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
^<f 5. The price-fixing committee 233
(1) Organization of the committee 233
(2) The basis of power to fix prices r. 235
The threats of requisitioning and commandeering 235
The war-time spirit 23T
(3) Its sphere of activity 237
Committee concerned primarily with Government pur-
chases 237
The committee fixed prices only upon request 238
Fixed producer prices 239
(4) The character of the price-fixing agreements 239
The method of making the agreements ^ 239
All prices were maximum prices 240
Fixed prices applicable alike to low and high cost
producers 240
Fixed prices applicable alike to Government, allied,
and public purchases 241
(5) The price policies of the committee 242
(6) Administering committee decisions 244
\s (7) The commodities fixed in price by the War Industries
Board and the price-fixing committee 244
Iron, steel, and their products 244
The runaway steel market in 1917 245
The disposition to control iron and steel prices 247
The policy of the President and his war officials 247
The Pomerene bill in Congress 249
The attitude of the iron and steel industry 250
Problems facing the Government in assuming
control__ 251
*-^ Should control extend to civilian purchases 251
Should control extend to allied purchases 251
L-* Flat rate or cost plus profit scale 252
^ Should higher contract prices already made be
abrogated 253
Should the Government recognize the labor,
fuel, and transportation problems 253
Should account be taken of the middlemen 253
Raw-material prices fixed September 24, 1917 254
Semi-finished products prices fixed October 11,
1917__ 264
8 CONTENTS.
PART II. The administration of price controls during the war Contd.
5. The price-fixing committee Continued.
(7) The commodities fixed in price by the War Industries
Board and the price-fixing committee Continued.
Iron, steel, "and their products Continued. * Page.
Finished product prices fixed November 5, 1917 266
The determination of differentials upon basic
prices : 267
Modifications of original basic prices fixed 269
Price control and the relative rise, of prices and
production 270
Summary 271
Copper 272
Copper production of more concern than high
prices 272
The early allied purchases 274
The allied purchase of 77,000,000 pounds 275
The early Government purchases 275
The Government purchase of 45,510,000 pounds in
March, 1917 276
The Government purchase of 60,000,000 pounds in
June, 1917 276
Electrolytic copper fixed on September 21, 1917 278
The determination of the Government to fix
the price at 22 cents.. 278
The copper interests ask for a price of 25
cents 278
The price fixed at 23i cents 281
Interpretation of the fixed-price policies 281
Appeal of small high-cost producers for an in-
crease 283
Electrolytic copper increased to 26 cents on July
2, 1918 283
Summary 284
Aluminum 284
Lead 286
Zinc 288
Nickel . 289
Quicksilver 291
Tin 291
Platinum 293
Cotton textiles 293
The early need for regulation 293
The price-fixing committee and the cotton industry. 297
The fixing of cotton-textile prices 298
Cotton-yarn prices 301
The proposed price revision 301
Summary 303
Cotton linters 304
Government control of the linter crop 306
The cotton-linter pool 306
The mattress-linter pool 308
CONTENTS. 9
PART II. The administration of price controls during the war Contd.
5. The price-fixing committee Continued.
(7) The commodities fixed in price by the War Industries
Board and the price-fixing committee Continued. page.
Wool 309
The approach to regulation 310
The adoption of a regulative policy 313
The effects of wool control 316
Hides, skins, and leather 316
Cattle hides 318
Sheepskins 320
Tanned leather . 321'
Summary 323
Manila fiber and hemp 324
Burlap 325
Lumber 326
Southern yellow pine 326
Other soft woods 329
Hardwoods 330
Building materials 331
Portland cement 334
Common brick . 336
Hollow building tile 338
Gypsum wall board and plaster board 338
Sand, gravel and crushed stone 338
Chemicals __ '- 338
Nitrate of soda 338
Heavy acids 341
Sulphuric acid 341
Nitric acid 343
Conclusion 344
Sulphur and pyrites 344
Wood chemicals 345
Acetic acid 346
Methyl acetate 347
Formaldehyde 347
Toluol ,. 348
Alkalis 349
The War Trade Board 350
(1) The creation of the War Trade Board 350
(2) All exports and imports brought under license control 351
The control over exports 351
The conservation list 352
The control over imports 352
The restricted list 352
(3) The exercise of price control by uses of the licensing
power 353
Rubber 357
The British embargo of 1914 357
The licensing of rubber imports 358:
The restriction of rubber imports and price fixing. 358
The results of the embargo 359
Silk__ 360
10 CONTP:XTS.
PART II. The administration of price controls during the war Contd. page.
7. The War Department 3G1
(1) The Army represented on the price-fixing committee 3G3
(2) The price-fixing section 364
(3) Commandeering and requisitioning 364
(4) The Board of Appraisers 365
8. The Navy Department : 367
(1) Commodities purchased by the Navy 367
(2) Representation of the Navy upon the price-fixing com-
mittee 371
(3) Commandeering 371
(4) The supply of raw materials to contractors by the Navy__ 372
(5) Determination of " fair and just" prices 373
^ 9. The Federal Trade Commission 374
10. The Department of Agriculture 376
(1) The control of farm equipment 376
(2) Fertilizers 379
vj 11. The basis for determining a fixed price__ 380
(1) The objects of the price fixers 380
(2) The methods of control 381
(3) The data used in fixing a price 382
(4) The problem of the low-cost and the high-cost producers- 383
(5) Prices fixed above the "bulk line" of production____ 399
(6) The interpretation of a " reasonable profit " 409
, 12. The lifting of Government control over prices 411
X(l) The effect of lifting control upon prices 411
(2) The purpose of the Industrial Board 413
PART III. Statistical devices for measuring the effects of price control 415
Introduction 415
Table 1. Gradual extension of price control 416
Table 2. The Price Section weighted index number separated into
controlled and uncontrolled prices 418
(1) Tables of index numbers of prices of controlled and
uncontrolled commodities 419
(2) The series of the Price Section index number con-
sidered uncontrolled 459
(3) The series of the Price Section index number con-
sidered controlled ; 477
Table 3. Chain indexes of controlled and uncontrolled prices 491
Table 4. Relative points below which 50 basic commodities were
pegged 504
A summary of actual and relative prices below which
basic prices were fixed 514
Relative prices of 50 basic commodities 516
Table 5. A comparison of controlled raw material prices with the
prices of their uncontrolled manufactured products 532
Table 6. A comparison of the prices of controlled manufactured goods
with the prices of their uncontrolled raw materials 540
Table 7. A comparison of controlled raw material prices with the
prices of their controlled manufactured products 542
Table 8. A comparison of controlled prices at wholesale and corre-
sponding controlled prices at retail 550
Table 9.- A comparison of war prices in the United States, England,
France, and Canada 553
CONTENTS. 11
BOOK II.
GOVERNMENT REGULATIONS RELATING TO PRICES.
Page.
1. Introduction 567
2. Foods 568
General regulations 576
Special regulations 578
Wheat millers and manufacturers of mixed flours 578
Operators of all places for the storage of, and dealers in, wheat,
corn, oats, rye, and barley 585
Rice 588
Sugar ' 588
Canners of peas, tomatoes, corn, dried beans, salmon, sardines, and
tuna; manufacturers of tomato catsup, tomato soup, and other
tomato products; condensed, evaporated, or powdered milk 591
Packers of dried peaches, dried apples, dried prunes, or dried raisins. 595
Dealers and brokers in, and importers of, certain vegetable oils
and their raw materials 597
Manufacturers of oleomargarine and other butter substitutes 599
Wholesalers, jobbers, importers, and retailers of licensed nonperish-
able food commodities 599
Brokers and auctioneers of licensed nonperishable food commodities. 610
Dealers in sugars and sirups 611
Distributors of fresh fruits and vegetables 613
Distributors of fresh fish and frozen fish 614
Distributors of poultry ' 616
Distributors of eggs 619
Manufacturers and distributors of butter 625
Manufacturers and distributors of cheese 629
Cold storage warehousemen 634
Distributors of feeding stuffs 635
3. Fuels 640
Anthracite coal 642
Bituminous coal 643
Coke 657
Charcoal 661
Jobbers' margins and distributors' commissions 661
Retail prices 662
N Petroleum 663
4. Metals and metal products 665
Aluminum 665
Copper 669
Iron and steel 670
Lead 673
Manganese ore 673
Nickel 675
Platinum metals 675
Quicksilver 675
Silver 676
Zinc '. 678
5. Textiles and fibers 680
Binder twine 680
Burlap 680
Cotton goods 681
12 CONTENTS.
5. Textiles and fibers Continued. Page.
Cotton linters 703
Rates for compressing cotton 704
Kapok 704
Manila fiber 705
Rags 706
Silk 708
Wool 709
6. Hides, skins, and leather 729
Hides and skins 732
Black harness leather 749
Sole and belting leather 750
7. Lumber 752
General regulations 752
Birch logs 755
Black walnut 755
Cypress and tupelo 756
Douglas fir 759
Mahogany lumber 768
New England spruce 768
North Carolina pine 773
Pennsylvania hemlock 778
Southern or yellow pine 781
Western spruce 790
Treenails 791
8. Building materials 792
Brick 792
Gypsum wall board and plaster board 793
Hollow building tile 793
Millwork 795
Portland cement 800
Sand, gravel, and crushed stone 801
La_Chemicals 803
Acids 804
Alkalis 805
Bleaching powder 805
Carbon tetrachloride 805
Caustic soda 805
Chlorine, liquid 805
Soda ash 805
Ammonia 805
Ammonium sulphate 808
Arsenic 808
Castor beans and castor oil 808
Glycerin 810
Nitrate of soda 810
Quebracho 810
Smokeless cannon powder 811
Sulphur 811
Toluol 811
Wood chemicals 812
Wool grease 812
10. Rubber 812
11. Paper, news-print 815
APPENDIX.
Page.
OO-f
Bibliography '"
13
LIST OF CHAETS.
Page.
1. Weighted index numbers of prices of " all commodities," by months,
January, 1913, to the time that control began. Average price July,
1913-June, 1914=100 25
2. Weighted index numbers of prices of food group, by months, Janu-
ary, 1913, to the time that control began 28
3. Weighted index numbers of prices of fuels group, by months, January,
1913, to the time that control began 28
4. Weighted index numbers of prices of metals group, by months, Janu-
ary, 1913, to the time that control began 28
5. Allied and neutral sea*-going tonnage lost and built, by months, Jan-
uary, 1917-September, 1918 34
6. Relative prices of wheat, No. 2 red winter, cash at Chicago, by
months, January, 1913-December, 1918 75
7. Relative prices of flour, wheat, standard patents, at Minneapolis, by
months, January, 1913-DeDcember, 1918 75
8. Relative prices of bread, loaf, bakery to retail grocer, by months,
January, 1913-December, 1918 75
9. Relative prices of sugar in the United States, England, and France,
by months, January, 1913-December, 1918 86
10. Relative prices of cotton seed; lard substitute; and cottonseed oil,
crude, by months, January, 1913-December, 1918 114
11. Relative prices of canned sardines, oil, keyless (100 i-inch case) ;
and canned salmon, pink, tall, 1 dozen No. 1 cans, by months,
January, 1913-December, 1918 118
12. Relative prices of rice, Japan head ; rice, Honduras head ; and puffed
rice, Quaker; by months, January, 1913-December, 1918 120
1.3. Weighted index numbers of prices of corn and corn products; and
" all commodities," by months January. 1913-December, 1918 125
14. Weighted index numbers of prices of oats, rice, buckwheat, and
their products ; and " all commodities," by months, January, 1913-
December, 1918 , 125
15. Weighted index numbers of prices of hops, rye, barley, and their
products ; and " all commodities," by months, January, 1913-
December, 1918 125
16. Relative prices of petroleum, 5 fields ; fuel oil, 5 cities ; and gasoline,
5 cities, by months, January, 1913-December, 1918
17. Weighted index numbers of iron, steel, and their products ; and
" all commodities," by months, January, 1913-December, 1918 247
18. Relative prices of copper, electrolytic, at New York, by months,
January, 1913-December, 1918 274
19. Relative prices of short staple cotton, upland middling; short staple
cotton yarns, 5 series ; and short staple cotton manufacture, 19
series; by months, January, 1913-December, 1918 304
20. Relative prices of cotton linters, grade D, cut 130-175 pounds per
ton, by months, January, 1913-December, 1918 309
14
CONTENTS. 15
Page.
21. Relative prices of raw wool, domestic and imported, by months,
January, 1913-December, 1918 311
22. Weighted index numbers of prices of hides, skins, leather, and
leather manufactures ; and " all commodities," by months, Janu-
ary, 1913-December, 1918 317
23. Weighted index numbers of prices of lumber ; and " all commodi-
ties," by months, January, 1913-December, 1918 32G
24. Weighted index numbers of prices of fertilizers; and "all com-
modities," by months, January, 1913-December, 1918 378
25. Costs at which different portions of the output of beehive coke
were produced in September, 1918 400
26. Costs at which different portions of the output of pig iron, basic,
were produced in September, 1918 . 401
27. Costs at which different portions of the output of Douglas fir were
produced in March, April, and October, 1918 402
28. Costs at which different portions of the output of beet sugar were
produced in 1917-18 1 : -~ 402
29. Average adjusted costs, bulk lines, and prices originally fixed for
all bituminous coal districts charted during August and Septem-
ber, 1917 I 403
30. The average reported costs and adjusted costs of the production of
anthracite coal in the Pennsylvania anthracite region during the
period December, 1917-May, 1918 403
31. The Bureau of Labor Statistics index number of " all commodities,"
separated into controlled and uncontrolled, by months, August,
1917-May, 1919. Average price for 1913=100 411
32. Weighted index numbers of prices of "all commodities" (1,366
series) controlled and uncontrolled during the war, by months.
January, 1913-December, 1918 421
33. Weighted index numbers of prices of food group (268 series), con-
trolled and uncontrolled during the war, by months, January,
1913-December, 1918 421
34. Weighted index numbers of prices of clothing group (409 series), con-
trolled and uncontrolled during the war, by months, January, 1913-
December, 1918 421
35. Weighted index numbers of prices of rubber, paper, and fiber group
(119 series), controlled and uncontrolled during the war, by
months, January, 1913-December, 1918 422
36. Weighted index numbers of prices of metals group (116 series), con-
trolled and uncontrolled during the war, by months, January,
1913-December, 1918 422
37. Weighted index numbers of prices of fuels group (63 series), con-
trolled and uncontrolled during the war, by months, January,
1913-December, 1918 422
38. Weighted index numbers of prices of building materials group (149
series), controlled and uncontrolled during the war, by months,
January, 1913-December, 1918 423
39. Weighted index numbers of prices of chemicals group (243 series),
controlled and uncontrolled during the war, by months, January,
1913-December, 1918 423
40. Weighted index numbers of prices of cotton and cotton products
class (81 series), controlled and uncontrolled during the war, by
months, January, 1913-December, 1918 423
16 CONTENTS.
Page.
41. Weighted index numbers of prices of wool and wool products class
(66 series), controlled and uncontrolled during the war, by
months, January, 1913-December, 1918 424
42. Weighted index numbers of prices of hides, skins, leather, and leather
manufactures class (156 series), controlled and uncontrolled during
the war by months, January, 1913-December, 1918 424
43. Weighted index numbers of prices of rubber and rubber products
class (34 series), controlled and uncontrolled during the war, by
months, January, 1913-December, 1918 424
44. Weighted index numbers of prices of iron, steel, and their products
class (88 series), controlled and uncontrolled during the war, by
months, January, 1913-December, 1918 425
45. Weighted index numbers of prices of petroleum and petroleum prod-
ucts class (27 series), controlled and uncontrolled during the war,
by months, January, 1913-December, 1918 425
46. Weighted index numbers of prices of lumber class (62 series), con-
trolled and uncontrolled during the war, by months, January,
1913-December, 1918 __________ 425
47. Weighted chain index for prices of "-all commodities" (1,366 series),
controlled and uncontrolled during the war, by months, April,
1917-December, 1918 492
48. Weighted chain index for prices of food group (268 series), con-
trolled and uncontrolled during the war, by months, April, 1917-
December, 1918 495
49. Weighted chain index for prices of clothing group (409 series,) con-
trolled and uncontrolled during the war, by months, April, 1917-
December, 1918 495
50. Weighted chain index for prices of metals group (116 series), con-
trolled and uncontrolled during the war, by months, April, 1917-
December, 1918 496
51. Weighted chain index for prices for fuels group (63 series), con-
trolled and uncontrolled during the war, by months, April, 1917-
December, 1918 496
5 Weighted chain index for prices of building materials group (149
series), controlled and uncontrolled during the war, by months,
April, 1917-December, 1918 497
53. Weighted chain index for prices of wheat and wheat products class
(12 series), controlled and uncontrolled during the war, by
months, April, 1917-December, 1918 497
54. Weighted chain index for prices of cotton and cotton products class
(81 series), controlled and uncontrolled during the war, by
months, April, 1917-December, 1918 498
55. Weighted chain index for prices of wool and woolen products class
(66 series), controlled and uncontrolled during the war, by
months, April, 1917-December, 1918 498
56. Weighted chain index for prices of iron, steel, and their products
class (88 series), controlled and uncontrolled during the war, by
months, April, 1917-December, 1918 499
57. Weighted chain index for prices of coal and coke class (27 series),
controlled and uncontrolled during the war, by months, April,
1917-December, 1918 499
58. Relative prices of sugar, raw, 96 centrifugal, net cash, by months,
January, 1913-December, 1918 507
CONTENTS. 17
Page.
59. Relative prices of wheat No. 1 Northern spring, cash, by months,
January, 1913-December, 1918 507
60. Relative prices of cattle hides, packers' heavy native steers, by
months, January, 1913-December, 1918 507
61. Relative prices of cotton weaving yarns carded, white, northern,
mule spun, 22/1 cones, by months, January, 1913-December, 1918 508
62. Relative prices of print cloth, 27-inch, 64 by 60, 7.60 yards, by
months, January, 1913-December, 1918 508
G3. Relative prices of wool, Ohio, Pennsylvania, and West Virginia, un-
washed, fine delaine, by months, January, 1913-December, 1918 508
64. Relative prices of rubber, crude plantation, Hevea, first latex crgpe,
by months, January, 1913-December, 1918 509
65. Relative prices of copper, electrolytic, at New York, by months, Janu-
ary, 1913-December, 1918 509
66. Relative prices of iron ore, Mesabi, nonbessemer, 51$ per cent, by
months, January, 1913-December, 1918 509
67. Relative prices of pig iron, basic, by months, January, 1913-Decem-
ber, 1918 I 510
68. Relative prices of steel plates, tank, by months, January, 1913-
December, 1918 510
69. Relative prices of anthracite coal, chestnut, by months, January,
1913-December, 1918 511
70. Relative prices of bituminous coal, by months, January, 1913-Decem-
ber, 1918 511
71. Relative prices of Connellsville coke, by months, January, 1913-
December, 1918 512
72. Relative prices of crude petroleum, mid-continent, by months, Janu-
ary, 1913-December, 1918 512
73. Relative prices of Douglas fir, by months, January, 1913-Decem-
ber, 1918 513
74. Relative prices of yellow pine, Southern, common boards, No. 1,
S-2-S, 1 by 10 inches, by months, January, 1913-December, 1918__ 513
75. Relative prices of sulphuric acid, 60, by months, January, 1913-
December, 1918 513
76. Relative prices of copper, electrolytic, and copper wire, by months,
January, 1913-December, 1918 533
77. Relative prices of pig iron, chains, and saws, by months, January,
1913-December, 1918 533
78. Relative prices of lead and lead pipe, by months, January, 1913-
December, 1918 533
79. Relative prices of wool, woolen yarns, and woolen suitings, by months,
January, 1913-December, 1918 534
80. Relative prices of crude rubber and rubber tires, by months, Janu-
ary, 1913-December, 1918 ,_ 534
81. Relative prices of calf-skin leather, and shoes, by months, January,
1913-December, 1918 534
82. Relative prices of cotton yarn and raw cotton, by months, January,
1913-December, 1918 543
83. Relative prices of wheat, wheat flour, and bread, by months, Janu-
ary, 1913-December, 1918 543
84. Relative prices of iron ore, pig iron, and iron pipe, by months, Janu-
ary, 1913-December, 1918 544
125547 20 2
18 CONTENTS.
Page.
85. Relative prices of coal and coke, by months, January, 1913-Decem-
ber, 1918 544
86. Relative prices of cattle hides and sole leather, by months, January,
1913-December, 1918 545
87. Relative prices of sugar, raw and refined, by months, January,
1913-December, 1918 545
88. Medians of relative prices of 150 commodities in the United States
and England, by months, January, 1913-December, 1918 557
89. Medians of relative prices of 34 food commodities in the United
States and England, by months, January, 1913-December, 1918 557
90. Medians of relative prices of 29 clothing commodities in the United
States and England, by months, January, 1913-December, 1918 558
91. Medians of relative prices of 9 iron and steel commodities in the
United States and England, by months, January, 1913-December,
1918 558
92. Medians of relative prices of 55 chemical commodities in the United
States and England, by months, January, 1913-December, 1918 559
93. Medians of relative prices of 44 commodities in the United States and
France, by months, January, 1913-December, 1918 559
94. Index numbers of wholesale prices in the United States and Canada,
by months, January, 1913-December, 1918 559
INTRODUCTION. ,
The uppermost aims of this inquiry have been to present an
analysis and a documentary record of all price regulation exercised
by the Government during the World War. The lawer task, which
had to be performed as a basis for the former, was made peculiarly
difficult by the prompt departure of commodity chiefs from Wash-
ington after the armistice, and by the chaos of abandoned war files.
This monograph covers all price regulations of which record was
found, but other informal controls were agreed upon by word of
mouth of which no written record remains.
All data of descriptive or analytical character appear in Book I,
and all regulations pure and simple in Book II. Book I is separated
into three parts to show the problems that led the Government into
price control, the administration of price control during the war,
and various statistical devices for measuring the effects of control.
A full analysis of the methods, powers, and policies of each price-
control board is given as general background to the specific com-
modity controls. The individual controls are then each discussed
in detail under the 1 board having jurisdiction over them at the time
of the armistice. Book II is separated into ten parts, and is a docu-
mentary record strictly of all known Government regulations relat-
ing to food; fuel; metal and metal product; textile and fiber; hide,
skin, and leather; lumber; building material; chemical; rubber and
paper prices.
This study represents a cooperative effort of the statistical di-
visions of the War Trade Board and the War Industries Board,
under Edwin F. Gay. It is Bulletin No. 3 of a series of 57 bulletins
which make up a " History of prices during the war," edited by
Wesley C. Mitchell. The others of these bulletins, which are listed
on the last page, are records of monthly price fluctuations from
January, 1913, through December, 1918. They afford indispensable
bases for further inquiries into the price-control problem. Every
precaution has been taken here to enhance their value to that end, by
keeping all charts in scale with theirs and by following similar forms.
Many more persons have given aid, directly or indirectly, in
gathering materials than can be named. But especial indebtedness
for data on wheat, flour, and bread is owing to Lloyd W. Maxwell ;
19
20 INTBODUCTION-.
on building materials to Homer Hoyt; on hides, skins, and leather,
to E. A. James; and on wool to Katherine Snodgrass. The manu-
script pertaining to the Food Administration was read in full, and
approved as to the accuracy of facts, by Raymond Pearl and W. C.
Mullendore ; the Fuel Administration, by C. E. Lesher ; the War In-
dustries Board, by Leo Wolman; and the War Trade Board, by
Henry F. Waldradt. Particular sections were checked in addition
by persons having technical knowledge of their contents. All manu-
script and proof has been read and materially strengthened by Leo
Wolman and Wesley C. Mitchell.
The staff, whs assisted immediately in the preparation and colla-
tion of materials, was Mr. Isadore Lubin, Miss Stella Stewart, Miss
Susie Anderson, and Miss Elsie Ray. Mr. Lubin is responsible for
the sections on sugar, live stock and meats, poultry and dairy prod-
ucts, oleomargarine, cottonseed and cotton-seed products, canned
and dried foods, rice and rice flour, coarse grains and foodstuffs^
coffee, ammonia, ice ? arsenic, petroleum, aluminium, lead, zinc, nickel,
quicksilver, tin, platinum, cotton textiles, cotton linters, manila
fiber and hemp, burlap, chemicals, rubber, silk, and fertilizers. Miss
Stewart assisted in gathering materials and in the compilation of
regulation schedules which appear in Book II. Miss Anderson had
charge of the computations. Miss Eay attended to the clerical
work.
P. W. G.
BOOK I
GOVERNMENT CONTROL OVER PRICES
21
THE
PART I.
PROBLEMS THAT LED THE GOVERNMENT
INTO PRICE CONTROL.
i, THE RISE IN PRICES BEFORE THE GOVERNMENT
INTERFERED.
The future student of American prices will turn back to the 14
months from August, 1917, to the signing of the armistice, and mark
them as the period of our initial great experience with Government
price control. The Government laid no resolute hand upon prices
even during the Civil War, although at that time staple quotations
more than doubled. 1 Nor did the Government seek to arrest the
phenomenal rises during 1916 and 1917, provoked by European war
buying, until this country itself entered the war. The circumstances
attending this first and extraordinary experiment in the regulation
of prices possess peculiar interest.
The factors that dictated to the Government the necessity of regu-
lating prices were the high level to which prices had climbed by the
late summer of 1917 and the fear of a further rise. The precontrol
1 The Price Section of the War Industries Board in its " Comparison of Prices During
the Civil War and Present War " has made the following medians of relative prices of
commodities at wholesale. They show relatively how high Civil War and present war
prices went above their respective prewar levels, represented by 100.
All com-
modities.
Foods.
Building
materials.
Chemicals.
Cotton.
Copper,
ingot.
Civil
War.
Pres-
ent
war.
Civil
War.
Pres-
ent
war.
Civil
War.
Pres-
ent
war.
Civil
War.
Pres-
ent
war.
Civil
War.
Pres-
ent
war.
Civil
War.
Pres-
ent
war.
Number of commodities. . .
1860 and 1913:
January
92
100
100
100
100
100
96
96
97
100
100
100
111
125
137
134
135
156
169
194
200
216
190
158
175
92
100
100
100
100
100
100
100
100
100
100
102
102
114
115
119
130
142
157
169
174
178
182
187
36
36
100
100
100
100
100
100
100
105
107
105
105
102
110
113
117
127
142
162
169
193
188
199
194
19
19
15
15
-
100
100
100
100
100
100
100
100
100
100
115
126
138
187
187
156
152
175
177
196
192
197
193
2
101
101
98
99
112
117
136
197
336
253
346
515
618
668
631
773
741
695
1,410
1,101
1,096
343
430
426
2
98
95
95
106
98
101
101
53
62
76
69
94
94
92
100
135
134
152
196
209
243
250
232
1
1
117
101
97
110
99
96
89
78
87
106
132
120
152
179
177
190
197
227
212
157
157
157
170
100
100
98
99
98
94
88
91
99
96
93
100
116
125
117
125
152
161
184
194
232
189
156
170
100
100
100
100
100
100
100
102
106
112
107
116
133
143
139
145
160
177
189
200
200
196
171
200
100
100
100
100
100
100
100
100
100
100
100
100
104
109
110
117
124
137
152
152
161
172
181
100
100
100
100
100
100
100
100
117
107
109
125
130
142
142
133
153
161
189
200
222
182
153
170
100
98
89
90
81
81
77
87
113
94
98
119
132
130
130
138
161
172
198
200
209
145
121
138
April
July
October
1861 and 1914:
January
April
July
October
1862 and 1915:
January
April ...
July
October
1863 and 191 6:
January
April...
July
October
1864 and 1917:
January .
April
July
October.
1865 and 1918:
January .
April .
July
October
23
24
HISTORY OF PRICES DURING THE WAR.
rises of commodity prices at wholesale may be divided into three
periods the prewar advance from 1890 to the outbreak of the
European war, the war-time rises to April 6, 1917, and the final
upward swing of prices that was under way when the Government
interfered.
(i) THE MOVEMENT OF PRICES FROM 1890 TO THE EUROPEAN WAR.
The fluctuations in prices for the quarter century prior to the out-
break of war in Europe on July 28, 1914, bore upon price control
only as they established rather definite courses of price movement
by departure from which war prices gave alarm. The most reliable
measure of the price level for that period is the index number made
by the Bureau of Labor Statistics for all commodities and those for
important groups. 1
J The Bureau of Labor Statistics index number, separated to show prices within nine
distinct groups (Farm products; Food, etc.; Cloths and clothing; Fuel and lighting;
Metals and metal products ; Lumber and building materials ; Chemicals and drugs ;
House-furnishing goods; and Miscellaneous), contains quotations for representative com-
modities, varying in number from 192 in 1890 to 297 in 1914. These actual prices,
in order that each might have its proper influence upon the final index number, were
made into weighted aggregates and then turned into relatives by allowing each average
prewar aggregate for 1913 to equal 100. The index numbers for " all commodities "
and the nine groups from 1890 to the outbreak of war in Europe, and for later reference
on through 1918, follow :
Bureau of Labor Statistics index number of prewar prices.
[1913=100.]
Year.
All
com-
modi-
ties.
Farm
prod-
ucts.
Food,
etc.
Cloths
and
cloth-
ing.
Fuel
and
light-
ing.
Metals
and
metal
prod-
ucts.
Lum-
ber
and
build-
ing
mate-
rials.
Chem-
icals
and
drugs.
House-
fur-
nish-
ing
goods.
Miscel-
lane-
ous.
1890
81
68
89
92
69
114
72
90
119
92
1891
81
73
89
89
68
102
70
92
119
92
1892
76
66
80
89
65
93
67
91
116
88
1893 -
77
67
87
88
65
85
68
90
116
91
1894
69
59
77
78
61
72
66
83
115
86
1895
70
60
74
78
68
77
64
88
109
82
1896
66
54
67
75
68
80
63
91
106
80
1897
67
58
71
75
61
71
62
89
99
80
1898
69
61
76
79
61
71
65
92
105
79
1899 ---
74
62
75
82
71
108
71
96
104
82
1900
80
69
79
88
81
106
76
97
111
91
1901
79
73
80
82
78
98
73
98
123
90
1902
85
81
85
84
93
97
77
97
123
92
1903
85
75
82
88
106
96
80
96
122
94
1904
86
80
87
89
91
88
80
97
117
94
1905
86
77
87
91
87
98
85
96
109
95
1906
88
78
84
97
90
113
94
94
109
97
1907
94
85
89
104
93
120
97
96
109
101
1908
91
85
94
94
90
94
92
100
104
97
1909
97
97
99
98
88
92
97
101
105
106
1910
99
103
100
99
83
93
101
102
104
116
1911
95
93
99
96
81
89
101
103
99
104
1912
101
101
108
98
89
99
100
101
99
101
1913
100
100
100
100
100
100
100
100
100
100
1914
99
103
103
98
92
87
97
103
103
97
1915
100
105
104
100
87
97
94
113
101
98
1916
123
122
126
127
115
148
101
143
110
121
1917
175
188
177
181
169
208
124
185
155
154
1918
196
218
189
236
175
182
151
206
207
195
GOVERNMENT CONTROL OVER PRICES.
25
This index of prewar prices, when compared with those of war-
time prices, shows relatively a sober behavior. The greatest variation
of the index number for " all commodities " during any year from
its preceding year, was the drop of 10 per cent in 1894. The greatest
subsequent yearly variation was the rise of 8 per cent which came in
1900 and again in 1902. The average of all yearly variations up or
down between 1890 and 1914 was less than 5 per cem% though most
of the changes were increases. The fluctuations within the groups
farm products, fuel and lighting,
and metals and metal products
were somewhat more violent than
these summary data show. The
metal index, indeed, shows that
metals jumped from 48 in 1898 to
73 in 1899, representing an increase
of 52 per cent. There had, of
course, been extraordinary rises in
prices during peace times, but they
were all presently to be surpassed.
(2) THE WAR-TIME PRICES
APRIL 6, 1917.
TO
WEIGHTED INDEX NUMBERS OFPRO30P
^LL COMMODITIES
DCTOPE CONTROL BEGAN
'E>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 <f wheat, which
became acute in the spring and summer of 1917, could not be alle-
viated except by sow r ing more wheat to be harvested one year later, or
in the summer of 1918. Making wheat culture attractive to the
farmer, therefore, became the task of the Government officials.
A minimum price for wheat -fixed l>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 .
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:
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;
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" ^. S~
1 ^ ' o
rr
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ad*
-<
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8 2 .
S Si fe -S
p. ly a> 01
^ O .0 r-(
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5 2 f s
i
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? 8
s
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^ 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 <!he beef supply,
by comparison with those for hog control, were few and simple.
Upon the advice of the producers, no action was taken to stabilize
beef in the fall of 1917, when the first investigations were made in
anticipation of stabilizing hog prices. The control over beef prices
was exercised almost entirely by regulating demand and supply,
and there were never many or elaborate agreements dealing with
the price of beef.
The military and allied demands for beef were considerably
smaller than those for pork, and they were not sufficient in volume
to exert more than a temporary influence on price. It was there-
fore impossible to apply to the beef market the same method of con-
trol that characterized pork control. Meatless days and meatless
meals were instituted as a conservation measure at various times 1
and seemed to effect enormous savings. In fact, over 140,000,000
pounds of beef had been conserved in the four months ending Febru-
ary 28, 1918. 2 However, the rising price of feed stuffs and the fall-
ing tendency in the price of steers (the latter caused in part by
the large seasonal flow of cattle to market) brought to the fore the
question of cattle prices, and it was thought that measures similar
to those taken in the case of hog producers would have to be applied
to cattle raisers and feeders. On March 16 the Food Administra-
tion announced that it would attempt to relieve the cattle situation
by increasing the proportion of its purchases of higher grades of
beef. In early March the daily meatless meal request was with-
drawn, and the only restriction asked of consumers was the beefless
and porkless Tuesday. On March 30, the meatless day was entirely
removed 3 for a period of 30 days. The usual seasonal decline in
the volume of animals coming to market began in early May and
immediately became reflected in the market prices.
1 The meatless day was inaugurated on Nov. 1, 1918. Every public eating place, as
well as all families, were asked to pledge themselves to eat no meat on one day each
week. On Jan. 28, 1918, President Wilson in a proclamation asked for further conserva-
tion of beef, pork, and mutton, and requested that " Tuesday be observed as meatless day
in each week," and that " one meatless meal be observed in each day."
2 The Food Administration on Feb. 22, 1918, in outlining the results of conservation in
a press notice, said in part :
" From the 1st of November, when the meatless day was instituted, to the end of
February the estimated slaughter of cattle in the United States will amount to a mini-
mum of 3,800,000,000 pounds of beef. The export of beef to the Allies during this period
will reach approximately 165,000,000 pounds. * * * The stocks of beef in the cold-
storage warehouses will be approximately the same at the end of February that they
were at the end of October. * * The average prewar exports of beef for 4 months
was about 25,000,000 pounds, and, therefore, the amount of conservation realized has
been, roughly, 140,000,000 pounds."
3 Since the ostensible purpose of the " meatless day " was to conserve the supply and
thereby provide sufficient meat for the Allies, the effect of such meatless days upon the
94
HISTORY OF PRICES DURING THE WAR.
Further requests for conservation and economies in the use of
meat were issued by the Food Administration. 1 But, in spite of
economies, the war demands for beef remained far in excess of our
surplus. The Food Administration was having difficulty in securing
for overseas shipments the grades of beef most economical to ship.
It was found necessary to reduce somewhat the desired weights and
to postpone certain orders. On June 13, further economies were
asked for, and several requests were made of households and public
eating places to limit the weekly consumption of beef to certain
specified amounts. Droughts in the Southwest, in Montana and ad-
jacent States two months later, however, and the accompanying
large runs of cattle to markets, made the continuance of beef con-
servation impracticable, and on August 15, 1918, requests for the
conservation of beef were rescinded. The public was then asked
to purchase cuts from light weight cattle, since these were being
price of live steers is of interest. The prices of steers at Chicago from 1913 to 1918
follow. Their trend from October, 1917, on is especially significant.
Prices of steers at Chicago, 1913-1918.
1913
1914
1915
1916
1917
1918
Choice to prime:
January
$9. 0125
$9. 2250
$9. 1585
$9. 4800
$11.4100
$13. 7688
February
8. 9125
9.2250
8.8938
9.2913
11.8628
13. 7188
March
8.9400
9.2650
8. 6667
9.6813
12. 4500
13. 8875
April
8. 8938
9. 2750
8. 3313
9. 7375
12. 9900
16.0800
May
8. 6563
9. 1250
8. 6450
10.0000
13. 2438
17. 4750
June
8.7800
9.1600
9.2688
11.0063
13. 3625
17.8063
July
8. 9875
9. 6750
9.9063
10.7000
13. 5300
18. 1438
August
8.8875
10. 0300
9.8100
10. 5750
14.3188
18.6000
September
9. 0750
10. 5250
9. 7313
10. 8750
16. 3375
19. 2050
October
9. 1250
10. 4500
9. 6875
10. 9650
16. 5150
19. 1750
November
8. 9563
10. 2188
9.9400
11.5125
15. 6063
19. 4875
December
8.9200
9.7750
9. 6875
11.5250
14. 2250
19. 8350
Good to choice:
January
8. 3563
8. 7563
8. 6333
8,6650
10. 5300
13.1125
February
8.4063
8. 6375
8. 1750
8. 4688
11.1313
13.0750
March
8.5600
8. 6550
8.2333
8.9688
11.8680
13. 2313
April
8.5000
8. 7125
8.0313
9.1188
12. 3100
15. 1750
May
8.2563
8. 7250
8.5900
9.4600
12. 4750
16. 4167
June
8.4850
8.7950
8.9563
10. 2625
12.5500
17. 1750
July
8. 7188
9. 2168
9.2125
9.9850
12. 5600
17. 6250
August
8.5063
9.6200
9.2300
9.8500
13. 1750
17.8250
September
8. 6650
9. 7313
8.9500
9.8000
14. 9873
18. 4100
October .
8.6500
9. 4313
8.8750
9. 9050
14. 6750
17. 8563
November
8. 5063
9.4063
8. 8450
10. 3500
14. 3875
18. 1563
December
8. 4450
8.9125
8. 4875
10. 2917
13.2350
18. 3600
Native beef:
January
7-9250
8.4700
8.2400
8. 4060
10. 1500
12. 0250
Februarv
8.0625
8. 3125
7. 5125
8.2125
10. 4375
11.9625
March *
8. 2709
8. 4375
7. 7375
8.7250
11.0900
12. 5400
April
8.2250
8.5000
7.6250
9.0500
11.7125
14.7000
May
8.0200
8.4300
8.2000
9.3625
11.6833
15. 4375
June
8.2333
8.5625
8.7625
9.8000
12.1000
15.7500
July
8.2125
8.9250
9.2500
9.3760
12.4000
16. 0375
August
8.2400
9.0100
9.0625
9. 4125
12. 5125
15.7600
September
8. 4125
9.3500
8.9625
9.5600
13. 0700
15.0500
October
8.4000
9.0800
8.8900
9.6125
11.7000
14.3750
November
8.2600
8.8333
8. 7250
10. 0075
11.1375
15.0200
December
8. 2125
8. 4375
8.4900
lO.'HOO
11.1167
15. 0500
1 On May 3 a statement was issued to the effect that the Pood Administration was de-
sirous of securing economy in the consumption of all kinds of meats without the reinstal-
lation of the meatless day. The public was asked rigorously to eliminate all waste and to
reduce the consumption of all kinds of meats and poultry, more particularly beef. The
substitution of milk products and fish was urged.
GOVERNMENT CONTROL OVER PRICES. 95
rushed upon the market from the dr ought -stricke*. areas. 1 From
the midsummer of 1918, on to the signing of the armistice, no regu-
lations directly affecting the price of live cattle were put into effect,
On August 16, to be sure, the Food Administration announced a
series of prices which it would pay for beef, September delivery,
such prices to vary in accordance with the weights of dressed steers.
But it appears that this plan proved impracticable, for four weeks
later the method of purchasing beef was changed, and a new plan
of purchasing beef on a basis of quality irrespective of weight was
adopted.
The licensing of the meat industry. Although the main instru-
ment of price control over beef and pork was the regulation of the
markets through purchases by the Food Administration, the regu-
lation of profits and the general supervision over the activities of
the packing industry was attained through the licensing system. Be-
fore availing itself of the license privilege the Food Administration
called upon the packers for opinions and suggestions relative to the
ways and means of control. The idea of placing the packing in-
dustry under license appears to have been generally approved, and
on November 1, 1917, in accordance with President Wilson's procla-
mation of October 8 previous, the packing industry (i. e., " importers,
producers, and packers of fresh, canned, or cured beef, pork, or mut-
ton ") became subject to license by the Food Administration.
