 2 45 1 95 District No. 6: Holmes, Tuscarawas, Carroll, and Cos- hocton Counties, Monroe, Franklin, Washington, and Freeport in Harrison County, and Washington and Yellow Creek Townships in Columbiana County, and Brush Creek, Saline, Springfield, Ross,and Knox Townships in Jefferson County, and operations in the 8-A vein in Flushing and Union Townships in Belmont Count v do 2 45 % 2 70 2 20 District No. 7 . . do 2 95 3 20 2 SO District No. 8: Monroe County and Belmont Count} 7 , except Warren Township and operations in the 8-A vein in Flushing and Union Townships, Harrison County except Monroe, Franklin, Washington, and Freeport Townships, and Jefferson County except Brush Creek, Saline, Ross, Knox, and Springfield Townships do 1 90 2 15 1 90 District No. 9: Guernsey County and Warren Town- ship in Belmont County do 2 05 2 30 1 80 Wayne Mining Co. , Guernsey County do 2 50 *? 75 2 25 Southern Ohio Coal Co., Starr Township, Hocking County Oct 8 1918 2 95 3 20 2 80 Wheeling and Liberty Townships in Guernsey County (transferred from district No. 9 and district No. 6) Oklahoma: Le Flore and Haskell Counties Nov. 19,1918 Oct 1 1917 2.20 3 50 2.45 4 30 1.95 2 25 Ocmulgee and Tulsa Counites do 3 10 3 90 2 00 Coal County do 3 30 10 2 00 Pittsburg and Latimer Counties do 3 50 30 2 25 Le Flore and Haskell Counties (conditional) Nov 30 19>7 3 75 55 2 50 Okmulgee and Tulsa Counties (conditional) do . 3 35 15 2 25 Coal County (conditional) do 3 55 35 2 25 Pittsburg and Latimer Counties (conditional) do 3 75 4 55 2 50 Le Flore, Haskell, Okmulgee, Tulsa, Rogers, and Coal Counties, andthellartshorn-Wilburton vein in Pitts- burg and Latimer Counties . . . Mar 29 1918 3 70 4 60 2 40 Me Alester vein in Pittsburg and Latimer Counties . do ' 4 25 5 10 3 00 Pennsylvania: O'DonnellBros., at Morris Run, Tioga County (condi- tional) Dec 8 1917 2 25 2 50 2 00 Ajax Hocking Coal Co., in Clearfield and Somerset Counties (publication No. 2 and special order) Nov. 13,1917 2.75 Operations in the counties of Tioga, Lycoming, Clinton, Center, Huntingdon, Bedford, Cameron, Elk, Clear- field, Cambria, Blair, Somerset, Jefferson, Indiana, Clarion, Armstrong, Butler, Mercer, Lawrence, and Beaver, and operations in Allegheny County from the lower end of Tarentum Borough north to the county line, and in Westmoreland County from a point opposite the lower end of Tarentum Borough north along the Allegheny River to the Kiskiminitas River, and along the Kiskiminitas River eastward to the Conemaugh River, and continuing along the Conemaugh River, to the county line of Cambria County Feb 16 1918 2 60 2 60 2 60 Operations on the Baltimore & Ohio R. R. from the Somerset County line to and including Indian Creek and the Indian Creek Valley branch of the Baltimore & Ohio R. R. . . Mar. 14. 1918 2.60 2.60 2.60 650 HISTORY OF PRICES DURING THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR-Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Pennsylvania Continued . Pittsburgh field, including the counties of Washington, Greene, Fayette, Westmoreland, and Allegheny, except (1) that portion of ADegheny County froin the lower end of Tarentum Borough north to the county line; (2) the territory in Westmoreland County from a point opposite the lower end of Taren- tum Borough north along the Allegheny River to the Kiskiminitas River and along the 'Kiskiminitas River eastward to the Conemaugh River and con- tinuing along the Conemaugh River to the count v line of Cambria County; (3) operations on Indian Creek in Westmoreland County; and (4) operations in the Ohio Pyle district of Fayette County Coal mined by the Fall Brook Coal Co. "in Tioga County Mar. 23,1918 June 14 1918 $2.00 2 50 $2.25 2 go $1.75 2 30 The counties of Allegheny, Westmoreland, Favette, Greene, and Washington, except (1) that portion of Allegheny County from the lower end of Taren- tum Borough north to the county line; (2) the ter- ritory in Westmoreland County from a point oppo- site the lower end of Tarentum Borough north along the Allegheny River to the Kiskiminitas River and along the Kiskhninitas River eastward to the Con- emaugh River and continuing along the Conemaugh River to the county line of Cambria County; (3) op- erations on Indian Creek in Westmoreland Countv; and (4) operations in the Ohio Pyle district of Fay- June 29 1918 1 90 2 15 1 90 Coal produced at the stripping operation of the Graff Mining Co. in Westmoreland Countv (wage increase not to be added) Oct 1 1918 2 95 2 95 2 95 Wilson Begler Coal Co , Beaver County Nov 19' 1918 2 95 3 20 2 80 Tennessee (eastern): Counties of Scott, Claiborne, Anderson, Morgan, and Campbell . Oct 11 1917 2 40 2, 65 2 15 Blue Gem district, Campbell County Nov 4' 1917 3 55 3 80 2 "ft Counties of Claiborne, Morgan, Anderson, Scott, and Campbell, other than the Blue Gem (conditional). . . Bledsoe, Marion, Grundv, and White Counties Dec. 3, 1917 Dec 8 1917 2.65 2 40 2. 90 2 65 2.40 2 15 Cumberland County . . . Jan 12 1918 2 40 2 65 2 15 All except Overton and Fentress Counties Apr 5, 1918 2 65 2 90 2 40 Overton and Fentress Counties do 2 20 2 45 1 95 Blue Gem coalproduced in Campbell County by opera- tors who are members of the Tri-County Blue Gem Coal Operators ' Association Mav 1 1918 3 55 3 80 2 40 Bon Air Coal & Iron Corporation in the Bon Air mine, in White Countv June 19 1918 3 45 3 70 2 30 T. M. Morrison Coal Corporation and the Lone Moun- tain Coal Corporation at Pennington Gap in Lee County do 2 55 2 80 2 30 White Oak Coal Co. , Fentress County . . . Sterling Coal & Coke Co., Reliance Coal & Coke Co., Brysan Mountain Coal & Coke Co. , Climax Coal Co. , Mingo Coal & Coke Co. , and Fork Ridge Coal & Coke Co., in Claiborne Countv Sept. 14, 1918 1 Oct 28, 1918 2.55 2 60 2.80 2 85 2.30 2.30 Coal mined in Campbell Countv by members of the Tri-County Blue Gem Operators ' Association Oct 29, 1918 2 55 3.70 2 30 Nut and slack through ij-inch bars $2.55 Texas: Operators at Thurber and Strawn. . Dec. 7, 1918 Nov. 14 1917 3.30 3 60 4.05 4 40 2.30 2.25 Operators at Bridgeport do 4 25 5 06 2 25 Counties of Young, Erath, and Palo Pinto Nov 16.1917 3 go 4 40 2 25 Wise County do 4 25 5 05 2 25 Lignite coal Mar. 5 1918 1 40 .85 Screened, at least 15 per cent screenings out, $1.50. Lignite coal June 22 1918 1 55 1 75 1.00 All Texas bituminous coal, except counties of Erath, Palo Alto, and Young do 4 25 5 05 2:25 Counties of Erath, Palo Pinto, and Young do 3 40 4 20 2 25 Do Aug 16 1918 3 40 4 55 2.25 Wise County. . . Sept 4 1918 4 25 5 40 2 25 Utah Mar. 11,1918 2.65 3.30 1.50 Virginia: Mines operated near St. Charles, Lee County, by the Darby Coal Mining Co.. Black Mountain Mining Co., Virginia Lee Co., Old Virginia Coal Co., United Col- lieries Co. (Inc.), Benedict Coal Corporation, and the Imperial mine of the Virginia Iron, Coal & Coke Co., Roanoke [Oct. 11,1917 2.40 2.65 2.15 \Apr. 20,1918 2.65 2.90 2.40 Announced Jan. 2, 1918. GOVERNMENT REGULATIONS RELATING TO PRICES. 651 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEI. ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Virginia Continued. Imperial mine of the Virginia Iron, Coal & Coke Co., of Roanoke Oct 27 1917 32 40 |2 65 $2 15 Richmond Basin, Chesterfield and Henrico Counties. . . Extreme northern part of Buchanan County Clinch Valley No. 1 district or "Upper Clinch"; coal mining operations on the Norfolk & Western Ry., Hockman to Finnev, inclusive . . . . Jan. 21,1918 Feb. 7, 1918 Feb 28 1918 3.30 2.40 2.50 3.55 2.65 2.75 3.05 2.15 2 25 Lee, Wise, Dickinson Counties, and Russell County west of Finney, on the Norfolk & Western Ry Pocahontas district: Operations on the Norfolk & Western Rv. and branches west of Graham, Va., to Welch, W.'Va.. including Newhall, Berwind, Cane- brake, Hartwell, and Beoch Fork branches; opera- tions on the Virginian Railroad and branches, west of Rock to Herndon, W. Va. (confirmation of Presi- dent's prices) Apr. 5, 1918 Mar 21 1918 2.20 2.00 2.45 2.25 1.95 1.75 Darby Coal Mining Co. , \ 7 irginia Lee Co., Old Virginia Coal Co., United Collieries Co. (Inc.), Benedict Coal Corporation, Imperial mine of the Virginia Iron, Coal & Coke Co Ronnoke \t>r 26 1918 2 65 2 90 2 40 Mines operated near St. Charles, Lee County, by the Cumberland Coal Co., the Penn Lee Coal Co., the Lecova Coal Co. , and the Wilma Coal Co .... May 24 1918 2.65 2.90 2.40 Pocahontas district (as described in the order of the United States Fuel Administrator, dated Mar. 21, 1918) ... June 1 1918 0) Lee County: Mohawk Coal Mining Co., Keokee; Powell River Coal Co., Purcell; North ForkCoaiCo., Pennington Gap Aug. 20 1918 2.55 2.80 2.30 Splash Dam Coal Corporation, and McClure Coal Corporation, in Dickinson County .... Aug. 19 1918 2.40 2.65 2.15 T. M. Morrison Coal Corporation, Lone Mountain Coal Corporation, at Pennington Gap in Lee County do 2.55 2.80 2.30 Black Mountain Mining Co., Benedict Coal Co., Bondurant Coal Co., Darby Coal Co., United Col- lieries Co., and Old Virginia Coal Co., in Lee County. Clinchfield Coal Corporation, Camper Coal Co., Kil- gore Coal Co., Stonegap Colliery Co., J. A. Esser Coke Co., Yellow Creek Coal & Coke Co., Gladeville Coal Co., Wise Coal & Coke Co., Norton Coal Co., Blackwood Coal & Coke Co., and Stonega Coal Co.. in Wise County, and Stonega Coal Co., at Keokee mine in Lee County Oct. 28,1918 do 2.60 2 15 2.85 2.40 2.30 1 85 Roberts Coal Co. , in Wise County . do 2.60 2.85 2.30 Robert Fleming & Co., of Norton; Hawthorne Co., of Norton; John B . Guernsey & Co. , of Tacoma Emerald Coal Co., Obey Branch Coal Co., Pucketts Creek Coal Co in Lee County Nov. 19,1918 Dec 7 1918 2.15 2.55 2.40 2.80 1.85 2.30 Bradley Coal Co., White Oak Coal Co., Hawthorne Coal Co. , Felton Coal Mining Co. , in Wise County . . . Stone Gap Colliery Co., Norton Coai Co., J. A. Esser Coal Co Kilgore Coal Co., in Wise County do do.. 2.55 2. CO 2.80 2.85 2.30 2.30 District No. 1: Operations not classified under other districts or covered by the proviso hereinafter set forth Dec. 16,1918 1.90 2.15 1.65 District No. 2: Operations in the Richmond Basin within Chesterfield and Henrico Counties do 3.20 3.45 2.95 District No. 3: Clinch Valley No. 1 district or " Upper Clinch," being coal-mining ope rations on the Norfolk & Western Ry . from Hockman to Finney , inclusive . . District No. 4: That portion of the Pocahontas district located in the State of Virginia.., said Pocahontas dis- trict being more particularly described as comprising operations on the Norfolk & Western Ry. west of Graham, Va., to Welch, W. Va., also including oper- ations on the Virginian Ry. and branches west of Rock to Herndon W. Va do do 2-40 1.90 2.65 2.15 2.15 1.65 District No. 5: Lee, Wise, and Dickenson Counties and Russel County west of Finney on the Norfolk & Western Ry do 2.10 2.35 1.85 District No. 6: That portion of the Thacker district located in Virginia, being operations in the extreme northern portion of Buchanan County . . . do.. 2.20 2.45 1.95 Providing that the following prices shall apply to the operations and operators hereinafter mentioned: 1 Where slack or screenings passing through the accepted standard screens customarily used prior to Jan. 1 , 1916, constituted not less than 55 per cent of the mine-run output of anv mine, such slack or screen- ings may be sold at the run-of-mine price applicable at said mine at date of shipment. 652 HISTORY OF PRICES DURING THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared ^ si * es ' | ings Virginia Continued. Operations of Splash Dam Coal Corporation and Mc- Clure Coal Corporation in Dickenson County Operations of Cumberland Coal Co., Penn Lee Coal Co., Leecova Coal Co., Wilma Coal Co., Virginia Lee Co., Emerald Coal Co., Obey Branch Coal Co., Puck- etts Creek Coal Co., Mohawk Coal Mining Co., Pow- ell River Coal Co., North Fork Coal Co., T. M. Mor- rison Coal Corporation, Lone Mountain Coal Corpo- ration, and Imperial mine of the Virginia Iron, Coal & Coke Co , of Roanoke in Lee County Dec. 16,1918 do $2.40 2.55 2.60 2.15 2.55 2.60 3.25 3.55 $2.65 2.80 2.85 2.40 2.80 2.85 4.50 $2.15 2.30 2.30 1.85 2.30 2.30 3.00 2.50 Operations of Black Mountain Mining Co., Benedict Coal Co., Bondurant Coal Co.. Darby Coal Co.. United Collieries Co. (Inc.), W Old Virginia Coal Co near St Charles Lee County . . . do ... Operations of Stonega Coal & Coke Co. at Keokee, Lee County; Clinchfield Coal Corporation Camper Coal Co., Yellow Creek Coal & Coke Co., Blackwood Coal & Coke Co., Stonega Coal & Coke Co., Robert Flem- ing & Co., and John B. Guernsey & Co., in Wise County do Operations of Bradley Coal Co., White Oak Coal Co., and Felton Coal Mining Co in Wise County do ... Operations of Roberts Coal Co., Stone Gap Colliery Co., Norton Coal Co.. Hawthorne Coal Co., J. A. Esser Coke Co., and Kilgore Coal Co., in Wise County Washington: 1 Pierce and King Counties do Oct. 1, 1917 Mar. 29, 1918 Screened coals- Bituminous Kittitas County Lump and egg 3.95 3.25 Semibituminous Mar. 29, 1918 2.75 1.25 Lump 3.95 3.25 3.00 4.00 Lump nut Nut Washed coals- Bituminous Kittitas County Mar. 29, 1918 Pierce King Lewis and Skagit Counties. .do 2.50 Lump nut 6.00 5.25 4.80 Mixed steam Straight steam and gas Sub-bituminous King County. . Mar. 29, 1918 1.50 Lump nut 5.00 3.50 Pea Buckwheat 3.25 Lewis County. Mar. 29, 1918 1.25 Lump 3.95 3.75 Nut Mar 29 1918 Pea 3.00 1.50 Buckwheat West Virginia: Ajax Hocking Coal Co., in Mineral County (Publica- tions 2 4E and special order) Nov. 13, 1917 Nov. 22, 1917 Nov. 28, 1917 Feb. 1, 1918 Feb. 7, 1918 Feb. 28, 1918 do . . 2.75 2 75 2. 35 2.40 2.40 2.40 2.40 2.40 2.00 Dayy-Pocahontas Coal Co in McDowell County Pomeroy field 2.60 2.65 2. 65 2.65 2.65 2.65 2.25 2.10 2.15 2.15 2.15 2.15 2.15 1.75 Mineral, Grant, Tucker Counties and the extreme eastern and southeastern portion of Preston County . Kenova and Thacker fields in Mingo County, the ex- treme southern part of Wayne County, andtheex- treme northwestern part of McDowell "County Tug River district: Coal-mining operations on the Norfolk & Western Ry., west of Welch to Panther, including branches, except Newhall, Berwind, Cane- brake and Hartwell Preston County, being part of the upper Potomac, Cumberland and Piedmont fields Wayne County, being part of the Ken ova and Thacker fields Mar. 5, 1918 Mar. 21. 191S Pocahontas district: Operations on the Norfolk & Western Ry., and branches west of Graham, Va., to Welch, W. Va.. including Newhall, Berwind, Canebrake, Hartwell, and Beech Fork branches; also operations on the Virginian Railroad and branches, west of Rock to Herndon, W. Va. ( President's prices) 1 Preparations of coal mined in the State of Washington must conform to reports submitted to and approved by the State rnine.price board. GOVERNMENT REGULATIONS RELATING TO PRICES. 653 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. West Virginia Continued. No. 8 or Pittsburgh seam, in Hancock, Brook, Ohio and Marshall Counties . ... Mar 23 1918 $2 00 $2 25 $1 75 No. 10 district; Coal and coke and Gauley Districts; Taylor, Barbour, Lewis, Buckhannon, Randolph, Gilner. Braxton, Webster, and Greenbrier Counties; operations in Nicholas County east of the mouth of the Meadow Branch of the Gauley River, and the coal and coke district in Kanawha and Clay Counties north of Charleston Apr 20 1918 2 30 2 55 2 05 Fairmont district; Monongalia, Marion, and Harrison Counties do 2.15 2 40 1 90 Thacker District: Operations in McDowell County, west of Panther on the Norfolk & Western Rv. and in Mingo County west along the Tug Fork of the Big Sandy River to Williamson on the Norfolk & West- ern Ry do.... 2.30 2.55 2 05 New River district: Fayette County south of Hawk's Nest on the Chesapeake & Ohio R. R., and Fayette and Raleigh Counties south of Paintsville on the Virginian R. R., and Wyoming County north of Herndon on the Virginian R R do 2 35 2 60 2 10 Logan district: Logan County and operations in Boone County south of Danville on the Chesapeake & Ohio R. R., and Lincoln County south of Gill on the Chesapeake & Ohio R. R do . 2.15 2 40 1 90 Putnam County do 2 .50 2 75 2 25 Kenova District: Operations on the watershed of the Tug Fork of the Big Sandy River west of William- son on the Norfolk & Western Ry. and Wayne County do.... 2.30 2.55 2.05 Kanawha district: Nicholas County west of the mouth of the Meadow Branch of the Gauley River; Fayette County west of Hawk's Nest on the Chesapeake & Ohio R. R., and north of Paintsville on the Vir- ginian R. R., and operations in Raleigh and Boone Counties on the watershed of the Clear Fork Branch of Coal River, Boone County, north of Danville on the Chesapeake & Ohio R. R.; Kanawha County south of Charleston and Lincoln County north of Gill on the Chesapeake & Ohio R. R... do . 2.25 2 50 2 00 Mines operated near Richmond, Nicholas County by the Saxman Coal & Coke Co May 24,1918 2.80 3.05 2.55 Pocahontas district: New River district, Tug River district (as described in the order of the United States Fuel Administrator, Mar. 21, 1918) June 1, 1918 (i) Mason County. . June 29,1918 2 35 2 60 2 10 Do Aug. 29, 1918 2.30 2.55 2.05 Hancock, Brook, Ohio, and Marshall Counties June 29. 1918 1.90 2.15 1.90 Three Forks Coal Co., in the New River district Dec. 7, 1918 2.55 2.55 2.00 Wyoming Oct ' 1 1917 2 50 3 50 1 25 Do Mar 11,1918 2.65 3.30 1.50 Sub-bituminous Egg run Mar 23 1918 2 15 Nut run do 2.00 1 Where slack or screenings passing through the accepted standard screens customarily used prior to Jan. 1, 1916, constituted not less than 55 per cent of the mine run output of any mine, such slack or screen- ings may be sold at the run-of-mine price applicable at said mine at date of shipment. REVISION OF DESCRIPTION OP CERTAIN DISTRICTS IN WEST VIRGINIA AS CONTAINED IN PRICE ORDER OP APRIL 19, 1918, ANNOUNCED JUNE 27, 1918. New River district : County of Fayette east of the Ganley River to Hawks Nest on the Chesapeake & Ohio Railroad, and east of a line drawn from Hawks Nest to Roseville on the Virginian Railroad, and the counties of Fayette and Raleigh, south of Roseville, and the county of Wyoming north of Herndon on the Virginian Railroad. Kanawha district : County of Nicholas west of the mouth of the Meadow Branch of the Ganley River, the county of Fayette west of the Ganley River and north of the Kanawha and west of a line drawn from Hawks Nest on the Chesapeake & Ohio Rail- road to Roseville on the Virginian Railroad and operations in the counties of Raleigh and Boone on the watershed of the Clear Fork Branch of Coal River, and the county of Boone north of Danville on the Chesapeake & Ohio Railroad, and the counties of Kanawha and Clay south of Charleston and the county of Lincoln north of Gill on the Chesapeake & Ohio Railroad. 654 HISTORY OF PRICES DURING THE WAR. District. Lump. Coal at docks on Lake Michigan or Lake Superior: From Oct. 30, 1917, to Apr. 30, 1918 Youghiogheny, Fairmont, Greensburg, and Westmoreland County fields ;. No. 8 seam, eastern Ohio fields Hocking and Pomeroy, Ohio, fields West Virginia splint and block fields Kentucky gas and steam and splint and block fields 1 Smokeless coal fields ! From June 1, 1918, to Apr. 30, 1919 Youghiogheny, Fairmont, Greensburg, Westmoreland No. 8 seam, Ohio and Hocking, and Pomeroy fields Harlan, Thacker, Kenova, and Kanawha fields Pocahontas, New River, and Tug River fields From Sept. 26, 1918, to Apr. 30, 1919 Southwestern district in Pennsylvania, Fairmont and Panhandle districts in West Virginia, and districts 3, 8, and 9 in Ohio Harlan, Thacker, and Kenova districts in Kentucky; Thacker, Kenova, Kanawha, Mason County districts in West Virginia; districts Nos. 1, 2, 4, 5, 6, and 7 in Ohio Pocahontas, New River, and Tug districts in West Virginia $6.60 6.40 6.60 6.85 7.20 '7.70 Run of pile. 5.80 6.30 6.30 5.80 $6. 40 6.20 6.40 6,65 7.00 6.55 5.55 6.05 6.05 5.55 6.05 6.05 Screen- ings. ?6.20 6.10 6.20 6.55 6.55 6.55 5.30 5.80 6.05 5.30 5.80 6.05 1 Lump and egg. Above prices are based on freight rates between mines and Lake Erie ports, effective June 1 1918 By order of November 20, 1918, the sum of $1.05 per gross ton was added to these prices. Cannel coal. On June 28, 1918, prices of cannel coal were fixed as for those of bituminous coal at the mine where the coal was produced, except that if the producer held a permit he might sell lump cannel coal at not to exceed $1 per net ton over the price for run-of-mine bituminous at the mine where such coal was produced. Mixture of cannel and bituminous coal. On February 26, 1918, the following ruling was announced : " Where cannel and bituminous coals are mixed the maximum price for the mixture shall be the mine price for the bituminous coal in such mixture." On July 16, 1918, regulations became effective as follows : SECTION 1. The prices of cannel coal shipped on and after the effective date of this regulation are hereby fixed f. o. b. cars at the mine per net ton at not to exceed the applicable Government mine price for bituminous coal at the mine where such cannel coal is produced : Provided, however. That if the producer of such cannel coal shall obtain from the United States Fuel Administrator a permit therefor lump cannel coal may be sold for a sum not to exceed $1 per net ton above the applicable Government mine price for run-of-mine bituminous coal at the mine where such coal is produced. SEC. 3. When cannel coal is loaded into box cars a charge of 50 cents per net ton in addition to the prices fixed in section 1 hereof may be made to cover the cost of labor and material necessary to load such coal into box cars. No such charge shall be made on shipments in box cars of cannel coal mixed with bituminous coal. SEC. 4. When run-of-mine or prepared cannel coal is mixed with bituminous coal of any size the mixture shall be sold at a price not to exceed the Govern- ment mine price for bituminous screenings applicable at date of shipment at the mine where such cannel coal is produced. SEC. 5. When cannel coal from which the lumps have been screened is mixed with bituminous coal of any size the mixture shall bo sold at a price not to ex- ceed the Government mine price for bituminous screenings applicable at date of shipment at the mine where such cannel coal is produced less 30 cents per net ton. Modified mine-run coal. By order of July 3, 1918, effective July 5, 1918, maxi- mum prices of " modified mine-run " coal were to be the Government prices for screenings at the mine where such coal was produced, plus the following percentages of the margin or difference between the applicable Government mine prices for mine run and screenings at such mines, viz : Run of mine passed through 2-inch openings, 40 per cent of such margin. Run of mine passed through 3-inch openings, 75 per cent of such margin. GOVERNMENT REGULATIONS RELATING TO PRICES. 655 Run of iniue parsed through 4-inch openings, 90 per cent of such margin. Run of mine passed through 5-inch openings, 95 per cent of such margin. Run of mine passed through 6-inch or larger openings shall take the appli- cable Government price for the run of mine. Sized screening's. An order fixing the prices of sized screenings, effective August 1, 1918, was as follows : 1. Special sizes passing over a mesh one-half inch in size and over the appli- cable Government mine price for prepared coal at the mine where such screen- ings were produced. 2. Special sizes passing over a mesh over one-fourth inch and under one- half inch in size, the applicable Government mine price for run-of-mine coal at the mine where such special sizes were produced. 3. Fine sizes from sized coal passing through mesh one-half inch or smaller in size, the applicable Government mine price for standard screenings at the mine where such fine screenings are produced less 30 cents per net ton. 4. If fine screenings or " carbon " passing through one-half inch or smaller mesh as the result of producing special-sized screenings are mixed with other coal whether the same be mine run, prepared, or standard screenings, the selling price of the mixture shall not exceed the applicable Government mine price for standard screenings at the mine where such mixture is produced less 30 cents per net ton. Smithing coal. Until February 15, 1918, smithing coal sold at the prevailing market prices. After that date it sold at the going Government price for prepared sizes of bituminous coal applicable to the mine producing such coal. On April 25, 1918, provisions were made for extra charges for special preparation, packing in bags, or loading into box cars. By order effective June 19, 1918, crushed run-of-mine smithing coal produced by the Sequatchie Coal Co. at its New Etna mines in Marion County, Tenn., was to be sold at $3.80 per net ton f. o. b. cars at such mines plus 50 cents per net ton if loaded in box cars and plus the actual cost of bagging, as provided in the order of April 25, 1918. Export and bunker coal. Until December 13, 1917, the prices of coal as fixed by the President and modified by the Fuel Administrator, applied to export and bunker coal. Under order of December 13, 1917, the maximum price of such coal wus named as the price at the mine at the time such coal left the mine plus trans- portation charges from the mine to port of lading plus $1.35 per ton of 2,000 pounds. To this price, so computed, the seller of the coal or such other agency as performed the actual work of bunkering or loading the vessel, could add the customary charges for storage, special unloading and other port charges. On February 25, 1918, certain revisions were made in the previous order as follows : 1. No coal can be invoiced at the excess price provided in this order, except by the operator or dealer who actually loads it into foreign vessels, and only after the coal has been so loaded. 2. After, and only after, such excess price has been collected in accordance with paragraph 1, all or such part of it as has been agreed upon beforehand may be paid to the dealer or dealers from or through whom the coal was ob- tained, 3. In setting the price of coal for foreign bunkering or export purposes, no jobber's margin or other commission in addition to the $1.35 per ton provided in the order shall be added to the price of the coal. 4. The phrase " deliver to vessels for foreign bunkering purposes," mentioned above, is hereby held to mean coal put in the bunkers of any vessel sailing from a tidewater port for any port outside the United States and Alaska, excepting naval vessels or Army transports. 5. Coal shipped to possessions or dependencies of the United States, when consigned to any department of the United States Government, shall not take the excess price provided by this order. 656 HISTORY OF PRICES DURING THE WAR. Coal from wagon mines. Under date of October 6, 1917, regulations were issued for prices of coal delivered direct to the consumer from the mine by wagon or truck: Coal delivered direct to the consumer from the mine by wagon or truck (whether from wagon mines or other mines) shall be sold at not more than the prices fixed by the President and the Fuel Administrator plus the actual cost of hauling. Coal bought by a railroad for its own use as fuel from a wagon-mine hauling to such railroad shall be sold at not more than the prices fixed by the President and the Fuel Administrator plus the actual cost of hauling. No charge for hauling may be made by an operator of a wagon mine or paid by the purchaser of the coal on coal shipped by rail, except where such ship- ment is made in box cars, in which case an additional charge not to exceed 75 cents per ton may be made. In all other cases the price of wagon-mine coal on board cars shall not exceed the price prescribed by the President and the Fuel Administrator for coal at the mine. The first paragraph of the above ruling was amended on November 10, 1917, to read as follows: Coal sold at a mine to be delivered direct to the customer by wagon or truck may be sold at a price f. o. b. mines to be fixed by the local fuel administration committee in the community in \vhich coal is delivered for consumption, subject to the approval of the State fuel administrator. Such local committee shall also in such cases fix the haulage rates to be charged where the coal is delivered by the mine operator. Specially prepared coal and coal not properly picked or cleaned. On March 11, 1918, provision was made for the sale of coal not conforming to requirements for preparation: Inspectors are authorized to condemn at the mines any coal loaded in railroad cars which, in their judgment, is not properly prepared, and any inspector find- ing unmerchantable coal shall immediately notify the district representative and the operator by wire or in person and in writing, giving the car numbers and initials of any and all cars so rejected and stating the facts on which such action was based. A copy of such notice shall be immediately mailed to the United States Fuel Administration, department of inspection, and. to the district repre- sentative. If the district representative approves the inspection report, he shall so notify the operator at once, in which case, unless the operator unloads and reprepares the rejected coal, the consignee shall be permitted to deduct 50 cents per ton from the authorized price for the grade of coal with which the car is loaded : Provided, however, The consignee, after examining the coal may, at his option, pay and the operator may receive the full authorized price. This regulation was revoked and a new one established on June 1, 1918 : If any such inspector shall find that any coal is about to be shipped which, in his opinion^ does not conform to the requirements of section 1 hereof, said in- spector is hereby authorized to condemn such coal. The district representative, if he approves of such condemnation, shall immediately give notice of his ap- proval to the operator producing such coal, confirming such notice in writing, and thereupon such operator shall have the following options: To take such steps as may be necessary, after unloading the same, if in railroad cars or barges, to make the same conform to the provisions of section 1 hereof to the satisfaction of the inspector condemning the same ; or To ship such coal and invoice the same with a deduction of 50 cents per net ton from the applicable Government mine price or from the contract price if such coal has been sold under contract and the contract price differs from said Government price. An increased price was allowed for specially prepared coal in a regulation effective April 1, 1918 : Picked, spiralized, and washed coal. When coal, in addition to being screened into sizes, has been picked upon tables or loading booms, or has been cleaned by means of spiral or other mechanical separators or washers, in such manner that the fuel value and the cost of preparation are substantially increased and GOVERNMENT REGULATIONS RELATING TO PRICES. 657 the total output substantially decreased through removal of waste and impuri- ties, said coal may be sold, but only for shipment loaded on board cars at the mine on or before July 31, 1918, at an increase in price of not to exceed 20 cents per net ton above the applicable Government selling price at the date of ship- ment for the respective grades, denned as " run of mine " and " prepared sizes," that are actually picked, spiralized, or washed, if the producer thereof has, in the manner provided in Sections III and IV of this regulation, obtained a temporary permit for making such additional charge. In cases where the above maximum of 20 cents is not sufficient, in the opinion of the United States Fuel Administrator, to compensate for this work a special temporary permit authoriz- ing a larger increase to such amount and under such circumstances as the United States Fuel Administrator may deem proper, may in the discretion of the United States Fuel Admintrator be issued as hereinafter in Sections III and IV provided. This order, too, was revoked and a new one became effective June 1, 1918. Mechanical preparation. No special allowance will be made for the ordinary method of cleaning or picking coal employed in any district, but a special allow- ance \vill be made for coal mechanically washed or extraordinarily cleaned or picked in such manner that the fuel value of the coal has been substantially in- creased by the removal of waste and impurities. COKE. The price of coke, under regulations announced November 9, 1917, were to be understood as the maximum price per ton of 2,000 pounds f. o. b. cars at the plant where it was manufactured. GENERAL ORDERS IN REGARD TO COKE. APRIL 1, 1918. That all cases of sale of coke, manufactured east of the 94th meridian, to consumers located west of the 115th meridian, where the seller assumes the responsibility for the quality and delivery of such coke, and extends credit to, and carries the account of, the purchaser in accordance with the usual trade practices, there may be added 5 per cent to the established price of the coke f. o. b. cars at the point of manufacture. APBIL 26, 1918. (1) The maximum price of coke sold and delivered for export to foreign countries, or to a possession or dependency of the United States, shall be the price prescribed for such coke at the ovens at the time such coke left the ovens, plus transportation charges from the ovens to the port of loading, plus 60 cents per ton of 2,000 pounds. (2) To this price, computed as above, the seller of the coke or such other agency as performs the actual work of loading the vessel may add the cus- tomary and proper charges, if any, for unloading from railroad cars into ships, for towing, elevation, trimming, railroad and ship demurrage, and other port charges. (3) The additional 60 cents per ton of 2,000 pounds herein authorized may not be added to the price of coke as figured above where the coke is delivered solely by rail to foreign countries. (4) No coke shall be sold and delivered for export to foreign countries, or to a dependency or possession of the United States by ocean transportation before the vendor has secured a permit from the United States Fuel Administration authorizing the sale. Applications for such permits should be made to the coke division of the United States Fuel Administration and should contain, first, the name of the consumer and the destination of the coke ; second, the tonnage to be shipped. (5) The 5 per cent provided for in the order of March 26, 1918, for coke manufactured east of the 94th meridian and delivered to customers located west of the 115th meridian, may be added to the established price for all coke ex- ported from the Pacific coast in addition to the 60 cents allowed in this order. Paragraph 4 of this order was revoked on December 19, 1918. 125547 20 42 658 HISTORY OF PRICES DURING THE WAR. Beehive coke. The maximum prices for various grades of beehive coke made in the districts west of the Mississippi River, except as modified, were to bear the same ratio to the established price of the coal from which the coke was made as the average contract prices of the same grades of coke had to the average prices of coal during the years 1912 and 1913. The expression " 72-hour selected foundry coke " was to cover only coke selected in accordance with the usual trade practice for foundry use, and the prices named for 72-hour selected foundry coke were in no case to be charged for any shipments to blast furnaces for smelting iron or other metal. To these base prices, as tabulated, there was to be added the freight rate from the' plant where the competing beehive coke was produced, except that there should be added, in addition, for coke manufactured in New England, 7 cents for each 5 cents above 60 cents in the freight rate charges per ton (2,240 pounds) of coal for water transportation on the coal used in the manufacture of such coke. District. Date when effective. 48-hour blast furnace. 72-hour selected foundry. Crushed over 1-inch size. Beehive coke east of the Mississippi River, base prices. . . . Modifications. Alabama: From coal mined in Black Creek, Brookwood, and Blue Creek districts Nov. 10,1917 Jan. 30, 1918 86.00 8 00 $7.00 8 00 $7.30 Manufactured by Empire Coal Co at Empire do.... 8 25 8 23 do 6 75 6 73 Coke made from coal mined in the Big Seam district. . Feb. 15.1918 6.75 6.75 New Castle Coal Co do 7 50 7 50 United States Cast Iron Pipe & Foundry Co do.... 8 50 8 50 From coal mined from the Nickel Plate seam Mar. 20 1918 7 00 7 00 U. S. C. S. & F. Co., if coke is made from Black Creek coal Mar 30 1918 8 7" Coke made from coal mined from the Black Creek, Blue Creek and Brookwood districts do 8 00 S 71 Empire Coal Co . Feb. 15 1918 8 25 8 25 Coke made from coal mined in the Nickle Plate district. Empire Coal Co. at Emp're Mar. 20,1918 Apr 15 1918 7.00 7.00 8 75 Coke made at the plant of the Newcastle Coal Co., at New Castle, Jefferson County June 28, 1918 825 Coke made from coal mined from the upper bench of the Big Seam Aug. 14 1918 8 50 9 50 Coke from washed coal District No. 1, except the New- castle Coal Co . . Sept 3 1918 7 00 8 00 Prepared sizes above f inch $8. 30 Prepared sizes below f inch 6. 00 Breeze 3. 50 Yolande Coal & Coke Co., and District No. 2, except the Empire Coal Co do 8 75 9 75 Prepared sizes above f inch $10 05 Prepared sizes below f inch 7. 75 Breeze 4. 38 Newcastle Coal Co. and district No. 3, except the Gulf State Steel Co. at Sayre, and the Yolande Coal & Coke Co do 7 85 8 85 Prepared sizes above f inch $9. 15 Prepared sizes below ^ inch 6 85 Breeze . . . 3. 93 Empire Coal Co , do 10.50 "10.50 Prepared sizes above f inch $10. 80 Prepared sizes below f inch 9. 50 Breeze 5. 25 Gulf State Steel Co at Sayre do 8 50 9 50 Prepared sizes above f inch $9 80 Prepared sizes below f inch 6. 50 Breeze 4 25 Colorado fApr. 15,1918 8.50 9.50 Georgia: Durham Coal & Coke Co \May 8, 1918 Dec. 31 1917 8 00 8 00 9.80 8 00 Walker County Feb. 15,1918 8.75 8.75 Kentucky: Marrowbine Mining Co. at Lookout, Pike County Julv 1, 1918 Pike County, except at the plant of the Marrowbine Mining Co July 29,1918 6.50 7.50 Hopkins County . . . Nov. 18,1918 7.25 8.25 GOVERNMENT REGULATIONS RELATING TO PRICES. 659 District. Date when effective. 48-hour blast furnace. 72-hour selected foundry. Crushed over 1-inch size. Modifications Con tinued New Mexico Apr. 2G, 1918 Feb. 15, 1918 May 13, 1918 Dec. 31, 1917 Mar. 1, 1918 do $8.50 10.75 10.75 7.25 8.00 8.50 7.25 , 8.25 7.25 7.25 8.50 7.25 10.00 8.00 8.00 6.75 8.00 6.75 7.00 6.50 7.75 8.00 6.25 6.75 6.75 6.25 7.00 8.00 8.00 6.75 6.75 $9.50 11.75 11.75 8.25 8.00 8.50 8.25 8.25 8.25 8.25 9.50 8.25 11.00 8.00 8.00 7.75 8.00 7.75 8.00 7.50 7.75 8.00 7.25 7.75 7.75 7.25 8.00 Oklahoma: McCurtain Coke Co., for coke f. o. b. Panther on the main line of the Fort Smith & Western R . R Howe plant of the Howe-McCurtain Coke Co Pennsylvania: Taylor and McCoy at Glen White, Blair County Indiana County: Coke made from washed coal taken exclusively from the lower bench of coal from the upper Fremont seam, if the ash exceeds 10 per cent or if the sulphur exceeds 0.9 per cent If the ash is less than 10 per cent and the sulphur is less Cambria County Mar. 20, 1918 Dec. 31, 1917 Apr. 26, 1918 June 25, 1918 July 9, 1918 May 13, 1918 Mar. 30, 1918 Dec. 31, 1917 Feb. 15, 1918 Mar. 1,1918 do Tennessee: Sewanee Fuel & Iron Co., Lone Rock ovens at Tracy City . . Cumberland County Utah Virginia: Wise and Leo Counties Washington . West Virginia: Babcock Coal & Coke Co., Scotia Coal & Coke Co., Fire Creek Coal & Coke Co all in Fayette County $8.00 8.00 New River district on Chesapeake & Ohio R. R. run- ning from Thurmond north as far as Elmo andon the Chesapeake & Ohio R. R., and Kanawha, Glen Jean and Eastern Railroads running from Thurmond as far southwest as McDonald Preston County Flat Top or Pocahontas district Coke made at Meridan, Barbour County do . . Tucker County Mar. 20, 1918 Mar. 30, 1918 do Kanawha district, Fayette County Nicholas County New River district Feb. 15, 1918 Apr. 26, 1918 do Marion and Harrison Counties . Barbour and Randolph Counties Preston County Mar. 30, 1918 Apr. 15, 1918 June 25, 1918 June 26, 1918 July 12, 1918 Aug. 14, 1918 Nov. 18, 1918 Monongalia. County - .... New River district Do 8,00 7.75 7.75 8.00 Taylor County . .... i Any grade. NOTE. The folio whig classifications and prices were announced July 8, 1918: The maximum price for crushed coke over f-inch size shall be the maximum price for 72-hour selected foundry coke, plus 30 cents. The maximum price for all prepared sizes of clean dry screened coke under f-inch size shall be $1 less than the price for blast-furnace coke made at beehive ovens where such coke is produced. The maximum price for breeze shall be one-half the price established for blast-furnace coke made in beehive ovens where such breeze is produced. The maximum price for mixed sizes of properly screened and cleaned beehive or by-product coke, suitable for domestic purposes, shall be $1 less than the maximum Government price for selected foundry coke, f. o. b. cars at the same point, effective July 25, 1918. This was modified on Sept. 30, 1918, and all coke as described above and reclaimed from accumulated breeze piles shall be $5.50. BY-PRODUCT COKE. District. Date when effective. Run of oven. Selected foundry. Crushed over 1 inch in size. By-products coke base prices Nov. 19 1917 16.00 $7.00 $6.50 Modifications. Alabama: Coke made from coal mined in the Nickel Plate district Mar 20 1918 7 00 7 00 From washed coal Sept. 1, 1918 5.70 6.70 do 7.75 8.75 Prepared sizes above J inch $8. 25 Prepared sizes below f inch 6. 75 Breeze 3. 88 Tennessee: Chattanooga Mar. 1, 1918 8.25 9.25 8.75 Washington.. . . Mar. 30 1918 10 00 11.00 660 HISTORY OF PRICES DURING THE WAR. ORDER OF JULY 8, 1918. The maximum price for crushed coke over f-inch sizes, produced by any by- product oven plant, was to be the maximum price for run of oven coke, plus 50 cents. The. maximum price for all prepared sizes of clean dry screened coke under '/-inch size, was to be $1 per ton less than the Government price for run of oven coke made in by-product ovens where such coke was produced. The maximum price of breeze was to be one-half the Government price for run of oven coke made in by-product ovens where such coke was produced. ORDER OF JULY 24, 1918. The maximum price for mixed sizes of properly screened and cleaned by- product coke suitable for domestic purposes, was to be $1 less than the maxi- mum Government price for selected foundry coke f. o. b. cars at the same point. ORDER OF SEPTEMBER 1, 1918. Thirty cents was thereafter to be deducted from nil prices for by-product coke as previously published, except in the State of Washington. Gas coke. Under the original orders regulating the sale of coke, the maxi- mum price of gas coke sold for industrial or metallurgical use was to be as that of the Government price for the corresponding grade of coke produced in by-product ovens. Gas coke sold for household purposes was to be sold at the Government price established for anthracite coal in the same locality. On July 8 an order was issued for more definite control of gas coke prices. District? Date when effective. Base price. Localities where anthracite coal is not obtainable: Hun of retorts. ..... July 9,1918 $5.50 Screened above f-inch size do 6.00 Screened and sized about 3-inch size . do 6.50 Screened and sized between J and f inch do 4 50 Run of retorts Aug. 1,1918 5.50 Screened above f-inch size do 6 00 Prepared sizes above f-inch size do 6.50 Prepared sizes below 3-inch size do 4 50 Colorado, except at Colorado Springs: Run of retorts Sept. 30,1918 5.50 Screened over f inch do 6.00 Prepared sizes above f-inch do 6.50 4 50 Run of retort Nov. 27,1918 6.00 Run of retort screened over '{-inch scrocn do 6.50 Prepared sizes above '-inch do 7.00 Prepared sizes below f-inch do 5.00 Colorado Springs (') Indiana, at Evansville: Nov 4 1918 7.45 Run of retort screened over f-inch screen 7.95 8.45 Prepared sizes below 3 -inch 6.45 1 Prices as scheduled, plus 50 cents per ton. Where anthracite coal was obtainable, the maximum prices of various grades of gas coke were to be as follows : Screened and sized above $ inch, the same price as that established for stove anthracite in the same locality. Hun of retorts screened about f inch, 25 cents less than the price of stove anthracite. Run of retorts not screened, 75 cents less than the price of stove anthracite. The maximum price of breeze was to be one-half the Government price for run of retorts coke unscreened, made in gas retorts where such breeze was pro- duced. GOVERNMENT REGULATIONS RELATING TO PRICES. 661 An order of August 1, 1918, superseding the above, provided that the maxi- mum price for screened and sized above f inch should be the same as the Government price for the stove anthracite f. o. b. cars at the mines in that district, which took the lowest freight rate to the plant where the coke was produced, plus that freight rate. Other grades were priced as before, with the addition of said freight rate. CHARCOAL. Commodity. Date when effective. Trice per bushel. Lump in bulk July 9 1918 Cents. 30 Lump in bags 'do 32 Screenings in bags 1 do.. 20 NOTE. These prices are per bushel of 20 pounds f. o. b. cars at point of shipment. An order of August 13, 1918, permitted the completion, at the contract price, of contracts for the sale of charcoal, entered into prior to July 8, 1918. JOBBERS' MARGINS AND DISTRIBUTORS' COMMISSIONS. An Executive order of the President of August 23, 1917, established the first margins for jobbers along with the President's prices for anthracite coal : The following regulations shall apply to the intrastate. interstate, and for- eign commerce of the United States, and the prices and margins referred to herein shall be in force pending further investigation or determination thereof by the President. JOBBERS' MARGINS. 1. A coal jobber is defined as a person (or other agency) who purchases and resells coal to coal dealers or to consumers without physically handling it on, over, or through his own vehicle, dock, trestle, or yard. 2. For the buying and selling of bituminous coal a jobber shall not add to his purchase price a gross margin in excess of 15 cents per ton of 2,000 pounds, nor shall the combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of bituminous coal exceed 15 cents per ton of 2,000 pounds. 3. For buying and selling anthracite coal a jobber shall not add to his pur- chase price a gross margin in excess of 20 cents per ton of 2,240 pounds when delivery of such coal is effected at or east of Buffalo. For buying or selling anthracite coal for delivery west of Buffalo a jobber shall not add to his pur- chase price a gross margin in excess of 30 cents per ton of 2,240 pounds. The combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of anthracite coal for delivery at or east of Buffalo shall not exceed 20 cents per ton of 2,240 pounds, nor shall such com- bined margins exceed 30 cents per ton of 2,240 pounds for the delivery of anthracite coal west of Buffalo ; provided that a jobber's gross margin realized on a given shipment or shipments of anthracite coal may be increased by not more than 5 cents per ton of 2,240 pounds when the jobber incurs the expense of rescreening it at Atlantic or lake ports for transshipment by water. Additional regulations were announced by the United States Fuel Adminis- tration on October 6, 1917. REGULATIONS CONCERNING JOBBERS. Operators who maintain their own sales department, whether in their own name or under a separate name, and dispose of coal directly to the dealer or consumer shall not charge any jobber's commission. A jobber must be entirely independent of the operator in fact as well as in name in order to be entitled to charge a jobber's commission. Free coal shipped from the mines subsequent to the promulgation of the President's order fixing the price for such coal shall reach the dealer at not 662 HISTORY OF PRICES DURING THE WAR. more than the price fixed by the President's order plus only the prescribed jobbers' commission (if the coal has been purclmsed through a jobber) and transportation charges. A jobber who had already contracted to buy coal at the time of the Presi- dent's order fixing the price of such coal and who was at that time already under contract to sell the same may nil his contract to sell at the price named therein. A jobber who at the time of the President's order fixing the price of the coal in question at the mine had contracted to buy coal at or below the President's price and at that time had no contract to sell such coal shall not sell the same at a price higher than the purchase price plus the proper jobber's commission as determined by the President's regulation of August 23, 1917. A jobber who at the time of the President's order fixing the price of the coal in question was under contract to deliver such coal at a price higher than a price represented by the price fixed by the President or the Fuel Adminis- trator for such coal plus a proper jobber's commission as determined by the President's regulation of August 23, 1917, shall not fill such, contract with coal purchased after the President's order became effective and not contracted for prior thereto at a price in excess of the President's price plus the proper jobber's commission. A jobber who at the date of the President's order fixing the price of the coal in question held a contract for the purchase of coal without having already sold or contracted to sell such coal shall not soil such coal at more than the price fixed by the President or the Fuel Administrator for the sale of such coal after the date of such order plus the jobber's commission as fixed by the President's regulation of August 23, 1917. Every jobber of coal or coke in the United States shall file with the Federal Trade Commission, Washington. D. C., on or before October 25, 1917, a state- ment showing (1.) his name; (2) post-office address; (-3) date of the establish- ment of his business; (4) names of stockholders, members, and partners of the jobbing concern; (5) financial interests of stockholders, members, and partners of the jobbing concern in any mine producing coal. Any jobbing concern which may be established after the issuance of this regulation shall immediately upon its organization file a similar statement with the Federal Trade Commission. 1 On March 15, 1918, the President issued a proclamation licensing all persons engaged in the business of distributing coal and coke except those exempted by Congress. Licenses were required by April 1, 1918, and licenses included job- bers, brokers, selling agents, purchasing agents, wholesalers or dealers in any capacity. A license board was appointed by the Fuel Administration, and regulations governing licenses were effective April 1, 1918. 2 RETAIL PRICES. Local committees were organized for determining the proper basis for sales by retail dealers. Retail gross margins were established by the Fuel Administrator on October 1, 1917. On and after the 1st day of October, 1917, in making prices and sales to consumer, the retail gross margin (as hereinafter defined) added by any retail dealer to the average cost (determined as hereinafter provided) of any size or grade of coal or coke for each class of business shall not exceed the average gross margin added by such dealer for the same size or grade for each class of business during the calendar year 1915, plus 30 per cent of said retail gross margin for the calendar year 1915: Provided, hoirercr. That the retail gross margin added by any retail dealer shall in no case exceed the average added by such dealer for the same size, grade, and class of business during July, 1917. By this order retailers are required to fix a retail gross margin which may 1 Modifications of these regulations issued from time to time appear in pp. 444-45L' of the General Orders, Regulations, and Rulings of the Fuel Administration. 2 General Orders, Regulations, atid Rulings of the Fuel Administration, pp. 452-467. GOVERNMENT REGULATIONS RELATING TO PRICES. 663 be less than but shall not in any instance exceed the margin added by them in 1915 plus 30 per cent thereof. Definition of retail gross margin. The retail gross margins of the different classes of retail coal and coke dealers are denned as : (1) The difference between the price charged by a retail coal or coke dealer to consumers and the average cost of coal or coke to such retailer, free on board railroad cars at his railroad siding, yard, pocket, or trestle, when such coal or coke is received by him by rail. (2) The difference between the price charged by a retail coal or coke dealer to consumers and the average cost of coal or coke to such retailer free along- side his wharf, pocket, or water yard, when such coal or coke is received by him by water. (3) The difference between the price charged by a retail coal or coke dealer to consumers and the average cost of coal or coke to such retailer at whole- salers' pockets, trestles, railroad sidings, mines, tipples, dumps, docks, yards, or wharves. 1 PETROLEUM. There was never any Government regulation of petroleum prices, but prices were stabilized through the cooperation of the Petroleum War Service Committee with the Oil Division of the Fuel Administration. The chief of the oil division in a letter to the chairman of flu-* \Var Industri:>* Board, under date of April 25, 1918, made the following statement : " The petroleum war service committee, as a result of an extended conference with me on the subject of prices-, have requested that prices of petroleum pns-.l- ncts be fixed in the same way that steel prices were fixed. If this be done, it will greatly simplify the matter of allocation of purchases." a The matter was referred to the price-fixing committee and some discussion of it appears in the minutes of the price-fixing committee for July 15, 1918, but no action was ever taken. 1 The petroleum war service committee finally worked out a stabilization policy acceptable to the oil division. This plan of August, 1918, was effective on contracts entered into after May 17, 1918, and was to continue in force until November 1, 1918, or thereafter. This plan applied to certain petroleum producing districts : For the Appalachian division: 1. That the large purchasing companies con- tinue to purchase crude oil at their posted market price, and that all other purchasers who now pay a premium for crude oil be hereafter permitted to pay a premium not to exceed 10 cents per barrel above the posted prices for the various grades of crude oil. 2. That all producers are requested to make monthly sales of their crude oil. The Mid-continent division : 1. That the large purchasing companies continue to purchase crude oil at their posted price in the Mid-continent field, and that all other purchasers who now pay a premium for crude oil be permitted hereafter to pay up to a maximum premium above posted market prices as follows : For Gushing crude, a maximum premium of 75 cents per barrel. For Yale and Inay, a maximum premium of 50 cents per barrel. For Garber crude, a maximum premium of $1.50 per barrel. For Billings crude, a maximum premium of 75 cents per barrel. For Kay County crude, a maximum premium of 75 cents per barrel. For Healdon crude, a maximum premium of 30 cents per barrel. For all other crudes for the whole Mid-continent division, including Kansas, Oklahoma, and northern Texas, a maximum premium not to exceed 25 cents per barrel with the strict understanding that in no district in which premiums are being paid of less than 25 cents per barrel, will the United States Fuel Administrator permit the paying of a higher premium than is now in effect. 1 Detailed regulations appear in pp. 199-204 of the General Orders, Rules, and Regulations. 2 Minutes of War Industries Board and letter in correspondence flies. 3 Minutes of price-fixing committee, Vol. VI, July 15, 1918. 664 HISTORY OF PRICES DURING THE WAR. Gulf coast and northern Louisiana division: 1. That the large purchasing companies in the Gulf coast territory be requested to establish a posted price for crude oil effective as of August 1, 1918, of $1.80 per barrel, and continue to pay said price until November, 1918; and that a maximum premium be es- tablished above the posted price of 10 cents per barrel, with the strict under- standing that in no district in which premiums are being paid of less than 10 cents per barrel, will the United States Fuel Administrator permit the paying of a higher premium than is now in effect. 2. That the large purchasing companies establish a differential of 25 cents per barrel below the posted price of Gulf coast oil for northern Louisiana heavy oil below 32d. gravity, and that a premium of 10 cents per barrel be permitted on this grade of oil ; that on light crude oil a premium of 25 cents per barrel be permitted, with the strict understanding that in no case where premiums of less than 10 cents and 25 cents per barrel, respectively, have been paid, will the Fuel Administrator permit the paying of higher premiums than are now in effect. 1 . Tlie Fuel Administrator fixed the price of certain petroleum products to pur- chasing agents of allied Governments on purchases from May 20, 1918, to July 19, 1918: F. O. B. GULF PORTS. Trice per gallon (cents). Pounds gallon. Fuel oil British Admiralty specifications 150 Abel flash . 5.50 5.25 7.50 21.00 30.00 3 6 51 Fuel oil, United States Navy specifications Standard white refined kerosene 135 fire test, minimum gravity 44 Baume Gasoline United States Navy specifications ' " Aviation naphtha, British specifications, 302 F. final boiling point F. O. B. NORFOLK, BALTIMORE, PHILADELPHIA, AND NEW YORK. Fuel oil, United States Navy specifications Standard white refined kerosene, 135 fire test, minimum gravity 44 Baum6. Gasoline, United States Navy specifications Aviation naphtha, British specifications, 302 F. final boiling point Mexican reduced oil, 14/16 gravity for bunker purposes 7.50 8.25 ,23.50 32.00 6.00 4. METALS AND METAL PRODUCTS. The formal fixing of maximum prices in this group began on September 21, 1917, when the price of copper was fixed by the War Industries Board. Fol- lowing this date price fixing was extended, first, by the War Industries Board, and after April, 1918, by the price-fixing committee, to cover other metals and their products. A detailed summary of the Government regulations pertaining to the fixed price of aluminum, copper, iron, and steel, lead, manganese ore, nickel, platinum, quicksilver, silver, and zinc is presented in the following schedules : ALUMINUM. In the fall of 1917 the Aluminum Co. of America agreed to accept direct and indirect Government orders at the current price of 30 cents, base. If the price were fixed later at a lower point, the United States Government would receive the difference between this contract price and the fixed price. On March 2, 1918, the War Industries Board and the producers agreed upon a maximum base price of 32 cents per pound f. o. b. United States producing plant for 50 tons and over of ingot of 98 to 99 per cent. The conditions accompanying the agreement were: First, the producers of aluminum will not reduce the wages now being paid ; second, aluminum shall be sold to the public in the United States and to the Allies at the United States Government price; third, they will take the necessary measures, under the direction of the War Industries Board, for the distribution of aluminum to prevent it from falling into the hands of speculators who might increase the price to the public; and, fourth, they will pledge themselves to exert every effort necessary to keep up the production of aluminum so as to insure an adequate supply so long as the war lasts. After an investigation by the price-fixing committee and the Federal Trade Commission of the costs of producing aluminum, the following announcement was made on May 28, 1918 : The President has approved an agreement made between the producers of aluminum and the price-fixing committee of the War Industries Board (after investigations by this committee in conjunction with the Federal Trade Com- mission as to the cost of production) that the new maximum base price for aluminum, effective June 1, 1918, to September 1, 1918, shall be 33 cents per pound f. o. b. United States producing plants, for 50 tons and over, of ingot of 98 to 99 per cent. Differentials for sheet, rod, and wire will be increased by approximately 12^ per cent; differentials for alloys will remain as here- tofore, i. e., those approved by the price-fixing committee of the War Industries Board on March 3, 1918. The new prices will be effective on deliveries made during the period from June 1, 1918, to September 1, 1918, on contracts made during said period; and furthermore, the new prices will be effective on deliveries made during said period on existing contracts which specify that the price shall be that in force at the time of delivery. Deliveries made during the period June 1, 1918, to September 1, 1918, on other contracts shall be at the price stated in such contracts, except that on existing " direct and indirect Government contracts " containing a provision that refund is to be made of the difference between the price stated in the contract and the " Government fixed price, if, as, and when i Quoted' from the Plan to Stabilize Prices and Maintain Uninterrupted Flow of Crude, issued by the national petroleum war service committee, New York City, Aug. 18, 1918. 665 666 HISTORY OF PRICES DURING THE WAR. made," such difference shall be refunded on deliveries made during the period from June 1, 1918, to September 1, 1918, on presentation of proper proof that the purchasing Government gets the benefit of the refund. The conditions are as formerly: First, the producers of aluminum will not reduce the wages now being paid ; second, aluminum shall be sold to the United States Government, to the public in the United States, and to the allied governments at the same maximum base price ; third, they will take the neces- sary measures, under the direction of the War Industries Board, for the distribution of aluminum to prevent it from falling into the hands of specu- lators who might increase the price to the public; and, fourth, they will pledge themselves to exert every effort necessary to keep up the production of aluminum so as to insure an adequate supply so long as the war lasts. The prices of June 1, 1918, were continued on September 1, 1918, and re- mained effective until March 1. 1919. The following prices represent the official schedules issued by the nonferrous metals section of the War Industries Board : ALUMINUM. [Prices in cents per pound.] Ingot. Mar. 6-May 31, 1918. June l, 1918-Mar. 1, 1919. 1-ton lots. 15-ton lots. 50-ton lots. 1-ton lots. 15-ton lots. 50-ton lots. 98 per cent grade 32.20 31.40 32.40 31.60 32.40 32.10 31.30 32.30 31.50 32.30 32.00 31.20 32.20 31.40 32,20 33.20 32. -10 33. 40 32.60 33.40 33.10 32.30 33.30 32. 50 33.30 33.00 32.20 33.20 32.40 33.20 94 per cent grade 98 per cent grade (granulated) 94 per cent (granulated) No. 12 alloy F. o. b. producing plant (extras):- Cents per pound. For guaranteed 99 per cent (above the price of 98 per cent) 20 For shipment from warehouse (plus freight from producing plant) 50 For 500 pounds to 1,999 pounds 1 For 50 pounds to 499 pounds 3 For less than 50 pounds 5 FLAT SHEET. [Prices in cents per pound.) Mar. 6-May 31, 1918. June 1, 1918-Mar. 1, 1919. Gauge. 1-ton lots. 15-ton lots. 50-ton lots. 1-ton lots. 15-ton lots. 50-ton lots. Nos. 18 and heavier 3 to 60 inches 40 40 40 20 40.00 42.40 42.20 42 00 N os. 19 and 20, 3 to 60 inches 41.40 41.20 41.00 43.50 43.30 43. 'JO ^^ to 30 inches 30 to 48 inches 48 to 60 inches _ T _ , _(3 to 30 inches 43.40 45.40 48.40 46 40 43.20 45. 20 48.20 46 20 43.00 45. 00 48.00 46 00 45.80 48.00 51.40 49 20 45.60 47. 80 51.20 49 00 45.40 47.60 51.00 48. 80 Nos. 25 and 26 \3oto 48 inches " " 48.40 48.20 48.00 51.40 51.20 51.00 TJ 97/3 to 30 inches 47 40 47.20 47 00 50 30 50. 10 49.90 - z '\ 30 to 48 inches 50.40 50.20 50.00 53.70 53.50 53. 30 N, 9fi f 3 to 30 inches 49.40 49.20 49.00 52.50 52. 30 52.10 IN o. ^30 to 4g inches 52.40 52.20 52.00 55.90 55.70 55. 50 Vrt 9Q/3 to 30 inches 52.40 52.20 52.00 55.90 55.70 55.50 IN o. ^ 3 to 43 inches 56.40 56.20 56.00 60.40 60.20 6(100 No. 30, 3 to 30 inches .. 54.40 54 20 54,00 58.20 58.00 57.80 F. o. b. Producing plant (extra): Per pound. For guaranteed 99 per cent SO. 20 For shipment from warehouse (plus freight from producing plant) 1. 00 For 500 pounds to 1,999 pounds 01 For 50 pounds to 499 pounds 03 For less than 50 pounds - 05 NOTE. Grades 33 and 9S per cent. GOVERKMEXT REGULATIONS RELATING TO PRICES. 667 FLAT SHEET CIRCLES. Nos. 18 and heavier, 3 to 60 inches Nos. 19 and 20, 3 to 60 inches 42.40 43.40 42.20 43.20 42.00 43.00 4-1.70 45. 80 44.50 45 60 &JD 45 40 [3 to 30 inches... Nos. 21 to 24, inclusive^ 30 to 48 inches.. 148 to 60 inches. Nas. 25 and 26 . . J 3 inches . . 45. 40 47.40 50.40 48.40 45. 20 47.20 50.20 48.20 45.00 47.00 50.00 48.00 48.00 50.30 53.70 51.40 47.80 50.10 53.50 51.20 47.60 49.90 53.30 51.00 \30 to 48 inches. jf 27 /3 to 30 inches.. 50.40 49.40 50. 20 49. 20 50.00 49.00 53.70 52.50 53.50 52.30 53.30 52.10 \30 to 48 inches . NT- o /3 to 30 inches.. 52.40 51.40 52. 20 51.20 52.00 51.00 55.90 54.80 55.70 54.60 55.50 54.40 "\30to48inches. KT 2 Q J3 to 30 inches.. 54.40 54.40 54.20 54.20 54.00 54.00 58.20 58.20 58.00 58.00 57.80 57.80 \30to48inches. No. 30, 3 to 30 inches 58.40 56.40 58.20 56-20 58.00 56.00 62.70 60 40 62.50 60 20 62.30 60 00 F. o. b. producing plant (extras) : ^ !Vr pound. For guaranteed 99 per cent $0. 20 For shipment from warehouse (plus freight from producing plant* 1. 00 For 500 pounds to 1,999 pounds .01 For 50 pounds to 499 pounds .03 For less than 50 pounds .05 NOTE. Grades 38 and 98 per cent. 17-L. FLAT SHEET. Nos. 18 and heavier 3 to 40 inches 59.40 59.20 59 00 63 80 63 60 63 40 Nos. 19 and 20, 3 to 24 inches 60.40 60.20 60.00 64.90 64 70 64 50 Nos. 21 to 24, inclusive, 3 to 24 inches Nos. 25 and 26, 3 to 24 inches 62.40 65 40 62.20 65 20 62.00 65 00 67.20 70 50 67.00 70 30 66.80 70 10 No. 27, 3 to 24 inches 66 40 66 20 66 00 71 70 71 50 71 30 No. 28, 3 to 24 inches 68.40 68 20 68 00 73 90 73 70 73 50 No. 29, 3 to 24 inches 71 40 71 20 71 00 77 30 77 10 76 90 No. 30, 3 to 24 inches 73.40 73.20 73 00 79 50 79 30 79 10 F. o. b. producing plant (extras) : ivr pound. For shipment from warehouse (plus freight from prodxicing plant) 1.00 For 500 pounds to 1,999 pounds . 01 For 50 pounds to 499 pounds ^ . 03 For less than 50 pounds . 05 NOTE. These prices include tempering, from above prices. If untempered sheet is ordered, deduct 6 cents COILl-:i> SHEET. Mar.6-May31,1918. Gauge. June 1, 1918-Mar. 1, 1919. Nos. 12 to 17, 3 to 18 inches. . . Nos. 18 to 20, 3 to 16 inches. . . Nos. 21 and 22, 3 to 15 inches. Nos. 23 and 24, 3 to 14 inches. No. 25, 3 to 13 inches No. 26, 3 to 13 inches Nos. 27 and 28, 3 to 12 inches . Nos. 29 and 30, 3 to 12 inches . Nos. 31 and 32, 3 to 12 inches. No. 33, 3 to 12 inches -ton lots. 15-ton ; 50-ton lots. lots. 1-ton lots. 15-ton lots. 50-ton lots. 537.40 $37.20 $37.00 $39.00 $38. 80 $38. 60 38.40 39.40 41.40 43.40 45. 40 38.20 39.20 41.20 43.20 45.20 38. 00 39.00 41.00 43.00 45.00 40.20 41.30 43.50 45. 80 48.00 40.00 41. 10 43.30 45. 60 47. 80 39.80 40.90 43.10 45.40 47.60 F. o. b. producing nlant (extras) : I'IM- pound For guaranteed 99 per cent $0. 20 For shipment from warehouse (plus freight from producing plant) 1 00 For 500 pounds to 1,999 pounds . 01 For 50 pounds to 499 pounds .03 For less than 50 pounds .05 NOTE. Grades 3S and 98 per cent. Coiled sheet wider than the above (if within the limits of equipment) takes the price of flat sheet of the same gauge and width. 668 HISTORY OF PRICES DURING THE WAR. COILED SHEET CIRCLES. Nos. 12 to 17, 3 to 18 inches. . Nos 18 to 20, 3 to 16 inches Nos 21 and 22 3 to 15 inches $39 40 $39 20 $39 00 $4 1 30 41 10 $10 90 Nos. 23 and 24, 3 to 14 inches . . No 25, 3 to 13 inches No 26, 3 to 13 inches . . 40.40 40 20 40 00 42 40 42 20 42 00 Nos. 27 and 28, 3 to 12 inches 41 40 41 20 41 00 43 50 43 30 43 10 Nos. 29 and 30, 3 to 12 inches . . 43.40 43.20 43.00 45.80 45.60 45.40 Nos. 31 and 32, 3 to 12 inches 45 40 45 20 45 00 48 00 47 80 47 60 No. 33, 3 to 12 inches 47 40 47 20 47 00 50 30 50 10 49 90 F. o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent $0. 20 For shipment from warehouse (plus freight from producing plant) 1.00 For 500 pounds to 1,999 pounds .01 For 50 pounds to 499 pounds . 03 For less than 50 pounds . 05 NOTE. Grades 3S and 98 per cent. Coiled sheet circles wider than the above (if within the limits of equipment) take the price of flat sheet circles of the same gauge and diameter. WIRE. Gauge. Spools (pounds) . Mar. 6 to May 31, 1918. June 1, 1918, to Mar. 1, 1919. On spools. In coils. On spools. In coils. Nos 2 to 10 inclusive 50 50 35 20 20 10 10 10 10 5 or 2 5 or 2 5 or 2 1 1 ! $0.44 .47 .50 .57 .63 .75 .84 .96 1.08 1.29 1.49 1.74 2.09 2.49 3.44 4.49 $0. 415 .44 .465 .515 .565 .665 .74 .84 .94 $0. 465 .499 .533 .611 .689 .714 .815 1. 050 1.185 1 421 $0. 437 .465 .493 .549 .606 .718 .803 .915 1.028 Nos. 11 and 12 Nos. 13 and 14 Nos. 15 and 16 .. Nos. 17 and 18 Nos. 19 and 20 ... No 21 No. 22 . . . No. 23 No 24 No 25 1.646 No 26 1 928 No 27 2.321 No 28 2 771 No 29 3.840 No. 30... 5.021 F. o. b. producing plant (extras) : For guaranteed 99 per cent. For shipment from warehouse (plus freight from producing plant). 1 For 500 pounds to 1,999 pounds For 50 pounds to 499 pounds For less than 50 pounds Straightened and cut to length NOTE. Grade 98 per cent. STEEL METALLURGY ROD. [Prices in cents per pound.] Per pound. $0 20 00 01 03 05 05 Mar. 6-May 31, 1918. June 1-Mar. 1, 1919. 1-ton lots. 15-ton lots. 50-ton lots. 1-ton lots. 15-ton lots. 50-ton lots. | inch, 98 to 99 per cent rolled 33.20 32.40 33.10 32.30 33.00 33.20 34.30 33.40 34.20 33.30 34.10 33.20 inch 94 to 98 per cent rolled F. o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent (above the price of 98 per cent)__ $0. 20 For shipment from warehouse (plus freight from producing plant) 1. 00 For 500 pounds to 1,999 pounds .01 For 50 pounds to 499 pounds . 03 For less than 50 pounds . 05 GOVERNMENT REGULATIONS RELATING TO PRICES. 669 ROD. Mar. 6-May June 1. 1918- 31, 1918. Mar. 1, 1919. i to f inch, 98 per cent rolled and drawn $46 00 $48 80 | to 1 inch, advancing by 32ds ] 1 to 2f inches, advancing by 16ths j-98 per cent rolled 41 00 43 10 2 to 3J inches, advancing by 8ths F. o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent $0. 20 For shipment from warehouse (plus freight from producing plant) 1.00 For 500 pounds to 1,999 pounds .01 For 50 pounds to 499 pounds . 03 For less than 50 pounds .05 NOTE. Price includes straightening and cutting to length. COPPER. At the request of the President, the War Industries Board on September 21, 1917, in conference with the producers of copper, fixed the maximum price of copper at 23.5 cents per pound. This price was made to apply to sale of copper to the United States and allied Governments and to the American public. The agreement was subject to the following conditions: First, that the pro- ducers of copper will not reduce the wages now being paid; second, that they will sell to the United States Government, to the public in the United States, and to the allied Governments at not above the maximum price ; third, that they will take the necessary measures, under the direction of the War Industries Board, for the distribution of copper to prevent it from falling into the hands of speculators, who might increase the price to the public ; and fourth, that they will pledge themselves to exert every effort necessary to keep up the production of copper so as to insure an adequate supply so long as the war lasts. The following summary table indicates the changes in the fixed price of cop- per made from time to time by the War Industries Board and the dates at which those changes were made: Price per pound (cents). Date when effective. Date of revision. 23.5 September 21, 1917 January 23 1918 23 5 January 23, 1918. June 1 1918 23 5 June 1, 1918 August 15 1918 26i July 2, 1918 Do 262 August 15, 1918 November 1 1918 26 November i, 1918 January 1, 1919. ' 1 F. o. b. cars or lighters at refinery if shipped from eastern refineries; f. o. b. New York if shipped from western refineries. 2 F. o. b. cars or lighters at eastern refineries; f. o. b. cars or lighters at Pacific coast refineries for Pacific coast destinations; i. o. b. cars or lighters New York if shipped to eastern or interior destinations frcm Pacific coast refineries or from refineries in the interior of the United States. 3 Price control was discontinued on this date. On June 5, 1918, a schedule of differentials was announced. The schedule follows : Differentials of June 5, 1918. Listed rectangular cakes : 801 to 1,500 pounds___ $3. 50 1,501 to 3,300 pounds 4. 50 3,301 to 4,800 pounds 6. 00 Bowl cukes 3. 00 Ingots *_ 1. 00 Round cakes __ 3. 00 Slabs $1. 50 Wire bars, 300 to 500 pounds 2. 50 Wedge bars or cakes 3. 50 Billets : 4 and 5 _ 15. 00 6 12. 00 7 and 8 10.00 These differentials were recommended by the nonferrous metals section of the \Var Industries Board and approved by price-fixing committee. 670 HISTORY OF PRICES DURING THE WAR. IRON AND STEEL. The first price agreement between the War Industries -Board and representa- tives of the iron and steel industry was announced on September 24, 1917. Maximum prices of iron ore. coke, pig iron, steel bars, shapes, and plates were in that agreement fixed to become immediately effective and to be subject to revision on January 1, 1918. On October 11 and again on November 5, 1917. schedules of basic maximum prices on additional intermediate and finished iron and steel products were announced. Maximum prices of other products in this group became effective with the issue of schedules on November 13. November 20, and December 22, 1917, and on January 7, 1918. The prices of all iron and steel products not specifically mentioned in these schedules were to be fixed by the industry in conformity with those already announced. These price schedules carried with them the following stipulations: First, there shall be no reduction in the current rate of wages; second, the fixed prices shall apply to purchases by the United States and Allied Governments and by the American public; and, third, every effort shall be exerted by the industry to maintain a high level of production. Cast-steel slugs. On September 25, 1918, a maximum price of 4$ cents per pound f. o. b. Pittsburgh was announced for cast steel slugs. This price continued until December 31, 1918. Steel rails. On December 3, 1918, the price-fixing committee fixed the fol- lowing prices for steel rails to apply to orders placed by the War and Navy Departments : Bessemer rails, $55 per gross ton f. o. b. mill. Basic rails, $57 per gross ton f. o. b. mill. These prices pertained to contracts already made by War and Navy Depart- ments and were not to affect contracts made subsequent to December 3, 1918. The price schedules below include all original base prices and all changes in base prices as issued by the American Iron and Steel Institute in January, August, and November, 1918. All schedules of differentials, extras, discounts from published lists, classifications, and announcements by the committee on steel and steel products of the Iron and Steel Institute are not here included, but they can be found in the pamphlets issued by the American Iron and Steel Insti- tute in January, August, and November, 1918. Commodity. Date or period. Price fixed. Lower Lake ports. $5.05 per gross ton. $0.45 per ton additional. $0.25 per ton additional. Increases are due to increased freight rates, and are subject to change with further changes in freight rates. $6 per net ton. $33 per gross ton, f. o. b. furnace. $34 per gross ton. $33 per gross ton, f. o. b. furnace. $32 per gross ton, f. o. b. furnace. $33 per gross ton. $32.50 per gross ton. F. o. b. Birmingham. * F. o. b. Pittsburgh. F. o. b. furnace. Mesabi Range, non-Bessemer Sept. 24, 1917 July 1, 1918 Oct. 1, 1918 Sept. 24, 1917 do Do Do Coke Connellsville Pig iron: No. 2 foundry Basic. Oct. 1, 1918 Sept. 24, 1917 Apr. 1, 1918 Oct. 1, 1918 do Standard Bessemer Changes in basing points do Virginia, Tennessee, and Birmingham districts and the scattering districts south of the Ohio and Potomac Rivers, including furnaces at St. Louis but not those bordering on the Ohio River. Eastern district; i. e., from all blast fur- naces located east of the Alleghany Mountains and north of the Potomac River. From all other producing districts or furnaces. ' GOVERNMENT REGULATIONS RELATING TO PRICES. 671 Commodity. Date or period. Price fixed. Iron and steel scrap. . . F. o. b. consuming point. $30 per gross ton, $29 per gross ton. $35 per gross ton. $20 per gross ton. $3.50 per 100 pounds. Per net ton of 2,000 pounds, without penalty. $55 i-F. o. b. Birmingham. fCO/ $55. 35) $62.70VF. o. b. New York. $67. 70J $54.35) S61.80>F. o. l>. Chicago. #%.*)> F. o. b- maker's mill. $3. 75 per 100 pounds, F. o. b. cars Pittsburgh. $4. 50 per 100 pounds. F. o. b. Pittsburgh or Youngstown, Ohio. $47. 50 per gross ton. $51 per gross ton. $50 per gross ton. Sol per gross ton. F. o. b. Pittsburgh. $3.25 per 100 pounds. $3.. 50 per 100 pounds. $3.75 per 100 pounds. $4 per 100 pounds. F. o. b. Pittsburgh. $60 per gross ton. F. o. b. maker's mill. $73 per gross ton. $2.90 per 100 pounds f. o. b. maker's mill. $3 per 100 pounds f. o. b. maker's mill. F. o. b. Pittsburgh. $3.50 per 100 pounds. Do. Do. F. o. b. Pittsburgh or Chicago $3 per 100 pounds. $3.25 per 100 pounds f. o. b. Pittsburgh or Chicago. F. o. b. Pittsburgh. F. o. b. maker's mill. $3 per 100 pounds. F. o. b. maker's mill. $0.16 per complete joint. $1 per complete joint. F. o. b. maker's mill. $3.25 per 100 pounds for 25 gross tons or more. F. o. b. maker's mill. $3.25 per 100 pounds. $2.90 per 100 pounds. $3.15 per 100 pounds. $3.25 per 100 pounds. Discount of 52 and 5 and 21 per cent from manufacturers' published standard list. F. o. b. Pittsburgh. $3.40 per 100 pounds. $3.55 per 100 pounds. F. o. b. Pittsburgh. $3.25 per 100 pounds. Discount of 17 per cent from list pub- lished in pamphlet. $6.50 per 100 pounds. No 1 heavy melting scrap Nov. 5, 1917 Apr. 1, 1918 Nov. 5. 1917 do Do No. 1 railroad wrought Cast-iron borings and machine-shop turnings Iron products: Iron bars, base sizes Nov. 13,1917 Cast-iron water pipe, 6-inch and larger, class B or heavier. k Boiled tie plates Dec. 22,1917 Oct. 1, 1918 Dec. 22,1917 June 25,1918 Oct. 1, 1918 Dec. 22,1917 June 25,1918 Oct. 1,1918 Dec. 22,1917 Iron . ; Steel (see Steel products). Standard railroad spikes . . . Dec. 22,1917 Oct. 11,1917 Iron Steel products: Blooms, billets, slabs, and sheet bars Blooms and billets, 4 by 4 inches and larger. Blooms and billets smaller than 4 by 4 inches. Slabs Sheet bars Shell bars.. Oct. 11,1917 3 to 5 inches Over 5 to 8 inches . . Over 8 to 10 inches . Over 10 inches Forging steel. . Nov. 13,1917 Billets, blooms, and slabs Forging ingots (basic or acid open-hearth steel). Up to and including 36 inches diameter, with carbon not over 0.25, cast in chilled molds. Steel bars and small shapes (under 3 inches, including shell steel). Rail steel bars (rolled from old steel rails) Steel bands, hoops, and strips Dec. 22,1917 Sept. 24,1917 Dec. 22,1917 May 21,1918 Bands... Hoops Hot-rolled strip steel . . . Steel structural shapes . . Sept. 24, 1917 3-inch and over Steel plates Sept. 24, 1917 July 1, 1918 Nov. 20,1917 Light rails (45 pounds per yard and under). . . Including 10 per cent lengths, down to and in eluding 1 24 feet. Splice joints complete for light rails Dec. 22,1917 8-pound section Ranging to 45-pound angle bars Rolled steel angle splice bars Standard sections T rails, 50 pounds per yard and heavier. Rolled tie plates Dec. 22,1917 Dec. 22,1917 Steel... Skelp Oct. 11,1917 Grooved skelp Universal skelp Sheared skelp Steel pipe Nov. 5, 1917 f-inch to 3-inch black Boiler tubes . . Nov. 13,1917 Special skelp Base sires Other sizes Seamless steel tubes . Nov. 13,1917 Round billets, base sizes Cold-rolled and cold-drawn steel Nov. 5, 1917 Nov. 20,1917 Cold-rolled strip steel 1J inch and wider, 0.100 inch and thicker, hard temper, in coils under 0.20 carbon. 672 HISTORY OF PRICES DURING THE WAR. Commodity. Date or period. Price fixed. Steel products Continued. Hot-rolled trip steel Nov. 20,1917 F. o b Pittsburgh Finished $4 50 per 100 pounds Unfinished, for cold rolling $3.50 per 100 pounds Sheets (Bessemer and open-hearth) No. 28 black sheets Nov. 5,1917 F. o. b. Pittsburgh. $5 per 100 pounds. No. 10 blue annealed . $4.25 per 100 pounds No. 28 galvanized $6 25 per 100 pounds Tin plate, coke base (Bessemer and open- hearth grades). Standard steel cut nails Nov. 5,1917 Dec. 22,1917 $7.75 per 100-pound base box f. o. b. Pittsburgh. F. o. b. Pittsburgh 20d to 6d $4 per 100 pounds Cut tacks, brads, shoe finders' goods, etc. (to the jobbing trade). Net base Nov. 20,1917 $8 80 per 100 pounds Steel wood screws Nov. 20,1917 Discounts from standard list Chain . F. o b Pittsburgh f-inch common steel- proof coil chain, self- colored or blacked. 1-inch base Nov. 20,1917 May 21,1918 $8 per 100 pounds. $7.50 per 100 pounds. Boat spikes, base sizes Nov. 13,1917 $5.25 per 100 pounds f o b Pittsburgh. Standard railroad spikes Steel i\ by 4\ inches and heavier 200 Dec. 22,1917 F. o. b. cars, Pittsburgh. $3.90 per 100 pounds. kegs or more "(200 pounds each). Less than 200 kegs 1 per 100 pounds extra. Iron (see iron products). Standard railroad track bolts Dec. 22,1917 F. o. b. cars Pittsburgh. Standard button head, oval neck, 3^ $4.90 por 100 pounds. inches and larger, by f inch and larger, with United States standard square nuts and rolled threads, 200 kegs or more (200 pounds each). Less than 200 kegs $1 per 100 pounds, extra. Bolts, nuts, and rivets F. o. b. Pittsburgh. Large rivets /Nov. 13,1917 $4.65, base. Boiler \May 21,1918 .. ..do $4.40, base. $4.50, base. Horse and mule shoes July 16,1918 Per 100 pounds f. o. b., Pittsburgh. Extra swaged, extra light, light, medium, heavy, long heel, short heel, city pat- tern, and snow shoes, also mule shoes No. 2 and larger. Calks July 16 1918 Per 100 pounds f . o. b. Pittsburgh. Toe- Blunt, medium, flat, and square pat- tern 200-ton lots and over $5.50. Less than 200 tons to carloads , in- $5.75. clusive. Less than carloads $5.90. Sharp pattern 200-ton lots and over $6.00. Less than 200 tons to carloads , in- $6.25. clusive. TT i Less than carloads $6.40. Blunt and medium pattern- 200- ton lots and over. Less than 200-tons to carloads, in- clusive. Less than carloads Sharp pattern 200-ton lots and over Less than 200 tons to carloads, in- clusive. Less than carloads Tool steel High speed- High speed Tungsten finishing steel Carbon Nonshrinkable Special Extra Regular Jan. 7,1918 Wire and wire products Wire rods, No. 5 common Wire, plain Wire products- Barbed wire, standard two-point and four- point hog and cattle pattern, painted. Wire nails, 20d to 60d, common Wire rope. Oct. 11,1917 Nov. 5,1917 .do. Nov. 13,1917 ....do Aug. 28, 1918 $6.00. $6.25. $6.40. $6.50. $6.75. $6.90. Mill shipments f. o. b. point of ship- ment and net without discount. $2 per pound. $0.65 per pound. $0.35 per pound. $0.23 per pound. $0.1 8 per pound. $0.15 per pound. Add 1 cent to each of above prices when shipped from maker's ware- house stocks. F. o. b. Pittsburgh. $57 per gross ton. $3.25 per 100 pounds. $3 .65 per 100 pounds. $3.50 per 100 pounds. Discounts or additions applying to standard list. GOVERNMENT REGULATIONS RELATING TO PRICES. 673 LEAD. The price of lead was never formally fixed, but was regulated by informal agreements between the War Industries Board and the lead producers. On December 17, 1917, a price of 7.75 cents per pound f. o. b. East St. Louis, to be effective from that date until the end of March, 1918, was agreed upon by the nonferrous metals section of the War Industries Board and the lead producers' committee. On April 8, 1918, it was agreed with the approval of the price-fixing com- mittee that the price of lead in any month should be the average monthly price f. o. b. East St. Louis, quoted by the Engineering and Mining Journal in that month. Where the price f. o. b. New York was lower than the price at East St. Louis, 7 cents per 100 pounds was to be deducted from the East St. Louis price. On June 14, 1918, the lead producers' committee agreed that no pig lead other than Government purchases should be sold at more than 7| cents per pound f. o. b. East St. Louis. The Engineering and Mining Journal considered no sales as made at a higher figure in computing its monthly average price at East St. Louis. It was further decided regarding this agreement: 1. It should go into effect at once for an indefinite period. 2. Further contracts should be as slated and existing contracts modified to conform to the agreement. 3. Other lead producers should be urged to become parties to the agreement. The same agreement was extended again in August, 1918, until November 30, 1918, when the agreement expired, and was not renewed. 1 MA'NGANESE ORES. The price of manganese was not fixed formally. A schedule of prices adopted by the American Iron and Steel Institute was api^/oved by the ferro alloys division of the War Industries Board. Since manganese was not bought directly by the United States Government, these prices pertained to purchases by producers of steel. The prices listed below became effective May 29, 1918, and were discontinued on December 31, 1918. The following schedule gives domestic metallurgical manganese ore prices per unit of metallic manganese per ton of 2,240 pounds for manganese ore produced and shipped from all points in the United States west of South Chicago, 111. This schedule does not include chemical ores as used for dry batteries, etc. The prices are on the basis of delivery f. o. b. cars South Chicago and are on the basis of all-rail shipments. When shipped to other destination than Chicago the freight rate per gross ton from shipping point to South Chicago, 111., is to be deducted to give the price f. o. b. shipping point. Schedule for metallic manganese ore containing when dried at 212 F. Per cent. Per unit. 35 to 35.99, inclusive $0. 86 36 to 36.99, inclusive .90 37 to 37.99, inclusive .94 38 to 38.99, inclusive 1 .98 39 to 39.99, inclusive- 1. 00 40 to 40.99, inclusive .. 1. 02 41 to 41.99, inclusive 1. 04 42 to 42.99, inclusive 1. 06- 43 to 43.99, inclusive - 1. 08 44 to 44.99, inclusive 1. 10 1 Report of nonferrous metals section to Mr. Baruch. 125547 20 43 674 HISTORY OF PRICES DURING THE WAR. Schedule for metallic manganese ore containing when dried at 212 F. Continued. Per cent. Per unit. 45 to 45.99, inclusive $1.12 46 to 46.99, inclusive 1. 14 47 to 47.99, inclusive 1. 16 48 to 48.99, inclusive _L , 1. 18 49 to 49.99, inclusive 1. 20 50 to 50.99, inclusive 1. 22 51 to 51.99, inclusive 1. 24 52 to 52.99, inclusive 1.26 53 to 53.99, inclusive 1.28 54 to 54.99, inclusive 1. 30 ADDITIONS TO UNIT PRICES. For manganese ore produced in the United States and shipped from points in the United States east of South Chicago 15 cents per unit of metallic manga- nese per ton shall be added to above unit prices. Above prices are based on ore containing not more than 8 per cent silica and not more than 0.25 per cent phosphorus, and are subject to Silica premiums and penalties. For each 1 per cent of silica under 8 per cent down to and including 5 per cent premium at rate of 50 cents per ton. Below 5 per cent silica, premium at rate of $1 per ton for each 1 per cent. For each 1 per cent in excess of 8 per cent and up to and including 15 per cent silica there shall be a penalty of 50 cents per ton ; for each 1 per cent in excess of 15 per cent and up to and including 20 per cent silica there shall be a penalty of 75 cents per ton. For ore containing in excess of 20 per cent silica a limited tonnage can be used, but for each 1 per cent of silica in excess of 20 per cent and up to and including 25 per cent silica there shall be a penalty of $1 per ton. Ore containing over 25 per cent silica subject to acceptance or refusal at buyer's option, but if accepted shall be paid for at the above schedule with the penalty of $1 per ton for each extra unit of silica. All premiums and penalties figured to fractions. Phosphorus penalty. For each 0.01 per cent in excess of 0.25 per cent of phos- phorus there shall be a penalty against unit price paid for manganese of one- half cent per unit, figured to fractions. In view of existing conditions, and for the purpose of stimulating production of domestic manganese ores, there will be no penalty for phosphorus so long as the ore shipped can be used to advantage by the buyer. The buyer reserves the right to penalize excess phosphorus as above by giving 60 days' notice to the shipper. The above prices to be net to the producer ; any expenses, such as salary or commission to buyer's agent, to be paid by the buyer. Settlements to be based on analysis of ore sample dried at 212 F. The per- centage of moisture in ore sample as taken to be deducted from the weight. On August 17, 1918, the United States Railroad Administration announced the following schedule of freight rates on manganese ore, establishing rates lower than the prevailing rates carried in current tariffs: MANGANESE ORE, CARLOAD, PER TON OF 2,000 POUNDS. [Minimum carload weight, 60,000 pounds.] From stations in Group D. 1 Group 2. 8 Groups B andC.3 Group A. 4 Oregon $11.00 $12.50 $12.50 $15.50 Washington 11.00 12.50 12.50 13.50 California 11.00 12.00 12.50 13.50 Montana 8.00 9.50 9.50 10.50 Arizona 9.00 9.00 10.50 11.50 Colorado ' 7.00 7.00 8.50 9.50 Nevada. .. 10.00 11.00 11.50 12.50 Utah 9.00 10.00 10.50 11.50 New Mexico. . . . . 7.00 7.00 8.50 9.50 1 Group D: Chicago, Indiana Harbor, and Erie. a Group 2: Points in Alabama and Tennessee taking Group C rates. 3 Groups B and C: Youngstown, Pittsburgh, Buffalo, and points in Ohio. Group A: Points in seaboard territory, including Goshen, Graham, Reusens, and Roanoke, Va. GOVERNMENT REGULATIONS RELATING TO PRICES. 675 NICKEL. On January 4, 1918, a resolution was adopted by the War Industries Board stating that it was not necessary at that time to fix the price of nickel. 1 On April 2, 1918, however, an agreement was made with the International Nickel Co. to supply the Government requirements for nickel at the following rates : Cents per pound. Electrolytic nickel 40 Shot nickel 38 Ingot nickel . 35 These prices were to be effective for the duration of the war and were re- moved on January 1, 1919. PLATINUM METALS. The control over the supply and prices of platinum metals was exercised through a series of requisition orders issued by the Ordnance Department and administered by the chemicals division of the War Industries Board. The first ordnance requisition order, No. 510, issued on February 23, 1918, applied to 14 firms dealing in platinum, including refiners, jewelers, and dental supply firms. Under date of May 1, 1918, a second requisition of the War Department was issued through the platinum section of the War Industries Board. This super- seded the order of February 23, 1918, and was to cover all purchases to July 1, 1918. About 900 dealers were affected by this second order. After conference with the Secretary of War, the platinum section announced the following prices for Government purchases of platinum metals : Per troy ounce. Platinum $105 Iridium 175 Palladium 135 On June 21, 1918, the third of the series of requisitioning orders, covering 1,555 firms, was issued. The order became effective June 30, 1918, and con- tinued so until January 1, 1919. The prices of May 1, 1918, were maintained. In this order the prices of all platinum metals were fixed except when the metal was contained in articles of jewelry where the value of the labor exceeded 20 per cent of the value of the metal. The control over platinum metals was terminated on December 1, 1918. QUICKSILVER. The War Industries Board, in conference with the producers of quicksilver, agreed upon the following prices for Government supplies of quicksilver. The prices were effective from April 18, 1918, to January 1, 1919. ' Price.2 Place of delivery. Mine. $105 per flask (San Francisco California, Oregon. 8105 per flask \MareIslandNavyYard Marathon, Tex Nevada. Texas. 1 On May 20, 1918, the matter of fixing the price of nickel was again considered, but it was deemed inadvisable " because of the present capacity being strained to fulfill contracts maturing with the next two years. It was requested and agreed to by the producers that pending a definite settlement of this subject no contract should be extended or future contracts made without first consulting the price-fixing committee." (P. F. C. Min., Vol. IV, May 20, 1918.) 1 For deliveries at New York or Brooklyn, 75 cents per flask was added to the prices here given. ' 676 HISTOEY OF PRICES DURING THE WAR. SILVER. The following letter was sent by Secretary McAdoo to Senator Pittman, of Nevada, who introduced a bill into Congress providing for the use of silver lying idle in the Treasury. The bill was approved by Congress on April 23, 1918. Hon. KEY PITTMAN, United States Senate. MY DEAR SENATOR : I have examined the draft of a bill embodying the ideas which have been discussed between us for the utilization of the silver now lying unused in the Treasury of the United States. I venture to recapitulate briefly the purposes to be accomplished by the bill and the reasons which, in my judg- ment, require its enactment. The annual production of silver has varied in recent years, having fluctuated from 160,000,000 ounces to 226,000,000 ounces per annum, according to the esti- mate of the Director of the Mint. Production for the year 1916 amounted to 156,600,000 ounces, and for the year 1917 'is estimated to be approximately 160,000,000 ounces. The decline in production during recent years has been partly due to conditions in Mexico, as the result of which Mexican mines have not been operated to their full capacity. The price of silver has varied from about 48 cents per fine ounce, at which price it sold during August, 1915, to $1.18 per fine ounce during September, 1917. Apart from industrial requirements, estimated at about 100,000,000 ounces per annum, silver is used by all nations for subsidiary coinage, and by India and other oriental countries for major coinage. In China uncoined silver circulates as money. The European War has greatly enlarged the demand for silver. European countries engaged in the conflict have required unusual quantities of silver coins for their armies and for the civil population. Buying power of oriental coun- tries has been greatly enlarged, and as the importation of commodities has been limited owing to war needs of the belligerents, that buying power has been exercised to acquire silver. China and India are two oriental countries that absorb the largest amounts of silver. The products of India are wheat, jute, burlap, etc. The demand for Indian products has been unusual. Jute bagging is used for sugar, grain, and fertilizer bags ; also as outside wrappers for cotton and other products. It is also used for trench bags and for packing many articles of military necessity. No article has been found that will serve as a substitute. The Orient is willing to accept silver in place of gold for commodities fur- nished by them, and it is to the interest of the United States and its allies that foreign trade balances should, as far as possible, be settled in silver rather than in gold. The gold in this country and in the hands of its allies is needed as a base for the enormous credit structure it is necessary to erect in the process of placing Government loans, and every ounce of silver that can be used in the settlement of foreign balances is so much gained. It is better to settle trade balances by shipping silver than to make arrangements for stabilizing exchange, where these are possible, as they are not in the Orient, because these exchange arrangements, whatever their form, always mean a deferred demand for gold, while the settlement of foreign balances in silver is a definite settle- ment calling for no future adjustments. Further, the unprecedented business activity in this country has caused an unusual demand for silver for subsidiary coinage, the needs of the United States for this purpose during the present year being greater than ever before, amounting, as they do, to approximately 21,250,000 ounces. There are now in the Treasury of the United States approximately 490,000,000 standard silver dollars, containing approximately 375,000,000 ounces of fine silver. Against these * standard silver dollars there are outstanding silver certificates, and so long as these silver certificates remain outstanding a corre- ponding amount of silver dollars must be held for their redemption. The proposal is now made to borrow from the Treasury for the purposes stated above a portion of the silver so held in the Treasury, but only upon the cancellation from time to time of a corresponding amount of outstanding silver certificates. The silver having been so borrowed and used, the Secretary of the Treasury is required to repurchase from time to time, at the fixed price of $1 per fine ounce, an amount of silver equal to the silver so borrowed and used, and to recoin the silver into standard silver dollars, thus in time replacing in the Treasury the silver so withdrawn. In this way the large mass of silver, GOVEKNMENT REGULATIONS RELATING TO PRICES. 677 which is serving no useful active purpose, now can be made available for a direct war purpose. There is no intention of making any permanent change in the status of the silver certificates. The proposition is, in brief, to retire silver certificates; to borrow from the Treasury the silver for use for the war purposes above set forth ; and then, as silver from time to time in the future comes on the market, to replace the silver so borrowed by purchase in the market at the fixed price of $1 per fine ounce and to replace the borrowed silver by coining the new silver acquired for that purpose into standard silver dollars. There is no limit of time within which this must be done. The cost of producing silver, like the cost of producing all other commodi- ties, has greatly increased. Labor is receiving very much higher wages than during normal times. Machinery is more expensive, and the chemicals and other supplies needed in the production of silver are all correspondingly higher in price. The price at which the silver is to be rebought has been fixed in the proposed bill at $1 per ounce. This price was arrived at after an examination by the Director of the Mint into the cost of producing silver in a number of different mines, and the Director of the Mint is of the opinion that $1 per fine ounce under all the conditions at present prevailing is a fair price. The silver released through the retirement of silver certificates will be sold by the Secretary of the Treasury for the war purposes stated, at a price that will permit him without loss to rebuy at the price of $1 an ounce the silver thus sold. The proposed measure is unquestionably in the interest of the country as a whole for the prosecution of the war. It proposes no permanent change in our existing currency arrangements. What is proposed is a temporary change, consisting of the active use for war purposes of the silver now lying inert in the Treasury. The bill provides within itself the steps necessary to reverse that position and to replace and recoin the silver. The arrangement proposed is p"urely a temporary arrangement, and the pressing needs of the United States require, in my opinion, its prompt enact- ment into law. Sections 5, 6, 7, and 8 seem to me the best way of dealing with the con- traction of the circulating medium which would otherwise be brought about through the cancellation of silver certificates. This is accomplished by au- thorizing an issue of Federal reserve bank notes in small denominations in order to fill the void occasioned by the retirement of silver certificates, and provides for the prompt retirement of those Federal reserve bank notes as silver certificates are from time to time reissued. There may well be differ- ences of opinion as to the best method of counteracting such contraction. If no method of meeting the contraction be provided, the contraction will be auto- matically relieved through the issue of legal-tender notes in denominations of ones and twos, Federal reserve notes taking the place of the legal tender notes. This would be perhaps the easiest way of meeting the situation were it not for the fact that Federal reserve notes are now secured by gold reserve of over 60 per cent, and the issue of additional Federal reserve notes without a corre- sponding addition to the gold reserve would reduce the percentage of reserve, Federal reserve bank notes, on the other hand, require a reserve of but 5 per cent, and as there is absolutely no reason why a larger reserve for Federal reserve bank notes should be provided, it seems to me unwise to reduce the percentage of reserve under Federal reserve notes. My Reason for stating that the Federal reserve bank notes, the issue of which is contemplated under the bill, require no greater reserve than 5 per cent is that those notes in small denominations will merely take the place in the pockets of the people of the silver certificates now carried by them, and are thus extremely unlikely to be presented for redemption. If and to the extent that they are presented for redemption, it will be a demonstration that these notes are not needed in the circulation, and the means for their prompt retirement is furnished by the deposit as security for these Federal reserve bank notes of short-time certificates of indebtedness or the one-year conversion notes of the United States. Whenever, therefore, these Federal reserve bank notes are presented for redemption it will only be necessary to let the maturing obligations held against them run off. The popular and well-founded feeling against a bond-secured currency therefore does not apply to the present issue, because (1) the issue is strictly temporary in its nature, (2) the security behind the issue automatically provides for the redemption of the issue, (3) no artificial value is given to any long-time bonds by the circulation privilege and no vested interest is created in the circulation privilege, which, if created, it might prove burdensome for the Government or the banks to abate. 678 HISTORY OF PRICES DURING THE WAR. If the method suggested for dealing with the replacement of the silver certifi- cates that may be retired does not commend itself to you as the best manner of meeting the situation, I should be glad to discuss any modifications that may be thought advisable. Cordially, yours, W. G. McAooo. 1 On August 15, 1918, the Treasury Department authorized the following statement : ^ Under the authority of the act of Congress approved April 23, 1918, silver has been sold by the Secretary of the Treasury at a price which will permit the Treasury from new purchases of a corresponding amount of silver at the price of $1 per fine ounce to recoiii the silver purchased into silver dollars without loss. In order to provide for the various items ,of expense involved it was found necessary to fix the price for which silver was sold at $1.01$ per fine ounce, and it was made a condition of sale that the purchaser should not pay a higher price for silver in other markets than in those of the United States. LIMITS LICENSE FOB EXPORT. Up to the present time the Federal Reserve Board has freely granted licenses for the export of silver. In order, however, to conserve the use of silver, export licenses for silver will hereafter be granted only for civil or military purposes of importance in connection with the prosecution of the war and only in cases where the exporter certifies that the silver to be exported has been purchased at a price which does not directly or indirectly exceed $1.01$ per ounce 1,000 fine, at the point where silver is refined in the United States, or at the point of importation in the case of imported silver. ADDITIONAL REQUIREMENTS. Applications for licenses to export silver should also state from whom the silver was purchased, the point at which silver was delivered to purchaser, for whose account and by whose order, and for what purpose the silver is to be exported. 2 These restrictions were removed by the Federal Reserve Board on May 5, 1919, in the following announcement : On August 15, 1918, the Federal Reserve Board announced that licenses for the export of silver would thereafter be granted only for civil or military pur- poses of importance in connection with the prosecution of the war and only in cases where the exporter certified that the silver to be exported had been pur- chased at a price which did not directly or indirectly exceed $1.01$ per ounce 1,000 fine at the point where the silver is refined in the' case of silver refined in the United States or at the point of importation in the case of imported silver. The occasion which required the above limitations on the export of silver having now passed, the Federal Reserve Board will hereafter, unless a Government necessity should again arise, resume its former policy of granting freely and without condition all applications for the export of silver bullion or of silver coin of foreign mintage. This change of the policy of granting licenses does not do away with the necessity of filing on application for licenses to export silver bullion or silver coin of foreign mintage. Such applications must as heretofore be filed through the Federal reserve banks of the appropriate district, but such applications will, as stated above, be freely granted by the Federal Reserve Board. The Secretary of the Treasury does not contemplate any further sales of silver under the Pittman Act, except to the Director of the Mint. 3 ZINC. On the recommendation of the War Industries Board and with the approval of the President the following maximum prices of zinc became effective on 1 Official Bulletin, Apr. 11, 1918. * Official Bulletin, Aug. 17, 1919. 8 Commercial and Financial Chronicle, May 10, 1919. GOVERNMENT REGULATIONS RELATING TO PRICES. 679 February 13, 1918, were renewed on June 1, 1918, again on September 1, 1918, and remained in effect until January 1, 1919. Grade A, 12 cents per pound f. o. b. East St. Louis. Plate, 14 cents per pound. Slieet, 1 15 cents per pound. These prices were subject to the following conditions : (a) Differentials shown on the producers' lists at that time were to be allowed; (6) the fixed prices applied to new business and not to unfilled contracts made prior to February 14, 1918, 2 and to the following more general provisions : First, that the producers of grade A zinc will not reduce the wages now being paid ; second, they will sell to the Allies, to the public, and to the Government at the same price ; third, that they will take the necessary measures, under the direction of the War Industries Board, for the distribution of the grade A zinc to prevent it from falling into the hands of speculators, who might increase the price to the public ; and fourth, that they pledge themselves to exert every effort necessary to keep up the production of grade A zinc, so as to insure an adequate supply so long as the war lasts. 1 Sheet zinc included all gauges of one-eighth inch thickness and less, and plate zinc ail other gauges. 2 Quoted from letter written on Apr. 23, 1918, by Mr. Pope Yeatman, chief of the non- ferrous metals section of the War Industries Board, to Mr. W. R. Ingalls, editor of the Engineering tand Mining Journal. 5. TEXTILES AND FIBERS. The control over textile and fiber prices, which came somewhat later than over foods, fuels, and metals, was, in the main, begun and carried through by the price-fixing committee. The regulations which were issued by the com- mittee, together with those originating in the War Trade Board, the War Industries Board, and the War Department, are listed below under one or the other of the following heads: Binder twine, burlap, cotton goods, cotton linters, kapok, manila fiber, rags, silk, and wool. BINDER TWINE. (Mar. 1, 1918, to 1919 harvest season.) On March 1, 1918, the Food Administration announced an agreement with the manufacturers of binder twine, fixing the price of binder twine for the 1918 harvest. The following schedule shows the maximum differentials allowed above the cost of sisal to the manufacturers of twine, or 19 cents a pound. In June, 1918, an arrangement was made for the purchase of 500,000 bundles of sisal for the manufacture of twine for the 1919 harvest, at a price of 16 cents per pound. But no change was made in the twine differentials. This contract as it stood at the time of the armistice will probably remain in effect during the 1919 harvest season. STANDARD AND SISAL BINDER TWINE, 500 FEET TO THE POUND,- F. O. B. FACTORY. Cents per pound. Carload lots of 20,000 pounds or more 4 Lots of 10,000 pounds or more, but less than 20,000 pounds 4J All amounts less than 10,000 pounds 4\ Prices for other grades should not exceed the prices of standard and sisal twine by more than the following amounts : Cents increase. 550 feet to the pound If 600 feet to the pound 3 650 feet to the pound 4 650 feet to the pound (pure manila) 6 All of these prices are f. o. b. factory. The Food Administration considered the increased weight of binder twine over the sisal contained therein and the fact that the manufacturers have on hand sisal purchased at lower prices or twine manufactured from lower-priced sisal. BURLAP. (Oct. 4, 1918-Jan. 1, 1919.) With the following announcement on October 25, 1918, the War Industries Board inaugurated the control over the prices of burlap : The War Industries Board, through the jute, hemp, and cordage section, announces it has accepted the offer of the burlap importers and bag manufac- 680 GOVERNMENT REGULATIONS RELATING TO PRICES. 681 turers to establish the following basis of maximum prices for burlap in carload or larger quantities, effective October 4, 1918 : Per yard, 40 inches 8 ounces, 13.6 cents Pacific coast ; 14 cents Atlantic and Gulf ports. Per yard, 40 inches 10 ounces, 16 cents Pacific coast ; 16 cents Atlantic and Gulf ports. Other sizes and weights in equal proportion. Other points in United States based on freight from Pacific coast. Quantities less than carload at prices slightly higher to cover cost of handling. These prices to be effective until about February 1, 1919. This resolution is voluntarily made by the trade because much lower prices are expected to prevail as the result of purchases to be made after January 1, 1919, through assistance of the War Industries Board, and therefore does not affect the validity or integrity of contracts made prior to October 4, 1918. In its aim to secure much lower prices for all purchasers of burlap in the United States, the War Industries Board realizes that this voluntary reduction represents very heavy losses to importers and bag manufacturers. That the losses may be the more equitably distributed, it is therefore the duty of each citizen to stand loyally by any contract for burlap made prior to October 4, 1918. Dealers in second-hand bags and burlap attended a conference with the War Industries Board October 10, and after a full explanation of the situation placed themselves on record as being in accord with the action taken, and pledged their loyal support to the maintenance of maximum prices on the basis of these prices for new burlap and in the usual proportion thereto. Bag manufacturers established maximum prices on bags f . o. b. factory on the following basis : Maximum prices on burlap f. o. b. factory, plus cost of manufacturing, plus 5 per cent margin. At the time of the armistice negotiations were under way for a price on burlap under Government control which show a decline of about 25 per cent from the existing maximum prices. COTTON GOODS. (July 1, 1918-Jan. 1, 1919.) The regulation of the prices of cotton goods was first formally considered in a conference between representatives of the industry and the price-fixing com- mittee on March 26, 1918. No action was then taken.* On June 8, 1918, it was agreed that a subcommittee of the price-fixing com- mittee should meet with a committee representing the industry and formulate a definite plan of action. On June 10 the following announcement was published : The price-fixing committee of the War Industries Board was in conference Saturday with the executive committee of the war service committee of the National Council of American Cotton Manufacturers. In order to establish a basis for a prospective price agreement to introduce stabilization into the trade and avoid any undue hardship upon the manufacturer and distributor of cotton goods, the following tentative plan was outlined to be operative if the pending negotiations for a price agreement are concluded : TENTATIVE PLAN OUTLINED. On all bona fide sales made on or before June 8, 1918, for delivery previous to January 1, 1919, prices to remain as shown in sales. On all sales made after June 8, 1918, for delivery subsequent to September 30, 1918, the prices are to be subject, to revision to accord with the prices agreed upon by the price-fixing committee of the War Industries Board in conference with the war service committee of the National Council of American Cotton Manufacturers. On all sales made for delivery after January 1, 1919, the prices agreed upon by the price-fixing committee in conference with the war-service committee of the National Council of American Cotton Manufacturers are to be the prices, 1 Price-fixing committee, Minute Book I, Mar. 26, 1918. 682 HISTORY OF PRICES DURING THE WAR. regardless of the fact that the sales may have been made previous to June 8, 1918. It is understood that all prices for so-called spring (1919) business will be subject to such revision. The plan contemplates that manufacturers' prices on staples shall be on the same basis of cost and profit to the Government and to their usual civilian out- lets. It is further expected that manufacturers will agree to devote a uniformly large proportion of their productive capacity to making staples. 1 A few days later supplemental provisions were announced : The price-fixing committee recognizes the necessity for prompt stabilization, and expects, that it will soon fix prices, even in the absence of such cost data as would be desirable; and, accordingly, it announces that its action in this instance is not in accordance with the usual procedure and may not be expected to be the basis for future operations with this industry. STIPULATION AGREED TO. As a part of the price program which is planned to be operative within a few days the following stipulation was agreed to, supplementary to the provisions previously agreed to : All sales made after June 21 and before October 1 will be on the basis of the prices to be approved by the price-fixing committee to apply to sales made before October 1, this regardless of the period during which delivery is. to be made. Prices will later be fixed to apply to sales made during the period October 1 to December 31, 1918, or for such other period as may appear desirable at the time. The war-service committee submitted prices on a few staple cloths. The prices are materially lower than the present market prices. The committee was instructed to submit on July 1 a schedule of prices on the complete list of staples, as well as prices on cotton yarns, all on a parity with the prices suggested today. 1 On July 1, 1918, the price-fixing committee in executive session agreed that, pending the receipt of more definite data, it would be expedient to fix a maximum base price of 60 cents per pound for 36-inch sheeting with differentials for other cotton fabrics.* The official statement covering this decision was approved July 8, 1918, and is given below: At a meeting of the price-fixing committee of the War Industries Board with the cotton manufacturers, maximum' net prices at mill were agreed upon and approved by the President for the following basic products : Cents per pound. 36 inches, 48 by 48, 3-yard sheeting 60 36 inches, 56 by 60, 4-yard sheeting 70 38* inches, 64 by 60, 5.35-yard print cloth 83 38i inches, 80 by 80, 4-yard print cloth 4 84 Standard wide and sail duck, 37$ and 5 per cent from list. Standard Army duck, 33 per cent from list. These prices represent a reduction from quoted market prices of about 20 to 30 per cent, and apply to all primary civilian purchases as well as to the Government and those Governments associated with us in the war. A com- mittee is at work on a list comprising a full line of staple cotton fabrics for the purpose of establishing prices upon a parity with those herein quoted. It is expected that this list will be published in a few days. These prices are to remain in effect until October 1 of this year, before which date the industry will meet with the price-fixing committee for the purpose of agreeing upon prices for a further period of 90 days. Future agreements will be premised on figures to be collected and analyzed by the Federal Trade Commission designed both to show basis of profit and equity of parities. Present prices were necessarily based upon inadequate information, but in the emergency nature of the case and Official Bulletin, June 10, 1918. 1 Official Bulletin, June 22, 1918. 8 Price- Fixing Committee, Minute Book V, July 1, 1918. * Later changed to 86 cents. GOVERNMENT REGULATIONS RELATING TO PRICES. 683 the advisability of a gradual adjustment are considered fair and equitable by both the manufacturers and the price-fixing committee. Prices named are to cover primary sales made since June 8 for delivery after October 1 and all pri- mary sales made since June 21 regardless of the delivery dates. The President, in approving these prices, has expressed his appreciation of the spirit with which the cotton manufacturers have met the Government's efforts to stabilize an industry which so directly reaches into the life of every citizen. The President calls upon and expects all manufacturers of ready-to-wear goods as well as all dealers in cotton fabrics to so regulate their profits as to insure to the consumer the full benefit of this large reduction in price. Lists of differentials from the basic prices were issued from time to time. On September 3, 1918, the price-fixing committee announced its future policy with regard to the fixing of differentials : In accordance with the agreement between the representatives of the cotton- manufacturing industry and the price-fixing committee, various differentials based on the fundamental prices then agreed on have been established and pub- lished. It is believed that enough representative fabrics have been so priced to make it entirely possible and feasible for the industry itself to establish prices on fabrics varying slightly from these representative numbers, such variants 10 be prices in complete harmony with the spirit of the agreement of July 1, 1918. Such variants may be reviewed and modified by the price-fixing committee if this course of action seems advisable. The committee conferred with representatives of the industry on September 25, 1918, but owing to the failure of a large number of cotton mills to submit their cost sheets within the period requested, the committee found it necessary to postpone its revision of prices. With the exception of a few changes in maximum prices, to take effect October 1, 1918, the schedules were extended until November 16, 1918. The price-fixing committee had hoped to reduce the maximum prices at the next conference, but when they met with the representatives of the industry on November 8 and 9, the trade protested against a reduction, and no new agree- ment was reached. The committee issued the following statement : In the absence of agreement on new prices the present maximum limits on cotton goods are left unchanged by the price-fixing committee until January 1, 1919, except for certain revisions hereinafter referred to. In making this ar- rangement the price-fixing committee took into consideration the special difficulty which arises at the present time in determining fair prices on cotton goods. The price of raw cotton is fluctuating and uncertain. The differentials for the numerous* separate classes of cotton goods vary greatly and can not be brought into reasonable conformity with each other except after prolonged investiga- tion. In view of these circumstances the committee finds itself unable to fix new maximum prices at the present time. In sanctioning the maintenance of the existing schedule for a limited period the committee wishes it to be understood that the prices enumerated in that schedule are not indorsed as just and reasonable, but only as maximum prices, not to be exceeded under any conditions during the period stated. It is not recommended by any implication that these prices must now be paid by the Government, by the Allies, or by the public. It is agreed on the recommendation of the manufacturers that certain errors in the yarn schedule be corrected and that differentials be investigated, and if any of them are found out of line with basic prices, be revised to more fairly conform to the general- profit return on other cotton goods. All sales made after Novem- ber 16 shall be subject and shall conform to any revisions made under this paragraph. 1 At a meeting of the j>rice-fixing committee on November 14, 1918, the provision in the schedule of August 7, 1918, to the effect that sales in ginghams should be made only for delivery prior to April 1, 1919, was canceled. 1 Official Bulletin, Nov. 16, 1918. 684 HISTORY OF PRICES DURING THE WAR. Sales of this commodity as well as of any other cotton commodity may be made for any delivery period agreed on between buyer and seller at prices under no circumstances in advance of the published schedules. 1 On December 12, 1918, differentials were fixed on yarns and twine covering sales made from November 17, 1918, to January 1, 1919. The fixed prices of cotton goods expired by limitation on January 1, 1919. The schedules of differentials are attached below. The commodities are ar- ranged alphabetically, and the prices under each commodity are arranged chronologically. BANDAGE CLOTH. (Sept. 25, 1918.) Width (inches). Yards per pound. Sley and pick. Cents per yard. 33 8 28 ' 8.77 9.87 10.52 11.28 44 by 40 44 by 40 44 by 40 44 by 40 1 COTTON BLANKETS. STAPLE BLANKETS. (Aug. 16, 1918.) Made of American cotton with standard binding and packing, maximum price of the equivalent of $3.07| per pair net cash at mill, based on si/e of 04 by 70 inches, weighing about 2J pounds per pair, finished in gray, white or tan with usual border. WOOL FINISHED BLANKETS. (Aug. 16, 1918.) Made partly of foreign cotton, with standard binding and packing, maximum price the equivalent of $3.75 per pair, net cash at mill, based on size 00 by 80 inches, weighing about 3J pounds per pair, finished in gray, white, or tan with usual border. All other constructions, designs and colors in both the so-called "Staples" and "Wool finish" variety to be based on the above standard prices. Special binding or packing can be priced extra. JACQUARD BLANKETS. (Aug. 16, 1918.) Made partly of foreign cotton and woven on jacquard looms, with standard binding and packing, max- imum price the equivalent of $1.35 per pound net cash at mill. Special binding or packing can be priced extra. DUGOUT BLANKETS, AMERICAN COTTON, QUARTERMASTER CORPS, NO. 127. We ght. Size (inches). Sley and pick. Price per blanket. 34 pounds 48 by 84 (Oct. 17,1918.) 45 by 55, wool finish $3.50 85 pounds 48 by 84 American cotton 4 55 3| pounds 48 by 84 do 4.00 1 Price-Fixing Committee, Minute Book XI, Nov. 15, 1918. GOVERNMENT REGULATIONS RELATING TO PRICES. 685 HEAVY CHAMBRAYS, CHEVIOTS, COTTON PLAIDS, AND KINDRED COLORED FABRICS, SEPTEMBER 3, 1918. Class 1 : Lakewood, 25 inches, 6.10 plaids, at 15^ cents, terms 2/10-60 extra, delivery at mill no freight (which figures net to mill 15.03 cents). Class 2: Riverside, 27 inches, 4.60 plaids, at 20 cents, terms 2/10-60 extra, delivery at mill no freight (which figures net to mill 19.88| cents). Class 3 : Pilot junior shirting, 28 inches, 4.30 Chambrays, at 22 cents, terms 2/10-60 rxtra, delivery at mill no freight (which figures net to mill 21.34 cents). Class 4 : Massachusetts, 26 inches, 3 suitings, at 29 cents, terms 2/10-60, delivery at mill no freight (which figures net to mill 28.13 cents). Class 5 : Otis indigo checks, 30 inches, 3.50 checks, at 28 cents, terms 2/10 extra, de- livery at mill no freight (which figures net to mill 27.16 cents). Class 6 : Massachusetts K. F. C., 32 inches, 3.10 shirting, at 31 cents, terms 2/10-60 extra, delivery at mill no freight (which figures net to mill 30.07 cents). COUTIL. Sept. 25, 1918. Division. Width (inches). Weight. Sley and pick. Cents per yard. Discount. Net cash f. o. b. 1918. No 1 38 2 73 108 by 56 31J Less 3 per cent $0. 30565 No 2 38 3 05 100 by 56 29 do .2813 No 3 38 2.25 96 by 80 37J .... do .3601 No 4 38 2 15 96 by 68 36| do .3565 No 5 38 2 15 104 by 80 38? do .3771 No G 38 1 85 124 by 84 45 .... do .4365 No 7 38 1 70 104 by 80 46J do .4486 DENIMS. (Sept. 3, 1918.) Division No. 1 : Standard-Otis, No. 3, 2.20 white back denim, indigo. Price suggested, $0.3750 per yard; terms 2/10-60 days dating, delivery at mill, no freight allowance (which figures net to mill 36.38 cents per yard). Comprising this division are all white br>ck indigo-blue denims. Differentials suggested as follows : 9-o race, 1 cent a pound less than 2.20 ; 8-ounce, 1 cent a pound less than 2.20; 2.40/2.50, inclusive, 1| cents a pound more than 2.20; 2.55/2.75, inclusive, 3 cents a pound more than 2.20 ; 3 and lighter, 4 cents a pound more than 2.20. Division No. 2 : Standard-Everett, 2.45 denim, indigo. Price suggested, 33| cents per vard ; terms 2/10-60 days dating, delivery at mill, no freight allowance (which figures net to mill 32.617 cents per yard). Comprising this division are all double and twist construction denims. Division No. 3 : Standard-Proximity, No. 31, 2.40 double and twist indigo denim. Price suggested, 33.50 cents per yard ; terms 2/10-60 days dating, delivery at mill, no freight allowance (which figures net to the mill 32.50 cents per yard). Differentials suggested as follows : 2.60/2.65, inclusive, 2 cents a pound more than 2.40 ; 2.70/2.80, inclusive, 3 cents a pound more than 2.40 ; 3 and lighter, 4 cents a pound more Brown denims : Recommendation is that 2 cents per pound more be paid for brown denims than indigo denims in all corresponding weights. Aniline denims : Recommendation is that price be 2 cents per pound less than indigo denims in all corresponding weights. GRAY RED STAR DIAPER CLOTH. (Sept. 25, 1918.) Width Yards per Cents per Cents per (inches). pound. pound. yard. 192 6.75 77 11.41 20i 6.00 76 12.67 24 5.50 75 13.64 26 5.15 75 14.56 It 4.55 4.15 74 73 16.26 17.59 686 HISTORY OF PRICES DURING THE WAR, DRILLS. Width. Yards per pound. Sley and pick. Price per pound on basis estab- lished. Price per yard suggested by experts. Inches. 30 30 30 30 37 37 36 37 37 30 30 2.50 2.50 2.50 3.25 2.65 2.35 2.28 3.95 3.75 3.00 2.85 July 25. 1918. 72 by 60 70 by 52 68 by 48 68 by 40 68 by 40 68 by 40 66 by 56 68 by 40 68 by 40 68 by 40 71 by 46 Cents. 60.60 58.73 57.48 60.62 61.00 58.86 60.41 69.29 67.67 59.22 59.85 Cents. 24* 23* 23 18| 23 25 ft 18 19f 21 3-LEAF WIDE DRILLS. 40 52 58 59 59 2.40 1.90 1.60 1.85 1.94 68 by 40 July 25, 1918. 68 by 40 68 by 40 58 by 40 68 by 40 60.94 61.79 60.41 63.56 64.59 25f 32.V 37| DRILLS. 40 37 37 t? 3.96 3.25 3.50 2.40 2.00 Aug. 7, 1918. 68 by 40 Aug. 14, 1918. 68 by 40 68 by 40 Oct. 25, 1918. 86 by 52 68 by 56 18 31 3 GRAY DRILLS. 30 30 30 30 30 30 33 34i 36 37 37 49 52 52 it* 56 60 2.45 2.50 3.00 4.00 4.25 5.25 2.50 2.38 2.00 2.75 3.00 .68 .75 .75 .70 .70 .70 .53 Nov. 8, 1918. 76 by 60 68 by 56 68 by 44 68 by 40 84 by 48 60 by 50 72 by 48 68 by 56 68 by 56 68 by 40 68 by 40 72 by 48 64 by 38 68 by 42 68 by 42 70 by 44 70 by 44 70 by 44 24f 233 20i 16 16f 13 24 25 281 22 r 2L 1J A i I 40 GOVERNMENT REGULATIONS RELATING TO PRICES. 687 DUCKS. (July 1, 1918.) Standard wide and sail duck, 37J per cent and 5 per cent from list. Standard Army duck, 33 per cent from list. ENAMELING DUCKS. Width (inches). Yards per pound. Sley pick. Cents per pound. 51i 1.38 July 25, 1918. 84 by 30 61 38 46i 56i 2.00 1.44 84 by 30 84 by 30 84 by 30 62 61 62 61 84 by 30 63 72 84 by 30 64 PLAT SINGLE FILLING DUCKS. 29 29 8.00 8.00 July 25, 1918. 76 by 28 0) 54 55 TWISTED FILLING DUCKS. 29 29 8.00 8.00 July 25, 1918. 76 by 28 0) 58 59 SHELTER TENT DUCK. Aug. 7, 1918. 36 35 1.95 38J 62 by 62 54 by 56 Aug. 22, 1918. 239 236* 35 35 1.94 1.94 54 by 56 62 by 62 75 78.9 1 84 or over by 28. 2 Per yard. 3 Ounces. (The price as published under Aug. 7, 1918, is in error ; quotation of Aug. 22, 1918, is correct.) I REGULAR HOSE AND BELTING DUCK. (Aug. 7, 1918.) Cents per pound. Ranging from 12 ounces to 36 ounces 58 10-ounce hose duck 59 (Sept. 26, 1918.) Hose and belting duck 621 10-ounce hose duck 64f Wide and sail duck, 37i per cent discount from standard list. Standard Army duck, 31 per cent discount from standard list. Single filling duck, classes A, B, and C. Double filling duck, classes A, B, and C. These classifications are described as follows : Class A : To be duck, made of white cotton, without waste or strips, and counting not under 80 by 28. Also qualities equal to Magnolia and Lindale to be in this class. Class B : To be duck, *>f all clean cotton, and counting not under 72 by 28. This class is recognized as the standard grade of single filling duck. Class C : To be duck, made to count not under 72 by 28, and containing not over 25 per- cent of waste or strips. 688 HISTORY OF PRICES DURING THE WAR. FLANNELS. (Sept. 25, 1918.) MITTEN FLANNELS. Weight (ounces). Cents net at mill. Cents per yard. 3 24.92 25? 6 27.34 28J 7 31.22 32} 8 35.75 36? 10 44.69 46J 9 40.17 41| 11 49.31 50| 12 53.76 13 58.13 59| 14 62.72 64| CANTON FLANNELS. Width Yards per Cents net at Cents per (inches). pound. mill. yard. 30 2.75 26.91 27| 28 2.95 25.25 26 28 4.00 20.00 201 27 5.00 16.75 m Lighter weights up to 7 in general proportion. FLANNELETTES. (Sept. 3, 1918.) Division No. 1 : Cents per yard. 1921 light stripes, checks, and plaids _ 25. 81 1921 dark fancies and grays, North State light stripes, checks, and plaids- _ _ 25. 81 North State dark fancies and grays _ 27 81 Swiss light stripes, checks, and plaids _ 25.81 Swiss dark fancies and grays 27 81 Division No. 2 : Smyrna light stripes, checks, and plaids 23. 08 Smyrna dark fancies and grays 23 08 Saluda light stripes, checks, and plaids 23.08 Saluda dark fancies and grays ; _ 25 08 Division No. 3 : Rutherford flannel 32^ 86 Special Government flannel 32T 86 Division No. 4 : Pine 23. 00 Portage 23. 00 Division No. 5 : l Daisy bleached 27. 75 Daisy colors _ 28. 75 Malta bleached 27. 75 Malta colors _ 28. 75 Division No. 6 : * Cashmere bleached 24. 11 Cashmere colors 25. 11 1921 bleached 24. 11 1921 colors 25.11 Division No. 7 : 1 Persian bleached 21. 06 Persian colors 22. 06 Defender bleached 21. 06 Defender colors 22.06 Division No. 8 : 2 1,501 bleached 33. 43 900 bleached r 33. 43 (Maximum price, Aug. 7, 1918.) Cents per yard. Division No. 1 : Toile du Nord, Amoskeag A, F, C, Bates seersucker, Glonkirk zephyrs, red seal sephyrs 23. 28 Division No. 3 : Amoskeag utility, York dress gingham, red rose Lancaster, apple- web 21. 34 Division No. 4 : Amoskeag 19000, Berwick chambray, Kilburnie gingham, Yomac gingham, white pine chevoit, Essex chambray 23. 28 Division No. 7: Amoskeag staples, Lancaster staples 18.92 (Above prices are all net cash at mill.) 1 These prices are based on bleached and light colors only. Differential to be given for darks and special shades. 2 These prices are based on bleached only. Differential to be given for darks and special shades. Prices are all net to mill, with no freight. GOVERNMENT REGULATIONS RELATING TO PRICES. 689 3-LEAF JEANS. (Aug. 7, 1918.) Width (inches). Yards per pound. Sley and pick. Cents per yard. 39 39 39 2.75 3.00 3.10 96 by 64 96 by 64 96 by 64 27* 26 25i GRAY 3-LEAF JEANS. (Aug. 16, 1918.) 39 39 39 3.10 3.00 2.75 96 by 64 96 by 64 96 by 64 % 27* When bleached, price of these goods to be increased 1 per cent. OSNABURGS. PART WASTE OSNABURGS. Weight (inches). Weight per yard (ounces). Sley and pick. Cents per yard. (Aug. 14, 1918.) 30 7.00 39 by 30 22i 30 29i 32 8.00 3.33 1.88 39 by 34 34 by 34 32 by 28 1 261 34 1.77 32 by 28 28} 36 3.00 32 by 28 Sr 36 3.25 32 by 28 36 3.60 32 by 28 15 1 * 36 40 40 40 3.90 1.60 2.00 2.28 32 by 28 32 by 28 32 by 28 32 by 28 14} 1 22| 40 3.25 32 by 28 17 40 3.50 32 by 28 16 40 3.00 36 by 36 181 CLEAN OSNABURGS. (Nov. 8, 1918.) 36 36 3.00 3.25 32 by 28 32 by 28 I? 36 40 3.80 2.00 32 by 28 38 by 36 15 27 (Nov. 9, 1918.) 40 2.28 32 by 28 23i CARDED CLOTHS. PLAIN CAUDED CLOTHS. (Aug. 16, 1918.) 39 5.00 80 by 88 22 39 6.00 72 by 68 183 39 6.00 80 by 76 19 a 39 5.25 92 by 92 24 39 39 5.00 4.95 96 by 100 96 by 104 25f 26 40 40 9.00 7.70 72 by 60 80 by 72 15* 18} (Nov. 8, 1918.) 29 36 36 13.33 9.00 ' 9.55 56 by 52 68 by 64 72 by 68 ll 36 36 5.82 6.25 60 by 60 80 by 80 14* 19| 39 8.70 68 by 56 40 8.60 72 by 68 IfrjV 40 6.25 88 by 80 20$ 40 6.00 88 by 80 20^ 40 9.00 72 by 60 15* 125547 20 44 690 HISTORY OF PRICES DURING THE WAR. COMBED YARN FABRICS. Weight (inches). Weight per yard (ounces). Sley and pick. Cents per yard. (Sept. 3, 1918.) 40 10.50 84 by 80 28 30 12.00 76 by 72 28 13.25 68 by 64 13i 34 6.40 64 by 72 21 29 7.50 64 by 72 18 40 9.50 72 by 68 20i 40 9.00 76 by 72 21g 40 8.50 88 by 80 25 40 7.00 96 by 100 29 30 34 11.35 7.00 88 by 80 72 by 100 184 24 36 21.00 28 by 24 7 PLAIN COMBED CLOTH. (Nov. 8, 1918.) 36 10.25 73 by 56 16J 36 10.00 72 by 60 111 38 5.90 96 by 125 28| 884 7.75 96 by 92 27 39 11.00 68 by 56 17? 40 40 6.50 7.25 108 by 112 104 by 100 32, 30; 40 8.75 100 by 96 32j 40 6.00 96 by 100 28 40 9.35 96 by 92 33i 40 9.00 80 by 80 24^ 40 7.25 96 by 92 27^ SPECIAL PONGEE FABRIC. (Made from li-inch cotton.) 38 4.85 (Sept.3,1918.) 60 by 72 18* COMBED PONGEE. (Nov. 8, 1918.) 34 5.20 64 by 62 22f 34 38 5.80 5.75 64 by 60 64 by 72 22& 20* PRINT CLOTHS. (July 1, 1918.) 38$ 5.35 64 by 60 183 38$ 4.00 80 by 80 84 (Aug. 7, 1918.) 39 4.00 80 by 80 2 21$ (Aug. 9, 1918.) 39 4.75 68 by 72 18 39 - 4.25 72 by 76 191 38$ 8.20 (Aug. 14, 1918.) 44 by 40 38$ 6.25 60 by 48 13J 37$ 39 4.70 4.50 64 by 68 64 by 88 20 39 4.20 64 by 104 22 39 40 6.60 7.25 56 by 44 52 by 40 1 44 6.40 48 by 48 13 44 7.25 44 by 40 11 25 10.55 56 by 44 1 27 27 8.70 7.60 56 by 56 64 by 60 9 11 f 31$ 7.50 56 by 52 11 31$ 8.70 48 by 48 9, 32 6.20 64 by 60 13 36 11.30 32 by 28 7 36 7.75 48 by 44 10 37$ 4.70 64 by 88 19 J 36 21.00 20 by 16 4JL 36 13.00 32 by 28 6ii 36 17.00 24 by 20 5^ 38$ 5.35 64 by 60 15$ Per pound. 2 Correction. GOVERNMENT REGULATIONS RELATING TO PRICES. PRINT CLOTHS Continued. 