Specific exception, however, was made of packers whose gross sales
were less than $100,000 per year. The latter were provided for, in
part, under the license requirements for producers of lard and cook-
ing fats 2 and by subsequent proclamations which included operators
of stockyards, 3 dealers in "live or dead cattle, sheep, swine, or
goats," 4 and distributors and producers of animal fats and oils, and
casings for sausages. 5
The purpose of the licensing system was to reduce the cost of dis-
tribution from producer to consumer and to eliminate profiteering,
and the general method of attaining this end was the prescribing
of certain fixed margins of profit over cost. The packing industry,
however, because of its complicated ramifications and the variety of
by-products, was not readily amenable to this form of regulation,
and other means soon were necessary for its control.
In determining the methods of regulation applicable, the pack-
ing industry divides itself naturally into three parts the five great
1 Compare the price tendency of " native beef steers, carload lots," in which the bulk
of light weight cattle is included, with the price tendency of " heavy " and " corn fed "
steers for July, August, and September.
2 See presidential proclamation of Oct. 8, 1917.
3 See presidential proclamation of June 18, 1918.
4 See presidential proclamation of Sept. 6, 1918.
B See presidential proclamation of Nov. 2, 1918.
96 HISTORY OF PRICES DURING THE WAR.
packers whose individual annual sales exceed $100,000,000; a con-
siderable number of smaller packers whose sales each year are more
than $100,000; and, finally, packers whose annual business amounted
to less than $100,000.
Immediately after the establishment of the Meat Division of the
Food Administration, regulations for the control of the meat indus-
try were formulated. The outstanding feature of these regulations
was the limitation upon profits which was partly made by fixing
the return allowable on the capital invested in the case of the larger
packers, and partly by prescribing a maximum return on gross sales
in the case of the smaller.
Licensees with annual sales exceeding $100,000*000. So many and
diverse are the activities of the modern, large packing plants that
the industry may be said to consist of independent units which have
little connection with each other. Many of the by-products, indeed,
bear little relation to slaughtered live stock. Then there are con-
nected with the packing industry such activities as the making of
cartons and advertising materials which commonly comprise indi-
vidual business units in themselves ; as well as banks, stockyards, and
the like, all of which to-day play an important part in plant opera-
tion. It was therefore necessary for the Food Administration arbi-
trarily to separate the industry into individual units for licensing
purposes. Three divisions were made and different regulations pro-
mulgated for each.
Those activities directly connected with and incidental to the
slaughtering of live stock and the products of slaughtered animals,
as well as the preservation and shipping of meat products, were placed
in class I, and profits from these activities limited to 9 per cent of
the investment (including borrowed capital) per year, representing
substantially the prewar returns. 1
A second class was made up of those branches of the packing in-
dustry which had to do with products (food or otherwise) which con-
tained either in value or bulk few or no materials derived from
slaughtered live stock. Highly fabricated by-products were also in-
cluded in this class, and the annual profits were fixed at a maximum
of 15 per cent of the investment. The raising, fattening, and feeding
1 Immediately following the issuance of these regulations, a protest was made by the
5 large packers, their contention being that a maximum profit of 9 per cent might limit
their borrowing capacity. They also stated that such a profit would not yield them
sufficient to pay for the necessary expansion of plant and equipment and that no new
capital would be found for this purpose during the war. Mr. Hoover appears to have
allayed these fears by his statement that there could be no lack of confidence on the part
of the banking community in the packer's earning capacity, especially since the export
demand for their product was larger than the country's supply. He also said that if the
packers " exhausted their abilities to find capital and exhausted their abilities for coiv
struction out of their earnings, and that if the Government required specific extensions of
plant to meet war needs, these would be considered upon their merits from time to time."
GOVERNMENT CONTROL OVER PRICES. 97
of live stock; slaughtering and packing in foreign countries; the
operation of banks and loan institutions dealing in futures; and in-
vestments in concerns not formerly treated as a department of a pack-
ing enterprise, however, were specifically exempted from the profit
limitations.
Certain principles were applied to the determination of profits and
investment. The latter was defined to include only those investments
owned by the licensee and actually and necessarily used in his business,
and was to consist of the actual investment in land, buildings, and
equipment, the value of stocks held, and other especially designated
factors. The same methods used in determining investment values in
the year ending November 1, 1917, were to be applied to future valua-
tions. The latter principle was also to be applied to the determina-
tion of profits during 1917-18, and provisions were made for deprecia-
tion of plants, repairs, and other items. It is significant that a
special rule was incorporated prohibiting unreasonably large salaries
or other compensations.
Licensees were required to close their books at least once in 10
weeks and report to the Food Administration any information re-
quested by the Meat Division relative to investments, sales, and
profits. In this way the Food Administration was enabled to watch
closely the returns of the individual packers, and in order that
reports might be verified, the individual licensees were compelled
to give to representatives of the Meat Division access to all records
and accounts. The Food Administration, however, was not con-
tent 'to rest even with this check. In order that every part of an
individual packer's business might be supervised, it further required
that it be given access to the books and records of every corporation,
quite irrespective of the nature of its business, in which a licensee held
half or more of the capital stock.
Licensees with annual sales of less than $100 ,000 ,000. The greater
part of the licensed packers came within this category. Since there
were not so many diversifications in these smaller plants, it was not
deemed necessary to make the distinctions between various branches
as was the case with the larger plants. Accordingly, the aggregate
business of the licensee was taken as a unit and a maximum profit
equal to 2J per cent of the gross value of sales was prescribed.
Those activities, however, which were exempted from profit limita-
tions as applied to the larger packers, as well as the operation of in-
dependent retail stores or markets, were to be excluded in comput-
ing sales. Accounting methods were regulated in a manner similar
to those of the larger packers.
The administration of the* license system over meat. The inaugu-
ration of the license system did not remedy the many difficulties con-
125547 20 7
98 HISTORY OF PRICES DURING THE WAR.
fronting the Food Administration. The demands of the fighting
forces were Continually growing and, although the interests of the
live-stock producers were under constant survey of the Meat Division,
it was evident that many of the measures of the administration were
" developing discontent and criticism in sections of the producing
community." 1 Conditions had come to such a pass, in fact, that it
was thought necessary to " study the entire situation in regard to the
meat industry and the steps that should be taken in regard thereto." l
On April 1, at the request of Mr. Hoover, a committee was appointed
to determine a war policy respecting the meat industry.
An investigation of the situation resulted in no radical changes in
administration. The continuation of regulations was recommended,
as well as the bi-monthly auditing of the packers' profit returns, and
the installation of uniform accounting methods by the Federal Trade
Commission which had already been started. It was suggested that
such maximum profit regulations as were then in effect should be
continued until July 1, and that the Federal Trade Commission
report upon the reasonableness of these maxima in the meantime.
The packers, they recommended, should report to the Department of
Agriculture, for publication in the market reports, the wholesale
prices received for meat products and the transfer value of the prin-
cipal by-products of their meat departments.
Among other plans suggested by the committee was the extension
of the activities of the food purchase board, looking to a coordination
of all official purchases of packing-house products. Such purchases
ought, it was said, be made at prices sufficient to insure production
and should be applied likewise to purchases of the public. The com-
mittee recommended, too, an investigation of the retail end of meat
distribution and the control of refrigerator cars by the Railroad
Administration.
The most important actual departure resulting from this investi-
gation of the packing industry was the licensing of the stockyards.
A presidential proclamation of June 18, 1918, required all operators
of stockyards, all buyers, traders, and others who operated in connec-
tion with stockyards "to secure licenses on or before July 25, 1918."
The supervision and regulation of these licensees were placed in the
hands of the Department of Agriculture. A system of animal grad-
ing was immediately put into effect, and licensees were required to
make daily reports of the distribution and destination of live stock,
meats, and other products from the principal packing points.
The licensing in September of dealers in live or dead meat animals
brought the meat industry under still further control. Four days
1 See Mr. Hoover's letter to President Wilson, Mar. 26, 1918.
GOVERNMENT CONTROL OVER PRICES.
99
after the signing of the armistice manufacturers and distributors of
sausage casings were licensed, and that regulatory measure was the
final one imposed upon the packing industry, though it was also the
first to be withdrawn. 1
The results of -meat control. American exports of beef prior to
1915 had reached their high point in 1906 and were of little conse-
quence generally. Indeed, from 1906 on beef shipments to Europe
declined, and by the fiscal year 1911 they had virtually terminated. 2
With the opening of the World War and the tremendous loss of other
shipping American exports to Europe experienced a phenomenal rise,
and the 12 months ending June, 1915, witnessed an increase of 2,700
per cent over the exports of the previous fiscal year. With the en-
trance of the United States into the ranks of the belligerents there
was a still further increase in exports, which in the fiscal year 1918
reached 467,873,000 pounds. 3
Pork exports, likewise in large demand by our European Allies, also
increased considerably during the period of the war, and shipments
in 1918 were about 360 per cent larger than those of 1914. 4 This
increase, indeed, is evidence of the Food Administration's success in
its attempts to enlarge shipments of pork to the Allies. It is signifi-
cant to note, despite the enormous increase in exports, that the hogs
reported in the United States on January 1, 1919, numbered
75,587,000 as against 70,978,000 on the same date in 1918, and
1 These licenses expired on Jan. 10, 1910.
2 Exports to Europe of canned, fresh, pickled, and cured beef in the fiscal year ending
June, 1906, equaled 413,865,267 pounds. By 1912 they had dwindled to 34,949,787
pounds, and in 1914 they were only 9,511,914 pounds.
3 The trend of beef exports is presented in the following table of shipments to Europe
for the fiscal years 19151918. Data from the Bureau of Foreign and Domestic Com-
merce, United States Department of Commerce :
United States export* of canned, fresh, pickled, and cured beef to Europe, 1915-1918.
Fiscal year : Pounds.
1914-15 257, 121, 000
1915-16 284, 797, 000
1916-17 271, 194, 000
1917-18 467, 873, 000
< Below are presented the Department of Commerce figures showing exports of bacon, hams, and shoul-
ders for the 5 years ending June, 1918. Although the relative increase for 1918 shipments as compared to
1914 is considerably smaller than in the case of beef, the actual increase in pounds is much greater, some
725,000,000 more pounds having been shipped in 1918 than in 1914.
United States exports of hog products to Europe, 1914-1018.
Product.
1913-14
1914-15
191-5-16
1916-17
1917-18
Bacon . ...
Pounds.
166,917,000
Pounds.
321,820,000
Pounds.
524,379.000
Pounds.
531,265,000
Pounds.
750, 879, 000
Hams and shoulders
150, 717 000
191 110 000
262 878,000
245 328,000
392 000 000
Total
317,634,000
512, 930, 000
787, 257, 000
776,593,000
1,142,879,000
100
HISTORY OF PRICES DURING THE WAR.
67,503,000 in January, 1917, while the hogs marketed in the year
1918 numbered 69,854,700 as compared with 57,483,800 in 1917.*
The beef situation, in like manner, appears to have been radically
changed during the past three years. The number of cattle slaugh-
tered in 1918 totaled approximately 2,000,000 more than in 1917,
representing a net increase of about 1,000,000,000 pounds of beef,
while, at the same time, there were in the United States on January
1, 1919, more cattle than at any other time in the history of Ameri-
can agriculture. 2
With the rescinding of the export regulations of the War Trade
Board, pertaining to shipments of meat, in March, 1919, and the
consequent opening of foreign markets to individual packers, the
price agreements relative to hogs automatically went out of existence.
The control of the market through purchases by the Food Adminis-
tration was considerably diminished, with a resultant inability to
keep up hog prices. Later events, however, showed price agree-
ments to be no longer necessary, for within seven weeks after the
removal of the embargo on private shipments the price of hogs
reached $21.15 per 100 pounds,- the highest price ever known.
On April 1, 1919, importers, manufacturers, storers, and distribu-
tors of beef, pork, mutton, or lard were released from license re-
quirements by Presidential proclamation, and the packing industry
was freed from war-time control by the Food Administration.
1 A detailed statistical review of the hog supply in the United States as of Jan. 1, from 1910 to 1919, is
presented in the following table, prepared by the Bureau of Crop Estimates, U. S. Department of Agri-
culture.
Hogs in the United States, 1910-1919.
Year.
Total num-
ber.
Per cent
of preced-
ing year.
Year.
Total num-
ber.
Per cent
of preced-
ing year.
Jan. 1,1910...
*58, 186, 000
Jan. 1,1915
64,618,000
109.6
Jan 1 1911
65 620 000
112 8
Jan 1 1916
67 766 000
104 9
Jan. 1 1912
65 410 000
99.7
Jan. 1,1917 . . .
67,503,000
99.6
Jan 1 1913
61 178 000
93 5
Jan 1 1918
70 978 000
105 1
Jan. I, 1914
58 933 000
96.3
Jan. 1,1919
75, 587 ; 000
106.5
*Census Report of Numbers, Apr. 15, 1910.
2 The number of cattle, excluding milch cows, in the United States at the first of the year, from 1910 to
1919, are presented below. (Data from Bureau of Crop Estimates.)
Cattle other than milch cows in the United States, 1910-1919.
Year.
Total num-
ber.
Per cent
of preced-
ing year.
Year.
Total num-
ber.
Per cent
of preced-
ing year.
Jan.1,1910
Jan. 1,1911 .. .
*41,178,000
39 679 000
96" 4
Jan. ,1915
Jan. 1916 .
37,067,000
39 812 000
103.4
107.4
Jan 1 1912
37 260 000
93 9
Jan 1917
41 689 000
104. 7
Jan. 1,1913 ...
36 030 000
96.7
Jan. 1918
44.112 000
105.8
Jan. 1,1914 .
35 855 000
99 5
Jan 1919
44 399 000
100.7
*Census Report of Numbers, Apr. 15, 1910.
GOVERNMENT CONTROL OVER PRICES. 101
.V,
POTJLTEY AND DAIRY PnODVt IS.
The problem which faced the Food Administration in regard to
poultry and dairy products was one of profit control strictly, and
no definite price-fixing was adopted throughout the period of the
Food Administration operation.
Poultry. The perishable nature of fresh poultry made it virtu-
ally impossible to enforce any concrete price regulation. The greater
part of the efforts of Food Administration was directed toward
the prevention of hoarding and intertrading and to the elimination
of all possible waste. Thus the early rules related to methods of
shipping and feeding poultry, and specific regulations were issued
as to methods of marketing. Licensees were instructed, for example,
to keep their poultry moving to the consumer in as direct a man-
ner as possible, and no resales were allowed within a given branch
of the industry unless made at a price which was less than or equal to
the initial cost to the seller. 1 Four classes of dealers in fresh poultry
were recognized and only those sales were permitted which resulted
in poultry following the normal movement from producer to con-
sumer. 2
The attractive market prices for poultry early in 1918, as well as
the high cost of feed stuff, were persuading many poultry raisers to
sell fowl, which, if kept, would have added to the spring and summer
egg production. The idea of the Food Administration, however, was
to keep on the farms those birds which would be egg layers i-n the
months to follow, thereby increasing the production of eggs. In this
way the available market supply could be enlarged and at the same
time more eggs would go into storage during the season of high pro-
duction at a price which would not necessitate unreasonable figures
during the fall and winter. Accordingly, on February 11, 1918, an
order of the Food Administration forbade licensees to ship, sell, or
negotiate the sale of any live or freshly killed hens or pullets until
April 30, 1918. The weather conditions of March and April brought
about an early laying and hatching period, and by the middle of
April the Food Administration lifted its restriction. It is estimated
that at least 3,000,000 hens were saved in the New York, Chicago, and
Boston markets alone.
The nature of the frozen-poultry industry allowed a much fuller
control than was possible with fresh poultry, and there was accord-
1 For a limited period sales between wholesalers in different cities were permitted at
an advance of 5 per cent when such sales were necessary to supply the reasonable require-
ments of the buyer's business. In some cases 1 sale between dealers in the same branch
of the trade was allowed, but more than 1 sale could not be made without the consent of
the local food administrator.
- The classes so recognized were : Original packers and shippers, commission merchants
and wholesalers, jobbers and suppliers of hotels and institutions, and retailers.
102
HISTORY OF PRICES DURING THE WAR.
inglyina'uguratecVa fairly complete set of rules limiting the profits of
the individual classes of distributors. The marketing of the fresh
poultry which goes into the cold-storage warehouse is a highly sea-
sonal affair, and the fowl producer was beyond the reach of the Food
Administrator. It was, therefore, impossible to fix the price that
the packer should pay for his poultry, and consequently the price
which he should charge could not be fixed.
A maximum of 6 per cent was fixed as the advance over cost to be
allowed to packers on sales of frozen poultry. This margin, how-
ever, applied only to regular sales within the trade that is, sales
to commission merchants, wholesalers, or jobbers. Many packers sell
directly to retailers and to hotels, and in that way save the charges
of middlemen. In recognition of the economic advantage of elimi-
nating middlemen wherever possible, an additional advance of 10
per cent over the 6 per cent maximum mentioned above was allowed
to packers who sold directly to retailers. To those who sold directly
to hotels and institutions an additional advance of 15 per cent was
permitted. 1
The return to commission merchants was limited to 5 per cent, as
was also the case with wholesalers. However, in those cases where
wholesalers also sold as jobbers, they were allowed a profit of 10 per
cent over cost. Jobbers were permitted to sell their poultry at an
advance of 10 per cent; and for suppliers of hotels and institutions
there was set a maximum of 15 per cent. 2
Eggs. The regulations relating to cold-storage eggs, as with fresh
eggs and fresh poultry, were similar to those for frozen poultry. The
industry was divided into four parts and restrictions were enforced
relative to intertrading, 3 and a maximum return was prescribed on
the sales of each branch. 4
1 The regulations as first issued said nothing as to extra margins allowed packers who
sold directly to jobbers or to suppliers of hotels and institutions. An amendment of July
26, 1918, fixed the extra advance at 5 per cent, thus making the total return to packers
who eliminated commission merchants or wholesalers in their transactions equal to 11
per cent.
2 The organization of the trade, it is elsewhere shown, is such that poultry usually
passes through four hands (1) packers who sell to (2) commission merchants or whole-
salers, who in turn dispose of their products to (3) jobbers or suppliers of hotels and
institutions, and (4) retailers and hotels and institutions. Upon adding up the various
returns allowed the individual branches of the trade, the total advance over the 6 per
cent allowed the original packer amounted by the time frozen poultry reached the hands
of the retailer, to 15 per cent ; that is, 5 per cent to wholesalers or commission merchants
and 10 per cent to jobbers. Packers selling directly to retailers, however, were only
allowed an extra advance of 10 per cent, thereby saving 5 per cent in distributive costs.
Similarly, when poultry went directly into the hands of suppliers of hotels and institu-
tions a saving of 5 per cent was realized, the cost of distributing through the various
hands being 20 per cent, as against 15 per cent when sold by the packer direct to hotels,
etc.
3 An advance of 4 per cent was allowed on sales within the same branch of the trade,
but such sales were limited to one in number for any lot of eggs. Local Federal food
administrators had to be informed of such sales, as was also true of poultry.
4 Original packers storing in cold-storage warehouses were allowed a profit of per
cent over cost. When packers sold to retailers, an additional advance of 5 per cent over
GOVERNMENT CONTROL OVER PRICES. 103
Unlike the poultry regulations, however, provision was made for
limiting the profits of licensed retailers, to whom were allowed
maximum returns on candled and selected eggs of 15 per cent. This
maximum was later changed by the Retail Section of the Distribution
of Perishables to the definite sum of 7 cents for cash-and-carry stores
and 8 cents for credit-and-delivery stores, and any advance over cost
in excess of this amount was considered as a violation of the
reasonable-advance-over-cost rule.
Butter. The demand for fats in the war program led to the
inclusion in the food-license proclamation of October 8, 1917, of
manufacturers, dealers, brokers, and commission merchants in but-
ter. The price of butter had previously shown no extraordinary
fluctuation ; x indeed, the price level of butter had risen more slowly
than that of commodities in general. The primary aim of the Food
Administration in this control, appears to have been the elimination
of profiteering, since the regulations related in some way or other
to the limiting of distributors' margins only. The costs of butter
are so variable as to make impracticable any definite system of price
regulation. In one instance, however, the price of butter was defi-
nitely fixed for a short while. Butter prices have a tendency to rise
during the early winter months, and it was the desire of the food
authorities to check, if possible, the usual rise during the emergency
period.
On January 22, 1918, a scale of wholesale prices was established
with the voluntary cooperation of the butter trade, and butter was
fixed at 47 cents a pound at New York. At Chicago a price of 45 J
cents was established for the last quarter of January, with the
provision that beginning on February 1 the price be advanced one-
fourth cent per pound on the 1st and 15th of each month until all the
creamery butter then in storage should be released. These prices
were but temporary and were enforced only for a period of several
months, the time required for the release of the butter then in storage. 2
For the purpose of enforcing the various regulations, butter was
classified as fresh and cold storage, the latter term being applied to
cost could be charged if eggs were sold in original packages. If however, such eggs were
candled before being sold, an additional advance of 10 per cent of cost was permitted. In
soiling candled eggs the actual net candling loss could be included in the cost, but the
expense of labor and materials in candling and all repacking charges had to be omitted.
Likewise an additional 12 per cent could be charged on sales to suppliers of hotels, etc.
Commission merchants and wholesalers could sell cold-storage eggs at a maximum of 4
per cent over cost ; jobbers at 5 per cent for cold-storage eggs and 10 per cent for candled
eggs, while suppliers of hotels and institutions were permitted to take a profit of 12
per cent on either type.
1 By January, 1918, the wholesale price of butter had risen but 60 per cent above the
prewar average, while the general price level had advanced approximately 85 per cent.
2 It will be noted that prices were fixed only at New York and Chicago. It was thought
unnecessary to fix prices at other points, since the principal butter exchanges were located
in those two important centers. These exchanges had agreed to sell their butter at the
established prices, and this was regarded as sufficient assurance that corresponding prices
would rule throughout the country-
104 HISTORY OF PRICES DURING THE WAR.
butter kept in cold storage for more than 30 days. No specific mar-
gins were designated for butter manufacturers as such, although all
other dealers were limited as to the amount they could add to cost
in making sales. 1
To dealers other than manufacturers or retailers there was per-
mitted a margin over cost varying from 1 to 2| cents per pound, de-
pending upon the size of the sales made. 2 Commissions for sales by
commission merchants were also limited, but charges so incurred
could not be figured in determining costs.
It is of interest that during the first year of governmental regula-
tion no specific statement was made in regard to prices to be charged
by butter manufacturers selling their product to wholesalers or job-
bers. To be sure, the Food Administration had a right to ask at
any time for a report showing costs, margins charged, or any other
information along such lines, and in this way prices were kept under
control. In those cases where manufacturers sold as wholesalers or
jobbers, eliminating the middleman, they were entitled to the mar-
gins allowed to wholesalers or jobbers. The significant point in this
connection, however, was the method of determining costs, since the
methods used for cold-storage butter was distinctly different from
those used for the fresh variety. In the latter case only the cost of
raw materials and the expense of manufacture were recognized; in
the former the quotation " on the kind and grade of butter placed in
cold storage, as quoted in a well-recognized commercial price current
in the city,- where and on the day when the goods [were] placed in
storage " was to serve as the cost basis. 3 Near the end of 1918, how-
ever, a definite margin was fixed for manufacturers of butter who
sold their products to others than retailers. 4
Retail dealers likewise were regulated as to their returns only at
a late date, and to them was allowed an advance over cost of 6 cents
1 As in all other cases, the reasonable-advance-over-cost rule was applied to the indus-
try. Unlike the average foodstuff, however, the elements which could be included in the
determination of costs were specifically stated in the regulations pertaining to butter.
They were, first, purchase price; second, transportation charges; third, storage charges;
fourth, insurance charges ; fifth, interest on money invested at current rate while butter
was in storage ; and, sixth, actual cost of printing.
2 The maximum margin was changed by the regulations of Sept. 10, 1918, to 3| cents,
which applied to sales of less than 100 pounds. Dealers carrying butter in cold storage
more than 2 full calendar months could add to the permitted margin an extra cent per
pound. For every calendar month in excess of 2, an additional quarter of a cent per
pound was permitted, until a maximum of 2 cents was reached.
3 When there was no well-recognized daily price current in the city where the goods
happened to be stored, permission was granted to use quotations given in a price current
in the large market nearest the place of storage.
4 That is, manufacturers who sold their butter to wholesalers or jobbers, who in turn
disposed of their goods to retailers, restaurants, hotels, etc. The margin for these manu-
facturers was set at 5 cents above the cost of the butter fat required to produce a pound
of butter. In other words, "if the cost of butter fat was 50 cents per pound, and 8
pounds of butter fat were necessary to produce 10 pounds of butter, the cost of butter
fat necessary to produce butter would be 40 cents per pound of butter (manufactured)
and the maximum selling price for the manufacturer would be 45 cents."
GOVERNMENT CONTROL OVER PRICES. 105
per pound to cash-and-carry stores, and 7 cents per pound for stores
extending credit and delivery. The addition of an extra margin for
butter kept in storage which was guaranteed to other dealers was also
allowed to retailers.
Cheese -The prices of cheese follow closely the general tendencies
of butter, and since the two industries show considerable likeness,
the Food Administration .adopted regulations for the cheese industry
which were very similar toj;hose for the butter industry. No definite
return was established for the manufacturer of cheese, and his profits
were kept in check under the reasonable advance regulation. 1
Dealers were limited in the advances permitted over the cost of
their product, and like the margins allowed in the butter industry,
these margins varied with the size of the sales. 2 Retail margins,
too, were fixed and a maximum profit of 7 cents per pound over
cost was allowed to cash-and-carry stores, while an advance of 8
cents per pound over cost was permitted to stores which extended
credit and delivery.
Milk. With feed stuffs in July, 1917, selling at a level 118 per
cent higher than during the prewar year, 3 and cows for slaughter
averaging about 50 per cent 4 more than the average peace-time
price, it was to be expected that milk, too, would rise in proportion.
But, curiously, the price of milk remained relatively stable, 5 and
July, 1917, found the wholesale price of fresh milk in New York
but $0.0498 per quart, or approximately 7 per cent above the prewar
average.
It was but natural, then, that a demand for increased milk prices
should arise among milk producers, and at the time of the organi-
zation of the Food Administration a general movement in that direc-
tion had already begun. The milk distributor, as well as the pro-
1 Exact margins were not fixed at a later date for producers of cheese as they were
for butter. However, a provision was adopted which outlined two ways of determining
the cost of a supply of cheese for the manufacturer, who also sold as a wholesaler or
jobber and who wished to secure the benefits of such margins as were allowed to the
middlemen. Costs under such circumstances could be figured, first, by computing the cost
of the raw material and the expense of manufacture ; or, secondly, by considering as cost
the price for the cheese to be sold in the primary market during the 10 days following
the day of manufacture. (This latter method applied only to the determination of the
cost of American or cheddar cheese.)
2 Certain advances over cost were established for the individual types of cheese. Mar-
gins for American or cheddar cheese, for example, ranged from three-fourths to 3J cents
per pound; those for round or tub Swiss cheese from 11 to 8 cents per pound. Dealers
in block Swiss cheese were allowed from 1 to 4J cents per pound ; while brick, Limburger,
and Munster cheese could be sold at a maximum advance, which ranged from 1J to 3|
cents.
3 See " Prices of Feed and Forage," by Lloyd W. Maxwell (W. I. B. Price Bulletin
No. 8).
4 See " Prices of Live Stock, Meats, and Fats," by Wm. A. Barber (W. I. B. Price
Bulletin No. 20).
5 The price of milk, of course, is subject to extreme seasonal fluctuation, but as prices
go it may be said that the milk situation was quite unaffected by the general upheaval
which characterized prices in general. Milk in New York, to be sure, in 1916, had sold
106
HISTORY OF PRICES DURING THE WAR.
ducer, played an important part in price revisions, and lie, too, was
asking for increased prices because of increased labor costs, over-
head charges, and other necessities. While both the aforementioned,
however, demanded an increased price, each appears to have doubted
the necessity of an increase for the other. Distributors on the one
hand objected to the raising of prices by producers, and producers
on the other hand protested against the demand of distributors. 1
as high as $0.0523 per quart (November and December), or about 50 per cent above the
level of the prewar year ; but this price, it should be borne in mind, was temporary and
should be compared with the average price of $0.0388 for the year.
A more detailed picture of milk prices can be obtained from the following table :
Milk (per quart}, grade B, New York.
Month.
1913
1914
1915
1910
1017
1918
January
$0. 0375
$0 0400
$0.0413
$0 0413
10 0513
$0 0808
February
0375
0375
0393
0400
0500
0770
March
0350
0350
0375
0375
0490
0745
April
0333
0325
0325
0325
0488
0590
May
0300
0266
0275
0300
0478
0583
June
0275
0275
*0275
0275
0455
0443
July
0300
0300
0300
0313
0498
0538
August
0350
0325
0325
0350
0595
0633
September
0375
0350
0350
0365
0595
0675
October
0400
0400
0375
0500
0718
0818
November
0404
0425
0425
0523
0770
0870
December
0404
0425
0425
0523
0718
0923
Year
0353
0351
0355
0388
05G8
0699
1 Mr. W. C. Mullendore in the summary report of the Food Administration, analyzing
the milk situation as it existed in the summer and autumn of 1017, says:
" In some of the larger centers the controversies became very bitter and often un-
reasoning. An increase in the price of milk when made was followed by a marked
decrease in consumption, which not only resulted in suffering children, but also dammed
the supply back onto the farm with a loss to the producer, which encouraged the killing
off of herds. It was feared the result would be the depletion of dairy herds, a result
which the consumer could of all concerned the least afford to cause.
Moreover, there was the actual problem of future supplies which was becoming more
and more acute. The Food Administration realized the severity of the situation and
took immediate steps to inform the public of the state of affairs, as is evidenced by the
following statement issued on Aug. 26, 1917 :
Milk and butter supplies are decreasing in the United States, while our population
is increasing. The dairy herds of Europe are diminishing rapidly because of the condi-
tions created by war, and there is no probability of improvement in these conditions.
The dairy problem in this country, therefore, is not only a war emergency problem, but
one that will continue after the war.
The world's dairy supplies are decreasing rapidly for two important reasons : First,
the dairy cattle of Europe are diminishing, for Europe is being driven to eat its cattle
for meat ; second, the diversion of labor to war has decreased the fodder supplies, and
the shortage of shipping has limited the amount of imported fodder, and therefore the
cattle which can be supported and the productivity of the individual cow have been re-
duced. Even our own dairy supplies are not keeping pace with our growth of population,
for our per capita milk supply has fallen from 90 to 75 gallons annually in the past 15
years. Yet to-day we must ship increasing amounts of dairy products to our Allies.
The dairy situation resolves itself into several phases. First, it is to be hoped that
the forthcoming abundant harvest will result in lower prices of food and diminish the
impetus to sell the cattle for meat. Second, the industry needs encouragement, so as to
increase the dairy herd, and thus our dairy supplies, for the sale, first, of our own people
and, second, of the Allies. The people must realize the vital dependence of the well-being
of their children, and thus of the Nation, upon the encouragement and upbuilding of the
industry."
GOVERNMENT CONTROL OVER PRICES. 107
There was, too, always a third party with whom to reckon, the
ultimate consumer, who would bear the burden of increasing prices.
He of course objected to an increase on the part either of the pro-
ducer or distributor, and often accused both of profiteering.
The Food Administration soon was called upon to help solve the
difficulties, and after consideration it became apparent to that body
that here was a problem peculiarly difficult. For not only was there
the question of determining a fair price, 1 but there was also the
problem of enforcing such a price after it had been determined, and
for such action the Food Administration had no power. 2 The prob-
lem had to be solved, however, and the first step taken was the
appointment by the Food Administration of a committee to investi-
gate the costs of milk production and distribution. The Food
Administration after conferring with representatives of the milk
producers, also suggested that milk contracts "affecting the prices
producers receive * * * be on a monthly basis instead of a period
of six months, as customary." In this way prices could be changed
from month to month as conditions warranted, and many of the
evil results of the long-time contract could be eliminated. This
change in business method seemed not, however, to alleviate condi-
tions to any appreciable degree, since producers, distributors, and
consumers all continued to ask the Food Administration for relief.
Finally, in November, 1917, milk tribunals representing the Federal
Government w T ere asked to solve the milk problems of the metropoli-
tan areas. These commissions were made up of representatives of
producers, distributors, consumers, milk experts, and the public at
large, and it was their duty " after assembling data bearing on prices
to make reports that would advise the public of the true status of the
milk industry " in the various districts investigated. 3 Producers and
distributors agreed to abide by the decisions of the commission in
their respective territories so long as they remained parties to the
agreement for its appointment, but they were given the right to
withdraw from the arrangement upon 30 days' notice. 4 Moreover, it
*Mr. Hoover in an address at the National Milk and Dairy Farm Exposition in New-
York on May 23, 1918, laid considerable emphasis upon the difficulties met in finding a
basic price for dairy products, especially milk. Among other things, he said :
" These complexities arise from the fact that in a considerable part of the industry
the raw material in feeds, the labor, land, and equipment employed, are by-products of
other major agricultural operations, and the commodities produced (from milk* are all
in different circumstances, by-products of each other."
2 Mr. Hoover in a letter of Sept. 22, 1917, to Mr. I. Blkin Nathans, secretary of the
New York Milk Conference Board, said in this connection :
" I have given earnest consideration to your request for the intervention of the Food
Administration in the pending settlement of milk prices with producer's representatives.
As you are aware, the administration has no authority to intervene or fix prices."
3 Commissions were appointed for the New England district around Boston, the New
York City district, the Chicago district, the San Francisco district, and later (Feb. 21,
1918) for the important consuming centers of Ohio.
4 Report of Food Administration by W. C. Mullendore.
108 HISTORY OF PRICES DURING THE WAR.
was voluntarily agreed that no increases in the price of milk were to
be allowed while the various commissions were making their inquiries.
The commissions appear to have had different degrees of success,
and the period of their functioning varied from several months to
one year. The New England commission was the only one which
remained in existence from the time of its appointment to December,
1918, when the oversight of the Food Administration was withdrawn.
In New York where the greatest difficulty was experienced, prices
were first fixed for January, 1918, and the milk commission continued
price recommendations from month to month on the basis of data
submitted. In May, however, virtually all milk distributors who
were parties to the price agreement specified their intention of with-
drawing during the following month, and on July 1 the agreement
terminated. After considerable wrangling over prices between the
producers and distributors, the Food Administration was once more
called in, this time to act as mediator in arriving at a fair price.
There appeared, however, to be no common basis for agreement.
Indeed, it was not until the Food Administration suggested a price
of $2.70 per 100 pounds of milk for the month of August, and $2.90
for September 1 that the situation quieted down. During the re-
mainder of the year the Food Administration continued to act as
mediator in the determination of milk prices for the New York
district, and their efforts seem to have been more or less successful. 2
Conditions in the other municipal centers were akin to those in
New York, and the price problem was generally solved through the
application of cost data.
Although the milk problem was immediately one of price, the
degree of organization within the industry, and the consequent power
of the producer and distributor to withhold milk from the market,
resulted in the question resolving itself ultimately into one of public
health and public welfare. There was needed not only a fair price
for milk, but also a sufficient supply, and the latter meant an increase
in cattle herds. The regulation of milk prices apparently did not
1 This price was arrived at by use of a formula which averaged the cost of feed and
labor required to produce 100 pounds of milk. Representatives of the distributors during
the early stages of the negotiations appear to have objected to this use of a cost-of-
production formula. Later, however, they gave their assent to its adoption.
2 The wholesale prices, per 100 pounds, adopted for the year 1918 for New York City,
for grade B milk, totaling 3 per cent butter fats within a freight zone of 150 miles were
as follows :
January..
February .
March
April
May
June
$3.52
3. 34
3. 22
2. 50
2. 46
1.80
July $2. 25
August t 2. 70
September t 2. 90
October t 3. 57
November t 3. 81
December-. t 4. 06
*Fixed by milk commission.
fFixed by producers and consumers with Food Administration as mediator.
GOVERNMENT CONTROL OVER PRICES.
109
have a serious effect upon the supply of cattle, for the number of
milch cows increased slightly during the year 1918. This increase,
however, was the smallest for any single year since 1913. 1
It is impossible to determine the effect of price regulation upon
the consumption of milk, since there are no reliable statistical data.
The milk production for 1918 has been estimated at 46,384,000,000
quarts as against 44,640,000,000 in 1917, an increase of
approximately 3 per cent. But after allowing for the increase of
1.23,000,000 pounds in the exports of 1918 over 1917, and taking into
consideration the normal annual increase in population, it is ques-
tionable whether the consumption of milk in the United States
actually increased.
OLEOMAKGARINE.
The regulations relating to oleomargarine were few, since this fat-
was provided for under the regulations applicable to the packing in-
dustry, in whose hands the larger part of the oleomargarine produc-
tion is concentrated.
Not until late in 1918 were definite steps taken to establish a maxi-
mum price for oleomargarine, and this action no doubt was prompted
by the upward tendency of its price started during the midsummer
months. Standard uncolored oleomargarine advanced 7.5 cents dur-
ing the single month of August. A careful analysis of the costs of
producing oleomargarine was made during the latter part of 1918,
and 6.3 cents was determined upon as a reasonable figure to allow
during the two months beginning December 1, 1918. 2 Each manu-
facturer, therefore, in figuring the total cost of his product was per-
mitted to add to the cost of raw materials an amount not to exceed
6.3 cents per pound. 3
1 The following table from the monthly Crop Reporter of the Department of Agriculture, February,
1919, shows the condition of the milch cow herds in the United States on Jan. 1, 1919, as compared with
the same day in previous years:
Milch cows in the United States.
Number.
Per cent
of pre-
ceding
year.
Number.
Per cent
of pre-
ceding
year.
Jan. , 1919
24,467 000
100.7
Jan. 1 1914
20,737,000
101.2
Jan. 1918
23 310 000
101 8
Jan. 1 1913
20, 497, 000
99.0
Jan 1917
22 894 000
103 6
Jan 1 1912
20 699 000
99 4
Jan. 1916
22' ios' ooo
104
Jan. 1 1911
20. 823, 000
100.9
Jan 1915
21 262 000
102 5
Jan. 1 1910 . . .
*20 625,000
* Census report of Apr. 15, 1910.
2 Manufacturing costs includeu : (1) Labor, (2) selling expensesfi (3) advertising, (4)
administrative expenses, (5) depreciation, (6) taxes not including excess-profit tax and
income tax and (7) miscellaneous manufacturing expenses not including interest
charges.
3 The cost of raw materials was defined as the cost of the following delivered at the
plant: (1) Oils, (2) milk, (3) salt, (4) package, (5) color, (6) stamps, (7) cartons and
paper, and (8) supplies.
110
HISTORY OF PRICES DURING THE WAR.
As regards manufacturers' profits, these were limited to 10 per cent
over cost, while to retailers there was granted the right to add 5 cents
per pound over cost for cash-and-carry stores, and 6 cents per pound
for stores rendering extra services.
COTTON SEED AND COTTONSEED PRODUCTS.
The early price situation. The speculative nature of the cotton-
seed industry, the scarcity of substitutes for cottonseed products, and
the falling off in the supply of cottonseed oil because of the small
cotton crops in the years 1915 to 1917, 1 all played an important part
in the price movement of cotton seed and its products during the
war period.
The effect of these various factors upon the price of cottonseed
products was clearly reflected even in 1915 when the price of cotton-
seed oil jumped from 4.4 cents in August to 7.31 cents in December.
After this initial start, the price continued a general upward climb
until further rise was checked by governmental action. 2 By August,
1917, the month of the creation of the Food Administration, cotton-
seed prices had risen to $56.61 per ton, a point approximately 150
per cent above the prewar level. The main product, oil, had similarly
risen from an average of $0.0619 per pound in the prewar year to
$0.1392, an increase of about 125 per cent.
^~The licensing of the industry. The importance of oils of all sorts
in our war program, and the acute demand for cottonseed cake, 3
made necessary some immediate action toward stabilizing prices.
Accordingly, by presidential proclamation, all ginners, crushers, re-
finers, and dealers in cotton seed, cottonseed oil, meal and cake were
1 The 3 years ending 1918 were relatively lean years in cotton seed production. The amount of cotton
seed crashed was considerably smaller than in any of the preceding 3 years, and had its effect upon the
production of cottonseed oil. The fluctuations which characterized the course of the cotton seed industry
are shown in the appended table:*
Year.
Cotton seed
production.
Cotton seed
crushed.
Cottonseed
oil (crude)
production.
1912-13
Short tons.
6 104 000
Short tons.
4 580 000
Pounds.
435 ooo 000
1913-14 .
6 305 000
4' 848' 000
'500' ooo ooo
1914 15
7 186 000
5 780 000
790 0(K) 000
1915-16 ..
4' 992' ooo
4*202^000
300 000,000
191&-17
5 113 000
4 479 000
492 000 000
1917-18 .... .
5 040 000
4 '252 000
344,000 000
* Data from War Industries Board Price Bulletin No. 15, "Prices of Edible Vegetable Oils. "
2 See chart on p. 114.
3 The autumn, of 1017 witnessed a severe drought in the southwestern section of the
United States, and there was great suffering among cattle because of the shortage of
feed stuffs, the most important of which was cottonseed cake. The unusual demand
caused by this situation still further accentuated the already high price of cottonseed
cake, and the Food Administration realized that immediate action toward stabilizing the
situation was necessary.
GOVERNMENT CONTROL OVER PRICES. Ill
placed under license on November 1, 1917. Regulations designed to
prevent speculation were soon put into effect, and hoarding, reselling,
and the making of long-time contracts were prohibited. Moreover,
speculation in cottonseed oil on the New York Produce Exchange
was checked. About one month later the first attempt at regulating
the price of cotton seed and its products was made, and on December
7, 1917, the margin allowed to any dealer in cotton seed in car lots was
fixed at $2 per ton. Crushers' margins were also fixed at the same
time, and a maximum margin of $13 a ton over the cost of a ton of
cotton seed was allowed for products obtained from crushing. 1 But
even with fixed margins there was no guarantee that the varying
costs of cotton seed would not cause fairly important fluctuations in
the price of any given product in the same localities, if not in the
same mill. For, although a margin had been fixed for the sale of
cotton seed, there still remained the possibility of appreciable differ-
ences in the initial cost to which the allowable margin was to be
added. This difficulty was soon foreseen, however, and a further
restriction was included in the regulations applying to the cotton-
seed industry, limiting to a degree the price that could be paid by
a crusher for the seed he used. He was not allowed to pay higher
prices for cotton seed in one market than he paid for cotton seed of
the same quality in any other market.
Thus, the price of cotton seed was virtually fixed and the return
to the crusher confined to more or less narrow limits. There yet
remained the problem of the refiner's price. This appears to have
been left relatively untouched, since the control over the profits of
refiners and distributors through the license system 2 afforded a suffi-
ciently powerful weapon to keep the price down. It soon became
apparent, however, that the market would be further stabilized if
the cost of the crude cottonseed oil were made uniform to the various
refiners. The maximum price of crude cottonseed oil, therefore,
was fixed by agreement with the producers at 17. 5 cents per pound at
1 This margin of $13 was to pay not only for manufacturing costs, but also for
bags and other incidentals used in packing the products. This margin, however, was
to apply only to a certain minimum yield from a ton of seed. Thus, for example, a
standard yield of products was worked out for a ton of cotton seed and a margin of
$13 was allowed on this yield. If, however, the product of a crusher happened to be
more than the standard yield, he was allowed to sell the excess without reference to
the fixed margin, "provided the price charged for said excess products shall not exceed
the average price for the other products in said yield."
The standard yields for a ton of seed fixed by the Food Administration were as follows :
Southern States east of the Mississippi River 43 gallons of oil, 960 pounds of meal,
140 pounds of lint, and 480 pounds of hulls; States west of the Mississippi River 38
gallons of oil, 1,000 pounds of meal, 150 pounds of lint, and 470 pounds of hulls.
2 One of the fundamental rules applied in the regulation of the distribution of food-
stuffs, as mentioned in previous pages, was that " licensees shall sell the commodities
specified in his license at not more than a reasonable advance over the actual cost * ' * *
without regard to the market or replacement value at tho time of sale." The whole-
sale price of cottonseed oil was controlled by a maximum margin of 12 to 15 per cent,
fixed on sales to retailers on June 15, 1918.
112 HISTORY OF PRICES DURING THE WAR.
the crushing mill, effective January 1, 1918. This price, it should
be noted, was about 2J cents above the average for the year 1917.
The agreed price may appear very high, but fats and oils were in
abnormal demand for war purposes, and it was believed that a high
price was necessary to encourage high-cost producers.
Control over the 1918 crop. With the advent of the new cotton
crop of 1918 it became apparent that a more thorough method of
price stabilization would be necessary. This opinion was held not
only by the cottonseed product manufacturers but also by members
of the live-stock industry who were feeling the effects of an un-
steady market for cottonseed meal. The cotton seed producers were
especially insistent that a more complete system of control be
adopted, and in September representatives of the industry recom-
mended that the Food Administration stabilize the price of cotton
seed at $70 per ton in carloads lots. This basic price was to apply to
cotton seed yielding 41 gallons of oil per ton, and variations were
to be allowed between a minium of $64 and a maximum of $74 in
proportion to the oil yielded. A differential, as in the previous year,
was fixed for the return to crushers. The allowance over cost, how-
ever, was increased over that for the 1917 crop and a maximum ad-
vance of $18.50 over the price paid for a ton of cotton seed was
allowed for the products made therefrom. Prices were also an-
nounced for cottonseed meal and cake, as well as for crude cotton-
seed oil. 1 The War Industries Board had already fixed the price of
linters; 2 and thus there was inaugurated a complete system of price
fixing extending from the farmer who raised cotton seed to the re-
tailer who disposed of the products.
The post-armistice situation. With the signing of the armistice
arose the problem of disposing of cottonseed products at the agreed
prices. Not only had large amounts of seed and oil accumulated in
certain localities, 3 but there was also a large amount of cheaper for-
eign oils competing in the American market with domestic cotton-
seed oil, and underselling it. 4
1 It appears that the refiners were somewhat hesitant as to agreeing to take the
output of the crushers at the suggested price of 17J cents per pound f. o. b. mills,
since they had no assurance against loss should the market for their product decline.
The Food Administration, however, promised to assist the refiners to maintain their
price throughout the year.
a See page 703 of the present volume.
3 In certain sections of the country when the cotton crop did well, accumulations
of seed and oil were so great as to cause many crushers to cease operations. This, of
course, reacted upon the ginner from whom the crusher received his seed, and so on
down the line to the farmer who raised the cotton. (Cf. chapter on " Cotton seed and
cottonseed products," by W. C. Mullendore, in the summary report of the United States
Food Administration.)
4 Because of the scarcity of fats and oils during the war period, the importation of
foreign vegetable oils was encouraged. Thus, our vegetable-oil imports in 1918, in spite
of the acute shipping situation, were 48 per cent larger than in 1917 and 114 per cent
GOVERNMENT CONTROL OVER PRICES. 113
*
Moreover, there was the linter difficulty with the War Industries
Board which threatened seriously the linter market. 1 The industry
was in a precarious condition, and it seeme'd as if there would be
little relief afforded from any quarter, when on February 11, 1919,
the Food Administration called together representatives of all
branches of the industry with a view to finding a solution. It was
the opinion of these representatives that the industry would be
greatly aided by the stimulation of exports, and they further recom-
mended that
Such orders as were received for lard substitutes through the Food Adminis-
tration or by the manufacturers should be manufactured from domestic cotton-
seed oil ; that crushers should use their best efforts to purchase seed from lo-
calities where the heaviest congestion of seed existed ; and that refiners should
purchase crude oil from crude mills where the heaviest congestion existed.
They further unanimously agreed that the stabilization plan of the Food Ad-
ministration should be carried out to its completion, notwithstanding the fact
that the armistice had changed the situation, and there was a fear of greater
disaster to the industry if the Food Administration should cease its efforts to
maintain the price while this congested condition existed.
The American Relief Administration, however, appeared on the
market with orders for large amounts of oil for European distribu-
tion, and the heavy exports 2 soon relieved the situation. The sudden
flow of oil to foreign countries, together with the rise in the price of
lard and the consequent increased demand for lard substitutes, ap-
pears to have brought the cottonseed industry back to normal. By
the end of May virtually all of the cotton seed of the 1918-19 crop
had been disposed of at the stabilized price. The major part of the
manufactured products had also been marketed on the basis of the
larger than in 1916. Compared to our imports for the 12 months immediately pre-
ceding the war they had increased 181 per cent.
United States imports of vegetable oils.*
Pounds.
1918 002, 000, 000
1917 - 616, 000, 000
Pounds.
1916 420, 000, 000
1913-14t 321, 000, 000
* Approximate figures based on data from Monthly Summaries of Foreign Commerce of
the United States Department of Commerce.
t Fiscal year ending June 30, 1914.
1F The War Industries Board had fixed the price of linters, as mentioned above, and
had arranged for the Ordnance Department to take over the entire linter crop. After
the signing of the armistice, however, the latter body wished to be relieved of their
obligation. A long controversy took place, which was followed by an agreement whereby
the War Department was to take all the linters produced up to an agreed date. (A more
detailed review of the linter situation will be found on page 304 of this volume.)
2 The increase in cottonseed oil exports in the early months of 1919 is well brought out
by the following table :
Exports of cottonseed oil from the United States.
Pounds.
December, 1918 11, 875, 368
January, 1919 26, 573, 309
125547 20 8
Pounds.
February, 1919 32, 042, 282
March, 1919 19, 669, 660
114
HISTORY OF PRICES DURING THE WAR.
agreed prices, and stocks were about equal to the average for May of
previous years. It was evident, therefore, that control of the cotton-
seed industry was no longer necessary, and on May 31, 1919, " all
price regulations and agreements regarding cotton seed and products
manufactured therefrom, including lard substitutes r were with-
drawn.
The effects of control, In December, 1917, when the first definite
price regulation was applied to the cottonseed industry, cottonseed
oil was selling for a price 180
per cent higher than its prewar
average, and approximately 100
per cent above that of commodi-
ties in general. Similarly, lard
substitutes were about 150 per
cent higher than in the prewar
year, and about TO per cent
above the general price level.
Whether the price stabilization
inaugurated by the Food Ad-
ministration prevented a further
increase, it is not within the
province of this study to deter-
mine. One fact should be re-
membered, however, that the
prices of cotton seed and its
products were not lowered
through governmental regula-
tion. They were only stabilized.
Indeed, it may be said that the
Food Administration indicated
its approval of the existing
prices of these commodities in
late 1917 and fixed them at the
then prevailing level.
The elimination of speculation
no doubt resulted in a very sub-
stantial benefit to the fanner, and reports to the Food Administra-
tion from seed dealers showed that the " farmer * * received
approximately $10 per ton more for his 1917-18 crop than he cus-
tomarily received." 1 Whether the fixed high price stimulated the
production of cotton seed or its products is doubtful, especially in the
light of the latest available data. The cottonseed production for the
year 1918-19 was approximately 5,360,000 tons, 2 a crop slightly larger
191G 1O1? | 1916
iOO
80
60
M
zc
$ 3 Si f 5 S 1. 5 a 5
RELATIVE: poice.3 or
- COTTON 5FXD
-c
LARD5UB5TI
)L.CRUDCCOTT
BY MONTI-!'.
JANUARY. lOli" DCCEM
JULY, 1*31 1'UUNE.I'*'
TUTC
IsJYJT
I
\ . S
BtP 1318
'
,-i
!',
^/"-
1912. 1 1314 1913
Cozpno
i 3 &
a
i
I
y
180
L
r
4
I
160
140
f
n
1ZO
JOO
I
g
A
L
rN
; t
iOO
ffi
%
^
60
f
H
^M
V
TTj
k a &
i k fa
i i i
i i i
\ \ &
1915
1914
1913
1O!6
1917
1010
Relative prices. Cotton sseed ; lard substi-
tute ; and Crude cottonseed oil. By
months, January, 1913, to December, 1018.
(Average quoted prices, July, 1913, to
June, 1914=100.)
1 W. C. Mullendore.
* Bureau of Crop Estimates, U. S. Department of Agriculture.
GOVERNMENT CONTROL OVER PRICES. 115
1 V
than that of 1918, but small when compared with the output of earlier
years. 1 And, further, the amount of seed crushed for the crop year
up to April 30, 1919, was but 4,083,900 tons, as compared with
3,955 5 329 tons for the same period in the preceding crop year, and
as against 4,167,527 2 tons for the corresponding time in the crop
year 1916-17.
CANNED AND DRIED FOODS.
Vegetables. It was not extraordinary that regulation of the can-
ning industry should have been provoked when profits of concerns
in various parts of the country showed an average increase from 9
to 32 per cent in a single year, 8 and when there was a pressing war-
time need for the essential foodstuffs which they produced.
Canned food prices by 1917 had risen far beyond the level of com-
modities in general. The large demands of the Army and Navy had
resulted, even before the creation of the Food Administration, in
the appointment of a war-service council of canners to take care of
the requirements of the various governmental bodies, and the can-
ners of peas, dried beans, tomatoes, corn, salmon, and sardines wero
included in the presidential license proclamation of October 8, 1917.
Accordingly, on the 1st of November, the greater part of the canning
industry went under license. 4
Steps were taken immediately to curb speculation, and the first
method considered was that almost universally applied, namely, the
prohibition of long-time contracts. But the customs and seasonal
character of the trade appear to have made the application of this
rule to the canning trade impracticable, and instead of limiting con-
tracts to the customary 60 days, as in other industries, licensed can-
ners were prevented from quoting prices on future sales before Feb-
ruary 1 of the year in which such products were to be canned. 5
1 See table on p. 110.
- Data from U. S. Bureau of Census, Department of Commerce.
3 The Federal Trade Commission's "Report on Canned Foods" (1918) in its chapter
on profits says, among other things :
" In 1916, 42 packers, representing invested capital amounting to $12,752,241.03,
showed net incomes aggregating $1,224,009.69. Thus, the return on investment of these
packers averaged 10 per cent. In 1917, 37 packers, representing invested capital amount-
ing to $12,224,210.68, showed net incomes aggregating $3,876,263.08. The average re-
turn for this year was 32 per cent. The average return on companies for which there
were both 1916 and 1917 statistics was 9 per cent in 1916 and 32 per cent in 1917."
4 The proclamation of Oct. 8, 1917, included only those packers whose output exceeded
5,000 cases per year. On Jan. 10, 1918, this amount was lowered to 500 cases per year,
thus virtually licensing the entire industry. On Feb. 28 manufacturers of tomato catsup
and other tomato products were added to the licensed list, while on .Tune 15 canned tuna
came under the control of the Food Administration.
5 Mr. W. C. Mullendore, in the summary report of the Food Administration, ibid., iu dis-
cussing the future contract situation as applied to the canning industry, says, in part :
" This industry is composed of thousands of small units and it does not require a large
concentration of capital. The produce to be canned must be obtained in its fresh state
direct from the grower, so that the radius of operation of the average canner is neces-
116 HISTORY OF PRICES DURING THE WAR.
No method of price regulation other than the " reasonable-advance-
over-cost" clause was applied to the canners at first. It was soon
found, however, that the enforcement of this rule presented endless
difficulties, for not only did the costs vary widely in different parts
of the country, but also in different plants in the same neighbor-
hood. Moreover, the character of the industry was such that the
raw materials used were but a minor factor in the total cost, and
hence it was impossible to determine a margin which could be added
over cost. 1 The first measure toward solving this problem was one
of averaging the cost of the season's pack. On January 28, 1918,
-regulations were amended so as to limit the selling price of canned
" goods manufactured and on hand to not more than a reasonable
advance over the average cost of the season's pack." This was but
a temporary palliative, however, for it was soon decided that an
efficient system of price control would require the fixing of a definite
" maximum margin in cents per dozen cans " over the cost of produc-
tion. This meant, of course, an analysis of the cost figures of each
individual plant, since the food law had been so drawn as to make
it impossible for the Food Administration to reach the grower.
However, the Federal Trade Commission had, in early 1918, com-
pleted a study of canning costs and from their conclusions it was pos-
sible to determine a reasonable profit, which could be used in deter-
mining the differential to be allowed the trade.
Thus the canners throughout the country were called upon to
submit cost estimates for their respective plants, and to these costs,
as checked up and approved by the Food Administration, were
added " maximum margins in cents per dozen cans " which were to
represent the differences between costs 2 and selling price. These
sarily small. In order to secure a supply for his plant the canner contracts with the
neighboring growers for the crop of a certain number of acres to be planted for the produc-
tion of a named commodity. Before the adoption of the Food Administration rule pro-
hibiting the making of these contracts before February 1 of the year in which the products
were to be canned, they were customarily made in the early winter. Having made his
contracts the canner buys his stock of cans, packing cases, machinery, labels, and such
supplies for his season's pack. Since many of the canners are men of small means, they
find it necessary to borrow most of the money for these purposes from the local banks.
Before loaning the money the banks often require the canner to assure himself of a
market by making contracts with responsible distributors for the sale of his commodity.
Practically, therefore, the canner's pack may be sold before the crops for the raw product
to be canned have been planted. The Food Administration recognized that this prac-
tice was the outgrowth of unalterable conditions in the industry and that it served as a
safeguard both for the farmers and for the canners. The usual Food Administration
rules prohibiting future contracts more than 60 days in advance were, therefore, not
applied to canners."
1 The tremendous divergencies in the costs of canning vegetables, for example, are
emphasized in a table showing the range for plants in the various parts of the country,
included in the Federal Trade Commission Report, ibid. The cost of packing corn ranged
from $0.65 to $1.40 per dozen cans ; tomatoes, from $0.60 to $1.15 ; and peas, from $0.60
to $1.45.
2 In contrast with the methods of price-fixing used for commodities other than food,
the following clause in the Food Administration regulations for canners is of interest :
" Cost shall not include income and excess-profits taxes ; interest on investments, inter-
est on long-term notes, or crop hazards."
GOVERNMENT CONTROL OVER PRICES. 117
margins varied from 15 cents to $1 per dozen cans, according to the
type and grade of the vegetables canned, 1 and were believed to pro-
vide a profit to canners large enough to encourage production. 2
Canned fisfi. The declining imports of sardines and the govern-
mental requirements for canned salmon 3 brought the 1917 price of
these types of fish above their prewar levels. These high prices were
of great significance to the Food Administration, especially in view
of the meat shortage, and immediate action w T as taken toward the
stablizing of prices.
Sardines: One of the earliest price agreements of the Food Ad-
ministration was made with the Maine canners of sardines in October,
1917, before the canning industry came under license. This agree-
ment called for a maximum price of $5.60 per case for one-quarter
oil canned sardines, and the pack of 1917 was disposed of at this
price. The increased costs of the following year, however, required
a revision of prices. Since the Food Administration in this case,
unlike that of vegetables, had the power to fix a price for the " raw
material " which made up the cost of the pack, it was decided to
determine a price for sardine herrings. The fishermen of Maine
were called together in April, 1918, therefore, and a price of $25
1 Differentials allowed were :
Corn (per dozen cans) : Cents.
No. 2 standard 19
No. 2 extra standard 22
No. 2 fancy 30
Tomatoes (per dozen cans) : Cents.
No. 2 standard 18
No. 2| standard 22
No. 3 standard 27
No. 3 fancy 31
No. 10 standard 90
No. 10 fancy 100
Peas (per dozen cans) :
No. 2 substandard, average all
sizes : 15
>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
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jSo
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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.<jh, corn oil, corn sirup, cleaned rice, rice flour,
oleomargarine, lard, lard substitutes, oleo oil, cooking fats, condensed milk, evaporated
milk, powdered milk, fresh, canned, or cured 'beef, pork or mutton, canned peas, canned
dried beans, canned tomatoes, canned corn, canned salmon, canned sardines, dried prunes,
dried apples, dried peaches, dried raisins, sugar, sirups, molasses, clarified sugar, planta-
tion washed sugar, open-kettle sugar, dried beans, dried peas, cotton seed, cottonseed oil,
cottonseed cake, cottonseed meal, peanut oil, soya-bean oil, palm oil, copra oil, peanut
meal, soya bean meal, and feeds of all kinds.
2 These rules may be found more in detail in " Directions for Guidance of Persons En-
gaged in Distributing Food Commodities at Retail," issued Mar. 25, 1918.
3 A full discussion of retail maximum* margins appeared earlier in the chapter under
" Policies of the Food Administrator."
4 A brief digest of the 15 resolutions drawn up on Oct. 17, 1917, by representatives of
the retail trade and recommending retailers to pledge themselves to the Food Administra-
tion rules follows: 1. Cooperation with Food Administration by retail trade whether
licensed or not. 2. Discontinuance of order solicitations during the war. 3. Limitation
of deliveries to 1 a day to any family or route. 4. Cooperative system of delivery. 5.
Selling of substitutes for flour and meat. 6. Urge sale of cheaper foods of good quality
recommended by the Conservation Division. 7. Practice economy and give " consumers
the lowest possible prices." 8. All retailers and retailers' associations should write their
promise of support to the Food Administration. 9. Solicitation of trade papers. 10.
Urge sale of potatoes. 11. Sale of foods by weight and for cash. 12. Sale of such foods
as prunes, corn meal, oat meal, rice, and hominy in bulk. 13. Push the sale of soup stock,
peas, rice, barley, fresh vegetables, and oysters. 14. Pledge to a reasonable living margin
of profit, " irrespective of the market conditions at the time of resale," and such profits
not to be greater than under prewar conditions. 15. The enlistment of all individual retail
grocers and associations of retail grocers.
GOVERNMENT CONTROL OVER PRICES. 137
ceived this notice from the wholesaler who furnished him with sup-
plies. The patriotism of the retailer was appealed to through the
press, traveling salesmen of wholesale grocers, boards of trade, re-
tail trade associations, and through conferences between local repre-
sentatives of the Food Administration ; and a national pledge cam-
paign resulted in the distribution of some 430,000 copies of the re-
tailers' pledge poster.
The consumers' reports. One of the most effective checks upon
so-called retail profiteering, and one which was begun soon after the
creation of the Food Administration and was continued to the end
of the war, was the confidential weekly reports of retail prices by
consumers. The Food Administration, by aid of the Comptroller of
the Currency, who sent out circular letters to the banks of the.
country, made up a list of reliable reporters throughout the country
who reported regularly prices which had been quoted in their com-
munity on one or the other of 28 staple commodities (wheat flour;
wheat bread: cornmeal, bulk; oatmeal, bulk; rice; steak, round;
bacon, sliced ; ham, sliced ; pork chops ; lard ; milk ; butter ; oleomar-
garine; cheese; eggs; sugar; potatoes; beans, navy; onions; prunes;
tomatoes; peas; corn; salmon; fish; hens, tea; coffee) without the
knowledge of the retailer that the quotations would be sent to the
Food Administration. 1 The first weekly reports, in the week of
October 6, 1917, were received from 839 reporters representing 798
towns and cities. On September 28, 1918, which marked the close
of a year of 52 weeks, the work had so increased that reports were
received from 1,871 reporters representing 1,305 towns and cities.
These reports, showing actual retail prices being paid by con-
sumers, were followed closely by the Food Administration and served
as signals to special investigations when the weekly chain index
showed an extraordinary rise over the week preceding, when there
appeared peculiar discrepancies in price between various cities or
States, when there was a wide variance with the prices on the " fair
price " list, when peculiarities appeared by comparisons with a list
of corresponding weekly retail prices in Canada which were sent by
the Canadian Food Administration, or when the weekly relative
prices (figured upon the base October, 1917, as equal to 100) showed
unusual rises away from the earlier level.
The " fair price " lists. It early occurred to the Food Administra-
tion that an especially effective control over retail prices could be
had through checking weekly retail prices " actually paid " by the
^consumer against those which he " should pay." The setting up of
the system of consumers' reports to watch retail prices " actually
1 These reporters were selected women of the town usually, such as the wives of minis-
ters, bankers, and professional men, and who took interest in helping the Food Adminis-
tration in its plan of checking retail prices.
138 HISTORY OF PRICES DURING THE WAR.
paid," as has been said, was put well under way by the fall of 1917,
but the full machinery for determining retail prices that consumers
"should pay" and the publication of those fair-price lists did not
become effective until nearly a year later. The whole undertaking
was a tremendous one because it proposed to announce each week
what prices were and what prices should have been for any one of
thirty-odd food staples at retail in the various markets throughout
the country.
The embryo of what developed into the final plan was started in
mid- fall of 1917 when all Federal food administrators were asked to
announce fair prices in a manner similar to that conceived originally
by the Illinois food administrator. 1 It meant simply an understand-
ing with the retail distributors by which they voluntarily agreed
upon a reasonable and fair margin for the sale of certain licensed
goods. The costs to the retailer and the prices to the consumer were
to be published. The published prices generally represented two
maxima, one for the retailer with high cost and the other for the re-
tailer with less service and lower cost.
But during 1918 there came a change in this informal method,
which started the organization of so-called interpreting boards in
every county of the country to determine fair prices. The county
food administrator was made chairman of his interpreting board
composed of representative wholesale grocers, retailers, and con-
sumers. These boards met in their respective localities and, by aid
of maximum margins furnished them by the Food Administration,
determined fair and reasonable retail prices. It was left to each
board simply to find the cost to the retailer, add the margins sent it
by the Food Administration, and publish the results as " fair prices."
Again there were two maximum prices published one for cash-and-
carry stores and one for credit-and-delivery stores. The Food Ad-
ministration grew more and more courageous in its dealing with the
retail problem and on November '7, 1918, published its list of maxi-
mum retail margins as mandatory rules and regulations to be used in
retail price interpretation. Gradually a particular man was made
responsible for this work in each State and 1,200 local committees
were appointed to meet at least once each week. These committees
determined prices applicable for their respective localities, upon the
basis of the new maximum margins allowable, and pushed vigorously
the publication of their " fair prices " thus .found. The " fair price "
lists when received by the Food Administration at Washington were
1 Tho Federal food administrator of Illinois, as oarly as October, 1017, sot forth a plan
in his State for retail control through the publication of fair prices. It provided that pub-
licity be given to the prices which the retailers were paying the wholesalers for a few
staple foods and corresponding fair retail selling prices. The fair selling prices were de-
termined upon the basis of cost to the retailer and in agreement with a committee of the
retail trade.
GOVERNMENT CONTROL OVER PRICES. 139
carefully compared with the prices shown on the consumers' reports
for those same localities.
The weekly reports of retail prices " actually paid," appearing
upon the consumers' reports, show variations so nearly like those
that the interpreting boards said the consumers " should pay," ap-
pearing upon the " fair price " lists, that, the Distribution Division
states, in its final report, "prices * * * had been stabilized to
such a degree that the difference in freight constituted practically the
only difference between average prices paid by the consumers in dif-
ferent parts of the country." That conclusion does not, of course, bear
upon the question whether the maximum margins set by the Food
Administration, and upon which " fair price " lists were built
throughout the country, were too low or too high.
It is well worth showing into what statistical form these thou-
sands of consumers' reports and " fair price " lists were put that
they might be made ready and useful checks, the one upon the other.
An analysis of a single one of these weekly confidential " fair price "
bulletins, perhaps, would give an adequate picture of the plan and
a measure of its real significance. The regular weekly bulletin for
the week ending just prior to the signing of the armistice, prepared
for limited distribution within the Food Administration, compares
30 odd retail prices which consumers "should pay" (represent-
ing "fair prices" sent in on 366 reports from 41 States) with cor-
responding retail prices " actually paid " (taken from 1,686 con-
sumers' reports). It states in summary:
This summary shows that, during the week's period from November 2 to
November 9, the aggregate cost of the 29 food staples decreased 0.9 cent, or
one-tenth of 1 per cent, according to " fair prices," and increased 3.3 cents,
or 0.4 per cent, as shown by our corps of volunteer reporters. The cost of
this group of foodstuffs on November 2, was $8.891 and on November 9, $8.882,
as published by the fair price committees; while according to prices actually
paid, the cost was $8.935 on November 2 and $8.968 on November 9. This
comparison shows that, on November 2, these combined staples cost the con-
sumer 4.4 cents more than the aggregate cost as reported by " fair prices,"
and on November 9, 8.6 cents more.
It would seem doubtful whether that generalization is as useful,
if as accurate, as some that may well be made from the comparative
tables of individual retail prices which consumers "should pay"
and which they " actually paid." The " fair prices " allowable in-
creased during the week on 14 items, decreased on 15 items, and
remained stationary on 6 items. The consumer-reporter prices in-
creased on 14 items, decreased on 14 items, and remained stationary
on 7 items. Curiously, while the "fair price" allowable for corn meal
(packages) was increased over the country 5.6 per cent during the
week, the consumer-reporter prices showed that the price actually
charged fell off 1.37 per cent. On the other hand, while the price
140
HISTORY OF PRICES DURING THE WAR.
allowable -for potatoes fell off 0.8 per cent, the price being charged
increased generally 2.2 per cent. These analyses, when supported
by their detailed comparisons by States, made graphic the week-to-
week discrepancies. A summary comparison follows of commodities
at retail, weighted according to population, showing averages of
prices that consumers " should pay " (known as " fair prices " and
calculated from margins by interpreting boards), with prices that
consumers "actually paid" (known as consumer-reporter prices)
within 41 States, for the week ended November 2, with those for
the week ended November 9, 1918.
A COMPARISON OF AVERAGE FAIR PRICES WITH CONSUMER-REPORTER PRICES
IN THE UNITED STATES FOR THE WEEK PRIOR TO THE SIGNING OF THE
ARMISTICE.
Commodities.
Unit.
Fair prices.
Consumer-reporter prices.
Week ended
Per cent
ofin-
crease(+)
or de-
crease( ).
Week ended
Per cent
ofin-
crease(+)
or de-
crease(-).
Nov. 2.
Nov. 9.
Nov. 2.
Nov. 9.
Wheat flour
jV barrel
$0.820
070
$0. 816
.070
-0.5
$0.831
.072
.149
.099
.077
.107
.066
.076
.081
.103
.139
.089
.495
.175
.191
.189
.238
.313
.075
.148
.142
.640
.395
.381
.605
.374
.571
.415
.519
.341
.291
.048
.166
.177
.157
$0. 828
.073
.148
.098
.076
.108
.065
.075
.080
.102
.139
.088
.506
.175
.191
.189
.237
.313
.C75
.150
.143
.645
.399
.382
.622
.373
.574
.413
.520
.339
.292
.047
.166
.178
.159
-0.4
+1.4
-0.7
-1.0
-1.3
+0.9
-1.5
-1.3
-1.2
-1.0
""-i.'i
+2.2
Do
Pound
Victory bread ....
24 ounces
.146
.099
.070
.109
.062
.071
.079
.103
.139
.086
.495
.181
.193
.195
.236
.317
.076
.156
.139
.645
.414
.386
.581
.385
.566
.409
.493
.345
.294
.043
.161
.171
.156
.146
.099
.071
.108
.061
.075
.080
.103
.139
.085
.491
.179
.196
.199
.235
.320
.079
.158
.137
.650
.417
.389
.597
.348
.563
.408
.499
.341
.291
.043
.159
.170
.160
Do
16 ounces
Barley flour
Pound
+1.4
-0.9
-1.6
+5.6
+1.3
Sugar
do
Corn meal bulk
do
Corn meal package
do
Oatmeal bulk
do
Oatmeal package
do
Rice
. do
Hominy or grits
do
-1.2
-0.8
-1.1
+ 1.5
+2.1
-0.4
+0.9
+3.9
+ 1.3
-1.4
+0.8
+0.7
+0.8
+2.7
-9.6
-0.5
-0.2
+ 1.2
-1.1
-1.0
Potatoes
Peck
Tomatoes
No 2 can
Peas
do
Corn
do
Salmon, tall pink
Salmon tall red
No. 1 can
do
-0.4
Evaporated milk
6-ounce can
Do
16-ounce can
+ 1.3
+0.7
+0.8
+ 1.0
+0.3
+2.8
-0.3
+0.5
-0.5
+0.2
-0.6
+0.3
-2.1
Milk
Quart
Butter
Pound
Cheese
do ......
do
Eggs fresh
Dozen
Steak round
Pound
Bacon, sliced
do
Pork chops
do
Ham sliced
do
Lard
...do
Lard substitutes
do
Onions
do
Beans white
. do
-1.2
-0.6
+2.6
Prunes
do
+0.6
+ 1.3
Raisins seeded
do
8.891
8.882
-0.1
8.935
8.968
+0.4
A comparison of retail prices. It is particularly interesting, by
reason especially of the various roundabout methods used, to know
how far the Food Administration got in its control over retail prices.
There are, of course, no data available to give a precise statistical
measure of the effect of the above controls upon retail prices. Of all
its regulations, those over the retailer were by necessity the most
GOVERNMENT CONTROL OVER PRICES.
141
nebulous. But from a study of the prices of commodities at retail
it is possible to see how they moved with respect to each other, and to
judge whether or not the more highly controlled foods showed greater
stabilization. That comparison makes obvious some generalizations
which are quite legitimate and striking.
A COMPARISON OF THE PRICES OF 28 COMMODITIES AT RETAIL FROM
OCTOBER, 1917, TO DECEMBER, 1918.
Wheat flour.
Wheat bread.
Corn meal,
bulk.
Oatmeal.
Rice.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Months:
1917_October
0.848
.834
.823
.821
100
98
97
97
96
97
97
97
98
98
99
99
98
97
97
99
97
97
98
97
$0. 108
.107
.103
.103
.102
.102
.100
.100
.100
.099
.099
.099
.099
.098
.098
.106
.102
.100
.099
.098
100
99
95
95
94
94
93
93
93
92
92
92
92
91
91
98
94
93
92
91
$0-068
.068
.068
.068
.068
.069
.069
.069
.066
.066
.066
.066
.066
.065
.063
.068
.068
.068
.066
.065
109
100
100
100
100
101
101
101
97
97
97
97
97
96
93
100
100
100
97
96
$0. 089
.088
.087
.088
.087
.088
.091
.032
.086
.085
.085
.085
.085
.081
.080
.088
.088
.090
.085
.082
100
99
98
99
98
99
102
103
97
96
96
96
96
91
90
99
99
101
96
92
$0. 110
.111
.112
.114
.116
.118
.119
.119
.124
.128
.133
.135
.138
.139
.138
.111
.116
.120
.131
.138
100
101
102
104
105
107
108
108
113
116
121
123
125
126
125
101
105
109
119
125
November
December
1918 January
February
.818
.825
.823
.824
.827
.831
.837
.837
.833
.826
.819
.836
.821
.824
.835
.826
March...
April
May.:::::.::::::::::
June ...
July
August.
September
October
November
December
Quarters:
1917 Fourth
1918 First
Second
Third
Fourth
Steak, round.
Bacon, sliced.
Ham, sliced.
Pork chops.
Lard.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Months:
1917 October
SO. 293
.289
.289
.294
.299
.304
.323
.350
.375
.376
.376
.381
.379
.373
.372
.291
.299
.349
.378
.375
100
99
99
100
102
104
110
119
128
128
128
130
129
127
127
99
102
119
129
128
$0.472
.480
.485
.490
.491
.483
.491
.497
.509
.514
.527
.544
.505
.574
.581
.478
.488
.499
.527
.573
100
102
103
104
104
102
104
105
108
109
112
115
120
122
123
101
103
106
112
121
$0.404
.406
.410
.415
.419
.419
.428
.437
.460
.469
.483
.502
.515
.518
.527
.406
.417
.441
.483
.520
100
100
101
103
104
104
106
108
114
116
120
124
127
128
130
100
103
109
120
129
$0.369
.351
.346
.347
.343
.341
.349
.358
.368
.373
. .394
.421
.429
.413
.404
.356
.344
.358
.394
.415
100
95
94
94
93
92
95
97
100
101
107
114
116
112
109
96
93
97
107
112
$0.312
.325
.332
.332
.333
.332
.333
.332
.329
.328
.331
.335
.340
.340
.340
.322
.332
.331
.331
.340
100
104
106
106
107
106
107
106
105
105
106
107
109
109
109
103
106
106
106
109
November.
December
1918 January
February
March
April.
Mav
June
July
August
September
October
November
December
Quarters:
1917 Fourth
1918First
Second. . .
Third
Fourth
The Food Administration really did not get started upon its con-
trol over retail prices until after October, 1917. There have been put
into statistical form, therefore, the retail prices " actually paid " by
over 1,000 consumers at various markets throughout the country,
142
HISTORY OF PRICES DURING THE WAK.
from October, 1917, to December, 1918. The accompanying tables
show the movement of actual prices from October 28 of the most im-
portant food staples at retail. The comparison is expedited by the
presentation, alongside the actual prices, of relative prices figured
with the October, 1917, actual price taken as a base equal to 100.
Milk.
15 utter.
Oleomar-
garine.
Cheese.
GggS.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
Months:
1917 October
$0.118
.123
.126
.127
.127
.128
.127
.127
.126
.127
.129
.132
.139
.144
.146
.122
.127
.127
.129
.143
100
104
107
108
108
108
108
108
107
108
109
112
118
122
124
103
108
108
109
121
$0.510
.511
.527
.547
.557
.533
.503
.500
.502
.515
.531
.579
.636
.650
.696
.516
.546
.501
.540
.661
100
100
103
107
109
105
99
98
98
101
104
114
125
127
136
101
107
98
106
130
SO. 343
.349
.353
.356
.358
.351
.352
.351
.350
.352
.354
.361
.374
.382
.386
.348
.355
.351
.355
.381
100
102
103
104
104
102
103
102
102
103
103
105
109
111
113
101
103
102
103
111
SO. 350
.347
.352
.352
.356
.353
.349
.346
.341
.342
.349
.360
.382
.401
.420
.350
.354
.345
.350
.401
100
99
101
101
102
101
100
99
97
98
100
103
109
115
120
100
101
99
100
115
$0.493
.527
.561
.009
.554
.397
.383
.384
.391
.430
.467
,510
.501
.634
.706
.524
".527
.386
.466
.634
100
107
114
124
112
81
78
78
79
87
95
103
114
129
14J
106
107
78
95
129
November
December
1918 January
February .
March
April. .
May
June
July
August
September
October
November
December
Quarters:
1917 Fourth
1918 First
Second
Third .
Fourth
Sugar.
Potatoes.
Beans, navy.
Onions.
Prunes.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
Ac-
tual.
Rel-
ative.
100
100
102
104
104
96
88
98
108
112
112
108
98
92
88
100
102
98
110
92
Ac-
tual.
Rel-
ative.
Months:
1917 October
SO. 098
.099
,098
.097
.096
.094
.093
.093
.093
.094
.095
.099
.106
.108
.109
.099
.1)96
.093
.096
.108
100
101
100
99
98
96
95
95
95
96
97
101
108
110
111
101
98
95
98
110
$0.434
.449
.441
.444
.436
.392
.336
.322
.456
.595
.567
.575
.537
.496
.481
.440
.426
.332
.580
.505
100
103
102
102
100
90
77
74
105
137
131
132
124
114
111
101
98
77
134
116
$0. 188
.185
.184
.184
.180
.182
.180
.178
.176
.173
.173
.171
.168
.164
.159
.186
.182
.178
.172
.164
1GO
98
98
98
96
97
98
95
94
92
92
91
87
85
99
97
95
91
87
$0.051
.051
.052
.053
.053
.049
.045
.050
.055
.057
.057
.055
.050
.047
.045
.051
.052
.050
.056
.047
$0.173
.172
.170
.170
.169
.169
.169
.169
.164
.165
.168
.171
.175
.177
.179
.172
.169
.168
.168
.177
100
99
98
98
98
98
98
98
95
95
97
99
101
102
103
99
98
97
97
102
November
December...
1918 January
February. .
March
April. .
May
June
July
August
September
October
November
December
Quarters:
1917 Fourth
1918 First
Second...
Third
Fourth
The eye is caught at once by the striking differences in the move-
ment of the cereals, which were highly controlled, and the meats,
which were not highly controlled. The prices of wheat flour, wheat
bread, corn meal in bulk, and oatmeal in bulk hold strikingly near,
or even below, their level at the time retail control set in. The
GOVERNMENT CONTROL OVER PRICES.
143
prices of round steak, sliced bacon, sliced ham, and pork chops,
on the other hand, all show marked rises during the same period.
Beans, which were highly controlled, receded from their earlier
level. Sugar, which was highly controlled from the outset, main-
Tomatoes.
Peas.
Corn.
Salmon.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Months
1917 October
SO. 168
.165
. 161
.162
.163
.165
.166
.167
.163
.166
.169
.172
.175
.176
.178
. 165
.183
.165
.169
.176
100
98
96
96
97
98
99
99
97
99
101
102
104
105
106
98
97
98
101
105
$0. 177
.176
.175
.177
.177
.175
.178
.178
.177
.178
.181
.185
.189
.191
.193
.176
.177
.177
.181
.191
100
99
99
100
100
99
101
101
100
101
102
105
107
108
109
99
100
100
102
108
$0. 177
.173
.171
.171
.171
.170
.172
.173
.172
.174
.177
.181
.186
.189
.189
.174
.171
.172
.177
.188
100
98
97
97
97
96
97
98
97
98
100
102
105
107
107
98
97
97
100
106
$0. 271
.271
.274
.275
.277
.272
.274
.277
.293
.298
.301
.305
.310
.314
.317
.272
.274
.281
.301
.314
100
100
101
101
102
100
101
102
108
110
111
113
114
116
117
100
101
104
111
116
November
December
February
March..."
April ...
May
June
July
August
September
October
November
December
Quarters
1917 Fourth
1918 First
Second
Third
Fourth...
Fish.
liens.
Tea.
Coffee.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
Actual.
Rela-
tive.