691 Width (inches), Sley and pick. Price per pound (cents). Cents per yard. 36 36 36 36 36 36 36 20 by 12 20 by 14 26 by 22 28 by 24 32 by 24 32 by 28 36 by 32 23.25 (34.6 22.00 (34.8 15.80 (35.2 15.00 (36.2 13.50 (35.1 12.00 (33.4 11 50 (36 3 average yarn) average yarn) . average yarn) . average yarn) average yarn) 35 51 sff /A average yarn) avfirapft varn") 7A 7J 36 36 by 32 11 20 (35 4 average yarn) 81 36 36 36 36 by 32 40 by 32 40 by 36 10.50 (33.2 average yarn) 10.20 (34.1 average yarn) . . 9 65 (34 1 AVAratrfi vaml g| 8 oTf 36 36 44 by 36 40 by 40 9.20 (34. l 9.20 34.15 iverage yarn) 93 iveraee varn) . . . gV 36 44 by 40 8.50 33.2 average varn 'I 10 36 36 44 by 44 48 by 40 8.10 33.1 8.10 33.1 iverage yarn) . . IQrs iverage yarn) 36 36 48 by 44 44 by 44 8 by 8 16 by 8 7.75 (33.1 i 8.40 (34.3 40.00 (30.1 30.00 (33.9 iverage yarn)., iverage yarn) 11 average yarn) a verapp, varn 1 _ _ 2 JL jY i Widths (inches). Sley or pick. Weight pei- yard. Price per pound (cents). Cents per yard. (Aug. 14, 1918.) 37 40 by 36 9.38 34.1 9 38 48 by 48 7.15 33.7 Hi 38 56 by 44 6.75 33.1 12 38^ 44 by 36 8.50 33.8 9. I 38i 44 by 44 7.65 33,4 10i 38 48 by 48 7.15 34.1 11 38^ 52 by 40 7.30 33.4 11 .J 60 by 52 600 33.4 13 64 by 55 5.50 32.8 15 64 by 64 5.15 32.8 16, i 39 40 bv 28 9.80 33.5 I i 39 40 by 32 9.20 33.3 9 39 72 by 80 4.50 34.4 19 r 40 32 by 28 10.80 33.5 7 Ht 40 40 by 32 9.10 33.8 9j" 40 40 48 by 48 56bv44 7.00 6.60 34.7 34.1 & 40 56 by 56 6.00 34.7 14 k 40 64 by 64 5.10 33.7 16- ft 42 32 by 28 10.50 34.2 7 1 42 44 by 40 7.50 34.1 11 i 42 33 by 44 7.00 33.4 11 4 43 40 by 32 8.25 33.0 9 43 56 by 48 5.85 33.8 14 \ 43 56 by 52 5.60 33.6 i 44 36 by 32 8.50 32.8 9- ft 44 64 by 60 4.65 32.7 17 44 64 by 64 4.50 32.7 18- 25 25 40 by 32 40 by 36 14.75 14.00 34.3 34.3 5- 6 1 25 40 by 36 13.25 32.5 6 1 25 44 by 44 10.26 29.1 8 rV 25 58 by 45 11.00 34.1 7 4 27 44 by 44 9.50 29.1 8 I 27 56 by 52 9.00 33.9 9 fr 27 56 by 44 9.75 34.0 8 >: 27 64 by 56 7.85 32.8 10 ' 28 40 by 28 13.50 33.1 6- 28 64 by 56 7.50 32.5 11 k 28 64 by 60 7.30 32.7 11 I 29 48 by 48 9.70 34.8 9 56 by 40 8.45 33.0 9 I 32 32 by 28 13.50 33.5 6- V 32 48 bv 48 8.80 34.9 H 32 48 by 48 8.50 33.7 1 to 34 44 by 40 9.40 34.6 ? 34 48 by 48 8.00 33.7 1 >i 34 64 by 60 6.00 32.7 1 itt 32 64 by 60 6.50 33.3 1 *T 28 64 by 64 7.00 32.4 1 z| (Oct. 17, 1918.) 44 36 by 32 8.50 82.34 9 & 692 HISTORY OF PRICES DURING THE WAR. SATEENS. Width (inches). Weight per yard. Sley and pick. Cents per yard f. o. b. mill. 53-54 1.30 (Aug. 30, 1918.) 104 by 64 53} (Oct. 25, 1918.) 34 3.00 108 by 56 24} 31 2.45 112 by 64 284 31 33} 3.00 2.15 108 by 60 118 by 76 24| 37% 33} 1.89 2.15 124 by 80 118 by 72 37f 32* 34 3.00 108 by 56 24} 34 3.00 108 by 56 24} FILLING SATEENS. GN SATEEN. WARP SATEEN. (Sept. 30. 1918.) 26} 6.85 64 by 72 12ff 28 5.85 64 by 88 15* 31 4.00 72 by 120 31} 35 5.50 5.50 64 by 88 64 by 72 is! 35 5.25 64 by 80 17 ' 35 4.65 64 by 104 2QA 35 3.75 64 by 112 23| 36 5.10 64 by 80 m 36 4.85 64 by 88 im 36 4.50 64 by 96 20^ 373 5.25 64 by 72 17 87 5.00 64 by 80 l&rV 37i 4.25 64 by 96 21r5 37i 4.00 64 by 104 37^ 4.15 64 by 112 37< 3.90 64 bv 112 39 39 4.75 4.00 64 by 80 64 by 104 j.->4 22* 39 4.00 64 by 112 39 3.75 64 by 112 24J 39 3.80 64 by 124 24J 37 2.25 (Oct. 20, 1918.) 120 by 64 91] 40 3.00 (Sept. 25, 1918.) - 112 by 64 2644 42 3.50 112 by 64 24ii 42} 42} 4.00 3.90 96 by 56 96bv60 2% 42} 3.75 96 by 64 2244 37} 3.65 112 by 64 224} 29 37 4.20 3.50 112 by 64 112 by 64 g? 37} 30} 3.65 4.00 112 by 64 112 by 64 20? 29 30} 4.20 3.35 112 by 64 112 by 64 22H 30} 3.30 118 by 64 23f 30} 3.00 118 by 64 25-A 30} 3.35 2.65 118 by 64 118 by 64 23A 27J 27} 3.70 112 by 64 20H 27} 2.50 96 by 56 * 30 2.85 88 by 38 21H GOVERNMENT REGULATIONS RELATING TO PRICES. 693 SATEENS -Continued. CARDED WARP SATEENS. Width (inches.) Weight per yard. Sley and pick. Cents yard f . mi per o. b. 1. (Nov. 8, 1918.) % 43 3.00 ' 2.75 3.45 114 by 84 96 by 64 140 by 96 27 4 27 34 53 53i 1.14 1.22 108 by 64 108 by 64 59j 56 54 .30 93 by 60 52 54 54 .05 .05 96 by 64 85 by 64 62 63 55 .08 93 by 60 60J 55 .18 108 by 64 58J i CARDED FILLING SATEENS. (Nov. 8, 1918.) 38 4.40 80 by 124 | 28 39 39 3.75 3.20 96 by 132 72 by 120 |i 39 3.50 72 by 120 23 39 3.75 84 by 124 30 39 3.50 96 by 160 3of 39 3.35 96 by 160 36^ r 43 3.35 72 by 120 29 43 3.35 84 by 124 33^ 43 3.35 96 by 132 37 J 43 3.85 64 by 104 24 43 3.65 64 by 112 25 COMBER FILLING SATEENS. (Nov. 8, 1918.) 39 3.35 96 by 100 444 39 4.25 84 by 136 33| 39 3.35 96 by 136 411 I 694 HISTORY OF PRICES DURING THE WAR. SHEETING. Width (inches). Weight per yard. Sley and pick. Cents per yard f . o. b. mill. (July 1, 1918.) 36 3.00 48 by 48 160 36 4.00 56 by 60 70 (July 25, 1918.) 36 2.85 48 by 48 2 20J 36 3.00 48 by 48 20 36 3.25 48 by 48 181 36 3.50 40 by 40 17 40 2.85 48 by 48 21f 38,36 4.00 48 by 52 16f 36 4.00 56 by 60 36 4.50 48 by 52 1 5i 36 5.00 48 by 48 14J 36 5.50 48 by 44 13 l 36 6.00 40 by 40 HI 36 6.15 44 by 40 12 31 5.00 48 by 48 131 36 4.70 48 by 52 40 5.00 44 by 44 14f 40 4.25 44 by 40 15 40 3.75 48 by 44 17$ (Aug. 7, 1918.) 36 3.60 64 by 68 20 36 36 3.50 3.70 64 by 68 64 by 68 st 40 3.15 64 by 68 22f 31 5.00 (Aug. 30, 1918.) 48 by 48 (Sept. 3, 1918.) 40 40 2.50 2.70 48 by 48 48 by 48 1! 40 2.35 48 by 48 25 32 6.25 40 by 40 111 36 5.00 64 by 64 16 31 4.50 44 by 44 34 6.00 (Sept. 5, 1918.) 40 by 40 m (Sept. 25, 1918.) 40 2.00 40 by 40 271 GRAY SHEETINGS. (Nov. 8, 1918.) 26 4.35 48 by 48 14f 36 2.95 52 by 56 21 36 3.15 69 by 72 22j 36 3.90 40 by 38 15^ 36 4.00 48 by 48 16 40 2.70 44 by 44 21 40 3.60 56 by 60 19 48 2.25 48 by 48 27, 54 2.00 44 by 44 30 54 2.00 48 by 48 31 64 2.25 60 by 60 321 1 Cents per pound 2 Net price. 3 Net f. o. b. mill. < F. o. b. mill. WIDB SHEETINGS. The price is 80 cents per pound net cash f. o. b. mill. This price divided by the weight of the 11/4 brown will give the yardage price of the 11/4 brown and 10/4 bleached ; divide 1 by the weight of 10/4 brown will give the yardage price of 10/4 brown and 9/4 bleached, and so on through the various widths. CARDED OIL CLOTH SHEETING. Width, (inches.) Weight per yard. Sley and pick. Cents per yard f . o. b. mill. (Nov. 4, 1918.) 51; .75 40 by 40 l"f 51. 51 .50 .25 40 by 40 40 by 40 . 18J 19 51; .75 44 by 40 18 51: .50 44 by 40 18| 5li .25 44 bv 40 191 58 .25 44 bv 40 20J 60 4.18 40 by 40 201 60 3.65 44 by 44 22| GOVERNMENT REGULATIONS RELATING TO PRICES. 695 TICKING. (Sept. 25, 1918.) Class 1 is Intended to coyer the various blue and white and fancy twill tickings in the heavier weights, but not to include the so-called " Straw ticks " : 32-inch, 8 ounces, 80 by 72, class 1, Cordis A, C. E, 38.558 cents net to mill. 32-inch, 8 ounces, 80 by 70, class 1, A, C, A Ainoskeag. 32-inch, 2 ounces, 76 by 68, class 1, A, O, A Eagle and Phoenix. 32-inch, 8 ounces, 88 by 58, class 1, Bowling Brook. Class 2 is intended to cover the blue and white and fancy twill tickings in the lighter weights, known as " Straw ticks " : 30-inch, 3.75 ounces, 73 by 40, class 2, Thqrndike C, 20.13 cents. Class 3 is intended to cover the sateen tickings in all weights : 33-inch, 8 ounces, 100 by 72, class 3, Conestogo, R. & D. and B. & D., 40.4975 cents. Class 4 is intended to cover the hickory stripes, a fabric closely affiliated with ticking, which it seems best to include : 28Hnch, 2.85 ounces, 72 by 42, class 4, Thorndike E, 8 by 4, hickory stripes, 27.16 cents. PILLOW TUBING. (Sept. 25, 1918.) The yardage price of the bleached cloth is to be found by dividing 85 cents per pound by the yards per pound of the gray cloth from which it is made. TWILLS. 4-LEAF TWILLS. Width (inches). Yards per pound. Sley or pick. Cents per pound. Cents i yard )er 30 30 30 30 30 30 30 30 30 59 37 2.00 2.15 2.31 2.40 2.50 2.65 2.85 3-00 3.25 1.76 1.75 (July 25, 1918.) 88 by 48 88 by 48 88 by 48 88 by 48 88 by 38 88 by 38 88 by 38 88 by 38 88 by 38 76 by 44 (Sept. 25, 1918.) 86 by 44 56.84 57.91 50.04 59.68 58.71 59.90 61.21 62.20 63.81 62.94 28 27 25 24 23 22 21 20 19 35 32 r 1 & 37 2-00 86 by 44 29 37 2-10 86 by 44 28 1 37 2-35 76 by 42 25 37 2.35 84 by 42 26 1 294 2-65 (Oct. 25,1918.) 108 by 52 25 ' 30 2.25 108 by 52 28 T 37 29 1.85 2.00 108 by 52 (Nov. 8, 1918.) 104 by 54 34 31 , 29J 2.15 104 by 48 29 i 3 00 84 by 37 20 29J 2-50 104 by 48 .. % 294 2 50 88 by 38 23 30 2-00 98 by 42 29 30 2 00 88 by 42 28 30 2.20 98 by 42 27 30 2-31 108 by 48 28 30 2.70 80 by 37 21 5 30 3.00 98 by 42 22 36 1.90 88 by 48 31 37 1.50 76 by 42 37 37 1.75 76 by 42 32 37 1.83 104 by 42 34 37 2 00 76 by 42 29 39 1.90 76 by 40 31 48 1.54 76 by 42 37^ 50 1.48 76 by 42 39j 58 .96 76 by 42 59 58 1.30 76 by 40 45) 58 1.35 68 by 56 455 59 1.40 48 by 64 43i 59 2.00 88 by 56 37 29J 2.50 (Nov. 9, 1918.) 88 by 38 23J 30 3.00 98 by 42 223 59 1.40 48 by 64 43i 696 HISTORY OF PRICES DURING THE WAR. TWILLS Continued. 3-LEAF TWILLS. Width (Inches). Yards per pound. Sley to pick. Cents per pound. Cents per yards. 37 36 38 i 39 39 39 39 39 43 43 43 43 43 30i 31 31 31 39 39 39 4.50 4.20 3.10 5.10 4.80 4.50 4.25 4.00 4.30 4.50 4.00 6.00 4.75 3.85 3.85 4.00 4.20 3.25 5.10 5.10 (Sept. 5, 1918.) 96 by 60 60 by 80 96 by 64 64 by 64 64 by 72 68 by 76 68 by 76 68 by 76 68 by 60 68 by 76 68 by 76 64 by 48 68 by 52 (Nov. 8, 1918.) 68 by 76 68 by 80 64 by 72 68 by 80 68 by 76 64 by 104 Nov. 9, 1916.) 64 by 104 19J- 1 i*A 19T m 20| 19| 20 21M 14^ 19J 19j is; ti 23 23< 23* ALBERT TWILLS. 35 5.50 (Sept. 9, 1918.) 64 by 72 35 5.10 64 by 80 173 35 4 40 64 by 80 1QA- 35 4.85 64 by 88 jgi 8 35 4.00 (Nov. 8, 1918.) 64 by 80 19J 35 5.40 64 by 72 16 35 2.72 72 by 120 29J 35 38i 3.00 4.00 72 by 120 64 by 80 27J 20* 40 2.38 72 by 120 33J 43 2.22 70 by 120 35| Width (inches). Yards per pound. Sley or pick. Per pound. Cents per yard. 30 2.10 (Julv 25, 1918.) 88 by 56 60.90 29 33i 2.60 (Oct. 25, 1918.) 68 by 86 26 VENETIANS. (Sept. 3, 1918.) SINGLE YAKN. 41 cents on N-120, 35 inches, 156 by 64, 31.8: 30/1 all combed rov. twist warp. 33/1 all combed filling. 43i cents on N-261. 35 inches, 156 by 64, 2.85: 30/1 all combed rov. twist warp. 23/1 all combed filling. 44 cents on P-322, 38 inches, 156 by 64, 2.90: 30/1 all combed rov. twist warp. 33/1 all combed filling. 46f cents on P-324, 38 inches, 156 by 64, 2.63: 30/1 all combed rov. twist warp. 23/1 all combed filling. GOVERNMENT REGULATIONS RELATING TO PRICES. 697 VENETIANS Continued. SINGLE YARN COMBED VENETIANS. (Nov. 4, 1918.) Width (inches). Yards per pound. Sley or pick. Cents per yard. 35 35 36 36 37 38 38 38 3.10 3.00 3.00 2.77 2.80 2.66 ~ 2.75 2.85 156 by 64 156 by 64 156 by 64 156 by 64 148 by 64 144 by 64 156 by 64 156 by 64 41i 42| 44f 44| 46J 46* 44| TWO-PLY WARP COMBED VENETIANS. (Nov. 4, 1918.) 35 38 2.85 2.63 156 by 64 156 by 64 58 60 TWINE. WRAPPING TWINB. (Aug. 14, 1918.) Prices for No. 1 quality wrapping twine of 8's or coarser yarn : Cents per pound. Any ply wound on cones or tubes, packed in barrels or bales or in cases, in bulk_ 61 Any ply wound in 8-ounce or heavier balls, packed in barrels or cases, in bulk__ 61& Any ply wound in small balls weighing 5 or 6 to the pound, packed in barrels or cases, in bulk __ i ___________________________________________________ 62 Any ply wound in small balls weighing 5 or 6 to the pound, packed in 5-pound or 10-pound cotton-cloth sacks and 100 pounds in a bale _____________ _ ____ 64 Terms. Prices are f. o. b. cars shipping point, net cash from date of shipment and include cost of selling. (Dec. 12, 1918.) [Covering sales made Nov. 17, 1918, to Jan. 1, 1919.] No changes made, schedule same as above. SEINE AND SAIL TWINB. (Sept. 3, 1918.) For United States standard seine twine in standard skeins, packed in bulk or in 5-pound or 10-pound pads, 100-pound bales, basis No. 15 to 42 medium laid, 62 cents per pound. Differentials on other sizes and lays, as at present established. For winding in 8-ounce or heavier balls, in bulk, 1 cent above price of skeins. For winding on 1-pound or heavier tubes, in bulk, 1 cent above price of skeins. For winding in 4-ounce balls, in bulk, 2 cents above price of skeins. For winding in 2 to 3 ounce balls, in bulk, 4 cents above price of skeins. For packing tubes or balls in 5-pound or 10-pound muslin sacks, 2 cents above price for bulk packing. Exact-weight skeins, 4 ounces or heavier, 2 cents above price regular skeins. For export packing, 1 cent above price regular packing. For broken packages of lots of loss than 100 pounds of a size, 2 cents above price standard packing. Sail twine, made on Brownell or Haskell-Dawes twisters, 8-ply and up, on cones or tubes or in 8-ounce balls, in bulk, 63 cents per pound. Four-ounce balls, in bulk, 1 cent per pound aoove 8-ounee balls. Balls in 5-pound or 10-pound muslin sacks, 2 cents per pound above bulk packing. 100-pound bales : Export packing, 1 cent per pound extra. Broken packages, 2 cents per pound, extra. Hose cord, made of 12's yarn, Brownell or Haskell-Dawes twisters, 64 cents per pound. Terms. No allowance for cones, or tubes, net cash, f. o. b. mill. Seller to pay cost of selling. 698 HISTORY OF PRICES DURING THE WAR. (Dec. 12, 1918.) [Covering sales made Nov. 17, 1918, to Jan. 1, 1919.] SEINE TWINE. For United States standard seine twine in standard skeins, packed in bulk or in 5- pound or 10-pound pads, 100-pound bales, basis No. 15 to 42 medium laid, basis price to be 7 cents per pound, over fixed price 10s single-carded yarn. Differentials on other sizes and lays as at present established by leading manufac- turers. Extras. For winding in 8-ounce or heavier balls, in bulk 1 cent above price of skeins. For winding in 1-pound or heavier tubes, in bulk 1 cent above price of skeins. For winding in 4-ounce balls, in bulk 2 cents above price of skeins. For winding in 2-ounce to 3-ounce balls, in bulk 4 cents above price of skeins. For packing tubes or balls in 5 pounds or 10 pounds 2 cents above price for bulk pack- ing muslin sacks. Exact weight skeins, 4 ounces or heavier 2 cents above price of regular skeins. For export packing 1 cent above price of regular packing. For broken packages of lots of less than 100 pounds of a size 2 cents above price of standard packing. SAIL TWINE. Sail twine, made on Brownell or Haskell - Dawes twisters, 8 ply and up, on cones or tubes or in 8-ounce balls, in bulk basis price to be 7 cents per pound over fixed price 10s single-carded yarn. Four-ounce balls, in bulk 1 cent per pound above 8-ounce balls. Balls in 5-pound and 10-pound muslin sacks, 100-pound bales 2 cents per pound above bulk packing. Export packing 1 cent per pound extra. Broken packages 2 cents per pound extra. Hose cord, made of 12s yarn, Brownell or Haskell-Dawes twisters 64 cents per pound. Terms. All sales to be made on net-weight basis, net cash, f. o. b. mill. Seller to pay YARN PRICES. (Aug. 14, 1918.) PRICES FOR CARDED WARP TWIST YARNS, MADE FROM NOT BETTER THAN MIDDLING UPLAND COTTON. Single yarn. Count: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 below) Price: 57* 58 59 59* 60 61 * 63 64* 66* 67* 68* 70* 72* 74* 77* 80* 82 83* For above yarns made of strict to good middling cotton an advance in price of 2* cents per pound is made, making schedule for such yarns as follows: Count: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 below) Price: 60 ' 60* 61* 62 62* 64 65* 67 69 70 71 73 75 77 80 83 84* 86 For above yarns made of staple cotton of strict to good middling grade, not less than 1^ inches and not over 1 J inches, an advance in price of 4 cents per pound is made over above schedule, making prices for such yarns as follows: Count: 36 38 40 42 44 46 48 50 Price: 90 92 94 96 98 1.00 1.02 1.04 The basic price is on No. 8 and below: Over Sand not over 10 rise of $ cent per number. Over 10 and not over 14 rise of J cent per number. Over 14 and not over 20 rise of J cent per number. Over 20 and not over 30 rise of 1 cent per number. Over 30 and not over 36 rise of 1* cents per number. On yarns of staple cotton in counts 36 to 50 the rise is 1 cent per number. Ply yarns. On yarns made of not better than middling upland cotton for 2 ply to 7 ply 1 cent per pound has been added to the single yarn prices for twisting counts 8s and below and not over 10; 1* cents per pound for counts over 10 and not over 14; 2 cents per pound for counts over 14 and not over 20; 2* cents per pound for counts over 20 and not over 36, making prices as follows: Count: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 below) Price: 58* 59 60* 61 61* 63* 65 66* 69 70 71 73 75 77 80 83 84* 86 On yarns made of strict to good middling cotton for 2 ply to 7 ply, 1 cent per pound has been added to the single yarn price for counts 8s and below and not over 10; 1* cents per pound for counts over 10 and not over 14; 2 cents per pound for counts over 14 and not over 20; 2* cents per pound for counts over 20 and not over 36, making prices as follows: Count: (8 and 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 below) Price- 61 61* 63 63* 64 66 67* 69 71* 72* 73* 75* 77* 79* 82* 85* 87 88* GOVERNMENT REGULATIONS RELATING TO PRICES. 699 For twisting any of above yarns in counts 8s to 12s in plies 8 to 12 ply an advance of 1 cent per pound is made over prices named above for 2 ply to 7 ply and for twisting them 13 ply to 60 ply an advance of 1$ cents per pound is made over prices named for 2 ply to 7 ply. For Brownell or Haskell-Dawes tube twisted yarn in counts 8 to 12 an advance is made of 4 cents per pound over the price for singles. On yarns made of strict to good middling staple cotton, not less than 1-rV inches and not over 1 J inches, for any standard ply there is added to the price of the single yarn 5 cents per pound on No. 10s and an additional one-quarter cent per pound on each number finer than 10s, making the following prices: Count: 36 38 40 42 44 46 48 50 Price: 1.01$ 1.04 1.06$ 1.09 1.11$ 1.14 1.16$ 1.19 Form of delivery. The prices named above are for commercial skeins, tubes, cones, and section beams of standard put up. For ball or chain warps 1 cent per pound extra will be added. For reverse twist 5 cents per pound adv ance over regular twist will be added. For cabling up to No. Terms. Prices include the weight of cones or tubes on which yarn is wound'and are net cash from date of shipment and are f. o. b. cars shipping point. Prices include cost of selling. PRICES FOR STANDARD CARDED HOSIERY AND KNITTING YARNS MADE OF WHITE COTTON. For single yarns. Count: (10 and 12 14 16 18 20 22 24 26 28 30 below) Price: 61 62 63 64$ 66 67$ 69$ 71$ 73$ 75$ 77$ For above yarns made of staple cotton, of strict to good middling grade, notless than 1^ inches and not over 1 inches staple the following prices will apply: Count: (10 and 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 below) Price: 65 66 67 68$ 70 71$ 73$ 75$ 77$ 79$ 81$ 83$ 85$ 87$ 89$ 91$ The basic price is on 10s and below: Over 10 and not over 14, rise of $ cent per number. Over 14 and not over 20, rise of f cent per number. Over 20 and not over 40, rise of 1 cent per number. For ply yarns 5 cents is added to the price for No. 10 single and J cent per pound additional per single number up to 40s. This charge for twisting these high-grade yarns is made for the reason that yarns used in the knitting trade require more perfect manufacture than commercial weaving yarns. They require inspection and also an extra process called doubling. These charges are based on actual differential costs of mills making these yarns, making the following schedule for twisted yarns of standard carded hosiery and knitting quality made of white cotton: Count:"(10and 12 14 16 18 20 22 24 26 28 30 below) Price: 66 67$ 69 71 73 75 77$ 80 82$ 85 87$ And the following schedule for twisted yarns made of staple cotton of strict to good middling grade not less than Ify inches and not over If inches staple: Count: (10 and 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 below) Price: 70 71$ 73 75 77 79 81$ 84 86$ 89 91$ 94 96$ 99 1.01$ 1.04 Form of delivery. On commercial tubes, cones, cops, Terms F. o. b. cars shipping poii cones. Prices include cost of selling BASED ON BASIC PRICE FOR NO. 10 AND BELOW, GRADE STRICT TO GOOD MIDDLING. Combed cotton single yarns. Length of staple. Not over 1A Inches: Count: (10 and 12 14 16 18 20 22 .24 26 28 30 . below) Price: 76 77 78 79$ 81 82$ 84 85$ 87$ 89$ 91$ For over 1^ inches and not above 1J inches, 5 cents additional: Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 below) Price: 81 82 83 84$ 86 87$ 89 90$ 92$ 94$ 96$ 1.02$ 1.06$ For over 1J inches and not above 1^ inches to 1 J inches, 5 cents additional: Count: (10 and 12 14 16 18 20 22 24 26 28 30 below) Price: 86 87 88 89$ 91 92$ 94 95$ 97$ 99$ 1.01$ Count: 36 40 45 50 55 60 Price: 1.07$ 1.11$ 1.16i 1.21$ 1.26$ 1.31$ Terms. F. o. b. cars shipping point, net cash from date of shipment, 2 per cent allowance to be made for "ude cost of selling. 700 HISTORY OF PRICES DURING THE WAR. For over 1 \ inches and not above l^j inches to If inches, 10 cents additional: Count: (10 and 12 14 16 18 20 22 24 26 28 below) Price: 96 97 98 99$ 1.01 1.02$ 1.04 1.05$ 1.07$ 1.09$ Count: 30 36 40 45 50 55 60 70 80 Price: 1.11$ 1.17$ 1.21$ 1.26$ 1.31$ 1.36$ 1.41$ 1.56$ 1.71$ Basic price No. 10 and below: Over No. 10 and not over No. 14, $ cent per number above No. 10. Over No. 14 and not over No. 24, | cent per number above No. 14. Over No. 24 and not over No. 60, 1 cent per number above No. 24. Over No. 60 and not over No. 80, 1$ cents per number above No. 60. Form of delivery. Hosiery and knitting yarns on commercial tubes, cops, cones or skeins in standard commercial put ups, suitable for the hosiery, underwear, and regular knitting manufacturers. Warp yarns on commercial tubes, cones, skeins, section beams, or warps. Such yarns if made of higher twist than standard warp twist, or if put up in other than standard forms for delivery, or if specially made for special work, or specially inspected for removal of imperfections, shall be subject to such additional prices to cover additional costs as may be agreed upon between the buyer and seller. All figures are based on prices net cash from date of shipment f. o. b. cars shipping point, for yarns de- livered at net weight such prices to include the cost of selling. BASED ON BASIC PRICE FOR NO. 10 AND BELOW, GRADE STRICT TO GOOD MIDDLING. Combed cotton ply yarns. For twisting 5 cents has been added to No. 10, and one-quarter cent additional per (single) number up to 80s. Length of staple. Not over 1-A inches: Count: (10 and 12 14 16 18 20 22 24 26 28 30 below) Price: 81 82$ 84 86 88 90 92 94 96$ 99 1.01$ For over I, 3 * inches and not above li inches, 5 cents additional: Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 below) Price: 86 87$ 89 91 93 95 97 99 1.01$ 1.04 1.06$ 1.14 1.19 1.25$ 1.31$ For over li and not above 1A inches to 1J inches, 5 cents additional: Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 55 60 below) Price: 91 92$ 94 96 98 1.00 1.02 1.04 1.06$ 1.09 1.11$ 1.19 1.24 1.30J 1.36J 1.42f 1.49 For over 11 inches and not above 1A inches to If inches, 10 cents additional: Count: (10 and 12 14 16 18 20 22 24 26 28 below) Price: 1.01 1.02$ 1.04 1.06 1.08 1.10 1.12 1.14 1.16$ 1.19 Count: 30 36 40 45 50 55 60 70 80 Price: 1.21$ 1.29 1.34 1.40$ 1.46$ 1.52| 1.59 1.76$ 1.94 Form of delivery. Hosiery and knitting yarns on commercial tubes, cones, or skeins in standard commer- cial put ups. Warp yarns on commercial tubes, section beams or warps. All figures are based on prices net cash from date of shipment, f. o. b. cars shipping point for yarns de- livered at net weight, such prices to include the cost of selling. (Dec. 12, 1918.) Prices for carded warp twist yarns, made from Upland cotton below the grade of strict middling. Single yarn. Count: (Sand 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 below) Price: 57$ 58 59 59$ 60 61$ 63 64$ 66$ 67$ 68$ 70$ 72$ 74$ 77$ 80$ 82 83$ The basic price is on No. 8 and below: Over 8 and not over 10, rise of \ cent per number. Over 10 and not over 14, rise of $ cent per number. Over 14 and not over 20, rise off cent per number. Over 20 and not over 30, rise of 1 cent per number. Over 30 and not over 36, rise of 1$ cents per number. Ply yarns. For 2-ply to 7-ply, 1 cent per pound has been added to the single yarn prices for twisting counts 8s and below and not over 10: 1$ cents per pound for counts over 10 and not over 14; 2 cents per pound for counts over 14 and not over 20; 2$ cents per pound for counts over 20 and not over 36, making prices as follows: Count: (Sand 10 12 13 14 16 18 20 22 23 24 26 28 30 32 34 35 36 below) Price: 58$ 59 60$ 61 61$ 63$ 65 66$ 69 70 71 73 75 77 80 83 84$ 86 GOVERNMENT REGULATIONS RELATING TO PRICES. 701 For twisting any of the above yarns in counts 8's to 12's in plies 8 to 12 ply an advance of 1 cent per pound is made over prices named above for 2-ply to 7-ply, and for twisting them 13-ply to 60-ply an advance of li cents per pound is made over prices named for 2-ply to 7-ply. For Brownell or Haskell-Dawes tube twisted yarn in counts 8 to 12, an advance is made for 4 cents per pound over the price for singles. Form of delivery. The prices named above are for commercial skeins, tubes cones and section beams of standard put up : For ball or chain warps 1 cent per pound extra will be added. For cabling up to No. 30's a charge of 6* cents per pound will be added to the price of single yarn. Terms. Prices include the weight of cones or tubes on which yarn is wound and are net cash from date of shipment, and are f. o. b. cars shipping point. Prices include cost of selling. Prices for carded warp-twist yarns, made from upland cotton that will grade strict to good middling. Single yarn. Count: (8 and 10 12 13 14 16 18 20 22 23 24 below) Price: 59 591 60* 61 61* 63 64| 66 68 69 70 Count: 26 28 30 32 34 35 36 Price: 72 74 76 79 82 83* 85 The basic price is on No. 8 and below : Over 8 and not over 10, rise of 4 cent per number. Over 10 and not over 14, rise of * cent per number. Over 14 and not over 20, rise of 1 cent per number. Over 20 and not over 30, rise of 1 cent per number. Over 30 and not over 36, rise of 1* cents per number. Ply yarns. For 2-ply to 7-ply, 1 cent per pound has been added to the single yarn prices for twist- ing counts 8's and below and not over 10; 1* cents per pound for counts over 10 and not over 14 ; 2 cents per pound for counts over 14 and not over 20 ; 2i cents per pound for counts over 20 and not over 36, making prices as follows : Count: (8 and 10 12 13 14 16 18 20 22 23 24 below) Price : 60 60J 62 62| 63 65 662 68 70* 71* 72* Count: 26 28 30 32 34 35 36 Price: 74* 76* 78* 81J 84* 86 87* SPECIAL. For twisting any of above yarns in counts 8's to 12's, in plies 8 to 12 ply an ad- vance of 1 cent per pound is made over prices named above for 2-ply to 7-ply, and for twisting them 13-ply to 60-ply an advance of 11 cents per pound is made over prices named for 2-ply to 7-ply. For Brownell or Haskell-Dawes tube twisted yarn in counts 8 to 12, an advance is made of 4 cents per pound over the price for singles. Form tof delivery. The prices named above are for commercial skeins, tubes, cones, and section beams of standard put up. For ball or chain warps, 1 cent per pound extra will be added. For cabling up to No. 30 a charge of 6* cents per pound will be added to the price of single yarn. Terms. Prices include the weight of cones or tubes on which yarn is wound and are net cash from date of shipment, and are f. o. b. cars shipping point. Prices include cost of selling. Prices for standard carded hoisiery and knitting yarns, made of white upland cotton. Single yarn. Count: 10 and 12 14 16 18 20 22 24 26 28 30 below Price: 61 62 63 64* 66 67* 69* 71* 73* 75* 77* The basic price is on 10s and below : Over 10 and not over 14, rise of * cent per number. Over 14 and not over 20, rise of 1 cent per number. Over 20 and not over 40, rise of 1 cent per number. For ply yarns 5 cents is added to the price for No. 10s single and \ cent per pound additional per single number up to 40s. This charge for twisting these high-grade yarns is made for the reason that yarns used in the knitting trade require more perfect manu- facture than commercial weaving yarns. They require inspection and also an extra process called doubling. These charges are based on actual differential costs of mills making these yarns, making the following schedule for twisted yarns of standard carded hosiery and knitting quality made of white cotton : Count: 10 and 12 14 16 18 20 22 24 '26 28 30 below Price: 66 67 69 71 73 75 77* 80 82* 85 87* Form of delivery. On commercial tubes, cones, cops, or skeins in standard put up. Terms. F. o. b. cars shipping point, net cash from date of shipment for yarns deliv- ered at net weight. Prices include cost of selling. Prices for carded hosiery and knitting yarns, made of staple cotton of strict to good middling grade not less than l^ ff inches and not over 1J inches staple. 702 HISTORY OF PRICES DURING THE WAR. Single yarn. Count: (10 and 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 below) Price: 65 66 67 68$ 70 71$ 73$ 75$ 77$ 79* 81$ 83* 85$ 87$ 89* 91$ The basic price is on 10s and below: Over 10 and not over 14, rise of f cent per number. Over 14 and not over 20, rise of f cent per number. Over 20 and not over 40, rise of 1 cent per number. For ply yarns 5 cents is added to the price for No. 10s single and J cent per pound additional per single number up to 40s. This charge for twisting these high-grade yarns is made lor the reason that yarns used in the knitting trade require more perfect manufacture than commercial weaving yarns. They require inspection and also an extra process called doubling. These charges are based on actual differential costs of mills making these yarns, making the following schedule for twisted yarns made of staple cotton of strict to good middling grade, not less than 1-j^ inches and not over 1 J inches staple. Count: (10 and 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 below) Price: 70 71$ 73 75 77 79 81$ 84 86$ 89 91$ 94 96$ 99 1.01$ 1.04 Form of delivery. On commercial tubes, cones, cops or skeins in standard put up. Terms. F. o. b. cars shipping point, net cash from date of shipment for yarns delivered at net weight. Prices include cost of selling. Prices for comber cotton single yarns based on basic price for No. 10 and below grade strict to good middling. Length of staple not over 1-^ inches. Count: (10 and 12 14 16 18 20 22 24 26 28 30 below) Price: 76 77 78 79$ 81 82$ 84 85$ 87$ 89$ 91$ Five cents additional for over 1^ and not above 1J inches. Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 below) Price: 81 82 83 84$ 86 87$ 89 90$ 92$ 94$ 96$ 1.02$ 1.06$ Five cents additional for over 1| and not above 1-A to 1J inches: Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 65 60 below) Price: 86 87 88 89$ 91 92$ 94 95$ 97$ 99$ 1.01$ 1.07$ 1.11$ 1.16$ 1.21$ 1.26$ 1.31$ Ten cents additional for over 1 and not above !& to If inches: Count: (10 and 12 14 16 18 20 22 24 26 28 30 below) Price: 96 97 98 99$ 1.01 1.02$ 1.04 1.05$ 1.07$ 1.09$ 1.11$ Count: 36 40 45 50 55 60 70 80 Price: 1.17$ 1.21$ 1.26$ 1.31$ 1.36$ 1.41$ 1.56$ 1.71$ Basic price is on No. 10 and below: Over No. 10 and not over No. 14, $ cent per number above No. 10. Over No. 14 and not over No. 24, f cent per number above No. 14. Over No. 24 and not over No. 60, 1 cent per number above No. 24. Over No. 60 and not over No. 80, 1$ cents per number above No. 60. Form of delivery. Hosiery and knitting yarns on commercial tubes, cops, cones, or skeins in standard commercial put ups, suitable for the hosiery, underwear, and regular knitting manufacturers. Warp yarns on commercial tubes, cones, skeins, section beams, or warps. Such yarns, if made of higher twist than standard warp twist, or if put up in other than standard forms for delivery, or if specially made for special work, or specially inspected for removal ofjmperfections, shall be subject to such additional prices to cover additional cost, as may be agreed upont>etween the buyer and seller. All figures are based on prices net cash from date of shipment f. o. b. cars shipping point for yarns jlivered at net weight, such prices to include the cost of selling. Prices for combed cotton ply yarns based on basic price for No. 10 and below. Grade: Strict to good middling. (For twisting, 5 cents has been added to No. 10 and one-quarter cent additional per (single) number up to 80s.) Length of staple, not over 1^ inches: Count: (10 and 12 14 16 18 20 22 24 26 28 30 below) Price: 82 82$ 84 86 88 90 92 94 96$ 99 101$ Five cents additional for over 1^ and not above 1J inches: Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 below) Price: 86 87$ 89 91 93 95 97 99 101$ 104 106$ 114 119 125* 131$ Five cents additional for over 1 and not above 1-tfj to 1 inches: Count: (10 and 12 14 16 18 20 22 24 26 28 30 36 40 45 50 55 60 below) Price: 91 92$ 94 96 98 100 102 104 106$ 109 111J H9 124 130i 136$ 142J 149 Ten cents additional for over li and not above 1^ to If inches: Count: (10 and 12 14 16 18 20 22 24 26 below) Price: 101 102$ 104 106 108 110 112 114 116$ Count: 28 30 36 40 45 50 55 60 70 80 Price: 119 121$ 129 134 140i 146$ 152| 159 176$ 194 GOVERNMENT REGULATIONS RELATING TO PRICES. 703 Form of delivery. Hosiery and knitting yarns on commercial tubes, cones, or skeins in standard com- mercial put-ups. Warp yarns on commercial tubes, section beams or warps. All figures are based on prices net cash from date of shipment f. o. b. cars shipping point for yarns delivered at net weight, such prices to include the cost of selling. COTTON LINTERS. On May 2, 1918, the price-fixing committee of the War Industries Board established the price for Government purchase of cotton linters of munition grade at $4.67 per hundred pounds f. o. b. points of production. All prices were made operative from May 2, 1918, to August 1, 1919. On July 8, 1918, acting upon the recommendation of the chief of the cotton linters section of the War Industries Board, the price-fixing committee fixed the maximum fee for the bleaching of cotton linters at $6.33 per hundredweight. This price, subject to revision October 31, 1918, was discontinued at that time. On July 10 the War Industries Board announced the following policy and regulations concerning cotton linters : It having been deemed necessary for the Government to take over all the cotton linters now in existence, irrespective of grade or ownership, arrange- ments have now been made for the purchase of mattress or high-grade linters which were produced prior to May 2, 1918, at the actual value of the commodity. Through the cooperation of the United States Bureau of Markets and cotton and cotton-products section of the War Industries Board, three samples of linters have been selected, representing types of linters on which prices have been suggested which are considered fair and equitable, both to owners of the linters and the Government. The Du Pont American Industries Co., of Wilmington, Del., as the purchasing agency for the Ordnance Department, is authorized to buy the linters, as follows : Suggested Type of linters designated : per^und. " A" grade cents__ $0. 10 " B " grade do . 07 " C " grade do . 05^ All prices to be f. o. b. points of location. It is suggested that by agreement between the inspector acting for the pur- chasing agency of the Ordnance Department, and the owners of -the linters, pur- chases can* be made on the basis above suggested, but it must be understood that the prices named are not obligatory, or by authority of the War Industries Board, but are, in the opinion of the representatives of the United States Bureau of Markets and the cotton and cotton products section of the War In- dustries Board, acting as a committee, fair and just prices that should be paid for these three selected grades. In the event agreement can not be reached between the inspector and the owner, then the Ordnance Department may exercise its right to commandeer, which process gives the owners opportunity to establish the actual value of their commodity in each instance. * All linters below the 'grade represented by type " C " shall be considered munition linters, and the price of $4.67 per hundred pounds f. o. b. points of production, established as of May 2, 1918, by the price-fixing committee of the War Industries Board, shall apply. There shall be only one grade (munition type) of linters manufactured dur- ing the 1918-19 season, and all purchases will be made by the procurement divi- sion of the United States Ordnance Department. RULES GOVERNING THE MANUFACTURE OF COTTON LINTERS. Rule 1. All linters cut after May 2, 1918, to be of munition type, running 145 pounds and upward per ton of cotton seed crushed. They may be offered and sold only through the Du Pont American Industries Co., acting as pur- chasing agents for the procurement division of the United States Ordnance Department. Rule 2. Linters shall be produced by one reginning of cotton seed. Such linters must be reasonably free of motes, flues, hull linters, hull fiber, hull 704 HISTORY OF PRICES DURING THE WAR. particles, sweepings, seed, meats, lubricating oil, excess moisture, and all foreign matter, and the price of $4.67 per hundred pounds, fixed by the War Industries Board, as of May 2, 1918, shall apply thereto. Ride 3. Linters contaminated by any of the above-mentioned foreign mate- rials, or linters made from spoiled, burned, or badly damaged seed or which have been otherwise damaged, will be accepted by the Government's authorized buying agency at a reduced price. If the producer and the buying agency can not agree upon a price, an agreed sample, approved by both the producer and the buying agency, may be submitted to the procurement division of the United States Ordnance Department for a decision as to price. Such decision shall be final. Rule 4- The making of two cuts of linters or passing the seed through lint- ing machines a second time is prohibited. Rule 5. Motes, flues, and sweepings: All motes, flues, and sweepings must be offered for sale to the Government buying agency, and if of acceptable grade will be purchased. If not acceptable, mills may then apply to the cotton and cotton products section of the War Industries Board for permit to sell on the open market such rejected motes, flues, and sweepings in limited specified quantities. Rule 6. All offerings of motes, flues, and sweepings must be in not less than carload lots. Rule 7. All raw cellulose produced by oil mills, whether linters, motes, flues, sweepings, hull fiber, or other fibrous by-products of the cotton seed, shall be offered for sale to the Government buying agency. Rule 8. The average weight of bales on any one shipment shall not be less than 450 pounds nor more than 550 pounds. Tare shall not exceed 7 per cent. For contract purposes it shall require 500 pounds gross weight to constitute one bale. All bales must be covered sufficiently and properly to protect the contents, Rule 9. Beginning August 1, 1918, all manufacturers of cotton linters will be required to furnish semimonthly reports as of the last working day prior to the first and fifteenth of each month ; these reports to be mailed within three days after the end of each semimonthly period. Reports will deal with raw material and finished linters along the lines laid down in the reports required by the United States Pood Administration. These rules harmonize with Army specifications. The lifting of control. The Government was practically under the obligation to purchase the supply of linters until August 1, 1919. Immediately after the signing of the armistice, however, restrictions for the manufacture and sale of mattress linters were removed. The Ordnance Department made an arrangement with the producers of linters, whereby it has agreed to purchase linters to the amount of 150,000 bales at prices of 10, 8, and 5| cents in the event that this amount is left in the hands of the manufacturers on August 1, 1919. RATES FOR COMPRESSING COTTON. On November % 5, 1918, the price-fixing committee announced an agreement which it had made with the cotton-compress companies at the request of the Railroad Administration. This agreement was made effective November 4, 1918, to expire July 31, 1919. The compensation agreed upon was 15 cents per 100 pounds to load 75 bales per 36-foot standard car, to apply to all points where cotton is compressed. 1 KAPOK. (June 18, 1918-Jan. 17, 1919.) On June 18, 1918, the War Trade Board announced that the importations of kapok would be restricted to purchases for Government use, and that import licenses would be issued through the textile alliance. 2 No agreement was madt 1 Price-Fixing Committee Minute Book X, Nov. 4. 1918. 2 War Trade Board Ruling, 133. GOVERNMENT REGULATIONS RELATING TO PRICES. 705 as to price. The restrictions of the War Trade Board were lifted on January 17, 1919. On August 20, 1918, the Bureau of Supplies and Accounts of the Navy noti- fied all dealers in kapoc that restraining orders were to be issued, and no more sales of kapoc were to be made to the public. These orders became effective on September 20, 1918. Navy orders were then placed until about November 19, 1918, when all orders were released. 2 A provisional price which averaged about 25 cents per pound was first made, but the final price paid to dealers averaged slightly over 30 cents per pound, some contracts being at lower prices and some at higher. Dealers were paid on the basis of the cost to them of the kapok taken by the Na-y. MANILA FIBER. (Mar. 25, 1918-Aug. 31, 1918.) On April 8, 1918, the War Trade Board announced that all purchases of Philippine manila fiber must be made under a schedule of fixed prices for the various grades. In practice there were two schedules: Schedule A was the minimum price to producers in the Philippines on shipments to the United States or elsewhere; schedule B was the maximum price on the same grades in New York. Both schedules were to continue in force for four months, beginning March 25, 1918; but schedule B became ineffective about June 20, 1918. On July 25, 1918, the price-fixing committee established a maximum price of 14 cents f. o. b. Manila for grade I current hemp. The prices of other grades were fixed soon after. The Government agreed to pay a price for manila rope based upon this maximum price fixed for hemp. This schedule lasted until August 31, 1918, after which no price control was exercised. SCHEDULE A. HEMP OR MANILA FIBER. Grade A, $30.75 per picul in Manila, equal to 22 36 cents per pound. Grade B, $29.75 per picul in Manila, equal to 21.63 cents per pound. Grade C, $28.87i per picul in Manila, equal to 21 cents per pound. Grade D, $28.12i per picul in Manila, equal to 20.45 cents per pound. Grade E,,$26.87l per picul in Manila, equal to 19.54 cents per pound. Grade F, $25.62| per picul in Manila, equal to 18.63 cents per pound. Grade I, $23.371 per picul in Manila, equal to 17 cents per pound. Grade J, $19.62| per picul in Manila, equal to 14.27 cents per pound. Grade SI, $25.62| per picul in Manila, equal to 18.63 cents per pound. Grade S2, $23.50 per picul in Manila, equal to 17.09 cents per pound. Grade S3, $20.62J per picul in Manila, equal to 15 cents per pound. Grade G, $20.12| per picul in Manila, equal to 14.63 cents per pound. Grade H, $18.87J per picul in Manila, equal to 13.72 cents per pound. Grade K, $14.50 per picul in Manila, equal to 10.54 cents per pound. Grade L, $13.50 per picul in Manila, equal to 9.81 cents per pound. Grade M, $9.75 per picul in Manila, equal to 7.09 cents per pound. Grade DL, $6.12J per picul in Manila, equal to 4.45 cents per pound. Grade DM, $4.25 per picul in Manila, equal to 3.09 cents per pound. CEBU MAGUEY. Grade 1, $12.75 per picul in Manila, equal to 9.27 cents per pound. Grade 2, $11.50 per picul in Manila, equal to 8.36 cents per pound. Grade 3, $9 per picul in Manila, equal to 6.54 cents per pound. MANILA MAGUEY. Grade 1, $12.25 per picul in Manila, equal to 8.91 cents per pound. Grade 2, $10.25 per picul in Manila, equal to 7.45 cents per pound. Grade 3, $8.50 per picul in Manila, equal to 6.18 cents per pound. 1 War Trade Board Ruling, 523. 2 In releasing orders for kapok, the Navy no longer requisitioned supplies and manu- facturers were allowed to sell their stocks on the open market. 125547 20 45 706 HISTORY OF PRICES DURING THE WAR. SCHEDULE B. HEMP OR MANILA FIBER. Cents per pound. A 32i B 3 U C _ 3o| D, 25 per cent over good current _ 301 D, good current 30 E, 75 per cent over fair current iM)?, E, 62J per cent over fair current '_ _ 29J E, 50 per cent over fair current 29 F, 37| per cent over fair current _ 28J F, 25 per cent over fair current 28 I, 12J per cent over fair current _ 26i I, fair current , 26 J, 50 per cent over superior seconds 23J SI ~ 28 S2 261 S3 24 G, soft superior seconds ^ 24 G, soft good seconds 23^ H, soft reds _ 22* K 19" L _ 18 M::::::::::::::::__:::::::::::::::::::::::::::::::::::::::::::::::::::::I: 15 DL__ 12 DM :__:::::: 10 CEBU MAGUEY. Grade 1 17J Grade 2 16 Grade 3 14 J MANILA MAGUEY. Grade 1__ 17 Grade 2 15fc Grade 3 14 MANILA CONTROL PRICES. Grades. A... B... C... D... E... F... G... H.. I... SI.. 82.. S3.. J... K.. L... M.. DL. DM. Prices in cents per pounds fixed Mar. 25, 1918, in Manila. 22.36 21.63 21.00 20.45 19.54 18.63 14.63 13.72 17.00 18.63 17.09 15.00 14.27 10.54 9.81 7.09 4.45 3.09 Prices in pesos Mar. 25, 1918, in Manila. 61.50 59.50 57.75 56.25 53.75 51.25 40.25 37.75 46.75 51.25 47.00 41.50 39.25 29.00 27.00 19.50 12.25 8.50 Prices in pesos July 26, 1918. in Manila. 51.250 49.625 48. 125 46. 875 44.750 42.750 33.500 31.500 38.500 42.750 39.125 34. 625 34.000 28.500 27.000 19.500 12.250 8.500 The above are all first-cost prices per picul in pesos. RAGS. (Aug. 19, 1918-Dec. 7, 1918.) Maximum prices for rags were established by the price-fixing committee on different grades of rags, under three dates in August, 1918. Each schedule was to remain in effect until October 1, 1918, and thereafter, pending the compilation and submission of cost data, by the Federal Trade Commission. These fixed GOVERNMENT REGULATIONS RELATING TO PRICES. 707 prices were net f. o. b. shipping point and were to apply to sales made both to the Government and to the public. In October, 1918, new prices, lower than those in force at that time, wero established, but publication was withheld and the prices were never announced. 1 VARIOUS GRADES OF RAGS. (Aug. 19, 1918.) Cents Grade. per pound. Mixed softs 21J Blue serge - 25 Brown serge 32 Green serge 32 Red serge 28 Black serge * 22 White softs 52 White flannels and serges 50 White knits 56 Red knits . 27J Blue knits, mixed 26J Silver gray knits 45 Brown knits 32 Fancy knits 21 Black dressed knits 30 Light hoods 38 Light gray underwear 16 Fine light merinos 32 Fine dark merinos 25 Coarse dark merinos with serges 16 Coarse light merinos with serges 24 Thibets 28J Cents Grade. per pound. Rough cloth 81 Skirted cloth, ripped from rough cloth_ 11 J Skirted cloth, sorted from mixed rags_ 10 Light skirted cloth 15J Black and white skirted cloth 17 Fine light skirted cloth 18J Brown skirted cloth 10 Dark skirted cloth 8J Black skirted cloth 10 Blue skirted cloth , 10 Tan skirted cloth 25 Light skirted worsted 25 Blue skirted worsted - 21 Black skirted worsted 22 Brown skirted worsted 23 Dark skirted worsted . 17 Wool carpets . 10J Soft-back carpets.1 4| Mixed linseys 41 White linsey flannels 7 Wool bodies 81 Skirted delaines 6 CLIPS (Aug. 21, 1918.) The following prices were to be paid by the rag collector to the cutter-up. They were based on high standard of grading and not to be paid for inferior packing : MEN'S WEAR. Cents per pound. Men's black and blue worsteds... 48 Fine clothing-house clips, light weight 39 Fine merchant tailor clips 38 Medium clothing-house clips, light weight 37 Ordinary clothing-house clips, including cotton warps 32 All-wool overcoating ' 23 Medium overcoatings free from cotton warps 20 All-wool mackinaws 17 Mixed overcoatings, including cotton warps 10 Cotton-warp clothing clips 5 All-wool flannels 25 WOMEN'S WEAR. Fine cloak and suit house, light weight mixed clips including serges 33 Fine cloak and suit house, light weight mixed clips without serges 25 All-wool mixed serges 40 All-wool cloakings Cotton warp serges 1 8 Cotton warp cloak and suit clips 5 *A11 fixed prices were discontinued after Dec. 7, 1918. The appended schedules of prices were issued by the price-fixing committee. 708 HISTORY OF PRICES DURING THE WAR. NEW WOOLEX CLIPS. Cents per Grade. pound. Black worsted 65 Blue worsted 62 Blue- worsted edges 50 Brown worsted 57 Black and white worsted 56 Light worsted 54 Fine light worsted and clips 50 Fine lights 45 Fine dark worsted 48 Fine dark worsted and clips 47 Fine mixed clips 44 Mixed dark clips 40 Mixed clips . 35 Medium mixed clips 32 Heavy-weight clips Coarse dark clips 23 Coarse light clips 25 Ordinary light clips 20 Black and white 30 Dark gray oxford 26 Plain black clips '- 26 Blue uniform clips (without edges) 38 Fancy mackinaw 20 Union 8 Light union 11 Light blue serge 52 Black serge 50 Cents per pound. 50 50 Grade. Blue serge Brown serge Green serge 50 Red serge 50 Tan serge GO Black and blue serge edges 35 Dark serge 35 Light serge 45 White serge 70 Blue cheviot 28 Red cheviot 28 Brown cheviot '. 28 Green cheviot 28 Black cheviot 28 Light blue cheviot 28 Tan cheviot 35 Light homespun 35 Medium homespun 30 Ordinary homespun 25 Light flannel 35 Blue flannel 35 Red flannel 35 Green flannel 36 French flannel 27 Mixed flannel 25 Black flannel 33 Grade. Cents per pound. Reworked wool or fiber. (Aug. 23. 1918.) These prices include carbonizing, picking, and carding. If dyeing is added, the charges must not exceed 5 cents for black or olive drab (khaki) without special permit from the fiber administrator. Cents Grade per pound. Coarse light merinos with serges 50 Thibets 50i Light skirted cloth 39 Black and white skirted cloth 42 Fine light skirted cloth 44J Brown skirted cloth 29 Dark skirted cloth 27 Black skirted cloth 29 Blue skirted cloth 29 Tan skirted cloth 48 Light skirted worsteds 48 Blue skirted worsteds 43 Black skirted worsteds 44 Brown skirted worsteds 46 Dark skirted worsteds 39 Wool carpets 30 Soft black carpets 331 Skirted delaines _ 30 Blue serge 48J Brown serge 58 Green serge 58 Red serge _ 55 Black serge ^ 44J White softs 86 White flannels and serges 83 White knits 92 Red knits 59 Blue knits, mixed 57 Silver gray knits 93 Brown knits 66 Fancy knits 48J Black dressed knits 63 Light hoods 76 Light gray underwear 50 Fine light merinos 58J Fine dark merinos 48 Coarse dark merinos with serges 38 SILK. (Sept. 19, 1918-Dec. 20, 1918.) The War Trade Board, on September 3, 1918, voted to revoke all outstanding licenses for the importation of silk noils, silk-noil yarns, garnetted silk, and silk waste. This action was effective for shipments after September 10, 1918. 1 Importers were required to give an option on all new licenses to the United States Government. The United States Government was permitted to purchase these restricted commodities at a price 2 per cent above the cost at the foreign port of shipment, as shown by the consular invoice, including all charges except prepaid freight and prepaid insurance. These provisions were administered by the Silk Association of America. The ruling of the War Trade Board granting this option to the Government was rescinded on December 20, 1918.* 1 War Tr"ade Board ruling, 237. 1 War Trade Board ruling, 434. GOVERNMENT REGULATIONS RELATING TO PRICES. 709 WOOL. (Dec. 15, 1917-Jan. 1, 1919.) 1 The formal price fixing of wool began on May 1, 1918. The regulations per- taining to wool prices fall under one or another of the following heads and are so arranged in this compilation : Government regulations for the importa- tion of wool, issued by the War Trade Board ; Government regulations for han- dling the 1918 clip, issued by the War Industries Board ; Government wool prices effective May 1, 1918; Government issue prices to manufacturers holding Government contracts. Disposal of Government stocks. On December 9, 1918, the Director of Pur- chase and Storage of the War Department made the following plan for dispos- ing of the Government supplies of wool. Limited amounts of wool were to be sold from time to time at public auction. A minimum reserve price was estab- lished, below which no bids were considered. The first auction was held on December 18, 19, and 20, 1918. Prices offered by bidders dropped at each auction, and on January 24, 1919, the following announcement appeared : The War Department authorizes the following statement from the office of the Director of Purchase, Storage and Traffic : Many inquiries have been received from wool dealers, wool growers, and wool manufacturers in regard to the policy of the Government in disposing of the stocks of wool held by the War Department. In answer to these inquiries, the War Department states as follows: First. It is the intention of the War Department to continue to sell at public auction such wools as manufacturers may require, with a minimum reserve price the equivalent of the British civil-issue price. This basis of the British civil-issue price will be maintained as the minimum reserve price until July 1, 1919. Second. It is not the intention of the War Department, in the sale of wool now owned by the Government, to compete with the domestic producers of wool. It is the intention of the War Department, on July 1, 1919, when the domestic clip will probably be arriving in the markets in sufficient volume to supply the wants of manufacturers, to discontinue offering at auction or other- wise until such a time as the domestic producer shall have had ample oppor- tunity to market his 1919 clip, November 1, 1919, those grades of wool that would compete with the product of domestic wool growers remaining in the hands of tile Government. 2 Removal of import restrictions. Ruling No. 426, bureau of imports of the War Trade Board, issued on January 8, 1919, is given below: Wool, icool tops, noils, yarns, and waste. On and after January 10, 1919, licenses may be issued where the applications therefor are otherwise in order for the importation of wool, wool tops, noils, yarns, or waste from any non- enemy country. Such licenses will contain the provision requiring indorsement of the bill of lading to the Textile Alliance (Inc.). The. Textile Alliance (Inc.) will no longer require the giving of an option to the Government to purchase the commodities imported. Hereafter it will be unnecessary to refer to any applications for the impor- tation of these commodities to the office of the Quartermaster General. Under the foregoing rules, licenses may now be issued to importers other than the Quartermaster General for these commodities from the Argentine, Uruguay, and South Africa. Ruling No. 208, issued July 12, 1918, is hereby revoked. By a further ruling effective April 29, 1919, the importation of wool under a general import license was permitted from all countries except Germany, Luxemburg, Hungary, and those parts of Russia under Bolshevik control. 1 There were no Government purchases of the 1919 clip, but all stocks of wool on hand at the time of the armistice were disposed of by the War Department. 2 Federal Trade Information Service, Jan. 25, 1919. 710 HISTORY OF PRICES DURING THE WAR. REGULATIONS FOR THE IMPORTATION OF WOOL. (Announcement, Dec. 15, 1917.) The War Trade Board announces that the following regulations will apply as of December 15, 1917, to the importation of wool from- all foreign sources : " 1. Applicants for import licenses will be required to sign an agreement con- taining the following provisions : "A. The applicant agrees that he will not sell the wool covered by Applica- tion No. , or any other wool of either foreign or domestic origin, to any person other than a manufacturer without the consent of the War Trade Board ; and that, in the event of a sale to a person other than a manufacturer with such consent, he will exact from his purchaser a similar agreement. " B. The United States Government shall have, and it is hereby granted, an option to purchase, at the price and on the terms hereinafter set forth, all or any part of the wool covered by Application No. , for 10 days after custom- house entry thereof ; and thereafter on such portion thereof as shall be at any time unsold until the whole amount thereof has been sold by the importer. In the event of the exercise of such option, the basis of price to be paid for the wool shall be equivalent to 5 per cent less than the basis of price of July 30, 1917, for similar wool, as established by the valuation committee of the Boston Wool Trade Association, the actual price of each lot to be : ' determined by a com- mittee to be appointed jointly by the Boston Wool Trade Association and the United States Government. "2. These regulations shall not apply to any wool purchased abroad on or before December 15, 1917." Applicants for import licenses will therefore file with their first application copies of all their contracts outstanding on December 15, 1917, for the impor- tation of wool from foreign sources, and as to which all wool contracted for had not been entered at any United States port of entry December 15, 1917, and showing in detail the amount of wool already shipped and the amount of wool yet to be shipped thereunder. The War Trade Board in fixing the effective date of the foregoing regulations as of December 15, 1917, had as its object the avoidance of any retroactive effect which would be burdensome and embarrassing, and earnestly appeals to wool importers and to manufacturers of woolen products so to conduct their transac- tions with respect to the stock of wool now} on hand and the importations now en route that further speculation, hoarding, and the continuation of fictitious prices may be avoided. It is hoped that the effect of these regulations will be to clarify the situation and remove the causes for anxiety which have occasioned the abnormal and illogical inflation of prices for that commodity. The price of wool has advanced in the United States by a percentage greatly in excess of such price advances in other countries. The price in England is fixed at 55 per cent in excess of prewar prices. The price in the United States has advanced 200 per cent above the prewar level. It is true that the demand for wool and products thereof has increased as a result of the military needs of the United States, but the demand in other countries has been relatively as great. Those countries, however, have introduced a system of governmental control, and this has prevented the abnormal inflation which the absence of such control invites when the regular* course of commercei is disturbed by war. Governmental control in other countries has allayed the sense of uncertainty as regards the future, which in this country has become almost hysterical and has occasioned speculation between importers. Cloth manufacturers have been impelled by fear to carry abnormal stocks of wool and to contract with dealers or importers for unusual quantities for far forward delivery. Manu- facturers of clothing have also been infected by a like dread, inciting the pur- chase of cloth exceeding in volume their reasonable needs. Such processes have brought about an artificial demand, far in excess of actual consumption, the inevitable effect of which has created a fictitious price condition. This has happened at a time when the wool supply in the country is known to be ample for present needs and for a sufficient period in advance to remove any reasonable apprehension as to the ultimate available supply. Statistical data collected by the Government, corroborated by independent investigations of the wool industry, clearly indicate that no wool shortage exists, either In the world's supply or in the amount on hand in the United States, notwithstanding the increased consumption for military purposes. The GOVERNMENT REGULATIONS RELATING TO PRICES. 711 clip in most countries has steadily increased since the outbreak of the war, because sheep raisers, stimulated by the higher returns for wool, have permitted the flocks to increase, and it may be reasonably expected that this increased production will continue. The consumption of wool during the year 1918 will be little, if any, greater than it was during the year 1917, for the reason that textile manufacturers have been producing well up to the limit of their reasonable capacity, and, further, because of the increased use of substitutes for wool in manufacturing processes. The Commercial Economy Board has begun to exert its influence in applying the principle of conservation to the consumption of wool, and will continue to induce the curtailment of its use for less essential products ; that is to say, the consumption of wool will be directed into needful and withheld from unnecessary channels. This action as a matter of course will tend to diminish the consumption and further to maintain the present safe margin of supply. The War Trade Board has invited and confidently awaits the cooperation of the wool dealers and the cloth and clothing manufacturers of the country in causing the abandonment of the practice of far forward purchasing and the unnecessary accumulation of stocks, which practice a mistaken estimate of the wool supply of the country and of the world has incited them to follow. Such hoarding is evidently dangerous, because of the resultant price inflation. The continuance of this practice will threaten the holders of abnormal stocks or those who are committed for far forward deliveries with a severe loss when the inevitable period of readjustment in commodity values is at hand. It is hoped that the action of the War Trade Board in providing that the Gov- ernment of the United States may take advantage of the option contained in all import licenses issued on and after December 15, 1917, to purchase importa- tions of wool at a price 5 per cent below that of the Boston market as of July 30 last, will stabilize the market, encourage the importations of wool to con- tinue in the accustomed manner, check the price movement toward the breaking point, and permit of an orderly recession toward a less dangerous level. The bringing about of these conditions through the cooperation of the trade at large with the War Trade Board will enable the various interests concerned so to adjust their operations as to avoid what might otherwise lead to a serious catastrophe. The procedure of the War Trade Board in this r as in all other regulations instituted by it, necessarily is designed to attain greater national efficiency through the distribution of imported commodities, but the board is likewise desirous of accomplishing this result with the least disturbance to the legitimate course of industry, understanding that the harmonious coordination of all the energies of the Nation is the best guaranty for the successful termination of the wap. More rigid regulations became effective January 14, 1918: The War Trade Board, after due consideration, has decided to supersede its regulations of December 15, 1917, affecting the importation of wool and deal- ings in foreign and domestic wool and to promulgate in their place and stead certain other regulations effective as of January 14, 1918. Pursuant to such decision, the War Trade Board hereby withdraws the said regulations of December 15, 1917, and in their place and stead promulgates the following regulations, effective on and after January 14, 1918 : First. All importers of wool will sign, before the delivery or release of any imported wool to them, an agreement or guaranty containing among other things provisions in substantially the following form : That the United States Government shall have, and is hereby granted, an option to purchase at the price and on the terms hereinafter set forth all or any part of the wool covered by this guaranty for ten (10) days after custom- house entry thereof; and thereafter to purchase such portion thereof as shall be at any time unsold by the importer until the whole amount thereof has been sold. In the event of the exercise of such option the basis price to be paid for the wool shall be equivalent to five (5) per cent less than the basis of price of July 30, 1917, for similar wool, as established by the valuation com- mittee of the Boston Wool Trade Association, the actual price of each lot to be determined by a committee appointed jointly by the wool trade and the United States Government. This option shall not apply to any wool purchased abroad before December 15, 1917. 712 HISTORY OF PEICES DURING THE WAR. That the importer will neither export any merchandise in class A or class B of domestic or foreign origin, as hereinafter described, nor transfer ownership or control thereof to or for the benefit of any person or persons outside the United States without first obtaining an export license from or -the consent of the War Trade Board. That the importer will not sell to any person or persons in the United States any merchandise in class A of domestic or foreign origin, as hereinafter de- scribed, without first obtaining the purchaser's agreement, in form satisfactory to the War Trade Board, and the consent thereon of the War Trade Board, which consent is to be applied for through the Textile Alliance (Inc.). That the importer will not sell or deliver to any person or persons in the United States any merchandise in class B of domestic or foreign origin, as hereinafter described, without rendering to the purchaser at or prior to the time the merchandise is shipped or delivered a written invoice thereof con- taining the following conditions to be fulfilled by such purchaser: That the purchaser will neither export such merchandise nor transfer own- ership or control thereof to or for the benefit of any person or persons outside the United States without first obtaining an export license from or the consent of the War Trade Board. That the purchaser will report through the Textile Alliance (Inc.) to the War Trade Board at the end of each month all sales of such merchandise. That the purchaser will not resell such merchandise to purchasers in the United States excepting under the same conditions. Description of class A and class B merchandise: Class A : Wool ; animal hair suitable for spinning or weaving ; tops of wool or of animal hair ; wooled skins ; skins of sheep or of goats or of lambs or of kids bearing hair suitable for spinning or weaving. Class B: Noils of wool or of animal hair; yarn of wool or of animal hair; waste of wool or of animal hair; animal hair unsuitable for spinning or weav- ing; woolen rags; jute wrappings or coverings when received as wrappings or coverings of merchandise listed in class A or class B above. Second. Purchasers of class A merchandise from importers will sign .an agreement or guaranty containing, among othe~ things, all of the provisions above set forth, with the exception of the provision giving an option of pur- chase to the United States Government. New rulings were announced in the War Trade Board Journal for August, 1918: The supply of wool in the United States has been gradually decreasing owing to the enormous demands for military requirements and because of the short- age in ocean tonnage for transporting wool to this country, and it is evident there will not be sufficient wool to take care of both civilian and military needs unless some comprehensive plan is adopted for purchasing and importing the necessary supply. It is apparent that under the present system of private transactions in wool it is difficult to insure the utilization thereof in the best interests of the coun- try, and likewise difficult for individuals to secure the necessary tonnage be- cause of lack of assurance to the Shpping Board that the wools imported will be used for the national interests. The War Trade Board on July 12, 1918, after consulation with the War In- dustries Board and the War Department, therefore adopted the following ruling : 1. All outstanding licenses for the importation of wool from Uruguay, Argen- tina, and South Africa are revoked as to ocean shipments made from abroad after July 28, 1918. 