100
100
100
101
100
96
96
96
91
89
89
89
90
91
94
100
99
94
89
91
Months
1917 October
SO. 231
.234
.242
.257
.261
.257
.252
.244
.241
.249
.249
.255
.255
.256
.261
.235
.258
.2-46
.251
.257
100
101
105
111
113
111
109
106
104
108
108
110
110
111
113
102
112
106
109
111
$0.284
.279
.283
.298
.323
.342
.350
.341
.340
.343
.349
.351
.353
.353
.352
.282
.319
.344
.347
.353
100
98
100
105
114
120
123
120
120
121
123
124
124
124
124
99
112
121
122
124
$0.617
.618
.629
.627
.631
.621
.625
.630
.622
.625
.630
.636
.646
.653
.653
.621
.626
.626
.630
.651
100
100
102
102
102
101
101
102
101
101
102
103
105
106
106
101
101
101
102
106
$0.318
.317
.319
.320
.319
.306
.305
.305
.288
.284
.284
.284
.285
.288
.298
.318
.315
.300
.284
.290
November
December
1918 Januarv
February
March
April
May
June
July
August
September
October
November
December
Quarters
1917 Fourth
1918 First
Second
Third
Fourth
The above sories of retail prices are averaees of prices "actually paid " by. consumers, made from confi-
dential reports to the United States Food Administration by from 839 to 2~,076 consumer-reporters, repre-
senting from 798 to 1,429 cities and towns of the country.
tained its early level strictly until the fall of 1918. The highly
controlled canned goods, tomatoes, peas, and corn, held closely to
their October, 1917, levels. But, on the other hand, rice, the dairy
products (milk, butter, cheese), and eggs moved in varying de-
grees away from their respective bases. It remains for each to in-
144
HISTORY OF PRICES DURING THE WAR.
terpret the movement of these retail prices as he will. But it seems
distinctly clear that the highly controlled retail commodities, in the
main, showed a considerable stabilization in price control after
October, 1917.
Retail prices in United States and Canada. A regular check was
kept, too, of the comparative movements of these 28> 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; (<?) average cost methods prices fixed on the average
cost in each district ; and, (d) pooling methods all coal sold at the
average cost of each district plus a profit, and the returns to each
colliery adjusted through a clearing house .at a price proportioned
to its cost of production. 3
1 These prices, though perhaps made upon a belter body of fact than were a majority
of prices fixed, were based on average figures of approximately 100,000,000 tons' produc-
tion, prepared by the Federal Trade Commission. They were relatively meager data, com-
prising generally costs from the larger and lower-cost operators of each district.
2 In January, 1918, Mr. Garfield appointed three mining engineers, Mr. Cyrus Garnsey,
jr., Mr. R. V. Norris, and Mr. J. H. Allport, to constitute the engineers' committee of the
Fuel Administration. They were men of scientific training and considerable practical
experience. The committee was not authorized itself to fix prices of coal, but to study and
report upon methods of price fixing and to present the Fuel Administrator with compre-
hensive cost data.
3 Mr. Cyrus Garnsey, jr., Mr. R. V. Norris, and Mr. J. II. Allport, in Publication No.
29, of the Fuel Administration, issued September 20, 1918, outline the following ad-
vantages and disadvantages of each of these methods :
1. Straight cost-plus method Advantages. (a) All producers would receive the same
profit, and no one would have an advantage over another in this respect. (6) Apparently
simple in plan and execution.
Disadvantages. Impracticable of application, by reason of: (a) Resultant multiplicity
of prices, with grave disturbance of markets. (&) Continual changing of prices due to
inevitable variations in each producer's costs, (c) Instability of the industry, due to
the natural disposition of consumers to purchase the lowest-price coal, (d) Inefficiency
in operation always resulting from lack of incentive in cost-plus operations, (c) Mate-
rial reduction in output and reduction in quality, due to the natural tendency to mine
the poorer and more expensive coal with a guaranteed profit, and to leave the better
and cheaper coal in reserve to be mined on the return of normal conditions. (f) Con-
tinual increase in all costs incident to extravagant methods encouraged by guaranteed
GOVERNMENT CONTROL OVER PRICES. 181
It seemed to the engineers' committee that they must find a system
of price fixing which would meet especially these requirements :
1. A price fair to the public.
2. Prevent excessive prices or profiteering.
3. Prevent a multiplicity of prices in any district.
4. Encourage legitimate production.
5. Discourage production from inefficient and unduly costly opera-
tions.
profits. (g) Labor unrest and constant demands for increases due to the knowledge
of a guaranteed profit regardless of cost. (h) Practical impossibility of arriving with
technical accuracy at the costs of each separate operation, (f) Impracticability of the
Government's policing the mines and securing the same efficient operation and pro-
duction attained by the individual producer under the stimulus of increased profits.
(j) Illogical, in that the better planned and managed operations are discouraged, as
compared with poor and inefficiently managed properties.
2. Modified cost-plus method. This is but a modification of the preceding, and the same
discussion applies, modified only by the inclusion of a somewhat greater incentive to
the better and more economical operations.
3. Average cost methods Advantages. A minimum uniform price for each district or,
if desired, for the entire country. Disadvantages. (a) The average cost is necessarily
less than the cost of about half the total tonnage. Hence, a reasonable profit put on
the average cost would not produce the necessary tonnage. (&) The tonnage below and
up to the average cost is actually produced by less than 30 per cent of the operators of
the country. Hence, the great majority of the operators producing at above average cost
would be put out of business by a price based on the average.
4. Pooling methods. Pooling may be done on either cost-plus, modified cost-plus, or
on the prices established by the United States Fuel Administration. Advantages. (a) A
uniform price to consumers for sections and, if desired, for the entire country. (6) A
present lower price to consumers based on weighted average cost, (c) A simplification of
all present pooling arrangements, as all coal to each pool would have, or could be ar-
ranged to have, the same price, (d) A return to the consideration of quality instead of
cost, as, with all coal at the same price to consumers, the higher qualities would naturally
be preferred. Disadvantages of pooling cost-phis or modified cost-plus methods. (a)
Continual variation in pool prices, due to inevitable variations in producers' costs. (6)
Unfair and illogical, in that the better located and managed operations are made to pay
tribute to the poor and badly managed one?, (c) A general and considerable increase in
cost inevitably resulting from any method involving guaranteed profits with a disregard
of economy, (d) A material reduction in output, due to lack of incentive and resulting
inefficient methods, the employment of unnecessary labor, the mining of the more ex-
pensive and less desirable qualities of coal for the ultimate benefit of the mines, and the
execution of development not immediately needed, (e) A slackening of the efforts of em-
ployees, which is the usual result of a lack of incentive to the producer, with the re-
sulting lack of interest, (f) Tfie installation of an unsound policy tending to encourage
the inefficient and discourage the efficient producer, (g) The ever-present temptation
to allow costs to increase with the hope of readjustment of prices, (h) Dissatisfaction
to both labor and to producers from the knowledge that other and less efficient operations
have higher limits of price. The disadvantage of pooling on the prices fixed by the
United States Fuel Administration are the same as suggested above, without some of the
special disadvantages of cost-plus methods. Disadvantage of pooling in general. (a) A.
very large capital required to handle such stupendous operations, (b) Enormous and
extended credits required to finance the producers, (c) Lack of organization to handle
this new business. (d) Undesirability of creating an organization with its army
of additional employees at the present time, (c) Inadvisability of putting a new and
untried plan into operation at the present time, (f) Impossibility of obtaining, with
sufficient promptness., the costs necessary to fix pooling prices with the necessary ac-
curacy, (g) Interference with present established methods of handling coal, with
serious risk of crippling its distribution and unnecessarily creating a shortage.
None of these suggested methods seemed to fill the peculiar conditions incident to
price-fixing of coal at the mines, and it devolved upon the engineers' committee to de-
velop some method better suited to the conditions of the problem.
182 HISTORY OF PRICES DURING THE AVAR.
G. Insure to the producer " the cost of production, including the
expense of operation, maintenance, depreciation, and depletion, with
a just and reasonable profit," as required by the Lever Act.
The committee determined finally that it could best attain these
ends by finding the bulk line of production, and allowing the Fuel
Administrator personally to add whatever margin in his judgment
each district required. Costs, accordingly, were obtained from the
Federal Trade Commission as filed by each operator in the country,
and were studied by the committee, listed and adjusted 1 for price
fixing. These data, together with the percentages of each cost in the
total production of each district, were plotted to show graphically the
range and extent of variation in each district. Then, upon these
diagrams, was drawn the bulk line, showing the indispensable ton-
nage required from that district. 2
When the committee set about its inquiry early in 1918, it had
costs for the production of coal in the United States during August
and September, 1917. These data, together with later reports, were
generally used as a basis of costs. 3
BUummous costs. The committee, confronted with a confusing
mass of cost figures representing 95 per cent of the bituminous pro-
duction of the country, evolved a scheme of unique graphic pre-
sentation which made comparisons simple. It made for each coal
1 Many, especially of the small operators, were inexperienced in bookkeeping, and sub-
mitted cost sheets which, while accurate in totajs, were grievously mixed in details.
The most common of the cost adjustments which were made .pertained to supplies, re-
serves, salaries, special charges, outside profits, and fuel charges for colliery power.
These adjustments of the Federal Trade Commission cost figures were made simply to put
all costs on the same basis.
2 Since the " bulk line " of production, adopted by the Fuel Administration, came so
prominently into the consideration also of- the price-fixing committee, it is of especial
interest to note the following frank outline of its merits and demerits by the engineers'
committee, who recommended it to the Fuel Administration.
Advantages of the " Imlk line " system. The method of fixing prices by the "bulk line"
principle recognizes the economic syllogism that " the price of any article necessary to a
community will be fixed by tho cost of producing that necessary portion of such article
involving the greatest expense." fa) This assures to all producers profits dependent
upon their ability and exertions, only limited by the establishment of a reasonable price
to the- consumer. (*>) 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.
(<i) Agricultural tractors.
Automotive products, meaning :
(a) Motors, truck, tractor, aeroplane.
(6) Transmissions.
218 HISTORY OF PRICES DURING THE WAR.
PRIORITIES.
Little control would, indeed, have been exercised over industry
in this country had the War Industries Board simply gathered in,
Automotive products, meaning Continued.
(c) Axles.
(d) Springs.
(e) Forgings.
(/) Tires, solid.
(g) Rims, pressed on.
(7i) Motor-cycle rims.
(i) Pneumatic tires.
(;) Steel wheels.
(k) Magnetos.
(I) Spark plugs.
(m) Valves.
(n) Cam shafts, finished and rough.
(o) Crank shafts, finished and rough.
(p) Trucks.
(g) Military tractors.
(r) Motor cycles.
(s) Trailers.
(t) Storage batteries.
(u) Ball and roller bearings.
(v) Steel castings for motor cars.
(u;) Drive and link belt chains.
(<c) Radiators.
(y) Babbitt-lined bearings.
(z) Frames.
(aa) Truck bodies for motor chassis.
(66) Sets of spare parts for automotive vehicles.
Brass and copper rods, tubing, and sheets.
Chains (all chains other than automotive drive and link belt).
Chemicals.
Cordage, hemps, and fibers, including
(0) Jute.
(6) Manila.
(c) Kapok mattresses, pillows, pads, and life garments.
(d) Coir yarns.
(e) Manila rope.
(f) Sisal rope.
(fir) Cocoa mats and cocoa matting.
(h) Linoleum.
(1) Oakum.
(;) Burlap.
Cork.
Cotton linters.
Cotton goods.
Cranes
(0) Locomotive.
(6) Electric traveling.
(c) Gantry.
(d) Shipyard.
(e) Buckets (grab buckets).
(/) Hoists.
(fir) Portable electric.
(h) Electric monorail
(1) Wrecking.
(;) Track pile drivers.
Cylinders and containers (pressure).
Drawing instruments.
Electric equipment
(a) Generators.
(&) Turbines.
GOVERNMENT CONTROL OVER PRICES. 219
for analysis, a record of all Government requirements and cleared
all prospective purchases. Such a record would mean only that
Electric equipment Continued.
(c) Condensers.
(d) Pumps.
(e) Compressors.
(f) Transformers.
(fir) Current breakers.
(ft) Oil switches.
(i) Lightning arresters.
(;) Motors, special, machine tool, and adjustable speed, direct-current, and crane.
(fc) Electrical supplies.
Electric wire ana cable.
Explosives and components thereof.
Felts.
Fire prevention apparatus
(a) Hand fire extinguishers.
(6) Fire hose.
Forging and machining for guns, projectiles, or shafts.
Hardware, mill, plumbers', and heating supplies.
Hides and skins.
Iron and steel, of which the following are allocated through the director of steel :
(a) Bands.
(6) Billets.
(c) Blooms.
(d) Boiler tubes.
(e) Cold-rolled steel.
(f) Hoops.
(g) Ingots.
(h) Merchant bars.
(i) Pig iron.
U) Pipe.
(k) Plates.
(I) Rails and accessories.
(m) Rods.
(n) Seamless tubing.
(0) Shapes.
(p) Sheets.
(q) Sheet bars.
(r) Sheet steel.
(s) Skelp.
(t) Slabs.
(u) Tin plate.
(v) Wire and wire products,
(w) Wire rope.
Knit goods.
Leather and leather goods.
Linen and linen thread.
Lumber.
Machine guns and accessories (cleared through Ordnance Department, United States
Army).
Metal-working machinery, including tools, forge-shop machinery, and plate-working
machinery.
Mica (cleared thorugh Bureau of Supplies and Accounts, United. States Navy).
Needles.
Nonferrous metals :
(a) Aluminum.
(1) Antimony.
(c) Copper.
(d) Lead.
(e) Zinc.
(f) Mercury (cleared through Bureau of Supplies and Accounts).
(g) Nickel.
(h) Tin.
220 HISTORY OF PRICES DURING THE WAR.
the Government knew what commodities it would need, and had
coordinated all of its purchases. But it did not follow, of course,
that the whole or any of industry would nicely adjust itself so as
to produce or to deliver commodities in precisely the order which
these Government requirements demanded. One of the most vital
of all the War Industries Board controls came by reason of its
power to tell the industry of the country what orders should have
priority in production and what in delivery. It meant, in a word,
that the War Industries Board, through thousands of decisions,
must decide the relative importance of services and of commodities
for war purposes. The determination of those priorities arose in
all manner of ways between the various departments of the Govern-
ment; the Allies; the Government and the Allies; the Government
and individuals; the Allies and individuals; and as between par-
ticular individuals. 1 The details involved in the administration" of
priorities control are deserving of especial and technical study be-
cause they form the basis of almost all the war-industry controls and
bear peculiarly upon prices.
The beginnings of control through the issuance of priorities ex-
tended back to the authorization of a priority subcommittee by the
General Munitions Board on May 3, 1917. The director of the
Council of National Defense briefly and pointedly defined the func-
tions of priority by declaring that the committee-
shall exercise full power in the determination of priority of delivery of ma-
terials and finished products whenever there is a conflict in delivery in accord-
ance with the general policy of the Government. It is further understood
Oil:
Castor oil (cleared through Signal Corps, United States Army).
Linseed oil.
Optical glass and optical instruments.
Paper, 100 per cent sulphate, Kraft.
Paper and paper pulp.
Power equipment.
Railway equipment.
Rubber.
Rubber goods.
Silk noil and silk cartridge cloth.
Small arms (small-arms ammunition) cleared through Ordnance Department, United
States Army.
Small tools.
Tobacco.
Typewriters.
Wool.
Woolen goods.
1 It would be amiss to omit the precise wording by which the priorities committee
of the War Industries Board later defined, over and again, the purpose of priorities and
the method of determining, them : The paramount purpose of priorities is the selective
mobilization of the products of the soil, the mines, and the factories for direct and in-
direct war needs in such a way as will most effectually contribute toward winning the
war. In requesting priority the petitioner should join with the committee in applying
the test: To what extent, if at all, will the granting of this application contribute,
directly or- indirectly, toward winning the war; and if at all, how urgent is the need.
GOVERNMENT CONTROL OVER PRICES. 221
that at present the priority committee of the General Munitions Board has
no power in regard to the determination of priority in regard to civilian needs
in which the Army and Navy requirements are not involved. It is further
understood that as between the needs of our Allies and our civilian popula-
tion, the priority committee of the General Munitions Board for the present
has no authority to act. In this connection, however, the priority committee
should keep full information as to such cases or instances as come to its
attention, in order that plans may further be developed for properly handling
the matter.
That early committee, though not given all powers which were
later granted, was forced upon the General Munitions Board by
reason of the quantities of requests from manufacturers and con-
tractors doing Government work asking which orders should be
filled first. Before mid -summer the new committee was receiving
from 50 to 75 appeals a day for preference policies. But the real
work of control through priorities began early in the fall of 1917,
after the creation of the War Industries Board, and with the ap-
pointment of Judge Robert S. Lovett to priority supervision. 1
Authority for priority control. Congress seems to have author-
ized control of industry through the issuance of priorities more
specifically than any of the other controls exercised by the War
Industries Board. The act of August 29, 1916, said:
That a Council of National Defense is hereby established for the coordination
of industries and resources for the national security and welfare. It shall
be the duty of the Council of National Defense to supervise and direct inves-
tigations and make recommendations to the President and the heads of execu-
tive departments 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 coordination of military, industrial, and
commercial purposes in the location of extensive highways and branch lines
of railroad; the utilization of waterways; the mobilization of military and
naval resources for defense; 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 development of sea-going transportation ;
data as to amounts, location, method and means of production, and availability
of military supplies ; the giving of information 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.
That legislative authorization, the agreement between the more
important Government departments, 2 the various resolutions of the
1 Judge Edwin B. Parker, by appointment from the priorities commissioner Judge Robert
S. Lovett, was put in active charge of the organization of the new committee on Aug.
23, 1917. After Mar. 4, 1918, Judge Parker succeeded Judge Lovett as priorities com-
missioner and chairman of the priorities committee.
2 The President, the Secretary of War, the Secretary of Navy, the chairman of the
United States Shipping Board, and the president of the United States Shipping Board
Emergency Fleet Corporation agreed to confer upon Judge Lovett, and through him,
the priorities committee, such powers of priority as lay within their legal right. The
important priority circulars were signed by each of these officials except the President.
222 HISTORY OF PRICES DURING THE WAR.
Council of National Defense, 1 and the President's letter of March 4,
1918, declaring that one of the six functions of the War Industries
Board should be
the determination, wherever necessary, of priorities of production and of deliv-
ery and of the proportions of any given agencies when the supply of that article
is insufficient, either temporarily or permanently,
gave an abundance of war-time authority for the exercise of wide
priority powers.
The priority circulars. The consideration of 211,430 applica-
tions 2 for priority in production or delivery, made by agencies hav-
ing war needs, was a highly complicated and technical business. The
priorities committee set about that task in a thoroughgoing manner
when it issued priority circular No. 1 on September 21, 1917, giving
general directions as to priority and outlining the method of apply-
ing for priority assistance. That and subsequent circulars attempted
to classify and rate orders in accordance with their relative need for
war and national purposes. 3 The first circular required that 1 a rating
of orders be made only by persons producing iron and steel or their
products. The classes of producers required to observe priority
rating in the fulfillment of their contract orders were extended grad-
ually from that beginning until on July 1, 1918, the well-known cir-
cular No. 4 was issued stating that
during the war in which the United States is now engaged all individuals,
firms, associations, and corporations engaged in the production of raw materials
and manufactured products (save foods, feeds, and fuels) are requested to
observe regulations respecting priority. 4
The War Industries Board came then into priority control over
virtually the whole industry (not already controlled by the Food
Administration and Fuel Administration) of the country.
The method of rating. The priorities committee, in order that
purchasers and producers might know what priority to follow, di-
*Note especially the resolution of Sept. 25, 1917, assigning the priorities activities
of the War Industries Board of the Council of National Defense to Judge Lovett.
2 A large number of applications for priority assistance were handled prior to Sept.
21, 1917, the date when the use of formal application blanks and formal certificates
was begun. The first priority certificate issued was dated Sept. 25, 1917. Since that
date 211,430 applications have been received; 191,966 priority certificates have been
issued, of which, however, 8,448 were reissued certificates with amended ratings ; 27,912
declinations and withdrawals of applications were issued. The highest number of ap-
plications received and numbered in one day was 1,901 on July 8, 1918. The highest
number of certificates issued in one day was 2,121 on Sept. 30, 1918. Weekly reports
of applications received and certificates issued are to be found in the weekly " Office
Review."
3 In order to get the system satisfactorily started all orders which had been placed
prior to Sept. 21, 1917, by or on behalf of the War Department, the Navy Department,
or the United States Shipping Board Emergency Fleet Corporation were automatically
rated as class A-l unless otherwise directed ; and, likewise, all orders for military sup-
plies and equipment placed by or for the Allies as class A-2.
4 There were in all issued 60 separate priority circulars from Sept. 21, 1917, to Dec.
20, 1918, extending the control over priorities. Circular No. 60, issued on the latter
date, revoked as of Jan. 1, 1919, all rules, regulations, and directions of every nature
issued by the priorities division.
GOVERNMENT CONTROL OVER PRICES. 223
vided all orders and work into five general classes: Class AA, class
A, class B, class C, and class D, with subdivisions of class AA, class
A, and class B, indicated by suffix number, thus: Class AA-1, class
AA-2, etc.; class A-l, class A-2, etc.; class B-l, class B-2, etc. 1
Orders and work in class AA took precedence of orders and work in
all other classes ; those in class A took precedence of those in classes
B, C, and D ; those in class B took precedence of those in classes C
and D; those in class C took precedence of those in class D; all
irrespective of the dates the orders were placed. The classification
of an order meant that it should be given such precedence over
orders of a lower classification as were necessary (and only such as
were necessary) to insure delivery on the date specified in the order.
It did not mean that work should cease on orders of a lower classi-
fication, or that the order should be completed and delivery made in
advance of orders taking a lower classification if this was not neces-
sary to effect delivery within the time specified. Any person or
agent, entitled to preferential treatment under the policies of the
priorities committee, ordinarily made application to the committee
for an order running against a manufacturer or distributor and call-
ing for delivery by a certain date. The priorities committee, if im-
pressed after a consideration of the claim, assigned one or the other
of the above ratings to the order and issued a certificate. This cer-
tificate was issued to the applicant direct, unless otherwise requested,
and not to the person against whom it ran. The applicant then
presented his certificate to the person against whom it ran, and the
latter arranged his production program to give delivery to that pri-
ority order in its relative turn with respect to other priority orders.
Automatic rating. It was soon found that certain classes of
orders so obviously deserved preference, that a priority rating could
be assigned automatically. A scheme of automatic classifications
was set up accordingly, on July 1, 1918, 2 which made unnecessary
any application for certain written priority certificates, or any refer-
1 Class AA comprised only emergency war work of an exceptional and urgent nature.
Class A comprised all other war work ; that is to say, orders and work necessary
to carry on the war, such as arms, ammunitions, destroyers, submarines, battleships,
transports, merchant ships, and other water craft, airplanes, locomotives.
Class B comprised orders and work which, while not primarily designed for the prosecu-
tion of the war, yet were of public interest and essential to the national welfare or other-
wise of exceptional importance.
Class C comprised all orders and work not covered by priority certificates issued by
the priorities committee or not taking an automatic rating, which orders and work were
to be utilized in furtherance of one or jnore of the purposes embraced within the " General
classification of purposes demanding preference treatment " promulgated by the pri-
orities board, or which orders and work were placed by or utilized in connection with
an industry or plant appearing on preference list No. 1. No class C certificates were
issued.
Class D comprised all orders and work not embraced in class AA, class A, class B,
or class C, and no certificates were issued therefor.
2 See sees. 7, 8, 9 of priority circular No. 4.
224 HISTORY OF PEICES DURING THE WAR.
ence to the priorities committee. The applicant simply attached to
his order an affidavit in prescribed form setting forth the facts es-
sential to automatic rating, and the war uses for which materials
were needed.
The new scheme gave no automatic rating higher than A-4, thus
leaving the ratings of AA, AA-1, AA-2, etc., A-l, A-2, A-3 to
be given only by specific action of the Priorities Committee. All
orders by the War Department, the Navy Department, or the Emer-
gency Fleet Corporation, falling within class A were automatically
rated A-5 upon their proper signature to the following statement :
Unless rerated by express order in writing by the Priorities Committee of
the War Industries Board, this order is by authority of said Priorities Com-
mittee rated as class A-5, and its execution shall take precedence over all your
orders and work of a lower classification to the extent necessary to insure
delivery according to the date specified herein, as prescribed by Circular No. 4,
issued by the priorities division of the War Industries Board, of date July 1,
1918, and all amendments thereto.
There was set forth a series of automatic ratings covering all
priorities below A^t, which gave the applicant, when an affidavit
was attached stating that materials would be used for purposes
having the specified rating, his proper precedence. 1
1 Circular No. 4, issued July 1, 1918, recognizes the following purposes which may take
priority rating automatically as indicated :
(a) For the manufacture of turbines (all classes) A-4
(b) For the repair or construction of steam railroad locomotives for use on the
railroads under the jurisdiction of the United States Railroad Administra-
tion ,__. A-4
(c) For the production of electrodes A-5
(d) For the manufacture of rope wire and of wire rope A 5
(e) For the building of ships or other water craft for and under direct contracts
with the United States Shipping Board, Emergency Fleet Corporation A-5
(f) For the building of all cargo water craft (but not pleasure craft) save such
as are under construction by or for the United States Shipping Board, Emer-
gency Fleet Corporation A-0
(g) For the manufacture of machine tools for working both metal and wood ; of
machinists' tools, of small tools, of hand tools, and of mining tools, ma-
chinery, and equipment A-6
(h) For the manufacture of steam railroad materials, equipment, and supplies
(other than locomotives), for use on the railroads under the jurisdiction
of the United States Railroad Administration B-l
(i) For the manufacture of locomotive cranes and traveling cranes B-l
(;') For the manufacture of electrical equipment other than turbines (but not
electrical supplies as distinguished from equipment) B-2
(fc) For the manufacture of farm implements B-2
(1)' For the manufacture of textile machinery B-2
(m) For the manufacture of tools, implements, machinery, and equipment required
for the production, harvesting, distribution, milling, canning, and refining
of foods and feeds B-2
(n) For the manufacture of binder twine and rope B-2
(o) For the manufacture of oil-well supplies or equipment, by which is meant
supplies for the production of petroleum and natural gas, but not includ-
ing pipe lines, storage tanks of 1,000 barrels capacity or over, tank cars,
or refineries B-2
Each order for materials, equipment, or supplies for such purposes or uses as fall
within class C, as defined by the priority committee, will automatically be classed as
class C ; and all orders save such as are automatically classed above shall be automatically
classed as class D unless otherwise provided.
GOVERNMENT CONTROL OVER PRICES. 225
Unifying priorities in production and those In delivery. A serious
need soon developed for a more organized attention to priorities
in delivery such as had already been given to priorities in pro-
duction. It was found that, even when manufacturers had observed
priority policies in making materials, confusion and conflicts within
the Government were delaying the deliveries of those materials.
The President in his letter of March 4, accordingly, suggested the
creation of a Priorities Board within the priorities division. That
board, by his recommendation, was made to include representatives
from the various Government departments in order that, after a
priority of delivery had been determined upon, there might be " com-
mon, consistent, and concerted action to carry it into effect." The
priorities division was then composed of a priorities committee and a
Priorities Board, the latter administering the policies of the former.
The priorities commissioner, as the War Industries Board member in
charge of the priorities division, was chairman of both the board and
the committee. The committee and the board working together, after
the creation of the latter on March 27, 1918, effected a greater
harmony in the administering of priorities over production and
deliveries.
Purposes demanding preferential treatment. A very important
undertaking of the Priorities Board was its issuance on March 27,
1918, of a general classification of purposes demanding preferential
treatment for the guidance of agencies in the production, supply, and
distribution of raw materials, finished products, electrical energy,
fuel and transportation by rail, water, pipe lines, and otherwise.
That list gave preference to the raw materials going into, or sup-
plies necessary to, the manufacture of ships, aircraft, munitions, mili-
tary and naval supplies and operations, fuel, food and collateral
industries, clothing, railroads, and public utilities. These were the
" purposes " demanding preference treatment and were made known
to the whole Government. The issuance of ever increasing numbers
of priority orders had long since made the problem of synchronizing
priorities within the Government and the industry an involved one.
The Priorities Board, by drawing into its deliberations other govern-
mental departments (Railroad Administration, Emergency Fleet
Corporation, the War Trade Board, the Fuel Administration, the
Allied Purchasing ^Commission, the War Labor Policies Board, the
Army, and the Navy), created a unit to administer priority orders,
as well as to help form them. The cooperative scheme worked with
great effectiveness, for, it should be noted, the decisions of the Prior-
ities Board so organized were subject to review only by the chairman
of the War Industries Board and by the President. The general
classification of purposes demanding preference treatment made by
the Priorities Board, and its later similar but more refined preference
12oci7 20 15
22G HISTORY OF PRICES DURING THE WAR.
lists, went a long way toward uniting the Government and the indus-
try upon priority policies.
The preference lists. A list of 45 industries (more commonly
known as " Preference list No. 1 ") where operations were deemed of
exceptional importance during the war, was drawn up by the Priori-
ties Board on April 6, 1918. The list was made for the guidance of
all agencies of the Government in the supply and distribution of
coal and coke, in the supply of transportation by rail or water, and
for the movement of coal and coke to those industries. The scope of
that list was extended to cover 73 industries. 1 and it was again very
much broadened by " Preference list No. 2," and its supplement is-
sued respectively on September 3 and October 1, 1918.
The purpose of the preference list, as it stood at the signing of the
armistice, was to govern the Government and others in the production
and supply of fuel and electric energy to certain necessary industries ;
in the supply of labor; and in the supply of transportation service
by rail, water, pipe lines, or otherwise. The preference list, includ-
ing the 73 industries, was made up of industries entitled to preferen-
tial treatment. But the inclusion of those industries, .or the plants on
the 7,000 list, did not operate as an embargo against all others. The
requirements of all other industries and plants were simply deferred
until the requirements of those on the preference list were satisfied.
In the compilation of this list, industries and plants were divided
according to their relative importance into four classes, viz, Class I,
Class II, Class III, and Class IV. 2
*List No. 2, unlike list No. 1, included also an Individual rating for about 7,000
specific plants. This departure was made in cases where it seemed that particular
plants should have preference even though the industries to which they belonged should
not ; or where particular plants deserved a higher rating than that given their industry.
Each of these plants which failed to file a monthly report of its. activities was dropped
from the preference list.
2 Class I. Aircraft : Plants engaged principally in manufacturing aircraft or aircraft
supplies and equipment. Ammunition : Plants engaged principally in manufacturing same
for the United States Government and the Allies. Army and Navy : Arsenals and navy
yards. Army and Navy: Cantonments and camps. Arms (small): Plants engaged
principally in manufacturing same for the United States Government and the Allies.
Blast furnaces : Producing pig iron. Chemicals : Plants engaged principally in manufac-
turing chemicals for the production of military and naval explosives, ammunition, and
aircraft, and use in chemical warfare. Coke : Plants engaged principally in producing
metallurgical coke and by-products, including toluol. Domestic consumers : Fuel and
electric energy for residential consumption, including homes, apartment houses, resi-
dential flats, restaurants, and hotels. Explosives : Plants engaged principally in manu-
facturing same for military and naval purposes for the United States Government and
the Allies. Feed : Plants engaged principally in preparing or manufacturing feed for
live stock and poultry. Foods : Plants engaged principally in producing, miy^ng, refining,
preserving, refrigerating, wholesaling, or storing food for human consumption embraced
within the following description : All cereal and cereal products, meats including poultry,
fish, vegetables, fruit, sugar, sirups, glucose, butter, eggs, cheese, milk and cream, lard,
lard compounds, oleomargarine and other substitutes for butter or lard, vegetable oils,
beans, salts, coffee, baking powder, soda, and yeast ; also ammonia for refrigeration.
Gas : See oil and gas, also public utilities. Guns (large) : Plants engaged principally
in manufacturing same for the United States Government and the Allies. Hospitals :
See Public institutions and buildings. Mines : Coal. Navy yards : See Army and Navy.
GOVERNMENT CONTROL OVER PRICES. 227
The order by alphabetical listing has no significance, but all in-
dustries and plants grouped under class I had exceptional im-
Oil and gas : Plants engaged principally in producing oil or natural gas for fuel or for
mechanical purposes, including refining or manufacturing oil for fuel, or mechanical pur-
poses. Oil and gas : Pipe lines and pumping stations engaged in transporting oil or
natural gas. Public institutions and buildings (maintenance and operation of) : Used as
hospitals or sanitariums. Public utilities. : Gas plants producing toluol. Railways :
Operated by United States Railroad Administration. Sanitariums : See public institutions
and buildings. Ships (maintenance and operation of) : Excluding pleasure craft not
common carriers. Ships: Plants engaged principally in building ships, excluding (a)
pleasure craft not common carriers, (&) ships not built for the United States Govern-
ment or the Allies nor under license from the United States Shipping Board. Steel-
making furnaces : Plants engaged solely in manufacturing ingots and steel castings by
the open-hearth, Bessemer, crucible, or electric furnace process, including blooming mills,
billet mills, and slabbing mills for same. Steel-plate mills. Toluol : See coke .also public
utilities.
Class II. Brass and copper : Plants engaged principally in rolling and drawing
copper, brass and other copper alloys in the form of sheets, rods, wire, and tubes. Coke :
Plants, not otherwise classified or listed, producing same. Copper and brass : See brass
and copper. Cranes : Plants engaged principally in manufacturing locomotive cranes.
Ferro-alloys : Plants engaged principally in producing ferrochrome, ferromanganese, ferro-
molybdenum, ferrosilicon, ferrotuugsten, ferrouranium, ferrovanadium, and ferrozir-
conium. Gas : See oil and gas. Machine tools : Plants engaged principally in manu-
facturing same. Mines : Producing metals and ferro-alloy minerals. "Navy department :
See War and Navy Departments. Public utilities : Street railways, electric lighting,
and power companies, gas plants not otherwise classified, telephone and telegraph com-
panies, water supply companies, and like general utilities. Public utilities : Plants en-
gaged principally in manufacturing equipment for railways and other public utilities.
Railways : Not operated by United States Railroad Administration (excluding those op-
erated as plant facilities). Rope wire: See wire rope. Steel rail mills: Rolling rails
50 or more pounds per yard. War and Navy Depatments : Construction work con-
ducted by either the War Department or the Navy Department of the United States
in embarkation ports, harbors, fortified places, flood protection operations, docks, locks,
channels, inland waterways, and in the maintenance and repair of same. Wire rope and
rope wire : Plants engaged principally in manufacturing same.
Class III. Buildings : See public institutions and buildings. Chain : Plants engaged
principally in manufacturing iron and steel chain. Cranes : Plants engaged principally
in manufacturing traveling cranes. Domestic consumers : Fuel and electric energy not
otherwise specifically listed. Electrical equipment : Plants engaged principally in manu-
facturing same. Explosives : Plants, not otherwise classified or listed, engaged principally
in manufacturing same. Foods : Plants engaged principally in producing, milling, prepar-
ing, refining, preserving, refrigerating, or storing foods for human consumption not other-
wise specifically listed (excepting herefrom plants producing confectionery, soft drinks,
and chewing gum). Gns : See oil and gas. . Ice: Plants engaged principally in manu-
facturing same. Mines : Plants engaged principally in manufacturing mining tools or
equipment. Oil and gas : Plants engaged principally in manufacturing equipment or
supplies for producing or transporting oil or natural gas, or for refining and manu-
facturing oil for fuel or for mechanical purposes. Public institutions and buildings
(maintenance and operation of) : Other than hospitals and sanitariums. Steel : All plants
operating steel rolling and drawing mills, exclusive of those taking higher classification.
Tin plates : Plants engaged principally in manufacturing same. Tools : Plants engaged
principally in manufacturing small or hand tools for working wood or metal.
Class IV. Agricultural implements : See farm implements. Bags hemp, jute, cotton :
Plants engaged principally in manufacturing same. Boots and shoes : Plants engaged
exclusively in manufacturing same. Chemicals : Plants, not otherwise classified or listed,
engaged principally in manufacturing chemicals. Cotton : Plants engaged in the com-
pression of cotton. Cotton textiles : See textiles. Drugs medicines and medical and
surgical supplies : Plants engaged principally in manufacturing same. Farm imple-
ments : Plants engaged principally in manufacturing agricultural implements and farm
operating equipment. Fertilizers : Plants engaged principally in producing same. Fire
brick : Plants engaged principally in manufacturing same. Food containers : Plants en-
gaged principally in manufacturing same. Foundries (iron) : Plants engaged principally
in the manufacture of gray iron and malleable Iron castings. Insecticides and fungicides :
Plants engaged principally in manufacturing same. Laundries. Newspapers and periodi-
228 HISTORY OF PRICES DURING THE WAR.
portance in connection with the prosecution of the war. Their re-
quirements were fully satisfied in preference to those of the three
remaining classes. Requirements of industries and plants grouped
under class II, class III, and class IV had precedence over those not
appearing on the preference list. As between these three classes,
however, there was no complete or absolute preference. The division
into classes was for the purpose of presenting a composite picture of
the relative importance of the industries and plants embraced within
each group. It was not intended that the requirements of class II
should be fully satisfied before supplying any of the requirements of
class III or that those of class III should be fully satisfied before
supplying any of those of class IV.
War-industry controls center about priorities. The widest of all
the controls extended over industry by the War Industries Board
was that which it got by determining for industry what priority
should be given all war orders both in production and in delivery.
The other kinds of control exercised, indeed, led into priorities con-
trol. It came to be the strongest weapon in the hands of the Gov-
ernment for enforcing its industrial control rules. The Government,
through the War Industries Board, estimated its requirements and
made clearances for war purchases. But those actions really did no
more than pave the way to control. They did not generally reach
beyond the walls of the Government. They enabled a single agent
of the Government to say what the war would require from all in-
dustry and when. The so-called requirement and clearance controls
simply opened a way, then, if there appeared a shortage, for the
board to allocate the war orders to the trade, to curtail certain in-
dustries and to conserve nonessential production. But these potent
controls, it should be emphasized, all tied directly into the control
over priorities, for by determining priorities, in a large way, the
War Industries Board enforced .them. It seems doubtful whether
any other control during the war, amid the confusion and conflict
of orders within the Government and out, introduced a scheme so
powerful in its effects toward synchronizing production and deliv-
eries for war ends.
cals : Plants engaged principally in printing newspapers or periodicals which are entered
at the post office as second-class mail matter. Paper and pulp : See pulp and paper.
Periodicals : See newspapers and periodicals. Pulp and paper : Plants engaged exclusively
in manufacturing same. Rope : See twine and rope. Soap : Plants engaged principally
in manufacturing same. Surgical supplies: See drugs and medicines. Tanners: Plants
engaged principally in tanning leather. Tanning : Plants engaged principally in manu-
facturing tanning extracts. Toxtiles : Plants engaged principally in manufacturing cotton
textiles, including spinning, weaving, and finishing. Textiles : Plants engaged principally
in manufacturing woolen textiles, including spinners, top makers, and weavers. Textiles :
Plants engaged principally in manufacturing cotton or woolen knit goods. Textiles :
Plants engaged principally in manufacturing textile machinery. Tobacco : Only for
preserving, drying, curing, packing, and storing same not manufacturing and marketing.
Twine (binder) and rope: Plants engaged principally in manufacturing same. Woolen
textiles : See textiles.
GOVERNMENT CONTROL OVER PRICES. 229
This powerful scheme, permitting the Government at any moment
to check the production of a less essential commodity for a more
essential one, gave it an effective instrument to control prices.
Priorities, of course, were not designed or ever issued specifically
to " peg " prices. But, for all that, in a very real, though indirect,
way they did affect prices to greater and lesser extents. 1 Threats
of a shortage in a basic material ordinarily provokes confusion and
soaring prices, and opens the door to competitive bidding for priority.
Those bid prices are made in war time with less regard to the actual
cost of production than to the cost of purchasing priorities in pro-
duction and delivery under an abnormal condition. But the priority
policies announced to the country that it could not at any price
purchase priorities either in production or deliveries. Priorities,
it came to appreciate, were determined and controlled by the Govern-
ment solely for war ends. While the priorities system was not an
instrument for the fixing of prices, the stabilizing effects of priorities
control upon prices were not less powerful because there is no way
in which they can be measured.
ALLOCATIONS.
All of the relations which allocation bore to price control are
covered in a study of the Government requirements, the clearance
list, and priorities. The allocation of Government requirements, or
clearances, meant simply their distribution to particular industries
and firms for fulfillment. The requirements division, after clearing
all of the prospective purchases of the Government, forwarded a
record of those immediate needs to the proper commodity section
chiefs. The commodity chief and his staff, after determining
whether there was a shortage of the commodity required, either al-
located the order or returned it without restriction. The Govern-
ment department, from which the order asking for privilege to pur-
chase had originally come, if there was no shortage, could buy its
goods in the open market without restriction. But, where the com-
modity section had found a shortage, the section itself allocated the
order to various parts of the industry or firms before returning it.