2. Hereafter no licenses for the importation of wool from the countries above referred to for shipment from abroad after July 28, 1918, will be issued for the remainder of the present calendar year, except to the Quartermaster General of the United States Army. (W. T. B. R. 166.) GOVERNMENT REGULATIONS FOR HANDLING WOOL CLIP OF 1918. The War Industries Board has fixed the prices of the 1918 clip of wool, as established by valuation committees and approved by the Government, as those established on July 30, 1917, at Atlantic seaboard markets. These values are figured on scoured basis. GOVERNMENT REGULATIONS RELATING TO PRICES. 713 RIGHTS OF THE GOVERNMENT. The Government shall have a prior right to acquire all of the 1918 wool clip, or any portion thereof which it may require, at the prices fixed by the War Industries Board. The remainder will be subject to allocation for civilian purposes under the direction of the War Industries Board. A very large portion of the wool-manufacturing machinery working on Gov- ernment contracts is located close to the Atlantic seaboard, and in order to avoid the possibility of railroad delay and congestion late in the season, when the crops are moving, it is desirable and necessary that the wool clip shall be collected as soon as possible at points near to the manufacturing centers. For these reasons it has been considered advisable to designate as distributing centers those centers which are close to points of consumption and which have the necessary facilities for handling wool. NECESSITY FOR CONCENTRATION. The necessities of the Government at this time are such as to require the use of all existing agencies for concentrating the wool near the centers of con- sumption. Therefore all the wool of the 1918 clip must be distributed through approved dealers in approved centers of distribution. - APPROVED DEALERS DEFINED. Approved dealers shall be those dealers authorized by the War Industries Board to handle wool who are located in the distributing centers and who buy from growers direct, through agents, or from country merchants ; and also, those dealers authorized by the War Industries Board who are located in wool- growing districts, and who buy direct from growers and resell, or consign to the dealers in distributing centers. Approved distributing centers are the usual well-recognized points of dis- tribution. CLASSES OF WOOL. In a general way, the clip may be divided into fleece wool and territory wool. Fleece wool shall be considered as that which is grown in the States east of the Mississippi River, and also the States of Minnesota, Iowa. Missouri, Arkansas, and Louisiana, and also those parts of Kansas, Nebraska, North Dakota, and South Dakota, and other localities where the same general con- ditions prevail. All wool not listed as fleece wool shall be considered terri- tory wool. In order that the collection of the clip may proceed in a rapid and orderly manner, the following regulations are promulgated by the Wool Division of the War Industries Board : FLEECE WOOL REGULATIONS. COMPENSATION OF GROWER AND DEALER. Approved dealers shall be entitled to a gross profit in no case to exceed 1 cents per pound on the total season's business, this profit to cover all expenses from grower to loading wool on board cars. The grower shall receive fair prices for his wool based on the Atlantic sea- board price as established on July 30, 1917, less the profit to the dealer, as stated above, and less freight to seaboard, moisture shrinkage, and interest. In no case shall this be construed^to mean that there shall be more than 1 cents gross profits made from time wool leaves growers' hands until it arrives at the distributing center. On consignments forwarded to distributing centers the prices to be paid for the wool to the approved dealers therein shall be those established by the valuation committee on Atlantic seaboard values of July 30, 1917, to which shall be added a commission of 4 per cent to be paid by the Government, if bought by the Government, or by the manufacturer to w T hom the wool is allotted for other than Government purposes. This commission is to include grading and other expenses of handling. The consignor shall be charged with the freight on his shipment and interest on all advances made for his account to the date of the arrival of his wool at a distributing center, as shown by the railroad receipt. 714 HISTORY OF PRICES DURING THE WAR. On any lot remaining unsold in his possession for a longer period than six months the dealer shall be entitled to charge storage and insurance at the market rate, and this additional charge shall be added to the price of the wool. POOLING BY GROWERS IS ADVISED. Growers- who desire to do so will be allowed to pool their clips in quantities of not less than minimum carloads of 16,000 pounds and consign the wools so pooled as one account to any approved dealer in any approved distributing center. Growers are urged to adopt this latter course through county agents or others, thus eliminating the profits of one middle man. GOVERNMENT PRICE. Approved dealers in approved distributing centers will be required to open and grade all their purchases or consignments as rapidly as possible after the arrival of wool at point of distribution. Prices on all wools, as soon as graded, will be fixed by a Government valuation committee appointed for that purpose in the different distributing centers. Prices to be paid by the Gov- ernment at distributing centers for such wool as it may require are to be those established as of July 30, 1917, at the Atlantic seaboard markets. In addition to said prices the Government is to pay a further sum equal to 4 pel- cent of the selling prices to cover compensation or commission to approved dealers for their services in collecting and distributing wool. On wool not taken by the Government for its own use and which may be allocated for other uses, prices will also be fixed in accordance with July 30, 1917, values at Atlantic seaboard markets, and on such wool approved dealers shall be entitled to a commission or compensation of a sum equal to 4 per cent of the selling price, and this commission or compensation shall be a charge against said wool and shall be collected from the manufacturer to whom said wool is allocated. PROFITEERING PROHIBITED. As a guard against profiteering, the books of all approved dealers in dis- tributing centers shall be at all times open to Government inspection, *nd if it be found that their gross profits, including the aforesaid commission of 4 per cent, are in excess of 5 per cent on the season's business, then such profits Shall be disposed of as the Government decides. The books of the country dealers shall likewise be open to Government inspec- tion. If it be found that their gross profit for the season's business is In excess of 1$ cents per pound, then such excess profits shall be disposed of as the Government may decide. DISTRIBUTING CENTERS. The approved distributing centers for fleece wools are: Boston, Mass. Chicago, 111. Louisville, Ky. New York, N. Y. St. Louis, Mo. Baltimore, Md. Philadelphia, Pa. Detroit, Mich. Wheeling, W. Va. TERRITORY WOOL REGULATIONS. EXCEPTIONS. In the Willamette Valley, Oreg., and the Puget Sound district of the State of Washington, the regulations in regard to fleece wools shall apply. DISTRIBUTING CENTERS. For the reasons before stated, in order that the 1918 wool clip may be promptly concentrated near the manufacturing centers and to make use of every available agency for storing and grading, all Territory Wools must be consigned to one of the designated distributing centers which are as follows : Portland, Oreg. New York, N. Y. Boston, Mass. Chicago, 111. St. Louis, Mo. Philadelphia, Pa. GOVERNMENT REGULATIONS RELATING TO PRICES. 715 The only exception is that clips of under 1,000 pounds may be sold by the owner. In buying these small clips, the buyer must recognize that he is en- titled to only a small profit, which must not exceed 2 cents per pound. Growers, if they desire for any reason to consign their wool through their banker, coun- try merchants, or others, may do so and said bank, country merchant, or others, may receive a commission or compensation for handling said growers' wool (in no case to exceed one-half cent per pound) ; such commission or com- pensation to be paid by grower. Growers are, however, urged to consign their own wool and get the full price. SHIPPING. As soon as possible after wool reaches the railroad the owner should load It and consign it to any approved dealer he may select in one of the designated distributing centers, who will there deliever the wool to the Government or to some manufacturer to whom the Government may allot the wool. These ap- proved dealers will store, insure, handle, and deliver the wool under Govern- ment regulation. The grower should procure two copies of the shipping invoice and of the railroad bill of lading, and forward the original invoice and bill of lading to the dealer whom he has selected to handle his wool, retaining the duplicate in his own possession. ADVANCES, INTEREST, AND FREIGHT. * The grower shall be entitled to receive an advance up to but not exceeding 75 per cent of the fair estimated market value of his wool. He shall pay in- terest on this advance at the rate of 6 per cent per annum from the date he receives such advance until his wool arrives at the distributing center, as shown by the railroad receipt. It is not intended that the grower shall pay interest on advances after the date of arrival, as shown by the railroad receipt, and he shall be entitled to receive interest on the selling value of his wool after freight has been deducted from date of arrival. The Government is fixing the price of the 1918 clip on a basis delivered at Atlantic seaboard points. It is therefore incumbent on the grower to deliver his wool at the designated dis- tributing centers, and the expense of delivering the wool at such centers will be charged against the wool on- a basis of the freight rate from point of origin to the Atlantic seaboard. VALUING AND GRADING. As soon as possible after the arrival of the wool at a distributing center, if the wool is to be taken in the original bags, it shall be valued by the Government Valuation Committee. If the wool is to be graded, it shall be valued in the piles by the Government Valuation Committee as soon as the piles are graded and ready for delivery. All grading will be conducted under Government supervision. The grades out of each clip will be weighed sepa- rately and the books of the dealer, as far as they pertain to any grower's wool, shall be open to him. Tags, bucks, black, and other recognized discount fleeces w in be paid for at prices fixed by the Government. Bags will be paid for in the same manner. PAYMENTS TO GROWERS. Growers shall be entitled to payment on a basis of the date of the arrival of the wool as shown by the railroad receipt. However, as it would be im- possible for obvious reasons to make settlement on each clip on the date of its arrival, in order that the grower may lose nothing by any delay in settle- ment, he shall be entitled to draw interest on the selling price of his wool less freight from the date of the wool's arrival until the date of final settlement Final returns will be made as promptly as possible in all cases. COMMISSIONS. The grower does not pay the commission or compensation for handling wools in the designated distributing centers. This commission or compensation for handling will be added to selling price of the wool and paid by the buyer. If sold in the original bags, the commission or compensation shall be 3 per cent of the selling price. If the wool is graded, the commission or compensation shall be 3 per cent of the selling price. This commission or compensation includes drayage, storage, and insurance for a period not exceeding on any lot six months after arrival. On any lot remaining unsold in his possession Jor a 716 HISTORY OF PRICES DURING THE WAR. longer period than six months the dealer shall be entitled to charge storage and insurance at the market rate, and this additional charge shall be added to the price of the wool. MILLS LOCATED IN WOOL-GROWING DISTRICTS. In order that the Government may have full control of the wool situation, with a view to conserving as far as may be necessary the wool supply for military purposes, it is considered necessary to prohibit manufacturers from buying wool, except in the designated distributing centers, and then only with the permission and consent of the Government under such regulations as the Government may hereafter make. However, mills located in wool-growing districts not near to the designated centers of distribution, and which are working on Government orders, will be given permits through the wool division of the War Industries Board to buy certain amounts of wool in their immediate neighborhood. In making appli- cations for such permits, the manufacturer applying should state the number of his Government order, the amount of goods yet to be delivered against such order, the amount of his wool stock on hand, and the amount and class of wool required to complete said order. The manufacturer receiving such a permit will be required to report to the wool division of the War Industries Board all purchases made against permit issued to him. PERMITS TO DEALERS. All dealers in approved centers desiring a permit to operate should apply to the wool division of the War Industries Board stating their capacity for storing and grading. All country dealers should apply for a permit to operate by writing to the wool division of the War Industries Board giving name and address. In order to expedite movement of wool, dealers in country districts and dis- tributing centers may operate immediately in accordance with the above regula- tions, pending application for and granting of permit. LEWIS PENWELL, Chief of Wool Division, War Industries Board. GOVERNMENT WOOL PRICES, EFFECTIVE MAY 1, 1918. DOMESTIC WOOL IN THE GREASE. BOSTON VALUATIONS SCOURED BASIS AS OF JULY 30, 1917 GREASY FLEECE WOOLS. OHIO AND SIMILAR, INCLUDING NEW ENGLAND STATES, NEW YORK, PENNSYL- VANIA, WEST VIRGINIA, KENTUCKY, VIRGINIA, MICHIGAN, NEW JERSEY DELAWARE AND MARYLAND. Choice. Average. Fine delaine ". . $1 85 Fine clothing $1 75 1 70 i^ Bid staple 1 68 % Bid. clothing 1 60-62 3-8 staple 1 45 3-8 clothing 1 42 1-4 Bid. staple 1 32 1 4 Bid clothing 1 30 Low 1-4 ... 1 17 Common and braid. . . 1.07 MISSOURI, INDIANA, ILLINOIS, AND SIMILAR, INCLUDING IOWA, WISCONSIN, MINNESOTA, KANSAS, NEBRASKA, AND ARKANSAS. _ Choice. Average. Fine delaine $1 80 Fine clothing $1.70 .65 ^ Bid. staple .... 1.63 60 Yi Bid . clothing 1.60 .57 3-8 staple . 1.40 .37 3-8 clothing . . 1 37 34 1-4 Bid staple 1 28 26 Bid. clothing . 1 26 .24 Low 1-4 1 17 15 Common and braid . . . 1.07 GOVERNMENT REGULATIONS RELATING TO PRICES. 717 GOVERNMENT WOOL PRICES, EFFECTIVE MAY 1, 1918 Continued. GEORGIA AND LAKE WOOLS AND OTHER SOUTHERN WOOLS. Average. Average lots, largely 3-8s . Average lots, largely l-4s . $1.25 1.20 Semibrights are to be classified the lot. Semibright. 5 territory or fleece, according to the ^character of TERRITORY. Choice. Average. Inferior. Fine and fine medium staple $1.80 $1.75 $1.70 Fine and fine medium clothing ... 1.70 1.65 1.62 J B Id staple 1.68 1.63 1.60 J Bid clothing ' .... .60-62 1.58 1.53 High 3 8s staple 56-58s .45 1.42 1.40 High 3 8s clothing 56-58s .42 1.39 1.37 .40 1.37 1.35 3 8s clothing 56s . .37 1.34 1.32 Low 3 8s staple 50-56S .35 1.32 1.30 Low 3 8s clothing 50-56s 1 32 1.29 1.27 High 1 4 blood staple 48-50s 1.32 1.29 1.27 High 1-4 clothing 48-50s 1.30 1.27 1.25 1_4 staple 46-48s . 1.28 1.26 1.24 1-4 clothing 46-48s 1.26 1.24 1.22 Low 1-4 staple 44s 1.17 1.15 1.13 1.07 1.05 1.03 TEXAS. $1.75 $1.70 $1.65 Eight months 1.55 1.50 1.45 1.50 1.45 1.40 CALIFORNIA. $1.70 $1.65 $1.60 1.50 1.45 1.40 fall 1.40 1.15 SOUTH AMERICAN WOOLS. [Valuation of South American wools in the grease on a clean scoured basis. Values . as of July 30, 1917.] ARGENTINE, MONTEVIDEO, AND CONCORDIA FLEECE WOOLS, BASIS UNITED STATES OF AMERICA STANDARD TYPES. Argentine. Montevideo and Concordia. Good 6s or 32 36s combing fleece $0.85 $0.85 .90 .90 1.05 1.05 1.20 1.20 1.25 1.30 1.35 1.40 Good 1 2 Bid or 58-50 combing fleece 1.45 1.55 Good 60-64s combing fleece - 1.55 1.60 1.60 1.65 1.50 1.50 718 HISTORY OF PRICES DURING THE WAR. SOUTH AMERICAN WOOLS Continued. ARGENTINE, MONTEVIDEO, AND CONCORDIA BURRY COMBING FLEECE. Argentine. Montevideo and Concordia. Burry 6s or 32-36s combing fleece Burry 5s or 36-40s combing fleece Burry 4s or 44-40s combing fleece Burry 3s or 46s combing fleece Burry 50s combing fleece Burry 56s combing fleece Burry |-bld. or 58-60s combing fleece . Burry 60-64s combing fleece Burry 64s combing fleece Burry 64s clothing combing fleece $0.75 .80 .95 1.10 1.15 1.20 1.30 1.40 1.45 1.35 SO. 75 .80 .95 1.10 1.15 1.25 1.40 1.45 1.50 1.35 In all the above burrs are considered in the shrinkage. Argentine, Montevideo, and Corcordia, good skirting, free from bellies, same basis as Burry combing fleece. LAMBS. BUENOS AIRES, MONTEVIDEO, CONCORDIA, PATAGONIA, AND SIMILAR LAMBS PRACTICALLY FREE. Buenos Aires. Montevideo, Concordia, Patagonia, and similar.- Good36-40s Good44-40s Good 46s Good 50s Good 56s Good % blood of 58-60s.. Good 64s $0.80 .95 1.00 1.05 1.15 1.25 1.25 $0.80 .95 1.05 1.16 1.25 1.30 1.30 BUENOS AIRES, MONTEVIDEO, CONCORDIA, PATAGONIA, AND SIMILAR SECOND CLIP WOOLS PRACTICALLY FREE. Good 5s or 36-40s $0. 85 $0. 85 Good 4s or 14-40S 1. 00 1. 00 Good 3s or 46s 1. 05 1. 10 Good 60s 1.15 1.20 Good 56s 1.25 1.30 BELLIES. BUENOS AIRES, MONTEVIDEO, CONCORDIA, AND SIMILAR BELLIES. 5s or 25-40s $0. 75 4s or 44-40s .90 3s or 46s - .95 50s 1. 05 56s 1. 15 58-60s 1. 25 64s 1. 25 Burrs included in shrinkage. PUNTA ARENA FLEECE. [Skirted, U. S. A. style.] 36-40s'good combing fleece $0.90 44-40s good combing fleece 1. OC 46s good combing fleece 1. 20 50s good combing fleece 1. 30 56s good combing fleece 1. 4C 58-60s good combing fleece 1. 5c 64s good combing fleece 1. 60 PUNTA ARENAS, BELLIES AND PIECES. 36-40s clothing $0.80 44_40 S clothing .90 46s clothing 1. 1C 50s clothing 1.20 56s clothing 1.30 58-60s clothing 1-45 64s clothing 1.50 GOVERNMENT REGULATIONS RELATING TO PRICES. 719 BELLIES Continued. PERUVIAN WASHED. White supermerino $1. 50 White average merino 1. 30 White choice No. 1 1.27 White average No. 1 1. 20 White average No. 2 1. 10 Gray merino 1. 25 Gray average No. 1 1. 08 White pieces and locks ' 1. 00 Stained 1. 15 ICELAND WASHED. Choice washed $0. 90 Average *. . 85 CHILEAN UNWASHED. Merino spring 56-60s $1. 30 Merino Mestiza Fall carding 1. 12 Mestiza choice Valdivian Spring 46-56s broad 1. 23 Mestiza average spring 56-58s, some 50s 1. 28 Doma average spring 44-46s 1. 10 Common average spring 40-36s 85 Cordillira average carding, bulk 50 1.18 ISA gray (carding) 46-56s 1. 15 PERUVIAN UNWASHED. Choice 50-58s $1. 30 Average 46-56s broad 1. 12 Low 36-40s 85 Black 44-46s 1. 00 Gray 40-46s 90 UNWASHED ECUADORIAN. Ecuadorian 40-36s $0.85 UNWASHED BOLIVIAN. Bolivian 46-56s $1. 12 WASHED BOLIVIAN. Bolivian 50-56s $1. 20 FOREIGN BLACK AND GRAY COMBING AND CLOTHING. Combing. Clothing. Blacks. 44-40s(gray) 46s (gray) 50s (gray) 56s (gray) 58-60s(gray) 60-64s and fine (gray). Iceland (gray) China (gray) Peruvian (gray) Bolivian (gray) Chili (gray) Ecuador (gray) Spanish (gray) Cape Coa and colored. . Greek, black and gray . JO. 90 1.05 1.15 1.25 1.30 1.50 .90 .60- .70 21.12 .80- .90 $0.85 1.00 1.15 1.25 1.30 1.50 .70- .80 U.25 . 70-1. 20 .60- .85 .70- .85 .40-1.25 .60- .75 1.00-1.30 $1.00 1.10 1.25 1.35 1.40 1.60 .80-1.00 1. 25-1. 40 1.00 L 1. 30-1. 50 1.75-1.50 Fine. 2 Low. Pulled cloth. Burry and seedy, cottssame basis as burry combing. SCOURED WOOLS. [Valuation of scoured fleece wool on the basis of values as of July 30, 1917.] TERRITORY AND FLEECE. Scoured fine and fine medium $1. 62 Scoured fine and fine medium territory choice 1. 70 Scoured fine medium 1. 60 Scoured 3-8's territory Scoured 1-4's territory, New Mexican Scoured low territory, New Mexican Scoured fine California (baled) Scoured medium California (baled) Scoured defective fine California (baled) Scoured slightly defective fine California (baled). Carbonized fine California (baled) Carbonized medium California (baled) Scoured fine short Texas Scoured domestic fine sorts Scoured fine sorts Scoured domestic medium sorts . .. 45 23 .00 .54 .40 . 15 .38 .50 .36 .60 .10 .37 .05 720 HISTORY OF PRICES DURING THE WAK. SCOURED WOOLS Continued. SOUTH AMERICAN SHO^N LAMBS. Concordia, Patagonia, Montevideo, Pasto Fuerte, and similar lambs : Scoured 50-56s . _ *i 25 BUENOS AIRES LAMBS. Scoured Buenos Aires lambs, 46s _ $1 15 Scoured Buenos Aires Hoggetts, 46s Carbonized Buenos Aires lambs, 46s l'l5 Carbonized Buenos Aires lambs, 40-44s 1* 10 SOUTH AMERICAN SECOND CLIP FLEECE. Patagonia, Pasto Fuerte, Concordia, Montevideo, and similar : Scoured (bulk) 56s _ $1. 35 Scoured 50-56s 1. 30 Scoured 50s 1 25 Scoured 46-50s 1. 20 Scoured (bulk) 44s 1. 15 Carbonized 5fr-56s . 1 35 Carbonized 46-50s 1 17 Carbonized (bulk) 44s 1. 12 SOUTH AMERICAN BALED. Scoured Buenos Aires 46-50s _ $1. 25 Scoured Buenos Aires (bulk) 44s 1. 10 Scoured Chubut 60-64s 1.65 SOUTH AMERICAN PIECES AND BELLIES. Scoured Punta Arenas, 50s $1. 25 Scoured Punta Arenas, 46s 1. 17 CHILIAN. Scoured 1-2 blood_ $1.25 Scoured 3-8s 1. 10 Scoured gray and stained low quarter . 80 Scoured common . 70 Merino 1. 35 PERUVIAN. Scoured No. 1, 3-8s _ - $1. 22 Scoured No. 2, quarter 1. 12 Scoured gray low, 3-8s 1. 12 CAPE. Scoured fine, fair staple (bags) $1.48 Scoured fine, snow-white (baled), average 1. 60 Scoured fine, snow-white (baled), choice 1. 70 Scoured fine (baled), inferior 1. 32 Scoured fine, stained (baled) 1.25 Scoured fine, stained (baled), inferior 1.00 Scoured grey (baled), average _ . 85 Scoured grey (baled), coarse . 60 Scoured fine choice long (bags) 1.70 Scoured fine good staple (bags) 1.55 Carbonized fine (bags) 1.62 Scoured No. 2 (baled) 1.25 SCOURED AUSTRALIAN FLEECE WOOL. Extra super, scoured Choice scoured, good length, sound; free or practically free. . Best carding, bulky, free Good carding, fairly free Good average combing, scoured Queensland, nearly free Average combing scoured, fairly free .* Good combing pieces and bellies Average length carbonizing, bellies, pieces Shivy fleeces, thinly grown 70'sand better. $1.80 1.75 1.70 1.60 1.65 1.55 1.50 1.45 1.40 64-70's. $1.65 .70 .65 .55 .60 .50 .45 .40 1.35 60-64's. $1.65 1.60 1.55 1.45 1.50 1.40 1.35 1.30 1.30 70's. 64-70's. 60-64's. Super clothing, free Good clothing, free Average clothing, nearly free, carbonizing . $1.75 1.65 1.55 $1.70 1.60 1.50 $1.60 1.55 1.45 $1.50 1.45 1.35 GOVERNMENT REGULATIONS RELATING TO PRICES. 721 SCOURED WOOLS Continued. TOPS. [Prices as of July 30, 1917.] Grade : 36s $1.00 40s T 05 44s 1. 20 46s __ 1. 35 50s : ::::::::__::_: i. 50 56s 1. 62 58s 1. 84 60s -. 1. 95 64s -I 2. 05 66s 2. 12 32s and below (carpet tops) at corresponding values. PULLED WOOL. [Valuation on domestic and foreign pulled wools in the grease on a clean basis. Scouring costs not included. All values as of July 30, 1917.] DOMESTIC COMBINGS. AA combing, 64s $1.80 A combing, 60s 1. 70 B combing, 56-50s 1. 55 C combing, 46-50s 1. 43 Low combing, 44-40s 1.25 Butt combing, average 36s . 1. 00 DOMESTIC STAPLE. AA staple. 64s $1.78 A super staple, 60s 1. 70 B super staple, 56-50s 1.52 C super staple, 44-50s 1. 42 DOMESTIC CLOTHING. AAA clothing, 70s__. ,_ $1. 85 AA clothing, 64s 1.72 A super clothing, 58-56s = 1. 60 B super clothing, 50s 1.46 C super clothing, 44s 1. 33 Low C . 95 Gray B super 1. 28 Gray C super 1.18 Short gray _ .92 A shearlings 1. 25 B shearlings 1. 15 C shearlings . 90 White vat . 35 SPANISH PULLED. Choice white fine $1.10 Average white . 85 Choice black 1. 32 Average black ^ . 82 Low black . 65 Low medium white . 75 Low .65 MONGOLIAN. Choice No. 1 white $0.68 Low white . 55 Choice No. 1 gray . 68 Low gray . 50 CHINA. Choice No. 1 white $0. 85 Average white - 78 Average gray ; 48 EAST INDIA. Low white $0. 55 Low medium yellow 8fl CORDOVA. White combing $0. 65 Fine white clothing .85 ITALIAN. White skin wool $0. 45 ICELAND. No. 2 skin wool $0.80 No. 1 Iceland *><> 125547 20 46 722 HISTOBY OF PRICES DURING THE WAR. PULLED WOOL Continued. SOUTH AMERICAN PULLED. Fine combing $1. 65 AA staple (choice), 60-64s 1.70 Half blood or 58-60s combing 1.55 A combing (choice), 56-58s * 1. 55 56s combing 1. 45 B combing (choice), 50-56s 1.50 50s combing 1. 35 C combing (choice), 46-50s 1.35 46s combing 1. 25 Low combing (choice), 44s 1. 15 44_40s combing 1. 10 Lincoln combing (choice), 36s, 40s 1__ 1.00 Do . 95 AA clothing, 60-64s 1.65 A clothing, 56s 1.52 B clothing, 50s 1.42 C clothing, 44-40S 1.12 Lincoln clothing, 36s : . 95 PULLED CAPE. AA staple. 64s $1. 75 AA clothing, 64s 1. 55 SCOURED PULLED WOOLS. [Valuation of scoured pulled wool on the basis as of July 30, 1917.] DOMESTIC PULLED. Scoured domestic, AA superpulled choice $1. 75 Scoured domestic. AA superpulled average 1. 65 Scoured domestic, A superpulled choice 1. 65 Scoured domestic, low A superpulled choice 1. 53 Scoured domestic, A superpulled western 1. 50 Scoured domestic, high B choice 1. 50 Scoured domestic, B superpulled Scoured domestic, B superpulled western Scoured domestic, C superpulled choice 1. 28 Scoured domestic, C superstained pulled 1.05 Scoured domestic, C superlow stained pulled 9t Scoured domestic, gray B superpulled l * SOUTH AMERICAN PULLED. Scoured fine Scoured 56-58s } 55 Scoured 50s ^ * *j Scoured 46s J 30 Scoured 40-44s } 15 Scoured Lincoln * '" AUSTRALIAN. [Valuation of Australian greasy fleece combing on a clean basis as of July 30, 1917.] Type. Extra super spinners, choicest style. Spinners, good length, free. Average spinners, bright and attractive, few burrs Super French combing, free Shafty combing, showy, bright but tender, free or nearly Shafty combing, sound, but more or less burry Good top makers, irregular quality and length, but fairly free. . Average top makers, irregular quality and length, but fairly free. Good French combing, fairly free French combing, few burrs Average combing, more or less burrs . . . Average length combing, very burry or suitable for carbonizing . . French combing, very burry, or suitable for carbonizing 70s. $1.95 1.90 1.85 1.80 1.80 1.78 1.80 1.75 1.75 1.68 1.70 1.60 1.50 66-70s. $1.93 1.88 1.83 1.78 1.78 1.76 1.78 1.73 1.73 1.66 1.67 1.55 1.45 64s. $1.90 U.85 1.80 1.75 1.75 1.75 1.75 1.70 1.70 1.63 1.65 1.50 1.40 $1.85 1.80 1.75 CLOTHING. Type. Extra super, regular length, absolutely free. Choice clothing, absolutely free Average clothing, free or nearly free Average clothing, some fault Faulty, irregular 64-80s 80s. $1.85 1.80 1.70 1.60 $1.80 1.75 1.65 1.55 1.70 1.68 1.70 1.65 1.65 1.58 1.60 1.45 1.35 t-70s. i $1. 65 1.55 1.50 1.40 Basis of prices as per the committee's report on which all valuations contained herein are based. GOVERNMENT REGULATIONS RELATING TO PRICES. 723 AUSTRALIAN Continued. BROKEN NECKS AND PIECES COMBINGS. Type. 64s. 60-64S 60s. Extra super combing, Geelong and N. E. types. $1 80 $1 75 SI 70 Good length combing, sound free or nearly free i 75 70 65 Average length, sound, free or nearly free." .70 65 60 Average length, tender, free or nearly free . . 60 55 50 Good length sound few burrs or seeds 65 60 55 Average length, sound, few burrs or seeds .60 55 50 French combing, few burrs or seeds . 55 50 45 Good length conYbing very burry 60 55 50 Average length combing, very burry .50 45 1 40 French combing very burry . .40 35 1 30 STAINED PIECES AND CARBONIZING PIECES. Type. 64s and better. 60-4s. Good length carbonizing bellies .... $1.25 1.15 .00 .50 .45 .35 .25 .10 .00 .80 11.15 1.05 .90 1.40 1.35 1.25 1.15 1.00 .90 .70 Average length carbonizing bellies.. Short length carbonizing bellies Good length combing stained pieces, free or nearly free Average length combing, free or nearly free stained pieces Good length combing stained pieces, burry Average length combing stained pieces burry Bulky carbonizing stained pieces. Average carbonizing stained pieces , Inferior carbonizing stained pieces Carbonizing charges not included. COMBING BELLIES. Type. 64-70S. 60-64S. 60s. Super combing bellies, sound, free . $1.70 $1.60 $1 50 Good length combing bellies, sound, free or nearlv free 1 1.65 1 55 50 Average length combing bellies, free or nearly free, sound French combing bellies, fairly free 1.55 1.45 1.45 1 35 .40 30 Good length combing bellies, more or less burry and seedy or tender Average length combing bellies, more or less burry and seedy or tender French combing bellies, more or less burry or seedy. . . 1.45 1.35 1 30 1.35 1.25 1 20 .30 .15 1 15 Combing bellies, verv burry 1.25 1.15 1.10 1 Basis of prices as per the committee's report on which all valuations contained herein are based. MERINO LAMBS. Extra super geelong lambs free Super, practically free Average length second super, practically free Short free lambs Good length, more or less burrs } Medium length, more or less burrs. . Irregular length, more or less burrs. . >carbonizing Short length, more or less burrs Inferior Kempy , carbonizing J MERINO LOCKS. Good length locks free .' Average length locks free : Short length locks free Bulky locks, carbonizing. Average length locks, carbonizing Short length locks, carbonizing Carbonizing charges not included. WEANERS. $1.70 1.60 1.56 1.40 11.40 1.35 1.20 1.10 $1.20 1.10 1.00 1.00 .90 .89 70s. 64s. 60s. First rombing wpanpr Average ____________________ 1. 50 Inferior ____________________ 1. 45 Three-eighths staple 56s : Choice ______________________ 1.55 Average Inferior Three-eighths clothing 56s : Choice ______________________ 1. Average ____________________ 1. 47 Inferior ____________________ 1. 42 Low 3-8 staple 50-56s : Choice _____________________ 1.50 Average ____________________ 1.47 Inferior ____ ___________ 1. 45 Low 3-8 clothing 50-56s : . Choice _____________________ 1. 48 Average ____________________ 1. 45 Inferior -------------------- 1. 4, High 1-4 48-50s : Choice ______________________ 1. 45 Average -------------------- 1. 42 Inferior _ _____ 1. 37 II, 40 37 . 35 .40 . 38 . 35 1. 38 TERRITORY. Issue price. High 1-4 clothing 48-50s : Choice Average Inferior 1-4 staple 46-48s : Choice Average Inferior 1-4 clothing 46^488 : Choice Average 1. 35 Inferior 1 1. 32 Low 1-4. 44s : Choice 1. 25 Average 1 23 Inferior 1. 20 Common-braid 40s : Choice 1. 17 Average 1. 15 Inferior- _ 1.12 TEXAS. 12 months : Choice 1. 80 Average , 1. 75 Inferior 1. 70 8 months : Choice 1. 60 Average 1. 57 Inferior 1. 55 6 months : Choice 1. 5 Average 1. 47 Inferior 1. 45 CALIFORNIA. 12 months : Choice 1. 80 Average 1. 70 Inferior 1. 60 8 months : Choice 1. 55 Average 1. 50 Inferior 1. 45 11 w. Bucks, tags, black, seedy, and other discount fleeces will le paid for at fair prices fixed later by the Government. THE GOVERNMENT'S ISSUE PRICES ON FOREIGN WOOLS. [Argentine, Montevideo, Concordia fleece wools Basis V. S. standard type.] Issue price. Good 6s or 32-36s, combing fleece $0. 92 Good 5s or 36-40s, combing fleece --- 1. 02 Good 4s or 44-40s, combing fleece 1. 12 Good 3s or 46s, combing fleece Good 50s, combing fleece Good 56s. combing fleece . 1- 50 Good 1-2 or 58-60s, combing 8Mfe flR2*ShSf~_ 1.65 . 1. 50 1.45 52 Good 60-64S, combing fleece Good 64s, combing fleece {JSgg2^~ ~"^- 1. 70 Good 64s, clothing 1.65 AUSTRALIAN AND NEW ZEALAND CROSSBREDS. 36s $1. 00 40s , 1. 05 44s 1.20 46s 1. 35 46-50s 1. 42 50s $1. - r ,0 50-56s 1. 55 56s 1. 60 58s __ 1.75 ARGENTINE, MONTEVIDEO. AND CONCORDIA BURRY COMBING FLEECE. Hurry 6s or 32-36s combing fleece $0. 80 Burry 5s or 36-40s combing fleece . 86 Burry 4s or 44-40s combing fleece 1. 02 Burry 3s or 46s combing fleece 1. 18 Burry 50s combing fleece 1. 22 Burry 56s $1.34 Burry 58-60s 1. 50 Burry 60-64s 1. 55 Burry 64s 1. 60 Burry 64s clothing 1. 45 In all the above burrs are considered shrinkage. Argentine, Montevideo, and Concordia good skirtings, free from bellies, same basis hurry combing fleece. GOVERNMENT REGULATIONS RELATING TO PRICES. 727 BUENOS AIRES, MONTEVIDEO. CONCORDIA, PATAGONIA, AND SIMILAR LAMBS PRACTICALLY FREE. Buenos Aires : Issue price. Good 36-40s $1. 00 Good 44-40s 1. 10 Good 46s 1. 15 Good 50s 1.25 Good 56s 1.35 1-2 or 58-60s 1. 40 64s 1. 40 Montevideo, Concordia, Patagonia, and similar : Good 36-40s 1. 00 Good 44-40s 1. 10 Good 46s 1. 15 Good 50s 1.25 Good 56s 1. 35 Good 1-2 blood or 58-60s 1. 40 Good 64s 1. 40 Buenos Aires Second-clip wools, practically free : Good 5s or 36-40s 1. 00 Good 4s or 44-40s 1. 15 Good 3s or 46s 1. 20 Good 50s 1. 30 Good 56s 1.40 Montevideo, Concordia, Patagonia- Second clip : 5s or 36-40s 1.00 4s or 44-40s 1. 15 3s or 46s 1. 25 50s 1 1. 35 56s 1. 45 Buenos Aires, Montevideo, and Con- cordia, and similar bellies : 5s or 36-40s . 82 4s or 44-40s__ . 98 3s or 46s 1.03 Buenos Aires, Montevideo, and Con- cordia, and similar bellies Con- tinued. Issue price. 50s 1. 10 56s 1. 25 58-60s 1. 35 64s 1. 40 Burrs included in shrinkage. Punta Arenas fleece, skirted, Ameri- can style : 36-40s combing fleece 1. 02 44-40s combing fleece 1. 12 46s 'combing fleece 1.30 50s combing fleece 1. 40 56s combing fleece 1. 50 58-60s combing fleece 1. 70 64s combing fleece 1. 70 Punta Arenas bellies and pieces : 36-40s clothing 1. 00 44-40s clothing 1. 10 46s clothing 1. 25 50s clothing 1. 35 56s clothing 1.45 58-60s clothing 1. 55 64s clothing 1.60 Foreign pulled wools : 36-40s combing 1. 05 44-40s combing 1. 20 46s combing 1. 40 50s combing 1. 45 56s combing 1. 55 i blood, or 58-60s combing 1. 65 Fine* combing 1. 75 Greasy Cape Merinos : 64s deep combing 1. 70 64s average fair combing 1. 63 64s good average clothing 1. 50 THE GOVERNMENT'S ISSUE PRICES ON AUSTRALIAN WOOLS GREASY FLEECE. [Clean scoured basis.] Type. 70s. 66-70S. 64s. 60s. $1.95 1.90 1.85 1.80 1.80 1.78 1.80 1.75 1.75 1.68 1.70 1.60 1.50 $1.93 1.88 1.83 1.78 1.78 1.76 1.78 1.73 1.73 1.66 1.67 1.55 1.45 $1.90 1.85 1.80 1.75 1.75 1.75 1.75 1.70 1.70 1.63 1.65 1.50 1.40 $1.85 1.80 1.75 Spinners good length free Average spinners bright and attractive few burrs Shafty combing showy, bright but tender, free or nearly . . 1.70 1.68 1.70 1.65 1.65 1.58 1.60 1.45 1.35 Shafty combing sound but more or less burry Good top makers, irregular quality and length, but fairly free. . Average top makers, irregular quality and length, but fairly free. French combing few burrs . Average length combing, very burry or suitable for carbonizing French combing very burry or suitable for carbonizing CLOTHING. Type. 80s. 70s. 64-70S. Extra super regular length absolutely free $1.85 $1.80 Choice clothing absolutely free 1.80 1.75 $1.65 1 70 1.65 1.55 Average clothing some fault . 1.60 1.55 1.50 Faultv irregular 64-80s 1.40 BROKEN NECKS AND PIECES COMBING. [Clean scoured basis.] Type. 64s. 60-6-ls. 60s. Extra super combing Geelong and N E. types $1.80 $1.75 $1.70 Good length combing, sound, free, or nearly free 1.75 1.70 1.65 Average length, sound, free, or nearly free ........ 1.70 1.65 1.60 Average length tender free or nearly free 1.60 1.55 1.50 Good length, sound, few burrs or seeds 1.65 1.60 1.55 Average length sound few burrs or seeds .... 1.60 1.55 1.50 French combing, few burrs or seeds 1.55 1.50 1.45 Good length combing, very burry . . . 1.60 1.55 1.50 Average length combin** very burry 1.50 1.45 1.40 728 HISTORY OF PRICES DURING T/HE WAR. STAINED PIECES AND CARBONIZ1N< I I'lF.CKS. [Clean scoured basis.] Type. 64-708. 60-64S. Good length carbonizing bellies . . $1.25 1.15 1.00 1.50 1.45 1.35 1.25 1.10 1.00 .80 $1.16 1.05 .90 .40 .35 .25 .15 .00 .90 .70 Average length carbonizing bellies Short length carbonizing bellies . . Good length combing stained pieces, free or nearly free Average length combing, free or nearly free stained pieces Good length combing stained pieces burry Average length combing stained pieces, burry Bulky"carbonizing stained pieces*^ Average carbonizing stained pieces Inferior carbonizing"stained pieces Carbonizing charges not included. SCOURED WOOLS. [Clean scoured basis.) Type. 70s and m - above. 64-708. 60-64S. $1.60 1.55 1.45 1.50 1.40 1.50 1.45 1.35 1.35 1.30 Choice scoured, good length, sound, free or practically free Best carding bulky free $1.75 1.70 L60 .65 .55 .70 .60 .50 .50 .40 $1. 1. 1. 1. 1. 1. 1. 1. 1. 1. 70 65 55 60 50 GO 55 45 45 35 Good carding, fairly free Good average combing scoured Queensland nearly free Average combing, scoured, fairly free.. . Super clothing free $1. 75 1.65 1.55 Good clothing, free . Average clothing, nearly free Good combing pieces and bellies Bhivy fleece thinly grown Other scoured wools to be valued on the basis of greasy wools of similar type. COMBING BELLIES. [Clean scoured basis.] Type. 64- 70s. 60-64S. 60s. Super combing bellies, sound, free ... $1. 70 $1.60 $1.50 Good length combing bellies sound free or nearly free 65 1 55 1 50 Average length combing bellies free or nearly free, sound .60 1 50 1.45 Good length combing bellies, more or less burry or seedy .45 1.35 1.30 Average length combing bellies more or less burry or seedy .35 1 25 1 20 French combing bellies more or less burry or seedy .30 1.20 1.15 Combing bellies very burry 25 1 15 1 10 MERINO LAMBS. [Clean scoured basis.] Extra super Geelong lambs, free $1.70 Super, practically free -> 1.60 Good length, free or nearly free 1.40 Medium length, free or nearly free 1.30 Short length, free or nearly free Inferior length, kempy, carbonizing MERINO LOCKS. Good length locks, free $1.20 Average length locks, free 1 10 Short length locks, free 1 00 Bulky looks, carbonizing Average length locks, carbonizing Short length locks, carbonizing Carbonizing charges not included. WEANERS. 70s. 60s. . 60 S1.55 SI. 50 1.30 1.25 1.20 TOPS. The Government has a small amount of tops in stock, upon application. These will be shown and priced 6. HIDES, SKINS, AND LEATHER. The regulation of the prices of hides, skins, and leather began with the control of imports, administered through the license system. On December 15. 1917, the Tanners' Council of the United States of America (Inc.), was designated by the War Trade Board as the consignee of hides, skins, and leather imported into the United States. 1 On March 20, 1918, the woolpullers agreed to give the Government an option on all skins pulled by them, at maximum prices fixed for April, May, and Juno, on a basis of 14 cents per square foot on all leather suitable for jerkins. At the same time prices were established on four grades of leather at 16 cents. 18 cents, 20 cents, and 23 cents, the average price for finished jerkin leather ap- proximating 18 cents. 2 On May 19, 1918, the War Industries Board made public the following state- ment of its policy concerning the prices of hides, skins, and leather : * As the war needs of the Government for leather products of various kinds are so large as to necessitate some measure of control over the hide and leather industry, a meeting was called of those interested in the hide business for the purpose of discussing ways and means of stabilizing the prices of hide and skins. At this meeting were representatives of the Cattle Men's Association, the Hide and Skin Importer's Association, the packers, the country hide dealers, the hide brokers, and the Food Administration. DIFFERENCES OF OPINION ADJUSTED. While there was great difference of opinion among the various interests rep- resented as to what a fair and reasonable maximum price on hides and skins should be for the next 90 days, the representatives of the industry as a com- mittee of the whole finally recommended to the price-fixing committee of the War Industries Board the maximum prices on the attached schedules to be established by the Government on hides and skins. After several meetings and lengthy discussions the price-fixing committee, with exhaustive information, not only as to the present position of the industry but as to the near -future developments, finally concluded that the prices named on the kill for May, June, and July, while a little higher than their differential value of the present stock and the present market prices, were reasonable, so the Government has adopted the schedule of maximum prices as they relate to present stocks of domestic hides and skins, and to the kill for May, June, and July. As the Government, through an import-license system, exercises full control over all imported hides and skins, the price-fixing committee has fixed maximum prices until July 31 on hides and skins similar to those produced in this country at the same price fixed for our domestic producers, and all other hides and skins. as per list attached. This differs somewhat from the views expressed by the hide committee regarding the fixing of prices on imported hides and skins. 1 War Trade Board Journal, Jan. 8, 1918. For the rules governing the administration of the licenses see bulletins issued by the Tanners' Council, Dec. 20, 1917, and Feb. 28, - Report of the hides, leather, and tanning materials section of the W;ir Industries F.onrd to Chairman Baruch, Jan. 1, 1918. Official Bulletin, May 19, 1918. 729 730 HISTORY OF PRICES DURING THE WAR. FUTURE MEETING ARRANGED. A meeting will be held two weeks before the expiration of the present agree- ment, which expires July 31, 1918, for the purpose of considering the situation and with a view of fixing maximum prices for a further period. The price-fixing committee will call a meeting of the tanners at once with a A iew of establishing fair and equitable prices on leather, and will endeavor to see that leather products will reach the consumer at fair and equitable prices. The supervision and carrying into effect of the decision of the price-fixing com- mittee will be executed by the hide and leather section of the War Industries Board. In June, 1918, the War Trade Board restricted the importation of hides and skins, tanned skins, leather, and manufactures of leather. All licensees were required to give an option to the Government at the fixed prices. Action to restrict importations of hides, skins, leather, tanned skins, and manufactures of leather has been taken by the War Trade Board, which have revoked all outstanding import licenses for hides, skins, leather, tanned skins, and manufactures of leather as to ocean shipments after June 15, 1918. Here- after no licenses for shipments from overseas will be issued except for (a) Shipments from South America of 57.000 long tons of cattle hides of specified weights and grades. (&) Shipments of other grades of hides or skins from any 'Allies or neutral countries as may be certified by the War Industries Board to be for Govern- ment use. (c) Shipments of leather, tanned skins, or manufactures of leather as may be certified by the War Industries Board to be for Government use. The usual exceptions for shipments overland or by lake from Canada, over- land from Mexico, or as back haul from European ports when loaded at con- venient ports and without delay are made. The licenses covering the foregoing shipments will be issued according to such allocations of the various commodities as may be made by the hide and leather control section of the War Industries Board. All importers of the foregoing commodities are to be required as a condition precedent to the indorsement of bills of lading by the Tanners' Council to give the United States an option to purchase such of these commodities on which a maximum price has been estab- lished by the price-fixing committee appointed by the President at prices so fixed. 1 The lifting of control. The regulation of the prices of foreign hides and skins was discontinued January 1, 1919. Fixed prices on domestic hides and skins expired by limitation on January 31, 1919. War Trade Board Ruling No. 43, dated December 20, 1918, revoked the restric- tions of July 16, 1918, and on January 9, 1919, the board announced that the import licenses for hides and skins would be issued thereafter without the provision that the bill of lading be indorsed to the Tanners' Council. (War Trade Board Ruling 492.) PRICE SCHEDULES. On July 23, 1918, the price schedules for August, September, and October were announced, providing the following changes in the earlier schedules. 2 The following price changes were agreed upon at a meeting of the hide inter- ests in the United States with the price-fixing committee of the War Industries Board on July 19, 1918 : Packer hides. Heavy native steers, No. 1, 30 cents ; heavy butt-branded steers, No. 1, 28 cents; heavy Texas steers, No. 1, 28 cents; heavy Colorado steers, 27 cents ; light native cows, No. 1, 24 cents. 1 War Trade Board Ruling 141, June 16, 1918. 2 Official Bulletin, July 23, 1918. GO VEHEMENT REGULATIONS RELATING TO PRICES. 731 PRICES OF COUNTRY HIDES. Country hides (for best sections). Extremes, 25 to 45 pounds, 22 cents; buffs, 45 to 60 pounds, 21 cents. All country hides are to be bought and sold on a selected basis. River Plate Frigorifico hides. Maximum price on steers, $53 Argentina gold; maximum price on cows, $40 Argentina gold (f. o. b. shipped, including export duty and lighterage, but not including salting charges). The new schdule applies to August, September, and October take-off on all domestic hides and skins, and August, September, and October shipment from origin of all foreign hides and skins. BASIS FOB DIFFERENTIALS. These prices are the basis for all other differentials, which will be pub- lished in due course. These readjustments of maximum fixed prices will more nearly equalize the actual market conditions as reflected in prices of country hides and need not affect the prices of cattle. There have been widespread com- plaints that the small hide producer has been unable, owing to marketing con- ditions, to secure a fair price for his hides. The War Industries Board has, therefore, under consideration the appointment by permit of hide dealers, simi- lar to the system adopted in wool. Definition of maximum prices. On August 13, 1918, the chief of the hide, leather, and leather goods division of the War Industries Board issued the fol- lowing statement concerning the nature of " maximum " prices : It should be understood that maximum prices do not mean fixed prices. Maximum prices merely establish a level beyond which commodities or grades and selections of commodities can not sell, and are established to stabilize the industry in order to protect the industry, the Government, and the community at large against a runaway market. Within the Maximum prices the law of supply and demand should have its influence on trade prices of all commodities or grades and selections of com- modities. The price-fixing committee does not intend that maximum prices shall obtain unless such prices are justified by the law of supply and demand. In fixing maximum prices on leather, the price-fixing committee has and will endeavor to cover all important kinds, grades, and selections, and provides the means to fix maximum prices for all possible differentials. In all cases where differential kinds, grades, and selections present them- selves on the market and an agreement as to their relative value compared with the nearest kind, grade, or selection for which maximums have been fixed can not be arrived at to the satisfaction of buyer and seller, the facts should be referred to the hide, leather, and leather-goods division of the War Industries Board for consideration, and, if necessary, for submission to the price-fixing committee for decision. The prices established for November and December, 1918, and January, 1919, were announced on October 30, 1918. 1 The price-fixing committee of the War Industries Board has established maximum prices on packer and country hides and skins for November, Decem- ber, and January take-off. This action has been taken after several confer- ences with representatives of the producers, tanners, packers, country hide dealers, and also Government departments, which are vitally interested. The basis of prices, as compared with August, September, October maximum prices, remains unchanged, but differentials have been established to corre- spond to the poorer quality of the hides as they go into the winter season. The basic prices, as established for November, December, and January take- off are mentioned below ; November, December country hides and kips are three-quarters cent less, and January hides are a cent and one-half less than August, September, Octo- ber, and packers are 1 cent less for November, December and 2 cents less for January. All 44-cent calfskins are lowered to 40 for November, December, January, and other calf have been lowered correspondingly. Imported wool sheepskins and imported pickled sheepskins. The importer will be required to sign as follows at the time he applies for a license: " In consideration of license being granted by the War Trade Board for the importation of wool sheepskins and pickled sheepskins, we agree that we will 1 Official announcement of price-fixing committee, Oct. 30, 1918. 732 HISTORY OF PRICES DURING THE WAR. not sell them in excess of their value relative to the various kinds and selec- tions that have been established on domestic pelts by the price-fixing committee appointed by the President." HIDES AND SKINS. Below are given the regulations and schedules of fixed prices announced on the indicated dates by the various price-fixing agencies. DOMESTIC PACKER HIDES. [Regulations for take-off of May, June, and July, 1918.] Maximum prices for special reselections of packer steers and cows for belting, carriage, furniture, or harness leather purposes are 1 cent over the maximums for regular selections and grades. Beginning June 1 take-off all small packers, abattoirs, and wholesale butchers are governed by standard packer selections, and shall make the same grades, selections, and tare as standard packers make. Their maximum prices shall be relative to best standard packer maximum prices, and shall be based on Chicago freight. Chicago freight basis in States of California, Washington, Oregon, and Nevada means that the seller shall deduct f cent per pound (being three-fourths of present freight East, which is 1 cent) from the invoice, or take this amount into consideration when naming his selling price. In all other States " Chicago freight basis" means that the seller allows the buyer any excess freight on shipment over the amount which could be charged on such shipment \vere it shipped from Chicago, and if freight charged from point of shipment does not exceed that from Chicago, no allowance is made, neither is any allowance made if the freight is less than from Chicago. Transactions at a flat price in packer, abbattoir, and wholesale butcher hides of May, June, and July take-off shall be operative for the May hides only. Be- ginning June 1 the flat prices shall be adjusted to graded and selected basis, taking into consideration Chicago freight. Tanners are not permitted to buy green or slack-cured stock of butchers (ex- cepting packers, abattoirs, and wholesale butchers), unless at 20 per cent less on hides and kips and 12 per cent less on skins than the maximum green salted prices. Tanners are not permitted to buy green salted hides, kips, or skins of a butcher in less than carload lots at a higher price than 10 per cent less than than the maximum green salted prices. Packer, abattoir, and country coast (California, Oregon, Washington, and Nevada) hides shall first be offered to coast tanners having Government con- tracts, and those tanners, if they wish to buy the hides, must give decision within 48 hours after receipt of the offering. Small packer, abattoir, and wholesale butcher hides, which 'have been resalted, shall be so described when offered for sale. The maximum prices on Canadian packer hides are to correspond with do- mestics of similar merit and description ("Canadian hides" embrace those from other North American British possessions). Hawaiian hide prices are ex-store San Francisco, usual quality, and selection. For the take-off of August, September, and October the regulations were essen- tially the same as those governing the May, June, and July take-off with the following modifications : Any resalted packer, abattoir, or wholesale butcher calfskins shall sell at relatively less than the price of 44 cents, which is for first salt standard packer stock on Chicago freight basis. A go-between can not charge a brokerage to both buyer and seller. No one owning a lot of hides or skins can charge his customer a brokerage when selling same. Any tanner may pay an agent a brokerage for buying hides or skins (except on hides or skins which the agent owns himself), but such agent may not buy less than carload lots of butchers at a higher price than 10 per cent under applicable maximum prices. No brokerage shall exceed 2 per cent. The prices on packers bulls are now on a selected basis, whereas formerly they were on a flat basis. The modifications in general regulations for the November, December, and January, 1919, take-off are as follows: All first salt hides and kips of small packers, abattoirs, wholesale butchers, and also good lots of city and country butchers, of standard packer pattern, GOVERNMENT REGULATIONS RELATING TO PRICES. 733 trim and conditions, containing not over 7 per cent No. 2's for cuts, may be gov- erned by standard packer prices, Chicago freight basis. Any excess over 7 per cent No. 2's for cuts in such lots shall go at the No. 2 country price. Standard packer grading, selection, and tare shall govern. Chicago freight basis in States of California, Washington, Oregon, Nevada, Idaho, and Utah means that the seller shall deduct three-fourths of a cent per pound from the invoice, or take this amount into consideration when naming his selling price. In all other States " Chicago freight basis " means that the seller allows the buyer any excess freight on shipment over the amount which could be charged on such shipment were it shipped from Chicago, and if freight charged from point of shipment does not exceed that from Chicago, no allowance is made, neither i& nny allowance made if the freight is less than that from Chicago. The maximum price for resalted hides and kips as described in paragraph No. 1 shall be 5 per cent less than the maximum for such first salt hides and kips. The maximum prices for resalted packer, abbatoir or wholesale butcher, calf- skins shall be 5 per cent less than the maximum for such first salt calfskins. Maximum prices for special reselections of packer steers and cows for belt- ing, carriage, furniture, or harness leather purposes are 1 cent over the maxi- mums for regular selections and grades. The premium of 1 cent per pound over the maximum allowed for special reselection of packer steers and cows is only permissible as follows : (a) When native steers 60 pounds and up are graded for weights 60 to 65 pounds and 65 pounds and up. (&) No. 1 native steers 50 to 60 pounds and 60 pounds and up, free of grubs when every hide is grubbed. (c) No. 1 heavy native cows, free of grubs when every hide is grubbed. (d) No. 1 light native cows, free of grubs when every hide is grubbed. (e) Plump narrow hides picked out of native steers, 60 pounds and up. (f) Spready hides picked out of native steers, 60 pounds and up. It shall not be permissible to exceed the maximum prices by paying relatively more than same for green or slack-cured weight. DOMESTIC PACKER HIDES. Description. Stocks and take-off to and including Apr. 30, 1918. Take-off for May, June, and July. August, Septem- ber, and October. Novem- ber and Decem- ber. January, 1919. Hcavv native steers No. 1 $0.29 .30 .28 .21 .26* .25* $0.33 .34 .32 .25 .31 .30 $0.30 .31 .29 .24 .28 .27 $0.29 .30 .28 .23 .27 .26 .22 .26 .25 .22 .27 .26 .23 .22 .27 .23 <8 .26 :g .40 $0.28 .29 .27 .22 .26 .25 .21 .25 .24 .21 .26 .25 .22 .21 .26 .22 .19* .17* .25 .23i .20* .40 Heavy native steers spready No. 1 Light native steers No 1 Extreme light native steers, No. 1 Heavy butt-branded steers No 1 Light butt-branded steers No 1 Extreme light butt-branded steers, No. 1 Heavy Colorado steers No 1 .25* .5} .30 .29 .27 .26 Light" Colorado steers, 'No. 1 Extreme light Colorado steers No 1 Heavy Texas steers, No. 1 . .29 .25 .19 .18| .24 .21 .20 .18 .31 .30 .25 .25 .30 .26 .23 .21 .371 -26 .23 .44 May. .29 .24 .32 .26 .28 .27 .24 .23 .28 .24 .21* .19* .27 22* .44 Light Texas steers, No. 1 Extreme light Texas steers No 1 Branded cows, No. 1 .... Heavy native cows No 1 Light native cows, No. 1 . Native bulls. No. 1 Branded bulls No 1 All Koshers, at * cent discount. Kips, No. 1 Overweight kips, No. 1 Branded kips, No 1 Calfskins, No 1 . f Pacific coast Oregon, Washington, California: Maximum price at shipping point Steers, flat Cows, flat ,a .18 .'32 . 26 Hawaii : Honolulu Steers, 40 pounds and up Steers under 40 pounds and cows all weights. Hilo and other packer hides- Steers Flat. .30 .25 .26 .21 .29 .24 .25 .20 .29 .24 .25 .20 Cows i . . 734 HISTORY OF PRICES DURING THE WAR. % DOMESTIC COUNTRY HIDES. Rules regarding the sale of country hides for the take-off of May, June, and July, 1918: Dealers who accumulate hides, kips, and skins from various sections shall, when offering such merchandise, state where same originated and sell such mer- chandise of each section in accordance with the schedule of maximum prices applicable thereto. When various sections are sold all together as one lot the price shall be the price of the district and kind, according to the schedule, which commands the least. The maximum prices in the schedule for country domestic green salted and dry hides are based on carload lots at point of shipment. In country hides, sold on a selected basis, a hide with one grub is a grubby hide. A butt-branded hide, in hides sold on a selected basis, is a No. 2. The maximum price on black hides, special selection suitable for robes, is 23 cents flat. Weights 25 to 50 pounds (not over 41 pounds average) are one-fourth cent less than weights 25 to 45 pounds of the same kind, excepting where the price for 45 to 60 is the same price as that for 25 to 45. The designation of " mostly or practically free of grubs, but no mention for hair " is changed to " not over 15 to 20 per cent grubby." Maximum prices on Canadian country hides are to correspond with domestics of similar merit and description. (" Canadian hides " embrace those from other North American British possessions.) It is recommended that the practice of curing hides in vats be stopped. When hides are sold to be free of ticks and not over 50 per cent ticky hides are found on a beam-house selection, the buyer will accept the ticky hides at not over the applicable maximum price of ticky hides, but if more than 50 per cent ticky hides are found on the beam-house selection, the entire lot must be billed at not over the applicable maximum price for ticky hides. When sales are made of hides not over 15 to 20 per cent grubby and are found at destination to exceed 20 per cent grubby, the excess over 20 per cent up to 50 per cent shall be at the maximum price for grubby hides. If at destination the percentage of grubby is found to exceed 50 per cent, the seller shall bill the entire shipment at the maximum price for grubby hides. The following modifications occur in the regulations for the take-off of August, September, and October: Tanners are not permitted to buy green or slack-cured stock of butchers (ex- cepting packers, abattoirs, and wholesale butchers) unless at 20 per cent less on hides and kips and 12 per cent less on skins than the maximum green salted prices. Tanners are not permitted to buy green salted hides, kips, or skins of a butcher in less than carload lots at a higher price than 10 per cent less than the maximum green salted prices. All hides and skins must be bought and sold on a selected basis. The general regulations regarding the sale of country hides for November, December, and January, 1919, follow: All hides and skins must be bought and sold on selection. The actual selec- tion must be made. Dealers who accumulate hides, kips, and skins from various sections shall, when offering such merchandise, state where same originated and sell such mer- chandise of each section in accordance with the schedule of maximum prices applicable thereto. When various sections are sold all together as one lot the price shall be the price of the district and kind, according to schedule, which commands the least. The maximum price on black hides, special selections suitable for robes is 1 cent over the regular maximum for the same grade. ^No tanner is allowed to pay a brokerage or other compensation on country hides, kips, calf, goat or sheep pelts, dry or green salted, or on horsehides when the cost to the tanner, including such brokerage or other compensation, exceeds the prescribed maximum. A go-between can not charge a brokerage to GOVERNMENT REGULATIONS RELATING TO PRICES. 735 both buyer and seller. No one owning 1 a lot of hides or skins can charge his on stonier a brokerage when selling same. No dealer or tanner is allowed to buy less than carload lots within 5 per cent of maximum prices. Domestic August, September, and October take-off hides, kips, calf and goat skins, and horsehides not sold on or before December 1 shall be governed by November and December prices. Domestic November and December take-off hides, kips, calf and goat skins, and horsehides not sold on or before February 1 shall be governed by January* 1919, prices. Thirty-six thousand pounds of green salted hides and skins shall constitute minimum carload. Twenty thousand pounds dry hides and skins shall consti- tute minimum carload. It shall not be permissible to exceed the imiximum prices by paying rela- tively more than same for green or slack cured weight. All the other regulations governing the sale of country hides are similar to the provisions of the August, September, and October maximum-price schedule. DOMESTIC COUNTRY HIDES. Description. Stocks and take-off to and including Apr. 30, 1918. Take-off for Grubby, long hair, poor season. Not over 15 to 20 per cent grubby. May, June, and July. August, Septem- ber, and October. November and December. January, 1919. Best sections, such as Ohio and Middle West (including West Virginia and Pennsylvania): Extremes, 25 to 45 pounds,*No. 1 Buffs, 45 to 60 pounds No 1 JO. 19 .18 .20 .18 .18 .14 $0.21 .19 .21 .19 .19 .15 $0.22 .22 .28 $0.22 .21 .24 .23 .23 $0.22* .20* .23* .22* .22} $0.20* .19* .22* .21* .21* Heavy native steers, 60 pounds and up, No. 1 Light native steers, 50 to 60 pounds, No. 1 Heavy native cows, 60 pounds and up, No. 1 :f? Bulls all weights Bulls 60 pounds and up No 1 .17 .24 .44 3 .40 .15* .22* .40 Kips, 15 to 25 pounds No 1 .24 .27 .24 Caff, 8 to 15 pounds, city first salt, equal to Chicago No 1 Calf, outside city ' .37* .34 2.50 2.30 .38* .35 2.60 2.40 .38* -34 2.70 2-50 Calf, country, No. 1 .34 2.70 2.50 :S8 .23* .22* .22* .16* .23* .44 .34 2.70 2.50 .34 2.50 2.30 .20* .19* .an .21* .21* .40 .34 2.50 2.30 .34 2.50 2.30 19f .18} .21} .20} .20} .14} .21} .40 .34 2.50 2.30 Ripe calf, 7 to 8 pounds Deacons Kansas, Illinois, Missouri, Iowa, Ne- braska, Wisconsin, Minnesota, North and South Dakota (western North and South Dakota and Illinois not included in August, September, and October take-on): Extremes 25 to 45 pounds No 1 Buffs, 45 to 60 pounds, No 1 Heavy native steers, 60 pounds and up No 1 Light native steers, 50 to 60 pounds, No 1 Heavy native cows, 60 pounds and up, No 1 Bulls 60 pounds and up No 1 Kips 15 to 25 pounds No 1 Calf, 8 to 15 pounds, city first salt, equal to Chicago No 1 Calf country No 1 Light calf 7 to 8 pounds Deacons Southeastern hides (Kentucky to Florida and Maryland to Mississippi and Louis- iana east of Mississippi, but excluding West Virginia): Ticky Extremes 25 to 45 pounds Flat. .14 .14 .12 .14 .24 Flat. .16 .16 .14 .16 .24 Flat. .18| .18J .15 .19 .30 Buffs, 45 to 60 pounds (or 45 and up) BuUs Kips 15 to 25 pounds Calf. 15 pounds and down . . . 736 HISTORY OF PRICES DURING THE WAR. DOMESTIC COUNTRY HIDES Continued. Description. Stocks and take-off to and including Apr. 30, 1918. Take-off for Grubby, long hair, poor season. Not over 15 to 20 per cent grubby. May, June, and July. August, Septem- ber, and October. November and December. January, 1919. Southeastern hides Continued. Free of ticks- Extremes, 25 to 45 pounds Select. $0.18* .16* Flat. .13 .12 .18 .31* Select. *.!& Flat. .15 .14 .20 .31* Select. $0. 21} .211 Flat. .17 .15 .21* Buffs, 45 to 60 pounds. Native bulls Branded bulls Kips, 15 to 25 pounds Calf Kentucky, Tennessee, Maryland, North Carolina, Virginia, District of Columbia: Extremes, 25 to 45 pounds, No. 1 $0. 21* .44 .34 2.70 2.50 .19* ij :3* .31 3 $0. 20f .19| ,15f .22f .40 .30 2.50 2.30 ;S .14! : } .30 :! $0.20 .19 .15 .22 .40 .30 2.50 2.30 .18 .17 .14 .19 .37 .30 .19 .18 Buffs, 45 to 60 pounds, No. 1 Bulls, 60 pounds and up. No. 1 Kips, city and country, No. 1 Calf, 8 to 15 pounds, city first salt equal to Chicago, No. 1 Calf, country, No. 1 Light calf, 7 to 8 pounds . . . Deacons Ticky hides, kips, and skins at 2 cents per pound less than free of ticks. Florida, Alabama, Mississippi, Georgia, South Carolina, Louisiana east of Mis- sissippi River: Ticky hides- Extremes, 25 to 45 pounds or 30 to 45 pounds, No. 1.. Buffs, 45 pounds and up, No. 1 Bulls, 60 pounds and up, No. 1 Kips, 15 to 25 pounds or 15 to 30 pounds, No. 1 Calf, city first salt, No. 1 Calf, country, No. 1 Free of ticks, 2 cents per pound more. Texas, Oklahoma, Arkansas, Louisiana, west of Mississippi River: Extremes, 25 to 40 pounds or 25 to 45 pounds, No. 1 Flat. .15 .14 .13 Flat. .18 .18 .15 Flat. .19f :!? Buffs, 40 or 45 pounds and up, No. 1 ... Native bulls.... Native bulls, 60 pounds and up .17 Bulls, 60 pounds and up, No. 1 .14f .14 B randed Dulls .12 . 14 j .15 Branded bulls, 60 pounds and up ... .15 .21* .32 Kips, 15 to 25 pounds, No 1 .16* .24 .15 .12 . 19 . 21* .24 .30" .16 .16 .14 .15 .20f .30 .20 .30 Caff, 15 pound's and down, No. 1 Western parts of North and South Dakota: Country branded hides Bulls... Bulls, 60 pounds and up .15 Hides, 25 pounds and up,side, branded Hides, 25 pounds and up, unbranded (except butt branded, which are classed as No. 2) .17 .20 Kips, G. S. branded States . .20f .22f .20f Kips, 15 to 25 pounds .21 Native, unbranded hides. ,.15f .16f .19f Calf, city and country .38* Colorado, Wyoming, Montana (including Utah for May, June, July): Country branded hides .15 .12 .16 .14 .16 .15 Bulls .. Bulls, fiO pounds and tip .15 Kips, G. S., branded States Kips, 15 to 25 pounds, No. 1.. .20f .22| .20| .21 .20* .19* Native unbranded hides .15| .16J .19| Hides, 25 pounds and up, side branded .17 Hides, 25 pounds and up, unbranded (except butt branded, which are classed as No. 2)... .20 GOVERNMENT REGULATIONS RELATING TO PRICES. 737 DOMESTIC COUNTRY HIDES Continued. Description. Stocks and take-off to and including Apr. 30, 1918. Take-off tor- Grubby, long hair, poor season. Not over 15 to 20 per cent grubby. May, June, and July. August, Septem- ber, and October. November and December. January 1919. Colorado, Wyoming, Montana Con. Calf, city and country, No. 1 Flat. \ Flat. Flat. $0.38} $0.35 .17J .18| $0.35 .17 .18 Buffs, 45 pounds and up, No. 1 (no Extremes, 25 to 45 pounds, No. 1 (no California, Oregon, Washington, Nevada, Idaho, and Utah after July: $0.14 .15 $0. 15} .16* $0. 18} .20 Over 50 pounds Steers 50 pounds and up No 1 . . .23 .22 .21 .20 .17 .15 .23 .21} .14} .22} .21} .20i .i9i .!& .15j jaj Cows, 60 pounds and up, No. 1 Extremes 30 to 45 pounds, No. 1 Buffs 45 pounds and up No 1 Native bulls, 60 pounds and up, No. 1 . Bulls, branded, 60 pounds and up, No 1 .13 .12 .23 .31 .15 .14 .25 .31 .17 .15 .23 .37 Kips, 15 to 30 pounds, No. 1 Calf partly trimmed California, Nevada, and Utah cities and countries . . .36 .36 Calf, Portland, and Seattle, trimmed. Calf short trimmed .32 .32 .39 .43 Oregon, Washington, and Idaho, cities and countries .40 .40 Calf long trimmed 39 Arizona and New Mexico .15 .17 .18 Hides, weights 25 pounds and up .19 Extremes, 25 to 45 pounds No 1 !l4| .19 .18 .14 Buffs, 45 pounds and up, No. 1 Bulls, 60 pounds and up, No. 1 Native bulls , 60 pounds and up .17 Branded bulls 60 pounds and up. . . . 15 Kips, 15 to 25 pounds , No. 1 :1 J .35 :J8! .34 .20 .30 .34 Calf, 15 pounds down, No. 1 No selection for brands on Nov- ember, December, and Janu- ary, 1919, take-off. Dry hides 16 pounds and up Select. 35 Bulls two-thirds price and glue half-price after July. 7 to 16 pounds Flat. 39 Kips 7 to 16 pounds, glue out. . . . .39 .37 .37 Calf. 45 Calf , under 7 pounds, glue out .45 .21 .20* .43 3 .43 .20 .19 New England hides (Maine, Vermont, New Hampshire, Massachusetts , New York, Connecticut, Rhode Island, and Delaware and New Jersey after July): Extremes, 25 to 45 pounds, No. 1 Buffs, 45 pounds and up, No. 1 .18 .16 .17 .19 .17 .18 .21 .21 .27 60 pounds and up, No. 1 .23 .22} .21 Heavy cows .16 .17 .24 60 pounds and up, No. 1. ... . 22 . 21i .20} .14 .15 .16 60 pounds and up, No. 1 .16 .24 .18} .20 :Mj a* :H :!? Kips, including grassers, No. 1 Hawaii, Honolulu: 30 to 50 pounds .23 .24 .25 .18* .20 50 pounds and up Stocks and take-off to and in- cluding Apr. 30, 1918, 30 to 50 pounds, $0.18$. Stocks and take-off to and includ- ing Apr. 30, 1918, 50 pounds and up, $0.20. 125547 20 47 738 HISTORY OF PRICES DURING THE WAR. CALFSKINS. The maximum prices set on large city first-salt skins, outside city skins, and country skins do not apply to the Pacific coast. Other eastern trimmed calfskins not equal in all respects to New York city skins shall sell at relatively less, according to their value. Nobody shall be allowed to give the butcher a bonus because this practice Is construed to mean paying more than the maximums. DOMESTIC CALFSKINS (NOT OTHERWISE PROVIDED FOR). Description. Stocks on hand May 1 and take-off for May, June, and July. Take-off for August, Septem- ber, and October. November, December, and Jan- uary, 1919. Chicago city first-salt ca Light calf, 7 to 8 po Deacons fskins and other large city first-salt calfskins, unds $0.44 3.17 2.97 3.10 4.00 5.00 6.00 7.00 7.50 125 $0.44 3.30 3.10 3.10 4.00 5.00 6.00 7.00 7.50 125 $0.40 2.95 2.80 2.80 3.60 4.50 5.40 6.50 6.50 15 New York City trimmed calfskins and other eastern city trimmed calfskins equal in all respects to New York City: 4 to 5 pounds 5 to 7 pounds 7 to 9 pounds 9 to 12 pounds . . . 12 to 17 pounds 17 to 25 pounds Buttermilk calf 1 Per cent discount. DOMESTIC PICKLED SHEEP AND LAMB SKINS. STOCKS ON HAND MAY 1 AND TAKE-OFF FOR MAY, JUNE, AND JULY, 1918. The schedule below is for all green salted.packer and city butcher skins of strictly good take-off. All green salted country butcher and city butcher skins showing poor take-off shall be selected on the same basis, but the price shall be 3 cents per square foot less than price paid for the various grades of strictly good packer and city butcher take-off. All pickled skins to be graded according to the following specifications, the grades to be identified by numbers. Grade No. Description. Price. Bull sheep: Super heavy, measuring over 120 square feet and weighing 45 pounds and over, per dozen Heavy sheep: Heavy clear sheep, measuring over 110 square feet, per dozen Clear sheep: Sheep with clear, smooth , and sound grain, measuring over 100 square feet, containing no blind ribs, no ribby skins, and free from cockle Blind rib sheep: All sheepskins measuring over 100 square feet , having a blind rib, no ribby skins, or defective grain Ribby sheep: All other ribby sheep measuring over 75 square feet, no defective grain. No. 2 sheep: All sheep measuring over 100 feet rejected from 1, 2, 3, 4, and 5 grades, with poor and defective grain, value but not to exceed Prime Iambs: All smooth, clear lambs, 65 to 100 square feet, inclusive, strictly good pattern; no blind rib or ribby skins; no open grain skins; no torn skins; absolutely free from cockle and pinny skins Blind rib lambs: All lambs containing a blind rib, strictly good pattern; no ribby skins and no damaged grain; no torn skins and no cockle; 75 to 100 square feet Ribby lambs: Lambskins showing ribby or open grain, cockle skins, and pinholes up to 75 square feet Small lambs: All lambskins 50 to 64 square feet, rejected from Nos. 7, 8, and 9 on account of size Torn skins: All torn skins or badly cut skins over 50 feet; all heated skins , Pieces and culls: All pieces and culls and torn skins under 50 feet; all heated skins.... $0.18 .16 .14 .12 .11 .08 .15 .14 .09 Value. Value. Value. GOVERNMENT REGULATIONS RELATING TO PRICES. 739 DOMESTIC PICKLED SHEEP AND LAMB SKINS. TAKE-OFF FOR NOVEMBER, DECEMBER, AND JANUARY, 1919. The schedule below is for all green salted packer and city butcher skins of strictly good take-off. All green salted country butcher and city butcher skins showing poor take-off shall be selected on the same basis, but the price shall be 3 cents per square foot less than price paid for the various grades of strictly good packer and city butcher take-off. All pickled skins to be graded according to the following specifications, the grades to be identified by numbers: Grade No. Description. Present price. Relative value. Bull sheep: Super heavy clear sheep measuring over 120 square feet Heavy sheep: Heavy clear sheep measuring over 110 square feet Clear sheep: Sheep with clear, smooth and sound grain, measuring over 100 square feet, containing no blind ribs, no ribby skins and free from cockle. Blind rib sheep: All sheepskins measuring over 100 square feet having a blind rib; no ribby skins or defective grain; slight cockle Ribby and cockley sheep: All other ribby sheep measuring over 100 square feet; slight grain damage and all cockle; skins not suitable for grade No. 4 permitted if otherwise sound , No. 2 sheep: All sheep rejected from 1, 2, 3, 4, and 5 grades, with poor and defective grain, value but not to exceed Prime lambs: All smooth, clear, lambs 75 to 100 square feet, inclusive, strictly good pattern; no blind rib or ribby skins; no open grain skins; no torn skins; absolutely free from cockle and pinny skins Blind rib lambs: All lambs containing a blind rib, strictly good pattern; no ribby skins jdamaged grain or torn skins; slight cockle, 75 to lOOsquare feet. Ribby and cockley lambs: Lambskins showing ribby or open grain; cockle skins and pinholes, 75 to 100 square feet Small lambs: All lambskins under 75 square feet rejected from Nos. 7, 8, and 9 on account of size (relative value) Torn skins: All torn skins or badly cut skins over 60 feet; all heated skins (relative value) : Pieces and culls: All pieces and culls, and torn skins under 50 feet; all heated skins (relative value) $0.18 .16 .14 .12 .11 .08 .15 .14 SO. 18 .16 .14 .11 .09 .07 .15 .13 All wool pelts taken off before November 1, when ready for sale in the ruling as of August 1 to November 1, providing a suitable affidavit co )ickle, may be sold at prices the quantity and date of take-off is filed prior to November 5, giving inventory of all wool pelts on hand or in process November 1. Imported pickled sheep or lamb skin pelts or pickled pelts reduced from imported wool skins to be sold at their value relative to the various kinds and selections as established above. The number of square feet mentioned in the various paragraphs refers to square feet per dozen skins. butcher skins of equal take-off win receive the same All country skins showing take-off equal to city prices that are allowed to city butcher skins. HORSEHIDES. General regulations. All prices are f. o. b. shipping point, free of manes and tails. Prices vary according to the section of the country and also with the differences in sizes and widths of butts or lengths of shanks. For the November, December, and January, 1919, take-off certain modifications were made, as follows: City Tenderers would mean only such hides as are actually taken off in a rendering establishment and a sworn affidavit executed by a notary must accompany each shipment. City Tenderers that are taken off in the States of Virginia, West Virginia, Tennessee, North and South Carolina, Georgia, Alabama, Florida, Mississippi, Arkansas, Missouri, Louisiana, Oklahoma, New Mexico, and Arizona, shall be classed as Southern horsehides and shall sell for $6.25 for Nos. 1 and 2. Country horsehides from the above-men- tioned States shall not sell to exceed $6, including mules. Any dealer accumulating southern horsehides at points along the Missouri and Ohio Rivers must so designate as same and sell as such. . DOMESTIC HORSEHIDES. " Description. Stocks on hand May 1, and take-off for May, June, and July. Take-off for August, September, and October. November, December, and January, 1919. Whole horsehides: City Tenderers $8.00 Nos 1 and 2 v $7.50 $7.50 Ordinary cities and countries $6.75-7.50 $6.25- 7.00 $6.25-7.09 Southerns 6.00- 6.50 Nos 1 and 2 5.50- 6.00 6.25 6.00 1 'oni es and glues , half price . Headless hides (one that is trimmed off back of ears), 50 cents less. 740 HISTORY OF PRICES DURING THE WAR. DOMESTIC HORSEHIDES Continued. Description. Stocks on hand May 1, and take-off for May, June, and July. Take-off for August, September, and October. November, December, and January " 1919. Colts $0.25-11.00 4.75- 5.50 1.15- 1.30 1.75- 1.90 2.15-2.30 2.75- 2.90 $0.25-$1.00 4.75- 5.50 1.15- 1.30 1.75- 1.90 2. 15- 2. 30 2. 75- 2. 90 Horse fronts $5. 75-J6. 25 1.25- 1.40 1.50- 2.00 2.25-2.50 2.50- 3.15 No. 2 and headless horse fronts, 50 cents less. Butts: Green salted- Length, 15 to 18 inches . Length, 18 to 20 inches Length, 20 to 22 inches Length, 22 inches and up No. 2 and short shanks, 25 cents less. Butts of different sizes and widths at relative prices. FOREIGN WET SALTED HIDES. Regulations for the sale of stocks on hand May 1, 1918, and importations shipped up to and including July 31, 1918 : May, June, and July shipments of foreign short-haired hides taken off north of the Equator have maximum prices 10 per cent over maximum prices set. Hides on which the maximum prices are quoted weighed and delivered should, when bought on shipping weight, not cost relatively more than the New York weighed and delivered basis maximum. Australian and New Zealand hides, having been inactive here for a long time, were given nominal maximums. If possibilities of actual business arise and are brought to the attention of the hide, leather, and tanning materials section the matter will be given proper consideration. A price for New Zealand meat works has been made below. Mataderos : Kips, the weight (both range and average) varies, and may continue to do so according to custom. All prices are quoted in cents per pound. The following modifications occur in the regulations for the sale of the August, Sep- tember, and October take-off : All prices in Argentine gold are per 100 kilos f. o. b. ship, unless otherwise noted, and include export duty and lighterage, but salting on ship is for buyers' account. Copy of invoice covering each transaction will be required. No deviation may be made from these terms ; no buyer shall assume the export duty and lighterage, even though the total cost comes within the maximum price. For the take-off of November and December there were the additional regulations : A go-between may not charge a brokerage to both buyer and seller. No one owning a lot of hides or skins may charge his customer a brokerage when selling same. Brokerage on foreign cattle hides and skins shall not exceed 2 per cent. The brokerage on foreign goatskins, sheepskins, and other skins (excepting cattle hides and skins) shall not exceed 3 per cent. Shipments of dry kips under 12 pounds and dry salted kips under 15 pounds, when mixed with common dry hides (such as Bogota, Orinocos, Porto Cabellas, La Guairas, Central Americans, etc.) shall be sold at two-thirds the price of the hides, or rejected, at buyer's option. Shipments of dry kips under 14 pounds mixed with hides from Mexico, West Indies, and Peru shall be sold at two-thirds price, or rejected, at buyer's option. The following schedules give the prices fixed by the price-fixing committee of the War Industries Board : Stocks on hand May 1, 1918, and ship- ments from Description. point of origin to Remarks. and including July 31, 1918. Buenos Aires frigorifico: Steers $0.31* Shipping weight, c. i. f., New York basis. Cows .23 Do. Montevideo frigorifico: Steers 31.1 Do. Cows. . . .22 Do. Buenos Aires city matadero well taken off: Steers .26 Do. Cows... .21 Do. GOVERNMENT REGULATIONS RELATING TO PRICES. 741 Description. Stocks on hand May 1, 1918, and ship- ments from point of origin to and including July 31, 1918. Remarks. Argentine city matadero well taken off: Steers Cows Argentine country matadero and campos: Steers Cows Paraguay country matadero and campos: Steers Cows Paraguay city matadero and campos: Steers Cows Montevideo city matadero: Steers Cows Buenos Aires matadero kips Montevideo matadero kips Argentine and Uruguay saladero: Steers Cows Rio Grande saladero: Steers Cows Sao Paulo frigorifico hides Rio Janeiro hides Bahia hides Pernambuco hides Mlnas hides Venezuela frigorifico hides Colon (commissariat) hides Colombia city hides Panama hides West Indian hides Guinas hides Havanas packers' hides Havanas specials hides Havanas regular hides Mexico city packers' hides Mexico city and neighborhood hides Vera Cruz nides Vera Cruz rastro hides Puebla hides Pachuca rastro hides Orizaba hides Gueretaro hides Quadalajara hides Oaxaca hides Frontera hides Tabasco hides Campeche hides Laguna hides Northern Mexican city hides Tampico hides Progresso hides Chile (Valparaiso) hides Peru (Lima) hides China packers' (heavy) hides China packers' (light) hides Shanghai hides Queensland butchers' hides (nominal) Australian meat works' hides (nominal) New South Wales butchers' hides (nominal) . New Zealand hides (nominal) Rangoon hides (nominal) China buff alos' hides New Zealand meat works' hides: Steers Cows... .23 \2\ .21i .2lf .22 !20 .24 .25 .27 .25 .24 .22 .26 .24 .26 .18 .17 .26* Shipping weight, c. i. f.. New York basis. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Weighedand delivered New York basis. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. C. i. f . shipping weight 3 per cent shrink- age guaranteed. Do. 742 HISTORY OF PRICES DURING THE WAR. # Description. Shipments from origin August, September, and October. Shipments from origin November, December, and Jan- uary, 1919. Buenos Aires Frigoriflco: Steers $53 00 $61 00 Cows 40 00 44 00 Montevideo Frigoriflco: Steers 53.00 61.00 Cows 40 00 44 00 River Plate Frigorifico type steers... . i 4$ 50 i 58 00 River Plate Frigorifico type: 4 Cows 236.00 2 43.00 Kips 2 38.00 247.00 Caff. *38. 50 Argentina and Uruguay Saladero steers 50.00 57.50 Argentina and Uruguay Saladero cows 36.50 40.00 Frigorifico type Chilians (Valparaiso) hides 3.25 Habana and Santiago regular hides. . . 3 20 Argentine City special Matadero steers 4 2gi Argentine Citv special Matadero cows 4 2oi Buenos Aires and Montevideo Frigorifico kips, 15 to 25 pounds 49.00 Buenos Aires and Montevideo Frigorifico kips, not over 32 pounds, average 47.00 Buenos Aires and Montevideo Frigorifico bulls ... 42.00 Morris & Co., San Salvador hides (6) (') Swift & Co., Asuncion hides (6) () Montevideo City Matadero: Steers .28! Cows. . . . .22 Kips Extremes . .... <.23 Buenos Aires and extremes <.22 Rio Grande Saladero: Steers 56 50 Cows 40.00 Sao Paulo Frigorifico hides. 3 26$ 1 10 per cent shrinkage guaranteed. 2 10 per cent shrinkage. 3 Weighed and delivered at New York. 4 C. and f. New York or Boston.r Price shall be relative to regular Frigorificos. FOREIGN HORSEHIDES. Description. Take-off for November and December, 1918. Chile and Buenos Aires City G. S. hides: Not under 25 kilos average and free of ponies, colts, and glues. . (Headless and seconds, 50 cents less.) Chile and Buenos Aires Province or Campos: About 18 to 20 kilos, average and free of ponies, colts, and glues. All China dry horsehides: No. 1's, about 16 to 17 pounds, average No. 1's, about 12 to 13 pounds, average No. 1's, about lOpounds, average (No. 2's, 50 cents less.) (No. 3's, half price.) $7.50 5.75 3.50 2.75 2.50 1 C. and f., shipping weight. FOREIGN DRY HIDES. Regulations for the sale of hides included in the original regulations for May, June, and July, 1918 : May, June, and July shipments of foreign winter haired dry hides, taken off south of the Equator, have maximum prices 10 per cent over- the maximum prices set. Cordova (Argentina) dry hides include hides from Salta, Santiago del Estero, and Metan. Maximum price of inservibles shall not be over 50 per cent of the maximum price of the best selection of the same kind. Maximum price on all dry salted hides is 6 cents less than dry flint in all cases where it has been customary to sell lots running all or practically all dry sal-ted, and in such cases the hides with pickle on them are 3 cents under dry flints. In other cases the customary conditions prevail. The percentages of desechos mentioned in Argentine and Uruguay dry hides do not apply to kip and calf. Kip and calf are free of mal-desechos and are inservibles. Venezuela, Colombia, Equador, Central America, West Indies, San Domingo, Haiti, and Porto Rico kip, maximum price 1 cent per pound over maximum price for hides of the respective countries ; calf, maximum price 6 cents over the maximum price for hides of the respective countries. GOVERNMENT REGULATIONS RELATING TO PRICES. 743 Bogota Mount slaughterhouse hides accompanied by a statement sworn to before United States consul or consular agent that they are slaughterhouse hides, such state- ment to be attached to invoice to United States buyer of hides to have a maximum price of 1 cent more than the maximum price ruling on Mount Bogotas. Guayaquil slaughterhouse hides accompanied by statement sworn to before a consul or consular agent that they are slaughterhouse hides, such statement to be attached to invoice to United States buyer. Maximum price to be 33J cents for dry. All prices are quoted in cents per pound. The schedule of maximum prices on hides and skins for August, September, and Octo- ber, 1918, contains a full list of hides of this class. In general it may be said that prices vary from the lowest prices for West Indian dry hides to the highest for Cordovan dry hides.' Modifications of terms of sale for this period follow : When prices are on basis of New York weights, original selection, the certified arrival weights shall govern. When prices are on the basis of c. i. f. or c. and f. on original shipping weights, the customary shrinkage guarantees shall govern, unless otherwise specified. Cordova (Argentina) dry hides shall Include Santiago del Estero, San Luis. Salta, and Metan. Maximum price on all dry salted hides is 6 cents less than dry flint in all cases where it has been customary to sell lots running all or practically all dry salted, and in such cases the hides with pickle on them are 3 cents under dry flints. In other cases the customary conditions prevail. Maximum price of inservible hides shall not be over two-thirds of the maxi- mum price for hides of the basis selection of the same kind. Venezuela, Colombia, Equador, Central America, West Indies, San Domingo, Haiti and Porto Rico kip, maximum price 1 cent per pound over maximum price for hides of the respective countries; calf, maximum price 6 cents over the maximum price for hides of the respective countries. Prices quoted are cents per pound. The prices for November and December remain unchanged. FOREIGN DRY HIDES. Description. Stocks and shipments from origin, to and including July 31, 1918. Remarks. $0.54 .34 # .37 .46 .34 .40 .32 .36 .34 .40 # 2 .54 .30 .34 .33 .34 .36 .33 .33 I .37 .37 .30 J32| isij C. and f., New York or Boston. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. New York delivery and selection. Do! Do. Do. Do. Do. Do. Do. Buenos Aires, W. H., 30 per cent desechos: Hides Kips Calf Cordova, W. H., 15 per cent desechos: Hides. Kips Santa Fe, W. H., 15 per cent desechos: Hides Kips Corriente, W. H., 15 per cent desechos: Hides. Kips Entre Rios, W. H., 15 per cent desechos: Hides. Kips Concordia, W. H., 15 per cent desechos: Hides Kips Montevideo, W. H., 15 per cent desechos: Uicl e s Kips Can Paraguay, W. H., 15 per cent desechos: Hides t Kips Brazil, W. H./Rio Grande No. 1 selection: Hides Puerto Cabello and'La Guayra hides ........ Ambata and Latacunea. iiides . . . 744 HISTORY OF PRICES DURING THE WAR. FOREIGN DRY HIDES Continued . Description. Stocks and shipments from origin, to and including July 31, 1918. Remarks. Guayaquil cities (excepting slaughterhouse), hides . . Guatemala city, hides SO. 31J 35 1 New York delivery and selection. Guatemala country, hides .34J Do Honduras, hides 321 Do Honduras' Ampala hides 331 Do San Salvador, hides .33i Do Nicaragua hides . . . 32J Do Costa Rica hides 32i Do Panama hides . . . 32i Do Ecuador: Mount Quito hides . .33J Do Mountain hides Do Coast, hides .25J Do. Peru: Hides .32 Do Kips (flat free of glue) - 38 Do Hides trimmed .34 Do Hides untrimmed or partly trimmed 55 Do West Indian San Domingo Haiti hides . .29 Do Porto Rico hides 31 Do Mexico: Northern- Hides .33 New York freight selection as cus- Kips. .39 tomary. Do Calf (free of glue) .45 Flat New York basi^ Pueblo, San Geronimo, and west coast, hides .... .54i To Chihuahua hides .... .34 New York freight selection as cus- Java, shaved, best quality and selection: About 1 to 6 pounds (about 2 kilos average) About 6 to 10 pounds (about 3t kilos average) . . . About 10 to 15 pounds (about 6 kilos average) . . . Rangoon, arsenicated: Calf .75 .68 .62 .40 tomary. r.andf. Do. Do. Do. Calf 6 to 10 pounds average .36 Do Calf, 12 to 16 pounds average. .32 Do. Dry' salted 16 to 20 poundsaverage .26 Do Cape of Good Hope and South Africa: Best selection .34 Do Best selection, dry salted .32 Do. Nigeria: Hides, first selection r .26 Do. Kips, excluding glue .26 Flat c and f. Calf, excluding glue . ^ .31 Do. Madagascar: Best selection .30 C. and f. Dry salted . . .20 Do. Mombassa: Hides and kips.. .30 Do. Calf. .35 Do Abyssinian: Hides and kips.. .30 Do. Calf .35 Do Soudan: Hides and kips .28 Do Calf .33 Do. BUFFALOES. East India, winter season: Commissariat, slaughters 13d Do. Dacca slaughters . . 8d Do Rangoon, winter season: First selection, dry.. $0.20 Do. Dry salted .16 Do Trimmed and shaved .33 Do. Java, best season: Trimmed and shaved Y .36 C. i. f. and war risk for first selection. China, winter season: Trimmed and shaved .... .35 Do. Arsenicated . .21 Do. Dry salted . . .17 Do China, Hongkong: Shaved .31 Do Dry .17 Do Dry salted .14 Do. GOVERNMENT REGULATIONS RELATING TO PRICES. FOREIGN DRY HIDES-Continued. 745 Description. Shipment from origin, August, Septem- ber, and October. Remarks. \ BUFFALOES. West Indies: Santo Domingo and Haiti Dry flint hides $0.29 New York delivery and selection. Dry salted flat .25 Do. Cordova, W. H., 15 per cent desechos: Hides .37 C. and f., New York or Boston. Kips .46 Do. Description. Stocks and shipments from origin, to and including July 31, 1918. Ito6 pounds. 6 to 10 pounds. 10 to 14 pounds. 14 to 20 pounds. 20 to 24 pounds. 24 to 30 pounds. 30 and up pounds. China: Hankow, B. S. W. H, (2's 6 cents less) Shanghai, B. S. W. H. (2's 6 cents less). . . Hongkong original run flat $0.55 .54 .36 .45 .45 .45 SO. 48 .47 .33 .37 .37 .37 $0.48 .47 .33 .37 .37 .37 $0.46 .45 .32 .35 .35 .35 $0. 44 .43 .31 .33 .33 .33 $0.42 .41 SO. 40 .39 Thibet, B. S. W. H. (2's 6 cents less) .30 .30 .30 .30 .30 .30 Xeuchwang, B. S. W. H. (2's 6 cents less) Mongolia, B . S. W. H. (2's 6-cents less) . . . Above prices are c. i. f. and war risk. Shipment from origin, August, September, October. 1-6 pounds. 6-10 pounds. 10-14 pounds. 14-20 pounds. 20-24 pounds. 24-30 pounds. 30-up. pounds. China: Hankow, B. S. W. H. (2's 6 cents less>. . . . Shanghai B. S. W. H., same trim as Han- kow (2's 6 cents less) $0.53 .52 .36 .69 .45 $0.48 .47 .33 .62 .37 $0.48 .47 .33 .56 .37 $0.46 .45 .32 $0.44 .43 .31 $0.42 .41 $0.40 Hongkong original run, flat ;::::;;: Canton shaved Tibet, Neuchwang, Mongolia, B. S. W. H. ( 2's 6 cents less)... .35 .33 .30 .30 China prices are c. and f. New fork. CABRETTA AND SHEEPSKINS. Stocks on hand May 1, 1918, and ship- Description. ments from Remarks. origin, to and includ- Brazils $1.20 Per piece, landed basis New York. Punjabs: 700 pounds average for 500 skins 7.00 Per dozen. Eacn 100 pound additional .50 Per dozen more. China sheepskins" basis 2J pounds average 15.00 Per dozen. Java sheepskins, basis 1 pounds average 11.00 Do. West Indians 1 pound to 1 J pounds .65-1.00 Flat, per piece. Peruvian slats f pound to 1 pound 2. 50-4. 00 Per dozen, according to quality and weight. Cape Town glovers, basis first heavies 2.20 Per skin. (Lower grades and weights in proportion.) 746 HISTORY OF PRICES DURING THE WAR. CABRETTA AND SHEEPSKINS Continue:!. Description. Stocks on hand May 1, 1918, and ship- ments from origin, to and includ- ing July 31, 1918. Remarks. Spanish lambskins: Basis, first wool, 12 to 13 kilos, Catalonian primes $21 00 Per dozen (Other weights and grades in proportion.) Oriental lambs, basis 95 to 100 kilos 13.50 Do Black-head Mocha sheepskins: Average No. 1, 200 to 210 pounds 2.00 Per skin Average No. 1, 170 pounds 1 70 Do Average No. 1, 140 pounds 1.40 Do. Average No. 1, 125 pounds 1 15 Do Average No. 1, 110 pounds 1.00 Do. Average No. 1, 95 pounds 85 Do (All seconds at two-thirds price.) White heads: Average No. 1, 225 pounds 1 60 Do Average No. 1, 179 to 180 pounds 1 15 Do Average No. 1, 140 to 150 pounds 90 Do Average No. 1 , 120 to 125 pounds . . 65 Do. (All seconds at one-half price.) Mombassa sheepskins; No. 1, 150 to 160 pounds average. (Seconds at price.) Mombassa shade dried .80 1 00 Per skin. Do (Seconds at price.) Red Head Mocha sheepskins: Average No. 1, 160 to 170 pounds . ... 90 Do Average No. 1, 140 to 150 pounds 70 Do Average No. 1, 115 to 120 pounds .40 Do. (Seconds at J price.) Description. Shipments from point of origin, August, September and October. Remarks. Brazil, banded, bans, over 2 pounds, heavies, regu- lar primes. Punjab: Sheep pelts, 400 pounds average for 500 skins Wool sneep, 1,500 pounds average for 500 skins... Madras and southern India sheep: Basis, 85 per cent primes; 15 per cent seconds, average about 185 to 200 pounds. West Indies sheepskins; basis J tol$ pounds average. Spanish lambskins, first wool, second wool, 13 to 14 kilos: Basis, Catalonian primes SI. 30 7.00 13.50 11.00 $0.65-1.00 21.00 Each. Per dozen. Do. Do. Each. Per dozen. 18 to 19 kilos . . . 23 00 Do 13 to 14 kilos 21 00 Do 8 to 9 kilos 19 00 Do. Macedonian lambskins: Average about 95 to 100 kilos 13.00 Do. 80 to 90 kilos . 12.25 Do. 70 to 80 kilos 11.75 Do. 60 to 70 kilos 11 00 Do. 50 to 60 kilos q 00 Do Grecian lambskins: Average about 95 to 100 kilos 14.00 Do. 80 to 90 kilos 13 25 Do 70 to 80 kilos 12.75 Do. 60 to 70 kilos 12 00 Do 50 to 60 kilos JO 00 Do. Prime Macedonian and Grecian sheeo^lrrs ar<* Kavlaks, average over 140 kilos. 18.00 Do. GOVERNMENT REGULATIONS RELATING TO PRICES. 747 GOATSKINS. The prices on goatskins, as given in the following schedule of May 1, 1918, were con- tinued in force through December, 1918, without change : Angoras, straight ------------------------------------------------- $0. 42J Angoras, light crossbred -------------------- - ----------------------- .50 New Mexico, No. 1 ________________________________________________ .75 Navaho, No. 1 ______________________________________ - ------------- .85 - (No. 2's, kids and bulls, two-thirds price.) Domestic skins ___________________________________________________ v 12. 00-15. 00 1 18. 00 a 1. 65 2 2. 00 2 2. 25 a 1. 75 a . 85 *.65 a . 65 1.00 . 55 . 50 .45 . 43 1. 30 * . 05 Packers Mexico : Oaxacas, flat ($0.90 per pound) Pueblas, flat ($0.85 per pound) Matanzas, flat ($0.80 per pound) Frontiers, selected ($0.75 per pound) West Indies : Jamaicas, flat Porto Plata, flat _______________ - Haitians, flat Colombia, Bogoto, selected Venezuela : Barquisemetas, flat Coros, flat Rio Hache, flat Islands, flat Maracaibos, flat La Guayras, flat Brazil : Brazils For 110 average New York, with specials Heavies, 20 per cent less than firsts. Bulls, light and seconds, two-thirds price of firsts. Bahias, on basis of 2| cents less per pound. Argentines : Cordobas (50 per cent Matedores and 50 per cent Campos), 91 to 10 K., $0.85 for firsts ; seconds, two-thirds price. Santiago, same price as Cordobas. Metans . 9 to 10 K, 10 cents less ............................................................... 75 San Luis . 10 K, lOcentsless .................................................................... 75 Saltas, 10 K ........................... . ........................................................ 70 Bahia Blancas , 11 to 12 K ...................................................................... 60 Pampas( Buenos Aires Provinces) , 11 to 12 K .................................................. 62J Cordobas kidskin .................................................................. per dozen. . 3. 50 Seconds. two-third price. Chilians: Chile kidskins .......................................................................... do ... Seconds, two-thirds price. Peru: Paytas, dry salted, selected basis ................................................. per pound. Peruvian goats (flint dry) flat basis .................................................... do Piscos,dry salted, selected basis ................... ., .................................... do Bolivia: Bolivians , flat basis ..................................................................... do Africa: North Africans, no importations. Egypt, no importations . Capetown, basis prime extra lights ................................ .. ................... do Algoah Bay, basis prime extralights ................................................... do Kafir, basis prime extra lights .................. ........................................ do Nigerian .......................................................................... per dozen. All primes free kid s . Weight, pounds, $1.30 per skin, lower qualities proportionately cheaper. 3. 50 . 65 55 55 45 70 65 55 14. 00 Firsts. Seconds. Thirds. Average pounds. Per dozen. Abyssinians flint dry flat . Per cent. 60 Per cent. 30 Per cent. 10 110 $12.00 60 30 10 110 12.50 Dunkali' flat 10 75 15 90 9.00 Berherah flat 50 40 10 110 13.00 Somali flat 10 75 15 95 9.00 Hodeidahs flat 60 30 10 120 11.00 Gizan and Gumfittah flat 60 30 10 120 11.00 60 30 10 115 10.50 A dan butchers flat ( 5 ) ( 5 ) 10 170 18.00 25 60 15 110 12.50 1 Per dozen, flat. 2 Average per pound. 8 Per pound. Less. B All firsts. 748 HISTORY OF PRICES DURING THE WAR. Spain : Goatos and cheverettes dozen__ $30. 00 Greece : Macedonian goats, selected basis do 17. 50 Macedonian cheverettes, selected basis do 14 00 India : Amritzar, basis 1,000 pounds for 500 skins ; 85 per cent firsts, 15 per cent seconds dozen 13. 00 For each extra 100 pounds, per 500 skins additional do__ 1. 00 Wet salted Northwest : 40 inches and upward piece__ 1 38 36 to 40 inches __do__ 1. 33 33 to 36 inches __do_ 1 23 28 to 33 inches do 1. 13 Seconds, 70 per cent of price of firsts. Dry salted : Patnas, about 550 average for 500 skins dozen 11. 00 Mpzufferpores, about 550 average for 500 skins do 12. 00 Dinajpores, about 550 average for 500 skins do 11. 75 Daccas. about 550 average for 500 skins do 13. 00 The above dry salted are all about 50 per cent primes, 30 per cent seconds, 20 per cent thirds. Calcutta, killed, about 675 pounds average dozen 15. 50 Kushitas, about 675 pounds average for 500 skins do 17. 00 Dry salted Calcutta and Kushitas are about 75 per cent primes, 15 per cent seconds, 10 per cent thirds. Northwests, about 900 pounds average for 500 skins, 60 per cent primes, 30 per cent seconds, 10 per cent thirds dozen 15.00 Madras, 185 pounds average, flat do 14. 50 Coconada, 190 pounds average, flat do 15. 00 Javas : Javas, 82 pounds basis primes do 15. 00 China : Chowchings, short hair, 19 pounds per dozen, average, inclusive, 30 per cent seconds dozen 19.00 Chowchings, medium hair, 22 pounds per dozen, average, inclusive, 30 per cent seconds dezen 16. 50 Chowchings, long hair, 27 pounds per dozen, average, inclusive, 30 per cent seconds dozen 16. 00 Shuntifus, $1 per dozen less than Chowchings. Patoingfu, $2 per dozen less than Chowchings. Tientsins,$3 per dozen less than Chowchings. Short hair descriptions may include 15 to 20 per cent medium hair. Seconds. Per dozen. Szechuens, 17 pounds average, inclusive Wanshiens, 19 pounds average, inclusive Honans, 18 pounds average, inclusive Clear River, 18 pounds average, inclusive Mud cured rivers, 21 pounds average, inclusive. Per cent. 25 25 25 25 30 S27. 50 21.00 14.50 12.00 8.00 DEER AND ELK SKINS. The original schedule for deer and elk skins, effective May 1, 1918, was maintained through December, 1918, with a single exception, noted below : Flat. Guatemales $0. 75 San Salvador . 75 Honduras, trimmed . 70 Honduras, untrimmed . 65 Costa Ricas . 70 Central Americans . 70 Angosturas . 38 La Guayras . 35 Maracaibo . 29 Rio Hache .31 Sisals . 65 Mexicans . 55 Flat. Tuxpans $0. 60 Matamoras . 50 Paras . 55 Maranhams < . 70 Oaxacas ; . 85 Panamas . 65 Barquismetos . 35 Porto Cabellos . 35 West Coast . 70 Chinas, not over 15 per cent seconds- . 95 Singapore elks . 45 Macassar elks .42 When sold on a selected basis, the maximum prices shall be 10 per cent above the maximum prices set above. Domestic deerskins from $1 to $3.50 per piece, according to size, section, and quality. Take-off for August, September, and October on Chinas, 1 to 11 pounds, not over 15 per cent ; seconds, $1.05. APPENDIX. SUPPLEMENTARY PRICES AND REGULATIONS ON HIDES AND SKINS ISSUED ON JULY 1, 1918. The maximum price on standard packer kid skins, measuring pbout two-thirds the size of the goatskins is two-thirds the price of the goatskins. The maximum price on butcher and country kid skins is $4 per dozen. GOVERNMENT REGULATIONS RELATING TO PRICES. 749 The maximum price on Sumatra buffalo hides is- 33 cents for trimmed and shaved, 31 cents on untrimmed and shaved. The maximum price in Tapuchula, Mexico, wet salt hides is 22J cents. The maximum prices on Sumatra cowhides, shaved, are as follows : Skippers own preparation. Country and untrimmed : About 1 to 6 pounds about 2 kilos average, 65 cents c. and f , cents 70 About 6 to 10 pounds about 3| kilos average, 58 cents c. and f do 63 About 10 to 15 pounds about 6 kilos average, 52 cents c. and f do 57 The maximum price on Cuban wet salt hides is 19 cents. The maximum price of Tuxpan, Mexico, wet salt hides is 21 J cents. The maximum price on Canton, China, shaved dry hides is as follows : One to 6 pounds, 69 cents ; 6 to 10 pounds, 62 cents ; 10 to 15 pourds, 56 cents ; c. i. f. and war risk New York basis. The maximum price on China dry donkey hides is $2 each c. i. f. and war risk, New York basis. The maximum price on Mendez, Brazil, frigoriflco hides is 20 cents weighed ex dock New York. Delaware and New Jersey are classed with the New England States. The maximum price on Madras pickled goatskins is $15.50 per dozen. The maximum price on Madras extra large goatskins about 27 pounds average is $16.50. The maximum price on Argentine wet salt Matadero and Campo kip is 20 cents. The maximum price on Courland Scharren dry calf is $1.20 per pound ; Courland slaughter dry calf is $1.10 per pound ; Wiatka dry calf is $1.07 per pound ; Palloy dry calf is 45 cents per pound. The maximum price on Mexican wet salt kips is the same price as the maximum on the same kind of hides. The maximum price on Tampico, Mexico, dry hides is 321 cents. The maximum price on Madras sheepskins, basis 85 per cent primes and 15 per cent seconds, average about 190 to 200 pounds, is $11. The maximum prices on Hulo (Hawaiian Islands) packer steers, 27 cents; cows, 22 cents, ex store San Francisco. The maximum price on ducca cowhides 9 to 12 pounds and 12 to 15 pounds is 26 cents c. f. s. The maximum price on China wet salt buffaloes is 13 cents. The maximum price on Habana packer hides of superior take-off and preparation Is 1 cent per pound more than other Habana packer hides. The price on Chicago and other large city first-salt calfskins applies to all other first- salt untrimmed skins in carload lots, equal in all respects to Chicago skins. Other first-salt skins of inferior quality, take-off, and preparation shall sell at relatively less. Any resalted packer, abattoir, or wholesale butcher calfskins shall sell at relatively less than the price of 44 cents, which is for first-salt standard packer stock on Chicago freight basis. The maximum price on River Tlata frigorifico-type kips and extremes is 26 cents and freight, shrinkage guaranteed not to exceed 10 per cent, to Now York or Boston. A go-between can not charge a brokerage to both buyer and seller. No one owing a lot of hides or skins can charge his customer a brokerage when selling same. Any tanner may pay an agent a brokerage for buying hides or skins (except on hides or skins which the agent owns himself), but such agent may not buy less than carload lots of butchers at a higher price than 10 per cent under applicable maximum prices. No brokerage shall exceed 2 per cent. Small packer, abattoir, and wholesale butcher price light calf (7 to 8 pounds) and deacons are governed by the packer calf price of 44 cents for first-salt stock, on Chi- cago freight basis, and taking into consideration any inferiority as to take-off and salting. BLACK HARNESS LEATHER. Harness leather. The prices of black harness leather were fixed by the price- fixing committee on June 25, 1918, subject to revision November 1, 1918, or before that date, contingent upon possible changes in the prices of hides and skins. The prices in the schedule below were later extended until November 20, 1918, when price fixing was here ended. BLACK HARNESS LEATHERS. (June 25, 1918.) Per pound. Grade A, or first selection $0. 70 Grade B, or second selection Grade C, or third selection 6( First selection, butt brands Second selection, butt brands 66 750 HISTORY OF PEICES DURING THE WAR. SOLE AND BELTING LEATHER. (Aug. 9, 1918.) Provisions for the control of prices and output of sole and belting leather became effective August 9, 1918, and were administered by the hide and leather section of the War Industries Board. These regulations and prices, which are given below, were extended on October 8, 1918, until December 8, 1918, when they were removed. REGULATIONS. These maximum prices on grades are based on maximum prices of No. 2 selection as basis for tannery run. When sold in selections the assortment value of the total selections shall not exceed the maximum price of the No. 2 or tannery run. In Texas scoured or bloom oak sole leather, classification No. 3, the tannery run maximum price is 87 cents, and when sold in selections the assortment value of the four selections shall not exceed the maximum tannery-run price of 87 cents. These prices apply to all sales made by tanners or by their representatives or by jobbers, but do not apply to sales made by retail dealers or by the so- called findings trade. DIFFERENTIALS. , Tanners who claim preferential differentials on account of low yield of leather will make application for same to the hide, leather, and leather goods division of the War Industries Board. The conditions upon which they will be given this advantage are: That their yield shall be at least seven points under the yield used as a factor in determining maximum prices on the same season's hides and that a sworn statement shall be rendered to this effect and shall be the result of at least six months' operation. That they will make consecutive monthly reports to the hide, leather, and leather goods division of the War Industries Board of their yield. Every side of subdivision of these sides shall be stamped with the name of the tannage. Tanneries producing leather of such high yield as to exceed the arbitrary factor of yield used in figuring maximum prices on the same season's hides by more than seven points shall be subject to a differential reduction, such reduc- tion to be figured on the excess yield beyond or above the seven-point allow- ance. Every side or subdivision of these sides shall be stamped with the name of the tannage. When requested by the hide, leather, and leather goods division of the War Industries Board tanners will make monthly reports of their yields, stating classes and seasons of hides. PRICE OF OFFAL. These maximum prices are established for three months and at a time when all offal is a burden on the market. At the expiration of the three months, if the offal has found an outlet and established a higher market level, this addi- tional return in value to tanners will be reflected in the readjustment of a new schedule three months hence. High-grade heavy packer oak belting butts, made from packer heavy native and er , light native steers and heavy native cows (based on yield of 65 per cent) : No. 1 $0. 96 No. 2 . 94 No. 3 . 86 High-grade light packer oak belting butts under 20 pounds, made from light native cows and extreme light native steers (based on yield of 62 per cent) : No. 1 . 91 No. 2 . 89 No. 3__ .81 GOVERNMENT REGULATIONS RELATING TO PRICES. 751 High-grade Texas scoured or bloom oak sole leather, made from packej heavy and fight Texas steers (based on yield of 83 per cent) : Tan run sides $0. 571 Tan run bends 7 X sides . 59Jj A sides 58J B sides 57J C sides 56i X bends . 90 A bends . e B bends C bends 84 High-grade heavy or overweight oak sole leather, made from packer butt brands and Colorado steers, oak trim (based on yield of 78 per cent) : No 1 sides .61 No. 2 sides .59 No. 3 sides 55 No. 1 backs .77 No. 2 backs .75 No. 3 backs .71 No. 1 bends 9C No. 2 bends 88 No. 3 bends 84 High grade heavy or overweight union sole leather made from packer butt brand and Colorado steers and frigorifico steers, union trim (based on yield of 80 per cent) : No. 1 sides 0.59 No. 2 sides .57 No. 3 sides .53 No. 1 backs .75 No. 2 backs .73 No. 3 backs .69 No. 1 bends'. .88 No. 2 bends .86 No. 3 bends .82 High grade light or middleweight oak sole leather made from packer branded cows, oak trim (based on yield of 75 per cent) : No. 1 sides .56 No. 2 sides .54 No. C sides .503 No. 1 backs .72" No. 2 backs .70 No. 3 backs .66 High grade light or middleweight oak sole leather, union trim based on yield of 75 per cent) : No. 1 sides - 56| No. 2 sides . 54J No. 3 sides . 50J No. 1 backs .71 No. 2 backs .69 No. 3 backs .65 Country or domestic hides, heavy or overweight oak or union leather, made from steers or heavy cows (based on yield of 68 per cent) : No. 1 sides .53 No. 2 sides - ^ .51 No. 3 sides .47 Country or domestic middleweight oak or union leather made fn:m cows or ex- treme light steers (based on yield of 68 per cent) : No. 1 sides .50 No. 2 sides .48 No. 3 sides .44 High grade heavy or overweight hemlock leather made from packer heavy (based on yield of 90^per cent) : No. 1 sides . 56 No. 2 sides .54 No. 3 sides .50 High grade middleweight hemlock sole leather made from extreme Texas and branded cows (based on yield of 80 per cent) : No. 1 sides .54 No. 2 sides .52 No. 3 sides .48 Country or domestic hide, heavy or overweight hemlock, made from steers or heavy cows (based on yield of 80 per cent) : No. 1 sides .48 No. 2 sides -47 No. 3 sides .43 Country or domestic hemlock made from cows or extreme light steers (based on yield of 80 per cent) : No. 1 sides .47 No. 2 sides .45 No. 3 sides .42 High grade dry hide heavy overweight and middleweight hemlock made from Buenos Aires hides (based on yield of 170 per cent) : Tan-run sides __ 43 Buffalo dry hide overweight (based on yield of 190 per cent) : Ton-run sides . 34 7. LUMBER. The first step in the control of lumber prices was taken in 1917 with the in- stitution by the lumber committee of the Council of National Defense, of ** emergency bureaus," semiofficial Government agents in the purchase of Gov- ernment lumber requirements. 1 The general regulations concerning lumber prices and the regulations and schedules pertaining to individual species appear below in the following order : General regulations, birch logs, black walnut, cypress and tupelo, Douglas fir, mahogany lumber, New England spruce, North Carolina pine, Pennsylvania hem- lock, southern or yellow pine, western spruce. GENERAL REGULATIONS. Notice as to Government lumber prices, March 30, 1918. All lumber manu- facturers and dealers are hereby notified that the present Government yellow or southern pine lumber prices for mill shipments from the Southern States are to remain in effect until June 15, 1918, and that in no case must orders for lum- ber for mill shipments be accepted, sold, or invoiced to the Government or Gov- ernment contractor, having a cost-plus job, either by manufacturers or dealers, at any greater price per item than the maximum' price fixed by the Government list. 2 Public announcement regarding lumber made by the price-fixing committee of the War Industries Board, June 11, 1918. The price-fixing committee of the War Industries Board has fixed maximum item prices for northwestern fir logs and lumber and for southern pine lumber. The detailed schedules of these item prices have been approved by the President and publicly announced. The prices established are manufacturers' f. o. b. mill prices for shipment at the mills, the same for all purchasers. They are maxim-urn prices, not fixed prices, to hold for a period of 90 days from June 15. No regulation has been made with regard to transactions other than sales by manufacturers at the schedule prices. Wholesale dealers, retail dealers, and all others are entitled to buy on the basis of these f. o. b. mill prices. As yet no regulation of rates or profits has been made with regard to sales either by wholesalers or retailers to consumers. The War Industries Board believes that sales by all dealers should be made at reasonable prices based on a strictly rea- sonable profit above the fixed schedule rates. The board is confident that the trade will conform to the spirit of the existing regulations and the board will 1 These bureaus and dates of organization were as follows : Southern pine emergency bureau, May, 1917 ; North Carolina pine emergency bureau, May, 1917 ; Georgia-Florida yellow pine emergency bureau, June, 1917 ; New England spruce emergency bureau, June, 1917 ; Douglas fir emergency bureau (later organized as the fir production board), October, 1917 ; Northern hardwood emergency bureau, Nov. 24, 1917 ; Central Pennsylvania hem- lock emergency bureau, Apr. 6, 1918 ; Cypress emergency bureau. 2 Price-Fixing Committee Minute Book II, Mar. 30, 1918. 752 GOVERNMENT REGULATIONS RELATING TO PRICES. 753 not proceed to further regulation or restriction of dealers' prices until their conduct of business indicates that such action is necessary. Retail lumber prices. Occasional purchases of lumber from retail lumber dealers to meet emergency needs became necessary for certain branches of the Government, and in order to insure a fair and reasonable price a fixed maxi- mum retail price was established for Douglas fir and" southern yellow pine lumber for the period from June 1, 1918, to July 31, 1918. These prices applied to emergency purchases of lumber from retail lumber dealers in the cities and vicinities of Boston, New York, Newark, N. J., Philadelphia, and Baltimore. The agreement was That the dealers be allowed for handling charges and profit the following .advance prices over and above the Government's delivered prices f. o. b. cars in the districts mentioned, including switching charges, if any : To the dealers in the cities and vicinities of Boston, New York City, Newark, N. J., $12.50 per 1,000 feet b. m. ; to the dealers in the cities and vicinities of Philadelphia and Baltimore, $11.50 per 1,000 feet b. m. These prices in all districts to be based on the Government department re- placing the lumber to the dealers within 90 days from date of replacement order at the Government's manufacturers' prices delivered f. o. b. cars in the districts mentioned, provided the dealers prefer to have the lumber replaced, or a cash settlement on the same basis if they prefer not to have the lumber replaced. These prices to the Government for the lumber received from the retail dealers in all cases to be f. o. b. dealers' wagons, trucks, or railroad cars in dealers' yards. Working. Where dressing or ripping is necessary to obtain the items de- sired by the Government, charges for same shall not exceed the following: Dressing one, two, or four sides, $4 per 1,000 feet b. m. ; ripping or resawing (first cut), $4 per 1,000 feet b. m. ; ripping or resawing (second cut), $2 per 1.000 feet b. m. Teaming. When lumber is hauled by retail yards the charges for same shall not exceed the charges following: By auto truck, $2.50 per 1,000 feet first mile, with allowance of 35 cents per 1,000 each additional mile ; by team, $1.75 per 1,000 feet first mile, with allowance of 25 cents per 1,000 each additional mile. In the event the Government does not replace the lumber taken from local yards within the time stated above it is understood that the retailer may refuse to accept lumber replacement, and settlement for lumber taken should be made on basis of the following allowances in addition to the original replacement price : $6 per 1,000 feet on all short leaf ; $6 per 1,000 feet on all long leaf under 12 inches ; $10 per 1,000 feet on all long leaf 12 inches and over. In the matter of replacing lumber taken from retail yards under the above agreement it is understood that the lumber is to be replaced in the same sizes or easier sizes than the sizes taken from the retail dealers; that is to say, if boards are taken from the retail dealers, boards are to be replaced ; or if fram- ing lumber is taken, framing lumber is to be replaced in sizes no larger than the sizes taken. For the present, at least, it is understood that all lumber replacements will come from the districts of Alabama-Mississippi territory, southern pine terri- tory, Georgia-Florida territory, and from the first district in the Pacific North- west. If North Carolina pine is taken from the retail dealers' yards, it may or can be replaced by comparable grade from the shortleaf territory of the above-mentioned producing districts. All requests for replacement by the retail dealers should be accompanied by the signature of the receiving Government officer or agent, that the director of lumber may know in replacing this lumber that the sizes and quantities asked for are justified, and should be submitted to the Government bureau in Washington through which the original authority for the original purchase by the Government was authorized. It must be distinctly understood that the above prices: referred to are only effective in the cities and vicinities above mentioned, where the costs of handling and doing business have been investigated by the Federal Trade Commission. 125547 20 48 754 HISTORY OF PRICES DURING THE WAR. All departments of the Army and Navy and the Emergency Fleet Corpora- tion agree immediately to put maximum prices into effect, and all purchasing officers of all departments are to be notified immediately of the above decision. 1 Notice as to application of prices for soft wood lumber affected by rulings of the price-fixing committee of the War Industries Board. All lumber manu- facturers and dealers are hereby notified that the present prices for soft lumber for mill shipment as heretofore established or which may hereafter be established by the price-fixing committee of the War Industries Board shall remain in effect during the period of time prescribed and that in no case must orders for lumber for mill shipment or reconsignment thereof be accepted, sold, or invoiced to any purchaser by either a manufacturer, dealer, or other person at a greater price per item than the maximum price fixed by the price-fixing committee of the War Industries Board, except where delivered prices are made to purchasers' destination points, in which cases freight may be added on the basis of standard weights for each item so priced, also except as to orders received or contracts made prior to the date of ruling of the price- fixing committee governing the producing territory involved. The price-fixing committee has taken the position that cost figures presented by the Federal Trade Commission on which the price-fixing committee .has based its ruling already include sales service to purchaser. So, in fact, in paying the price fixed in the ruling, the purchaser has already paid for this sales service. The purchaser or public should not be asked to pay any addi- tional price to any vendor offering mill shipments. 2 The wholesale lumber dealers of the country protested against this ruling, saying that the prices as fixed did not allow any compensation or profit to them in the sale and distribution of lumber and that the strict application of the ruling would destroy a selling and distributing agency which had long been a recognised factor in the lumber trade. On July 23 the price-fixing com- mittee, after consideration of arguments submitted by the wholesale lumber dealers, refused to modify its ruling of July. 3 Statement on southern pine prices on Government orders. Settlement of Question of price with southern pine emerycnci/ Intrenu as to orders on hand prior to midniffht, June Jj, 1918. On all Government orders on which the price is fixed by the Government the price in effect on the date of shipment rather than the price in effect on the date the order is placed shall control, unless expressly stipulated to the contrary at the time the price is fixed, or unless a different rule is adopted by mutual agreement between the Government and the manufacturer. CONDITION TO THE RULE. As a condition to this rule, it must be understood, however, that the shipper will exercise due diligence in an effort to prepare and move the items covered by such order, and that tho southern pine emergency bureau will exercise its best efforts in inducing the members with whom orders are placed to send shipments forward as promptly as possible; provided that if it is established that due diligence has not been used by any mill, the price shall be the lower price applying in the price-fixing periods involved. ORDERS UNSHIPPED. All orders for the Government unshipped on June 14, 1918, shall take the price prevailing at the time such orders were placed with the bureau ; provided that this rule shall not be construed to apply to orders placed prior to June 14, 1918, for shipment after September 14, 1918. All restrictions as to deferred shipments are permitted to be removed. If not permitted by car builders to be shipped by September 1.4, the price applying .at the time of delivery shall apply.* Procedure for distribution of southern or yellow pine lumber. At a hearing of the manufacturers of southern or yellow-pine lumber before the price-fixing 1 Official Bulletin, June 19, 1918. 2 Price-Fixing Committee Minute Book V. July 1, 1918 : Official Bulletin, July 5, 1918. 3 Price-Fixing Committee Minute Book VI, July 15, 1918. 1 Price-Fixing Committee Minute Book VI, July 17, 1918 ; Official Bulletin, July 19, 1918. GOVERNMENT REGULATIONS RELATING TO PRICES. 755 committee of the War Industries Board on September 23, 1918, it was agreed that the ruling of June 14, 1918, fixing maximum f. o. b. mill prices on southern or yellow-pine lumber should remain in effect from midnight September 23 to midnight December 23, 1918, inclusive. It was also decided by the price-fixing committee and the representatives of Government departments that inclusive within these dates timber prices on the lumber schedule should apply to all shipments to Government departments, including the Emergency Fleet Corporation. It was decided by the price-fixing committee that the interpretation of the terms of sale should be as follows : The usual trade practices shall continue, including 2 per cent off for cash within 10 days from date of invoice to be applied to United States Government purchases as well as all others (except in special cases where former trade practice has well established net cash terms and except as to export shipments to foreign countries). In transactions where purchasers do not avail them- selves of cash discounts the terms shall be 60 days net from date of invoice, and in such transactions the accounts may be converted into trade acceptances which do not bear interest before maturity. - As regards the requirement by the Railroad Administration that shippers shall bulkhead the ends of open freight cars, it was decided that an extra charge for lumber and labor for constructing bulkheads may be made by the shipper and invoiced to consignee, irrespective of whether or not for Govern- ment or civilian use. On the readjustment of item prices it was decided that the director of lum- ber, in conference with the war-service committee of the manufacturers, should have discretion to make certain minor changes and corrections in the item prices, which, however, should* not affect the average base price. As to price concessions made by manufacturers to wholesale distributors, it was decided to incorporate in the present announcement a formal statement, to wit: That in cases where manufacturers make reductions from the maximum prices to wholesale dealers, the reductions should be considered in the nature of an allowance to cover the expense and profit of sales by wholesale dealers and should not be interpreted as constituting a general reduction in the market price of lumber to the trade. BIRCH LOGS. An informal agreement as to fair and reasonable prices for birch veneer logs suitable for airplane purposes was made on October 30, 1918, at a conference in which the lumber section of the War Industries Board, bureau of aircraft production, and representatives of veneer manufacturers and loggers were pres- ent. The prices agreed upon, f. o. b. shipping point, for logs of veneer quality were as follows : Logs 12 to 15 inches in diameter, $55 per thousand feet ; logs 16 inches and up in diameter, $65 per thousand feet. These prices remained unchanged throughout the period of the war. BLACK WALNUT. No official price was set on black \valnut as a whole, but a fixed maximum price was set on gunstock flitches and propeller blades. On August 10, 1917, the Ordnance Department of the United States Army fixed a maximum price of $1.05 each for gunstock dimension blanks f. o. b. mill. On August 1, 1918, the price was raised to $1.20 each by action of the price-fixing committee of the War Industries Board. The Signal Corps of the United States Army on January 28, 1918, fixed a maximum price of $310 per thousand board feet for airplane propeller stock, which was continued throughout the war. On August 1, 1918, the price-fixing committee also made an informal agree- ment with lumber manufacturers as to the price of 2$-inch black walnut flitch, 756 HISTORY OF PRICES DURING THE WAR. which was set at $80 per thousand board feet f. o. b. mill. This price was not binding on manufacturers, but was regarded as a fair price for the material. An informal agreement was also made on August 7, 1918, between the price- fixing committee and walnut log buyers as to a fair and reasonable price to be paid for black walnut logs. An announcement was made as follows : As an aid to the Government in securing the outturn at fair and reasonable prices of the walnut timber necessary for its needs and for the protection of the walnut timber owners we ask that you give publicity to the following ranges of prices for each diameter which the log buyers or the walnut manufacturers having Government contracts for gunstocks and propeller lumber will pay for good walnut logs 12 inches and up in diameter and 8 feet and up in length. Diameter (inches). Prices of black walnut logs 8 feet and over long on board cars on railroad. Equivalent value for standing timber. Minimum. Maximum. Minimum. Maximum. 14 PerM. 45 55 65 75 85 95 105 115 125 135 PcrM. $55 65 75 85 95 105 115 125 135 150 PC r M. S20 30 40 50 60 70 80 90 100 110 Per M. $35 45 50 60 70 80 90 100 110 120 16 . 18 20 22 24 26 28 30 31 and up In arriving at prices which it is paying for propeller lumber and gunstocks the Government has taken these log prices into consideration, and has allowed the mills prices for the material it gets which will allow for only a fair and reasonable profit both to the mills and the log buyer. The above prices were used as a guide only, purchases being made both above and below those given in the log price list. CYPRESS AND TUPELO. The maximum price of cypress and tupelo lumber was not fixed by the price- fixing committee, but an unofficial price list was issued by the Cypress emergency bureau, which was recognized as representing fair and reasonable prices. The list was dated October 25, 1918, and was in effect to the close of the war period. CYPRESS EMERGENCY BUREAU. [Net cypress and Tupelo list for Government f. o. b. mills in North and South Carolina, Georgia, Florida, and Louisiana.] CYPRESS. Rough, random width. Tank. Factory select. Shop. Box. Peck. 1 inch $35.00 $29. 50 $25.00 $16.00 1J inches 40.50 35.50 26.00 18.00 $61.00 43.00 36.50 26.00 18.00 2 inches 67.00 46.00 38.50 26.00 16.00 2J inches 3 inches 85.50 57.50 50.50 4 inches 94.50 For SIS or S2S add $1.50 per thousand. 1-inch to 2-inch factory select, shop, box are for standard lengths. Add $1 per thousand fc V priSs fC specified on U and 2 inch tank 8 to 16 feet. For 18 and 20 feet add $4 per thousand. On 2J to 4 inches, all grades, add"$2 per thousand for each foot over 18 feet. GOVERNMENT REGULATIONS RELATING TO PRICES. 757 Finishing lumber SIS or S2S. A. B. C. Select common. 1 by 4, 6. 8, and 10 inches 10/20 $53 00 $47 50 $44 00 J38 50 1 by 12, 10/20 58.50 52.00 51.00 45 50 1 by 4 to 12 inches, R. W., 10/20 53 00 47 50 44 00 38 50 1 by 13 to 19 inches, inclusive. 10/16 J 67 50 62 00 I by 14 10/16 i 65 00 59 50 1 by 16, 10/16 i . . 69.50 64 00 1 by 18, 10/16 i 74 00 68 50 1 by 20 to 23 inches inclusive 10/16 J 81 00 75 50 1 by 24 and wider. 10/16 i 94.50 89.00 li by 4, 6, 8, and 10 inches, 10/20 J 56 50 51 50 47 50 42 50 if by 12 10/20 i 62 00 56 00 54 50 49 oo 1} by 4 to 12 inches, R. W ., 10/20 i 56.50 51.50 47.50 52 50 i by 13 to 19 inches, 10/16 i 71>00 65 50 1 by 14, 10/16 i 68.50 63.00 J by 16, 10/161 73.00 67.50 i: by 18, 10/16 i 77 50 72 00 \ by 20 to 23 inches, inclusive, 10/16 i 84.50 80.00 | by 24 and wider, 10/16 . 98.00 92.50 2 by 4 6 8 and 10 inches, 10/20 66 50 61 00 53 00 47 50 2 by 12, 10/20 72.00 65.50 60.00 54.50 2 by 4 to 12 inches, R. W., 10/20 , 66.50 61.00 53.00 47.50 2 by 13 to 19 inches, inclusive, 10/16 l 81 00 75 50 2 by 14, 10/16 i 78.50 73.00 2 by 16, 10/161 83.00 77.50 2 by 18, 10/16 1 87 50 82 00 y 2 by 20 to 23, 10/16 1 94.50 89.00 2 by 24 and wider, 10/16 1 108.00 102.50 i For 11 add $1 over price 1J. For rough, deduct $1.50 per thousand. For S4S, add 50 cents per thousand. For 13 inches and wider random or specified widths, add $1 per thousand for each foot over 16 feet. For 10 to 16 foot lengths in 2^ add $13; for 3 inches add $17; and for 4 inches add $23 to price of 2 inches. For specified lengths,! to 2 inches, add $2 per thousand; 2J to 4 add $2 per thousand for each foot over 16 feet. Panel stock: | by 8 inches and wider, S2S to & inch, $28; i by 8 inches and wider, S2S to A inch, $34.50; g by 8 inches and wider, S2S to A inch, $40; } by 8 inches and wider, S2S to ^ inch, $47. For specified widths up to 12 inches, add $2.50. Wider than 12 inches and less than 16 inches, add $6 per M. S. M.; 16 inches and wider, $9 per M. S. M. .Flooring, ceiling, drop siding, shiplap, casting and base. A. B. C. Select common. | by 4 or 6 inches 8/20 $29 00 $26 00 $24 50 i by 4 or 6 inches 8/20 36.50 34.00 32.00 by 4 or 6 inches 8/20 44.50 42.00 40.00 1 by 3 57.00 49.00 45.50 $40.00 1 by 456 and 8 inches 8/20 56.50 48.50 45.00 39.50 1 by 10 8/20 39.50 1 by 12 8/20 46.50 For 11 inches, add $4; \\ add $5; 2 inches add $15 to price of 1 inch. For partition add $5 per thousand. Short flooring, ceiling, etc., 4 to 8 feet, $4 per thousand less than standard lengths, in same width and grade. Bevel siding. A. B. C. D. \ by 4, 8/20 $27.00 $24.50 $22.50 $16.00 i by 5 8/20 27.00 24.50 22.50 19.50 i bv G 8/20 28.00 24.50 22.50 17.00 by 4 or 6 mixed lengths only from inch stock, 4 by 8 feet, B and better, $21. 758 HISTORY OF PRICES DURING THE WAR. Bungalow bevel siding. C and better. D. I by 8 S4S and resawn to J S.L 1* by 8, resawn to S.L I 1 by 8, resawn to f inch $31.50 40.50 49.50 $28.00 37.00 44.00 $27.00 36.00 43.00 826. 00 35.00 42.00 For specified lengths, add SI. For 10-inch width, add Si. BYRKIT SHEATHING LATH. [Long lengths, $19.50; short lengths, $18.50; all orders must include reasonable percentage of short lengths- Shingles. Best. Primes. Economy, Xax. Clipper. 3 inches dimension S3.75 $2.70 4 inches dimension -. 4.65 3.60 $2.70 $1.95 5 inches dimension 4.90 3.85 3.00 1.' G inches dimension 4.90 3.85 3.00 1.9.5 Random $2.05 1.80 TUPELO. Standard Rough: lengths. Wagon box boards, 13 to 17 inches $40. 50 Wagon box boards, 8 to 12 inches 37. 00 First and seconds 29. 00 No. 1, common 26. 00 No. 2, common 23. 50 No. 3, common 18. 00 Log run, No. 3, common and better with firsts and seconds out 23. 50 Log run, No. 3, common and better with firsts and seconds in 24. 25 1 by 3 wider, 12 to 36 inches, C and better, shorts 21. 50 Finish, flooring, ceiling, siding, partition, worked: Finish B and better, 4 to 10 inches, specific widths 33. 50 Finish Band better, 12 inches 38.00 Finish B and better, 4 to 12 inches, assorted widths 34. 00 Finish B and better, 13 inches and wider 43. 00 Finish C, 4 to 10 inches, specified widths 27. 00 Finish C, 12 inches 31. 50 Finish C, 4 to 12 inches assorted widths l 28. 00 Flooring and ceiling, B and better 1 36. 00 Flooring and ceiling, C ^l.SO Partition, B and better 1 40. 50 Partition, C 36.00 Drop siding, C and better ;'. 31. 50 Bevel siding, B and better 20.00 Bevel siding, C ----- 18.00 When specific prices are not given on worked stock add the following working charges, stock to be graded before working: Add $1.50 for each resaw. Add $0.50 for each rip or cross cut. Add $3 for each S2S and resaw. Add $4 for resawing and S2S afterwards. Add $2.50 for making flooring, shiplap, ceiling, grooved roofing, jambs, bevel cribbing, or drop siding- No. 1 common rough. Iby3.. Iby4.. Iby5.. Ibyfi.. Iby8.. 1 by 10. Ibyl2. 2 by 4.. 2byC.. 2 by 8.. 