Allocation, obviously, was not a separately administered function of
any division of the War Industries Board as were most of the other
controls. It was really a principle of procedure, commonly followed
by all of the commodity sections, designed properly to distribute the
burden or fruit of certain Government orders. It pertained only to
purchases of those commodities in which a shortage threatened.
lr Fhe War Industries Board goes so far as to write into its final report that "war
prices were high prices, but they were stabilized prices. The most effective organ of
stabilization was the operation of the priorities system."
230 HISTORY OF PEICES DURING THE WAR.
CURTAILMENTS.
Curtailment was commonly administered by various units within
the War Industries Board when an extremely serious shortage
threatened. The production of certain less essential commodities was
cut off or curtailed to make way for the production of allocated and
other orders. The administration of priorities was one of the most
effective instruments of curtailment, and the material for a study of
curtailment falls largely in that chapter. The curtailment of all or
any part of an industry, because much more sweeping and heartless
than its conservation, was a program entered upon with far more
caution. An Industrial Adjustment Committee, composed of repre-
sentatives from the War Industries Board, the War Trade Board,
the Food Administration, the Fuel Administration, the United States
Shipping Board, the War Labor Policies Board, and the Treasury
Department, was appointed upon the approval of the President to
form a plan for the safe but systematic curtailment of nonessential
industries. That committee, after permitting the industries affected
a hearing, determined upon curtailment policies which would effect
equitable reductions without killing the industry. The actual ad-
ministration of all curtailment programs, as were those for conserva-
tion, was put into the hands of the commodity sections of the War
Industries Board.
CONSERVATION.
The War Industries Board, after balancing roughly the Govern-
ment and civilian demands against supplies, found, in the main, that
the threatened shortages could be met adequately without absolute
curtailment by so-called conservation programs. The conservation
of a supply, as distinguished from cutting it off or curtailing it,
meant simply spreading its use out thinner. The board, under its
conservation division, 1 studied carefully the industries which were
not strictly serving the war requirements and set itself to eliminate
their wastes and turn their available materials to the best war uses.
The purpose of conservation was, by means of substitution, conserva-
tion or standardization to give the military, naval and shipping
agencies of the war machine exactly what they required for full
effectiveness. It was the business of the War Industries Board, with
all war demands coming under its eye, to introduce schemes of effi-
ciency for the proper coordination of supply and demand.
1 The conservation division of the War Industries Board was created May 9, 1918,
to carry on the work commenced on Mar. 24, 1917, by the commercial economy board
under the Council of National Defense. The function of the new division, as outlined
by the President in his letter of Mar. 4, was "the studious conservation of resources
and facilities by means of scientific, industrial, and commercial economies."
GOVERNMENT CONTROL OVER PRICES. 231
Conservation measures were effected, outside the Government and
in, by the strictest cooperation with the industry through the various
war-service committees and by technical advice and consultation with
the Government war-making agencies. Those measures scarcely per-
mit of a tangible analysis because of their number and their variety.
Conservation, however, was generally effected by securing a maxi-
mum reduction in the number of styles, varieties, sizes, colors, or
finishes of the product; eliminating the number of styles and varie-
ties that took more than the amount of material strictly necessary
(as, for example, restricting the length and sweep of overcoats) ;
eliminating features or accessories which used materials for adorn-
ment or convenience but which were not essential to the utility of the
product; eliminating patterns and types of products which were less
essential to the civilian needs; substituting materials which were
plentiful in the place of those which were not plentiful and were
needed for the war program (for example, zinc was substituted for
steel and other metals) ; discontinuing the use of certain materials
for unnecessary purposes (such as caustic soda in the manufacture
of automobile tires) ; standardizing sizes, lengths, widths, weights,
thicknesses, and gauges of materials, parts and sections ; reducing the
excessive waste of materials in manufacturing processes (such as
chrome chemicals in certain branches of the leather-tanning indus-
try) ; securing economy in samples used for selling products; secur-
ing economy in containers by eliminating boxes or cartons which re-
quired excessive shipping space (as, for example, eliminating small
sizes of containers) ; securing economy in packing by increasing the
number of units per package.
Under this general scheme, the board made conservation rules
applicable to various industries and, before putting them into effect,
asked each industry for technical advice upon them. Once adopted,
the enforcement of each conservation program was left for adminis-
tration to the proper commodity chief.
No adequate analysis can ever be made to cover in full the extent
of saving which each of the conservation programs effected. A com-
prehension in general of the more specific programs undertaken,
however, is vital because of its bearing upon price control. The
programs, in each case, were addressed by necessity to the industries
themselves through the War Industries Board, since there was no
means of effective enforcement other than the enlistment of their
cooperation. The more important of the programs were those in-
tended to conserve materials within the agricultural implement,
automobile tire, barrel goods, bedding, bicycle, book cloth, bottle,
boys' clothing, camera, chain, chandelier, chinaware, clock, compo-
sition roofing, corset, delivery service, electric appliance, fabric
glove, felt shoe, furnace, furniture, gas range, hand stamp and mark-
232 HISTORY OF PRICES DURING THE WAR.
ing device, hardware, harness and saddlery, hosiery and underwear,
household wringer, leather glove, mackinaw, men's clothing, metal
bedstead, motorcycle, moving-picture machine, office appliance, oil
refining, oil storage tank and pump, oil stove and heater, optical
goods, overall, paint, pencil, plumbing supply, radiator, railroad
machinery, range, refrigerator, rubber clothing, rubber footwear,
rubber goods, safe and vault, shoe, steel pen, steel pipe, stove, straw
hat, sweater, talking machine, thread, tin, tin plate, traveling bag,
trunk, typewriter ribbon, vacuum cleaner, vehicle, waist, washing
machine, weather-strip, wholesale dry goods, wooden container, wool
felt hat, and women's clothing industries.
The conservation program, put well underway by the War In-
dustries Board before the end of the war, was a big and compre-
hensive one. It, like the priority program, had a very vital though
a very intangible bearing upon the price level. The stabilizing effect
of the one upon prices is as impossible to measure as the other. But
the conservation schedules introduced into various industries, while
generally of a less potent influence upon prices than the priority
certificates, must be taken into account in an analysis of price control.
Conservation, by turning materials into strictly essential industry
and spreading their uses out thinner, helped to postpone the shortage
point and stave off higher rises in price,
PRICES.
The War Industries Board was not a price-fixing agency strictly
speaking, but it did undertake a wide range of formal and informal
price controls through agreements with the industry. The creation
of the price-fixing committee in March, 1918, relieved the board
proper of the further administration of virtually all its important
price-fixing work, though it did afterwards exercise some price
control. The peculiar relation of the War Industries Board and
the price-fixing committee and the difficulties of separating clearly
their controls make it advisable to divide the discussion of what
these two organizations did in regulating prices. A statement of
individual price regulations undertaken by the War Industries Board
is, therefore, postponed until after the general discussion of the work
of the price-fixing committee.
5. THE PRICE FIXING COMMITTEE.
There was not, during the last seven months of war, any other
agency of the Government at Washington so strictly giving its
whole attention to the business of fixing prices as the price fixing
committee. The President had come to believe in the necessity of
systematic methods of determining the great basic raw-material
prices, and on March 4, 1918. wrote asking that price determination
problems be transferred from the War Industries Board to a special,
independent committee. That action came long after the Food Ad-
ministration had assumed control over food prices, and the Fuel Ad-
ministration control over fuel prices. It marked a clear break with
earlier methods of price control, though not necessarily with earlier
policies, and was the longest stride toward a somewhat organized
price fixing that was taken.
The new price fixing committee, created too late to formulate the
initial price policies upon many of the basis materials, grew week
by week, through revisions of earlier policies and the initiation of
new controls, into a direct responsibility for the majority of all
general fixed prices. 1 To understand the committee's work it is
necessary to know how the price fixing committee was organized,
what basis of power it had to fix prices at all, the sphere of its ac-
tivity within the Government, the character of price agreements en-
tered into by it, the price policies which the committee worked out,
and how it enforced its price regulations.
(i) ORGANIZATION OF THE COMMITTEE.
The price fixing committee, created under the authority of the
President's letter to Mr. Bernard M. Baruch, dated March 4, 1918,
was made up of a chairman, a representative of the War Department,
a representative of the Navy Department, a representative of the Fuel
Administration, a representative of the Tariff Commission, a repre-
sentative of the Federal Trade Commission, the labor representative
of the War Industries Board, and the chairman of the War Industries
Board ex officio. 2 This committee, appointed by the President, was
1 The first meeting of the price fixing committee was held in the War Industries Board
on Mar. 14. 1918.
2 The organization" in full of the price fixing committee at the time the armistice was
signed was as follows: Robert S. Brookings, chairman; Bernard M. Baruch, chairman
of the War Industries Board ex officio ; F. W. Taussig, chairman United States Tariff
Commission ; W. B. Colver, chairman Federal Trade Commission ; H. A. Garfield, United
States Fuel Administrator ; Hugh Frayne, labor representative of the War Industries
Board ; Commander John M. Hancock, representing the Department of Navy ; Lieut. Col.
Robert H. Montgomery, representing the Department of War ; Henry C. Stuart, repre-
senting the Department of Agriculture ; and W. W. Phelps, secretary.
233
234 HISTORY OF PRICES DURING THE WAR.
called together by the War Industries Board for its first meeting,
and by them given its original general instruction. 1 This quasi-
judicial committee thereafter, whether in regular executive session
or in conferences with the trade, sat at times almost continuously
in the Council of National Defense Building.
It is not precise^ accurate to say that the price fixing committee
was either independent of the War Industries Board or that it was
a subsidiary part of the board. Not to the very last were it and the
board agreed concerning the place of the committee in the War In-
dustries Board organization. The President, in reorganizing the
board on March 4, 1918, had provided for the creation of a price-
fixing committee in the same letter by which he outlined the func-
tions of the board and appointed Mr. Bernard M. Baruch its chair-
man. The board, after the appointment of the committee, formally
marked out a set of policies for the committee, and its chairman
called together the committee for their first meeting and told them
their function. The chairman of the board, indeed, and another
member were made members of the committee. The committee took
over formally the fixing and revision of many prices already con-
sidered by the board and worked hand in glove with it. The com-
mittee announcements were printed as from the price fixing com-
mittee of the War Industries Board. But there was no real authority
which the board held over the committee.
The President in his letter specifically- took price determination
from the board and gave it to a separate committee, and he, inde-
pendent of the board, named the members of the price fixing com-
mittee. The committee considered itself responsible directly to the
President and, irrespective of the board, made its reports to him. 2
It was the President, not the board, who approved all prices fixed
and made them official.
1 The functions of the price fixing committee as determined by the War Industries
Board, earlier that day, and delivered to the committee, were as follows: (1) To advise
upon prices of basic materials; (2) from time to time to advise as to general price
policies, acting in this way as a coordinating price body ; (3) the committee will advise
when requested by any department upon a specific contract, assuming, however, that no
department will submit for advice those problems which it is organized and qualified
to handle itself; and (4) when materials are commandeered prices of the same will be
fixed by this committee.
2 Mr. Robert S. Brookings, chairman of the price fixing committee, in a conference
held with the copper industry as late as July 2, 1918 (price fixing committee minutes for
that day, p. 433), said: "The facts are, we represent the President absolutely. Our
appointment, while we are a part of the War Industries Board, is absolutely separate
and distinct ; we have absolutely separate and distinct obligations^ * * * We sub-
mit these things to him (President) for approval when they involve a change, or when
there is anything to approve ; in fact, we go into detail sometimes more than I think
he cares to have it, because we have reason to know that when it comes to exercising
a far-reaching judgment, especially where it involves the Nation, he frequently has
suggestions to make."
GOVERNMENT CONTROL OVER PRICES. 235
(2) THE BASIS OF POWER TO FIX PRICES.
After what has already been said about the legal basis of the
powers exercised by the War Industries Board at large, it will not be
surprising to find that the legal basis of the price fixing committee's
work was somewhat indefinite. This committee, though deter-
mining a far wider range of prices than either, had only a fraction
of legal power by comparison with its sister price-determining
agencies, the Food Administration and the Fuel Administration. No
specific statute could be quoted as its authority for deciding what
prices should be. That fact, beyond doubt, somewhat circumscribed
its method of price fixing, if not the extent, and made the committee
fix. prices almost altogether by agreements with the producers.
THE THREATS OF REQUISITIONING AND COMMANDEERING.
But, if there was no law to which the price fixing committee might
turn for making its decrees effective, there were other less direct yet,
in war time, equally powerful weapons. Foremost among these, as
all producers knew, were the well-nigh absolute rights to requisition
goods or place commandeering orders with plants for supplies.
True, neither of those powers was open to the Government for other
than its own needs, but there could scarcely have been made a more
satisfactory resort for war times. The latent power, given to the
President by authority of the food control act and the national
defense act, under which virtually all Government requisitioning and
commandering were done respectively, enable the price fixing com-
mittee in substance to tell producers : v
These are the prices to which the Government will agree; if you are willing
to enter into a voluntary arrangement with us, you will be paid these prices for
your goods, but if you refuse to do so, we will be compelled to ask the properly
constituted authorities to commandeer your output or your plant and give you
just compensation therefor as provided by statute. 1
The food control act (H. R. 4961, Public No. 41), approved August
10, 1917, was the law which authorized the requisitioning of certain
existing properties for the support either of the Army, Navy, or any
other public use. It provided in section 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
maintenance 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.
This act, which was really the basis for all Government requisition-
ing of subsistence supplies for the Army during the war, pertained
1 The legal section of the War Industries Board on June 11, 1918, prepared a memo-
randum in which it concluded that a threat to commandeer expressed in the above form,
and made to enforce the fixing of a certain price does not constitute duress.
236 HISTORY OF PRICES DURING THE WAR.
only to foods, feeds, and fuel and was not, therefore, of so much value
to the price fixing committee as the national defense act.
The national defense act (H. E. 12766, Public Xo. 85), approved
June 3, 1916, authorized the Secretary of War to determine reason-
able prices for military supplies and, upon failure of compliance,
gave the President power to take over any .plant. This act, which
was the one giving authority for the commandeering of output, made
it possible to place with any manufacturing establishment a compul-
sory order for the production of any manufacture usually produced
by the firm. The Government could, thus, by the payment of a just
compensation, require or commandeer the whole output of a plant and
itself determine the price to be paid for everything taken under com-
pulsory order. This possibility, in so far as the price fixing committee
had a legal weapon, was the most formidable weapon the committee
had for compelling acceptance of its price determinations. 1
It should be mentioned, too, that, aside from these direct threats
to requisition or commandeer, the committee had effective weapons
1 A brief digest of the main acts, including the two above* under which requisitioning
of goods might be accomplished or commandeering orders issued to plants, follows :
1. Public 41, Sixty-fifth Congress, section 10. The food control act authorizes the
President to requisition foods, feeds, fuels, and other supplies necessary to the support
of the Army or the maintenance of the Navy or any other public use connected with
the common defense.
2. Public 85 3 Sia*ty- fourth Congress, section 120. The national defense act provides
for the placing of orders with any concern for such product or material as may be re-
quired, and which is of the nature and kind usually produced, or capable of being pro-
duced, by such concern. In the event of a refusal so to produce, the plant of such concern
may itself be taken over by the Government.
3. Public 391, Sixty-fourth Congress, pages 28-29. The naval appropriations act
authorizes the President to place an order with any person for ships or war material
if such ships or material are of the nature, kind, and quantity usually produced or
capable of being produced by such person. Upon refusal, here, also, the plant may be
taken over. Under this act " war material " is made to include arms, armament, am-
munition, stores, supplies, and equipment for ships and airplanes, and everything re-
quired for or in connection with the production thereof. Another paragraph provides
for the modification or cancellation of any existing contract for the building, production,
or purchase of ships or war material. It is further provided that the owner or occupier
of any factory in which ships or war material are built or produced shall place at the
disposal of the United States, if required, the whole or any part of the output of such
factory. Finally, the Government may requisition any factory or part thereof. It is
open to argument whether the authority here granted should have terminated on March
1, 1918, no decisive ruling on the point having been made.
4. Public 23, Sixty-fifth Congress. The so-called emergency shipping fund allows the
placing of an order with any person for such ships or material as the necessities of
the Government, to be determined by the President, may require during the period of the
war and which ar-e of the nature, kind, and quantity usually produced or capable of
being produced by such person. Also, power is given to requisition ships or parts
thereof.
Requisitioning under tlie icar power. Finally, with regard to the power to requisition,
some mention should be made of the war power. The President, as Commander in Chief
of the Army and Navy, has undoubtedly a vast field over which he may exercise his
control without legislation. Under this head he has a right to take private property for
public use upon payment of just compensation, even if such taking is not authorized
specifically by Congress. Just how far this right extends it is hard to tell, inasmuch as
presidential action would depend on the nature of a given emergency. It is important
to make mention of it merely because of the right to requisition which is thus in. the
hands of the Executive.
GOVERNMENT CONTROL OVER PRICES. 237
-for fixing prices in its influence with the Railroad Administration,
the Priorities Committee, the Fuel Administration, the War Trade
Board, and the Food Administration. These bodies, each in control
of a basic material or service, could be persuaded to withhold trans-
portation, license, fuel, supplies, or priority to enforce price agree-
ments demanded by the committee.
THE WAR-TIME SPIRIT.
It made really little difference, while the country was united to
achieve a national ideal, that the price fixing committee had a
somewhat indefinite statutory authority. For the legal powers
of the price fixing committee, applicable at best only to articles
needed for the use of the Government, were of much less prac-
tical consequence than public opinion and patriotic spirit. The
universal feeling of support to public actions taken for a war pur-
pose was the most potent of all powers behind the price fixing com-
mittee. The prices in all cases were reached in conferences by agree-
ments with the trade. It is beside the point to inquire whether so
slight an authority would suffice for peace-time regulation. No
better word can be said for the efficacy of the war-time spirit for
enforcing price agreements, despite the lack of law, than that no
occasion ever arose for putting to a test the nature or extent of its
legal authority. 1
(3) ITS SPHERE OF ACTIVITY.
The sphere of activity peculiar to the price fixing committee, and
its distinction from the Food and Fuel Administrations require ex-
planation. Obviously, these latter agencies controlled foods, feeds,
and fuels, and left the price fixing committee to determine prices, if
necessary, over the whole remaining lot of materials needed for war.
But there are other differences less apparent and more important.
The price fixing committee, unlike these two administrations, was
not a huge institution responsible upon its own initiative to keep con-
sumers' prices stable and send its administrators into every town and
city to that end. It was a very small quasi-judicial committee, acting
only upon request of a war agency. It sat primarily to .hear evidence
and determine fair prices for Government purchases, and was con-
cerned almost altogether with producers' prices.
COMMITTEE CONCERNED PRIMARILY WITH GOVERNMENT PURCHASES.
One of the features of the control exercised by the price fixing
committee, which differentiates it sharply from the food and fuel
" Price-Fixing as seen by a Price-Fixer," by F. W. Taussig, Quarterly Journal of
Economics, February, 1919.
238 HISTORY OF PRICES DURING THE WAR.
controls, was that it was concerned primarily with stabilizing tne
market for Government purchases. The Food Administration and
the Fuel Administration, each with thousands of representatives and
an enormous administrative machinery, undertook as their primary
concern the stabilization of prices for the public. Their control, de-
signed to cover the whole gamut of food and fuel prices from the big
producer to the country retailer, required them, within a much nar-
rower field of activity, to consider greater numbers of problems.
But the price fixing committee, with its wider range of controls, and
a more highly technical problem, -began with the purpose simply to
protect the Government. It came but gradually to concern itself
with the protection of the public. 1
The price fixing committee, to the end that it might protect the
Government in making purchases, was organized to include repre-
sentatives of the Army and Navy, who could keep it informed of
contemplated purchases and price problems which arose in connec-
tion with them; representatives of the War Industries Board, who
personally were familiar with the available raw materials in various
industries and the supply of labor ; a representative of the Fuel Ad-
ministration, through whom control over fuel for manufacturers
could be held; and representatives of the Tariff and Federal Trade
Commissions, who could supply technical data tending to show how
prices would affect production. It was not until toward the last that
a representative of the agricultural interests was appointed, and
never was it attempted to give the purchasing public, retail trade, or
wholesale trade special representation directly in the committee. 2
THE COMMITTEE FIXED PRICES ONLY UPON REQUEST.
As already said, the price fixing committee did not deem it a part
of its function, as did both the Food and Fuel Administrations,
to make and keep strict watch over prices in which the Government
itself had no direct concern. The committee, even if inclined to
exceed its primary responsibility to protect the Government, had no
staff adequate to maintain control over the price level in a larger
way. It did not ask for itself any considerable powers of initiating
1 A statement of this policy is made by a member of the price fixing committee, F. W.
Taussig, in the Quarterly Journal of Economics for February, 1919, as follows : " The
action of the committee in every case had its origin in the circumstance that Govern-
ment purchases were on a great scale and threatened to disturb market prices. The ex-
tension of the function of the committee to the regulation of prices for the public was,
if not an afterthought, at all events not among the things contemplated at the start.
The committee stepped in when Government purchases threatened to upset the market,
but soon found itself compelled to protect the public also."
2 Mr. Robert S. Brookings, in an early conference of the committee with the trade
(minutes of the price fixing committee, Book II, Apr. 3 to Apr. 24, p. 29), said
frankly : " When we fix prices for the Government we have no difficulty, but when we fix
prices for the public there is always difficulty."
GOVERNMENT CONTROL OVER PRICES. 239
price control. 1 Yet, the necessities of the case gradually forced the
committee to take a broader view of the whole price situation.
FIXED PRODUCER PRICES.
The sphere of activity of the price fixing committee is especially
well defined with respect to the kinds of prices which it undertook
to fix. There is a vast difference in the complexity of problems
arising in the fixing of prices for the producer and in fixing those
for the retailer, or in fixing those for the wholesaler, distributor,
and middleman of all sorts in between. The committee, happily, was
not obliged, in the main, to deal with other than the prices at which
the producer should sell his materials. The Government usually
bought in large quantities direct from the primary source of supply.
If the committee, as the war went on, had gone further in the direc-
tion of protecting the public, it is doubtful whether they would
have found it sufficient to fix prices at the primary distributing
points. That scheme, though highly extended by the requirement of
a like price for the Allies and public, gave no real protection from
high retail prices to the consumer. In no other respect was the
sphere of activity of the price fixing committee so narrow as in the
stage at which transactions were controlled. 2
(4) THE CHARACTER OF THE PRICE-FIXING AGREEMENTS.
The price-fixing committee, in the strict sense of the term, fixed
no prices. A perusal of the various terms of the so-called fixed-price
announcements and the minutes of the meetings of the committee
shows clearly that the prices fixed represented simply agreements
entered into with the industry by the committee.
THE METHOD OF MAKING THE AGREEMENTS.
The price-fixing committee, in part as a measure of expediency
and in part because of lack of authority, undertook generally to
arrive at a fair price by series of conferences with the trade, rather
than through any more high-handed or independent method. A
leading member of the committee, Dr. F. W. Taussig, goes so far
as to say that
the prices fixed were in all cases reached by agreement with the representatives
of the several industries. In strictness they were agreed prices rather than
*Mr. Robert S. Brookings, chairman of the price fixing committee, when asked by
certain private interests to fix the price of wool on Apr. 19. 1918, said (p. 63 of
minutes of price fixing committee for a conference upon that day), that the price fixing
committee " do not feel that it is any part of our function to take initiative ; at least
we have not," and, when pressed to say whether a price would or would not be fixed
on wool he said : " You might ask the President. He is the only man who has any
authority to say yes or no on anything. We have nothing to do with it."
2 An interesting comment is made upon this point by F. W. Taussig in the article
referred to previously.
240 HISTOEY OF PRICES DURING THE WAR.
fixed prices. The agreements were usually reached in cordial cooperation with
the producers concerned, and thus were in reality voluntary. There were cases,
however, in which they were agreements only in name. The representatives
of some industries, though they accepted them, did so virtually under duress.
In these cases the committee to all intents and purposes decreed prices and
was enabled to impose them, under the form of agreement, by a more or less
veiled threat of commandeering, and also by the certainty that public opinion
would condemn those who failed to accede.
It was the custom of the committee, once it seemed likely that the
necessity for fixing a price had arisen, to call the representatives of
the industry to Washington for conference. The committee, after
itself going over cost figures prepared for it by the Federal Trade
Commission, talked freely with the trade the situation at hand,
heard the trade viewpoint, and finally, with them, arrived at a price
mutually satisfactory. It was the practice usually on important
matters to allow the trade to retire for confidential discussion between
members. Similarly the committee usually went into executive session
before finally announcing the price agreed upon and reviewing the
facts of the agreement. The committee, after dismissing the rep-
resentatives of the industry, usually submitted the price fixed to the
President for his approval and public announcement.
ALL PRICES WERE MAXIMUM PRICES.
It was characteristic of the prices fixed by the price-fixing com-
mittee, if indeed not of all prices fixed in this country during the
war save those for wheat, pork, and hemp, that no more rigid control
was attempted than the fixing of a maximum price. The committee
really set limits above which the so-called fixed prices might not
rise, but left them to play freely below those points. This distinc-
tion, though precisely accurate, is of more importance in theory than
in practice, because usually the maximum prices became the actual
prices and operated, in the main, as fixed prices. 1 The various Gov-
ernment departments (the Department of War, the Department of
Navy, the United States Shipping Board Emergency Fleet Corpora-
tion, and the Railroad Administration) were usually guided in their
purchases by the fixed maximum prices and paid them without more
ado.
FIXED PRICES APPLICABLE ALIKE TO Low AND HIGH COST PRODUCER.
The prices fixed by the price fixing committee were made ap-
plicable alike to sales made by low-cost and high-cost producers.
That practice, of course, put decided advantages into the hands of
many larger manufacturers and producers who turned out enormous
1 The Instances in which the market sank below the fixed prices, as it did with zinc
and lumber, are relatively few. The committee, when such a circumstance occurred,
simply reduced the fixed maximum price to a lower level.
GO VEHEMENT CONTROL OVER PRICES. 241
quantities of product' at relatively low figures and handicapped,
in a sense, the smaller high-cost producers. It gave rise to no end
of discussion among economists within and outside the Government
during war, but no departure from this simple measure of setting a
single price for all was ever adopted. 1
The price fixing committee, in a very rough way, attempted to fix
a flat price at a point which would, starting from the lowest-cost
producer, take in enough of the higher-cost producers to bring out
in quantity the approximate production required. It is estimated
by Dr. Taussig that the price usually was fixed which would secure
four-fifths or nine-tenths of the entire output. When reminded that
the inevitable corollary of that procedure was that many low-cost
producers would reap large profits, the price fixing committee pointed
in answer to the excess profits tax. The chairman of the price fixing
committee freely said that what the Government did not get from
the low-cost producer through price fixing, it would get in another
form through taxation. 2 The price fixing committee then stuck
throughout to its policy of fixing a flat rate for all producers whether
having low or high costs.
FIXED PEICES APPLICABLE ALIKE TO GOVERNMENT, ALLIED AND PUBLIC PURCHASES.
Long before the work of the price fixing committee was under way,
the President in no unmistakable terms had mapped out the policy
that "prices mean the same everywhere" and "we must make the
prices to the public the same as the prices to the Government." 8 Not
a month after the President had determined upon this broad policy,
the War Industries Board, in keeping with it, declared that " our
Allies shall be charged no more than our own Government has to
1 A fuller discussion of this problem, from a slightly different standpoint, may be
found in a later section discussing the bases for determining upon what price to fix.
2 At an executive session of the price fixing committee, held July 8, 1918, a dis-
cussion took place to determine to what extent, if any, the excess profits tax should be
considered in the fixing of prices. Mr. Brookings submitted a memorandum stating that
the price fixing committee was created to stabilize values and prevent extortionately
high prices. It was not intended, however, unnecessarily to depress values to a point
where there would be little or no excess profits tax. The policy of the committee should
be, he believed, so to shape prices that the less efficient or small producer would receive
a fair profit, even though that gave the larger and more efficient producer a very liberal
profit. It was expected that the new excess profits tax would equalize this discrepancy
by taking a larger proportion of the liberal profits earned. In connection with this sub-
ject, the probable effects of the new excess profits tax were then discussed, and the
chairman was requested to call Mr. Kitchin's attention to the probable influence on
production of a very high percentage tax.
3 An address to the mine operators and manufacturers made by the President, July
12, 1917.
125547 20 16
242 HISTORY OF PRICES DURING THE WAR.
pay." * There are instances of prices fixed for the Government 1 alone,
prices fixed for single branches of the Government only, and for allied
purchases only. But, by and large, the prices fixed by the price fix-
ing committee were applicable alike to the Government, Allies, 2 and
the public.
(5) THE PRICE POLICIES OF THE COMMITTEE.
A search through the voluminous minutes of the price fixing com-
mittee for their great underlying policies would yield few quotable
passages. A statement of policy here may be implicitly contradicted
by another statement there. In the record of most cases, indeed
there is no mention of any underlying policy whatever.
There is a striking difference in this respect, between the determi-
nations of the price fixing committee and the Food Administration,
though it is perhaps more apparent than real. The former seldom
and the latter usually talks about policies, as might be expected from
an analysis of the two kinds of control. One would get as far,
perhaps, if he accepted literally the statement of Chairman Brook-
ings of the price fixing committee that " we have nothing to say about
our own policy, we may change it to-morrow," 3 or that of another
member, Dr. Taussig, that " a frankly opportunist policy alone was
possible." 4 But the price fixing committee, though operating with-
out any deep controlling policies, had in mind certain broad aims
which throw some light upon their actions.
It is noteworthy that Mr. Baruch, in calling the committee together
for organization, impressed it with a responsibility to guard against
" runaway markets " and, too, with the necessity for fixing prices at
1 This policy was announced by the War Industries Board, Aug. 8, 1917, with but
two limitations : That the Allies must henceforth apply the same principle in dealing
with their own producers and in selling to us and in selling to each other ; and that the
arrangement must be limited to war materials.
3 The price fixing committee information book, recording a meeting of Aug. 27, 1918,
defines its application of fixed prices to allied purchases by the following resolution :
" Be it resolved, That where prices are stated to be fixed for the United States Govern-
ment, the governments associated with it in this war, and the public (or primary
civilian sales) the said prices are hereby declared to extend to the Government and
civilians of the United States (including civilians of its Territories and insular posses-
sions), and to the following Governments, i. e., Great Britain, France, Italy, Belgium,
and Japan ;
" And 1)e it further resolved, That these maximum prices shall not extend to purchases
made by the civilians of the above-mentioned allied nations nor to the Governments or
civilians of nations other than those above enumerated."
8 Minute Book of the Price Fixing Committee, Book 2, Apr. 19, p. 63.
4 Dr. Taussig, in his article referred to above, goes on to say : The price fixing com-
mittee, whose wide range of operations might make its doings of most general interest to
economists, was slowest in developing a general policy ; and this probably for the very
reason that its scope was wide, its principles of action little prescribed by any legisla-
tive or administrative instructions. There was no more than a gradual and tentative
approach to any principle of action whatever. This restraint was as wise as that of
a court of law which refuses to commit itself on any questions! of principle not es-
sential to the case in hand. Had the war continued, and had the regulation of industry
lasted longer and extended farther, all sorts of new situations and new problems would
have arisen, for whose wise disposal no rule could be laid down in advance.
GOVERNMENT CONTROL OVER PRICES. 243
a point where they would stimulate production. 1 He then delivered
to them a plan which the War Industries Board, earlier that day, had
set down for the committee to follow in its deliberations but which
marked out no single general policy. 2 The committee, after being
called together, plunged at once into the task before them and began
to discuss the fixing of a price for Oregon and Washington fir without
laying out for themselves any general principles.
It does not appear that the price fixing committee undertook
formally to set down for its own guidance any general lines of policy
or functions until an executive meeting held July 8, 1918, when
Chairman Brookings got approval for the following statement :
First. Where the different purchasing departments of the Government re-
quire so large a proportion of any commodity as to produce such scarcity of
said commodity as to require price control with a view of avoiding a runaway
market, the price fixing committee is expected by conference with the said
manufacturers of said commodity to stabilize prices by agreement. Failing to
agree, the price fixing committee will fix a price and enforce same through some
purchasing department of the Government, using to that end not only the va-
rious purchasing enabling acts, but such indirect pressure as priority in fuel,
transportation, etc., will permit.
Second. Where a scarcity is produced in part or in whole by limitation of
imports, it is the Government's duty through the price fixing committee, and a
system of import licenses under control of the War Trade Board, to see that
control is secured of said importations through an option reserved in the im-
port licenses so as to prevent a runaway market in said imported commodity.
While prices as above outlined may only be arranged for the Government and
those associated with us in the war, they, as a rule, are made for the public
as well, and where made for the public, the price paid both by the public and
the Government is made the same, and, while it is the custom to make maxi-
mum prices only, it is generally understood that unless there is a larger supply
than the demand, the maximum prices will by necessity also become the mini-
mum price, and the purchasing departments of the Government are usually
expected to pay this price.
Third. While the different purchasing departments of the Government are
expected to fix prices on their current purchases where there are no special
problems involving a lack of supply, the price fixing committee may, on appli-
cation, solve any special price-fixing problems, the nature of which would seem
to require its jurisdiction, and which are in scale with the time involved.
1 Minutes of the price fixing committee for Mar. 14, 1918.
2 The Council of National Defense, in its announcement of the creation of a price
fixing committee made Mar. 19, 1918, gave at least the following pertinent statement
relative to the aim, of the committee : The object of the price fixing committee is two-
fold : First, it will be a separate body, quasi judicial in nature, for the purpose implied
in its name, and it will serve this purpose through being made up of men separated so
completely from industrial interests that their motives and actions in the determination
of prices can be subject to no suspicion of mercenary interest. Prices will not be
made until after costs have been passed upon by the Federal Trade Commission. With
costs as a basis, the price fixing committee will then consider problems of production and
distribution before arriving at its decisions.
The second object to be achieved by the price fixing committee is speed. The com-
mittee will sit all the time and will thus eliminate unnecessary delay caused by the con-
sideration of price fixing problems in several different quarters.
244 HISTORY OF PRICES DURING THE WAR.
Perhaps there was no single aim more desired by the price fixing
committee than that brought out succinctly by its Army member,
Lieut. Col. Eobert H. Montgomery, "to stimulate production by one
way or another." That policy was always uppermost in the minds
of the committee.
(6) ADMINISTERING COMMITTEE DECISIONS.
The price fixing committee, quite without administrative ma-
chinery, left the task of administering controls designated by it and
the enforcing of fixed base prices or differentials entirely with the
commodity chiefs of the War Industries Board. The commodity
chiefs, familiar with the technical problems of the various trades
and in touch with the hundreds of war service committees, were in a
peculiarly favorable position to enlist a full cooperation from the
industry.
(7) THE COMMODITIES FIXED IN PRICE BY THE WAR INDUSTRIES
BOARD AND THE PRICE FIXING COMMITTEE.
It is scarcely feasible to consider separately the commodities
fixed in price by the War Industries Board and the price fixing
committee, though note should always be made of the special phases
of any regulation which each contributed. The controls undertaken
by the War Industries Board between September, 1917, and March,
1918, and then transferred to the price fixing committee concerned
copper, iron and steel, cement, yellow pine, Douglas fir, zinc, alumi-
num, hemlock, North Carolina pine, and spruce. The controls initi-
ated by the price fixing committee between March 14 and the close of
war concerned hides and skins, wool, munition linters, harness leather,
sulphuric acid, nitric acid, cotton textiles, cotton linters, sand and
gravel, manila fiber, building tile, sole and belting leather, rags,
wool grease, compressing rates for cotton, brick, millwork, and gyp-
sum wall board. The informal controls exercised by the War In-
dustries Board itself independently of the price fixing committee
concerned lead, wood chemicals, nitrate of soda, alkalis, nickel, quick-
silver, platinum, manganese ore, and burlap.
There follows a discussion of the most important of these controls
under the following. main commodity headings in the order named:
Iron and steel, and their products; copper; aluminum; lead; zinc;
nickel; quicksilver; platinum; cotton textiles; cotton linters wool;
hides, skins and leather; manila fiber and hemp; burlap; lumber;
building materials ; and chemicals.
IRON AND STEEL AND THEIR PRODUCTS.
There is scarcely an experience with price-fixing, throughout our
whole war period, which is more striking or more important than
GOVERNMENT CONTROL OVER PRICES. 245
that with the iron and steel family. 1 Regulation was invoked within
our first six months of war to rescue iron and steel prices from a
runaway market. The extraordinary demands of the Allies for
war-making steel, and the sudden potential demands of the American
Government, combined to squeeze short the civilian supply and start
prices skyward. Prices did, in point of fact, attain a peak in July,
1917, without precedent in the epochal year 1899, or in earlier iron
and steel history. The Government and everyone saw then a need
to do something, and they began considering how best to make the
market stable.
An analysis of price control within the iron and steel group, then,
entails a comprehension of the runaway market in 1917; the dis-
position to control iron and steel prices reached both by the Govern-
ment and the industry ; the kinds of problems facing the Government
in assuming control ; the raw-material prices fixed on September 24,
1917; the semifinished-product prices fixed on October 11, 1917; the
finished-product prices fixed on November 5, 1917; and the deter-
mination of differentials upon these basic prices.
The runaway steel market in 1917. A careful study of the war-
time prices of the basic raw materials of the iron and steel industry
(iron ore, coke, pig iron, scrap steel, steel billets, "steel bars, steel
shapes, steel plates, steel rails, steel spikes, steel skelp, rivets, cast-
iron pipe, steel hoops, steel sheets, tinplate, wire rods, and wire
fence), and especially of those most used in making war, shows
clearly that iron and steel prices held steadily below their prewar
level for a full year after Europe started war. The market then,
however, became sensitive and prices, in the main, began soaring.
The open market price of Connellsville coke, for example, which is
a principal factor in the price of pig iron, jumped from $1.67 per
ton in September, 1915, to $12.25 in July, 1917, with but two set-
backs. The price of basic pig iron itself began rising in June, 1915,
when it was selling for $12.59 per ton, and climbed steadily to $52.50
per ton in July, 1917. Bessemer steel billets jumped in a straight
line from $19.50 per ton in May, 1915, to $95 per ton during June and
July, 1917. Structural steel shapes rose from 0.012 per pound in
December, 1914, to 0.062 per pound in July, 1917. Steel tank plates
shot from $1.22 per hundredweight in July, 1915, to $9 per hundred-
weight in July, 1917. 2
But even these phenomenal rises are less impressive than the
index number constructed to reflect a grand average of the whole
steel market. An index number for the iron and steel group, includ-
1 The control of iron and steel, and their products was begun, and put well under way,
by the War Industries Board before the creation of the price fixing committee in March,
1918. The whole subject is treated here, however, for the sake of continuity.
2 Quotations from Iron Age of open market prices. The contract prices, which are not
available, of course underwent less violent fluctuations.
246
HISTORY OF PRICES DURING THE WAR.
ing 88 leading iron and steel prices and weighted to assign each
commodity its due influence upon the final average, has been pre-
pared to measure the general trend of iron and steel prices away
from their prewar level, from January, 1913, to December, 1918.
For later reference this index number is here shown for the months
subsequent to the peak point in July, 1917, as well as before. 1
WEIGHTED INDEX NUMBERS OF PRICES.
IKON, STEEL, AND THEIR PRODUCTS AND " ALL COMMODITIES."
Month.
1913
1914
1915
1916
1917
1918
Iron and steel and their products:
January
121
95
89
138
235
218
February
120
98
90
143
238
218
March. .
119
97
90
160
254
218
April
116
96
91
164
274
217
May...
115
93
92
161
294
217
June
113
92
93
162
344
218
July
112
92
97
164
370
218
August
111
93
103
168
346
219
September . .
108
95
108
170
310
219
October
104
92
111
175
243
222
November
98
90
117
202
218
222
December
96
89
131
221
217
217
Quarters:
First
120
97
90
145
242
218
Second.
114
94
92
162
306
217
Third
110
93
103
167
342
219
Fourth
99
90
119
198
226
220
Years '
111
93
101
168
279
218
* All commodities":
January
103
100
100
115
148
185
February
102
100
100
118
151
187
March
102
99
100
121
156
188
April...
101
98
100
123
170
191
May
100
97
100
123
178
190
June
100
97
100
122
183
189
July.... -
100
97
102
123
189
193
August
101
101
102
125
187
196
September
102
101
102
127
186
201
October
102
99
104
132
183
201
November
102
98
107
141
183
201
December.
101
98
111
144
182
203
Quarters:
First . .