2 by 10. 2 by 12. R. L $32.50 32.50 32.50 32.50 32.50 32.50 38.00 34.00 34.00 34.00 34.00 39.50 6 and 8. S30.50 30.50 30.50 30.50 30.50 30.50 36.00 32.50 32.50 32.50 32.50 38.00 10 $32. 50 32.50 33.50 32.50 32.50 33.50 39.50 34.00 34.00 34.00 35.00 41.50 12 $32.50 32.50 34.00 32.50 32.50 34.00 40.50 34.00 34.00 34.00 36.00 42.50 $32.50 33.50 31.00 32.50 32.50 31.50 37.00 34.00 34.00 34.00 33.50 38.50 S33.50 33. 50 33.00 35.00 32.50 33.00 38.00 35.00 34.00 34.00 34.50 39.50 $32.50 33.50 34.00 32.50 33.50 34.00 40.50 35.00 34.00 35.00 36.00 42.50 $32. 50 34.00 35.00 32.50 34.00 34.50 42.50 36.00 34.00 36.00 36.50 44.00 For specified lengths add $1 per thousand feet to these prices. GOVEKNMENT REGULATIONS RELATING TO PRICES. 759 No. 2 common rough. R. L. 6 and 8. 10 12 14 1C 18 20 Iby3 1 by 4 $29.00 28.50 $27.00 26 50 $29.00 28 50 $29.00 28 50 $29.00 28 50 $31.50 28 50 $29.00 29 50 $29. 00 29 50 1 by 5 28 50 26 50 29 50 29 50 29 50 28 50 29 50 30 00 Iby6 Iby8 28.50 28.50 26. 50 26 50 28. 50 28.50 28.50 28.50 28.50 28.50 31.00 28 50 28.50 29.50 28.50 29 50 IbylO... 28.50 26.50 29.50 29.50 28.50 28.50 29.50 30.00 Ibyl2 2 by 4. 32.50 30.00 30.50 28.50 33.50 30.00' 33.50 30.00 32.50 30.00 32.50 30.00 33.50 31 00 34. 50 31 00 2 by 6 30 00 28 50 30 00 30 00 30 00 30 00 30 00 30 00 2 by 8... 30.00 28.50 30.00 30.00 30.00 30.00 31.00 31.00 2 by 10 30.00 28. 50 31.00 31.00 30.00 30 00 31 00 32 00 2 by 12 34 00 32 50 35 00 35 00 34 00 34 00 35 00 36 50 For H and l\ add $2 to price of 1 inch. For SIS or S2S add $1.50 per thousand feet. For S4S or SIS and IE add $2 per thousand feet. Timbers (green), rough: 3 by 4, 4 by 4, 4 by 6, 10/16 $31. 50 3 by 6 and 3 by 8, 10/16 32.50 3 by 10 and 3 by 12, 10/16 31. 00 6by6and6by8 134.00 For SIS or S2S, add $1.50 per thousand. For S4S or SIS and IE, add $2 per thousand. Battens, 10/16: | by 3 inches, SI S , 5. 00 | by 3 inches, O. G 5. 25 2-inch O. G. finish, 13/16 by If inches 6. 50 2i-inch O. G. finish, 13/16 by 2 inches 9. 00 For 18 and 20 foot battens add 25 cents. Lath: No. 1, | by 1J inches, 4-foot 4.25 No. 2, by li inches, 4-foot. No. 1, | by 1| inches, 32-inch 1. 80 No. 1, | by 1 J inches, 4-foot 7. 65 DOUGLAS FIR. The first price control of Douglas fir was carried out by the Douglas Fir Emergency Bureau, and the item prices listed at that time were in effect from December 1, 1917, to March 1, 1918. These prices were adopted by the price-fixing committee, to be effective from March 19, 1918, to June 1, 1918. The entire fir schedules were revised in June, 1918, by the price-fixing com- mittee and the lumber director. The new prices represented an average increase of approximately $2.75 per thousand board feet and were made applicable to both the Government and public purchases. The new schedules became effective June 15, 1918, and provided a base price for Douglas fir of $26 per thousand feet ; $40 per thousand feet for rough and dressed timber, and $50 for aircraft timbers. The log range was from $12 to $20 per thousand feet. The following announcement by the price-fixing committee accompanied the schedules of June 15, 1918: No regulation has been made with regard to transactions other than sales by manufacturers at the schedule prices. Wholesale dealers, retail dealers, and all others are entitled to buy on the basis of these f. o. b. mill prices. As yet no regulation of rates or profits has been made w r ith regard to sales either by wholesalers or retailers to consumers. The War Industries Board believes that sales by all dealers should be made at reasonable prices based on a strictly reasonable profit above the fixed schedule rates. The board 'is confident that the trade will conform to the spirit of the existing regulations and the board will not proceed to further regulation or restriction of dealers' prices until their conduct of business indicates that such action is necessary. 2 1 For 18 and 20 foot add $1 per thousand. 2 Official Bulletin, June 24, 1918. 760 HISTORY OF PRICES DURING THE WAR. The prices of June 15, originally effective for 90 days, were extended to October 15, 1918, and at that time it was agreed that they should be continued until January 15, 1919, when all price control over Douglas fir was discontinued. Airplane fir. On April 10, 1918, the spruce production division of the Signal Corps of the United States Army issued a schedule of prices for Douglas fir airplane material. The f. o. b. mill price for lumber cut to specification was $65 per thousand board feet. In July these prices were superseded by others which carried a price of $50 per thousand board feet f. o. b. mill. The War Industries Board announced, on March 19, 1918, the following rulings : That the maximum price for fir logs in the Pacific Northwest, delivered at the points where it has been customary to make delivery to the sawmill opera- tors, be fixed at $19 per 1,000 for No. 1 logs, $15.50 per 1,000 for No. 2 logs, and $10 per 1,000 for No. 3 logs, scale as to grade and contents to be determined according to the methods that have been customary in the various districts for the past four or five years. These prices are a basis for logs up to and including 40 feet in length. Logs over 40 feet in length to be priced on the same basis for extra lengths as has heretofore been established by custom. In no case shall nny greater price than that mentioned above be allowed for logs of those grades during the period of March 19 to May 31, 1918. That the price of fir ship timbers under the Ferris schedule to the Emergency Fleet Corporation be readjusted at item prices that will average $40 per 1,000 for a complete schedule for both the rough and dressed items, and that all sales of lumber for other vessels under Government contract requiring a schedule of lumber of similar type shall be furnished at not to exceed the same basis of prices. That the prices of fir lumber for aircraft use to both the United States Government and the Allies remain the same as those now in effect (Mar. 19, 1918). That the prices of all other items of fir lumber remain the same as those enumerated in the appended list of the Douglas fir emergency bureau, effective between the dates of December 1, 1917, and March 1, 1918, to all other depart- ments of the Government be continued in effect to May 31, 1918. Prices named on West Coast Lumber Association's yellow sheet bearing date December 1, 1917, covering timber 34 feet and longer, shall be canceled and a price of $6 per 1,000 over West Coast price list of May 1, 1915, hereby is made effective for timbers of above lengths until May 31, 1918. Prices on items not covered by above list shall be based on the nearest comparable item. It is understood that during this time the loggers and lumber manufacturers will not reduce the scale of wages now being paid. F. o. b. mill prices December 1, 1917, and May 31, 1918: FIR COMMON BOARDS SIS OR SHIPLAP. 1 by 2, 6 to 20 feet, mixed lengths, SIS $1 8 . 00 1 by 3, 6 to 20 feet, mixed lengths, SIS 18.00 Iby4, 6 to 20 feet, mixed lengths, SIS 16.00 1 by 6, 6 to 20 feet, mixed lengths, SIS or S.L... , 16.50 1 by 8, 6 to 20feet, mixed lengths, SIS or S. L 17. 50 Iby 10 6 to 20 feet, mixed lengths, SIS or S. L 17.50 1 by 12, 6 to 20 feet, mixed lengths, SIS or S. L 18. 00 For selected common add $3; for D. and M. add $1.50; for grooved roofing add $3. Orders for 16, 18, and 20 feet only add $2. Other orders for specified lengths add $1 to above prices. Number 2 common boards and shiplap $3 less when in stock. Fir common dimensions, S1S1E. 6 feet. 8, 12, 14 feet. 16 feet. 9 to 10, 18 to 20 feet. 22 and 24 feet. 26 to 32 feet. 2 by 3 2 by 4 $15.50 $16.50 $17. 50 $18.50 $19.50 $21.50 2 by Q 2 by 8 15.50 16.00 17.00 17.50 18.50 20.00 2 by 10 16.00 17.00 17.50 18.00 19.00 21.00 2h T7 12 16.50 17.50 18.00 18.50 19.50 21.50 2 by 14 19.00 19.00 20.00 21.00 23.00 20.00 20.00 21.00 22.00 24.00 2 by 18 22.00 22.00 23.00 24.00 26.00 2 by 20 24.00 24.00 25.00 26.00 28.00 Add 50 cents for every 2 feet over 32 feet long up to 40 feet. For select common add $3. S1E or rough same mill base as dressed. For 2 by 4, 2 by 6, or 2 by 8 D. & M. or shiplap add to S1S1E, $1.50. Hemlock permitted in 2 by 4 and 2 by 6. GOVERNMENT REGULATIONS RELATING TO PRICES. FIR COMMON PLANK AND SMALL TIMBERS S1S1E OR S4S. 761 8, 12, 14, and 16 feet. 9 to 10, 18 and 20 feet. 22 and 24 feet. 26 to 32 feet. 3 by 3, 3 by 4... $17.00 $17. 50 $18.50 $20.50 3by6 18.00 18.50 19.50 21.50 4 by 4 4 by 6 4 by 8 18.50 19.50 20.50 22 50 3by8' ' , 18.00 18.50 . 19. 50 21.50 3 by 10 3 by 12 18.50 19?50 20.50 22.50 3by 14. 19.00 20.00 21.00 23.00 3 by 16 20.00 21.00 22.00 24.00 3byl8. 22.00 23.00 24.00 26.00 3 by 20 24.00 25.00 26 V 00 28.00 4 by 10 4 by 12 18.50 19.50 20.50 22.50 4 by 14 19.50 20.50 21.50 23.50 4 by 16 20.50 21.50 22.50 24.50 4 by 18 . 22.00 23.00 24.00 26.00 4 by 20 24.00 25.00 26.00 28.00 6by6to8by8 ... .... 18.00 19.00 20.00 22.00 Add 50 cents for every 2 feet over 32 feet Ion? up to 40 feet. For selected common add $3 S1E or rough same mill base as dressed. FIR TIMBERS, SINGLE CARLOAD LENGTHS. 32 feet and under. Rough. S1S1E or S4S. 6 by 10 to 8 by 12 . $20.00 20.50 22.00 23.00 24.50 27. 50 31.00 20.00 20.50 25.00 27.00 30.00 21.50 23.50 24.50 26.50 30.00 $21.00 22.50 24.50 26.00 27.50 31.00 35.00 21.00 23.00 28.50 30.75 34.00 25.00 27.50 29.00 31.50 35.50 6 by 14 to 8 by 14 6 by 16 to 10 by 16 6 by 18 to 10 by 18 ' 6 by 20 to 8 by 20 6 by 22 to 8 by 22 6 by 24 to 8 by 24 10 by 10 to 12 by 12 10 by 14 to 14 by 14 10 by 20 to 12 by 20 10 by 22 to 12 by 22 10 by 24 to 12 by 24 12 by 16 to 16 by 16 12 by 18 to 18 by 18 .-< 14 by 20 to 20 by 20 14 by 22 to 22 by 22 '- 14 by 24 to 24 by 24... FIR, TIMBERS, SINGLE CARLOAD LENGTHS. For odd or fractional thicknesses add to next less thickness 50 cents. Odd or fractional length timbers ordered shall be counted as of next longer even length. For odd or fractional widths add to next less width $1. For select common add $3. No. 1. No. 2. No. 3. 1 by 4 10 to 16 feet V G fl ooring $37.00 $34.00 $28.00 1J by 4 6 to 16 feet V G flooring 40.50 36.50 30.50 NOTE. No. 1 and No. 2 V. G. flooring 1 by 4, 6, 7, 8, and 9 feet, $1 less when in stock; No. 3 V. G., $2 less. All 4 and 5 feet, $5 less. Short flooring subject to stock on hand. Specified lengths $2 extra. > No. 2 clear and better. No. 3. $24. 00 27.00 $21.00 25.00 All flat grain flooring 6, 1, 8, and 9 feet, $2 less. All 4 and 5 feet, $5 less. Specified lengths, $2 extra. No. 2 clear and better; 1}, H or 2 inches, 8 to 12 inches wide, 3 to 16 feet, V. G. fir stepping S2S, or S2S and nosed, $45; 14 inch, $2 extra; specified lengths, $2 extra. 762 HISTORY OF PRICES DURING THE WAR. FIR FINISH NO. 2 AND CLEAR AND BETTER, 6 TO 16 FEET LONG. S2Sor S4S. Rough dry. Rough green. 1 by 4.... $34 00 $3^ 00 ;qi"i nn IbyG 35 00 33 00 31 00 1 by 5, 8 and 10 inches 36 00 34 00 qo f)A Ibyl2 38 00 36 00 34 00 1| and H by 4 and 6 inches. 37 00 35 00 33 00 1J and U by f , 10 and 12 jnches 39 00 37 00 35 00 2 by 4 34 00 32 00 30 00 2by6 35 00 33 00 31 00 2 by 8 and 10 inches. . . . 36 00 34 00 3 00 2byl2 .-. 38 00 36 00 34 00 2J, 3, and 4 inches (green only)... 36 00 For each inch in width over 12 inches add SI. Specified lengths, $2 extra. For selected slash grain add $10. For vertical grain add $7. CEILING. No. 2 clear and better. Xo. 3 clear. tea 10 to 16 feet, 10 to 16 feet, c. c. and and E E ,B.orC. and , B. or C.and E. E. V V $23. 00 24.00 $17.50 21.00 Six to 9 feet, S3 less; 4 and 5 feet, 85 less. Specified lengths, S2 extra. Fix partition, 5 more than ceiling. For 6-mch ceiling or partition add $3.50 to the price of 4-inch. 1 by 6, 10 to 16 feet, drop siding and rustic: No. 2 clear and better ^ 26. 00 No. 3 clear 23. 00 Six to 9 feet, $3 less; 4 and 5 feet, $5 less. Specified lengths, $2 extra. Orders for drop siding patterns other than Xo. 106 must include the other grade accumulated in working at grade prices. (June 11, 1919.) After considering the information submitted by the Federal Trade Commis- sion as to the cost of logging and of manufacturing lumber and the information submitted by the representatives of the loggers and lumber manufacturers of the Pacific Northwest at the hearings held on Monday and Tuesday, June 10 and 11, 1918, at which their request for a readjustment of prices on their products was heard, the price-fixing committee, appointed by the President, has determined upon, by agreement with the said representatives of the loggers and lumber manufacturers of the Pacific Northwest, the following maximum prices for fir logs and fir lumber produced in the Pacific Northwest, which maximum prices shall not be exceeded on any sales and contracts for the sale thereof (for mill shipment) made during a period of three months beginning midnight June 15, 1918, 'either to the public, to the Government, to Govern- ments of the nations associated with us in the present war, or the railroads, whether by rail or by water shipment : The maximum price for fir logs in the Pacific Northwest delivered at points where it has been customary to make deliveries to the sawmill operators shall be $20 per thousand for No. 1 logs, $16 per thousand for No. 2 logs, and $12 per thousand for No. 3 logs, scale as to the grade and contents to be determined according to the methods that have been customary in the various districts. Said prices are on a basis of logs up to and including 40 feet in length ; logs over 40 feet in length to be priced on same basis for extra lengths as has here- tofore been established by custom or (in case of uncertainty or question or variation in the different districts as to past custom, as to point of delivery, method of scaling, or prices for extra lengths) as may be decided by the lumber section of the War Industries Board. In no case shall any greater prices than those mentioned above be allowed for logs during the period men- tioned. Any additional cost for log freights occasioned by order No. 28 of the Director General of Railroads to be added to foregoing' log prices on logs so affected. GOVERNMENT REGULATIONS RELATING TO PRICES. 763 The price of fir ship timbers under the Ferris schedule to the Emergency Fleet Corporation to remain the same as thoso determined upon by the price- fixing committee March 19, 1918, namely : Item prices that average $40 per thousand for a complete schedule for both the rough and dressed items, and all sales of lumber for other vessels requiring a schedule of lumber of similar type shall be furnished at not to exceed the same basis of prices. The prices of fir lumber for aircraft use to remain the same as those now in effect. The prices of all other items of fir lumber shall be based on the West Coast price list of May 1, 1915, plus additions noted on discount sheet No. 22 of February 15, 1918, on the following items : All items of No. 3 clear and better. All items of fir timbers larger than 8 by 8 dimension of all lengths. All items 3 inches and thicker and 10 inches and wider and plus $1 per thousand less than discount sheet No. 22 on all remaining items of fir on said lumber list. Prices on items not covered by above list shall be priced on basis of nearest comparable item. The custom of delivered prices of lumber to purchasers' destination points shall remain unchanged. Contracts for sale of logs and of lumber entered into in good faith prior to midnight of June 15 ? 1918, and enforcible at law will be performed in accord- ance with their terms, subject, of course, to orders received from the Govern- ment which may require priority. It is imperative that, with the least possible disruption of the industry, the vast war needs of the Government, both direct and indirect, for fir logs and fir lumber be supplied on a fair basis; that an adequate supply and equitable distribution thereof be assured for essential commercial needs ; that the move- ment thereof be facilitated, and that injurious speculation therein be pre- vented. Therefore the procedure outlined below, by agreement with the repre- sentatives of the loggers and lumber manufacturers of the Pacific Northwest, has been adopted for a period of three months beginning midnight June 15, 1918. The procedure is that each fir logger and each manufacturer of fir lumber in the Pacific Northwest shall (1) Make contracts for the sale of his products and accept orders therefor at prices not exceeding the applicable maximum prices, always subject to an option at the applicable maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option, which will cover all fir logs and lumber down to the time of actual delivery to the purchaser, the War Industries Board, to any extent required, will allocate either to the Gov- ernment or to other essential users. Any balance not so allocated will be released for sale to commercial buyers, but at prices no greater than those determined upon as above set forth. (2) Comply with the directions of the War Industries Board as issued from time to time with reference to filling commercial requirements in the order of their public importance and to furnishing such information and making such reports as may be required. (3) Keep up to the best of his ability the production of logs and lumber, so as to insure an adequate supply so long as the war lasts. (4) Neither reduce the scale of wages now being paid nor change funda- mental labor conditions now in force. The Government will apportion the car supply available for, and arrange for the transportation of, logs and lumber, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war-time conditions be neutralized so far as may be. Foreign trade, except to the Governments of nations associated with us in the present war, is not to be affected by this ruling. (June 12, 1918.) The maximum price for Douglas fir logs in the Pacific Northwest having been fixed by the price-fixing committee of the War Industries Board as follows : No. 1 grade $20.00 No. 2 grade No. 3 grade . 12. 00 764 HISTORY OF PRICES DURING THE WAR. It is determined that the above prices constitute the basis for logs up to and including 40 feet in length. It is further determined that the above prices are net cash upon determina- tion of log scale. Scale as to grade and contents shall be according to custom, with the excep- tions hereinafter noted. All fir logs, other than those graded No. 1, No. 2, or No. 3, shall be entitled to a maximum price of $16, with the exception that logs 15 inches and under at top end shall be classified as No. 3 logs and shall be so scaled, priced, and invoiced. This also applies to No. 1, No. 2, and No. '3 graded logs. All coarse, large logs containing defects similar to the No. 3 grade shall be scaled, priced, antl invoiced as No. 3 logs. Custom as to log delivery shall remain unchanged, except as applying to the delivery of logs on Grays Harbor and Willapa Harbor, in the State of Washing- ton, in which districts mills shall absorb towage. The price of fir logs shall neither directly nor indirectly be added to by any log producer through the compelling of the purchaser to take hemlock logs with the fir logs at any price higher than the then maximum price of No. 3 fir logs. Hemlock logs, when ordered by the purchaser or rafted separately, are not subject to said restriction. Long logs J,2 feet and over. A long log is to be construed as one 42 feet and longer, 18 inches and over in diameter at the top end, suitable for the manufac- ture into a square edge and sound timber. Long-log differentials hereinafter named, in the case of the graded logs, are to be added to the price of a No. 2 log, and in the ungraded logs are to be added to the price of the ungraded $16 log. The hereinafter-named differentials on long logs shall only apply when such logs are ordered by the purchaser. Logs 27 inches by 12. . do IV bv 12 do 7by7 .do.. 1 by 2 or 1 by 3 planed 1 side. 1 by 2 or 1 by 3 planed 1 side. 1 by 4 to 8 planed 1 side. 1 by 4 to 8 planed 2 sides, planed 1 or 2 sides and matched, planed, matched and beaded, or planed 4 sides. Any quantity any length. 8-20 feet 7 by 8. . do 7by 9. . do 7by 10 do.. Random lengths Random widths and lengths. Random lengths 7 by 12. . do. 8 by 8 do 8 by 9. . .do. . 8 by 10. . do 8 by 12 do Where the fractional part of a foot is specified, the stock is to be figured the next foot in length. For every 2 feet or fraction over 20 feet add $1 per M. 1 Trice Fixing Committee Minute Book II, Apr. 11-12, 1918. 125547 2( 770 HISTORY OF PRICES DURING THE WAR. All prices in the rougji unless otherwise specified above. For planing 1 side, add $0. 50 For plan-ing 2 sides, add 1. 00 For planing 1, 2 sides and matching or grooving and planing 4 sides, add 1. 50 For beading, add . 50 The above prices are quoted with the understanding that the Government will endeavor to give a fair assortment of widths and lengths on their orders and that we should not bo called upon to furnish all 8-inch, and wider on any job unless we furnish the narrow widths and short lengths needed for same job. Any order submitted not in accordance with our interpretation of the above statement,, we reserve the right to make additional charge, according to manufacturing and market conditions at that time, for furnishing such schedules. If such charge is not agreeable to the Government cancellation may be made within a reasonable length of time aftor noti- fication to the Government, say, 10 days. These prices allow the present rate of freight to Boston, Mass. Thoy do not include the 3 per cent tax on freight bills. In adjustment of freight differentials, the Bangor & Aroostock Railroad lumber tariff to govern. All freight rates subject to change in accord- ance with changes of present railroad rates. Terms of settlement : One per cent discount for cash 15 days from date of shipment, eastern merchantable inspection to govern. For deliveries other than Boston, add following arbitraries : Per M. feet. Albany, via Delaware & Hudson $0. 75 Schenectady, via Delaware & Hudson . 75 South Boston 1. 00 Philadelphia Wilmington 3.75 Newark 3. 75 Baltimore Bristol, Pa 3. 75 Troy, N. Y Albany and Schenectady, via New York Central 1. 25 The prices quoted to remain in effect until July 1, 1918, or such prior time as the Federal Trade Commission have completed an investigation of cost of manufacturing lumber in the New England district and is prepared to submit their findings to the price- fixing committee of the War Industries Board, at which time these prices may be sub- ject to revision. (July 19, 1918.) After considering the information submitted by tlie Federal Trade Commis- sion as to the cost of manufacturing New England spruce lumber, and the infor- mation submitted by the representatives of the manufacturers thereof at the hearings held on the 18th of July, 1918, at which their request for a readjust- ment of prices on their products was heard, the price-fixing committee appointed by the President has determined, by agreement with the said representatives of the manufacturers of New England spruce lumber, upon the following maximum prices for such lumber. These maximum prices shall not be exceeded on any sales and contracts for sale (for mill shipment) made by the manufacturer, dealer, or other person during a period beginning midnight July 19, 1918, and ending midnight November 1, 1918, to the Government, to the Governments of the nations associated with us in the present war, to the railroads, or to such others as customarily purchase lumber for mill shipment, whether by rail or by water. The prices of all New England spruce lumber in the States of Maine, New Hampshire, Vermont, and Massachusetts shall not exceed the item prices named in attached list. These prices are for New England spruce lumber deliv- ered (freight allowed) to Boston, Mass. They do not include war tax on freight bills. For shipments to other destination points, freight adjustments will be governed by differentials shown in Bangor & Aroostook Railway lumber tariff on basis of 3,000 pounds weight to 1,000 feet of lumber. GOVERNMENT REGULATIONS RELATING TO PRICES. 771 Prices oil items not covered by above list shall be priced on basis of nearest comparable item. The usual trade practices shall continue, including cash discount of 1 per cent in 15 days or 30 days net. Contracts for the sale of lumber entered into in good faith prior to midnight July 19, 1918, and enforcible at law, will be performed in accordance with their terms, subject, of course, to orders received from the Government which may require priority. It is imperative that with the least possible disruption of the industry the vast war needs of the Government, both direct and indirect, for New England spruce lumber be supplied on a fair basis, that an adequate supply and equitable distribution thereof be assured for essential commercial needs, that the move- ment thereof be facilitated, and that injurious speculation therein be prevented. Therefore the procedure outlined below, by agreement with the representatives of the manufacturers of New England spruce lumber, has been adopted for a period beginning midnight July 19, 1918, and ending midnight November 1, 1918. The procedure is that each manufacturer of New England spruce lumber shall (1) Make contracts and accept orders for his product at prices not in excess of the applicable maximum prices, always subject to an option at the applica- ble maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option,, which will cover all New England spruce lumber down to time of actual delivery to the purchaser, the War Industries Board to any extent required will allocate either to the Government or to other essential users. Any balance not so allocated will be released for sale to com- mercial buyers, but at prices no greater than those determined upon as above set forth. (2) Comply with the directions of the War Industries Board, as issued from time to time, with reference to filling commercial requirements in the order of their public importance and to furnish such information and making such re- ports as may be required. (3) Keep up to the best of his ability the production of spruce lumber so as to insure an adequate supply so long as the war lasts. (4) Neither reduce the scale of wages now being paid nor change funda- mental labor conditions now in force. The Government will apportion the car supply available for lumber and ar- range for its transportation, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war-time conditions be neutralized so far as may be. Foreign trade, except to the governments of nations associated with us in the present war, is not to be affected by this ruling. (July 19, 1918.) Maximum prices on New England merchantable spruce lumber delivered (freight allowed) to Boston, Mass. They do not include war tax on freight bills. For shipments to other destination points freight adjustments will be governed by differentials shown in Bangor & Aroostook Railroad lumber tariff on basis of 3,000 pounds weight to 1,000 feet of lumber. Effective mid- night July 19, 1918, to and including November 1, 1918. DIMENSION. [Specified lengths 20 feet and under.] Sizes. Prices. Sizes. Prices. 1 bv 2 DlS to $48 00 Iby9 . S53. 00 x inch 48 00 1 by 10 58 00 1 by 4 48 00 Ibyl2 60.00 1 by 5 48 00 li or 1J by 4 48.00 1 by 6 48.00 1J or 1J by 5 48.00 1 by 7 48.00 11 er 1 \ by 6 48.00 Ibv8... 48.00 Hor Hby7 48.00 772 HISTORY OF PRICES DURING THE WAR. DIMENSION Continued. Sizes. Prices. Sizes. Prices. IJor IJbyS $48 00 4 by 8 $48 00 1J or if by 9 .53 00 4 by 9 53 00 l|or 1| bv 10 58.00 4 by 10 58 00 IJor Hby 12 60 00 4 by 12 60 00 2by2 48 00 5 by 5 48 00 2 by 3, DIE to 2| inches 48 00 5 by 6 48 00 2 by 4, DIE to 31 inches 48.00 5 by 7 48 00 2 bv 5 48 00 5 by 8 48 00 2 by 6. .. 48 00 5 by 9 53 00 2by7 48 00 5 by 10 58 00 2 by 8 48 00 5 by 12 fiO (ifl 2 by 9 53 00 6 by 6 48 00 2 by 10 58 00 6 by 7 40 fin 2 by 12 60 00 6 by 8 48 00 3 by 4, DIE to 3|- inches 48.00 6 by 9 53 00 3 by 5 48 00 6 by 10 3 by 6 .. 48 00 6 by 12 60 00 3 by 7 48.00 7 by 7 48 00 3 by 8.. 48 00 7 by 8 48 00 3 by 9 53 00 7 by 9 KQ on 3bylO 58 00 7 by 10 58 00 3 by 12 60 00 7 by 12 60 00 4by4 48 00 8 by 8 48 00 4 by 5 48 00 8 by 9 53 00 4 by 6 48 00 8 by 10 58 00 4 by 7 .. 48 00 8 by 12 60 00 All above prices are for rough lumber unless otherwise specified. Where the fractional part of a foot is specified, the stock is to be figured the next foot in length. For every two feet or fraction over 20 feet add $1 per thousand. RANDOM LENGTHS. Sizes. Prices. Sizes. Prices. by 2, feS DlS to finch $38.00 . 38.00 42.00 42.00 45.00 45.00 45.00 50.00 55.00 59.00 45.00 45.00 45.00 45.00 45.00 50.00 55.00 59.00 2 by 2 $36. 50 36.50 38.00 38.00 38.00 38.00 43.00 45.00 50.00 55.00 40.00 45.00 50.00 55.00 40.00 45.00 50.00 55.00 DlS to finch. 2 by 3 DIE to 2| inches 2 by 4 DIE to 3| inches by 5 2 by 5* by 6 2 by 6 by 7 2 by 7 by 8 2 by 8 by 9 2 by 9 by 10 by 12 orli or 1^ orli or 1= orli or li or 1^ or l\ 2 by 10 2 by 12 by 4 3 by 4 DIE to 3? inches bv5... by 6 3 by 10 by 7 3 by 12 by8 4 by 4 by 9 4 by 9 by 10 4 by 10 by 12 4 by 12 All 8 inches and under sizes, random lengths, including timber, not specified above, $43. All above prices are for rough lumber unless otherwise specified. For planing 1 side add per M . . $0. .50 For planing 2 sides add do 1. 00 For planing 1 or 2 sides and matching or grooving add do 1. 50 For beading, extra do 50 For planing 4 sides add do 1. 50 1 by 4 to 8, planed 1 side, random widths and lengths 41. 00 1 by 5 and up, planed and matched, random widths and lengths 43. 50 1 by 5 and up, planed and matched, random widths, all even lengths, 10 to 18 feet 47. 00 Shiplap 5, 6, and 7 inches, random lengths 46. 00 Shiplap 8 inches, random lengths 48.00 Prices on items not covered by above list shall be priced on basis of nearest com- parable item. Terms of settlement : One per cent discount for cash within 15 days or SO days net from date of shipment ; eastern merchantable inspection to govern. All freight rates subject to change up or down according to any changes by railroads in present rates. GOVERNMENT REGULATIONS RELATING TO PRICES. 773 Sizes. Lengths (any quantity any length). Prices (perM feet). 1 by 2 or 1 by 3 Planed 1 side, 8 to 20 feet (40 Do Planed random lengths 35 1 by 4 to 8. . Planed random widths and lengths 38 I Planed 2 sides Bo { Planed 1 or 2 sides and matched, planed, matched and beaded [ or planed 4 sides random lengths 40 Where the fractional part of a foot is specified the stock is to be figured the next foot in length. For every 2 feet or fraction over 20 feet add $1 per thousand. The above prices are quoted with the understanding that the Government will endeavor to give a fair assortment of widths and lengths on their orders and that we should not be called upon to furnish all 8-inch and wider on any job unless we furnish the narrow widths and short lengths needed for same job. On any order submitted not in accordance with our interpretation of the above state- ment we reserve the right to make additional charge, according to manufacturing and market conditions at that time, for furnishing such schedules. If such charge is not agreeable to the Government, cancellation may be made within a reasonable length of time after notification to the Government, say 10 days. These prices allow the present rate of freight to Boston, Mass. They do not include the 3 per cent tax on freight bills. In adjustment of freight differentials the Bangor & Aroostook Railroad lumber tariff to govern. Terms of settlement : One per cent discount for cash 15 days from date of shipment, eastern merchantable inspection to govern. For deliveries other than Boston add following arbitraries : Per thousand feet. Albany via Delaware & Hudson $0.75 Schenectady via Delaware & Hudson . . 75 South Boston 1 00 Philadelphia 3. 75 Wilmington 3. 75 Newark * . 3. 75 Baltimore >___ , 3. 75 Bristol, Pa 3.75 Troy, N. Y .25 Albany and Schenectady via New York Central 1. 25 Add 25 cents per thousand right through to above prices, occasioned by advance in freight rate of 1 cent per hundredweight, Bangor Aroostook Railroad, supplement No. 7 to I. C. C. No. 1133, effective April 20, 1918. All prices in the rough unless otherwise specified above. Per thousand feet. For planing 1 side, add $0. 50 For planing 2 sides, add 1. 00 For planing 1, 2 sides, and matching or grooving and planing 4 sides, add 1. 50 For beading, add _ .50 NORTH CAROLINA PINE. The first price schedules for North Carolina pine were those made by informal agreement with the North Carolina pine emergency bureau. They were prices to the Government only and were effective from April 8, 1918, to June 5, 1918. On June 28, 1918, the price-fixing committee announced a slight advance in price, showing an increase of $1 per thousand on No. 4 flooring and $2 per thousand on No. 4 ceiling and partition, the basic price being $29.50. These prices were effective until September 30* 1918. On October 1, 1918, the existing schedules were extended to December 31, 1918, when control ended. 774 HISTORY OF PRICES DURING THE WAR. (Apr. 8 to June 5, 1918.) [All prices f. o. b. Norfolk or Richmond (Virginia gates).] Width and lengths. 1 2 by 2, 2 by 2, 2 by 2, 2 by 2, 2 by 2, 2 by 2, 2 by 2, 2 by 2, 2 by 3, 2 by 3, 2 by 3, 2 by 3, 2 by 3, 2 by 3, 2 by 3, 2 by 3, 2 by 4, 2 by 4, 2 by 4, 2 by 4, 2 by 4, 2 by 4, 2 by 4, 2 by 4, 2 by 6, 2 by 6, 2 by 6. 2 by 6, 2 by 6 2 by 6, 2 by 6, 2 by 6, 10 feet . 12 feet . 14 feet. 16 feet . 18 feet. 20 feet . 22 feet. 24 feet , 10 feet . 12 feet . 14 feet . 16 feet . 18 feet . 20 feet . 22 feet. 24 feet . 10 feet . 12 feet . 14 feet. 16 feet. 18 feet. 20 feet . 22 feet . 24 feet. 10 feet . 12 feet . 14 feet. 16 feet. 18 feet . 20 feet. 22 feet . 24 feet . Price. $30.00 28.00 28.00 28.00 30.00 30.00 31.50 31.50 27.50 26.50 26.50 26.50 27. 50 27.50 29.00 29.00 29.00 27.00 27.00 27.00 29.00 29.00 30.50 30.50 26. 50 25. 50 25.50 25.50 26.50 26.50 28.00 28.00 Width and lengths. 1 2 by 8, 10 feet 2 by 8, 12 feet 2 by 8, 14 feet 2 by 8, 16 feet 2 by 8, 18 feet 2 by 8, 20 feet 2 by 8, 22 feet 2 by 8, 24 feet 2 by 10, 10 feet 2 by 10, 12 feet 2 by 10, 14 feet 2 by 10, 16 feet 2 by 10, 18 feet 2 by 10, 20 feet 2 by 10, 22 feet 2 by 10, 24 feet 2 by 12, 10 feet 2 by 12, 12 feet 2 by 12, 14 feet 2 by 12, 16 feet 2 by 12, 18 feet 2 by 12, 20 feet 2 by 12, 22 feet 2 by 12, 24 feet 2 by 2 random, 8 to 16 feet.. 2 by 3 random, 8 to 16 feet.. 2 by 4 random , 8 to 16 feet. . 2 by 6 random, 8 to 16 feet.. 2 by 8 random, 8 to 16 feet.. 2 by 10 random, 8 to 16 feet. 2 by 12 random, 8 to 16 feet. Price. S28. 50 26.50 .26.50 26.50 28.50 28.50 30.00 30.00 29.00 27.00 27.00 27.00 29.00 29.00 30.60 30.50 30.50 29.00 29.00 29.00 30.50 30.50 32.00 32.00 28.00 26.50 27.00 25. 50 26.50 27.00 29.00 i Dimensions S1S1E. For D. & M. or shiplap add $1 per thousand feet. For S4S add 50 cents. For dimen- sions over 24 feet add $1 for each 2 feet up to and including 32 feet. The above prices are for simple working, BOW standard in manufacture. All above items 50 cents per thousand less if rough. 1 by 3 random lengths, E. G. flooring No. 2 $51. 50 1 by 4 random lengths, B. G. flooring No. 2 49. 50 1 by 4 random lengths, flooring No. 2 37. 50 1 by 4 random lengths, flooring No. 3 34. 50 1 by 4 random lengths, flooring No. 4 26. 50 1 by 6 random lengths, flooring No. 2 40. 00 1 by 6 random lengths, flooring No. 3 35. 00 1 by 6 random lengths, flooring No. 4 27. 50 1 by 3 to 6 inches, random lengths, flooring No. 4 27. 00 1 by 4 to 6 inches, random lengths, flooring No. 4 '. 27. 00 i by 4 random lengths, ceiling No. 2 35. 50 i by 4 random lengths, ceiling No. 3 32. 50 i by 4 random lengths, ceiling No. 4 25. 50 I by 4 random lengths, ceiling No. 2 38. 50 1 by 4 random lengths, ceiling No. 3 35. 00 1 by 4 random lengths, ceiling No. 4 26. 50 1 by 6 random lengths, drop siding No. 2 38. 50 1 by 6 random lengths, drop siding No. 3_ 34. 50 1 bv 6 random lengths', drop siding No. 4 28. 50 Width and length. Description. Price. 1 by 4, random lengths ! Finish, No. 2 $39. o 1 by 6, random lengths do 40. 50 1 by 8, random lengths I do 40. 50 1 by 10, random lengths ! do 41. 50 1 by 12, random lengths < do 42. 50 1 by 4 to 12, random lengths do 40.50 1 by 4, random lengths I Finish, " C " or No. 3 35. 50 1 by 6 and 8, random lengths ' do 1 by 1 0, random lengths i do 39. 00 1 by 12, random lengths i . . . .^do 39. 50 1 by 4 to 12, random lengths [.'. . .~7cto 37. 50 For specified lengths- of finish add SI per M feet. For i S4S add 50 cents; if rough deduct 50 cents. 1 by 2, random lengths SIS or S2S, No. 3 1 by 3, random lengths do 1 by 4, random lengths I do 30.50 GOVERNMENT REGULATIONS RELATING TO PRICES. 775 Width and length. Description. Price. 1 by 6, random lengths SIS or S2S, No. 3 .. $31.50 31.50 31.50 34.50 26.50 27.50 25.50 26.50 27.50 27.50 29.50 27.50 45.50 47.50 45.50 47.50 22.50 23.00 23.50 23.50 24.00 23.00 1 by 8' random lengths .do. 1 by 10 random lengths do 1 by 12, random lengths. ...do 1 by 2, random lengths SIS or S2S, No. 4 1 by 3' random lengths do do 1 by 6, random lengths ...do... 1 by 8 randomlengths do do 1 by 12 randomlengths do ... do For specified lengths of 1 inch. No. 3 and No. 4, add 50 cents, except 16-foot add $1 ; for D. & M.and shiplap add 50 cents; if S4S add 50 cents. I 1 by 4 to 10 inches 10 to 16 feet S2S No. 2 H by 4 Q 12irches 10 to 16 feet do I 1 by 4 to lOinches'lOto 16 feet do 1-i by 12 inches 10 to 16 feet .do l~by 4 randomlengths SIS or S2S, culls, R.Ht do 1 by 8 randomlengths do do ... do 1 by 4 to 12 inches random lengths do Add 50 cents to above if S4S, D. & M., or shiplap. All above items 50 cents less if rough. Width and lengths. 10 to 20 feet. 22 and 24 feet. 26 feet. 28 feet. 30 feet. 32 feet. 3 by 4 and 4 by 4 $29 50 $30. 50 $31.50 $32.50 $33.50 $34.50 3 by 6 to 8 by 8 28.50 29.50 30.50 31.50 32.50 33.50 3 by 10 and 4 by 10 . 32.50 33.50 34.50 35.50 36.50 37.50 5 by 10 to 10 by 10 31.50 32.50 33. 50 34.50 35.50 36.50 3 by 12 to 5 by 12 34.50 35.50 36.50 37.50 38.50 39.50 6 by 12 to 12 by 12 33 50 34 50 35 50 36 50 37.50 38.50 2byl2to5byl4 39.50 40.50 41.50 42.50 43.50 44.50 6 by 14 to 8 by 14. . 39.00 40 00 41.00 42.00 43.00 44.00 10 by 14 to 14 by 14 38.50 39.50 40.50 41.50 42.50 43.50 The above prices are for short-leaf dimension. For merchantable add $3 per thousand for 10 inches and under. For merchantable add $2 per thousand for 12 inches and over. All prices are based on furnishing- rough. For dressing 3-inch plank and small timbers up to and including 6 by 6, add 50 cents per thousand feet. For S4S add $1 per thousand. For dressing 6 by 8 and larger, add $1 per thousand feet. For timbers over 14 inches, add $3 for each 2 inches above 14 inches. For timbers over 32 feet, add $1 for each foot. For tongue and grooved or shiplapping timbers, add $2 per thousand, 3 inches and over. For grooving timbers 5 inches thick or thicker for splines, add $5 per thousand to the above dressed prices. For grooving timbers, 3 and 4 inches thick, for splines, add $3 to above dressed prices. For beveling and outgauging, add $2 per thousand feet. All prices f. o. b. Norfolk or Richmond (Virginia gates). War tax not to be paid by shipper. NOTE. Prices on all orders destined to points south of Norfolk are to be based on Norfolk list, with freight allowed from shipping point to Norfolk. (June 28, 1918.) After considering the information submitted by the Federal Trade Commis- sion as to the cost of manufacturing long and short leaf pine lumber produced in the States of Virginia and North and South Carolina and the information submitted by the representatives of the manufacturers thereof at the hearings held on this date, June 28, 1918, at which their request for readjustment of prices on their products was heard, the price-fixing committee appointed by the President has determined, by agreement with the said representatives of the manufacturers of long and short leaf pine lumber in Virginia and North and South Carolina, upon the following maximum prices for such lumber. 776 HISTORY OF PRICES DURING THE WAR. These maximum prices shall not be exceeded on any sales and contracts for sale (for mill shipment) made during the period of three months beginning midnight June 28, 1918, either to the public, to the Government, to Govern- ments of the nations associated with us in the present war, or to the railroads, whether by rail or by water shipment. Prices of all long and short leaf pine lumber in the States of Virginia and North and South Carolina shall not exceed the item prices named on attached list. These prices are for long and short leaf pine lumber delivered (freight allowed) to Norfolk, Richmond, and other Virginia gateways. For shipments to destination points north of and beyond these gateways these prices are for such portion of freight allowed to destination points as will equal shipments originating in above gateways. For shipments to destination points south of these gateways the f. o. b. cars mill or f. o. b. vessel, rail mill prices shall be $2.50 per thousand less on each item than prices named on attached list. Prices on items not covered by above list shall be priced on basis of nearest comparable item. The usual trade practices shall continue, including cash discounts to be applied to the United States Government purchases as well as all others, ex- cept that in commercial transactions where purchasers do not avail themselves of the cash discounts the accounts may be converted into trade acceptances which do not bear interest before maturity. The custom of delivered prices of lumber to purchasers' destination points shall remain unchanged. Contracts for the sale of lumber entered into in good faith prior to midnight June 28, 1918, and enforcible at law, will be performed in accordance with their terms, subject, of course, to orders received from the Government which may require priority. It is imperative that, with the least possible disruption of the industry, the vast war needs of the Government, both direct and indirect, for long and short leaf pine lumber from Virginia and North and South Carolina be supplied on a fair basis, that an adequate supply and equitable distribution thereof be assured for essential -commercial needs, that the movement thereof be facili- tated, and that injurious speculation therein be prevented. Therefore the pro- cedure outlined below, by agreement with the representatives of the manufac- turers of long and short leaf pine lumber from above-mentioned States, has been adopted for a period of three months beginning midnight June 28, 1918. The procedure is that each manufacturer of long and short leaf pine lumber in Virginia and North and South Carolina shall (1) Make contracts and accept orders for his product at prices not in excess of the applicable maximum prices, always subject to an option at the appli- cable maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option, which will cover all long and short leaf pine lumber from above-mentioned States down to actual delivery to the purchaser, the War Industries Board, to any extent required, will allocate either to the Government or to other essential users. Any balance not so allocated will be released for sale to commercial buyers, but at prices no greater than those determined upon as above set forth. (2) Comply with the directions of the War Industries Board as issued from time to time with reference to filling commercial requirements in the order of their public importance and to furnishing such information and making such reports as may be required. (3) Keep up to the best of his ability the production of long and short leaf pine lumber in Virginia and North and South Carolina, so as to insure an ade- quate supply so long as the war lasts. (4) Neither reduce the scale of wages now being paid nor change funda- mental labor conditions now in force. GOVERNMENT REGULATIONS RELATING TO PRICES. 777 The Government will appportion the car supply available for lumber and arrange for its transportation, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war- time conditions be neutralized so far as may be. Foreign trade, except to the Government of nations associated with us in the present war, is not to be affected by this ruling. These prices are for long and short leaf pine lumber delivered (freight allowed) to Norfolk, Richmond, and other Virginia gateways. For shipments to destination points north of and beyond these gateways these prices are for such portion of freight allowed to destination points as will equal shipments originating in above gateways. For shipments to destination points south of these gateways the f. o. b. cars mill or f. o. b. vessel rail mill prices shall be $2.50 per thousand less on each item than prices named on attached list. Effective June 28 to and including September 28, 1918. No. 1. No. 2. No. 3. No. 4. Cull. 1 by 3 and Z\ flooring $43.00 42.00 $41. 00 40.00 $36.50 36.50 37.00 37.50 36.00 37.50 37.50 24.00 25.50 28.50 30.00 $32.00 32.00 33.50 34.50 32.00 32.00 32.00 21.00 22.50 24.00 26.00 ' by 4 and 4 J flooring .... I by 5 and 5| flooring 1 by 6 flooring I by 2J to 5-i flooring $20.00 1 J by 1\ and 3 flooring 47.00 47.00 27.50 29.00 31.50 34.00 43.00 43.00 44.00 46.00 45.00 30.00 32.00 45.00 45.00 26.00 27.50 30.00 32.50 41.00 41.00 42.00 44.00 42.00 28.00 30.00 IJ by 3J and 4 flooring | by 2k inch to 3^-inch ceiling v by 2-V inch to 3J-inch ceiling by 2*- inch to 3j-inch ceiling and |f- inch, 2 J to 3;j inch ceiling f by 2;} and 3 partition 37.00 37.50 38.00 37.50 26.00 28.00 34.50 -f by 3J, 4, and 4 partition f by 5 and 5i partition by 6 inch drop or O G. siding 34.50 22.00 24.00 Bevel siding from 1-inch stock Bevel siding from IJ-inch stock Add $1 per thousand feet for specified lengths. Deduct $1 per thousand for air dried (Oct. 1, 1918). Boards. Iby3. Iby4. Iby6. Iby8. 1 by 10. 1 by 12. 1 by 4 to 12 inches. No. 3 SI or 2S . $36. 00 $36. 00 $37.00 $37. 00 $37 00 $40 00 $37 00 No 4 SI cr 2S . 31.50 31.50 34.00 34 00 35 00 36 50 33 50 Culls and red hearts 28 50 28 50 29 00 26 00 Dunnage . 20 50 No. land 2 bark strips and mis- cuts, SI or 2S 34 00 No. 3 and 4 bark strips and mis- cuts, SI or 2S... 24.00 For 1-inch Nos. 3 and 4 in specified lengths add 50 cents, except 16-foot, add $1. Rough 50 cents less than S2S ; S4S, D. and M., or shiplap add 50 cents to S2S prices. For resawing add $1 per thousand. Nos. 1 and 2 bark strips, when worked to partition, add to above S2S price $2 per thousand feet. Boards, when ordered kiln dried, add $1 per thousand feet. For D. and M. beaded, 8 inches and wider, add $2 to S2S price (Oct. 1, 1918). Finish S2S. No. 1. No. 2. No. 3. No. 4. 1 by 4 to 12 random $43 50 $41 50 1 by 4 rand'om . . 43.50 41.50 1 by 6 random 44 50 42 50 45 50 43 50 1 by 10 random 46.00 44.00 1 by 12 random 47 50 45 50 5/4 by 4 to 12, random 47.50 45.50 $39.00 $34.50 5/4 by 6 rand'om 48.50 46.50 39.00 35.00 5/4 by 8 random 49 50 47 50 39 00 35 00 5/4 by 10, random 50.00 48.00 39.00 36.00 5/4 by 12 random ... 51 50 49.50 42.00 37.50 6/4 by 4 to 12 random 48 50 46 50 41 00 35 00 6/4 by 6, random . 49.50 47.50 41.00 35.50 f/4 by 8 random 50.50 48.50 41.00 35.50 6/4 by 10 random 51 00 49 00 41 00 36.50 6/4 by 12, random... 54.50 52.50 44.00 38.00 778 HISTORY OF PRICES DURING THE WAR. Finish S28. No. 1. No. 2. NO. 3. No. 4. 8/4 by 4 to 12, random. . $49 50 $47 50 41 00 8/4 by 6, random . . . 50 50 48 50 41 00 8/4 by 8 random 51 50 49 50 41 00 8/4 by 10, random 52 00 50 00 41 00 8/4 by 12 random 53 50 51 50 44 00 Molded casing and base from 1 by 4, 6 and 8 inch stock 50.00 47.00 Molded casing and base from 1 by 5 and 10 inch stdck 52.00 49.00 Jambs from 4/4 stock 50 00 47 00 Jambs from 5/4, 6/4, and 8/4 stock 53 00' 50 00 The above prices are foi- S2Sfinish ; for S4S, add 50 cents per thousand feet. For specified lengths, add $1 per thousand feet ; for rough, deduct 50 cents per thou- sand feet. Moldings, Ig-inch width and smaller, 52 per cent discount; moldings, lg inches and wider, 47 per cent discount. Laths, No. 1, 4.75 ; laths, No. 2, $3.75. Dimensions. 10, 12, 14, and 16 feet. 18 and 20 22 and 24 feet. feet. Random. 2 by 2 S1S1E $31 00 S33 00 $34 50 30 50 2 by 3 S1S1E 29 50 30 50 32 00 29 00 2 by 4 S1S1E 30 00 32 00 33 50 29 50 2 by 6 S1S1E 28 50 29 50 31 00 28 00 2 by 8 S1S1E 29 50 31 50 33 00 29 00 2 by 10 SlSlE 30 00 32 00 33 50 29 50 2 by 12 S1S1E. 32 00 33 50 35 00 31 50 Dimension when ordered kiln dried, add $2 per thousand feet. Dimension D. & M. or shiplap, add $1 per thousand to S1S1E prices; rough, 50 cents less than S1S1E prices; S4S, add 50 cents per thousand to S1S1E. prices. For dimension over 24 feet, add $1 for each 2 feet up to ?>2 feet. For merchantable longleaf 10 inches and under wide, add $3 per thousand foot. For merchantable longleaf 12 inches and over wide, add $2 per thousand feet. (Oct. 1, NOTE. All lumber not over 2 inches thick when ordered in odd or fractional lengths will be invoiced as of next longer length in multiples of 2 feet. Timbers. 10 to 20 feet. 22 and 24 feet. 26 feet. 23 feet. 30 feet. 32 feet. 3 by 4 and 4 by 4 $33 00 $34 00 $35 00 36 00 $37 00 $38 00 3 by 6 to 8 by 8 32.00 33.00 34.00 35.00 36.00 37.00 3 by 10 to 4 by 10 36.00 37 00 38 00 39 00 40 00 41 00 5 by 10 to 10 by 10 35.00 36.00 37.00 38.00 39.00 40.00 3 by 12 to 5 by 12 38 00 39 00 40 00 41 00 42 00 43 oo 6 by 12 to 12 by 12 37. 00 38.00 39.00 40.00 41.00 42.00 3 by 14 to 5 by 14 43 00 44 00 45 00 46 00 47 00 48 00 6 by 14 to 8 by 14 42.50 43.50 44.50 45.50 46.50 47.50 10 by 14 to 14 by 14 42 00 43 00 44 00 45 00 46 00 47 00 Add for timbers over 14 inches $3 for each 2 inches over 14 inches. Add for timbers over 32 feet $1 for each foot over 32 feet. Prices above are for short-leaf dimensions rough ; for better qualities and various working apply the following differentials : For long leaf No. 1 common add $2 per thousand feet. For merchantable 10 inches and smaller add $3 per thousand to No. 1 long-leaf price. For merchantable 12 inches and larger add $2 per thousand to No. 1 long-leaf price. For prime rule of 1905 add $5 to No. 1 long-leaf price. Add for dressing $1 per thousand feet. Add for T. & G. or shiplap $2 per thousand feet. Add for grooving $3 per thousand to dressed price stock 3 and 4 inches thick. 'Add for grooving $5 per thousand to dressed price stock 5 inches and thicker. Add for bevelling and outgauging $2 per thousand feet to dressed prices. NOTB. AH timber when ordered in odd or fractional lengths will invoice as of next longer length a multiple of 2 feet. PENNSYLVANIA HEMLOCK, The original price schedules for Pennsylvania hemlock were announced by the emergency bureau on April 6, 1918, and were approved by the price-fixing committee on May 8, 1918. The base price was $27 per thousand board feet. This base price was increased on August 15, 1918, to $29 per thousand, and the price lists rearranged accordingly. On October 16 revision was postponed and existing prices were continued until December 20, 1918, when all restrictions were removed. GOVERNMENT REGULATIONS RELATING TO PRICES. 779 (May 8, 1918, to Aug. 8, 1918.) The price-fixing committee of the War Industries Board passed the following ruling on May 8, 1918, covering the maximum prices for mill shipment of Pennsylvania hemlock lumber : " The price of $31 per thousand feet f. o. b. cars Philadelphia which has been in force since April 6, 1918, shall be continued in effect as the basic maximum price of Pennsylvania hemlock lumber to all departments of the Government until August 8, 1918." At the same time the following rules with reference to the prices of No. 1 and No. 2 grades of Pennsylvania hemlock were promulgated : 1. That the system of delivered prices be discontinued; and that there be substituted as basic maximum the price of $27 per thousand feet f. o. b. mill, with variations according to the appended schedule. 2. That the entire stock and production of Pennsylvania hemlock, grades Nos. 1 and 2, will be held available for the direct and indirect needs of the Govern- ment in the war, and will be distributed and dealt in subject to the control of the War Industries Board. 3. That such of the lumber as, in the judgment of the chief of the lumber sec- tion of said board, can without detriment to governmental requirements bo released for urgent commercial or other needs, may be sold to car-lot pur- chasers (with his consent) at prices which, per item, shall not exceed the prices as established by the appended schedule. 4. This arrangement shall continue effective until August 8, 1918. SCHEDULE OP VARIATION FROM BASE OF $27 PER M FEET, BOARD MEASURE IN CARLOAD LOTS. NO. 1 SIZES. 2 by 3: 10 feet (ripped from 2 by 6), add $1. 00 12 and 14 feet, add 1. 00 16 feet, add 3. 00 18 and 20 feet, add 5. 50 2 by 4: 8 feet, L. R., deduct 2. 00 9 feet, L. R., when in stock, add_ 2. 00 10 feet 12 feet 14 feet 16 feet, add 3. 00 18 and 20 feet, add 4. 50 22 and 24 feet, add 5. 50 2-inch sizes, No. 2, $2 per M less than same size in No. 1. 2 by G to 2 by 12 : 10 feet, when in stock, add 12 and 14 feet 16 feet, add 1. 50 18 and 20 feet, add 3. 50 22 and 24 feet, add 5. 50 26 and 28 feet, add 6. 50 30 and 32 feet, add 7. 50 34 and 36 feet, add 9. 50 38 and 40 feet, add 11. 50 3 by 4 to 12 by 12 : add 50 cents per M feet to price of 2 by 6 to 2 by 12, same lengths. NO. i BOARDS. 1 by 6 : 10, 12, and 14 feet 16 feet, add 18 and 20 feet, add 1 by 8: 10, 12, and 14 feet 16 feet, add 18 aud 20 feet, add 1 by 10 : 10, 12, and 14 fer-t, add 16 feet, add 15 aud 20 feet, add 1 by 12 : 12 feet, add 10 and 14 feet, add 16 feet, add 18 and 20 feet, add 5/4 and 6/4, add $2 to price of same width. $5. 00 4. 00 2.00 3. 50 1. 50 5. 00 5. 00 4.50 2. 00 6.00 0. 00 boards NO. 2 BOARDS. 1 by 6, 8 to 18, rough or SIS, deduct. $1. 00 1 by 8, 8 to 18, rough or SIS 1 by 10, 8 to 18, rough or SIS, add- . 50 1 by 12, 8 to 18, rough or SIS, add- . 5~0 NO. 3 BOARDS. 1 by 6 to 12 : 8 to 18, rough or SIS, deduct $4. 00 LOG RUN BOARDS. 1 by 4, 8 to 16, rough or SIS, deduct- $4. 00 1 by 6 to 12, 8, rough or SIS, deduct _ 3 00 1 by 6 to 12, 10, SIS, deduct DRESSED AND MATCHED BOARDS. 1 by 4, 8 to 16 feet, No. 1 (25 per cent 10 feet), add $1.00 1 by 6, 10 feet, No. 1 1 by 6, 8 to 18 feet, No. 2 1 by 8, 8 to 18 feet, No. 2 1 by 6, 10 to 16 feet, No. 1 (25 per cent 10 feet), add 3. 00 ROOFING LATH. 1 by 2, 1 by 21, and 1 by 3, 10 to 16 feet, add . $5.00 SPECIAL SIZES. For each inch over 12 inches in width in timber and plank add 50 cents per M. ; 5 inches, 7 inches, 9 inches, and 11 inches sawed to order, .$1 per M. extra. PRICES FOR WORKING LUMBER. \ Saw sized or SlSlE__per M $1. 75 Dressing 1 or 2 sides (except L. R. No. 2 and 3 boards) per M 1.50 Ship lap or matching (except as specified under D and M. boards- _ per M__ 2. 00 Joicts worked to flooring, or grooved 2 edges, or dressed 4 sides_per M 2. 00 780 HISTORY OF PRICES DURING THE WAR. (Aug. 15, 1918.) The price-fixing committee of the War Industries Board announces a base price of $29, an increase of $2 over, the former price of Pennsylvania hemlock lumber. The entire output of No. 1 and No. 2 grades will probably be required by the Government, and the stock will be distributed subject to the control of the War Industries Board. Following is the official announcement : "After considering the information submitted by the Federal Trade Commis- sion as to the cost of hemlock-lumber production in the State of Pennsylvania, and the information submitted by the representatives of the manufacturers of such lumber at a hearing granted them on Wednesday, August 14, 1918, the price-fixing committee of the War Industries Board, by agreement with the producers, passed a ruling fixing a maximum base price for mill shipments of Pennsylvania hemlock lumber at $29 per thousand feet, f. o. b. cars shipping point, sucli price to become effective midnight August 15, 1918, and to remain in effect to and including October 20, 1918. . " The following companies, producing the greater part of Pennsylvania hem- lock lumber, were present at the hearing : Goodyear Lumber Co., Norwich, Pa. ; Wheeler & Dusenbury, Endeavor, Pa. ; Pennsylvania Lumber Co., Killettsville, Pa. ; Central Pennsylvania Lumber Co., Williamsport, Pa. " By reason of the construction program of the various governmental depart- ments, it is apparent that the Government will require substantially the entire output of No. 1 and No. 2 grades of Pennsylvania hemlock. It was, therefore, agreed at the hearing by all of the above manufacturers: "(1) That their entire stock and production of Pennsylvania hemlock, grades Nos. 1 and 2, will be held available for the direct and indirect needs of the Government in the war, and will be distributed and dealt in subject to the control of the War Industries Board. "(2) That such of the foregoing lumber as, in the judgment} of the chief of the lumber section of said board, can, without detriment to governmental requirements, be released for urgent commercial or other needs may be sold to car-lot purchasers (with his consent) at prices which, per item, shall not exceed the prices as established by the attached list." The " attached " list referred to above contains the item prices, which are unchanged from the old list, except that they apply to the new $29 base. 2 by 3 : NO. 1 SIZES. 10 feet (ripped from 2 by 6)__ $30. 00 32 and 14 feet__ 30. 00 16 feet 32. 00 18 and 20 feet 34. 50 2 by 4: 8 feet, L. R 27. 00 9 feet, L. R. (when in stock). 31. 00 10 feet 29. 00 12 feet 29. 00 14 feet 29. 00 16 feet__ 32. 00 18 and 20 feet 33. 50 22 and 24 feet 34. 50 2 by 6 to 12 by 12 : 10 feet (when in stock) 29.00 12 and 14 feet 29. 00 16 feet__ 30. 50 18 and 20 feet 32. 50 22 and 24 feet__ 34. 50 26 and 28 feet 35. 50 30 and 32 feet 36. 50 34 and 36 feet 38. 50 38 and 40 feet 40. 50 3 by 4 to 12 by 12, add 50 cents per M feet to price of 2 by 6 to 2 by 12, same lengths. 2-inch sizes, No. 2, $2 per M feet less than same size in No. 1. NO. i BOARDS. 1 by 6 : 10, 12, and 14 feet $29. 00 16 feet 34. 00 18 and 20 feet 33. 00 1 by 8: 10, 12, and 14 feet___ 29. 00 16 feet 31. 00 18 and 20 feet 32. 50 1 by 10 : 10, 12, and 14 feet 30. 50 16 feet 34. 00 18 and 20 feet 34. 00 1 by 12 : 12 feet 33. 50 10 and 14 feet 31.00 16 feet 35. 00 18 and 20 feet 35. 00 5/4 and 6/4, add $2 to price of boards same width. NO. 2 BOARDS. 1 by 6, 8 to 18, rough or SIS $28. 00 1 by 8, 8 to 18, rough or SIS 29. 00 1 by 10, 8 to 18, rough or SIS 29. 50 1 by 12, 8 to 18, rough or SIS 29. 50 NO. 3 BOARDS. 1 bv 6 to 12, 8 to 18 feet, rough or S1S_. $25.00 GOVERNMENT REGULATIONS RELATING TO PRICES. 781 LOG RUN BOARDS. 1 by 4, 8 to 16, rough or S1S__ _ $25. 00 1 by 6 to 12, 8, rough or S1S__. 26. 00 1 by 6 to 12, 10, rough or SIS 29. 00 DRESSED AND MATCHED BOARDS. 1 by 4, 8 to 16 feet (25 per cent, 10 feet), No. 1 $30.00 1 by 6, 10 feet, No. 1 29. 00 1 by 6, 10 to 16 feet (25 per cent, 10 feet), No. 1 32.00 1 by 6, 8 to 18 feet, No. 2__ 29. 00 1 by 8, 8 to 18 feet, No. 2 29. 00 ROOFING LATH. 1 by 2, 1 bv 21, and 1 by 3, 10 to 16 foot_l__: $34.00 PP.ICES FOR WORKING LUMBER. (Per M feet.) Paw sizes or S1S1E__. $1.75 Dressing 1 or 2 sides (except L. R. and Nos. 2 and 3 boards) 1.50 Ship-lap or matching (except as specified under D. and M. boards)- 2. 00 Joists worked to flooring, or grooved 2 edges, or dressed 4 sides 2. 00 SPECIAL SIZES. For each inch over 12 inches in width in timber and plank add 50 cents per M; 5 inches, 7 inches, 9 inches, and 11 inches, sawed to order, $1 per M extra. SOUTHERN OR YELLOW PINE. Informal arrangements. The lumber committee of the Council of National Defense made an informal agreement with the Southern Pine Association on June 13, 1917. This agreement covered items of lumber necessary for the build- ing of cantonments. The average price for the grades required was $20 per thousand board feet. On September 11, 1917, a voluntary reduction of $1 per thousand was made on 1-inch boards and 50 cents per thousand on 2- inch dimensions. Another reduction of approximately 50 cents per thousand became effective October 10, 1917. A third reduction in November made a total average reduction of $1.65 per thousand board feet. On November 21, 1917, the War Industries Board, upon the recommendation of the lumber committee, 1 approved lumber prices for a period up to December 10, 1917. The price then in effect was equivalent to $23.20 per thousand feet mill run. These prices were published on January 28, 1918, by the southern emergency bureau and by the Alabama and Mississippi emergency bureau. No action was then taken by any Government agency until March 21, 1918, when the price-fixing committee decided not to grant an advance in price. Dur- ing the period of agreement the prices were fixed to the Government only. In June, 1918, the industry asked for another advance in prices with permis- sion to apply the fixed price to Government purchases only. Mr. Baruch on this occasion stated that " the President was emphatic upon the point that the prices fixed should apply both to the Government and to the public, even if the Government had to suffer thereby." 2 The price-fixing committee then fixed the price of yellow pine, effective June 15, 1918, at $28 per thousand board feet to both civilian and Government pur- chasers. The ne\v schedules on this basis represented an advance of approxi- mately $4.80 per thousand over the former price lists. Except for minor modifications, these schedules were reviewed again in September, 1918, and remained in force until December 23, 1918, when control ceased. At that time the following notice was sent by the lumber division of the War Industries Board to the southern lumber administrator : Regarding status of unshipped orders entered since June 14, 1918, at the expiration of the present leases, December 23, 1918, Government orders will be subject to rate negotiation as to prices. Commercial orders entered during the above period at agreed-upon item prices will not be affected. 3 1 Minutes of the War Industries Board, Nov. 21, 1917. 2 Minute Book V of the price-fixing committee, meeting of June 13, 1918. 3 Federal Trade Information Service, Dec. 23, 1918. 782 HISTORY OF PRICES DURING THE AVAR. (Nov. 11, 1917, to June 15, 1918.) Government yellow pine or southern pine maximum prices covering States of Missouri, Arkansas, Texas, Oklahoma, Louisiana, Mississippi, Tennessee, and Alabama, and that part of Florida tying west of the east line of Alabama if continued to the Gulf: B and better rift. B and better. No. 1 common. No. 2 common. 1 by 3 flooring $44 00 $32.00 $29 00 $19 00 1 by 4 floorin^ 42 00 30 00 27 00 19 00 1 by G flooring 32. 50 27.50 20 00 1 by 3 to G inches flooring 19 50 1 by 4 and 6 inciies flooring. 19.50 by 4 ceiling 2S 00 25 00 IS 00 | by 4 ceiling 31.00 27.50 19.00 1 by 6 drop sidin' 1 ' 31.00 27.00 21.00 B and better. "C." No. 1 common. 1 bv 4 random lengths $31 50 $28 00 1 by 6 a>nd 8 inches^ random lengths 33 00 30.00 1 by 10 random lengths 31 00 31 50 1 by 12, random lengths 35.00 32.00 1 by 4 to 12 random lengths 33 00 30 00 1^ by 4 to 8 inches, random, lengths ,.... 38.00 $31.00 I 1 by 10 and 12jnches random lengths 40.00 33 00 l| by 4 to 8 inciies, random len^hs 38.00 31.00 ll by 10 and 12 inches random lengths 40.00 33 00 2*by"4 to 8 inches, random lengths 38. 00 2 by 10 and 12 inches random lengths 40 00 The above prices are for S2S finish ; for S4S add 50 cents per thousand feet ; for specified lengths add $1 per thousand feet ; for rough deduct 50 cents per thousand feet. Boards. Iby2. Iby3. Iby4. Iby 6. I by 8. 1 by 10. 1 by 12. 1 bv 4 to 12. No. 1 SI or 2S . $24.00 $25. 00 $23.00 $24.00 $24.00 $24.00 $27.00 No 2 81 or 23 19 00 20.00 18.00 19.00 20.00 20.00 22 00 $20 00 No. 3 SI or 23 . 15.00 15.50 16.00 16.00 1G.50 15.50 For 1 inch No. 1 and No. 2 in specified lengths add 50 cents, except 16 feet and $1 : rough 50 cents less than S2S ; S4S, D. & M. or shiplap add 50 cents to S2S prices. For resawing add $1 per thousand feet. Dimension. 10, 18, and 20 feet. 12, 14, and 16 feet. 22 and 24 leet. Random. 2 by 2 No 1 common S1S1E $22 50 S20 50 24 00 $20 50 2 by 3 No. 1 common, S1S1E .. 20.09 19.00 21.50 19.00 2 by 4 No 1 common S1S1E 21 50 19 50 23 00 19 50 2 by 6 No. 1 common, S1S1E 19.00 18.00 20 50 18.00 2 by 8 No 1 common, S1S1E 21.00 19 00 22 50 19 GO 2 by 10 No. 1 common, S1S1E 21.50 19.50 23.00 19.50 2 by 12 No. 1 common, SIS IE 23.00 21.50 24 50 21 50 2 by 2 No. 2 common, S1S1E 21.00 19.00 22.50 19.00 2 by 3 No. 2 common, S1S1E . . 18 50 17 50 20 00 17.50 2 by 4 No 2 common, S1S1E 20 00 18 00 21 50 18 00 2 by 6 No. 2 common, S1S1E 17.50 16 50 19 00 16.50 2 by 8 No 2 common, S1S1E 19 50 17 50 21 00 17 50 2 by 10 No. 2 common, S1S1E . . . 20.00 18.00 21.50 18.00 2 by 12 No. 2 common, S1S1E 21 50 20 GO 23 00 20 00 No. 3 common, S1S1E, 8 to 20 feet: 2 by 4 and 8 inches, $13 ; 2 by 6, $12.50; 2 by 10, $13.50 ; 2 by 12, $14. For D. & M. or shiplap add $1 per thousand to S1S1E prices ; rough 50 cents less than S1S1E prices; for S4S dimension add 50 cents per thousand to S1S1E prices; for No. 1 dimension over 24 feet add $1 for each 2 feet tip to 32 feet. GOVERNMENT REGULATIONS RELATING TO PRICES. 783 3 by 4 and 4 by 4. . 3 by 6 to 8 by 8.... 3 by 10 to 4 by 10. . 5 by 10 to 10 by 10. The above prices on short and on long leaf rough No. 1. 3 by 12 to 5 by 12 6 by 12 to 12 by 12.. 2 by 14 to 5 by 14 6 by 14 to 8 by 14..... 10 bv 14 to 14*by 14... 10 to 20 20 feet. 20.00 19.00 23.00 22.00 25.00 24.00 30.00 29.50 29.00 22 and 24 feet. 26 feet. 321. 00 20.00 24.00 23.00 20. 00 25.00 31.00 30.50 30.00 822. 00 21.00 25.00 24.00 27.00 26.00 32.00 31.50 31. 00 28 feet. $23. 00 22.00 26.00 25.00 28.00 27.00 33.00 32.50 32.00 30 feet. 24. 00 23.00 27.00 26.00 29.00 28.00 34.00 33.50 33.00 32 feet. S25. 00 24.00 28.00 27.00 30.00 29.00 35.00 34.50 34.00 The above prices are for short-leaf No. 1 common ; for long-leaf timbers No. 1 common 12-inch and 14-Luch face add $2 per thousand to prices shown above. For merchantable add $3 per thousand for 10 inches and under. For merchantable add $2 per thousand for 12 inches and over. All prices on the above are based on furnishing rough. For dressing 3-inch plank 4 inches and wider and small timbers up to and including (5 by 6 add 50 cents per thousand. For dressing 6 by 8 and larger add $1 per thousand. For timbers over 14 inches, add $3 for each 2 inches above 14 inches ; for timbers over 32 feet, add $1 for each foot ; for tongue and grooved or shiplapping timbers, add $2 per thousand for 3 inches and over; for grooving timbers 5 inches thick or thicker for splines, add $5 per thousand to above dressed prices ; for grooving timbers 3 and 4 inches thick for splines, add $3 to above dressed prices ; for beveling and outgaging, add $2 per thousand feet. EXPORT PRICES. [Grading as per Gulf coast specifications of 1910.] PRIME. 1-inch random widths and lengths $43.00 IJ-inch random widths and lengths 48. 00 li-inch random widths and lengths 48. 00 2-inch random widths and lengths 48. 00 GENOA OK KIO PRIME DEALS. 3 to 5 inches thick, 4 to 8 inches wide, 16 feet and up to average 24 feet 27. 00 3 to 5 inches thick, 9 and 10 inches wide, 16 feet and up to average 24 feet 31. 00 3 to 5 inches thick, 11 and 12 inches wide, 16 feet and up to average 24 feet 35. 00 MERCHANTABLE SAWN TIMBERS. Regular cubic average : 30 cubic $31.00 321 cubic 32. 50 35 cubic 34. 00 37J cubic 35. 00 40 cubic 37. 50 M. C. B. CAK SIDING PATTERN. 1 by 4 and 6 inches, B. and better : 5 feet $30. 00 8 or 16 feet 32.00 9 or 18 feet 36. 00 10 or 20 feet 35.00 M. C. B. CAR LINING AND ROOFING PATTERN. 1 by 4 and 6 inches, B. and better, 5 feet or multiples $33. 00 1 by 4, random lengths, No. 1 27.00 1 by 6, random lengths, No. 1 27. 50 STANDARD CAR DECKING. 2 by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to 11 - $25. 00 2J by 6 and 8 inches-, 9, 10, 18, and 20 feet, dressed to 2J 26. 00 NO. 1 COMMON DIMENSION WORKED TO CAR DECKING. 2 by 6, 9, 10, 18, and 20 feet, dressed to 13 $21.00 2 by 8, 9, 10, 18, and 20 feet, dressed to if 23. 00 For heart-face decking, add $3 per thousand. CAR FRAMING. Long leaf merchantable grade S4S to J-inch scant and cut to length T T p to 8 inches, 20 feet and under $20. 00 10 inches, 20 feet and under 28. 00 12 inches, 20 feet and under 33. 00 14 inches, 20 feet and under 36. 00 784 HISTORY OF PRICES DURING THE WAR. CAR SILLS. For price on car sills, use timber list ; for price of construction timbers and caps, use timber list ; for 85 to 90 per cent cubical contents heart, add .$4 per thousand feet, No. 1 common long-leaf price ; for standard heart with special sap location, add $5 per thousand feet to No. 1 common Ions-leaf price ; for prices for States of Georgia and that part of Florida lying east of Alabama east line if continued to the Gulf, add $1 per thousand to all prices shown above. (June 14, 1918.) After considering the information submitted by the Federal Trade Commis- sion as to the cost of manufacturing southern or yellow pine lumber and the information submitted by the representatives of the manufacturers thereof at the hearings held on the 12th, 13th, and 14th of June, 1918, at which their request for a readjustment of prices on x their products was heard, the price- fixing committee appointed by the President has determined, by agreement with the said representatives of the manufacturers of southern or yellow pine lumber, upon the following maximum prices for such lumber. These maximum prices shall not be exceeded on any sales and contracts for sale (for mill ship- ment) made during a period of three months beginning midnight June 14, 1918, either to the public, to the Government, to governments of the nations associated with us in the present war, or the railroads, whether by rail or by water shipment. The prices of all southern or yellow pine lumber in the States of Missouri, Arkansas, Oklahoma, Texas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, and Florida shall not exceed the item prices named in attached list, except that in the first three States named above an additional price of $3 per thousand will be allowed on all items of short leaf soft pine C and better finish, casing, base, and jambs. Prices on items not covered by above list shall be priced on basis of nearest comparable item. The usual trade practices shall continue, including cash discounts to be applied to the United States Government purchases as well as all others, except that in commercial transactions where purchasers do not avail themselves of the cash discounts the accounts may be converted into trade acceptances which do not bear interest before maturity. The custom of delivered prices of lumber to purchasers' destination points shall remain unchanged, including the equalization of freight rates. Contracts for the sale of lumber entered into in good faith prior to midnight June 14. 1918, and enforcible at law, will be performed in accordance with their terms, subject, of course, to orders received from the Government which may require priority. It is imperative that, with the least possible disruption of the industry, the vast war needs of the Government, both direct and indirect, for southern or yellow pine lumber be supplied on a fair basis; that an adequate supply and equitable distribution thereof be assured for essential commercial needs; that the movement thereof be facilitated, and that injurious speculation therein be prevented. Therefore the procedure outlined below, by agreement with the representatives of the manufacturers of southern or yellow pine lumber, has been adopted for a period of three months beginning midnight June 14, 1918. The procedure is that each manufacturer of southern or yellow pine lumber shall (1) Make contracts and accept orders for his product at prices not in excess of the applicable maximum prices, always subject to an option at the appli- cable maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option, which will cover all southern or yellow pine lumber down to time of actual delivery to the purchaser, the War Industries Board, to any extent required, will allocate either .to the Govern- GOVERNMENT REGULATIONS RELATING TO PRICES. 785 ment or to other essential users. Any balance not so allocated will be released for sale to commercial buyers, but at prices no greater than those determined upon as above set forth. (2) Comply with the directions of the War Industries Board as issued from time to time with reference to filling commercial requirements in the order of their public importance and to furnishing such information and making such reports as may be required. (3) Keep up to the best of his ability the production of southern or yellow pine lumber, so as to insure an adequate supply so long as the war lasts. (4) Neither reduce the scale of wages now being paid nor change funda- mental labor conditions now in force. The Government will apportion the car supply available for lumber and arrange for its transportation, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war-time conditions be neutralized so far as may be. Foreign trade, except to the governments of* nations associated with us in the present war, is not to be affected by this ruling. GOVERNMENT MAXIMUM PRICE LIST. Government yellow pine" or southern pine maximum prices, effective midnight June 14 to and including September 14, 1918, covering States of Missouri, Arkansas, Texas, Okla- homa, Louisiana, Mississippi, Tennessee, Georgia, Florida, and Alabama : B and better heart rift. B and better rift. Band better. No.l common. No. 2 common. 1 by 3 flooring $54.00 66.00 52.00 63.00 $48.00 60.00 46.00 57.00 $36.00 48.00 34.00 46.00 36.50 i$34.00 $24.50 1J by 3 flooring 1 by 4 flooring . 132.00 24.50 l\ by 4 flooring 1 by 6 flooring . 133.00 25.50 25.00 25.00 22.50 23.50 24.50 1 by 3 to 6inch flooring 1 by 4 and6 inch flooring by 4 3 ei ling 30.50 32.00 35.00 37.00 39.50 35.00 25.00 27.50 29.00 30.50 33.00 34.00 36.50 32.5*0 23.00 25.50 bv 4ceiling " by 436iling by 4 partition by 6 partition by 6 drop siding ... 26.50 19.00 21.50 Bevelsiding from 1-inch stock Bevelsiding frojn 1 J-inch stock 1 Denotes grade as per rule on flooring. Add $1 per thousand feet for specified lengths. Finish S2S. Band better. c. No. 1 common. 1 by 4 random $35 50 $32 00 1 by 6 and 8 inch, random 37 00 34 00 1 by 10 random 38 00 35 50 1 by 12 random 39.00 36.00 1 by 4 to 12 inch random 37 00 34 00 IJby 4 to8-inch random 42.00 36 50 l| by 10 and 12 inch random 44 00 38 50 l| by 4 to 8 inch random 42 00 36 50 H by 10 and 12 inch random 44.00 38 50 2 by 4 to 8 inch random 42.00 2 by 10 and 12 inch random : 44.00 Molded casing and base from 1 by 4, 6 and 8 inch stock. . 43 00 Molded casing and base from 1 by 5 and 10 inch stock 45.00 Jambs from 4/4 stock 43.00 Jambs from 5/4 and 6/4 stock and 8/4 48.00 The above prices are for S2S finish; for S4S add 50 cents per thousand feet; for specified lengths, add $1 per thousand feet; for rough, deduct 50 cents per thousand feet. NOTE. C and better shortleaf finish, base, casing, and jambs manufactured in the States of Missouri, Oklahoma, and Arkansas may be sold at $3 per thousand higher than above prices. Moldings: 1 ineh width and smaller, 55 per cent discount; 1| inches and wider 50 per cent discount. 125547 20 50 786 HISTORY OF PRICES DURING THE WAR. Boards. 1 by 2. IbyS. 1 by 4. IbyG. IbyS. 1 by 10. 1 by 12. Ibv4 to 12. No. 1 Si or 2S $29. 50 830. 50 $28. 50 $29. 50 $29.50 $29.50 $32 50 No 2 SI or 2S 24.50 25.50 23 50 24 50 25 50 25. 50 27 50 $25 50 No. 3, SI or 2S 20.50 21.00 21.50 21.50 22.00 21 00 No. 4, Si or 2S .... 15 00 For 1 inch No. 1 and No. 2 in specified lengths, add 50 cents, except 16 feet add $1 ; rough, 50 cents less than S2S ; S4S, P. and M. or shiplap, add 50 cents to S2S prices, or resawing, add $1 per thousand. Boards when ordered kiln dried, add Jjjl per thousand feet. Dimensions. 10, 18, and 20 feet. 12,14, and 16 feet. 22 and 24 feet. Random. 2 by 2, No. 1 common,SlSlE.. $26. 50 $24. 50 $28 00 24 50 2 by 3, No. 1 common SlSlE 24 00 23 00 25 50 23 00 2 by 4, No. 1 common, S1S1E 25.50 23.50 27 00 23 50 2 by 6, No. 1 common, SlSlE 23.00 22 00 24 ^0 2? 00 2 by 8, No. I common, SlSlE 25.00 23.00 26. 50 23 00 2 by 10, No. 1 common, Si SlE 25.50 23 50 27 00 23 50 2by 12, No. Icommon, S1S1E 27.00 25. 50 28 50 25 50 2 by 2, No. 2 common, SlSlE 25 00 23 00 26 50 23 00 2 by 3 No.'2 common SlSlE 22 50 21 50 24 00 21 50 2 by 4, No. 2 common, SlSlE 24.00 22 00 25 50 2*> 00 2 by 6 No. 2common SlSlE 21 50 20 50 23 00 20 50 2 by 8, No. 2 common, Si SlE 23.50 21 50 25 00 21 50 2 by 10, No. 2 common, Si SlE 24.00 22.00 25. 50 22 00 2 by 12, No. 2 common, SlSlE 25.50 24.00 27 00 21 00 2 by 4bv2by 8, No. 3 common, SlSlE (8 to 20 feet) 17.00 2 by 6, No. 3 common, SlSlE (8 to 20 feet) 16 50 2 by 10, No. 3 common, SlSlE (8 .to 20 feet) 17. 50 2 bv 12, No. 3 common, SlSlE (8 to 20 feet) 18 00 Dimension when ordered sized 1-inch scant in thickness and/or/width, add $2 per thousand feet. Dimension when ordered kiln-dried, add $2 per thousand feet. Dimension D. and M. or shiplap, add $! per thousand to SlSlE prices ; rough, 50 cents less than SlSlE prices ; S4S, add 50 cents per thousand to SlSlE prices. For No. 1 common, dimension over 24 feet, add f 1 for each 2 feet up to 32 feet. NOTE. All lumber not over 2 inches thick, when ordered odd or fractional lengths, will invoice as of next longer length in multiple of 2 feet. Timbers. 10 to 20 feet. 22 and 24 feet. 26 feet. 2S feet. 30 feet. 32 feet. 3 by 4 and 4 by 4 $25.00 24.00 28.00 27.00 30.00 29.00 35.00 34.50 34.00 $26.00 25.00 29.00 28.00 31.00 30.00 36.00 35. 50 35.00 $27.00 26.00 30.00 29.00 32.00 31.00 37.00 36.50 36.00 $28.00 27.00 31.00 30.00 33.00 32.00 38.00 37.50 37.00 $29. 00 28. 00 32.00 31.00 34.00 33.00 39.00 3S.50 38.00 $30. 00 23.00 33.00 32.00 35.00 34.00 40. 00 39. 50 39.00 3 "by 6 to 8 by 8 3 by 10 to 4 by 10 5 by 10 to 10 by 10 3 by 12 to 5 by 12 6 by 12 to 12 by 12 3 by 14 to 5 by 14 6 bv 14 to 8 by 14 10 by 14 to 14 by 14 Add for plaJik 2 inches thick, -cut full size, $1 per thousand to list of 3 inches of same width or over. Add for timbers 14 inches $3 for each 2 inches over 14 inches. All for timbers over 32 feet $1 for each foot over 32 feet. Prices above are for short-leaf No. 1 common rough ; for better qualities and various working apply the following differentials : For long leaf No. 1 common add $2 per thousand feet. For merchantable 10 inches and smaller add $3 per thousand to No. 1 long-leaf price. For merchantable 12 inches and larger add $2 per thousand to No. 1 long-leaf price. For prime rule of 1905 add $5 to No. 1 long-leaf price. For 85 to 90 per cent cubical contents heart, 12 inches and under, -add to No. 1 common long leaf $3 per thousand. For 85 to 90 per cent cubical contents heart, 14 inches nud under, add to No. 1 common long leaf $3.50 per thousand. For 85 to 90 per cent cubical contents heart, 16 inches and under, add to No. 1 com- mon long leaf $4.50 per thousand. For 85 to 90 per cent facial area heart, 12 inches and under, add to No. 1 common long leaf $5 per thousand. GOVERNMENT REGULATIONS RELATING TO PRICES. 787 For 85 to 90 per cent facial area heart, 14 inches and under, add to No. 1 common long leaf $5.50 per thousand. For 85 to 90 per cent facial area heart, 16 inches and under,, add to No 1 common long leaf $6.50 per thousand. For all heart timbers 12 inches and under add to No. 1 common long leaf $7 per thousand. For all heart timbers 14 inches and under add to No. 1 common long leaf $8 per thousand. For all heart timbers 16 inches and under add to No. 1 common long leaf $10 per thousand. For standard heart timbers 12 inches and under add to No. 1 common long leaf $4 ner thousand. For standard heart timbers 14 inches and under add to No. 1 common long leaf $5 50 per thousand. For standard heart timbers 16 inches and under add to No. 1 common long leaf $6.50. For heart face, one face only, 12 inches and under, add to No. 1 common long leaf $4.50 per thousand. For heart face, one face only, 14 inches and under, add to No. 1 common long leaf $5 per thousand. For heart face, one face only, 16 inches and under, add to No. 1 common long leaf $6 per thousand. Add for dressing $1 per thousand feet. Add for tongue and groove or shiplap $2 per thousand feet. Add for grooving $3 per thousand to dressed price stock 3 inches and 4 inches thick. Add for grooving $5 per thousand to dressed price stock 5 inches and thicker. Add for beveling and outgauging $2 per thousand feet to dressed prices. NOTE. All timber when ordered in odd or fractional lengths, will invoice as of next longer length a multiple of 2 feet. Add $1 to list when ordered cut on fractional sizes. Prices on fractional sizes will be determined as follows : Sizes containing fractions under one-half inch shall take price of next smaller size listed. Sizes containing fractions half inch or greater shall take price of next larger size listed. For examples : 5J by 81 inches will take price of 6 by 8 plus $1. 5i by 81 inches will take price of 6 by 10 plus $1. Ship decking, United States Navy specifications No. 39 P. I. B. : 4i by 44 and smaller when not more than 1 inch off square $100. 00 31 by 5i and smaller when difference between thickness and width is over 1 inch 116. 00 EXPORT PRICES. [Grading' as per Gulf coast specifications of 1910.] PRIME. 1-inch random widths and lengths $47. 00 11-inch random widths and lengths 52. 00 li-inch random widths and lengths 52. 00 2-inch random widths and lengths 52. 00 GENOA Oil RIO PRIME DEALS, 3 to 5 inches thick, 4 to 8 inches wide, 16 feet and up, to average 24 feet $32. 00 3 to 5 inches thick, 9 to 10 inches wide, 16 feet and. up. to average 24 feet 36. 00 3 to 5 inches thick, 11 and 12 inches wide, 16 feet and up, to average 24 feet 40. 00 MERCHANTABLE SAWN TIMBERS. Regular cubic average : 30 cubic $33. 50 32| cubic 35. 00 35 cubic 36. 50 37i cubic 38. 00 40 cubic 40. 00 NOTE. The southern yellow pine maximum Government price list for the period from midnight September 23 to and including December 23, 1918, was the same as the preceding 'price list except in the following particulars : Under No. 2 common: 1 by 3 flooring is changed to $26; 1 by 4 flooring, $25; 1 by 6 flooring, $2 ; i by 4 partition, $26 ; and 1 by 6 partition, $27. For air-dried flooring $1 per thousand feet is deducted. The following prices for No, 2 common are added : li by 4 to 8 inches, random, $31 ; 11 by 10 and 12 inches, random, $33; li by 4 to 8 inches, random, $31; li by 10 and 12 inches, random, $33. Under " Boards " a price for No. 2, SI or 2S, is. omitted. Under " Dimension " the price for 2 by 2, No. 2 common, S1S1E is increased to $26. For merchantable long leaf 10 inches and under wide $3 per thousand feot is added, and $2 per thousand feet is added for merchantable long leaf 12 inches and over wide. The note under " Timbers " in the preceding list reading "Add for plank 2 inches thick, cut full size, $1 per thousand, to list at 3 inches of same width or over," is omitted from this later list. A price is added of $3.65 for No, 1 standard yellow pine lath, and $2.65 for No. 2 standard yellow pine lath. 788 HISTORY OF PRICES DURING THE WAR. RAILROAD AND CAR MATERIAL. Government yellow pine or southern yellow pine maximum prices are effective mid- night June 14 to and including September 14, 1918, covering States of Missouri, Arkansas, Texas, Oklahoma, Louisiana, Mississippi, Tennessee, Georgia, Florida, and Alabama : FLOORING, CEILING, AND DROP SIDING, WORKED STANDARD PATTERNS. Length 8 to 20 feet. 1 Band better, heart rift. Band better, rift. B and better. No.l. No. 2. 1 by 3 flooring $54 00 $48 00 $36 00 $34 00 *24 50 1J by 4 flooring 66 00 60 00 48 00 1 by 4 flooring 52 00 46 00 34 00 32 00 24 50 1 \ by 4 flooring 63.00 57.00 45.00 1 by 6 flooring 36 50 33 00 25 50 1 by 3 to 6 inch flooring 25 00 1 by 4 to 6 inch flooring . 25 00 f by 4 ceiling 32 00 30 50 23 50 f by 4 ceiling 35 00 33 00 24 50 fjby 4 ceiling 40.00 37 00 27 50 l| by 4 ceiling .... 47 00 43 00 30 50 f by 4 partition 37 00 34 00 I by 6 partition . . 39 50 36 50 1 by 6 drop siding 35 00 32 50 26 50 1 Add $1 per thousand feet for specified lengths. ROUGH BOARDS AND FINISH RANDOM LENGTHS. B and better.2 "C." No.l common.* No. 2 common. No. 3 common. No. 4 common. by 2... $36 00 $32 50 $39 00 $24 00 by 3 37 50 34 50 30 00 25 00 by 4 35.00 31.50 28 00 23 00 $20 50 $14 50 by 6 36 50 33 50 29 00 24 00 20 50 14 50 by 8 36.50 33.50 29 00 25 00 21 00 14 50 by 10 37.50 35.00 29.00 25.00 21.00 14.50 by 12 38.50 35.50 32.00 27.00 21.50 14.50 by 4 to 8 inches by 10 and 12 inches . 41.50 43.50 36.00 38.00 by 4 to 8 inches 41.50 36.00 by 10 and 12 inches 43.50 38.00 by 4 to 8 inches. 41.50 (5) (5) ( 6 ) (5) (5) by 10 and 12 inches . 43.50 (5) () (5) (5) (*) by 4 to 8 inches 41.50 (5) (5) 5 (5) (5) by 10 and 12 inches 43.50 (5) (5) (5) (5) (5) 1 In all grades for widths exceeding 12 inches, including 16 inches, add $3 for each 2 inches or fraction thereof. 2 In grades B and better and "C" for specified lengths up to 20 feet add $1. 3 In grades B and better, "C," Nos. 1 and 2 common for 22 and 24 feet add $2. In grades No. 1 and No. 2 common for specified lengths up to 20 feet, except 16 feet, add 50 cents a thou- sand; for 16 feet add $1. 6 For 1-inch common stock ordered kiln dried add $1. ROUGH PLANK AND DIMENSION.! 12, 14, and 16 feet. 10, 18, and 20 feet. 22 and 242 feet. Random. 2 by 2 No. 1 common $24. 00 22.50 23.00 21.50 22.50 23.00 25.00 22.50 21.00 21.50 20.00 21.00 21.50 23.50 $26. 00 23.50 25.00 22.50 24.50 25.00 26.50 24.50 22.00 23.50 21.00 23.00 23.50 25.00 $27.50 25.00 26.00 24.00 26.00 26.50 28.00 26.00 23.50 25.00 22.50 24.50 25.00 26.50 $24.00 22.50 23.00 21.50 22.50 23.00 25.00 22.50 21.00 21.50 20.00 21.00 21.50 23.50 2 by 3 No 1 common 2 by 4 No. 1 common . 2 by 6 No 1 common 2 by 8^ No. 1 common . . 2 by 10 No 1 common 2 by 12, No. 1 common . 2 by 2 No 2 common 2 by 3, No. 2 common 2 by 4' No 2 common 2 by 8 No 2 common . . . '. . 2 by 10, No. 2 common 2 by 12, No, 2 common 1 For 2-inch stock ordered kiln dried add $2. 2 For lengths over 24 feet add $1 for each 2 feet up to and including 32 feet. GOVERNMENT REGULATIONS RELATING TO PRICES. 789 CAR SIDING, LINING AND ROOFING WORKED TO M. C. B. PATTERN.! - 5 feet. 8 feet. 9 feet. 10 feet. 12 feet. Random lengths lining. 1 by 4 B and better $36.00 $35.00 $39 00 $38 00 $37 00 $34 00 1 by 6 B and better 36.00 35.00 39.00 38.00 37 00 36 50 1 by 4 , No. 1 common 31.00 30.00 34.00 33 00 32 00 32 50 1 by 6, No. 1 common 31.00 30.00 34.00 33 00 32 00 33 00 1 by 4, No. 2 common 27.50 27.50 27 50 27 50 27 50 24 50 1 by 6, No 2 common 27 50 27 50 27 50 27 50 27 50 oc >;n 1 In car lining for specified lengths add $1 per M feet. STANDARD GRADE CAR DECKING. 2 by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to If inches $29.00 2\ by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to2 inches 30.00 3 by 6 and 8 inches, 9, 10, 19, and 20 feet, dressed to 2 inches 30. 00 NO. COMMON CAR DECKING,i DRESSED AND MATCHED OR SHIPLAPPED TO M. C. B. PATTERN. f 9 feet. 9 feet 6 inches. 10 feet. 2 by 6 and 8 inches $26 00 $27 50 $26 00 2 by 10 inches .. 28 50 30 00 28 50 2J by 6 and 8 inches 27 00 28 50 27 00 2* by 10 inches 31 00 32 50 31 00 3 by 6 and 8 inches ... 26 00 27 50 26 00 3 by 10 inches 30.00 31 50 30 00 i For heart faced decking, 6 and 8 inches, add $3; for 10 inches add $4. CAR FRAMING, LONGLEAF SQUARE AND SOUND GRADES S4S TO i-INCH SCANT AND CUT TO LENGTH. Up to 8 inches, 20 feet and under $29. 00 10 inches , 20 feet and under 32. 00 12 in ches , 20 feet and under 34. 00 14 inches, 20 feet and under 39.00 CAR SILLS. For price on car sills use timber list. ROUGH PLANK AND TIMBERS, NO. 1 COMMON, CUT TO FULL SIZE.i 10 to 20 feet. 22 and 24 feet. 26 feet. 28 feet. 30 feet. 32 feet. 2 by 2 $27 00 $28 00 $29 00 $30 00 $31 00 $32 00 2by3 26.00 27.00 28.00 29 00 30.00 31 00 2 by 4 26.00 27.00 28 00 29 00 30 00 31 00 2 by 6 25 00 26 00 27 00 28 00 29 00 30 00 2 by 8 25.00 26.00 27.00 28.00 29.00 30 00 2 by 10 29 00 30 00 31 00 32 00 33 00 34 oo 2 by 12 31 00 32 00 33 00 34 00 35 00 36 00 3 by 4 to 4 by 4 25.00 26.00 27 00 28 00 29 00 30 00 3 by 6 to 8 by 8 24.00 25 00 26 00 27 00 28 00 29 00 3 by 10 to 4 by 10 28 00 29 00 30 00 31 00 32 00 33 oo 5 by 10 to 10 by 10 27.00 28.00 29.00 30.00 31.00 32 00 3 by 12 to 5 by 12 30.00 31 00 32 00 33 00 34 00 35 00 6 by 12 to 12 by 12 29 00 30 00 31 00 32 00 33 00 34 00 3 by 12 to 5 by 14 2 35.00 36.00 37.00 38.00 39.00 40 00 6 by 14 to 8 by 14 2 34.50 35.50 36.50 37.50 38.50 39 50 10 by 14 to!4bv 14 2 34.00 35.00 36.00 37.00 38.00 39.00 1 For timbers over 32 feet add $1 for each additional foot in length over 32 feet. J For timbers over 14 inches in width, add $3 for each 2 inches or fraction thereoL 790 HISTOEY OF PEICES DURING THE WAB. GENERAL EXCEPTIONS. [Add to foregoing prices per l.OOO feet b. m.] Amount to be added. In No. 1 common plank and timbers for long ieaf__ $2. 00 Add to No. 1 common long leaf for following grades : For sound and square edge 1.00 For standard interstate rules, 1905, same as No. 1 long leaf. For merchantable, 1905, 10 inches and under 3. 00 For merchantable, 1905, 12 inches and under 2. 00 For prime interstate rules, 1905 5. 00 For 85 to 90 per cent cubical contents 12 inches and under 3. 00 For 85 to DO per cent cubical contents 14 inches and under 3. 50 For 85 to 90 per cent cubical contents 16 Laches and under 4. 50 For heart face, 1 face only, 12 inches and under 4. 50 For heart face, 1 face only, 14 inches and under 5.00 For heart face, 1 face only, 16 inches and under 6. 00 For 75 per cent heart-girth measurement 12 inches and under 3. 5<> For 75 per cent heart-girth measurement 14 inches and under 4. 50 For 75 per cent heart-girth measurement 16 inches and under 5. 50 For standard heart grade 12 inches and under 4. 00 For standard heart grade 14 inches and under 5, 50 For standard heart grade 16 inches and under 6. 50 For 85 to 90 per cent facial-area heart 12 inches and under 5. 00 For 85 to 90 per cent facial-area heart 14 inches and under 5. 50 For 85 to 90 per cent facial-area heart 16 inches and under 6. 50 For all heart 12 inches and under 7. 00 For all heart 14 inches and under 8. 00 For all heart 16 inches and under _ 10. 00 For surfacing add SIS or 23. S1S1E. S4S. S2S and T. and G. Grooved for splines. For 1 inch or less SO 50 $0 50 si oo SI 00 For 2 inches or less .50 1.00 1 50 54 oo For 3 inches or less 1 00 1 00 1 00 2 00 4 00 For 4 inches or less 1.00 1.00 1.00 2 00 4 00 For 5 inches or less 1 00 1 00 1 00 2 00 G 00 For 6 inches or larger 1 00 1 00 1 00 G 00 Invoices shall be based on actual board-foot contents of the rough size and length ordered, except that thickness under 1 inch shall be based on 1 inch. When stock ordered cut to odd length sufficient amount should be added to price of next longer even length to cover waste in cutting into odd lengths. Pieces ordered larger at one end than at the other, or wider on one side than the other, shall be computed as of the larger end or wider side. All sizes which include fractions under one-half inch shall take the same price as the next lower inch listed. Sizes which include fractions one-half inch or over shall take the same price as the next higher inch listed. Example : 5| by 81 would take the price of 5 by 10 inches. Add $1 to list when ordered to cut on fractional size. Lengths which include odd inches shall take the same base price as the next longer- length listed, with allowance for odd lengths added (see general exceptions). Example: 4i by 8i, 28 feet 6 inches, would take the base price of 4 by 10, 30 feet, to which would be added the allowance for odd lengths. WESTERN SPRUCE. At a conference of spruce manufacturers of Washington and Oregon and representatives of the Signal Corps of the United States Army, Aircraft Pro- duction Board, the British, French, and Italian commissions, and the lumber committee of the Council of National Defense, held in July, 1917, the spruce manufacturers agreed to furnish aircraft spruce of specified quality and size during the remainder of the year at $105 per thousand board feet. On April 10. 1918, the spruce production division of the Signal Corps, United States Army, issued a new schedule of prices for western spruce and Port Orford cedar airplane material. The prices for "A" wing beam stock of western spruce and Port Orford cedar was set at $175 per thousand board feet f . o. b. mill ; " B " loi\g clears at $80 per thousand board feet f . o. b. mill ; and " C " short and thin clears at $45 per thousand board feet f. o. b. mill. The price for western spruce cants for aircraft material, grade 1, was set at $90 per thousand board feet f. o. b. mill; grade 2, $50 per thousand feet f. o. b. mill. These prices remained in effect throughout the remainder of the year. s GOVERNMENT REGULATIONS RELATING TO PRICES. 791 TREENAILS. The first control of the price of treenails was exercised by the Emergency Fleet Corporation in the adoption of the schedule of prices of April 1, 1918. This schedule was revised on July 11, 1918, and on July 31, 1918. The first revision allowed an increase in prices of 30 per cent and the second one of 20 per cent, to be retroactive through July 12, 1918. On November 22, 1918, again, the schedule of July 31, 1918, was indefinitely extended without change. 1 [Prices per thousand pieces f. o. b. shipping points fixed for black or yellow locust square treenails, pur- chased in IJ-inch squares cut ^ to & inch full for use in Government hulls, inspections at cars.] APRIL 1, 1918. EFFECTIVE JULY 12, 1918.2 Lengths. Prices. Lengths. Prices. Inches. TncJies. 10 817.50 32 $67.75 12 21.25 34 74.50 14 25.00 36 81. 25 16 29.00 38 88.50 18 33.00 40 96.00 20 37.00 42 105. 75 22 41.50 44 116.25 24 46.25 46 127.00 26 51. 25 48 138. 25 28 56.25 50 150.00 30 61.50 Lengths. Prices li- inch Lengths. Prices 1 J inch squares. squares. Inches. Inches. 10 $20. 70 32 $105. 60 12 25.20 34 116. 40 14 29.70 36 127. 20 - 16 34.20 38 138.00 18 38.70 40 150.00 20 43.20 42 164.40 22 48.60 44 181. 20 24 72.00 46 198.00 26 80.40 48 216.00 28 87.60 50 234.00 30 96.00 1 Memorandum from the supply and sales division of the Emergency Fleet Corporation. 2 This schedule was adopted on July 31, 1918, but was made retroactive to July 12, 1918. NOTE. Allowance for turning is $10 per 1.000 pieces if single drift or $15 if double drift. Price for l\ inch squares is $6 per thousand pieces less than those shewn above. Intermediate lengths at average o next highest and next lowest. 8. BUILDING MATERIALS. Price control was exercised over the following building materials, other than lumber: Brick, gypsum wall board, gypsum plaster board, hollow building tile, millwork, Portland cement, sand, gravel and crushed stone. The prices here scheduled applied only to Government purchases. 1 BRICK. The following schedule showing the prices of brick fixed by the price-fixing committee was issued on February 26, 1919: No. Districts. Hard- burned brick. Light- burned or salmon brick. Period covered. 2 Metropolitan New York Per M. $11 50 Per M. $9 50 July 1 1918 to Oct 31 1918 Do 12.50 10.50 Nov. 1,1918, to Nov 30 1918 4 Philadelphia Pa 16 50 14 50 July 1, 1918 to Oct 31 1918 Do 17.50 15.50 Nov. 1, 1918, to Jan. 31, 1919. 5 Washington DC 8 14 00 12 00 July 1,1918, to Oct 31 1918 Do 15.00 13.00 Nov. 1,1918, to Jan. 31, 1919. 5 Baltimore, Md 15.00 13.00 July 1 , 1918, to Oct. 31, 1918. Do 16.00 14.00 Nov. 1,1918, to Jan. 31, 1919. 1 New England States 17.50 15.50 New York east of Mechanicsville 12.50 10.50 S New Jersey north of Trenton 16.50 14.50 Long Island NY 13.50 11.50 >> Virginia 3 Covering all allocations at tenta- Part of North Carolina 3 tive prices between July 1. 1918, and Feb. 27, 1919. 6 Southern States 4 8 q Western Pennsylvania 6 Ohio e 16.00 16.00 ""14." 66" 10 Illinois 15.50 13.50 12 Mansfield Ark 15.00 13.00 Cofleyville Kans 12.00 10.00 14 14.00 12.00 16 St Louis Mo 16.50 14.50 18 Chicago 111 I 11.00 9.00 \ 7 14. 50 1 See report of Mr. Richard L. Humphrey, director of the building materials division of the War Iii- 2 Price fixed on face common brick, $16, July 1, 1918, to Oct. 31, 1918. Price fixed on face common brick $17, Nov. 1, 1918, to Jan. 31, 1919. 3 Brick costs in group No. 5 varied so greatly that it was necessary to fix prices on individual plants Prices on hard brick range from $11 to $16; prices on light-burned or salmon brick range from $9 to $14. Brick costs in group No. 6 varied so greatly that it was necessary to fix prices on individual plants. Prices on hard brick range from $10.50 to $18; prices on light-burned or salmon brick range from $8.50 to $13. & Except one plant, Johnsonburg, Pa., $18.42 for hard brick. 6 Except one plant, Spring Wells, Mich., $14.50 for hard brick and $12.50 for light-burned or salmon brick. The prices are all per M brick, f . o. b. cars, trucks, or barges at plants; an additional of $2 per M was al- lowed where brick had to be trucked outside of the plant to the nearest railroad siding or where delivered over rail at dock. They are based on not less than 75 per cent hard-burned brick nor more than 25 per cent light-burned or salmon brick. * Sand lime brick. 792 GOVERNMENT REGULATIONS RELATING TO PRICES. 793 GYPSUM WALL BOARD AND PLASTER BOARD. Pending the establishment of fixed prices, all orders were allocated at tenta- tive prices. On February 27, 1919, the price-fixing committee established the following maximum prices, applicable to purchases at tentative prices made by Govern- ment agencies during the year 1918. (GYPSUM WALL BOAKD. Prices on f-inch thick, 32 and 48 inches wide, and of varying lengths, for four firms, among whom the orders were allocated at $22 and $23. 1 GYPSUM PLASTER BOARD. Prices on f-inch thick, 32 and 36 inches wide, and varying lengths, allocated among 10 firms at prices ranging from $18 to $28.* The price for ik-inch plaster board was $1 per thousand square feet less than for the f-inch. HOLLOW BUILDING TILE. Prices of hollow building tile were first fixed for the period ending July 1, 1918, and were advanced slightly for the period from July 1, 1918, to January 1, 1919. JULY 25, 1918. At a meeting of the price-fixing committee of the War Industries Board, Thursday, July 25, 1918, the following prices for hollow building tile were fixed for Government purchases made on the tentative basis prior to July 1, 1918: Per ton. Perth Amboy, N. J $9.00 St. Marys, Pa 7.20 Canton, Ohio 6. 75 Terre Haute, Ind 6.75 Louisville, Ky 8. 10 Birmingham, Ala 8. 55 Mason City, Iowa i 7. 20 Coffeyville, Kans 7. 20 The following tentative prices for Government purchases, made prior to July 1, 1918, are to be subject to final action by the price-fixing committee upon presentation of additional data by the Federal Trade Commission : Per ton. Elmendorf, Tex $10. 00 Athens, Tex 10. 00 Salt Lake City, Utah 10.00 Los Angeles, Calif 10.00 Lincoln, Calif 10. 00 Seattle, Wash 10.00 1 Prices were per thousand square feet f. o. b. cars at the plants of the companies named. 794 HISTORY OF PRICES DURING THE WAR. DECKMI5EU 7, ID is. At si meeting of the price-fixing committee of tlie War Industries Board, Saturday, December 7, 1918, the following prices on hollow building tile were fixed for Government purchases made during the period from July 1, 1918, to January 1, 1919: Per ton, Perth Ainboy, N. J $9. 75 St. Marys, Pa 7.95 Canton, Ohio 7. 50 Terre Haute, Ind 8.00 Louisville, Ky 8. 10 Birmingham, Ala 8. 55 Mason City, Iowa 7. 20 Coffeyville, Kans 7. 20 Elmendorf, Tex 11.00 Athens, Tex 11. 00 Salt Lake City, Utah 10.00 Los Angeles, Calif 10.00 Lincoln, Calif 10. 00 Seattle, Wash 10. 00 The above prices are based upon standard, scored commercial kiln run tile, meeting the requirements of the attached specification. If smooth or face tile is required, there will be an additional allowance of $1 per ton. If salt-glazed tile is required, there will be an allowance of $1.50 per ton. If janib tile is required, there will be an additional allowance of $2 per ton on the same weight basis as the same full size ordinary tile. Fractional portions of ordinary tile shall carry the same ratio of price of such tile as that of the fraction represented. On the above basis, at the points named f. o. b. cars plant with present rates of freight added, destination prices will be figured subject to increases in accordance with any increase which may be made in freight rates. Freight charges are to be paid by the purchaser and shipments must be consigned to a Government officer, or if consigned to other than a Government officer, must be accompanied by a certificate (Form 750) signed by a Government officer stating that the tile is for Government use and that any saving will accrue to the benefit of the Government, otherwise the purchaser must also pay the war tax on the freight charges. Shipments are to be made freight collect, and for convenience in billing invoices will be rendered on the basis of the above- named prices plus the current freight rate. In payment of the account, the freight charges paid by the Government departments or their contractors will be deducted from the total amount of the invoices. When shipments are re- quired freight prepaid, Form 750, furnished by the Commissioner of Internal Revenue, must be signed by the officer in charge of the work in question, and forwarded to the shipping company with the order, who will file this certificate with the railroad company at the time the first shipment is made on the order. PARTITION TILE. Basing weight (pounds). Cells. Standard weight. Minimum weight. 16 (4 by 12 by 12) 3 16 15 22<6bv 12 by 12). 3 22 21 BACK OF TILE. 14 (5 by 8 by 12)... 16 15 8 (4 by 5 by 12) 9 8 HEAVY-DUTY TILE. 28 (6 by 12 by 12) . 3 28 26 36 (8 by 12 by 12) 6 36 34 54 (12 by 12 by 12) 6 48 46 GOVERNMENT REGULATIONS RELATING TO FRIGES. 795 The number of cells and weight shown represent the average commercial practice and there shall be no objection to a manufacturer furnishing a larger number of cells or heavier tile to meet his local conditions. The standard weights, as shown, represent the average weight of the tile to be furnished but tile of minimum weight, as shown, shall be accepted, it being understood that this variation is necessary due to wear and renewal of dies. The basing weights, as shown, are for use in reaching prices per thousand pieces on each size, as shown, in connection with the tentative building prices ; also final prices when fixed. Some variations have been made from actual and average weight to allow differences in cost of manufacturing the various sizes as determined by the custom and experience of the trade. All tile to he furnished under these specifications shall pass the following test requirements for absorption : Not less than three test specimens shall be dried at a temperature of approxi- mately 212 Fahrenheit until by weighing and reweighing the weight remains constant. They shall then be continuously immersed in clear water for a period of 48 hours with only the upper surface of the tile exposed to the air. Upon being removed from the water they shall be allowed to drain for a period of not more than one minute and the superficial water removed by a towel or similar means, and the test specimen shall then be weighed. The ab- sorption thus obtained shall not exceed an average of 10 per cent of the weight of the tile when dried. The tile to be furnished is to be commercial tile ; that is, it includes tile which are somewhat cracked, warped, and broken, not affecting the usefulness of flie tile. Inspection is to be made at the factory. MILLWORK. On December 2, 1918, the price-fixing committee approved prices recom- mended by the director of the building-materials division for all orders placed during the month of December and expiring December, 31, 1918. 1 The schedules follow: MILLWORK. December 1, 1918, to January 1, 1919. GLAZED WINDOWS AND SASH. Wood : White pine, oil primed, or yellow pine. Glass: S. S. B. Layout : Regular western openings. Windows : 9 by 12 by iq inches, 8 light, Ck. rail __________________________________ $1. 67 10 by 12 by 11 inches, 8 light, Ck. rail ---------------------------------- 1- <39 9 by 12 by Ig inches, 12 light, Ck. rail --------------------------------- 2.10 9 by 13 by 1| inches, 12 light, Ck. rail __________________________________ 2. 34 10 by 12 by If inches, 12 light, Ck. rail --------------------------------- 2- 1 10 by 14 by 1| inches, 12 light, Ck. rail --------------------------------- 2. 46 10 by 15 by 1 inches, 12 light, Ck. rail --------------------------------- 2. 73 10 by 16 by li inches, 12 light, Ck. rail -------------------------------- t 10 by 18 by 1| inches, 12 light, Ck. rail -------------------------------- S. 28 10 by 12 by li inches, 4 light a 10 by 12 by 11 inches, 6 light 1- 22 10 by 14 by 1| inches, 4 light } g 10 by 14 by lg inches, 6 light _ -r- J- 34 10 by 15 by IS inches, 4 light 1-19 10 by 15 by 1| inches, 6 light 1-40 10 by 16 by li inches, 6 light 1- 50 10 by 12 by 11 inches, 12 light, heavy center bar ^. | 10 by 14 by IS inches, 12 light, heavy center bar ^. b4 10 by 15 by Ig inches, 12 light, heavy center bar ^. 7 10 by 16 by 1| inches, 12 light, beavy center bar S. r O3 Cellar sashj ^ g i/g ^ g 9 by 12 by lg inches, 2 light, 1/11 by 1/5 -62 10 by 12 by 11 inches, 2 light, 2/1 by 1/5 .65 8 by y !0 byli inches, 3 lights, 2/4 by 1/3 . 67 9 by 12 bv 1| inches, 3 lights, 2/7 by 1/5 10 by 12 'by li inches, 3 lights, 2/10 by 1/5 1 Price-Fixing Committee, Minute Book XI, Dec. 2, 1918. 796 HISTORY OF PRICES DURING THE WAR. Transoms : 2/6 by 1/2 by 1| inches, 1 light- 2/8 by 1/2 by Ig inches, 1 light- 2/10 by 1/2 by 11 inches, 1 light 3/0 by 1/2 by li inches, 1 light. 3/4 by 1/2 b 2/4 by 1/10 by 2/6 by 1/10 by 1 2/8 by 1/10 by 1 3/0 by 1/10 by 1 3/4 by 1/10 by 1 y li inches, 3 lights wid< by Ig inches, 2 lights wide. 4/8 by 1/10 by li 5/0 by 1/10 by 1 inches, 2 lights wide, inches, 3 lights wide, inches, 3 lights wide, inches, 3 lights wide- inches, 5 lights wide- inches, 5 lights wide. 5/4 by 1/10 by 1 inches, 5 lights wide. 6/0 by 1/10 by 1| inches, 6 lights wide_. 6/8 by 1/10 by Ig inches, 6 lights wide. 2/8 by 2/0 by li inches, 3 lights wide__ 2/10 by 2/0 by Ig inches, 3 lights wide.. 3/0 by 2/0 by 1| inches, 3 lights wide . 3/4 by 2/0 by 1| inches, 3 lights wide__. inches, 5 lights wide inches, 5 lights wide_. inches, 5 lights wide_. inches, 6 lights -wide-- inches, 6 lights wide__ 4/8 by 2/0 by 5/0 by 2/0 by 1 5/4 by 2/0 by 1 6/0 by 2/0 by 1 6/8 by 2/0 by 1 $0.67 .72 .73 .76 1.49 .94 1.05 1. 10 1.16 1.49 1.88 2. 08 2. 19 2. 32 2.99 1. 16 1.30 1.38 1.74 2 04 2.27 2.28 2. 75 3.51 NOTE; Other sizes of glazed sash not specified, will take same basis as above, which Is 63| per cent discount from the universal list. EXTRAS. The above prices apply to goods in full-stock quantities for shipment in carload lots. For less than carload shipments add 10 per cent to cover extra handling. When goods are packed for protection in local shipments! packing charges as follows will apply : Net per bundle. Under 60 united inches, add $0.25 Over 60 and up to 100, inclusive, add 50 Over 100 united inches, add 1* 00 Skylight sash, 6/7J by 5/4J, 3J inches thick, 4 lights, 18 by 60, open (in full car- loads), $6.32. PANEL DOORS. Wood : Pine. Layout : May be 4 panel, 5 regular panel, or 5 cross panel. Sticking : May be O. G., B. and C., or C. and B. Panels : Flat or beveled raised. Grade : May be No. 1 and No. 2 mixed, about 80 per cent No. 1. White pine. Yellow pine. 2/0 by 6/8 by 1| inches $2.09 11.88 2/2 by 6/8 by If inches 2.09 1.88 2/4 by 6/8 by 1 finches 2.15 1.94 2/6 by 6/8 by If inches 2.17 1.96 2/8 by 6/8 by 1| inches 2.20 1.98 2/10 by 6/8 by 1| inches 2.50 2.26 3/0 by 6/8 by If inches . . 2.66 2.40 3/4 by 6/8 3.63 3.27 3/4 by 6/8 by If inches 6.31 4.79 2/0 by 7/0 by 1| inches 2.49 2.24 2/6 by 7/0 by If inches 2.51 2.27 2/8 by 7/0 by If inches 2.56 2.31 3/0 by 7/0 by If inches 2.75 2.48 NOTE. Doors of other sizes will take the same discount if standardized and ordered in quantities. The base discount is: White pine doors, 68f per cent from universal list; yellow pine doors, 10 per cent less. Wide lock rail and ct>t for Dutch door, add 75 cents net. If 3 foot 4-inch doors are ordered in lots of less than 10, add 20 per cent. If ordered in less than carload orders, 10 per cent advance on all items. Doors with six panels, basis 67J per cent from 5X panel O. G. No. 1 list. Doors made with slat panels, add 50 cents net per panel. GOVERNMENT REGULATIONS RELATING TO PRICES. 797 SASH DOORS. Layout : 3X panel and 2 lights or 2 upright panels and 4 lights. Glazing : S. S. B. Sticking : O. G., B. and C., or C. and B. Panels : Flat or beveled raised. Grade : No. 1 and No. 2 mixed, about 80 per cent No. 1. Wood : Pine. White pine. Yellow pine. 2/4 by 6/8 by 1| 2/6 by 6/8 by Ij 2/8 by 6/8 by Ij 2/10 by 6/8 by 1 3/0 by 6/S by l\ 3/4 by 6/8 by \\ 3/4 by 6/8 by 1^ 2/6 by 7/0 by Ij 2/3 by 7/0 by Ij 3/0 by 7/0 by Ij inches $3.22 3.22 3.30 3.63 3.85 4.79 6.47 3.63 3.83 4.24 $3.01 3.01 3.08 3.39 3.59 4.42 5.91 3.39 3.53 3.96 inches ... a inches . . inches . . inches inches. .. .. . , inches inches . .. Sash doors other than above : 2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 6 lights, SSB stops $3. 51 2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 9 lights, SSB stops : 4. 51 2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 12 lights, SSB stops / 4. 63 2/8 by 6/6 by 1-3/8 inch French doors, 18 lights, SSB stops -r 5. 85 2/8 by 6/6 by 1-3/8 inch French doors, 10 lights, SSB stops 4. 65 The above prices are obtained by using the panel-door basis plus cost of glass and reasonable profit. BATTEN DOORS. Sizes : 8/0 by 8/0 to 10/0 by 12/0. Construction : Standard detail. Grade : Sound paint quality, mixed woods permitted. Price : Doors with no glass, per square foot, $0.28 ; glazing, add per light 10 by 15 or less, 20 cents ; larger sizes, extra price. W. C. DOORS. One and one-eighth inches thick, 4X panel, Nos. 1 and 2 ; no lugs : White pine. Yel'ow pine. 2/0 by 4/0 $1.32 81.19 2/0 by 4 '6 1.49 1.34 2/4 by 4 '6 1.54 1.39 2/4 by 4/8 1.82 1.64 NOTE. All foregoing prices apply to goods ordered in full-stock quantities for shipment in carload lots. For less than carload shipments, add 10 per cent to cover extra handling. Packing goods for protection on local shipments : Panel doors, 3/0 by 7/0 and smaller, add $0.35 net per bundle ; larger than 3/0 by 7/0, add $0.02 net per square foot S. M. Sash doors, 3/0 by 7/0 and smaller, add $0.60 net per bundle ; larger than 3/0 by 7/0, add $0.03 net per square foot S. M. HARDWOOD DOORS. Birch cross panel, If inches, 641 per cent discount from the cross panel B. & C. uni- versal list, making a 2/8 by 6/8 door, $2.57. For two-panel doors, add $0.20 net. DOOR FRAMES. All door frames up to and including 2/10 by 6/10 : Frame, detail "A," preliminary standard drawings , ? ^0 Frame, detail " B," preliminary standard drawings 2. 42 Frame, detail " C," preliminary standard drawings , ^- it Frame, detail " B," preliminary standard drawings l. 2d 798 HISTORY OF PRICES DURING THE WAR. SILLS AND SLIDES. Cantonment sills, 26 cents net per piece. Cantonment slides, 171 cents net per piece. NOTE. The above prices apply to goods in full stock quantities for shipment in car- load lots. For less than carload shipments, add 10 per cent to cover extra handling. Prices all apply f. o. b. mills in South or Middle West. Prices f. o. b. Pacific coast mills should be lower than this basis, except possibly on glazed windows, but proper differentials have not been worked out for shipments from points east of Chicago or west of Mississippi River. Differentials above mill prices will have to be worked out based on freight costs. FRAMES. Box window frames for brick, K. D. : 9 by 12, 12 lights, 2/7J. by 4/6 Basis : $86 per 1,000 feet b. m. exposed parts and $75 for unexposed _ $2 55 Add for pulleys, $0.24. Extra : 15 cents net for putting boxes together, balance K. D. Casement frames, brick wall: 2/OJ by 3/5J 88 D. C. window frames, type "A" : 2/7^ by 4/6 2 09 Add for pulleys, $0.24. D. C. window frames, type " B " : 2/7?. by 4/6 1 QQ Add for pulleys, $0.24. . Cellar frames " A " : 8 by 10, 6 lights, opening 2/4* by 2/1J . 91 Casement frames, open in "B " : 8 by 10, 6 lights, opening 2/4| by 2/15 l' 44 Casement frames, open out " C " : 10 by 12, 6 lights, opening 2/0} by 3/5 1. 71 Casement frames, open out " D " : Opening 2/OJ by 3/5J 1.37 Casement frames, for brick, " E " : Opening 2/OJ by 3/5! 1.18 Louvre frames : Half circle, 2/6 by 1/3 opening, circle 0/S, square 1/8 3. 07 No wire screens or hinges. Rectangular louvre frames: 1/2 by 2/4 1.60 Louvre frames, peaks : 3/0 by 1/6 2. 43 K. D. WINDOW FRAMES. Special prices for cantonment construction : Quality : Sound mixed woods for paint. Construction : Pulley stiles, If by 4 ; blind stops, }$ by If ; casing, }f by 32 ; sill. Is by 3H ; plain drip cap. || by li ; mullioni 5J. No pockets or pulleys 10 by 12 to 10 by 15 and 10 by 16, 12 lights, single $1. 50 10 by 12 to 10 by 15 and 10 by 16, 12 lights, double 3 10 10 by 12 to 10 by 15 and 10 by 16, 12 lights, triple 4' 70 10 by 12 to 10 by 15 and 10 by 16, 12 lights, quadruple Q. 30 For li O. 8. casing, add to base price per frame . 15 For pockets and pressed steel pulleys, per frame . 30 For Ig sill, per frame . 10 For 51 stud wall, per frame . 20 For 5| jambs for plastered wall, per frame . 10 K. D. OUTSIDE DOOR FRAMES. Jambs, li by 41, not rabbeted; stops, 5 by 1| S4S ; casing, {% by 31 ; no sill. Sizes 2/4 by 6/8 to 3/0 by 7/0 K. D _ $1. 50 For larger sizes, for every 4 inches in width or height, add . l() For soft-wood sill, add to base price , . no For 52 stud wall 30 For transom head 2/0 high or less, add to base price .' 75 All f. o. b. factories in the Middle West. Taking rates to eastern and southern points not in excess of the rates from Oshkosh, Wis., Minneapolis, and Dubuque, Clinton, and Muscatine, Iowa. EXTRAS. The above prices apply to goods in full stock quantities for shipment in carload lots. For less than carload shipments, add 10 per cent to cover extra handling. STAIRS. Plain box stairs, 3/0 wide, K. D. : Strings stuck to match room base. Strings house g inch thick. Treads li inches thick, risers If inch thick. No rough horses, newels, rails, or balusters, $1.10 per riser. If winders are shown, figure same as an extra riser. Open stairs, 3/6 wide, K.D. : Wall string housed 1 inch thick. Face string cut and mitered, i inch thick. Treads 1J inches thick, mitered and arranged for balusters. Nosings fitted, coves loose. Risers (i inch thick) mitered, $1.35 per riser. If winders are shown, figure same as an extra riser. Stair rail "A" with filln Quebracho W T. B May 6 1918 July 10 1918 $0 065 per pound Smokeless cannon powder Congress Feb. 13, 1913... $0.53 per pound. Sulphur W. I. B. infor- June 7 1918 Dec 31 1918 $22 per long ton f o ) . Toluol mal. Ordnance De- Feb. 1, 1918... mines. $1.50 per gallon. partment. W. I. B., infor- June, 1918. Do. Wood chemicals mal. W. I. B. with Dec. 14, 1918.. F. o. b. shipping point. Acetate of lime War Depart- ment. Dec. 24, 1917. . . $0.04 per pound. Acetic acid, commer- Feb. 13, 1918 $0.14f per pound. cial, 100 per ent. Acetic acid, glacial do $0 19 per pound. Acetic anhydride, 85 Dec. 24, 1917 $0.85 per pound. per cent. Acetone do Alcohol, methyl, pure do $0 86 per gallon. Alcohol. wood- Crude . do $0 50 per gallon Denaturing grade do. $0.79 per gallon. Refined, 95 per . ..do Do. cent. Refined, 97 per .do $0.82 per gallon. cent. Ethyl me thy Ike tone . do... $0.25 per pound. Formaldehyde Methyl acetate Feb. 12, 1918.... Feb 20 1918 $0.15| per pound. $0 21 naked at plant Meth vl acetone Dec. 24, 1917 $0.86 per gallon. Wool grease P. F.C Sept. 17, 1918.... Dec. 17, 19*18'. . . . $0.16 per pound f. o. b. shipping point. ACIDS. On June 28, 1918, the price fixing committee announced the following maxi- mum prices of sulphuric and nitric acids, which were revised on September 30, 1918. Control was lifted on January 1, 1919. June 28, 1918. Sulphuric acid: Per ton of 2,000 pounds. 60 B__ $18 66 B 28 1*0 per cent oleum 32 F. o. b. at manufacturers' works in sellers' tank cars. In carboys in carload lots one-half cent per pound extra. In carboys in less than carloads three-fourths cent per pound extra. In drums, any quantity ,one-fourth cent per pound extra. Nitric acid, 42 B., 8J cents per pound f. o. b. manufacturers' works in carboys. A schedule of maximum prices on mixed acids was prepared and published later. 1 1 Letter to Mr. Brookings from Mr. Brunker, of the acids and heavy chemicals section, dated July 19, 1918 : " After a somewhat lengthy discussion it was decided that the price for mixed acids shall be determined as fixed governmental prices' for the acidity contents of the component acids, with no additional charge for mixing." GOVERNMENT REGULATIONS RELATING TO PRICES. 805 The above maximum prices were agreed upon for the public as well as the Government. It was understood and agreed that any deliveries made after September 30 would be subject to any revision in price which the Government might make for deliveries after that date. ALKALIS. The alkali section of the War Industries Board was organized April 15, 1918. Previous to this time efforts to control the prices of alkalis had been made by the alkali section of the chemical committee of the Council of National De- fense in cooperation with the Chemical Alliance (Inc.). Bleaching powder. In April, 1918, a tentative Government price of $0.0235 per pound was agreed upon. On later compulsory orders l the alkali section and the procurement division of the Ordnance Department recommended a price of $0.0235 per pound for prime bleach, basis 35 per cent chlorine f. o. b. makers' plants. This was reduced to $0.02 by the board of appraisers, but compulsory orders for November deliveries still carried the price of $0.0235. Fixed prices were canceled on November 25, 1918. Carbon tetrachloride. In April, 1918, the alkali section recommended a price of 15 cents per pound on dry carbon tetrachloride and 17 cents per pound on fire extinguisher of the carbon tetrachloride type. These prices were reduced to 14 cents and 16 cents by the board of appraisers and the latter prices became effective from August, 1918, until the orders were canceled at the end of the year. During this time the entire output of all producers was commandeered by the Government. Caustic soda. A price of $3.50 per hundredweight for the 76 per cent caustic soda, in bags f. o. b. cars at sellers' plants, w r as set in the spring of 1918 to apply to the Government purchases of caustic soda. Prices for other grades were in proportion to the base prices. These prices continued until the close of 1918, when all restrictions were removed. Liquid chlorine. Beginning May, 1918, the total output of liquid chlorine was commandeered by the Government at a price of 7 cents per pound, in Govern- ment containers f. o. b. makers' plants. This price prevailed throughout the remainder of the war period. Restrictions were removed November 25, 1918. Soda ash. The Government fixed the price of soda ash early in 1918 at $1.57 per hundredweight for the 58 per cent soda ash in bags f. o. b. sellers' plant. These prices continued in effect until November 25, 1918. AMMONIA. The first agreement affecting the price of ammonia was made on November 19, 1917, between the producers of ammonia and the Food Administration. The terms of the agreement are given below. . On January 3, 1918, the President issued a proclamation licensing the output of " ammonia, ammonical liquors, and ammonium sulphate from whatever source produced." Licenses were to be secured on or before January 21, 1918, and the Secretary of Agriculture was to direct the carrying out of the provisions of the proclamation. The prime products of ammonia as produced in by-product coke- oven plants, coal gas plants, and nitrogen fixation plants were those affected by the proclamation. The prices fixed in the earlier agreement continued in force through 1918, but they probably were inoperative in 1919, although the formal agreement was to continue in operation until the proclamation of peace. 1 The information in regard to the alkalis was obtained from the report of the alkali section of the War Industries Board to Mr. Baruch, in December, 1918 ; from the second annual report of the Chemical Alliance, January, 1919 ; and from the 1918 Yearbook of the Oil, Paint and Drug Reporter. 806 HISTORY OF PRICES DURING THE WAR. AGREEMENT OF NOVEMBER 19, 1917. At a meeting on November 19, 1917, the manufacturers of aqua and anhydrous ammonia agreed to place the allocation of their output in the hands of the Food Administration. They also agreed not to sell in excess of the following basic prices f. o. b. plants : Anhydrous ammonia, 30 cents per pound carload lots. Aqua ammonia, 8 cents per pound carload lots. Agreement entered into between Mr. Hoover and manufacturers of ammonia November, 1917 : (1) The manufacturer agrees that he will sell his output of anhydrous am- monia to such persons and in such amounts as may be directed by the United States Food Administration ; that he will direct and require all of his agents to sell his product to such persons and in such amounts as may be directed by the United States Food Administrator. It is understood that until further notice from the United States Food Adminisrator the manufacturer may sell or use his product or accept orders for delivery thereof within 60 days from the date of such orders, without direction, limiting as far as possible the use and sale of such product for nonessential purposes. Contracts for deliveries extending over a longer period may be made only with special permission from the United States Food Administrator or his representative. (2) The Food Administrator agrees that he will direct the distribution of the manufacturer's output in as economical and equitable a manner as possible, adhering as far as practicable to the expressed wishes of the manufacturer. (3) The manufacturer agrees that he w r ill sell all anhydrous ammonia at prices not to exceed those included in the schedule attached hereto marked "A," which is hereby incorporated in and made a part of this agreement. In case the cost of materials or manufacture or transportation increases or decreases such maximum prices shall be revised by the United States Food Administrator, on his own motion or on application of the manufacturer, in such manner that the profit of the manufacturer shall remain substantially the same as at the prices in said schedule. (4) The aforesaid prices shall include all commissions paid to agents, but shall be exclusive of the prices of containers for which payment shall be required at time of payment for the contents, the actual amount so paid for containers to be refunded if returned in good order and in a reasonable time. In case of dispute said reasonable time shall be determined by the United States Food Administrator or his representative. (5) In the event that the supply of sulphate of ammonia and ammonia liquor is insufficient to meet the needs of the manufacturers entering into this and similar agreements, it is agreed that the Food Administrator may allocate the supply of such materials among the manufacturers entering into this and similar agreements with the said Food Administrator on such fair and equitable basis as may be determined by said administrator. (6) The manufacturer agrees that in order to carry out the purposes of this agreement he will furnish such reports as may be required by the United States Food Administrator or his representative upon request and upon such blanks as the United States Food Administrator may designate, giving complete informa- tion regarding transactions in anhydrous ammonia imported, manufactured, refined, packed, purchased, contracted for, received, sold, stored, shipped, or otherwise handled, distributed, or dealt with by the manufacturer, or on hand, in the possession or under the control of the manufacturer, and any other infor- mation pertinent thereto, concerning the business of the manufacturer that such representatives may require from time to time. It is understood and agreed that information thus furnished by the manufacturer shall not be divulged or made known in any manner by the United States Food Administrator or his representative, except in so far as necessary to carry out the purposes of this agreement or in so far as directed by a court of competent jurisdiction. (7) This agreement shall remain in full force and effect from its date until peace shall have been proclaimed between the United States and Germany. GOVERNMENT REGULATIONS RELATING TO PRICES. 807 ANHYDROUS AMMONIA CONTAINING NOT LESS THAN 99.9 PER CENT NH 3 . State. Cents per pound. Remarks. Alabama 33 If from Birmingham stock, 33 cents f. o. b. that point. Arizona 40 Arkansas 34 California 35 If from San Francisco, Los Angeles, San Diego, Sacramento stocks, Colorado 38 35 cents f. o. b. these respective points. Connecticut 31 Delaware 31 District of Columbia Florida 31 34 Jacksonville, 35 cents. If from Jacksonville stock, 33 cents f. o. b. Georgia .... 33 that point. If from Atlanta and Savannah stocks, 33 cents f . o. b. that point. Idaho. . Illinois 40 31 Chicago, Cook County, East St. Louis, 30 cents. Indiana . . . 31 Aetna, Calumet, East Chicago, Gary, Hammond, Indiana Harbor, Iowa 32 and Whiting, 30 cents f. o. b. Chicago if shipped from that point. If from Indianapolis stock, 31 cents f. o. b. that point. Davenport and Dubuque, 31 cents. Kansas 33 East of 96 longitude; 34 cents west of 96 longitude. Kentucky.. 31 Covington and Newport, 30 cents. If from Louisville stock, 31 cents Louisiana 34 f. o. b. that point. New Orleans, 33 cents. If from New Orleans stock, 33 cents f. o. b. Maine 31 that point. Maryland 31 If from Baltimore stock, 31 cents f. o. b. that point. Massachusetts 31 Michigan 32 Detroit 31 cents If from Detroit stock, 31 cents f. o. b. that point. Minnesota 33 St. Paul and Minneapolis, 32 cents. If from St. Paul stock, 32 cents Mississippi... 33 f. o. b. that point. Missouri . . 31 East of 93 longitude; 33 cents west of 93 longitude; St. Louis, 30 Montana 40 cents; Kansas City, 32 cents. If from Kansas City stock, 32 cents f. o. b. that point. Nebraska 34 Omaha, 33 cents. If from Omaha stock, 33 cents f. o. b. that point. Nevada 42 New Hampshire 31 New Jersey 31 Camden, Newark, Paterson, and within 15 miles of New York City New Mexico 38 Hall, 30 cents. New York 31 Points within 15 miles of New York City Hall, 30 cents. If from North Carolina 33 Buffalo or Rochester stocks, 31 cents f. o. b. these respective points. North Dakota 35 Ohio 31 Cincinnati 30 cents. If from Cleveland or Toledo stocks, 31 cents Oklahoma 35 f. o. b. these respective points. If from Oklahoma City stock, 35 cents f. o. b. that point. Oregon 35 If from Portland stock, 35 cents f. o. b. that point. Pennsylvania 31 Philadelphia, 30 cents. If from Pittsburgh stock, 31 cents f. o. b. Rhode Island 31 that point. If from Providence stock, 31 cents f. o. b. that point. South Carolina 33 South Dakota . . 35 Tennessee 33 Bristol and Memphis, 32 cents If from Memphis stock 32 cents Texas . 35 f. o. b. that point. East of 101 longitude; 37 cents west of 101 longitude. If from Utah 40 Houston, Fort Worth, Dallas, or San Antonio stocks, 35 cents per pound f. o. b. these respective points. If from El Paso stock, 37 cents f. o. b. that point. If from Salt Lake City stock, 40 cents f. o. b. that point. Vermont 31 Virginia 32 Hampton Newport News Norfolk Ocean View Old Point Comfort Washington 35 Phoebus, Portsmouth, Richmond, and Alexandria County, 31 cents. If from Norfolk or Richmond stocks, 31 cents f. o. b. these respective points. If from Spokane stock, 35 cents f. o. b. that point. West Virginia 32 Wisconsin 32 Milwaukee, 31 cents. If from Milwaukee stock, 31 cents f. o. b. that Wyoming 40 point. Terms, 30 days net for both cylinders and contents. Prices named above are freights free at common-carrier points unless otherwise stated ; freight on empty cylinders returned for credit incumbent on seller in all- cases. Above prices apply to contents of 100 and 150 pound capacity cylinders. Charge 3 cents per pound higher for " small " or 50-pound capacity cylinders. Charge 6 cents per pound higher for " midget " or 25-pound capacity cylinders. 808 HISTORY OF PRICES DURING THE WAR. AQUA AMMONIA TECHNICAL, 26 B., 29.4 per cent NH 3 . District No. 1. Connecticut, Illinois, Indiana, Iowa, Kentucky, Maryland, Massachusetts Michigan, Minnesota, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Wisconsin ; C. 1. in drums, 8J cents per pound, 26 B. ; 1. c. 1. in drums, 8| cents per pound, 26 B. Freight paid by shipper. District No. la. New Hampshire and Vermont : C. 1. in drums, 8 cents per pound, 26 B. ; 1. c. 1. in drums, 8| cents per pound, 26 B. Freight paid by shipper. District No. 76. Maine, Virginia, and West Virginia, including District of Columbia; C. 1. in drums, 8| cents per pound, 26 B. ; 1. c, 1. in drums, 9 cents per pound, 26 B. Freight paid by shipper. District No. 2. Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Caro- lina. South Carolina, and Tennessee : C. 1. in drums, 9| cents per pound, 26 B. ; 1. c. 1. in drums, 9 cents per pound, 26 B. Freight paid by shipper. District No. 3. Arizona, California, Colorado, Idaho, Indian Territory, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming : C. 1. in drums, 84 cents per pound, 26 B. ; 1. c. 1. in drums, 8 cents per pound, 26 B. Freight to Mississippi River points allowed by shipper. Deduction of one-eighth cent per pound from above carload drum prices to be made when shipped in tank cars. Aqua ammonia of all degrees, in carboys 1. c. 1., 2 cents per pound advance, and in carboys c. 1., 1* cents per pound advance. Freight incumbent upon buyer. Deductions from any of above prices shall be made on the following degrees : 1| cents per pound, 20 B. 2 cents per pound, 18 B. 2$ cents per pound, 16 B. 2| cents per pound, 14 B. AMMONIUM SULPHATE. In the latter part of 1917 the War Department Issued an order commandeer- ing the output of ammonium sulphate. A price of 4 cents bulk f. o. b. point of production was established for Government purchases, but very little of the output was actually commandeered. The order was canceled December 14, 3918. The distribution, manufacture, and importation of ammonium sulphate were 'controlled through the license system, originating in the President's proclama- tion of January 3, 1918. ARSENIC. A presidential proclamation of November 15, 1917, provided for the licensing of dealers in white arsenic on or before November 20, 1917, and for the licensing of dealers in insecticides containing white arsenic on or before December 10, 1917. The administration of this control was placed with the Food Admin- istration. On February 28, 1918, the Food Administration announced a price to pro- ducers at 9 cents per pound in car lots f. o. b. plants, with an .ndditional quarter cent for small quantities, the price to apply to deliveries anywhere in the United States. It was applicable to new contracts and did not affect existing contracts. With the establishment of an increased margin to dealers on April 4, 1918, the market price rose to 9i cents. The margins allowed varied from one-fourth cent per pound to 3 cents per pound, depending upon size of sales. CASTOR BEANS AND CASTOR OIL. In the summer of 1917 the Council of National Defense took the first steps in the control of the castor-oil industry. "All available supplies have been purchased and will be -turned over to the Government at the price paid for the oil and without compensation to the purchaser." * About this time arrangements were made to increase the acreage of castor beans in this country. The growing centers were organized as districts 1 Oil, Paint, and Drug Reporter, Nov. 12, 1917. GOVERNMENT KEGULATIONS KELAT1NG TO PRICES. 809 and contracts were made with growers under a guarantee of $3 per bushel'of 46 pounds on contracts directly with the Government, and $3.50 per bushel for beans grown by subcontractors. Beans were to be delivered hulled and sacked, in carload lots f. o. b. the nearest railroad station. The Government guaran- teed to take the crop. * When the crop was harvested this price was raised to $4.50 per bushel to the actual growers, while the contractors received a margin over and above this price. The control over the price of imported castor beans and castor oil. After the President's proclamation of February 14, 1918, giving power to the War Trade Board to restrict imports, effective February 16, 1918, all importers of castor beans and castor oil were required to give the United States Government a 10-day option to purchase all imported beans from Venezuela, Colombia, Central America, Mexico, and the West Indies, the price to be paid for such purchases being $3.50 per bushel of 46 pounds, or $0.076 per pound, duty paid, duty being $0.003 per pound. The option on beans from all other countries was $0.098 per pound, duty paid. These prices were to apply to all purchases at home and abroad after February 22, 1918, and for all shipments after June 10, 1918. This action was carried out by the Bureau of Imports of the War Trade Board at the request of and in conjunction with the Aircraft Production Board. On June 16 the War Trade Board announced that outstanding licenses for the importation of castor beans and castor oil from the West Indies, Mexico, Central America, Colombia, and Venezuela were revoked as to ocean shipments after June 10, 1918. Thereafter no licenses from those countries would be issued, except when the United States Government was the consignee or where the importation was approved by the Bureau of Aircraft Production. On June 23, 1918, the price of $0.098 per pound, stipulated in the Govern- ment option, was lowered to $0.076 per pound for all near-by countries. How- ever, prices on beans from South America and the Orient remained at $0.098 because of the high freight rates from those countries. In October, 1918, the War Department announced an increase in the contract price of castor beans, making the price to growers $0.098, duty paid, at all ports of entry, on beans originating in the West Indies, South America, Central America, and Mexico. This makes the price the same for all beans, domestic and imported. Castor oil is being purchased at $0.244 per pound for oil conforming to speci- fication No. 3500-A of the Signal Corps, other oil at $0.224 per pound. When the armistice was signed the Government had on hand large quan- tities of castor oil. The Bureau of Aircraft Production negotiated with Ameri- can crushers for the purchase of the Government stocks of domestic beans and oil. Somewhat earlier the War Industries Board had practically com- pleted negotiations for the sale of these stocks on the basis of 25 cents per pound for the oil. The aircraft bureau officials, however, raised this price above 30 cents a pound. All Government activities in castor beans and oil ceased in December, 1918. 1 1918 Year Book. Oil, Paint, and Drug Reporter. 'Official Bulletin, Oct. 22, 1918. 