102
100
100
118
152
187
Second
100
97
100
123
177
190
Third
101
100
102
125
187
197
Fourth
102
98
107
139
182
202
Years
101
99
102
126
175
194
1 The index number for iron and steel prices is made of the monthly averages from
January, 1913, to December, 1918, of 88 separate and more important commodities,
ranging from the raw material to finished product state, which make up the iron and
steel group. In order not to allow extraordinary rises within less important com-
modities an undue influence upon the index number, each commodity was weighted, by
multiplying each of its monthly prices, by the amount produced in 1017 plus the imports
for that year. The aggregates thus found were then turned into relative prices on a
prewar base, by accepting arbitrarily as 100 the average aggregate from July, 1913, to
June 30, 1914. The index number includes the following commodities of one or more
series : Iron ore, coke, pig iron, steel scrap, steel billets, steel bars, iron bars, steel
shapes, steel plates, steel rails, steel spikes, rivets, steel skelp, cast-iron pipe, steel
hoops, steel sheets, tinplate, wire rod, wire fence, adzes, anvils, augers, axes, braces,
butts, calks, chain, chisels, cutlery, files, gimlets, hammers, hinges, hods, hooks, hooks
and eyes, knobs, locks, lock sets, nails, pans, pails, planes, punches, rasps, rings and
ringers, saws, screws, shaves, shoes, shovels, spoons, springs, staples, swages, tongs,
traps, trowels, trucks, turns, vises, washers, wedges, wheelbarrows, wire. See " Prices
of iron, steel, and their products," by Walter W. Stewart (War Industries Board Price
Bulletin No. 33).
GOVERNMENT CONTROL OVER PRICES.
247
1O1O I
WDCHTO 1HEEX NUMBBTcr PRTC8S OP
IRONXSTCCL .
~4\LL COMMODITIES
The iron and steel market, according to these comprehensive figures
remained safely below its prewar level for a year after war broke
out in Europe. It then mounted steadily, without a single note-
worthy setback, to the historic peak attained for steel prices in July,
1917, at 270 per cent above the
prewar level. That rise was out
of all bounds with the point
reached by the " all commodities "
index number for the same month
at 89 per cent above its prewar
level. 1 Iron and steel prices, by
midsummer of 1917, when the
Government began seriously to
lay its hand upon them, were
literally running away.
The disposition to control iron
and steel prices. The runaway
steel market, coming just at a
time when the Government was
beginning to anticipate extraordi-
nary requirements of steel for war-
making purposes, gave alarm to
the President, the Congress, and
the more sober element of the steel
industry. It became obvious that
the Government, in order to as-
sure itself and the Allies steel at
reasonable prices, would need to
6V MONTHS
1915 I 1914 I 1013 | 1016
.M.JJ.. M-iw..M.i.M..i
Jfltt
aaac:
ffi
Weighted index numbers of prices.
Iron and steel ; and "All Commodities."
By months, January, 1913, to December,
1918. (Average quoted prices, July,
1913, to June, 1914=100.)
take a more radical action than
had previously been determined
upon. 2
The policy of the President and
his war officials. The determined
stand made by the President upon
price control, in the official state-
ment of July 12, 1917, came just at the time when steel was at its
highest point, and affected generally the disposition toward exces-
sive profit taking. It, therefore, hastened steel control. The Presi-
1 The " all commodities " index number, weighted in the same way, represents 1,366
individual commodities within the food, clothing, rubber, paper, fiber, metals, fuels, build-
ing materials, and chemicals groups. (See " History of Prices during the War, Sum-
mary," by Wesley C. Mitchell, War Industries Board Price Bulletin No. 1.)
2 A special board, appointed by the Secretary of War " for the purpose of investigating
and reporting upon the feasibility, desirability, and practicability of the Government
manufacturing arms, munitions, and equipment," made public their conclusion Jan. 9,
1917, advising a reliance upon private industry.
248 HISTOKY OF PRICES DURING THE WAR.
dent declared unqualifiedly for a "just price" and declared that
those s
who do not respond in the spirit of those who have gone to give their lives for
us on bloody fields far away, may safely be left to be dealt with by opinion
and the law, for the law must of course command these things.
The President added succinctly that
the Government is about to attempt to determine the prices at which it will ask
you henceforth to furnish various supplies which are necessary for the prosecu-
tion of the war and various materials which will be needed in the industries by
which the war must be sustained. We shall of course try to determine them
justly and to the best advantage of the nation as a whole.
It is pertinent that the President, in making his statement, gave
assurance that the industries would be sustained at a point of ade-
quate production.
There followed in rapid succession an expression of views regard-
ing price control of iron and steel by various high officials. The
Secretary of the Navy said :
There is no justification for a tremendous increase in the cost of basic ma-
terials. The Almighty put these things in the ground, and the only additional
cost over normal times is in getting them out. Under the law the President is
authorized to fix a reasonable price for what is needed for the Government.
There is no disposition whatever to cause any hardship to the producers. We
are perfectly willing and intend to pay them a fair, even a liberal profit, but
we will not pay exorbitant prices, such as are being quoted in some instances.
The Secretary of War, after a conference with steel manufacturers
about the middle of July, 1917, declared for a control of iron and
steel which would " insure reasonable profits " and determined upon
" with reference to the needs of this vital and fundamental industry."
The chairman of the Shipping Board was reported to say that in
case the steel producers refused to accept the prices fixed on the basis
of the proposed cost investigation by the Federal Trade Commis-
sion, he favored the commandeering of all steel plants. The chair-
man of the Senate Committee on Interstate Commerce, whose com-
mittee had been charged to inquire into the high prices of certain
materials, said that
it had been demonstrated that competition was powerless to keep the prices of
the basic materials at the normal level ; that the result of the law of supply and
demand had been that an enormous demand had been precipitated upon a lim-
ited supply, and thus there was no limit to which the prices might soar.
Meantime a controversy over the prices to be paid by the Gov-
ernment for structural shapes and steel plates arose between the
chairman of the United States Shipping Board and the manager
of the Emergency Fleet Corporation, which resulted in a request
by the President that the Federal Trade Commission inquire into the
GOVERNMENT CONTROL OVER PRICES. 249
costs of producing steel. The manager of the Emergency Fleet
Corporation announced on June 16, 1917, that he had agreed pro-
visionally upon a price of 3.75 cents per pound for shapes and 4.25
cents per pound for plates, with the understanding that the com-
mittee on raw materials, minerals, and metals of the Council of
National Defense would later go into the question of costs and
determine an equitable return to the steel men. The chairman of the
Shipping Board, on the other hand, declared that these provisional
prices were $30 a ton higher than prices which the Navy Depart-
ment was paying for the same material, and that he, therefore,
would sign no contracts at those figures. The steel makers agreed
finally to furnish steel plates at a tentative price of 2.50 cents per
pound, pending the determination of a final price. Controversies
of this sort, to say nothing of other official opinion as indicated
above, were potent factors in persuading the President and the
Government to control iron and steel prices.
The Pomerene 'bill in Congress. The concern within the Govern-
ment over the steel situation was not confined alone to the President
and his war officials. The Congress, too, became uneasy, and
while the rampant steel market was on, Senator Pomerene of Ohio
introduced a bill providing for Government control over iron and
steel prices. The bill was designed to afford the President the same
power over the prices and distribution of iron ore, pig iron, steel,
and their products as the food and fuel act (Lever bill) had given
him over foods, feeds, and fuel. It should be said that the bill, in
some respects, contemplated even further control than that given
in the food and fuel act. The bill went so far as to provide that the
President should have power, whenever in his judgment it became
necessary
for the efficient prosecution of the war and for the purposes aforesaid, to fix
the price of iron ore, iron, steel, and their products 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, apportion-
ment, or storage thereof among dealers and consunfers, domestic or foreign. 1
It is noteworthy that the Pomerene bill made the Federal
Trade Commission, rather than the Council of National Defense,
the agency for exercising the presidential authority over iron and
steel prices and gave it an abundance of power to investigate costs.
The Pomerene bill, quite aside from these drastic provisions, gave
the President a commandeering power which struck fear in the
1 A full account of the provisions of the Pomerene bill is given in the Iron Age for
Aug. 16, 1917 ; that for Aug. 30, 1917 ; and an especially illuminating account of the
hearing on the bill held Sept. 21, 1917, by the Senate Committee on Interstate Commerce,
is found in the Iron Age for Sept. 27, 1917.
250 HISTORY OF PRICES DURING THE WAR.
minds of many producers. The President was authorized, when-
ever any producer or dealer failed to conform to his stipulated
regulations
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.
The discussion in the Congress of this bill, though it was never
made law, aroused the legislators quite as much to the need of iron
and steel control as the experience of the Executive and his Cabi-
net had aroused them.
The attitude of the iron and steel industry. It is not the least
significant of the factors which brought on control of iron and steel
prices, that the industry itself came to recognize the need for and to
desire control. It is not easy to trace the conversion of the iron and
steel trade to an appreciation of the need for Government inter-
ference, so gradually did it come. But by midsummer of 1917 the
more conservative factions of the steel industry saw only peril ahead
unless the Government brought stabilization to the market. By
late September virtually the whole industry was disposed to recom-
mend that a formal regulation begin.
No doubt an influence of consequence in changing the attitude of
the steel men toward control was their knowledge that the Govern-
ment was determined upon it. The Iron Age, a leading journal of
the industry, foretold Government regulation in its feature edi-
torial as early as June 28, 1917, although it then looked a bit askance
at the prospect. It said in part :
Predictions are becoming more and more common that it will become neces-
sary for the Government to regulate prices in the steel industry. The pro-
posal is glibly made, but it involves serious and far-reaching consequences.
* * * It is difficult to see how the fixing of maximum prices for this com-
modity or that could make the conduct of business more orderly.
That same journal less than a month later, July 19, declared:
What is certain is that the fixing of new prices by the Government is at
hand * * * the Government is not alone in wanting regulation of steel
prices. Many producers and buyers of steel have feared the consequence of
the ungoverned upward movement of the past six months.
and still a month later, August 30, it said frankly in another leading
editorial on the subject that
undoubtedly there are commodities the price of which the Government should
seek to reduce * * * undoubtedly the war necessitates practices that would
not be resorted to in time of peace, but such practices are no better than
necessary evils * * * it is no time for some to make inordinate profits and
add largely to their wealth, when the total material wealth is increasing less
rapidly than usual.
GOVERNMENT CONTROL OVER PRICES. 251
The preceding paragraphs have been extended to some length to
show the prevailing attitude toward iron and steel control before
it set in. It is of peculiar bearing upon the whole institution of
steel control that it came not until after the President, his war
officials, the Congress, and the industry itself believed that it ought
to come. The Government and the industry, then, were in a state
of mind to sit around the same table and determine together what
kind of control they wanted and how it should be exercised.
Problems facing the Government m assuming control. Even though
the Government, and subsequently the industry, had made up their
minds to a control over iron and steel prices by midsummer of 1917,
there were still several important technical questions facing the
Government in assuming that control. The Government had then
learned neither the technique of price fixing, nor the general policies
underlying it. It knew little more at the outset than that in de-
termining upon reasonable prices, it ought not to hamper the
production of steel. A host of inquiries made the Government
think seriously whether any prices fixed for its own purchases should
be made applicable to public purchases ; whether Government prices
should be extended to the Allies; whether the fixed prices should
be determined through a flat rate or a flexible cost-plus profit scale ;
whether the proposed fixed-price schedule would or not abrogate
outstanding contract price agreements; whether the Government,
in determining upon prices, should take cognizance of the incidental
labor, fuel, and transportation problems; and whether control over
the producers would take proper account of the middlemen.
Should control extend to civilian purchase. The President left
little opportunity for officials to disagree among themselves whether
the public should be made a party to war prices fixed for Government
purchases. The interpretation given by the President in his well-
known letter of July 12, left few doubts what attitude the country
might expect the Government to take in setting the prices for iron
and steel. In it he declared unequivocally that
We must make the prices to the public the same as prices to the Government.
Prices mean the same everywhere now ; they mean the efficiency of the Nation
whether it is the Government that pays them or not. They mean victory or
defeat.
The War Industries Board later in the summer indorsed heartily
that expression and thus, too, made clear its determination to follow
the President's lead. The problem was settled once for all by open-
ing to the public generally the full advantage of prices fixed by the
Government.
Should control extend to allied purchases. The War Industries
Board did not, moreover, hesitate long to extend to the Allies gen-
252 HISTORY OF PRICES DURING THE WAR.
erously the advantages to be had from price regulation within the
iron and steel groups. The earlier policy of the President again
dominated the policy of the board in announcing finally that 1
It is the purpose of the War Industries Board to carry out the policy recently
announced by the President * * * that in the purchase of war materials
in this country our allies shall be charged no more than our own Government
lias to pay. * * * But this policy has two important limitations. First, it
must be reciprocal. The Allies must henceforth apply the same principle in
dealing with their own producers and in selling to us and in selling to each
other. Second, the arrangement must be limited to war materials, in order
to protect our own industry. We must not allow raw material sold by our
producers at prices patriotically conceded to our own Government and its
allies for war purposes to be diverted to industry and trade abroad which may
come in competition with our own manufacturers and producers.
The decision to extend prices fixed for Government purchases to
the allied purchases came with but little more hesitation than that
to extend them to public purchases.
Flat rate or cost plus pro-fit scale. There was not a little disturb-
ance among officials at Washington over the problem whether prices
for iron and steel ought to be fixed at a flat rate, applicable alike to
high and low cost producers, or determined variously by use of a
flexible scale allowing each producer a certain profit above his legiti-
mate costs. The proper basis for determining upon a fixed or maxi-
mum price for iron and steel was by no means clear to the Govern-
ment even when it came to the very threshold of control.
The Federal Trade Commission, for the purpose of helping to
solve the problem, had been requested to submit current figures show-
ing the cost of production. But it was not then known whether cost
data should be adopted as a basis for price fixing or, if so, what costs.
The Federal Trade Commission figures showed nothing so clearly as
that there was no uniformity in the costs of various producers. The
difference in costs of production was made only the more confusing
and complicated by testimony given at the time before the Senate
Committee on Interstate Commerce by Joseph E. Davies, of the
Federal Trade Commission. It was brought out that there were
not only varying costs within each class, but also as between four dis-
tinct classes of iron and steel producers based upon their degree of
integration. There were, in other words, those owning their own ore,
transportation facilities for shipping it, blast furnaces, rolling mills.,
and works for the manufacture of the finished products; those who
bought their ore and coke in whole or part, but controlled the other
stages of production ; those who purchased their pig iron, but manu-
factured their own steel ; and those who bought their steel ingots and
billets and rolled their oAvn plates, shapes, and other products. 2 The
1 Iron Age, Aug. 16, 1917. 2 Iron Age, Sept. 27, 1917.
GOVERNMENT CONTROL OVER PRICES. 253
commissioner showed that producers within the first of these classes
generally have the lowest costs, and that those within the last class,
which make up a fair percentage of the total number of producers,
have the highest costs.
These data, and others like them, made the Government exceed-
ingly fearful of reducing prices to a strict cost basis, lest, through a
scaling clown of prices, the production be diminished. It was at
one time suggested that there be devised a pooling agreement be-
tween producers which would provide that the profits of low-cost
producers be shared with those of high-cost producers. The para-
mount desire of the Government to maintain production of steel
at its maximum made it take no chance with too drastic measures.
It, therefore, determined to fix the maximum prices by a flat rate
and at a point high enough to keep substantially in full operation
every mill and blast furnace which contributed appreciably to the
country's supply. 1
Should higher contract prices already made be abrogated. There
had been made during the market earlier in 1917 contract agree-
ments for iron and steel at prices much higher than the Government
contemplated fixing as a maximum. It was believed that the Gov-
ernment, in fixing prices lower than outstanding contract prices,
could not abrogate those contracts. The concern within the Govern-
ment, however, and the industry over this problem turned chiefly
upon the advantages which would accrue to buyers who had not con-
tracted ahead and could, under the fixed-price schedule, buy cheaper
steel than had their competitors just two months earlier under con-
tract agreement. This problem resolved itself into a simpler one as
time passed because of the moderate policy adopted by the Govern-
ment and the fair point at which steel prices were put. The Govern-
ment finally gave the industry full assurance that all past contract
obligations should be carried out as agreed upon. 2
Should the Government recognize the labor, fuel, and transporta-
tion problems. It is noteworthy that the Government, when it set
about controlling steel prices, was confronted at once with the solu-
tion of incidental labor, fuel, and transportation problems that had
for some time puzzled the industry. The Government found it neces-
sary to take into its deliberations a consideration of these very ma-
terial factors which help to determine the market price of steel.
Should account be taken of the middlemen. The concentration of
iron and steel production in the hands of relatively few producers
made it simpler to control prices at the source than in some other
1 See article by Abraham Berglund on " Price Fixing in the Iron and Steel Industry,"
in the Quarterly Journal of Economics for August, 1918.
a Iron Age, July 19, 1917, p. 142. See also ibid., Oct. 4, 1917, p. 832.
254 HISTORY OF PRICES DURING THE WAR.
industries. A price may be fixed for a producer, but where the
product passes through the hands of the jobber to the ultimate con-
sumer the jobber's interest in the fixed price is that of purchaser and
not that of seller. An interesting phase of this problem was the at-
tempt of the American Steel & Wire Co., which controls over half
the wire output of the country, to check the upward movement of
prices by selling wire nails at $3.20 per keg when they were quoted
at $4 per keg. Independents in several cases were selling wire nails
at $4, and the jobbing trade began basing its sales to retailers on
the $4 price at mill. Thus in several instances $4.50, and in Phila-
delphia $5, were charged on sales to retailers.
The practices of trade with reference to dealers or jobbers were
also phases of the same problem. Furnace coke is not usually sold
through dealers, whereas the great bulk of foundry coke is. In fix-
ing the necessary differential between furnace and foundry coke the
dealer's compensation should be provided for. Again, a rule applica-
ble to one class of dealers may not be applicable to another class.
Foundry coke and steel bars or plates are both sold through dealers,
but there is no relation whatever between the dealer in coke and
the dealer in steel bars and plate. In the case of the former, busi-
ness is often done on a brokerage basis, whereas in steel bars there
is practically no brokerage business. There is, furthermore, the
divergence with reference to price practices. The coke dealer or
broker frequently buys at an inside price, or something less than
that at which the coke operator would sell directly to a consumer,
while the jobber in steel products often pays a higher price than
that at which the mill sells direct to the large consumer. It is the
usual case in a rising market for mills to sell bars, sheets, etc., for
shorter periods to jobbers than to manufacturing consumers. The
jobber pays a higher price, but his business is profitable because he
furnishes deliveries. The middleman in certain branches of the iron
and steel trade is still a problem, and there has been some disposition
to criticize the price-fixing policy of the Government in largely ignor-
ing the importance of the jobber and trade practices of the kind
referred to. It must be said, however, that over a great part of the
industry the middleman does not play anything like so important a
role as in many other industries, and the problem of regulating prices
in intermediate sales has been on the whole relatively simple. 1
Raw-material prices fixed September &4i 1917. Events fore-
shadowing a control over iron and steel came fast and thick at the
War Industries Board, after the middle of September in 1917. Mr.
J. L. "Replogle, at the request of the board, on September 14, submitted
1 The materials for this paragraph on the middlemen (based upon the Iron Age, July
19, 1917, p. 146, and ibid., Oct. 4, 1917, pp. 828, 829), were taken bodily from Mr.
Berglund's article.
GOVERNMENT CONTROL OVER PRICES. 255
a report of the iron and steel situation, urging that the steel men be
called at once to Washington for a conference, that an immediate
step be taken to alleviate the chaotic steel situation, and outlining in
more detail the condition peculiarly demanding maximum production
of coke, pig iron, sheared plates, shell steel, billets and rounds. It
was recommended, furthermore, that there be fixed upon those items
prices to take effect "at the earliest possible date." 1
1 The text of Mr. Replogle's report follows :
In compliance with your request, I inclose herewith a memorandum showing my ideas
as to prices on various iron and steel products. Whatever prices are determined upon
should be put into effect at the earliest possible date, as conditions in the steel line
are in an extremely chaotic condition, and I believe many manufacturers in anticipation
of what they consider very low prices to be established on steel products, are giving
right of way in their mill operations to the more profitable product suc^h as are pur-
chased by the automobile manufacturer who is willing to pay the exorbitant prices
asked if he can secure delivery, with the result that too much steel is going into non-
essentials and entirely too little into war necessities.
Certain manufacturers * * * have given us every cooperation, while others have
shown a very indifferent attitude. Despite the fact that the output of * * * is only
about 50 per cent of the total capacity of the country, they have taken approximately
70 per cent of all the orders placed by the United States Government and in many
cases the prices were far below their competitors, and in all cases where asked to do so,
they have' taken orders subject to the Government prices to be established, based on the
Federal Trade Commission report as to cost. When prices are established and priority
schedules are out, I believe most of the others will fall into line.
Products most essential to war. The products most essential to the war and on which
we must have the maximum production are coke, pig iron, sheared plates, shell steel
billets and rounds. I believe on the products most needed that it would be well to es-
tablish a stimulating price, as in most cases a steel manufacturer has a finishing capacity
far in excess of his ingot capacity, this being due to the fact that in normal times one
line or another may be Inactive and the demands on other products will be such that he
can work up through other lines his entire ingot production.
The situation on the various products is about as follows :
Coke. The total production of coke in 1916 was approximately 54,000,000 tons,
about 35,000,000 tons or 65 per cent of which was Beehive coke and about 19.000,000
or 35 per cent being made in by-product ovens. Owing to the Insufficient car supply and
shortage of labor, the production of Beehive coke has fallen off in a very serious way
during the past five or six months, with the result that the price has gone as high as
$17 at the ovens, as compared to an average price of about $2.20 during the past 10
years. The Connellsvllle ovens are now running at the rate of about 70 per cent ca-
pacity, and are losing about 20 per cent of their output on. account of labor shortage
and 10 per cent on account of car service and other causes. Coke will be, I think, the
limiting factor in our iron and steel production, although the shortage of iron ore may
also be a contributing element.
Iron ore. On Sept. 1, the shipment to lower lake ports was about 3,000,000 tons less
than the same time last year, this being largely due to the late opening of lake naviga-
tion and insufficient vessel capacity and more particularly, inadequate car service at
lower lake points. This matter Is receiving every consideration by the ore committee,
but I strongly recommend that the movement to take about 86 vessels from the Great
Lakes for use in ocean traffic be dropped, as the boats are badly needed for the ore
carrying trade. In order to take them through the Welland Canal and make them
serv'jeable, an enormous amount of labor and money would be necessary to cut them in
half and repair them and even after this was done, they would not be suitable for ocean
traffic. I understand that of the 86 boats under consideration, 37 of them are packet
boats which can be spared. The ore consumption in 1916 was approximately 57,000,000
tons, and the annual capacity now with about 19 new furnaces in blast is about 64,000,000
tons, and if the 86 boats are taken from the lake trade, it wtould cut their tonnage to
the extent of probably 3,500,000 tons annually, which would seriously cripple the
industry.
Pig iron. The output for 1916 was approximately 39,500,000 tons, but the produc-
tion of iron in the first half of this year was considerably under the previous six months,
this being largely due to the shortage of coke and labor. Most of the furnaces make
256. HISTORY OF PRICES DURING THE WAR.
The War Industries Board, four days later, called its committee 1
into a special meeting and asked for views of the proper method to
be followed in fixing the price of steel. The committee reported
that they had examined the cost figures found by the Federal Trade
Commission on coke, iron ore, pig iron, and steel products. They
believed in general, however, that those > 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
<RQ 6Q3
<$3 445
17 2
No 2
3 764
9 17
8 084
1 086
d 10 723
10 7
No 3
9 080
9 31
7 269
2 041
3 090
50 5
No 4 &
12 743
10 83
8 549
2 281
7 775
29 5
No. 5
6,787
8.67
6.297
2.373
d 12 870
18 1
No 6
4 971
9 86
6 240
3 620
3 120
115 3
No. 7
5.025
10.23
6.181
4.049
d 12.894
31 4
No 8 &
9 636
10 91
5 727
5 183
2 198
235 8
No 9 c ...
6,234
10.12
4.538
5.582
4.812
116.5
No. 10 *
17,387
11.31
5.183
6.127
4.125
148.4
No 11 b
16,298
11; 26
4.910
6.350
2.732
232.0
No. 12 b
10, 475
10.62
3.922
6.698
2.434
275.1
A verage
10.25
6.415
3.833
5.926
85.8
a Companies range in order of margin per case, fro:n low to high.
& Eleven-month periods.
c Ten-month periods.
(i Heavy investment due to output being less than the still's capacity.
GOVERNMENT CONTROL OVER PRICES. 385
of 1918, asked various leading economists familiar with the price
problems at Washington, and the members of the price-fixing com-
mittee, to present memoranda upon the respective advantages of
fixing a variable and a single price. These opinions, made by men
peculiarly qualified by war-time experience to judge the practical as
well as the theoretical aspects, are worthy of analysis. There follow
the memoranda given by Dr. F. W. Taussig, member of the price-
fixing committee and chairman of the United States Tariff Commis-
sion; Lieut. Col. Robert H. Montgomery, representative of the War
Department upon the price-fixing committee ; Mr. Wesley C. Mitchell,
chief of the price section of the War Industries Board; Mr. William
B. Colver, member of the price-fixing committee and chairman of
the Federal Trade Commission ; Mr. W. F. Gephart, of the United
States Food Administration ; Mr. H. M. Channing, chief of the legal
section of the War Industries Board; and, finally, Mr. Robert S.
Brookings, chairman of the price-fixing committee.
1. Dr. F. W. Taussig, chairman of the United States Tariff Com-
mission and member of the price-fixing committee, wrote the follow-
ing memorandum on the question of " Uniform or varying prices " :
(1) If differences in cost of production between different producers were
(a) Clearly ascertainable.
(ft) Due solely to differences in the natural resources utilized by them, it
would not be impracticable to purchase from them at prices based on their
differing costs.
As a matter of fact, neither of these conditions is ever present. In the
first place, costs are not clearly ascertainable. They vary from month to
month, from year to year. We get figures from cost accountants which are
worked out to the last cent, but which, as a matter of fact, contain arbitrary
and debatable elements. Any endeavor to pay to each producer according to
his costs would lead to perpetual wrangling, perpetual requests for changes
and modifications. In the second place, differences in cost are by no means due
solely to differences in natural resources. They arise very largely from differ-
ences in skill, energy, efficiency. To pay a low price to a producer who has
brought down his costs through skill and ability is to penalize the most effective
form of human effort.
(2) Sale at varying prices is in any case not practicable. If the Govern-
ment fixes a price, it must be a price uniform for all producers. Were this
not the case, there would be constant squabbling and intriguing for favored
position.
(3) The main problem is that of purchase, and I am unable to see the
practicability, as conditions of production stand to-day, of carrying out a policy
of purchase at varying prices. The only possible way of carrying it out would
be for the Government to take over all the establishments and try to run
them. Quite apart from the constitutional questions involved (as regards the
fair price which the Government must pay for each plant) the actual adminis-
tration and running of an enormous variety of plants would be a hopeless task.
(4) The only feasible plan in price fixing is that of establishing a uniform
price, which should ordinarily be paid for the whole of the output.
The uniform price which the Government thus must fix is not necessarily the
cost of production price. It need not be either an average cost of production
125547 20 25
386 HISTORY OF PRICES DURING THE WAR.
price or a marginal or " bulk line " cost. The Government might be expected
under ordinary conditions to pay the market price that would obtain in the
absence of regulation, irrespective of cost. Under conditions of war stress and
war exigency, however, the Government must pay for an essential commodity
that price which will maintain and, if possible, stimulate the volume of pro-
duction. Such a stimulating price is not far from the marginal or "bulk
line" cost.
There will always be sporadic producers having very high costs, higher than
the " bulk line," who may be disregarded. It is conceivable that in extreme
need for a particular commodity the Government will make some special bar-
gain with the small number of high-cost producers. But such transactions are
extremely dubious and are to be avoided except in the extremest urgency. As
regards them, it must be made out that the very high cost of the producers is
not due to slackness or inefficiency on their part but to poor natural resources,
and that the payment is indispensable for the maintenance of a supply abso-
lutely needed.
2. Lieut. Col. B. H. Montgomery, representative of the War De-
partment on the price-fixing committee, submitted the following
memorandum on the " Fallacy of attempting to pay a different price
for the same thing as applied to a basic commodity and an entire
industry " :
(1) I strongly object to any arrangement Avlrich will result in paying ono
producer of a standard article or commodity a higher price than is paid to
another producer of the same thing, for the following reasons :
Any plan which purports to limit the profit of each producer
(a) Ignores the sound, economic, differential to which the low-cost efficient
producer is entitled ;
(?)) It is in effect a return to, rather than a departure from, the cost-plus
system. The War Department's present policy in this respect is to avoid cost-
plus contracts whenever possible;
(c) Penalizes the low-cost producer by placing him on an equality (as to
profits) with the high-cost producer. Such a penalty is in direct violation of
existing intelligent business methods;
(d) Places a premium on the high-cost producer, who is the one to be
penalized, and actually encourages a continuance of inefficient, extravagant,
wasteful management ;
(e) Purportedly gives the Government an opportunity to buy at a low price
from the low-cost producer, without any guaranty, however, that the low-
cost producers will continue to be low cost. With a penalty on low cost and
a premium on high cost, is it not reasonable to predict that the low-cost man
will inevitably increase his costs fraudently or because he makes as much
money on high costs as on low costs, and can pay as much as he likes for sup-
plies, labor, etc.?
(/.) Can not be effectively administered, because it is expected that the
machinery of control will include a system of reports and inspection emanat-
ing from hundreds of producers, who have every interest to overstate their
costs. The available supply of skilled accountants in this country is exhausted.
The present demand from legitimate sources greatly exceeds the supply. My
familiarity with this matter leads me to object to setting up a system of control
which is not operatively possible;
(#) Presupposes that fair maximum prices can not be fixed. This is a
familiar argument and is of academic interest only and can not control our
GOVERNMENT CONTROL OVER PRICES, 387
action, because every business man thin-ks that his problems are more complex
than those obtaining to other businesses. As they can not all be right, the argu-
ment falls through of its own weight.
(2) I am strongly in favor of limiting the profits of all contractors who sell
to the Government to a reasonable return on capital invested. Over a year
ago the war committee of the American Institute of Accountants, of which I
am a member, unanimously adopted a recommendation to this effect, but we
could not secure its adoption. We are now forced to fix a price which will
apply to the Government and public alike. When dealing with an entire indus-
try the elements underlying public price fixing are not comparable with the
ability of the Government to supervise individual contractors. I think the
individual contractor can be regulated, although we have a big uncompleted
job on our hands in this respect.
I do not think we can regulate the costs and methods of 100 per cent of any
industry. I do not think that we can fix fair maximum prices on representative
grades, etc., and regulate such prices.
The differences between regulating costs and processes (which are secret)
and regulating prices (which are public) are, in my opinion, vital and con-
trolling.
(3) As the War Department representative on the price-fixing committee, I
expect to maintain the position that a policy of fixed profit per unit, without
limitation on costs and extending to an entire industry, is unwise and con-
trary to the best interests of the Government and the industry affected alike.
That a failure to encourage and reward the low-cost efficient producer would
be a step backward which the War Department will not stand for, because
without recognition he will cease to exist.
3. Wesley C. Mitchell, chief of the price section of the War Indus-
tries Board, submitted the following memorandum relative to " One
Price for Each Commodity versus a Graded Scale of Prices/'
DIVERSITY OF PRICES PREVAILING UNDER NORMAL PEACE-TIME CONDITIONS.
On any given day each of the great staples is sold at several or many different
prices.
(1) Varying grades, of course, command different prices.
(2) So, too, .do large lots and small lots of a given grade.
(3) There are differentials between different markets.
(4) Original producers, local buyers, manufacturers, commission houses,
wholesalers, retail dealers, etc., in turn charge higher prices than they paid.
(5) There is often a wide difference between current market quotations and
contract prices.
(6) Cash prices are usually lower than prices which involve waiting for
payment.
(7) Even the same class of dealers selling the same grade of the same
article in the same amounts in the same market on the same day do not all
receive the same price. This last proposition is particularly important during
a period of extraordinary changes, such as we had in 1916 and the first half of
1917.
These diversities are standardized rather than abolished by a single-price
policy.
The adoption of a single-price policy does not mean the abolition of the
above-listed differences. It usually means that all business men of a given
class (for example, all copper miners or all shoe manufacturers) receive prices
388 HISTORY OF PFJCES DURING THE WAR.
that vary in standard ways from a single base price. Differentials for grades,
markets, time of payment, size of purchases, etc., may be more or less stand-
ardized, but they are not eliminated. Further, the base prices are usually
merely maxima, and anyone can charge less if he chooses.
Aside from the fact that the base price is fixed by Government instead of by
contract, the chief changes from peace-time conditions are probably that
(1) Day to day fluctuations are reduced, if not eliminated ;
(2) There is less difference between the bargains struck in a given market
on a given day ; and
(3) Current market quotations and contract prices (under new contracts at
least) keep closer together.
A graded scale of prices would be more of a departure from peace-time con-
ditions than a single-price policy. For it would mean giving to different pro-
ducers prices which vary by margins, not based on differences recognized in
ordinary business, but on some other ground, particularly differences of cost.
In ordinary business, the fact that a man produces at higher cost than another
does not enable him to get a higher price. The crux of the practical problem
is whether public policy requires the price-fixing committee to introduce into the
business system a revolutionary change by making differences of cost a reason
for corresponding differences of prices.
Circumstances whieli may justify prices graded according to costs. In. some
cases it may be necessary to stimulate production to the utmost and to restrict
ordinary civilian consumption. The most effective means to that end is a
single base price so high that all productive capacity will be used, and so high
that economy must be practiced in consumption. Of course, that plan gives
low-cost producers extraordinary profits an objection that is only partially
met by the excess-profits tax, since this tax always leaves part of the extraor~
dinary gains to the fortunate enterprise.
In other cases, it may be necessary to stimulate production, but not to re-
press civilian consumption. Indeed, one chief aim of regulation may be to
||keepjlown costs to the_QiLSumer. The high single price would accomplish the
first end but obstruct the second. A graded scale of prices, however, might be
arranged to call out the bulk of the low-cost production at a moderate rate,
and also to get a certain amount of high-cost production at a different figure.
But how can consumers get the benefit of the moderate price, and at the same
time let the high-cost producers have a remunerative market? I see no way
except to arrange a Government-buying monopoly, that would take over the
whole product, at different prices, then average the costs, and sell at a figure
which would just cover the outlay plus administrative expenses. Such a course
/*may be feasible in the case of a few great staples, like sugar, but it is scarcely
feasible as a general policy applicable to commodities at large.
Effect of the two systems upon efficiency. A graded scale of prices, if car-
ried out in full detail, is practically a " cost-plus " system of Government pur-
chases. That system has been tried out and displaced because it gives an in-
centive to wasteful and inefficient management.
The single-price policy, on the contrary, is like the ordinary competitive-price
system in stimulating efficiency, at least in those cases where the price-fixing
committee is not compelled to set their price very high. A moderate price will
often enable three-quarters or more of the product to be turned out at profits
ranging from the liberal to the moderate, put perhaps 10 per cent more of the
producers on their mettle to break even, and put the remaining 15 per cent of
least efficient producers out of business to the advantage of the community.
GOVERNMENT CONTROL OVER PRICES. 389
Conclusion. (1) A single-price policy, allowing differentials for quality, trans-
portation, size of transaction, terms, credit, and margins between manufac-
turers, wholesalers, and retailers makes less of a departure from normal busi-
ness conditions than a graded scale of prices based on differences of cost would
make.
(2) The latter policy, however, may be desirable in the case of a few prime
requisites where there is the double need of stimulating production to the ut-
most and keeping down cost to the consumer. To achieve both these results,
however, is scarcely possible without setting up a Government monopoly for
buying the total output and distributing it at a uniform price.
(3) In the great majority of cases, the single-price policy is to be preferred,
because of its simplicity a great point in view of the administrative perplexi-
ties which the price-fixing committee confronts.
(4) Finally, the single-price system is more favorable to industrial efficiency
than the graded price system at least, when the price taken is not very high in
the scale of costs. Excess profits taxes will turn part of the large gains of low-
cost producers into the Public Treasury.
Summary. (1) A single-price policy allowing differentials for quality, trans-
portation, size of transaction, terms of credit, and margins between the manu-
facturer, wholesaler, and retailer makes less change from normal business
conditions than a graded scale of prices based on differences of cost would
make.
(2) A scale of prices graded according to costs, however, may be pre-
fe r.able in the case of a few prime requisites, when it is necessary both to
stimulate production to the utmost and to keep down costs to the consumer.
To achieve both of these ends, however, it seems necessary to supplement
price fixing by creating a government buying monopoly to take over the entire
output, average the costs, and distribute the goods at a uniform price.
(3) The single-price policy requires no such elaborate machinery and is
therefore far simpler to administer, to explain, and to defend.
(4) Excess profits taxes partially remove the objection that the single-
price policy gives government favors to the low-cost producers. On the
other hand, the graded scale of prices carried out to its logical conclusion
is practically equivalent to the " cost-plus " system, which has been aban-
doned on government contracts because it offers an incentive to wasteful and
inefficient management.
4. Mr. William B. Colver, chairman of the Federal Trade Com-
mission and member of the price-fixing committee, wrote the follow-
ing memorandum on the question of "A single price as opposed to a
pooling with varying prices " :
I beg to submit for your consideration some observations as to price fixing
and the theory of the single price as opposed to a pooling with various prices.
It would seem that price fixing has two and only two purposes
(1) To insure adequate production; and
(2) To guard against a price structure which shall be so. high as to be un-
healthy.
In applying the single-price theory, it is held to be necessary, in order to in-
sure the required production, to fix a price high enough to make profitable the
operation of marginal, high-cost producers. It follows that in meeting the first
requirement, namely, the insurance of adequate production, we defeat the sec-
ond purpose, namely, the avoidance of an unduly high price structure.
I raise the question now whether or not, in the light of experience, the single-
price theory, as put into practice, has been successful.
390 HISTORY OF PRICES DURING THE WAR.
Some difficulties that have followed this practice may be enumerated as
follows :
First. A maximum price becomes a minimum price, and few will voluntarily
sell under the maximum price even though low-cost producers might well
afford to do so. Not only lias this practice been approved but it has been aided
and abetted by a declaration that the Government itself will not accept volun-
tary offers of commodities at prices lower than fixed prices. This would
seem to be a complete inversion of the second purpose of price fixing.
Second. The single price, lest it shut off the needed production, must be
high enough to give profit to the highest cost producer that it is desired to con-
tinue in business.
Third. The consequent price is far above the price indicated by the average
cost of production.
Fourth. The cost of living and the cost of secondary manufacture is made
? unnecessarily high and the mounting prices become a vicious circle constantly
spiraling upward. ?? ?
Fifth. Such single price, while producing excessive profits for low-cost con-
cerns, does not necessarily stimulate production but actually acts as a check
on production. (This will be attempted to be shown in detail hereafter.)
o Sixth. The single price tends, in the case of low-coj_ producers, to encourage
wastefulness and extravagance and to check rather than to stimulate pro-
duction.
It is held that high prices stimulate production and are purged by the
application of drastic excess-profit taxes. Let us examine this.
Assuming that higher prices do stimulate production (though under the
jircumstances here under consideration this does not seem beyond dispute),
increased production, under ordinary circumstances, invariably makes for >
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
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a *
]
t
1 1 s
S X
5 \
.(&
BOO
X
~*L
*;^*
5
rt^
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^
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5
5
r**
m
V
J
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f
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g
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X
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-
5
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^.
=
^_
5
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1
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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
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490
HISTORY OF PRICES DURING THE WAH.
I
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GOVERNMENT CONTROL OVER PRICES.
. 497
O *3^^
Ilia
?SaS
6
.8*1
125547 20 32
498
HISTORY OF PRICES DURING THE WAR.
T"
35C
GOVERNMENT CONTROL OVER PRICES.
499
I
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ig
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UJ* 1 - (LI
SF-
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SUJ
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500
HISTORY OF PRICES DURING THE WAR.
CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICES.
[Showing weighted rise or fall, by per cents, of controlled and uncontrolled prices for each month of the war.]
All commodities.
Food group.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
1366
1366
1366
1366
1366
1316
1300
1100
1072
1048
1014
1004
979
897
885
821
796
794
793
793
793
1917.
April with March..
May with April....
June with May
July with June
August with July . .
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Feb-
ruary.
April with March.
May with April...
June with May
July with June
August with July .
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
+9.73
+4.44
268
268
268
268
268
256
247
83
83
83
54
54
54
54
54
54
54
54
54
54
54
1917.
April with March . .
May with April
+ 13.21
+ 7.38
- .79
+ 4.20
- 1.35
+ 4.75
+ 1.92
+10.24
+ 3.35
+ .45
+ .36
+ .40
+ 2.33
+ 1.53
+ 4.36
- .15
- .04
+ .52
+ .66
+ 3.59
+ .42
+4.13
+4.23
1.61
June with May
July with June.
August with July
50
66
266
294
318
352
362
387
469
481
545
570
572
373
573
573
-8.05
-14. 78
- .12
-4.60
+ 1.25
+ 1.66
- .90
- 1.53
- 2.22
- 1.45
+ 2.83
+ 2.25
+ 2.43
-1.63
- .27
+ 2.06
+ 1.94
+ 1.11
+3.64
+1.75
+1.72
+ .98
+1.66
+3.30
+ .74
+ 1.42
+ 1.42
+ .50
+2.08
+ .51
- .49
-1.04
12
21
185
185
185
214
214
214
214
214
214
214
214
214
214
214
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember. 1917.
February with Jan-
uary.
March with Feb-
ruary.
April with March..
May with April
June with May
July with June
August with July . .
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
-7.19
-1.95
+1.83
-5.77
+1.46
+1.99
-1.17
-2.83
-3.24
-1.85
+4.05
+3.03
+3.80
-2.48
- .53
+4.00
Clothing group.
Rubber, paper, and fiber group.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
409
409
409
409
409
409
409
409
409
409
409
409
409
342
340
287
271
269
269
269
269
1917.
April with March . .
+3.36
+2.07
+4.15
+6.41
+ 1.58
+ .03
119
119
119
119
119
119
119
119
119
119
119
111
110
100
100
100
99
99
98
98
98
1917.
April with March . .
+2.59
+ 1.65
- .23
-1.76
- .18
+4.16
- .36
- .49
- .45
+2.16
0.00
+ .92
+4.23
+4.54
+ 1.70
- .61
+ .92
- .02
+ .23
- .03
- .73
May with April
May with April
June with May
June with May
July with June..
July with June.. . .
August with July . .
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Feb-
ruary.
April with March
August with July
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Feb-
ruary.
April with March. .
May with April....
June with May
July with June
August with July . .
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
+ .85
+4.01
+1.51
+3.20
+1.11
+2.01
+3.95
- .39
+ .92
+2.78
+ .13
+3.81
+ .54
-1.78
-1.78
8
9
19
19
19
20
20
21
21
21
-0.26
+ .70
+4.93
+ .11
+ .(
-1.14
+ .05
-4.41
-2. 42
-2.63
67
69
122
138
140
140
140
140
May with April....
June with May
July with June
August with July . .
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
+4.89
+ .38
+ .87
+ .69
-3.16
+ .45
- .23
-1.26
GOVERNMENT CONTROL OVER PRICES.
501
CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICE S-Continued.
[Showing weighted rise and fall, by per cents, of controlled and uncontrolled prices for each month of the war.]
Metals group.
Fuels group.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
1917.
1917.
116
116
116
116
April with March
+ 5.22
63
63
63
63
April with March
+ 17.83
+ 3.96
+ .72
1.67
May with April
+ 6 53
May with April....
June with May... .
June with May.. . .
+ 14.15
July with June
+ 5.59
July with June
116
August with July
- 6.14
63
August with July
+ .24
11
105
September with
- 9.32
- 9.46
27
36
September with
- 6.07
+ 5.05
August.
August.
18
98
October with Sep-
-24.82
-4.83
27
36
October with Sep-
- .20
+ .17
tember.
tember.
26
90
November with
- 9.68
- 3.00
27
36
November with
+ 2.6S
+ .68
October.
October.
39
77
December with No-
- .39
- 1.25
27
36
December with No-
+ .70
+ 1.96
vember.
vember.
1918.
1918.
39
77
January with De-
+ .16
- .95
27
36
January with De-
+ .88
+ 3.52
cember, 1917.
cember, 1917.
40
76
February with Jan-
+ .39
- 1.14
27
36
February with Jan-
+ .19
+ 1.17
uary.
uary.
42
74
March with Febru-
- .15
+ 1.99
27
36
March with Febru-
+ .56
+ 1.37
46
70
ary.
April with March .
- .40
- 1.07
27
36
ary.
April with March..
+20.90
+ 3.47
49
49
67
67
May with April.. .
June with May... .
+ .07
+ .22
+ 4.09
+ .98
27
27
36
36
May with April
June with May
+ 1.13
- 2.39
+ 3.46
+ .87
49
67
July with June. . . .
+ .86
+ 3.35
27
36
July with June
- .16
- .48
49
49
67
67
August with July .
September with
+ .47
+ .01
+ 5.13
- .40
32
32
31
31
August with July..
September with
+ .34
+ 1.17
+ .15
+ .45
August.
August.
49
67
October with Sep-
+ 1.10
- .60
32
31
October with Sep-
0.00
0.00
tember.
tember.
49
67
November with
+ .11
- 1.81
32
31
November with
+ 2.53
- 1.56
October.
October.
49
67
December with
2.61
- .51
32
31
December with
0.00
- .08
November
November.
Building materials group.
Chemicals group.
Con-
Un-
Con-
Un-
Con-
Un-
Con-
Un-
trolled
con-
trolled
Comparison.
trolled
con-
trolled
trolled
con-
trolled
Comparison.
trolled
con-
trolled
series.
series.
prices.
prices.
series.
series.
prices.
prices.
1917.
1917.
149
April with March
+ 10.40
242
April with March
+2.47
149
May with April.
+ 1 58
242
May with April
+6.46
149
149
June with May
+ 1 65
242
242
June with May..
+2.00
+2.65
July with June
+ 2. 72
July with June
149
149
August with July
+ 24
242
242
August with July . .
September with
+ 1.67
+ 4.00
September with
+ .33
August.
August.
149
October with Sep-
+ .45
242
October with Sep-
+ 1.08
tember.
tember.
6
143
November with
+0.57
+ 1.15
22
220
November with
+2.88
-1.13
October.
October.
16
133
December with
- .19
+ .51
27
215
December with
+2.54
-1.71
November.
November.
1918.
1918.
16
133
January with De-
+3.91
+ 3.71
51
191
January with De-
+ .74
-4.83
cember, 1917.
cember, 1917.
16
133
February with
+ .71
- .12
55
187
February with
+ 1.23
+4.43
January.
January.
16
133
March with Feb-
+ 1.86
+ 3.12
55
187
March with Feb-
+ .33
+ '.83
ruary.
ruary.
31
31
118
118
April with March .
May with April.. .
+4.26
+ .96
+ 4.73
+ 1.73
60
62
182
ISO
April with March..
May with April
- .45
-1.21
+ .45
-2.41
31
118
June with May. . . .
+ .09
+ 1.57
72
170
June with May
1.99
+ .47
42
42
42
107
107
107
July with June. . . .
August with July .
September with
+ .32
+ .93
+ .09
+ 1.68
+ 1.11
+ 1.86
72
75
75
170
167
167
July with June
August with July . .
September with
-7.62
2.33
+1.19
+ .09
- .50
+ .63
August.
August.
42
107
October with Sep-
-1.47
0.00
75
167
October with Sep-
-1.46
+2.39
tember.
tember.
42
107
November with
+ .53
+ .35
75
167
November with
- .36
+ .56
October.
October.
42
107
December with
- .35
- 1.03
75
167
December with
9.44
- .95
November.
November.
502
HISTORY OF PRICES DURING THE WAR.
CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICES Continued.
[Showing weighted rise or fall, by per cents, of controlled and uncontrolled prices for each month of the war.]
Wheat and wheat products.
Cotton and cotton products.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
12
12
12
12
12
1917.
April with March . .
May with April....
+ 17.01
+20.91
- 7.26
7.07
81
81
81
81
81
81
81
JSl
81
81
81
81
81
77
77
24
24
24
24
24
24
1917.
+ 7.80
+ 2.98
+ 7.03
+ 10.96
- .42
+ .47
+ 1.69
+ 6.58
4- 1.91
+ 5.68
+ 3.29
+ 3.90
+ 7.41
- 3.37
- .11
+ 4.35
- 2.68
+ 15.66
- 1.32
- 7.88
- 5.71
May with April
June with May
July with June .
July with June
August with July
+ 73
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
12
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Feb-
ruary.
April with March . .
May with April . . .
7.19
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Feb-
ruary.
April with March
2.10
- .82
- 2.64
- .77
+ 1.41
- 1.09
+ 3.28
1.60
?
...
4
57
57
57
57
57
57
May with April....
June with May
July with Tune
August with July. .
September with
August.
October with Sep-
tember.
November with
October.
December with No-
vember.
0.00
0.00
+ 1.33
+ 1.37
4 85
June with May
July with June. .
+ .84
+ 3.76
August with July. .
September with
August.
October with Sep-
tember.
November with
October.
December with No-
vember.
- 1.04
- .39
- .39
- M8
+ 1.53
+ .46
23
- .96
Wool and woolen products.
Hides and skins and their products.
Con-
trolled
Series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
66
66
66
66
66
66
66
66'
66
66
66
66
66
51
51
51
45
45
45
45
45
1917.
April with March . .
+3.62
+3.72
+ 5 51
156
156
156
156
156
156
156
156
156
156
156
156
156
108
106
106
96
%
96
96
96
1917.
April with March .
-0.66
+ .40
- .26
+3.73
- .76
-2.02
- .06
+ 1.77
+ .20
+ 1.93
2.30
May with April
May with April
June with May . .
June with May.
July with June
+4.88
-4-5. 44
July with June
August with July . .
August with July
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Febru-
ary.
April with March
i +1.65
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
1918.
January with De-
cember, 1917.
February with Jan-
uary.
March with Febru-
ary.
April with March
i 4-2.26
+3.89
+2.39
+ 1.69
+1.19
+2.65
+2.29
-1.32
+ .34
+ 1.22
+ .62
+2.50
+ .06
- .16
+ .15
+ .79
+ .-44
15
15
15
21
21
21
21
21
May with April....
June with May
July with June
August with July . .
September with
August.
October with Sep-
tember.
November with
October.
December with
November.
-1.66
- .V
+ 1.70
- .21
+ .83
- .21 ;
- .41
-3.53
+ 1.84
+ .86
+2.50
+ .93
+ 1.20
+ 1.55
-1.47
-1.38
48
50
50
60
60
60
60
60
May with April . . . . + 10. 60
June with May + .68
July with June - 1.72
August with July . . - 1. 19
September with + .70
August.
October with Sep- + .80
tember.
November with .05
October.
December with 1.03
November.
GOVERNMENT CONTROL OVER PRICES.
503
CHAIN INDEX OF CONTROLLED AND UNCONTROLLED PRICES Continued.
[Showing weighted rise or fall, by per cents, of controlled and uncontrolled prices for each month of the war.]
Iron and steel and their products.
Coal and coke.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
88
88
88
88
88
79
72
65
52
52
52
52
52
52
52
52
52
52
52
52
52
1917.
April with March.
+ 7.69
27
27
27
27
27
27
27
27
27
1917.
April with March..
+42.78
+ 6.92
+ .27
- 5.07
+ .48
Mav with April
+ 7 35
May with April
June with May
July with June.
+ 17.14
+ 7.45
June with Mav
July with June
August with Juiv
6.53
August with July .
9
16
23
36
36
36
36
36
36
36
36
36
36
36
36
36
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
1918.
January with De-
cember, 1917.
February with
January.
March with Febru-
ary.
April with March.
May with April..
June with May...
July with June...
August with July.
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
- 9.73
-26.03
-10.42
- .44
+ .10
+ .41
- .03
- .52
.01
+ .11
+ .11
+ .49
+ .02
+ 1.23
+ .13
2 53
-10.69
-3.84
6 27
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
1918.
January with De-
cember, 1917.
February with
January.
March with Febru-
Aprilwith March...
May with April....
June with May
July with June.
- 6.06
- .17
+ 2.69
+ .74
+ .84
+ .24
+ .52
+20.91
+ 1.14
- 2.39
.18
+ .13
+ .51
+ .33
- 1.55
+ 1.12
+ .15
+ 2.52
+ 1.42
+ .44
- .13
+ 2.61
+ .68
+ 2.09
27
27
27
27
27
27
27
27
27
27
27
27
August with July. . .
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
+ .43
+ .99
+ .002
+ 3.48
0.00
Lumber.
Fertilizers class.
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.-
Con-
trolled
series.
Un-
con-
trolled
series.
Comparison.
Con-
trolled
prices.
Un-
con-
trolled
prices.
62
62
62
62
62
62
62
57
53
53
53
53
38
38
38
38
38
38
38
38
38
1917.
April with January
+22.98
+ 4 56
25
25
25
25
25
25
25
25
25
3
3
3
3
3
1917.
April with March. . .
+ 1.94
+ 3.09
+ 6.48
+ 4.21
+ 7.83
+ .98
+ 4.91
- 2.64
+ 5.12
- 1.53
+14.53
+ 2.55
0.00
-25.12
July with April
Mav with April
Juiie with May
Julv with June
October with July . .
1918.
January with De-
cember, 1917.
April with January.
July with April....
October with July..
+5.26
+5.63
- .60
-2.58
+ 1.39
+ 3.67
+ 6.72
+ .82
+ .30
August with July . . .
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
1918.
January with De-
cember, 1917.
February with Jan-
MaS with Febru-
April'with March..
May with April....
June with May
July with June. . . .
5
9
9
9
9
24
24
24
24
24
24
24
24
24
22
22
22
22
22
25
25
25
25
25
25
25
+ .68
+3.12
- .17
+2.38
+ 1.22
-1.52
4.06
August with Julv . .
September with
August.
October with Sep-
tember.
November with Oc-
tober.
December with No-
vember.
+ 1.02
-3.41
-1.51
+ .12
-1.63
504 HISTORY OF PRICES DURING THE WAR.
4. RELATIVE POINTS BELOW WHICH 50 BASIC COMMODI-
TIES WERE PEGGED.
One of the primary motives behind price control during the war
was the desire to stimulate a maximum production. The various
committees, though always desirous of holding prices within reason-
able bounds, were anxious primarily to assure a full output and did
so frequently by means of liberal price allowances. They under-
took to meet these ends by a rather extensive regulation over the
prices of important basic raw materials. The Government early
regulated wheat, and then as occasion demanded it extended control
to various other raw materials such as copper, iron ore, pig iron,
lumber, wool, hides and skins, and cotton yarns. A study of the
schedules of these fixed prices, gives a very poor notion of the relative
market heights at which each regulation began, both with respect to
its own prewar level and with respect to that of other controlled
prices. It is of significance to know whether Government inter-
ference with prices began generally at the same relative heights, or
whether other factors dictated the time and character of the Govern-
ment control. Another equally significant inquiry is the relation
which the fixed prices bore to the market prices prevailing at the
time regulation set in.
There have here been chosen from the whole list of 573 controlled
commodities 50 of the most representative individual price series
which typify the common practices of Government regulation. The
actual market prices at wholesale by months from January, 1913,
through December, 1918, for each of these controlled basic commodi-
ties, have been turned into relative prices by making the average pre-
war price (July 1, 1913, to June 30, 1914) equal 100. Each relative
price thus is strictly comparable with any other. Relative prices of
this character, for those who seek simply the relation of any market
price when Government control began, to its corresponding prewar
price are more accurate than the index numbers or chain indexes of
groups and classes. The relative prices of individual raw materials
controlled, for the point in mind, have the decided advantage of
standing as separate series precisely at the height they had attained
when taken hold of by the Government. They, moreover, are free
from weights and permit of a study of price rises pure and simple.
These devices make readily possible a comparison of the relative
points, above their prewar prices, below which any or all of the 50
selected commodities were pegged.
The market price for calfskins, No. 1, country, 8 to 15 pounds, at
Chicago, for example, was $0.1984 per pound (made equal to 100)
before the war in Europe. It had reached $0.4040 per pound (found
equal to 204 when compared with the prewar price) in May, 1918,
GOVERNMENT CONTROL OVER PRICES. 505
when the Government determined upon control of calfskin prices.
The Government set the price at $0.34 per pound (similarly found
equal to 171). It is clear that while the market had sent calfskin
prices from 100 in 1913-14 to 204 by May, 1918, the Government
then fixed them at a maximum of 171. They were in point of fact,
quoted subsequently at figures above this maximum. Data are given
by which one may make for himself a similar analysis for each of the
50 commodities carried. A summary of the relative price of each
commodity before the European war, the relative market price which
prevailed when the Government determined upon regulation, and the
relative price at which the Government fixed its initial price precedes
the fuller tables of individual commodities.
The 50 individual commodities, which were selected from the lot
of 573 controlled in price and the actual prices of which may be had
from the Price Section's class bulletins, follow with their full com-
mercial descriptions:
I. FOOD GROUP.
1. Bacon, rough sides, smoked loose, Chicago.
2. Beef, good native steers, fresh carcass, Chicago.
3. Cattle, steers, choice to prime, heavy beeves, Chicago.
4. Corn, cash, No. 3 yellow, Chicago.
5. Cottonseed oil, crude, in barrels, f. o. b. mill.
6. Hogs, live (bulk of sales), Chicago.
7. Oats, No. 3, white, cash, Chicago.
8. Rice, Honduras head, domestic, clean, New Orleans.
9. Sugar, 96 centrifugal, New York.
10. Wheat, No. 1 northern spring, Minneapolis.
II. CLOTHING GROUP.
11. Calfskins, No. 1 country hides, 8 to 15 pounds, Chicago.
12. Cattle hides, packer, heavy native steers, Chicago.
13. Cotton duck, standard United States Army, firsts, 28^-inch 8-ounce, commercial.
14. Cotton linters, grade D, cut 130-175, New York.
15. Cotton yarn, weaving, carded, white, northern mulespun, 22/1 cones, Boston.
16. Leather, harness, grade B, California oak, Chicago.
17. Leather, belting, butts, medium standard tannages, Philadelphia.
18. Print cloths, 27-inch, 64 by 60, 7.60 yards, Boston.
19. Rags, woolen, new clips, blue worsted, New York.
20. Sheeting, Ware Shoals, L. L., brown, New York.
21. Wool, domestic, Ohio, Pennsylvania, West Virginia, unwashed, fine delaine,
Boston.
22. Wool, Buenos Aires, 46s, shrinkage 34 per cent, Boston.
III. RUBBER, PAPER, AND FIBER GROUP.
23. Manila fiber, fair current shipment, New York.
24. Paper, newsprint, rolls, car lots, United States average.
25. Rubber, crude, Hevea, first latex crepe, New York.
506 HISTORY OF PRICES DURING THE WAR.
IV. METALS GROUP.
26. Copper, electrolytic, New York.
27. Iron ore, Mesabi Non-Bessemer, 51 per cent, lower lake ports.
28. Lead, pig, New York.
29. Pig iron, basic, Mahoning or Shenango Valley furnace.
30. Quicksilver, New York.
31. Steel bars, base, Pittsburgh.
32. Steel billets, open hearth, Pittsburgh.
33. Steel plates, tank, Pittsburgh.
34. Steel structural shapes, Chicago.
35. Tin plates, domestic coke, 14 by 20 inches, Pittsburgh.
36. Zinc sheets, f. o. b. La Salle or Peru, 111.
V. FUELS GROUP.
37. Coal, anthracite, chestnut, New York.
38. Coal, bituminous, Pittsburgh, No. 8 Ohio, Columbus and Detroit.
39. Coke, Connellsville furnace, f. o. b. ovens.
40. Petroleum, crude, Mid -continent (Kansas- Oklahoma), at wells.
VI. BUILDING MATERIALS GROUP.
41. Cement, Portland domestic, New York.
42. Douglas fir, common, No. 1, 1 by 8 by 10, Washington mills.
43. Pennsylvania hemlock, No. 1 boards, 1 by 10 to 16, f. o. b. mill.
44. Southern or yellow pine, common boards, No. 1 S2S, 1 by 10, Arkansas.
45. Spruce, random, 2 by 10, Boston.
VII. CHEMICALS GROUP.
46. Alcohol, wood, refined, 95 per cent, New York.
47. Arsenic, white, New York.
48. Caustic soda, 76 per cent, spot, New York.
49. Nitrate of soda, 95 per cent, New York.
50. Sulphuric acid, 60 Be., New York.
GOVERNMENT CONTROL OVER PRICES.
507
a _
i i
I i i i i ^
I5B
rl
tZa
2
'*&&
508
HISTORY OF PRICES DURING THE WAR.
g !_
I 1
8 8.
GOVERNMENT CONTROL OVER PRICES.
509
510
HISTORY OF PRICES DURING THE WAR.
rj^ I - * r!_I
Relative prices. Pig iron, basic. By months, Janu-
ary. 1913, to December, 1918. (Average quoted
prices, July, 1913, to June, 1914=100.)
Relative prices. Steel plates, tank. By months.
January,1913,toDecember,1918. (Average quoted
prices, July, 1913, to June, 1914=100.)
GOVERNMENT CONTROL OVER PRICES.
511
RELATIVE PRICES OF
ANTMRACITC COAL
CHESTNUT
BY MONTHS
JANUARY,19J3 TO DeCEMeED 151S
AVERAC.E QUOTED PRlCEXJUL^lOlS'injNE^' 100
1016
1 i 5
1 9 fi
nxtortn
i
220
200
80
60
,40
120
too
180
160
r
I
1ZO
100
I
V
\J
\ /
-v /-
3L/C
J
r
60
60
V
V
b?
1
60
60
,,l, ,1.,!..
iifnii. i..
$ 3 R
i 1915
f-SH
D I*
UM
Mr
Relative prices. Anthracite coal, chestnut. By
months, January, 1913, to December, 1918. (Aver-
age quoted prices, July, 1913, to June, 1914=100.)
Relative prices. Coal, bituminous. By months,
January, 1913, toDecember, 1918. (Average quoted
prices, July, 1913, to June, 1914- 100.)
512
HISTORY OF PRICES DURING THE WAR.
RELATIVE PRICES Of
CRUDE PETROLEUM
KT MONTHS
JANUARY, 19
AVERAGE QJOTrDPR'.CEiJX N r:iSS' T JUNe.l9W-100
Relative prices. Coke, Connellsville. By months,
January, 1913, to Dec ember, 1918. (Average quoted
prices, July, 1913, to June, 1914=100.)
Relative prices. Crude petroleum, mid-continent.
By months, January, 1913, to December, 1918.
(Average quoted prices, July, 1913, to June, 1914=
100.)
GOVERNMENT CONTROL OVER PRICES.
513
1
- i
5 '
3 S
3
?
i
I
3 3
c
D~
-
r
J "
^
^ cQ
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c
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r~L
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a i!
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bu 9?
9*3 si 2
i ^
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iJO
.
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IX
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-
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-
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-,
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B a
ff,i
SS||f9
fil
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8 8
II
lfij
CO-3S
125547 20 33
514
HISTORY OF PRICES DURING THE WAR,
A SUMMARY OF ACTUAL AND RELATIVE PRICES BELOW WHICH BASIC COMMODITIES
WERE FIXED.
Commodity.
Prewar price (July,
1913 to June, 1914).
Actual. Relative.
Market price when
control began.
Actual. Relative.
Government initial
fixed price.
Actual. Relative
FOODS.
1. Bacon $0.1298
2. Beef 1297
3. Cattle 9. 1022
4. Corn 6859
5. Cottonseed oil . 0607
6. Hogs.live 8.3094
7. Oats .4005
8. Rice .0526
9. Sugar, raw . 0340
10. Wheat 8901
CLOTHING.
11. Calfskins 1984
12. Cattle hides . 1861
13. Cotton duck . 1550
14. Cotton linters .0205
15. Cotton weaving yarn . 2438
16. Leather, harness . 4121
17. Leather, belting . 5042
18. Printcloths .0335
19. Rags, woolen . 1250
20. Sheeting .0606
21. Wool, domestic .2317
22. Wool, Buenos Aires . 3083
RUBBER, PAPER, AND FIBEE.
23. Manila fiber .0780
24. Paper, newsprint 1. 9046
25. Rubber, crude .6123
METALS.
26. Copper, electrolytic . x . . 1492
27. Iron, ore
28. Lead,pig 0418
29. Pigiron, basic 13.3183
30. Quicksilver 38.8558
31. Steel bars 1.2600
32. Steel billets 21.7917
33. Steel plates 1.2600
34. Steel structural shapes 1.4600
35. Tinplate 3. 4375
36. Zinc sheets .0735
FUELS.
37. Coal, anthracite 3. 7800
Coal, bituminous 1.0900
39. Coke, Connellsville 2. 0625
40. Petroleum, crude .9725
BUILDING MATERIALS.
41. Cement. Portland
42. Douglas fir
43. Pennsylvania hemlock
44. Southern or yellow pine
45. New England spruce
CHEMICALS.
46. Alcohol, wood.
47. Arsenic
48. Caustic soda. ..
49. Nitrate of soda.
50. Sulphuric acid.
1.5800
7. 9167
24.8300
13.8750
24.2600
.4558
.0310
.0181
2. 3183
.0085
100
100
100
100
100
100
100
100
100
ICO
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
103
100
100
100
100
80. 1750
16. 9500
.0938
.0690
2. 7875
.4040
.3110
.3425
.0487
.7120
.6800
.9700
.1300
.5650
.2300
.7500
.7400
.2731
3. 2450
.6000
.2545
5.0500
.0625
42. 7500
121.7600
3.8800
55. 2500
7.0500
5.1900
12.0000
.1800
4.9000
2. 5400
11. 7500
2. 2500
2. 5600
18. 5000
32.6200
27. 5000
46. 3700
1.3500
.1600
. 0490
4. 4938
.0125
204
$0. 1750
15. 5000
178
203
313
204
167
221
238
292
165
192
388
452
380
324
240
350
170
98
171
153
150
321
313
308
234
560
355
349
245
130
233
570
231
102
234
131
198
191
296
516
271
194
147
.0913
.06005
2. 1700
. 3-tCO
.3300
.3350
.0467
.6650
.6800
.9600
.1125
.6200
.1750
.7500
.7400
.2600
3.1000
\ 3.5000
.6300
.2350
5. 0500
.0805
33.0000
105.0000
2.9000
47. 5000
3.2500
3.0000
7.7500
.1500
4.8000
2.0000
6.0000
1.8500
18.5000
32.0000
24.0000
45. 0000
.7900
.0900
.0350
4.2250
.0090
516
HISTORY OF PRICES DURING THE WAR.
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Food group.
Bacon,
rough
sides,
smoked,
loose,
Chicago
(per
lb.).
Beef,
good,
native
steers,
fresh
carcass,
Chicago
K
Cattle,
steers,
choice
to
prime
heavy
beeves,
Chicago
(per
cwt.)-
$9. 1022
100
Corn,
cash,
No. 3,
yellow,
Chicago
(per
bu.).
Cotton-
seed
oil,
crude,
in
barrels,
f. o. b.
mill
(per
lb.).
Hogs,
live,
(bulk of
sales),
Chicago
(per
cwt.).
Oats,
No. 3,
white,
cash,
Chicago
(per
bu.).
Rice.
Hon-
duras
head,
domes-
tic,
clean.
New
Orleans
(per
lb.).
! Wheat,
Sugar, I No. 1
raw, North-
96 cen- era
trifugal, spring,
New Minne-
York i apolis
(perlb.).: (per
i bu.).
Prewar base price..
Made equal to..
Market price when
control began
SO. 1298
100
$0. 1297
100
$0. 6859
100
$0. 0607
100
.1750
288
.1750
288
83
86
87
95
97
101
119
110
101
95
99
92
85
97
107
96
95
96
98
101
104
102
103
102
89
79
67
75
80
98
103
90
74
92
91
f8
91
91
89
86
85
86
88
109
113
120
93
89
87
114
98
$8. 3094
100
16. 9500
204
15. 5000
187
90
98
110
106
102
103
109
101
101
99
94
93
99
104
104
95
101
98
103
103
102
99
97
108
107
103
94
92
87
102
100
106
91
100
82
80
81
87
89
89
85
83
88
93
80
76
81
88
86
83
85
$0. 4005
100
$0. 0526
100
.0938
178
.0913
174
90
90
91
93
92
96
102
105
97
103
100
95
91
94
102
99
96
95
99
100
100
101
102
102
105
95
90
83
94
98
101
101
88
97
93
94
94
94
94
94
92
86
80
83
90
87
94
94
86
87
90
$0. 0340
100
.0690
203
. 06005
176
104
103
104
100
98
98
104
110
109
103
106
99
104
99
108
103
103
98
101
88
88
96
98
96
168
171
131
115
116
96
94
145
121
114
119
138
142
141
142
144
143
140
126
121
140
145
133
143
136
135
137
$0.8901
100
2. 7875
313
2. 1700
244
97
98
95
99
102
103
101
99
97
94
95
%
97
101
99
95
98
98
104
104
102
105
103
101
120
128
124
130
134
102
103
116
129
113
152
170
165
173
177
144
156
154
110
114
114
127
162
165
140
118
147
Found equal to .
Government price . .
Found equal to.
1913 Months-
January
February . .
March..:...
April...
83
84
82
87
95
102
98
105
106
99
99
101
83
94
104
100
95
97
98
98
98
100
100
93
105
123
117
121
122
98
99
107
120
106
134
144
144
143
133
122
134
112
87
91
92
105
140
133
113
96
120
83
86
88
92
96
99
105
101
98
97
97
97
85
96
101
97
95
98
99
97
95
93
98
105
111
110
103
97
92
98
96
109
97
100
91
91
86
86
88
90
86
80
75
85
92
94
89
88
80
90
87
Ill
99
99
99
99
99
97
96
99
100
100
100
103
99
98
100
100
100
100
100
101
102
102
104
109
111
111
111
110
100
102
108
111
105
100
94
91
91
94
97
101
102
104
106
106
106
95
94
103
106
99
99
88
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
m
111
106
101
94
95
92
95
102
109
108
107
106
109
106
97
96
108
107
102
70
71
74
81
83
89
90
108
110
102
106
100
82
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
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.
517
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Food group.
Bacon,
rough
sides,
smoked,
loose,
Chicago
i ( K
Beef,
good,
native
steers,
fresh
carcass,
Chicago
(per
lb.).
Cattle,
steers,
choice
to
prime
heavy
beeves,
Chicago
(per
cwt.).
Corn,
cash,
No. 3,
yellow,
Chicago
(per
bu.).
Cotton-
seed
crud'e,
in
barrels
f. o. b.
mill
(per
tf.).
Hogs,
live,
(bulk of
sales),
Chicago
(per
cwt.).
Oats,
No. 3,
white,
cash,
Chicago
(per-
bu.).
Rice,
Hon-
duras
head,
domes-
tic,
clean
New
Orleans
(per
lb.).
Sugar,
raw,
96 cen-
trifugal,
New
York
(perlb.).
Wheat,
No. 1
North-
ern
spring,
Minne-
apolis
(per
bu.).
Prewar base price. .
Made equal to..
Market price when
control began
$0. 1298
100
$0. 1297
100
$9. 1022
100
$0. 6859
100
$0. 0607
100
.1750
288
.1750
288
130
136
154
168
172
154
148
150
151
175
188
185
140
165
149
182
161
%
181
178
197
226
242
240
213
221
238
266
282
281
187
236
225
277
231
5288
288
288
288
288
288
288
288
2288
288
288
288
288
288
288
288
288
$8. 3094
100
16.9500
204
15. 5000
187
87
99
114
116
120
115
117
123
128
121
115
113
100
117
123
117
114
130
150
172
189
192
182
184
208
219
206
1204
205
151
188
203
205
187
192
199
203
203
202
198
212
226
233
2202
2200
2205
198
201
224
202
206
$0. 4005
100
$0.0526
100
.0938
178
.0913
174
86
88
87
87
87
87
86
85
- 82
85
91
90
87
87
84
89
87
90
90
93
128
133
135
133
135
136
147
U47
151
91
133
135
148
127
151
151
162
171
172
174
2178
176
174
174
174
174
155
172
176
174
169
$0. 0340
100
.0690
203
.06005
176
137
144
166
181
189
186
185
164
163
184
183
156
149
185
171
174
170
154
152
161
183
179
178
195
214
205
1203
203
186
156
180
205
198
185
2177
177
177
177
177
177
178
2178
205
214
214
214
177
177
186
214
189
$0. 8901
100
2. 7875
313
2.1700
244
145
144
128
137
136
125
131
167
181
197
217
198
139
133
160
204
158
125
203
223
268
335
303
290
1313
250
244
244
244
214
302
285
244
261
3244
244
244
244
244
244
244
250
249
249
249
249
244
244
247
249
246
Found equal to.
Found equal to.
1916 Months-
Jan uary
February . .
March
94
98
104
105
110
Ul
118
120
123
123
125
121
99
108
120
123
113
123
131
147
164
179
176
183
193
207
236
1234
232
133
173
193
234
184
204
206
203
199
191
180
200
200
206
203
203
216
204
191
202
207
201
106
106
106
106
106
109
109
106
106
106
106
106
106
107
107
106
107
106
109
115
123
123
125
126
132
146
146
1146
144
110
124
136
146
129
135
135
135
158
173
183
185
187
189
189
189
189
135
172
187
189
171
104
102
106
107
111
121
118
116
119
120
126
127
104
113
118
125
114
126
130
137
143
146
147
149
160
179
181
1171
156
131
145
163
170
152
151
151
153
177
192
196
199
204
211
211
214
218
152
187
205
214
190
111
108
105
111
109
106
117
125
126
141
143
133
107
109
123
139
123
144
146
164
218
240
252
301
301
301
292
1266
244
152
235
301
265
239
240
243
228
228
216
221
234
242
226
193
189
212
236
221
234
197
222
121
116
104
110
109
98
101
112
115
123
139
130
114
105
109
131
115
142
141
154
175
175
169
197
161
149
150
U63
190.
146
173
167
170
164
207
221
230
222
192
191
194
174
180
173
180
179
220
201
182
178
195
April
May
June
Julv
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
\pril
May...
June . .
July
August
September .
October
November.
December..
Quarters-
First
Second
Third
Fourth
Year
Government control began during month.
Government revised price during month.
518
HISTORY OF PRICES DURING THE WAR.
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Clothing group.
Calfskins,
No. 1
country,
8-15 Ibs.,
Chicago
(per lb.).
1
Cattle
hides,
packer,
heavy,
native
steers,
Chicago
(per lb.).
Cotton
duck,
standard,
U.S. Army
firsts, 28J
in., 8oz.,
Commercial
(per yd.).
Cotton
linters,
Grade D,
cut 130-175,
New York
(perlb.).
Cotton
yarn,
weaving,
carded,
white,
northern
inulespun
22/1 cones,
Boston
(perlb.).
Leather
harness,
Grade B,
Calif, oak,
Chicago
(perlb.).
$0. 1984
100
.4040
204
.3400
171
91
89
87
89
94
93
96
96
97
102
102
105
89
92
96
103
95
98
98
103
101
101
101
101
103
116
113
112
121
100
101
107
116
106
113
118
108
89
96
100
102
116
103
113
117
126
113
95
107
119
109
$0. 1861
100
.3110
167
.3300
177
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
$0. 1550
100
.3425
221
.3350
216
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
90
90
90
SI
81
100
100
94
84
94
81
81
81
77
77
77
77
84
84
90
90
90
81
77
82
90
83
$0. 0205
100
.0487
238
.0467
228
122
110
122
110
110
117
117
117
110
112
112
110
118
112
115
111
114
98
85
85
85
85
85
15
85
55
55
49
55
89
85
75
53
70
G8
102
103
127
127
195
202
198
205
327
351
375
91
150
201
351
199
SO. 2438
100
.7120
292
. 6650
273
98
100
98
100
100
98
98
98
103
109
107
107
99
100
100
107
102
98
98
98
98
94
90
94
90
82
82
72
74
98
94
89
76
89
78
78
70
78
76
76
76
79
82
90
94
98
75
77
79
94
81
SO. 4121
100
.6800
165
.6800
165
99
99
99
99
99
99
99
99
98
98
101
101
M
99
99
100
99
18!
101
101
101
101
101
101
102
103
104
104
101
101
101
104
102
109
112
110
110
107
107
107
108
112
112
112
112
110
108
109
112
110
Made equal to
Market price when control be-
gan . . .
Government price .
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
November. .
December
Quarters-
First
Second
x Third
Fourth
Year.
GOVERNMENT CONTROL OVER PRICES.
519
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
1
Clothing group.
Leather
belting,
butts,
medium
standard
tannages,
Philadel-
phia
(perlb.).
Printcloths,
27 in.,
G4by60,
7.60 yds.,
Boston
(per yd.).
Rags,
woolen,
new clips,
blue
worsted,
New York
(perlb.).
Sheeting,
Ware
Shoals,L.L.,
brown,
New York
(per yd.).
Wool,
dom., Ohio,
Penn.,
W. Va.,
unwashed,
fine
delaine,
Boston
(per lb.).
Wool,
Buenos
Aires 46s,
shrinkage
34 per cent,
Boston
(per lb.).
Prewar base price
30. 5042
100
.9700
192
.9600
190
103
103
103
103
101
101
99
99
99
99
101
101
103
102
99
100
101
101
99
101
101
99
99
101
101
105
109
109
109
100
100
102
109
103
111
105
111
111
111
111
121
125
135
139
139
149
109
111
127
142
122
$0. 0335
100
.1300
388
.1125
336
112
108
108
102
97
99
98
97
104
108
105
99
110
99
99
104
103
99
99
97
98
97
99
98
95
86
76
76
73
98
98
93
75
91
76
79
79
84
90
87
84
80
85
97
93
95
78
87
83
95
86
$0. 1250
100
.5650
452
.6200
496
92
92
124
108
108
98
84
88
88
100
104
104
103
105
87
103
99
98
104
108
113
104
104
96
92
120
124
120
120
103
107
103
121
109
136
156
192
172
172
172
168
172
196
176
204
216
161
172
179
199
178
$0. 0606
100
.2300
380
.1750
289
105
103
103
101
99
99
97
97
101
103
103
103
104
100
98
103
101
103
101
99
97
97
97
97
95
91
83
74
74
101
97
94
77
92
72
74
76
81
78
78
87
91
99
95
95
95
74
79
92
95
85
$0. 2317
100
.7500
324
.7500
324
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
132
132
136
129
126
130
133
129
$0. 3083
100
.7400
240
.7400
240
123
122
120
118
117
120
122
123
120
117
110
97
122
118
122
108
117
84
78
81
88
89
91
94
95
96
97
99
101
81
89
95
99
91
110
114
117
120
122
123
127
128
130
131
133
136
114
122
128
134
124
Made equal to
Market price when control
began
Found equal to . .
Government price
Found equal to
1913 Months-
January
February
March
\pril - -
May
June
July
August
September
October
November
Quarters-
First
Second
Third
Fourth
Year
1914 Months-
January
February
March
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
520
HISTORY OF PRICES DURING THE WAR,
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Clothing group.
Calfskins,
No. 1
country,
8-15 Ibs.,
Chicago,
(perlb.).
Cattle
hides,
packer,
heavy,
native
steers,
Chicago
(perlb.).
Cotton
duck,
standard,
U. S. Army
firsts, 28
in., 8oz.,
Commercia
(per yd.).
Cotton
1 inters,
Grade D,
cut 130-175
New York
(perlb.).
Cotton
yarn,
weaving,
carded,
white,
northern
mulespun
22/1 cones,
Boston
(perlb.).
Leather
harness,
Grade B,
Calif, oak,
Chicago
(perlb.).
Prewar base price
$0. 1984
100
.4040
204
.3400
171
129
125
139
141
164
164
171
164
166
181
227
271
131
156
167
226
170
239
208
202
214
232
214
227
202
174
176
202
166
216
220
201
181
205
161
163
156
181
1204
197
197
197
197
197
197
197
160
194
197
197
$0. 1861
100
.3110
167
.3300
177
124
128
122
120
133
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
M67
177
174
2 161
161
161
2156
156
160
164
166
158
101
$0. 1550
100
.3425
221
.3350
216
94
94
94
94
103
103
116
116
123
129
137
129
94
100
118
132
111
129
129
137
161
161
177
194
194
194
194
221
221
132
167
194
212
176
221
221
221
221
221
221
1216
216
216
216
221
221
221
221
216
219
219
$0. 0205
100
.0487
238
.0467
228
341
366
341
341
341
390
390
390
307
341
378
378
350
358
362
366
359
378
378
378
378
322
322
322
256
250
256
238
238
378
340
278
244
310
238
238
238
238
1228
228
228
228
228
228
228
228
238
231
228
228
231
$0. 2438
100
.7120
292
.6650
273
105
105
104
110
112
115
116
118
125
135
149
170
104
112
120
151
122
160
152
148
168
174
180
205
205
238
197
205
217
153
174
216
206
187
238
249
257
281
289
292
i 288*
287
285
285
273
242
248
287
287
267
272
$0.4121'
100
.6800
165
.6800
165
112
112
112
114
114
119
119
119
121
121
131
155
112
116
120
136
121
163
163
163
163
163
163
163
163
163
163
163
163
163
163
163
163
163
165
165
165
165
165
U65
165
165
165
165
165
165
165
165
165
165
165
Market price when control be-
Found equal to
Found equal to
1916 Months-
January
February
March
April
May
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
i
Government control began during month. "Government revised price during month.