810 HISTORY OF PRICES DURING THE WAR. GLYCERIN. On July 30, 1918, the Food Administration made the following announcement : Prices at which dynamite glycerin is to be furnished to the allied Government and Domestic consumers during the remainder of 1918 have been settled by joint agreement between the Food Administration and makers of soap and candles. Allied requirements, estimated at 7,000 long tons, will be furnished at 60 cents a pound in August and September; 58 cents in October and November; and 56 cents in December, f. o. b. production points in drums drums included in price deliveries to be divided into quotas of approximately one-third for each of the three periods. The same price was to be maintained as a minimum price for chemically pure glycerin, except that chemically pure glycerin could be sold on the usual terms of 1 per cent discount for cash in 10 days, or net 30 days, freight prepaid, drums extra and returnable at sellers' expense. The agreement with the Allies for the last five months was carried out. About 1,000 tons were left undelivered at the time of the armistice, but satis- factory arrangements between the Allies and the American producers were made. 1 NITRATE OF SODA. The purchase and importation of nitrate to the United States was controlled by the United States Government through the War Industries Board in coop- eration with the importers formerly handling this material. The Government received their nitrate through the importers at cost, and the profit charged by the importers to private users was controlled by the Government so that uniform cost to all users was secured, this cost being based on the average monthly cost in Chile, plus the freight charge, exchange, and other elements of cost. A committee known as the nitrate committee of the United States was estab- lished with offices in New York, and a New York representative of the War Industries Board represented that board in the offices of this committee. 3 Uniform monthly prices were established, based upon the average cost in Chile during the particular month. To this average price w r as added a fixed charge of 2.5 per cent of landed costs in this country as a brokerage charge. Determina- tion of the uniform price, as well as the control of the distribution of nitrate of soda, was in the hands of the nitrate committee. This arrangement was in force from the beginning of 1918. According to the best adVices the quotations in this country up to the month of June were $4.225 per hundredweight of 95 per cent nitrate and $4.25 for the 96 per cent. At the time of the armistice the Government had on hand surplus stocks of nitrate of soda. The War Department announced on March 10, 1919, that these stocks would be disposed of at the prevailing market prices. 3 QUEBRACHO. An agreement between importers of solid quebracho extract and the War Trade Board granting an option to the United States Government on all shipments during 1918 became effective May 6, 1918. The maximum price agreed upon in the event of the exercise of such option was 6 cents per pound, ex dock Atlantic seaports north of Cape Hatteras, basis 65 per cent tannin, net landed reweight, net cash basis $20 ocean freight per ton of 2,240 pounds. 1 Information from fats and oils section of the United States Food Administration. 2 Statement of Mr. C. H. McDowell, director of the chemicals division of the War Industries Board, from Federal Trade Information Service, Dec. 24, 1918. 'Federal Trade Information Service, Mar. 10, 1919. GOVERNMENT REGULATIONS RELATING TO PRICES. 811 On June 30, 1918, the War Trade Board announced a new ruling, placing tan- ning materials on the list of restricted imports. Shipments of a limited quantity only of solid quebracho extract were allowed after July 10, 1918, and the fixed price became inactive after that date. The War Trade Board lifted its ruling of June 30 on December 5, 1918. 1 SMOKELESS CANNON POWDER. Beginning with February 13, 1913, all Army and Navy appropriation bills specify that " no part of any money appropriated in this act shall be expended for the purchase of powder, other than small arms, at a price in excess of 53 cents." In other words, Congress controlled the price of cannon powder, but not of rifle powder. SULPHUR. Sulphur was one of the fertilizer materials included in the President's license proclamation of February 25, 1918. On July 2, 1918, the President gave his approval to a resolution passed by the War Industries Board on June 27, 1918, in which the board assumed control of sulphur materials, controlling production and distribution. Commandeering orders were to be issued where necessary. 2 Early in the fall of 1917 the fertilizer committee of the chemical alliance, act- ing with the consent of the Council of National Defense, arranged for a price of sulphur at $22 per long ton f. o. b. mines. This policy was continued until June 7, 1918, when the War Industries Board took more direct control of the sulphur situation. 3 The same price, however, continued effective through the life of the sulphur and pyrites section of the War Industries Board. 4 TOLUOL. The following resolution was passed by the committee on explosives and ap- proved by the War Industries Board on January 29, 1918 : It is requested that the Ordnance Department of the Army, with the consent of the Navy, commandeer the entire toluol production of the country, and that a committee on toluol be appointed composed of representatives of the Army, the Navy, and the War Industries Board, said committee to be charged with the duty of recommending the development of further facilities for toluol and a distribution of all toluol produced. 5 The price paid for the toluol which was so commandeered was $1.50 per gallon. In June, 1918, this price was extended to cover all toluol released for rionmilitary purposes, at the following rates : 8 Per gallon. Car lots in tank cars 1 $1. 50 Any quantity in drums 1.55 1 War Trade Board Ruling 378. 2 Minutes of War Industries Board, June 27, 1918. 3 Second Annual Report of the Chemical Alliance, January, 1919. 4 Letter of Apr. 8. 1919, from Mr. W. G. Woolfolk, head of the sulphur, pyrites, and alcohol section of the War Industries Board. r > Minutes of the War Industries Board, Jan. 30, 1918. " The toluol section of the chemical division of th War Industries Board sent the fol- lowing naemorandum to the chief of the chemical section on Aug. 30, 1918 : " We are advised by the hoard of appraisers, War Department, that an award of $1.50 per gallon has been made on toluol taken under existing compulsory order. The award to run for duration of the order." 812 HISTORY OF PRICES DURING THE WAR. No release for shipment was granted where a price in excess of above is asked, and all releases other than for military purposes were stamped: Released only upon condition that price does not exceed $1.50 per gallon in tank cars; $>1.55 in drums. 1 WOOD CHEMICALS. Under a commandeering order issued December 24, 1917, by the director of purchases, storage and traffic, through the wood chemicals section of the War Industries Board all wood chemicals were commandeered for a period of six months. The prices of acetate of lime, acetic anhydride, acetone, wood alcohol, ethyl methyl ketone, and methyl acetone were fixed at the same time; prices for acetic acid, formaldehyde and methyl acetate were announced in February, 1918. On July 1, 1918, this commandeering order was reissued to continue until January 1, 1919. The same prices were awarded by the board of appraisers. The order was canceled December 14, 1918. WOOL GREASE. The price-fixing committee has approved an agreement made by the producers of wool grease fixing a maximum price of 16 cents per pound packed in barrels f. o. b. shipping point this price to take effect September 17, 1918, expiring December 17, 1918, both dates inclusive, and covering all sales made both to the Government and to the public. This price applied to wool grease containing a moisture content not exceeding 3 per cent and any excess of moisture above 3 per cent called for a proportionately lower price. The guarantee of ash was limited to 2 per cent. It was further agreed by the producers that all sales should be made subject to allocation by the " Tanning material and natural dye section " of the War Industries Board. The prices were discontinued on the date of expiration. 1 Metallurgical and Engineering Chemistry, June 1, 1918. 10. RUBBER, The appended circular issued by the War Trade Board on April 30, 1918, indi- cates the origin and nature of the control over the prices of rubber and rubber substitutes. On Dec-ember 14 and 23, 1918, the War Trade Board discontinued the Govern- ment option price and removed the restrictions on imports. 1 CIRCULAR ISSUED BY WAR TRADE BOARD APRIL 30, 1918. The importance of securing every possible ship for trans-Atlantic uses in con- nection with carrying on the war has now become paramount. With this in view, the quantity of various articles of commerce heretofore freely imported will be substantially limited until further notice. Among these commodities is crude rubber. To the end that such limitation of imports shall not invite hoarding, specula- tive dealing, and profiteering, the War Trade Board has arranged that those dealing in this raw material and the manufacturers thereof will be governed by rules and regulations about to be promulgated by the War Trade Board to the entire rubber industry through the Rubber Association of America. You are, therefore, hereby instructed on and after May 1, 1918, not to indorse any bills of lading for crude rubber or to accept any transfers or to release any crude rubber without securing from the transferees or the applicant for a release an option and a guarantee in substantially the following form : OPTION AND GUARANTY CLAUSE TO BE INSERTED IN PRESENT RUBBER GUARANTY. That the United States Government shall have, and it is hereby granted, an option to purchase at the prices and on the terms hereafter set forth all or any part of the crude rubber covered by this guaranty and also all other crude rubber now or hereafter owned or controlled by the undersigned until sold and delivered to a manufacturer. In the event of the exercise of such option price to be paid for crude rubber and gums is fixed in accordance with the appended schedules. That the undersigned will not sell, transfer, or deliver the rubber covered by the foregoing option, or any part thereof, to or for the benefit of any person at a price greater than the prices set forth in the foregoing option, except such rubber as he may be under contractual obligation to deliver under a contract executed and in force prior to May 1, 1918. Copies of such contracts, sworn to as being correct, must be' filed with the War Trade Board within five days from this date. Any deliveries made under such contracts to manufacturers subsequent to the date on which import restric- tions and a plan for the allocation of crude rubber shall be made effective shall constitute a portion of the amount allocated to such manufacturers under such plan. PRICES EFFECTIVE MAY 1, 1918. Per pound. Para, upriver fine $0.68 Plantation : First latex crgpe .63 Smoked sheets, standard quality . 62 PRICES EFFECTIVE MAT 14, 1918. Plantation qualities : Off standard latex crepe . 62 Off color latex , 61 No. 1 amber crepe . 60 No. 2 amber crgpe , . 60 1 War Trade Board Rulings 414, 456. 813 814 HISTORY OF PRICES DURING THE WAR. Plantation qualities Continued. Per pound. No. 3 amber crgpe (medium color)- $0.58 No. 4 amber crpe (darkish color) ~ .57 Prime, clean, light-brown cr6pe, thick and/or thin . GO Medium color brown, clean crfipe, thick and/or thin . 58 Good dark-brown crgpe, thick and/or thin .54 Specky brown crgpe, thick and/or thin . 50 Massed or rolled crfipe .44 Colombo scrap No. 1 quality . 46 Colombo scrap No. 2 quality . 44 Standard quality smooth smoked sheets i.60 Standard quality unsmoked sheets 2 .61 Mexican guayule : Guayule crude, with 20 per cent guaranty of shrinkage . 35 Clean, dry, and treated guayule, such as Duro, Triangle, Box, Torreon, and Alto brands . 48 Para grades : Upriver medium . 6.1 Manaos weak fine . 5t> Upriver coarse . 40 Upper Caucho ball . 40 Xingu ball . 38 Lower Caucho ball . 36 Islands fine . 59 Islands coarse . 27 Cameta . 28 Central American grades : Central scrap Esmeralda . 30 Corinto . 39 Mexican , . 30 Bluefield . 39 Central slab Guatemala . 32 Colombian . 32 Mexican, and others of 'similar nature . 32 African grades : Red Congo ball 48 Black Congo Kassai . 50 Lopori . 50 Equateur . 50 Sangha and similar grades . 50 Benguellas, 32J per cent shrinkage .29 Benguellas, 28 per cent shrinkage . 33 Niger paste and flake .28 Red Kassai nuggets, cords, and similar grades .42 Massais : . 55 Rio Nunez . r>r> Miscellaneous : Mattogrosso fine . 53 Mattogrosso coarse . 38 Penang (this includes Java) .37 Caucho tails . 35 Gutta Joolatong (Pontianac) : Palambang . 16 Banjermassiu . 15 Sarawak . 14 Pressed Gutta Joolatong, having approximately 40 per cent of shrinkage loss . 25 Gutta Siak , 3 28 Balata : Prime suriname amber sheet .97 Fair average sheet .95 Venezuela block . 71 Colombian block . 61 Panama block . 59 Other grades of Balata at their relative value. Gutta-percha : Red Macassan 3. 00 Other grades at their relative value. PRICES EFFECTIVE MAY 29, 1918. Manicoba (on the basis of 30 per cent loss in washing and drying) . 36J (Lower qualities to be priced in accordance, so that they shall not cost the manufacturer over 52 cents per pound dry weight.) Mollendo fine . 60 Tapajos . 61 Xingu fine . 63 Peruvian weak fine '. . 55 Lower Amazon weak fine . 45 PRICES EFFECTIVE JUNE 13, 1918. Knapsack Madeira fine Para . 73 Madeira fine Para . 69 1 Revised May 29 to 61 cents. 2 Revised May 29 to 60 cents. 3 In bond. GOVERNMENT REGULATIONS RELATING TO PRICES. 815 riiK'KS KFKKCTIVK JT'LY 2, 191*. Africans : Per Pound. Accra (Gold Coast) lumps $0.28 Lagos lumps , . 28 Lump flake . 28 Conakry niggers . 55 Prime Mozambique ball .52 Sierra Leone niggers .50 Hatisa hall .35 Hausa cake . f5 Cameroon ball and similar grades . 35 Gambia niggers . 45 Prime Madagascar qualities (on the basis of 35 per cent shrinkage) _* . 35 Madagascar niggers (on the basis of 45 per cent shrinkage) . 29 Assam and Rambong: Prime crepes . 60 Good quality crepes . 58 Assam onions . 54 PRICKS EFFECTIVE .Tl'IA' t\, l!Hs. Para, fine : Peruvian . 67 Cut Angostura .64 Para, medium : Peruvian .62 Cut Angostura .58 Coarse, medium . 45 Para, coarse : Peruvian . 37 Mollendo . 37 Rio Negro coarse * . 38 Rio Negro strings .35 Nugget coarse . 46 Angostura coarse . 37 Tapa.ios coarse . 38 Xingu coarse . 38 Ceara coarse (Negroheads) .38 Miscellaneous : Ceara scrap 1 .37 Pernambuco sheet . 35 Mangabeira sheet 1 . 35 Upper Caucho slab . . 33 All of the above prices are on the basis of c. i. f. New York. 11. NEWS-PRINT PAPER. Pursuant to a resolution of the United States Senate, dated April 24, 1916, the Federal Trade Commission undertook an investigation of the news-print paper industry of the United States. In February, 1917, certain manufacturers requested the Federal Trade Commission to fix " a fair and reasonable price for the sale of such paper for use in the United States " in the period from March 1, 1917*, to September 1, 1917. Such a price was fixed by the commis- sion on March 3, 1917. After this agreement was adopted a Federal grand jury for the southern district of New York found indictments against four of the signatories to the agreement for violations of the Sherman antitrust law. The agreement soon collapsed. On November 26, 1917, a new agreement was made between Thomas W. Gregory, Attorney General of the United States, as trustee, and certain persons and corporations engaged in the manufacture and sale of news-print paper. The substance of this agreement and the subsequent action of the Federal Trade Commission are given in the statement below issued by the commission on June 18, 1918. The prices announced upon the different dates of agreement are here arranged in tabular form. Commodity. Agency fixing price. Date or period. Price fixed (f.o.b. mill). Paper, news-print. Roll news in car lots Per cwt. S3 10 Roll news in less than car lots Sheet news in car lots Federal Trade Commis- sion. {Apr. 1. 1918; set originally for duration of the war 3.22 3 50 Sheet news in less than car lots. . . and 3 months thereafter. 3 62J Roll news in car lots. Arbitration decision on . 3 50 Roll news in less than car lots Sept. 25 t 1918, by United Apr. 1, 1918; for duration 3 62i Sheet news in car lots ..... States circuit court, sec- > of the war and 3 months 3 90 Sheet news in less than car lots ond circuit 1 thereafter. 4 02i Roll news in car lots. Revised prices allowing 3 63J Roll news in less than car lots Federal Trade Commis- sion; prices revised Oct. for wage increase be- came effective May 1 3.7$ 4 03| Sheet news in less than car lots 18, 1918. 1918 4 15 s Roll news in car lots. . Revised prices allowing 3 75* Roll news in less than car lots . .do for freight increase be- 2.87; Sheet news in car lots Sheet news in less than car lots . came effective July 1. 1918 4. 15 4.27J FINDINGS OF THE FEDERAL TRADE COMMISSION OF PRICES AND TERMS OF CONTRACT AND SALES OF NEWS-PRINT PAPER UNDER AGREEMENT DATED NOVEMBER 26, 1917. The Federal Trade Commission has had before it as a reference the agree- ment made on November 26, 1917, between Thomas W. Gregory, the Attorney General of the United States, as trustee, and certain persons and corporations engaged in the manufacture and sale of news-print paper. The manufacturers, parties to this agreement, comprise three United States companies and seven Canadian companies, as follows: United States com- panies International Paper Co., Minnesota & Ontario Power Co., Gould Paper Co. Canadian companies Spanish River Pulp & Paper Mills (Ltd.), Abitibi Power & Paper Co. (Ltd.), Laurentide Co. (Ltd.), Belgo-Canadian Pulp & Paper Co. (Ltd.), Price Bros. & Co. (Ltd.), Donnacona Paper Co. (Ltd.), Bromp- ton Pulp & Paper Co. (Ltd.). Those 10 companies produced in 1917 about 950,000 tons of news-print paper, or nearly 50 per cent of the total output of all mills on the North American Continent. The bulk of this tonnage was consumed by newspaper publishers in the United States. 816 GOVERNMENT REGULATIONS RELATING TO PRICES. 817 The agreement provides, briefly, that the Federal Trade Commission shall fix the maximum prices and terms of sale of the output of the news-print paper of these 10 companies sold to purchasers in the United States for the duration of the war and three months thereafter. In the case of the Minne- sota & Ontario Power Co. and its subsidiary, the Fort Frances Pulp & Paper Co. (Ltd.), the agreement provides that the prices shall be fixed as of January 1, 1918. The commission is also directed to determine the just and reasonable maximum prices and terms of resale of all paper merchants, sales agents, or other middlemen selling the product of these 10 companies to customers in the United States. All parties at interest were invited to lay before the commission any perti- nent data, and counsel were diligent and helpful to the commission in securing a complete knowledge of the circumstances surrounding production and distri- bution. Extensive hearings were held and a mass of evidence taken. Cost figures were drawn from books of original entry and the vouchers and accounts of the several manufacturers were scrutinized by expert accountants. Complete appraisals of various plants were also presented. Nei PS print prices. The commission has heard the evidence and examined the data presented to it and finds the following maximum prices as of April 1, 1918, to be fair and reasonable for each of the 10 signatory companies for sales of standard newsprint paper to customers in the United States : Roll news in car lots, $3.10 per 100 pounds f. o. b. mill. Roll news in less than car lots, $3.22 per 100 pounds f. o. b. mill. Sheet news in car lots, $3.50 per 100 pounds f. o. b. mill. Sheet news in less than car lots, $3.62^ per 100 pounds f. o. b. mill. The cost of the Brompton Pulp & Paper Co. (Ltd.), which is an incomplete mill o,f small newsprint tonnage and which buys its sulphite, was not allowed to control in the determination of the above prices. The Minnesota & Ontario Power Co. is directed to adjust its settlements for the months of January, February, and March, 1918, on a basis of 10 cents per 100 pounds above these maximum prices, thereafter the said maximum prices shall apply. Terms of sale. The commission directs that the so-called standard form of contract be used at this time, with changes in terms that shall provide: (a) A definite tonnage specification and passage of full and unrestricted title to the customer upon delivery, and (b) that the signatory manufacturers shall credit customers for overweight above the 32-pound basis, computed by taking the annual average of the total tonnage delivered on contract, provided that the customer gives such prompt notice as to overweights from time to time as will enable the manufacturer, if he desires, to verify the claims currently and to make correction in weights of subsequent deliveries. Certain other changes in the terms of contract urged by the publishers con- tain merit, but this does not appear to be a proper time for introducing avoidable changes. Jobbers' prices and terms of resale. The maximum commissions for jobbers or other middlemen selling newsprint obtained from any of the signatory manufacturers to customers in the United States shall be 15 cents per 100 pounds on carload lots, 40 cents per 100 pounds on less than car lots, and 60 cents per 100 pounds on less than ton lots. The commissions shall be added to the actual cost of paper at the mill or at the warehouse. The cost at the warehouse will be the net mill price plus freight, cartage, and other reasonable necessary expenses incurred in getting the paper to the warehouse. In billing customers these items and the commis- sion shall be stated separately. SEPTEMBER 25, 1918. The findings and award of the Federal Trade Commission concerning prices and terms of contract and sale of news-print paper, as announced June 18, 1918, were appealed for review to the United States circuit court. The decision of this court, as issued on September 25, 1918, is given in the following statement. 125547 20 52 818 HISTORY OF PRICES DURING THE WAR. FINDINGS AND CONCLUSIONS OF THE JUDGES OF THE CIRCUIT COURT IN NEWS-PRINT CASE. FINDINGS. 1. Our jurisdiction rests solely on the consent of the signatory parties; we act as arbitrators only. 2. The principles applied by courts of authority in regulating rates for public utilities should be followed in this proceeding as nearly as possible. 3. In valuing the capital investment used in producing news print, prices before the present European War should be adopted. 4. We are not informed as to the investment or value of the plant of the Gould Paper Co. The Brompton Co. produces little news print, and that under abnormal conditions. Therefore, these manufacturers must conform to the fair maximum price fixed for the other eight parties and based upon the evidence concerning said eight businesses. 5. In ascertaining capital investment, i. e., the present value of property actually used in paper production, we exclude timber lands whether owned or leased, also undeveloped or potential water power, i. e., water rights; but in- clude mill and town sites, terminal facilities, and improvements on or develop- ment of natural water powers, together with any investment by way of actual payment for power rights. The foregoing allowed elements of capital value are the " tangibles." 6. Going concern value and working capital are proper additions to " tangibles." 7. In ascertaining manufacturing cost, no allowance for stmnpage in respect ' of wood obtained from leased Canadian Crown lands) is made, such stmnpage not representing any actual disbursement, nor the partial exhaustion of prop- erty for which payment (on stumpage basis) was ever made. In respect, however, of wood cut in owned lands, such stumpage charge is proper, and $2 per cord is less than the market rate. 8. Owing to more costly wood and higher expenses for labor, taxes, and freight charges, the typical mill in the United States can not, with equal skill in management, produce paper as cheaply as a similar mill in Canada; such disadvantage means an additional cost per ton of paper of slightly more than $5. 9. The Spanish River Co. is an exception to the Canadian manufacturers solely because of a high and wholly unexplained wood cost. 10. The maximum selling price fixed for all the signatories should be based on an average of the reasonable capital investments, and fair manufacturing costs of the signatory parties, other than the Gould & Brompton Cos. 11. It is not advisable to make any special rate by way of favor for manu- facturers meeting with special but temporary misfortune. The high manu- facturing cost of The Minnesota & Ontario Co., due to drought, and the serious loss of the Abitibi Co., ascribed to sabotage, are business accidents which would not relieve them from the competition of more fortunate rivals in ordinary times, and under a fixed maximum rate they must still meet competition. 12. We consider ourselves bound by agreement of parties that the annual production of each manufacturer is to be taken as the proven daily capacity of plant multiplied by 300 yearly working days. Therefore, we disregard the fact also proven that the output of the signatory parties for 1917 was 5.6 per cent over the assumed production. 13. The fair present value, as depreciated and at prewar prices of an integrated paper-mill plant, per ton of daily capacity, is : Tangibles $25, 000 Going concern value, 10 per cent 2, 500 Working capital 12, 000 Total 39, 500 14. A fair maximum return on said capital in a business of the hazards proven is 15 per cent per annum. 15. The actual cost of making 1 ton of news-print paper in an average Canadian mill, out of recently gathered wood and without any allowance for stumpage not actually paid, was not less than $48, on or about April 1, 1918. There is no evidence or suggestion that any element of cost has since then GOVERNMENT REGULATIONS RELATING TO PRICES. 819 diminished. The same ton of paper would have cost, if made in the United States, about $5 more; and the average cost for the eight manufacturers considered is more than $50 per ton. CONCLUSION. Applying the foregoing findings to a plant having daily capacity of 100 tons : The capital invested is $39,500X100 $3,950,000 The fair annual return. 15 per cent . 592. 500 To be obtained by selling all of an annual production of 30,000 tons, or a profit per ton of 19.75 Add to this average cost of manufacture, say 50. 25 And 70. 00 should be the maximum selling price of 1 ton of news print in rolls f. o. b. mill, It is therefore ordered that the finding or award of the Federal Trade Com- mission be varied so as to read as follows: The fair and reasonable maximum prices for each of the 10 signatory com- panies for sales of standard news-print paper to customers in the United States are: Per cwt. Roll news in car lots $3. 50 Roll news in less than car lots 3. 62* Sheet news in car lots 3.90 Sheet news in less than car lots 4. 02$ All prices are f. o. V. mill. The Minnesota & Ontario Co. is directed to adjust its outstanding settlements for the months of January, February, and March, 1918, at not over the maxi- mum hereby fixed. In no other respect does this vary from the award of the Federal Trade Com- mission. OCTOBER 18. 1918. Following the announcement of the decision of the United States Circuit Court, on September 25, 1918, in regard to the award of the Federal Trade Commission concerning prices for sales of standard news-print paper in the United States, the commission issued supplemental findings on October 18, 1918. Those findings and the subsequent action based upon them are given below. % SUPPLEMENTAL FINDINGS OF THE FEDERAL TRADE COMMISSION. Subsequent to the finding and award of the members of the Federal Trade Commission acting as arbitrators in the above proceedings, which finding and award was made June 18, 1918, the said award was appealed for review to Hon. H. G. Ward, Hon. Henry W. Rogers, Hon. Charles M. Hough, and Hon. Martin T. M:;nton, judges of the United States Circuit Court, for the Second Circuit, acting as reviewing arbitrators. On September 25, 1918, the reviewing arbitrators ordered that the finding or award of the Federal Trade Commission be varied so as to read as follows : The fair and reasonable maximum prices for each of the 10 signatory com- panies for sales of standard news-print paper to customers in the United States are: Per cwt. Roll news in car lots - -- $3.50 Roll news in less than car lots 3. 62^ Sheet news in car lots 3. 90 Sheet news in less than car lots 4.02 All prices are f. o. b. mill. Accordingly the Federal Trade Commission hereby directs that its findings be varied as above set forth, to be effective as of April 1 1918, for all the signatory companies, and in the case of the Minnesota & Ontario Power Co. to be effective as of January 1, 1918. 820 HISTORY OF PRICES DURING THE WAR. FINDINGS AS TO COST INCREASES. Subsequent to the finding and award of the members of the Federal Trade Commission as arbitrators, dated June 18, 1918, there were submitted to the commissioners by one of the parties hereto certain claims as to the effect of changes in rates of wages, freight rates, and wood costs since April 1, 1918. These changes cover the period from April 1 up to and including the date of the supplemental hearing, which was July 29 and 30, 1918. The figures presented have been analyzed and checked by the commission's accountants, and the accountants' report has been put in evidence by stipula- tion of parties. It appears from this stipulation that there have been increases in the cost of production of news print chargeable to these three factors, as follows : Per ton. Per hun- dredweight. (1) Wood cost increase (since Apr. 1, 1918) $3 75 jO 187 (2) Wage increase (since May 1, 1918) 2 65 IQt (3) Freight increase (since July 1, 1918) 2 41 12 WOOD COST INCREASES. As noted above, the accountants' report shows an increase in wood cost for the International Paper Co., amounting to $3.75 per ton of paper. In arriving at the base price of $3.10 per hundred pounds, effective April 1, 1918, the com- mission took into account an increase in cost of $2.50 per ton of paper since the International Paper Co. and the Minnesota & Ontario Power Co. were practically on a new wood basis after April 1. In calculating the base price of $3.50 per hundred pounds, the reviewing arbitrators also apparently took into consideration the factor of increased wood cost. They say in paragraph 15 : " The actual cost of making 1 ton of news-print paper in an average Canadian mill, out of recently gathered wood and without any allowance for stumpage not actually paid, was not less than $48 on or about April 1, 1918." No wood has been gathered since that date, wherefore the increased wood cost is taken to be included in the reviewing arbitrators' calculations. The commission, therefore, finds that no increase in price is to be made as a result of claimed increases in wood costs. INCREASE IN WAGES. The commission finds that, since May 1, 1918, there has been an increased labor cost of $2.65 per ton, or 13| cents per hundred pounds, and it appears to be bound to add this amount to the selling prices as varied by order of the re- viewing arbitrators. The commission, therefore, finds and orders that adjustments since May 1, 1918, between parties hereto, shall be made on the following basis : Per cwt. Roll news in car lots $3. 631 Roll news in less than car lots 3. 75f Sheet news in car lots 4. 03J Sheet news in less than car lots 4. 15f All prices are f. o. b. mill. INCREASE IN FREIGHT. The commission finds that an increase in freight rates went into effect June 25, 1918, that said increase adds $2.41 per ton, or 12 cents per hundred pounds, and that such increase became operative as to the signatory companies on July 1, 1918 ; and it appears to be also bound to add this amount to the selling prices as varied by order of the reviewing arbitrators. GOVERNMENT REGULATIONS RELATING TO PRICES. 821 The commission, therefore, finds and orders that adjustments since July I, 1918, between parties hereto, shall be made on the following basis : Per hundredweight. Roll news in car lots $3. 75i Roll news in less than car lots 3. 87 Sheet news in car lots 4. 15i Sheet news in less than car lots 4. 27f All prices are f. o. b. mill. PROFIT BASIS FOR NEWSPRINT PAPEE. In ma King their award the reviewing arbitrators calculated a net average profit of $19.75 per ton as a fair and reasonable profit. It has been shown (Federal Trade Commission Report on the News- print Paper Industry, June 13, 1917, p. 105, and included in the evidence in. this case) that the prewar average profit per ton for the manufacture and sale of newsprint paper for United States and Canadian mills was as follows (figures for signatory manufacturers are added for comparison) : Year. United States mills. Inter- national Paper Co. and Minne- sota and Ontario Co. Canadian mills. Six Canadian signatories. United States and Canadian combined. Eight signatory companies combined. 1 1913 .. $5 53 $5 13 $6 45 $4 98 $5 70 15 09 1914 4 94 5 55 6 62 5 71 5 35 6 61 1915 5 59 6 37 8 13 6 82 6 34 6 55 1916 (first half) 6 75 6 99 9 54 8 15 7 55 7.46 1 Brompton and Gould not included. It is fair to presume that, on the average, capital has been invested in the manufacture of newsprint paper on an expectation of a net average profit of not more than $10 per ton. The increases in cost of wood, freight, and labor shown above are found to be the result of war conditions and to be unavoidable by either party. It has been established by governmental price-fixing authorities that during the war in case of unusual cost increase caused by war conditions and working a hardship, such increase should be equitably distributed and not passed ou in toto to the purchaser. Were the commission free to express its judgment in a finding at this time it would hold that the net average profit of $19.75 was ample to absorb all in- creases in wood costs, labor costs, and freight charges up to the present time, in which case the result might be stated thus : Per ton. Per hundred- weight. Under the price fixed by the reviewing arbitrators there is a net average profit per ton including increased wood costs of $19 75 $0 987 Increased labor cost from May 1, 1918 . $2. 65 Increased freight cost from July 1, 1918. . . 2. 41 K f\C Average net profit after absorbing increased cost 14.69 .73 Highest average 8 signatory companies (first half 1916) . 7.46 .37 7 23 36 Feeling itself bound, however, by the order of the reviewing arbitrators, the commission finds selling prices for the three periods, April 1, 1918, May 1, 1918, and July 1, 1918, as above set forth and orders that adjustments between parties be made, as of such dates, accordingly. In all other particulars the findings of the commission of June 18, 1918, are affirmed. BIBLIOGRAPHY. There follows a brief bibliography of selected periodical refer- ences to Government price control in the United States during the war. The Official Bulletin, published by the Government, and the Commercial and Financial Chronicle give especially comprehensive statements of the formal controls as they were adopted. The New York Public Library and the Congressional Library at Washington, at the request of those interested in this inquiry, have each prepared for distribution a much fuller bibliography on this subject than can here be printed. AMERICAN ECONOMIC REVIEW. .Jones, Eliot. Report on anthracite and bituminous coal. Dec., 1917, v. 7: 919-923. Duffres, W. M. Government control of the wheat trade in the United States. 1918, v. 8: 62-87. Value and price theory in relation to price fixing and war finance. Mar., 1918, v. 8, sup.: 239-256. Report Government marketing of Australian wheat. Dec., 1918, v. 8: 853-858. AMERICAN REVIEW OF REVIEWS. Dillon, John J. High cost of food, causes and remedies. Feb., 1917, v. 5-~> : 163-164. Seliginan, E. R. A. Government price regulation. Sept., 1917, v. 56 : 289-292. ATLANTIC MONTHLY. Lubin, D. Food control and democracy. 1917, v. 120: 260-269. CENTURY. Creel, George. Can a democratic government control prices? Interview with Joseph E. Da vies. Feb., 1917, v. 93: 605-611. THE COMMERCIAL AND FINANCIAL CHRONICLE. GENERAL. War and socialism. Feb. 17, 1917, v. 104 : 597. Rushing into dictatorships. Mar. 3, 1917, v. 104 : 796-7. The food situation Statutes no panacea. Mar. 10, 1917, v. 104:897. Fears of Government regulation. Editorial. Apr. 14, 1917, v. 104 : 1420. One way of rendering service to the country The food question. Apr. 14, 1917, v. 104 : 1432. Secretary of the Xavy reduces prices of torpedoes from E. W. Bliss Co. Apr. 21, 1917, v. 104:1554. Herbert C. Hoover to handle Nation's food problems. Apr. 21, 1917, v. 104 : J1555. Danger of Government control. Editorial. May 5, 1917, v. 104 : 1730 Patriotism to and by Government. May 26, 1917, v. 104:2051-2053. 822 GOVERNMENT REGULATIONS RELATING TO PRICES. 823 E. H. Gary on principles for which we are fighting. May 26, 1917, v. 104: 2067. Regulating prices The low supply and demand. June 16, 1917, v. 104: 2382-2385. Food control The latest dictatorship bill. June 16, 1917, v. 104 : 2385. The food control bill. June 30, 1917, v. 104 : 2592. President's warning against high prices. July 14, 1917, v. 105 : 135. The resort to commissions and what it means. July 21, 1917, v. 105 : 218. The food control bill enacted. Aug. 11, 1917, v. 105 : 540. The Food Administration Its purposes and plans. Aug. 18, 1917, v. 105 : 664. Federal control of wheat and flour. Aug. 18, 1917, v. 105 : 665. What the New War Industries Board may accomplish. Aug. 18. 1917, v. 105 : 667. Has Congress power to create a dictator? Aug. 25, 1917, v, 105:749-51. Fixing prices of food and fuel. Sept. 1, 1917, v. 105:850-52. Labor strikes, price fixing, and the war. Sept. 22, 1917, v. 105 : 1140-42. The retailer and Government price control. Nov. 3, 1917, v. 105 : 1745. Business as usual What does it mean? Nov. 10, 1917, v. 105:1834-36. L. E. Pierson on obligations of Government and business in the war. Nov. 17, 1917, v. 105 : 1941. United States Chamber of Commerce on progress of Government price con- trol. Dec. 1, 1917, v. 105 : 2144. Foreign trade council urges coordination of price fixing and taxation. Dec. 1, 1917, v. 105:2147. Our experiments in " Government control." Jan. 19, 1918, v. 106 : 218. Proposed Government control of security issues. Jan. 19, 1918, v. 106 : 235. Congress, the President, and the " War Council." Jan. 26, 1918, v. 106 : 325. Impending price-fixing bill. Editorial. Feb. 2, 1918, v. 106 : 418. Executive order regulating control of foreign exchange by Federal Reserve Board. Feb. 2, 1918, v. 106:438. Discussion of Government control. Editorial. Feb. 9, 1918, v. 106 : 524. No general price fixing on agricultural products. Mar. 2, 1918, v. 106 : 876. * Senator Lodge in criticism of Fuel Administration and price fixing of Gov- ornment. Mar. 2, 1918, v. 106 : 880. Committee to pass on prices for basic raw materials for Government. Mar. 23, 1918, v. 106 : 1187. Retrospect of 1917. Mar. 30, 1918, v. 106 : 1280-86. Is there a legal limit to price control? April 6, 1918, v. 106:1394. Requirements division of War Industries Board to carry out policies of B. M. Baruch. Apr. 13, 1918, v. 106 : 1524. Charles H. Sabin on Government price regulation. May 25, 1918, v. 106 : 2169. Whalkis profiteering and who are the profiteers? June 8, 1918, v. 106: 2376. Retrospect of 1917. June 29, 1918, v. 106 : 2693. How business runs the Government. Aug. 17, 1918, v. 107 : 635. Oar apathetic acceptance of control and operation. Aug. 31, 1918, v. 107: 837. Proposed Government control of retail dry goods. Oct. 12. 1918, v. 107: 1430. Judge Gary's view as to readjustment period. Nov. 16, 1918, v. 107: 1884. Reconstruction and resumption. Release from Government control. Nov. 23, 1918, v. 107 : 1951. Fixed prices discontinued. Dec. 7, 1918, v. 107 : 2148. A proposal for the governmental fixing of retail prides. Dec. 14, 1918, v. 107 : 2221. Ohas. E. Hughes sees greater efficiency in private than Government control. Dec, 14, 1918, v. 107 : 2236. 824 HISTOKY OF PRICES DURING THE WAR. ACIDS. Sulphuric and nitric acid prices. June 29, 1918, v. 106 : 2712. ALCOHOL. Wood alcohol output taken by Government. Dec. 22, 1917, v. 105 : 2411. ALUMINUM. Rejection of aluminum price recommended by Council of Defense. July 7, 1917, v. 105 : 22. Aluminum prices approved by the President. Mar. 9, 1918, v. 106 : 983. New aluminum prices approved. June 1, 1918, v. 106 : 2294. Aluminum prices continued. Aug. 24, 1918, v. 107 : 759. ARSENIC. Fixing of arsenic prices by United States Government. June 1, 1918, v. BINDER TWINE. Control of binder twine output by Government. Jan. 12, 1918, v. 106 : 142. Scale of prices announced by Food Administration. Mar. 2, 1918, v. 106 : 879. CASTOR-OIL BEANS. Price of $4.50 per bushel fixed. Nov. 2, 1918, v. 107 : 1714. CEMENT. Cement price fixing by the Government. May 25, 1918, v. 106 : 2183. COPPER. Copper producers' offer to the Government. Mar. 24, 1917, v. 104 : 1108. Government order for copper at a fixed price. June 30, 1917, v. 104 : 2603. Government lowers price of copper. July 14, 1917, v. 105 : 133. Government fixed price. Sept. 22, 1917, v. 105 : 1165. Attitude of copper trade toward Government's price. Sept. 29, 1917, v. 105 : 1264. Conference of copper interests with Government officials. May 4, 1918, v. \ 106 : 1856. Government's price continuing. Wall Street comment. May 25, 1918, v. 106 : 2182. Increase in copper price by War Industries Board. July 6, 1918, v. 107 : 35. Copper to remain at 26 cents. Comment. Aug. 10, 1918, v. 107 : 562. Copper price continued. Comment. Nov. 2, 1918, v. 107 : 1715. Copper price continued. Nov. 23, 1918, v. 107 : 1967. COTTON. A suggestion that the Government contract ahead for the growing cotton crop. June 30, 1917, v. 104 : 2593. Denial of cotton price-fixing movement. Feb. 9, 1918, v. 106 : 553. War Trade Board's announcement concerning cotton shipments to Spain. Apr. 13, 1918, v. 106:1524. GOVERNMENT REGULATIONS RELATING TO PRICES. 825 Conference looking to stabilization of cotton industry. Apr. 33, 1918, v. 306: 1528. Bill fixing price of raw cotton at 20 cents. Apr. 20, 1918, v. 106 : 1627. Cotton manufacturers' resolutions on price fixing, coal priority, etc. May 11, 3918, v. 106: 1961. Tentative plan for price fixing of cotton goods. June 15, 1918, v. 106 : 2506. Government plans concerning cotton price fixing. June 29, 1918, v. 106 : 2708. Beverly D. Harris on stabilization of cotton prices. July 13, 1918, v. 107 : 130. Proposed fixing of cotton price. Sept. 7, 1918, v. 107 : 949. Developments growing out of reports of cotton price fixing. Sept. 21, 1918, v. 107 : 1150 ; Sept. 28, 1918, v. 107 : 1250 ; Oct. 12, 1918, v. 107 : 1438. Cotton price fixing unnecessary. Nov. 9, 1918, v. 107. 1788. Cotton goods prices continued. Nov. 23, 1918, v. 107 : 1964. Cotton price fixing to cease Jan. 1. Dec. 14, 1918, v. 107 : 2238. COTTON LINTKRS. Questionnaire on cotton linters issued by War Industries Board. June 1, 1918, v. 106 : 2289. COTTONSEED. Regulations to prevent hoarding and speculation in cottonseed. Nov. 10, 1917, v. 105 : 1853. "Rules for cottonseed buyers and sellers. Aug. 10, 1918, v. 107 : 562-3. Prevailing price of cottonseed held to be too low by Texas commissioner. Aug. 24, 1918, v. 107 : 755. Price stabilization of cottonseed. Sept. 21, 1918, v. 107 : 1151. Speculation in cottonseed. Nov. 10, 1917, v. 105 : 1853. FERTILIZERS. Proclamation licensing fertilizer industry. Mar. 2, 1918, v. 106 : 880. FOOD. GENERAL. The food riots and measures of relief. Feb. 24, 1917, v. 104 : 699. The food shortage the seat of the disease. Mar. 3, 1917, v. 104 : 796-7. J. Ogden Armour urges Government control of food. Apr. 14, 1917, v. 104 : 1447-8. The food problem and the farmer normal methods best. Apr. 21, 1917, v. 304:1536-7. Secretary Houston would fix food prices. Apr. 21, 1917, v. 104 : 1556. Herbert C. Hoover appointed Food Administrator. May 26, 1917, v. 104 : 2072. The administration's food-control bills. June 9, 1917, v. 104 : 2298-9. Herbert C. Hoover outlines Food Administration program. June 9, 1917, v. 104 : 2301-2. The Administration's food-control bills. June 30, 1917, v. 104 : 2608^-9 ; July 14, 1917, v. 105 : 138 ; July 28, 1917, v. 105 : 340-1 ; Aug. 11, 1917, v. 105 : 555-6. New York Legislature in session to consider food bill. Aug. 4, 1917, v. 105 : 452-3. Text of food-control bill. Aug. 11, 1917, v. 105 : 556-7-8. Text of food-survey bill. Aug. 11, 1917, v. 105: 559. Food control launched. Aug. 18, 1917, v. 105 : 646-7. 826 HISTORY OF PRICES DURING THE WAR. Federal control of food to begin Nov. 1. Oct. 13, 1917, v. 105 : 1472. The President defines fair profit for foodstuffs as normal average obtained prior to July, 1914. Dec. 8, 1917, v. 105 : 2231. Review of course of food prices by Mr. Hoover. Nov. 1C, 1918, v. 107 : 1878-9. BAKING INDUSTRY. Government regulation of baking industry. Nov. 17, 1917, v. 105 : 1944-46. ^Food Administration's announcement regarding baking rules under new license regulations. Feb. 9, 1918, v. 106 : 549. CANNERS. Maximum margins allowed canners. Apr. 27, 1918, v. 106 : 1747. COFFEE. Licensing of green-coffee dealers to prevent outside speculation. Feb. 9, 1918, \. 106 : 549. Speculation in green coffee prohibited. Feb. 9, 1918, v. 106: 550. New York Coffee and Sugar Exchange's resolution banning circulars encour- aging speculation. Feb. 23, 1918, v. 106 : 771. New division in Food Administration to pass on coffee. Mar. 2, 1918, v. 106 : 878. Regulations for green-coffee dealers. May 4, 1918, v. 106 : 1852. Coffee import ruling. Juno 1, 1918, v. 106 : 2288. Coffee-trade committee to cooperate with United States Food Administration. June 15, 1918, v. 106:2505. Modification of coffee rules urged. June 22, 1918, v. 106 : 2611 Coffee price stabilization. Oct. 19, 1918, v. 107 : 1535. Coffee futures ordered liquidated at fixed maximum prices. Nov. 9, 1918, y. 107:1787. Coffee Exchange resumes trading in futures. Dec. 28, 1918, v. 107 : 2427. Coffee regulations. Dec. 28, 1918, v. 107 : 2428. EGGS AND DAIRY PRODUCTS. Exchanges agree to abolish speculation in butter and eggs. Nov. 17, 1917, v. 105 : 1948. Wholesale prices for butter for New York and Chicago fixed by Food Admin- istration. Feb. 2, 1918, v. 106 : 446. Regulations to prevent speculation in butter. June 22. 1918, v. 106 : 2610. Margin of profit established on cheese. June 22, 1918, v. 106 : 2611. Regulations governing butter. Aug. 3, 1918, v. 107. 460. Cheese put under regulation. Aug. 10. 1918, v. 107 : 559. GRAINS. Exchanges fix maximum prices for wheat futures. May 19, 1917, v. 104 : 1972. Corn maximum fixed by Chicago Board of Trade. June 9, 1917, v. 104 : 2302. Government control of wheat trade planned. June 30, 1917, v. 104 : 2604. Chicago Board of Trade stops trading in July corn. July 7, 1917, v. 105 : 25. Chicago Board of Trade takes further steps to control grain speculation. July 14, 1917, v. 105 : 131. Wheat prices of various countries. July 14, 1917 ; v. 105 : 132. GOVERNMENT REGULATIONS RELATING TO PRICES. 827 Chicago Board of Trade empowered to stop trading in grain futures and to fix prices. July 21, 1917, v. 105 : 236. Chicago Board of Trade stops trading in September corn. Aug. 4, 1917, v. 105 : 456. Chicago Board of Trade to suspend future trading iu wheat. Aug. 18, 1917, v. 105 : 669. Price for 1917 wheat fixed. Sept. 1, 1917, v. 105 : 864-66. Future trading in wheat ends in Chicago. Sept. 1, 1917, v. 105 : 867. Government agency assumes control of wheat markets. Sept. 8, 1917, v. 105 : 959. Chicago Board of Trade and Government officials agree to limit speculation in grain. Nov. 24, 1917, v. 105 : 2048. Chicago Board of Trade decides to retain maximum of $1.28 on corn futures. Jan. 12, 1918, v. 106 : 136. Discontinuance of January trading in corn by Chicago Board of Trade. Feb. 2, 1918, v. 106 : 446. The price of wheat What shall it be? Feb. 23, 1918, v. 106 : 746. Bill increasing minimum price of wheat to $2.50 a bushel favorably re- ported. Feb. 23, 1918, v. 106 : 770. Maximum price for oats fixed at 93 cents by Chicago Board of Trade. Mar. 2, 1918, v. 106 : 875. Gore proposal to increase minimum price of wheat. Mar. 23, 1918, v. 106 : 1189. Food Administration's new wheat restrictions. Mar. 30, 1918, v. 106 : 1296. Disagreement of congressional conferees on wheat price. Aug. 13, 1918, v. 106 : 1523. Trading in corn and oats on Chicago Board of Trade. Apr. 13, 1918, v. 106 : 1523. House rejects higher wheat price, Apr. 20, 1918, v. 106 : 1626. Move toward commandeering wheat. May 11, 1918, v. 106 : 1959. Government price regulation. Charles H. Sabiu. May 25, 1918, v. 106:2169. United States Grain Corporation seeks modification of grain regulations. June 15, 1918, v. 106 : 2705. President Wilson grants United States Grain Corporation authority to pay higher prices for wheat. June 29, 1918, v. 106 : 2705. Proposed regulation of wheat flour milling industry. July 6, 1918, v. 107 : 33. Higher wheat prices announced by the Food Administration. July 6, 1918, v. 107 : 33. The farmer and the price of wheat. July 13, 1918, v. 107 : 113. Senate and House agree on $2.40 for wheat crop. July 13, 1918, v. 107 : 136. Excess profits of millers to be returned to Government in form of flour. July 13, 1918, v. 107 : 136. Plans of Food Administration for handling 1918 rice crop. Aug. 3, 191S, v. 107 : 458. New flour milling control. Aug. 10, 1918, v. 107 : 558-9. Price for 1919 wheat fixed by the President. Sept. 7, 1918, v. 107 : 945. Maximum grain prices abolished by Chicago Board of Trade. Oct. 12, 1918, v. 107 : 1436. Movement for stabilization of corn prices. Oct. 26, 1918, v. 107 : 1620. Wheat price guaranteed to American farmers as compared with that paid by England. Dec. 7, 1918, v. 107 : 2145-6. ICE. Food Administratir-i to prevent profiteering in ice. May 4, 1918, v. 106: 1854. 828 HISTORY OF PRICES DURING THE WAR. MEAT. United States Food Administration fixes minimum price for hogs. Nov. 10, 1917, v. 105 : 1850. Investigating commission recommends minimum price for hogs, Nov. 17, 1917, v. 105 : 1946. Meat packers' profits fixed by Government. Dec. 15, 1917, v. 105 : 2325. No increase in meat prices because of temporary scarcity. Feb. 2, 1918, v. 106 : 447. Meat restrictions relaxed. Mar. 9, 1918, v. 106 : 979. Hoover's recommendations for control of meat industry. Apr. 6, 1918, v. 106 : 1418. Packers protest against Federal Trade Commission's report on profiteering. July 6, 1918, v. 107 : 31. Minimum hog prices recommended by advisory committee. Oct. 19, 1918, v. 107 : 1583. MILK. The milk situation in New York State Government not to intervene. Sept. 29, 1917, v. 105 : 1270. Federal milk commission allows increase in price for January. Jan. 5, 1918, v. 106 : 24. Federal milk commission reduces February prices for milk. Feb. 2, 1918, v. 106 : 446. June milk prices fixed by Federal milk commission. June 8, 1918, v. 106 : 2395. July prices fixed. July 6, 1918, v. 107 : 33. August and September milk prices. Aug. 3, 1918, v. 107 : 460. October milk prices Reduction proposed. Oct 12, 1918, v. 107 : 1436. November prices Dairymen's demands criticized by Mr. Hoover. Nov. 2, 1918, v. 107 : 1714. Further increase in November milk prices Protest by Mayor Hylan. Nov. 16, 1918, v. 107 : 1880. Federal control of milk discontinued. Dec. 28, 1918, v. 107 : 2428. OEANGES. Margin of profit on oranges fixed. Nov. 19, 1918, v. 107 : 1788. PRUNES AND KAISINS. Prices announced by Food Administration. June 22, 1918, v. 106 : 2611. SARDINES. Food Administration fixes price. June 15, 1918, v. 106 : 2505. SUGAR. New York Coffee and Sugar Exchange stops trading in sugar futures. Aug. 18, 1917, v. 105 : 669. Conference of representatives of New York Coffee and Sugar Exchange in Washington. Aug. 25, 1917, v. 105 : 765. Reduction agreed to by sugar producers. Sept. 1, 1917, v. 105 : 866. Sugar refiners agree to import sugar through Food Administration. Sept. 8, 1917, v. 105 : 960. President's proclamation calling for licensing of sugar industry. Sept. 22, 1917, v. 105 : 1163-64. The sugar situation. Nov. 24, 1917, v. 105 : 2049. GOVERNMENT REGULATIONS RELATING TO PRICES. 829 Basic price for Cuban sugar fixed. Dec. 8, 1917, v. 105 : 2230. Senate committee's investigation of the sugar shortage. Dec. 22, 1917, v. 105 : 2418-20. Mr. Hoover's explanation of sugar shortage. Dec. 29, 1917, v. 105 : 2500-2. Amount to be charged on $100,000,000 Cuban sugar credit. Mar. 23, 1918, v. 106: 1177. Further sale of sugar acceptances. June 8, 1918, v. 106 : 2383. Oscar S. Straus to determine sugar cost. June 22, 1918, v. 106 : 2611. New sugar restrictions. June 29, 1918, v. 106 : 2706-7. Increase in basic prices of sugar. June 29, 1918, v. 106 : 2707. New sugar restrictions effective August. Aug. 3, 1918, v. 107 : 458. Increase sought in price for Cuban sugar crop. Aug. 3, 1918, v. 107 : 459. One-huudred-million-dollar sugar syndicate disbanded. Aug. 10, 1918, v. 107: 553. Food Administration to equalize prices of old and new sugar crops. Sept. 7, 1918, v. 107: 948. Cane-sugar price fixed by Equalization Board. Sept. 14, 1918, v. 107 : 1056. Cuban-sugar contract. Oct. 26, 1918, v. 107: 1620. FUELS. Reduction in bituminous price agreed upon. June 30, 1917, v. 104 : 2603-4. Secretary Baker repudiates bituminous prices agreement. July 7, 1917, v. 105: 20. Oil for Navy Department To fix prices later. July 7, 1917, v. 105 : 21. Bituminous-coal prices fixed. Aug. 25, 1917, v. 105: 766. Anthracite-coal prices fixed. Aug. 25, 1917, v. 105 : 767. Coal committee appeals to operators and miners. Aug. 25, 1917, v. 105: 768. The endeavor to regulate the coal industry. Oct. 13, 1917, v. 105 : 1455. Maximum prices for by-product coke. Nov. 24, 1917, v. 105 : 2053. Garfield's preference order. Editorial. Jan. 19, 1918, v. 106 : 214. Benumbing effects of Fuel Administrator's order. Jan. 19, 1918, v. 106 : 221. The Fuel Administrator's powers. Jan. 26, 1918, v. 106: 327. The compensation. Discussion of fuel order. Jan. 26, 1918, v. 106 : 328. Bill authorizing President to fix oil prices. Mar. 30, 1918, v. 106 : 1300. Gasoline and fuel prices announced. June 1, 1918, v. 106 : 2295. M. L. Requa warns hoarding oil producers that Government will not advance price. June 1, 1918, v. 106 : 2295. National petroleum war service committee asked to cooperate in stabilizing crude oil prices. June 29, 1918, v. 106 : 2710. Criticism of Fuel Administration. Editorial. July 13, 1918, v. 107: 104. Recommendations for stabilizing prices of crude oil. July 20, 1918, v. 107: 241. A. C. Bedford on what has been accomplished by the oil industry without Government regulation Stabilizing of prices. July 27, 1918, v. 107 : 356-7. National petroleum committee plans to stabilize price and maintain output. Aug. 17, 1918, v. 107 : 655. Fuel Administration's announcement concerning stabilization of oil prices. Aug. 31, 1918, v. 107 : 855-6. GLYCERIN. Dynamite glycerin prices. Aug. 24, 1918, v. 107 : 761. HIDES, SKINS, AND LEATHER. Tanners' council approves leather-import restrictions and fixing of prices. Apr. 27, 1918, v. 106 : 1747. Maximum prices on hides. May 4, 1918, v. 106: 1853. 830 HISTORY OP PRICES DURING THE WAR. Tanners agree to leave price fixing to Government. May 4, 1918, v. 106 : 1853. War Industries Board announces prices on pickled sheep pelts. June 15, 1918, v. 106 : 2506. Prices announced for black harness leather. June 29, 1918, v. 106: 2708. New hide prices announced. July 27, 1918, v. 107: 354. Sole and belting leather prices. Aug. 24, 1918, v. 107 : 757. IRON AND STEEL. Steel men confirm reduced prices to United States Government. Apr. 28. 1917, v. 104: 1654. The Government and steel prices. June 23, 1917, v. 104 : 2505. Steel interests agree to Government price. July 14, 1917, v. 105 : 133. Steel prices approved by President Wilson. Sept. 29, 1917, v. 105: 1263-64. Steel manufacturers asked to give pledges that Government work receive priority. May 4, 1918, v. 106 : 1854. Changes in steel differentials. Aug. 10, 1918, v. 107 : 564. Iron and steel prices in effect until Dec. 31. Sept. 28, 1918, v. 107 : 1252. New prices and extras in iron bars. Oct. 19, 1918, v. 107 : 1539. Steel committee advises continuance of Government supervision of indus- try. Nov. 16, 1918, v. 107 : 1885. Steel control and price fixing to end Jan. 1. Judge Gary's views. Dec. 7, 1918, v. 107 : 2240. LEAD. Government gets supply of lead. Aug. 11, 1917, v. 105 : 566. Lead price fixing unnecessary. Dec. 22, 1917, v. 105 : 2412. Price at which Government's lead products requirements are to be met. Apr. 13, 1918, v. 106 : 1525. LIME. Lime and acetone taken by Government. Dec. 22, 1917, v. 105 : 2412, LUMBEE. Spruce lumber prices to be paid by the Government. Apr. 27, 1918, v. 106 : 1747. Lumber prices agreed upon. June 15, 1918, v. 106 : 2507 ; June 22, 1913, v. 106 : 2615. Prices for northwestern fir and southern pine. June 29, 1918, v. 106 : 2708-9. Prices for long and short leaf Virginia and Carolina pine lumber. July 13, 1918, v. 107 : 137. Maximum prices for southern pine lumber. July 13, 1918, v. 107 : 138. New England spruce lumber prices. Aug. 3, 1918, v. 107 : 461. Increase in basic price for hemlock. Sept. 7, 1918, v. 107 : 949. Lumber prices continued. Oct. 26, 1918, v. 107 : 1621-2. MANGANESE. Manganese ore prices announced by War Industries Board. June 1, 1918, v. 106 : 2294. Freight rates on manganese ore. Aug. 24, 1918, v. 107 : 759. NICKEL. Nickel prices agreed upon. Apr. 6, 1918, v. 106 : 1419. NITRATE. Nitrate soda purchased in Chile by United States for farmers. Jan. 12, 1918, v. 106 : 136. Plans of nitrate sales to farmers. Jan. 26, 1918, v. 106 : 352. Formation of nitrate board by Allies. Jan. 26, 1918, v. 106 : 352. GOVERNMENT REGULATIONS RELATING TO PRICES. 831 PAPER. A principle at issue in regulation of the price of newsprint paper. Feb. 24, 1917, v. 104 : 701. Proposal to Federal Trade Commission to fix paper prices. Feb. 24, 1917, v. 104 : 714. Government price fixing The newsprint paper case. Mar. 10, 1917, v. 104: 898. The Canadian newsprint paper manufacturers. Mar. 10, 1917, v. 104 : 903. Newsprint paper manufacturers indicted under Sherman anti-trust law. Apr. 28, 1917, v. 104 : 1667. Federal Trade Commission and newsprint paper price. Apr. 28, 1917, v. 104 : 1668-70. Senate asks Trade Commission to adopt strictures against newsprint manu- facturers. July 7, 1917, v. 105 : 23-4. The Government's attempt to fix the price of newsprint paper. July 14, 1917, v. 105 : 114. Price of paper to Government fixed at 2J cents per pound. Sept. 8, 1917, v. 105 : 959-60. Trade Commission opens to publishers newsprint paper records. Sept. 29, 1917, v. 105 : 1268. Trade Commission on paper prices Renews recommendation for pooling of product. Sept. 29, 1917, v. 105 : 1268. The newsprint paper problem again. Oct. 20, 1917, v. 105 : 1563. Canadian Government not satisfied with experiment of fixing prices on pa- per. Nov. 3, 1917, v. 105 : 1746. Seeking Government control of the output of newsprint paper. Jan. 19, 1918, v. 106 : 222. Newsprint paper prices fixed by Federal Trade Commission. June 22, 1918, v. 106 : 2613. PLATINUM. Platinum commandeered by the Government. Mar. 2, 1918, v. 106 : 880. The commandeering of platinum by the Government. Mar. 9, 1918, v. 106:982. Platinum metals commandeered by the Government. May 18, 1918, v. 106 : 2074. RUBBER. Crude rubber prices fixed by War Trade Board. May 4, 1918, v. 106 : 1853. New rubber prices announced. May 18, 1918, v. 106 : 2073. SHOES. Maximum prices on shoes. Oct. 12, 1918, v. 107 : 1437. Abandonment of schedule. Dec. 28, 1918, v. 107 : 2433. SILVER. Control of silver by Government. Nov. 17, 1917, v. 105 : 1938. Bill providing for melting of silver dollars and fixing price at $1 an ounce. Apr. 13, 1918, v. 106 : 1513. Treasury Department's announcement concerning price iixed for silver. Aug. 24, 1918, v. 107 : 744. SULPHUR. Sulphur control taken over by War Industries Board, July 13, 191.8, v. 107 : 140. 832 HISTOKY OF PRICES DURING THE WAR. WOOL. Boston wool supply to be held for the United States. Apr. 7, 1917, v. 104: 1341. New regulations governing wool imports. Jan. 12, 1918, v. 106 : 138. Woolen mills called upon to hold looms for Government Trading in Bos- ton stops. Apr. 13, 1918, v. 106 : 1528. Control of Canadian wool exports. May 18, 1918, v. 106 : 2073. Other developments in control of wool by Government. May 25, 1918, v. 106 : 2180. Likelihood of wool shortage refuted by secretary of National Wool Growers' Association. May 26, 1918, v. 106:2181. Regulation for handling wool clip. June 8, 1918, v. 106 : 2396. Government wool auctions. Dec. 28, 1918, v. 107 : 2431. WOOL GKEASE. Prices on wool grease. Nov. 9, 1918, v. 107 : 1788. ZINC. Zinc prices approved by the President Feb. 16, 1918, v. 106 : 663. Zinc prices continued. May 25, 1918, v. 106 : 2182 ; June 1, 1918, v. 106 : 2295 ; Aug. 31, 1918, v. 107 : 858. ECONOMIC WORLD. National Government and regulation. Mar. 10, 1917, N. S.-v. 13: 327-328. Economic difficulties in the way of successful government price fixing, Jaly 21, 1917, N. S. v. 14 : 78-79. Government's problem of fixing prices. Aug. 11, 1917, N. S. v. 14 : 183-184. Concatenation of problems produced by governmental price fixing. Sept. 22, 1917, N. S. v. 14:399-400. National Fuel Administrator Garfield on the price-fixing policy of the Government. Sept. 29, 1917, N. S. v. 14 : 436-438. Putnam, G. E. Government control of food prices as the economist views it. 1917, N. S. v. 14 : 508-511. Gary, E. H. American steel industry, the Government and the war. 1917, N. S. v. 14 : 616-618. Gay, Edwin F. War prices and the problems involved in their control. Dec. 28, 1917, N. S. v. 14 : 906. Anderson, B. M., Prospect of success of Government price fixing in the United States. Jan. 5, 1918, N. S. v. 15 : 11. Creation of the price-fixing committee under the War Industries Board. Mar. 23, 1918, N. S. v. 15 : 409. Administration plans for an extension of price fixing. Apr. 20, 1918, N. S. v. 15 : 507-508 ; 589-590. Both governmental and cooperative price fixing to cease on Jan. 1. Jan. 4, 1919, N. S. v. 17 : 13. FORUM. Wheat farmers' dilemma. Sept., 1918, v. 60 : 257-266. JOURNAL OF POLITICAL ECONOMY. Hitchcock, Curtice M. The War Industries Board, its development, organi- zation, and functions. June, 1918, v. 26 : 545-567. Notz, Wm. World's coal situation during the war. June, 1918, v. 26:567- 612 ; July, 1918, v. 26 : 673-705. Hamilton, Walton H. The requisites of a national food policy. June, 1918, v. 26 : 612-638. GOVERNMENT REGULATIONS RELATING TO PRICES. 833 POLITICAL SCIENCE QUARTERLY. Haney, L. H. Price fixing in the United States during the war. Mar., 1918, v. 34 : 104-126. PUBLIC. Jones, F. K. Precedence of copper in price fixing. Aug. 10, 1918, v. 21: 1013-1016. Indictment of price fixing. 1918, v. 21 : 846-848. QUARTERLY JOURNAL OF ECONOMICS. Blakey, F. G. Sugar prices and distribution under food control. Aug., 1918, v. 32 : 567-596. Berglund, A. Price fixing in the iron and steel industry. Aug., 1918, v. 32 : 597-620. Eldred, W. Wheat and flour trade under Food Administration control. Nov., 1918, v. 33:1-70. Morse, L. K. Price fixing of copper. Nov., 1918, v. 33 : 71-106. Taussig, F. W. Price fixing as seen by a price fixer. Feb., 1919, v. 33 : 205-241. SCRIBNER'S. Harger, C. M. Farmer and $3 wheat. 1918, v. 64 : 80-86. Payne, John L. Regulation of food prices. Nov., 1918, v. 64 : 581-586. UNPOPULAR REVIEW. Means, D. M. Price fixing by Government. Apr., 1918, v. 9 : 312-327 WORLD'S WORK. Price fixing and production. Nov., 1917, v. 35 : 12-13. PUBLICATIONS OF A GENERAL NATURE CONTAINING CONTRIBUTIONS TO THE BIBLIOGRAPHY OF GOVERNMENT PRICE REGULATION. Annalist. Congressional Record. Journal of Commerce. Literary Digest Monthly Review, Department of Labor. New York Times. Official Bulletin. War Trade Board Journal. TRADE JOURNALS WHOSE COLUMNS THROUGH 1917 AND 1918 PROVIDE PERTINENT REFERENCES TO GOVERNMENT PRICE CONTROL. American Fertilizer. American Sheep Breeder. American Wool and Cotton Reporter. Chemical and Metallurgical Engineering. Coal Age. Engineering and Mining Journal. India Rubber World. Iron Age. Iron Trade Review. National Wool Grower. Oil, Paint, and Drug Reporter. Textile World Journal. 125547 20 53 PRICE BULLETINS ISSUED BY THE WAR INDUSTRIES BOARD. 1. Summary. 2. International price comparisons. 3. Government control over prices. 4. Prices of foods. 5. Prices of clothing. 6. Prices o building materials. 7. Prices of chemicals. 8. 9. 10. 11. 12. 14. 1.5. 16. 17. 18. 19. 21. 22. 23. FOODS. Prices of feed and forage. Prices of wheat and wheat products. Prices of corn and corn products. Prices of oats, rice, buckwheat, and their products. Prices of barley, hops, rye, and their products. Prices of sugar and related products. Prices of vegetables and truck. Prices of edible vegetable oils. Prices of fruits, nuts, and wine. Prices of spices and condiments. Prices of tea, coffee, and cocoa. Prices of tobacco and tobacco prod- ucts. Prices of live stock, meats, and fats. Prices of poultry and dairy prod- ucts. Prices of fish and oysters. CLOTHING. prod- Prices of cotton and cotton nets. 24. Prices of wool and wool products. 25. Prices of silk and silk products. 26. Prices of hides and skins and their products. 27. Prices of hatters' fur arid fur felt hats. V* - \ es of hair, bristles, and feathers. w tees of buttons. RUBBER, PAPER, FTBERS. 30. Prices of, rubber and rubber prod- ucts. 81. Prices of paper. 32. Prices of fibers and tiber products. METALS 33. Prices of iron, steel, and their prod- ucts. 34. Prices of ferroalloys, nonferrons and rare metals. FUELS. 35. Prices of coal and coke. 36. Prices of petroleum and its prod- ucts. 37. Prices of matches. BUILDING MATERIALS. 38. Prices of clay products. 39. Prices of sand and gravel. 40. Prices of quarry products. 41. Prices of cement. 42. Prices of glass. 43. Prices of lumber. 44. Prices of j mints and varnishes. CHEMICALS. 45. Prices of mineral acids. 46. Prices of heavy chemicals. 47. Prices of miscellaneous inorganic chemicals. 48. Prices of fertilizers. 49. Prices of soaps and glycerin. 50. Prices of essential oils, flavoring and perfumery materials. 51. Prices of wood-distillation prod- ucts, and naval stores. 52. Prices of natural dyestuffs and tanning chemicals. 53. Prices of coal-tar crudes, intermedi- ates, and dyes. 54. Prices of drugs and pharmaceu- ticals. 55. Prices of proprietary preparations. 56. Prices of explosives. 57. Prices of miscellaneous organic chemicals. Copies of the above bulletins may be obtained at a nominal price from the Superintendent of Documents, Government Printing Office, Washington, D. C. 834 14 DAY USE RETURN TO DESK FROM WHICH BORROWED LOAN DEPT. This book is due on the last date stamped below, or on the date to which renewed. Renewed books are subject to immediate recall. : 'Jlla V 'S 7 ,..JU L i 3 B , -ec'dcirc. RPR1919 83 :-, ' / IM6LBH RuC'D LD JUN171961 ? ;irt l,.i . i'QJl/fOfp* 1 mzc a CD SLP 5 tjbl LD 21-100m-6,'56 (B9311slO)476 General Library University of California Berkeley 416327 UNIVERSITY OF CALIFORNIA LIBRARY