GOVERNMENT CONTROL OVER PRICES.
521
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Clothing group.
Leather
belting,
butts,
medium
standard
tannages,
Philadel-
phia
(per lb.).
Printcloths,
27in.,
64 by 60,
7.60 yds.,
Boston
(per yd.).
Rags,
woolen,
new clips,
blue
worsted,
New York
(per lb.).
Sheeting,
Ware
Shoals,L.L.,
brown,
New York
(per yd.).
Wool,
dom., Ohio,
Penn.,
W. Va.,
unwashed,
fine
delaine,
Boston
(per lb.).
Wool,
Buenos
Aires 46s,
shrinkage
34 per cent,
Boston
(perlb.).
Prewar base price
Made equal to
$0. 5042
100
.9700
192
.9600
190
149
149
155
149
157
159
159
159
157
157
169
169
151
155
158
165
157
175
175
182
182
188
188
188
188
188
188
188
188
177
186
188
188
185
188
190
188
188
186
188
192
i 190
190
190
190
190
189
188
191
190
190
$0. 0335
100
.1300
388
.1125
336
101
104
106
113
117
115
115
120
134
149
164
162
104
115
123
158
125
161
152
152
159
180
207
216
213
205
222
239
254
155
167
211
239
198
265
308
355
390
382
388
1388
371
336
336
336
287
313
387
362
316
344
$0. 1250
100
.5650
452
.6200
496
248
276
248
236
221
224
224
220
212
188
256
252
257
228
219
232
234
276
252
254
252
250
258
258
262
256
256
296
296
261
253
259
283
264
340
340
332
332
344
360
452
M88
496
496
496
488
337
345
479
493
414
SO. 0606
100
.2300
380
1750
' 289
97
99
99
103
109
109
109
120
128
140
153
163
98
107
119
152
119
163
163
169
173
182
194
198
202
202
223
231
243
165
183
201
232
195
272
289
309
371
380
380
1380
289
297
297
297
297
290
377
322
297
321
$0. 2317
100
.7500
324
.7500
324
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
1324
319
324
324
319
319
319
293
324
322
322
311
320
$0.3083
100
.7400
240
.7400
240
136
139
143
146
149
151
152
156
162
165
169
175
139
149
157
170
154
175
178
185
190
211
227
343
343
242
240
237
240
179
211
243
239
217
240
240
240
240
1240
240
240
240
240
240
240
257
240
240
240
246
241
Market price when control
began
Found equal to ...
Government price
Found 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
November ....
December
Quarters-
First
Second
Third
Fourth
Year
1918 Months-
January
February
March
A pril
May
June
July
August..:
September
October
November
December
Quarters-
First
Second
Third
Fourth
Year
Government control began during month.
522
HISTORY OF PRICES DURING THE WAR.
LKLATIVE TRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.}
Rubber, paper, fiber group.
Manila
fiber, fair
current
shipment.
New York
(perlb.)
Paper,
newsprint,
rolls, car
lots United
States
average
(per cw ( . )
Rubber,
crude,
Hovoa, first
latex, crepe
New York
(perlb.)
Prewar base price
$0. 0780
100
.2731
350
.2600
333
143
143
138
132
122
112
109
115
115
109
97
91
141
122
113
99
119
87
99
93
90
98
95
93
95
103
95
83
90
93
94
97
89
93
99
113
123
131
125
124
119
122
116
115
127
129
112
127
119
123
120
$1.9046
100
3. 2450
170
(3.1000]
163 1
3.5000[
184J
101
101
101
100
101
100
101
101
100
100
100
99
101
100
100
100
100
100
100
100
100
100
99
100
100
100
100
102
102
100
100
100
101
100
100
99
99
99
99
99
99
99
99
99
99
99
100
99
99
98
99
SO. 6123
100
.6000
93
.6300
103
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
10S
Market price when control began .
Found equal to
Government price
Found equal to
1913 -Months
February ....
March . .
April
Mav
June
Tuly
September . .
October
November "
December
Quarters-
First
Second
Third
Fourth
Year
1914 Months
February
March .
April
Mhv
Juno '
July
August
September
October
November
December
Quarters-
First
Second
Third
Fourth
Year
1915-Months-
January
February
March
April
Mav
J une . . .
July .
August .
Sopite rnbor
October
December
Quarters-
first
Second
Third
Fourth
Year " . .
GOVERNMENT CONTROL OVER PRICES.
523
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Rubber, paper, fiber group.
Manila
fiber, fair
current
shipment,
New York
(perlb.)
Paper,
newsprint,
rolls, car
lots United
States
average
(percwt.)
Rubber,
crude,
Hevea, first
latex, crepe
New York
(perlb.)
Prewar base price
SO. 0780
100
.2731
350
.2600
333
149
175
172
166
166
159
160
156
148
143
139
173
166
164
155
152
159
202
205
203
235
256
308
327
329
321
321
314
349
203
266
325
328
284
366
350
1333
333
333
333
2333
305
293
280
240
199
350
333
311
240
308
$1.9046
100
3.2450
170
!3. 1000]
163 1
3. 5000 f
184J
100
99
100
101
102
105
108
112
115
118
116
126
100
103
111
120
108
150
162
169
168
168
167
167
167
170
167
164
162
160
168
168
164
165
170
169
170
U73
2191
191
2195
193
196
197
197
197
170
185
195
197
18G
$0.6123
100
.6000
98
.6300
103
146
140
147
136
117
105
95
95
98
102
112
129
145
119
96
114
191
127
140
139
134
135
118
111
106
109
104
98
91
135
129
109
98
118
100
86
91
98
U03
103
103
103
103
103
100
100
92
101
103
101
99
Made equal to
Market price when control began
Found equal to .
Governtnont price
Found 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 ....
Mav ..
June
July
August
September
October
November
December
Quarters-
First
Second /
Third
Fourth . .
Year
Government control began during month.
2 Government revised price curirg month.
524
HISTORY OF PRICES DURING THE WAR.
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
]
tfetal group.
Copper,
electro-
lytic,
New York
(perlb.).
Iron ore,
Mesabi,
non-Bes-
semer, 51
per cent
lower lake
ports (per
gr. ton).
Lead, pig,
New York
(perlb.).
Pig iron,
basic, Ma-
honing or
Shenango
Valley
furnace
(per gr.
ton).
Quick-
silver,
New York
(per flask
of 75 Ibs.).
Prewar base price
$0. 1492
$3. 3083
$0. 0418
$13.3183
$38. 8558
Made equal to_
100
100
100
100
100
Market price when control began
.2545
5.0500
.0625
42. 7500
121.7500
Found equal to
171
153
150
321
313
Government price
.2350
5.0500
.0805
33.0000
105. 0000
Found equal to
158
153
193
248
270
1913 Months-
January
112
103
103
123
103
February
102
103
104
122
103
March
100
103
104
121
102
April...
104
103
105
119
101
May
105
103
104
114
102
June
100
103
104
109
103
July
98
103
104
108
103
August
105
103
111
106
103
September
111
103
112
105
101
October
111
103
105
104
99
November
104
103
103
98
100
December
97
103
97
95
102
Quarters-
First
105
103
103
122
103
Second
103
103
104
114
102
Third
105
103
109
106
102
Fourth .
104
103
102
99
100
Year . . ..
104
103
105
110
102
1914 Months-
January
97
103
98
94
100
February.
98
103
97
99
100
March
96
103
95
98
99
April
96
103
91
98
98
May
95
86
93
98
98
June...
93
86
93
98
98
July
90
86
93
98
95
August
83
86
93
98
214
September
81
86
92
98
191
October
76
86
84
96
138
November
79
86
88
94
129
December
87
86
91
94
132
Quarters-
First
97
103
97
97
100
Second
95
92
93
98
98
Third .
85
86
92
98
167
Fourth ?
81
86
88
95
133
Year
89
92
92
97
124
1915 Months
January
92
86
89
94
133
February...
98
86
92
94
153
March
100
'86
97
94
188
April
115
86
101
94
184
May .
125
86
102
94
199
June
132
86
142
95
246
July.
128
85
135
96
249
August
115
85
111
106
236
September
119
85
110
111
230
October
120
85
110
113
244
November
126
85
123
118
278
December
136
85
128
131
347
Quarters-
First
97
86
93
94
158
Second
124
86
115
94
210
Third
121
85
119
104
238
Fourth .
127
85
121
121
290
Year
117
85
112
103
224
GOVERNMENT CONTROL OVER PRICES.
525
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Metal group.
Copper,
electro-
lytic,
New York
(perlb.)-
Iron ore,
Mesabi,
non-Bes-
semer, 51|
per cent
[ower lake
ports (per
gr. ton).
Lead, pig,
New York
(perlb.).
Pig iron,
basic, Ma-
honing or
Shenango
Valley
furnace
(per gr.
ton).
Quick-
silver,
New York
(per flask
of 75 Ibs.).
Prewar base price $0.1492
Made equal to 100
Market price when control began . 2545
Found equal to 171
Government price . 2350
Found equal to 158
1916 Months-
January 162
February 184
March 184
April 196
May 200
June 184
July 172
August 183
September 189
October 192
November 216
December 227
Quarters-
First 1 76
Second 193
Third .. 182
Fourth 212
Year 191
1917 Months-
January 203
February 236
March 240
April 216
May 217
June. 218
July 194
August 182
September 1 17-1
< 'ctober 158
November 158
December 158
Quarters-
First 226
Second 217
Third 182
Fourth 158
Year 196
1918 Months-
January 158
February 158
March 158
April 158
May 158
June. 158
July 2 174
August 174
September 174
October 174
November 174
December 170
Quarters-
First 158
Second 158
Third 174
Fourth 173
Year.... 165
$3. 3083
100
5.0500
153
5.0500
153
107
107
107
107
107
107
107
107
107
107
107
153
107
107
107
122
111
153
153
153
153
153
153
153
153
U53
153
153
153
153
153
153
153
153
153
153
153
153
153
153
2153
166
166
2174
174
174
153
153
162
174
160
$0. 0418
100
.0625
150
.0805
193
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
102
163
182
102
l'J3
193
193
])3
157
167
169
192
181
177
$13.3183
100
42.7500
321
33.0000
248
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
2240
240
240
240
240
240
2 248
248
248
248
240
240
248
244
Governmentcontrol began during month.
2 Government revised price during month.
526 HISTORY OF PRICES DURING THE WAR.
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
Metal group.
Steel bars,
base,
Pittsburgh
(percwt.).
Steel bil-
lets, open-
hearth,
Pittsburgh
(per gr.
ton).
Steel
plates,
tank,
Pittsburgh
(percwt.).
Steel,
structural
shapes,
Chicago
(per cwt.).
Tin plate,
dom. coke,
14 bv 20 in.
Pittsburgh
(per ioo-lb.
base box).
Zinc
sheets,
f. o. b. La
Salle or
Peru, in.
(perlb.).
Prewar base price .
$1.2600
100
3. 8800
308
2.9000
230
111
111
111
111
111
111
111
111
111
110
103
97
111
111
111
103
110
95
97
95
91
90
89
89
94
94
91
88
83
96
90
92
88
91
87
87
91
95
95
95
101
103
107
113
129
139
89
95
104
127
104
$:i.7917
100
55. 2500
254
47. 5000
218
131
133
133
126
124
122
122
118
110
103
94
92
132
124
"117
96
117
92
96
96
95
92
89
89
93
95
92
88
87
95
92
92
89
92
87
88
89
89
89
93
103
112
123
124
125
151
88
91
113
133
106
$1.2600
100
7.0500
560
3. 2500
258
119
115
115
115
115
115
115
114
111
108
102
95
116
115
113
102
112
95
96
94
91
90
87
88
94
94
90
87
83
95
90
92
87
90
87
87
91
95
93
91
97
100
106
113
129
139
89
93
101
127
102
$1.4600
100
5. 1900
355
3.0000
205
112
112
112
112
112
112
112
112
112
109
108
97
112
112
112
105
110
92
95
95
91
88
88
88
94
95
92
87
82
94
89
92
87
90
88
88
91
92
94
95
98
102
105
108
123
134
89
94
102
121
101
S3. 4375
100
12.0000
349
7. 7500
225
105
105
105
105
105
105
105
105
102
102
102
99
105
105
104
101
104
99
97
97
97
97
97
97
97
107
100
93
95
98
97
101
96
98
92
92
92
96
96
96
92
92
92
92
92
105
92
96
92
96
94
$0. 0735
100
.1800
245
.1500
204
122
117
112
107
104
99
109-
109
104
102
99
117
103
104
102
107
101
99
97
95
95
95
95
100
116
110
109
116
99
95
104
112
102
126
168
184
192
260
398
367
256
218
218
272
299
159
284
280
263
247
Market price when control
began
Found eoua.1 to ...
Found equal to
1913 Months
February
\pril
May
June
J u ly
October -
December
Quarters-
First
Second ....
Third
Fourth
Year - -
1914 Months
March
May
June
J U ly
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 i
Fourth :...
Year
GOVERNMENT CONTROL OVER PRICES.
RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES.
[Arranged to show relative points below which basic prices were pegged.]
527
Metal group.
Steel bars,
base,
Pittsburgh
(per c\vt.).
Steel bil-
lets, open-
hearth,
Pittsburgh
(per gr.
ton).
Steel St&l,
plates, structural
!tank, shapes,
Pittsburgh Chicago
(percwt.). (percwt.).
Tin plate,
dom. coke,
14 by 20 in.
Pittsburgh
(per 100-lb.
base box).
Zinc
sheets,
f. o. b. La
Salle or
Peru, 111.
(perlb.)>
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
,<K
Steers,
choice
to
prime,
heavy
beeves,
Chi-
cago
(per
cwt.).
Steer
rounds,
No. 1,
Chi-
cago
(per
l).
Coal,
bitu-
minous,
Pitts-
burgh,
No. 8,
Ohio,
Colum-
bus,
and
De-
troit
(persh.
ton).
Coke,
Con-
nells-
ville
furnace,
f.o.b.
ovens
(per sh.
ton).
Prewar base price
$0. 6859
100
111
108
105
111
109
106
117
125
126
141
143
133
107
109
123
139
123
144
146
164
218
240
252
301
301
301
292
1266
244
152
235
301
265
239
240
243
228
228
216
221
234
242
226
193
189
212
236
221
234
197
222
$1.6962
100
99
101
102
109
104
106
117
123
123
131
148
141
100
107
121
140
117
147
149
164
221
243
243
288
328
313
302
1299
287
154
237
310
296
248
285
321
304
315
270
262
284
262
235
200
178
191
303
281
261
189
259
$0. 0340
100
137
145
164
180
189
185
186
169
159
186
186
158
148
184
1'72
175
170
154
149
162
184
179
177
196
216
205
1203
203
189
156
180
205
198
185
177
177
177
177
177
177
178
178
205
214
214
214
177
177
186
214
189
$0.0413
100
139
145
160
171
181
178
182
169
154
171
178
168
148
177
169
172
167
160
166
171
197
192
183
180
198
199
1198
198
195
166
191
193
197
187
180
177
177
177
177
177
178
178
205
214
214
214
178
177
186
214
189
$0.0426
100
127
141
157
169
178
179
178
165
149
166
174
164
144
176
164
168
163
156
162
176
187
187
176
183
187
191
1173
173
175
165
184
186
174
176
177
178
177
177
177
178
183
183
209
217
217
217
177
177
191
217
191
$9. 1022
100
104
102
106
107
111
121
118
115
119
120
126
126
104
113
118
124
115
126
130
137
143
145
147
149
159
179
181
171
156
131
144
162
170
152
151
151
153
177
192
196
1199
204
211
211
214
218
151
187
205
214
190
$0. 1295
100
89
89
97
103
106
117
116
118
119
111
106
102
91
108
117
105
106
100
106
113
126
129
133
135
134
154
154
U46
139
107
130
142
146
131
135
132
138
146
177
198
203
209
209
203
188
178
135
175
207
189
177
$1.0900
100
96
97
95
102
102
103
103
103
123
228
425
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
224
215
219
219
219
219
219
219
224
222
219
219
221
$2.0625
100
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
Made equal to
1916 Months-
January
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
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'
550 HISTORY OF PRICES DURING THE WAR.
8. A COMPARISON OF CONTROLLED PRICES AT WHOLE-
SALE WITH CORRESPONDING CONTROLLED PRICES AT
RETAIL.
The great bulk of regulation over prices administered by the Fed-
eral Government during the war pertained to producer or wholesale
prices. There was no real attempt, save in food and fuel, to control
prices at retail. The task of controlling retail prices, infinitely more
difficult than that of controlling wholesale prices, was undertaken in
a comprehensive manner by the Food Administration after its whole-
sale control was well underway. Since the consumer was more
directly concerned with the effects of retail control, there attaches
peculiar interest to the relative prices at which foods at wholesale
and those at retail were held after control began late in 1917. There
follows a tabulation of relative prices for 25 leading food commodities
at wholesale and at retail, which were made strictly comparable by
letting their respective prewar basis (average actual price for 1913)
equal 100. 1
1 These relative prices were made from representative actual retail prices, quoted at various cities through-
out the United States, as compiled by the Bureau of Labor Statistics.
GOVERNMENT CONTROL OVER PRICES.
QfO OQO
35 O Ot--
O i 1 OS
2 as
551
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552
HISTORY OF PRICES DURING THE WAR.
t>- fcO *rt< * I CO C^ OO CO -^ CQ OO ^J< O OO CO C^ O5 OS O O l^-
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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
<H
5?
i
1
toco co co co '
Willapa Harbor
Toholas
Quccts River
After reaching a basis for maximum prices to be paid to the fishermen, a committeee
consisting of three State food administrators, Mr. Deming, who represented the division
of coordination of purchase, and Mr. Warren, who represented the canned foods division,
Investigated packing costs in Alaska and the following maximum prices on the different
grades were established.
CANNED SALMON.
Alaska salmon.
No. 1
tails (per
dozen).
No. 1
flats (per
dozen).
Halve >
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.
(</) The original storer is the person, firm, corporation, or association that owns
poultry when first placed in a cold-storage warehouse.
NOTES. (1) Where a licensee sells poultry within 30 days from the date of original
storage, the buyer may also be considered the original storer to the extent that ho
may add to the maximum advance over cost, allowed in selling as a wholesaler, jobber,
etc., any part of 6 per cent over the first storer's cost not added by the first storer.
In such cases the first storer who sells within 30 days must inform the buyer what
portion of 6 per cent over his cost he has added.
(2) Where a definite lot of poultry is sold before it is placed in a. cold-storage ware-
house, and if title to this lot actually passes to the purchaser, or if title is retained
by the seller merely as security for the purchase price, and thereafter the poultry is put
in the warehouse, the purchaser will be considered the original storer, even though the
poultry is carried and insured in the seller's name.
Determination of costs. Wherever in the following rules dealers in frozen poultry
are limited in the advance over cost at which such poultry may be sold, " cost " shall
be construed to include the purchase price, or in the case of the original packer or
shipper the cost into storage, plus storage charges, interest on the goods in storage,
and insurance on goods in storage incurred by the seller up to the time of sale, but
not to include any other expenses.
In determining cost the licensee may average the cost of all frozen poultry of the
same kind and grade which have not already been contracted to be sold, and may
take such average cost as the cost of any particular lot of that kind and grade. The
licensee must keep a record of the "manner in which such average has been arrived at
and shall take as the cost of all stock remaining on hand from lots already averaged,
the average cost previously arrived at. If the cost of any frozen poultry is averaged, the
cost of all frozen -poultry must be averaged.
NOTES. (1) The maximum advances over cost specified in the following rules are
not to be regarded as normal or so recognized by the Food Administration. They are
intended only to prevent speculation and are purposely made wide to cover cases where
methods of doing business are more .expensive, to the extent that such methods are
justified. Those maximum advances must not be exceeded in selling any specified lot
of poultry, and the average advance over cost charged by any dealer must not be more
than sufficient to return to him a reasonable profit on his investment in accordance with
general rule 5, which is as follows : " The licensee shall not import, manufacture, store,
distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, un-
reasonable, discriminatory, or unfair commission or storage charge."
(2) Profits on different sales can not be averaged. The licensee is limited on each
transaction to the maximum profit permitted by the rule and regulations.
(3) Where a dealer in the sale of poultry adds less than the maximum advance over
cost permitted by the rules, the buyer is not, because of this fact, permitted to add to
the maximum advance over cost allowed to him any part, of the maximum advance
allowed to the seller which the seller did not add.
(4) The special rules regulating the profits of dealers in frozen poultry do not apply
to poultry that is placed in a cold-storage warehouse, but which is removed from the
cold-storage warehouse, for distribution for consumption, within 30 days after the date
of the original entry of such poultry into the cold-storage warehouse.
SPECIAL REGULATIONS.
Rule 1. Purchase from dealer charging unreasonable margin prohibited. No
licensee shall knowingly purchase frozen poultry from a dealer who sells at
a greater advance over cost than the maximum specified in the following rules,
(Issued Mar. 2, 1918; repealed Jan. 8, 1919.)
Rule 2. Maximum margins for original packer or shipper. The original packer
or shipper, storing in a cold-storage warehouse, shall not sell frozen poultry
to wholesalers at an advance of more than 6 per cent over cost. In case frozen
poultry is stored in the name of a commission merchant, the original storer
shall be deemed to be the consignor for whom the commission merchant acts
as agent. An additional advance not exceeding 5 per cent of cost may be
charged by the original packer or shipper in selling to jobbers or suppliers
of hotels and institutions. An additional advance not exceeding 10 per cent
of cost may be charged in selling to retailers, or an additional advance not
exceeding 15 per cent of cost may be charged if the packer performs the
functions of a supplier of hotels and institutions, as heretofore denned. (Is-
f)18 HISTORY OF PRICES DURING THE WAR.
-sued Mar. 2, 1918; margins slightly changed July 26, 1918; repealed Jan. 8,
1919.)
Rule 3. Maximum commissions. A commission merchant shall not receive a
commission of more than 5 per cent on frozen poultry consigned to him by
shippers or packers. If a commission merchant acts as an agent for dealers
other than shippers or packers for the distribution of surplus stocks, the
selling price shall not exceed the maximum advance over cost to the consignor
permitted to such consignor by the following rules, which advance shall in-
clude the commission for such sale. A commission merchant who takes to
account consigned frozen poultry shall not receive any other profit beyond the
amount of the commission before specified.
A commission merchant shall require from consignors a statement of cost
of goods and maximum selling price allowable under these rules. (Issued
Mar. 2, 1918; repealed Jan. 8, 1919.)
Rule 4. Maximum margin for wholesaler. A wholesaler shall not sell frozen
poultry at an advance of more than 5 per cent over cost. If a wholesaler also
sells as a jobber, he shall not sell at an advance of more than 10 per cent over
cost, as provided for jobbers in rule 5. The above maximum advances may be
increased by not to exceed 6 per cent of cost in cases where the wholesaler is
also the original storer in a cold-storage warehouse. (Issued Mar. 2, 1918;
repealed Jan. 8, 1919.)
Rule 5. Maximum margin for jobber. A jobber shall not sell frozen poultry at
an advance of more than 10 per cent over cost. The above maximum advance
may be increased by not to exceed 6 per cent of cost in cases where the jobber
is also the original storer in a cold-storage warehouse.
Rule 6. Maximum margin for supplier of hotels and institutions. A supplier
of hotels and institutions shall not sell frozen poultry at an advance of more
than 15 per cent over cost. The above maximum advance may be increased by
not to exceed 6 per cent of cost in cases where the supplier of hotels and insti-
tutions is also the original storer in a cold-storage warehouse.
Rule 7. Direct line of distribution defined. A sale by any dealer in frozen
poultry in any of the classes indicated below^ to a dealer in any succeeding
class shall be considered to be in the direct line of distribution :
Class 1: Original packers and shippers.
Class 2: Commission merchants wholesalers.
Class 3 : Jobbers suppliers of hotels and institutions.
Class 4: Retailers hotels and institutions.
Rule 8. Intertrading restricted. All trading in frozen poultry shall serve to
move the frozen poultry in the direct line of distribution to the consumer, and
nothing contained in this or the preceding rule shall authorize any licensee to
use any more indirect method of distribution of frozen poultry. One sale of
any lot of frozen poultry between dealers in the same class may* be made where
necessary to supply the reasonable requirements of the buyer's business, pro-
vided a report is made promptly to the local Federal food administrator. Such
sales shall be made at an advance of not more than 5 per cent over cost, except
when sold by the original storer, who shall sell at not more than 6 per cent over
cost. If sold by a commission merchant to a wholesaler, the commission shall
not exceed 5 per cent.
Except for such sales, no licensee shall sell to another in the same or any
preceding class of distribution without the written consent of the local Federal
food administrator, which will be given only in extraordinary circumstances.
Where such consent is given, the dealer shall not sell at an advance of more
than one-fourth cent per pound over cost, nor in the case of a commission mer-
chant selling to a wholesaler shall the commission amount to more than one-
fourth cent per pound : Provided, however, That nothing in this rule shall pre-
vent sales at cost: Provided further, That nothing in this rule shall prevent
sales for immediate delivery from one city to another for actual distribution to
relieve exceptional local shortage, but a report of any such sale must be
promptly made to the local Federal food administrator, with the reasons there-
for. Such sales shall be made at a price not to exceed 5 per cent over cost ; or
if sold by a commission merchant to a wholesaler, the commission shall not
exceed 5 per cent : And provided further, That nothing in the rule shall prevent
a commission merchant from acting as an agent for dealers other than original
shippers and packers, as provided in rule 8. (Issued Mar. 2, 1918; added to
July 26, 1918; repealed Jan. 8, 1919.)
NOTE. Licensees will be expected to find out whether sales are justifiable by obtain-
ing information as to the class in which the seller and the buyer arc dealing and the
location and class of the licensee from whom the seller purchased. This information
should be placed on all confirmations of sales.
GOVERNMENT KEGULATIONS RELATING TO PRICES. 619
Rule 9. Brokerage to be included in margins. If brokers act as agents in any
sale of frozen poultry under llie.se rules, brokerage paid shall not be added to
the selling price of the goods. (Issued Mar. 2, 1918; repealed Jan. 8, 1919.)
C ADDITIONAL REGULATIONS GOVERNING COMMISSION MER-
CHANTS, BROKERS, AND AUCTIONEERS DEALING IN POULTRY.
Hule 1. Commission or brokerage not to be unreasonable or discriminatory.
The licensee fehall not charge, directly or indirectly, an unjust, exorbitant,
unreasonable, discriminatory, or unfair commission or brokerage on the sale
of poultry. (Issued July 10, 1918; repealed Jan. 8, 1919.)
. 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
specilically treated under B, rule 3, supra.
Rule 2. Prompt remittance and proper account sales to be rendered. The
licensee shall remit promptly following the sale of poultry received on con-
signment for sale or distribution and shall render to the consignor an account
showing tlie 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. 8, 1919.)
NOTE. When a commission merchant receives a consignment of poultry and guaran-
tees to the consignor a definite selling price, he must show on the account sales the
actual price at which the goods are sold, together with services actually performed and
expenses actually incurred, and as a separate item must show any sum paid to the
consignor by reason of the commission merchant's contract of guaranty. Failure to do
this will be considered a violation of the above rule and also a misstatemeut of the
price at which commodities are being sold, in violation of general rule 19.
Rule 3. Agent not to buy from principal unless noted on account of sales. The
licensee shall not, directly or indirectly, sell consigned poultry or poultry with
the sale of which on commission he is intrusted to himself or to anyone con-
nected with his business, unless he notes the facts of such transaction on the
account of sales.
NOTE. This rule is not intended to relieve the licensee from any legal obligation
resting on him to obtain authorization from the shipper before taking to account goods
consigned to him or to obtain the ratification of such a transaction.
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.
Rule 15. Certificate of value to be furnished to cold-storage warehousemen.
The licensee storing poultry with a cold-storage warehouseman upon which the
warehouseman either directly or indirectly loans money shall upon request of
such warehouseman file with him a certificate stating the market value of the
goods stored and shall make no false or misleading statement in such certificate
nor shall he fail to maintain the margin required by the regulations of the Food
Administration on loans made by cold-storage warehousemen. (Issued Feb. 7,
1918, as to " commodities required to be licensed " ; repealed Jan. 8, 1919.)
XIX. DISTRIBUTORS OF EGGS.
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 a 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 Administrator recognizes the following classes of
dealers in fresh eggs:
1. Original packers and shippers,
2. Commission merchants and wholesalers.
3. Jobbers and suppliers of hotels and institutions.
4. Retailers.
All trading in fresh eggs must contribute toward moving the eggs in a direct
line to the consumer. Sales between dealers in any one of the classes men-
620 HISTORY OF PRICES DURING THE WAR.
t.ionecl above are prohibited except as follows : Sales between wholesalers in
different cities will for the present be permitted where necessary to supply the
reasonable reqiiirements of the buyer's business, provided there is an actual
shipment of the goods, and provided the movement between cities is in the direc-
tion of normal crop movement from producer to consumer. In addition thereto
not more than two sales of any lot of fresh eggs 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
business, 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 eggs to any dealer in a class further re-
moved 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 eggs between dealers in the same
class that are made at a price that is less than or equal to the initial cost to the
seller of the particular commodities 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 the buyer are dealing and
the location and class of the licensee from whom the seller purchased. This in-
formation should be placed on all confirmations of sales.
B. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF COLD-
STORAGE EGGS.
In the following rules the different kinds of dealers in cold-storage eggs are
defined as follows:
(a) An original packer or shipper is a person, firm, corporation, or association that
assembles and packs the eggs for market or storage.
(b) 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 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 origi-
nal packer or shipper, that sells to jobbers or to suppliers of hotels and institutions.
(rf) 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.
(/) A retailer is a person, firm, corporation, or association that sells or distributes
to consumers.
(cj) The original storer is the person, firm, corporation, or association that owns
eggs when first placed in a cold-storage warehouse.
NOTE. (1) Where a licensee sells eggs within 30 days from the date of original
storage, the buyer may also be considered the original storer to the extent that he
may add to the maximum advance over cost allowed in selling as a wholesaler, jobber,
etc., any part of 6 per cent over the first storer's cost not added by the first storer.
In such cases the first storer who sells within 30 days must inform the buyer what
portion of 6 per cent over his cost he has added.
(2) Where a definite lot of eggs is sold before it is placed in a cold-storage ware-
house, and if title to this lot actually passes to the purchaser, or if title is retained
by the seller merely as security for the purchase price, and thereafter the eggs are
put in the warehouse, the purchaser will be considered the original storer even though
the eggs are carried and insured in tne seller's name.
Wherever in the following rules dealers in cold-storage eggs are limited in the ad-
vance over cost at which such eggs may be sold, " cost " shall be construed to include
the purchase price, or in the case of the original packer or shipper the cost into
storage, plus storage charges, interest on the goods in storage, and insurance on goods
in storage incurred by the seller up to the time of sale, but not to include any other
expenses, except as hereinafter provided in the case of candled eggs.
GOVERNMENT REGULATIONS RELATING TO PRICES. 621
In selling eggs candied by the licensee the actual net candling loss may be included,
in the cost, but the expense of labor and materials in candling and all repacking ex-
penses shall not he included.
In determining cost licensees may average the cost of all lots of cold-storage eggs
of the same grade which were originally stored in the same month and which have
not already been contracted to be sold, and may take such average cost as the cost
of any particular' lot. The licensee must keep a record of the manner in which such
average had been arrived at and shall take as the cost of all stock remaining on
hand from lots already averaged the average cost previously arrived at. If the cost
of any cold-storage eggs is averaged, the cost of all cold-storage eggs must be averaged.
N T OTE. (1) The maximum advances over cost specified in the following rules are
uot to be regarded as normal or so recognized by the Food Administration. They
are intended only to prevent speculation and are purposely made wide to cover cases
where the methods of doing business are more expensive, to the extent that such,
methods are justified. These maximum advances must not be exceeded in selling any
specified lot of eggs, and the average advance over cost charged by any dealer must
not be more than sufficient to return to him a reasonable profit on his investment in
accordance with general rule 5, which is 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."
(2) The special rules regulating the profits of dealers in cold-storage eggs do not
apply to eggs that are placed in a cold-storage warehouse, but which are removed from,
the cold-storage warehouse for distribution for consumption within 30 days after
the date of the original entry of such eggs into the cold-storage warehouse.
(o.) Profits on different sales can not be averaged. The licensee is limited on each
transaction to the maximum profit permitted by the rules and regulations.
(4) Where a dealer in the sale of cold-storage eggs adds less than the maximum
advance over cost permitted by the rules, the buyer is not because of this fact per-
mitted to add to the maximum advance over cost allowed to him any part of the
maximum advance allowed to the seller which the seller did not add.
Rule 1. Purchase from dealer charging unreasonable margin prohibited. No
licensee shall knowingly purchase cold-storage eggs from a dealer who sells at a
greater advance over cost than the maximum specified in the following rules.
(Issued Mar. 2, 1918; repealed Feb. 14, 1919.)
Rule 2. Maximum margins for original packer or shipper. The original packer
or shipper storing in a cold-storage warehouse shall not sell cold-storage eggs
to wholesalers at an advance of more than 6 per cent over cost. In case cold-
storage eggs are stored in the name of a commission merchant, the original
storer shall be deemed to be the consignor for whom the commission merchant
acts as agent. An additional advance not exceeding 4 per cent of cost may be
charged by the original packer or shipper in selling eggs at mark or 7 per cent
over cost in selling eggs candled by him to jobbers or suppliers of hotels and
institutions. An additional advance may be charged in .selling to retailers not
exceeding 5 per cent of cost if sold at mark (i. e., in original packages), and not
exceeding 10 per cent of cost in selling eggs candled by him. An additional
advance not exceeding 12 per cent of cost may be charged if the original packer
performs the functions of a supplier of hotels and institutions, as heretofore
defined. (Issued Mar. 2, 1918; margins slightly changed July 26, 1918, and
Nov. 11, 1918; repealed Feb. 14, 1919.)
Rule 3. Maximum commissions. A commission merchant shall not receive a
commission of more than 4 per cent on cold-storage eggs consigned to him. The
selling price of cold-storage eggs sold through a commission merchant shall not
exceed the maximum advance over cost permitted to the consignor by these
rules, which advance shall include the commission for the sale. A commission
merchant who takes to .account consigned cold-storage eggs shall not receive
any other profit beyond the amount of the commission before specified. A com-
mission merchant shall require from consignors a statement of cost of goods and
maximum selling price allowable under these rules. (Issued Mar. 2, 1918;
repealed Feb. 14, 1919.)
Rule 4. Maximum margin for wholesaler. A wholesaler shall not sell cold-
storage eggs at mark at an advance of more than 4 per cent over cost or 7 per
cent over cost if he candles the eggs. If a wholesaler also sells as a jobber, he
shall not sell eggs at mark at an advance of more than 5 per cent over cost or
eggs candled by him at more than 10 per cent over cost as provided for jobbers
in rules 5 and 6. The above maximum advances may be increased by not to
exceed 6 per cent of cost, in cases where the wholesaler is also the original
storer in a cold-storage warehouse. (Issued Mar. 2, 1918; margins slightly
changed Nov. 11, 1918; repealed Feb. 14, 1919.)
Rule 5. Maximum margin for jobber of cold-storage eggs at mark. A jobber
shall not sell cold-storage eggs at mark (i. e., in original packages) at an
622 HISTORY OF PRICES DURING THE WAR.
advance of more than 5 per cent over cost. (Issued Mar. 2, 1918; repealed
Feb. 14, 1919.)
Rule 6. Maximum margin for jobber of candled eggs. A jobber shall not sell
-eggs candled by him at an advance of more than 10 per cent over cost. The
maximum advance prescribed in rules 5 and 6 may be increased by not to exceed
6 per cent of cost in cases where the jobber is also the original storer in a cold-
storage warehouse. (Issued Mar. 2, 1918; repealed Feb. 14, 1919.)
Rule 7. Maximum margin for supplier of hotels and institutions. A supplier
of hotels and institutions shall not sell eggs candled and selected by him at
more than 12 per cent over cost. This maximum advance may be increased by
not to exceed 6 per cent of cost in cases where the supplier of hotels and insti-
tutions is also the original storer in .a cold-storage warehouse. (Issued Mar. 2,
1918; repealed Feb. 14, 1919.)
Rule 8. Maximum margin for retailer storing eggs during 1918. A retailer
who is the original storer of eggs during 1918 shall not sell such eggs candled
and selected by him at an advance of more than 21 per cent over cost. -(Issued
Mar, 2, 1918; margins changed Oct. 22, 1918; repealed Feb. 14, 1919.)
NOTE. Maximum margins for retailers on all sales of eggs other than those above
specified will be announced separately.
Rule 9. Direct line of distribution defined. A sale by any dealer in cold-
storage eggs in any of the classes indicated below to a dealer in any succeeding
class shall be considered to be in the direct line of distribution:
Class 1. Original packers and shippers.
Class 2. Commission merchants Wholesalers.
Class 3. Jobbers Suppliers of hotels and institutions.
Class 4. Retailers Hotels and institutions.
(Issued Mar. 2, 1918; repealed Feb. 14, 1919.)
Hule 10. Intertrading restricted. All trading in cold-storage eggs shall serve
to move the cold-storage eggs in the direct line of distribution to the consumer
ond nothing contained in this or the preceding rule shall authorize any licensee
to use any more indirect method of distribution than he has been accustomed
to use in the past in the distribution of egg;-. One sale of any lot of cold-storage
eggs between dealers in the same class may be made where necessary to supply
the reasonable requirements of the buyer's business. Such sales shall bo made
at an advance of not more than 2 per cent over cost, except when sold by a
-wholesaler or jobber who is also the original storer who shall sell at not more
than 6 per cent over cost. Where a dealer buys cold-storage eggs from another
dealer in the same class other than the original storer he must sell the eggs so
bought at not more than the maximum advances over cost specified in the above
rules minus 2 per cent. A licensee who does business both as a wholesaler and
jobber may buy as a jobber "with the intention of reselling to a retailer or of
making the one permissible resale to other jobbers, or to suppliers of hotels or
institutions.
Except for such sales no licensee shall sell to another in the same or any pre-
ceding class of distribution without the written consent of the local Federal
food administrator, which will be given only in extraordinary circumstances.
Where such consent is given the dealer shall not sell at an advance of more than
K) cents per case orer cost, nor in the case of a commission merchant selling to a
wholesaler shall the commission amount to more than 10 cents per case: Pro-
vided, limccver. That nothing in this rule -shall prevent sales for immediate
delivery from one city to another for actual distribution to relieve exceptional
local shortage, but a report of any such sale must be promptly made to the
local Federal food administrator, with the reasons therefor. Such sales shall
be made at a price not to exceed 4 per cent over cost. (Issued Mar. 2, 1918- ;
advance at which dealers may sell changed July 26, 1918, and Oct. 31, 1918;
repealed Feb. 14, 1919.)
NOTE. Licensees will be expected to find out whether sales are justifiable by obtain-
ing information as to the class in which the seller and the buyer are dealing and the
location and cla&s of the licensee from whom the seller purchased. This information
should be placed on all confirmations of ales.
Rule 11. Brokerage to be included in margins. If brokers act as agents in any
sale of cold-storage eggs under these rules brokerage paid shall not be added to
the selling price of the goods. (Issued Mar. 2, 1918 ; repealed Feb. 14, 1919.)
Rule 16. Certificate of value to be furnished to cold-storage warehousemen.
The licensee storing eggs with a cold-storage warehouseman upon which the
warehouseman either directly or indirectly loans money shall upon request of
GOVERNMENT REGULATIONS RELATING TO PRICES. 623
such warehouseman file with him a certificate stating the market value of the
goods stored and shall make no false or misleading statement in such certificate
nor shall he fail to maintain the margin required by the regulations of the Food
Administration on loans made by cold-storage warehousemen. (Issued Feb. 7,
1918, as to " commodities required to be licensed " ; repealed Feb. 14, 1919.)
C. ADDITIONAL REGULATIONS GOVERNING COMMISSION MER-
CHANTS, BROKERS, AND AUCTIONEERS DEALING IN EGGS.
Rule 1. Commission or brokerage not to be unreasonable or discriminatory.
The licensee shall not charge, directly or indirectly, an unjust, exorbitant,
unreasonable, discriminating, or unfair commission or brokerage on the sale of
eggs. (Issued July 10, 1918; repealed Feb. 14, 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 tho 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
B, rule 3, supra.
Hule 2. Prompt remittance and proper account sales to be rendered. The
licensee shall remit promptly following the sale of eggs received on consignment
for sale or distribution arid 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 Feb. 14, 1919.)
NOTE. Where a commission merchant I'eceives a consignment of poultry or eggs and
guarantees to the consignor a definite selling price, he must show on the account sales
the actual price at which the goods are sold, together with services actually performed
and expenses actually incurred, and as a separate item must show any sum paid to the
consignor by reason of the commission merchant's contract of guaranty. Failure to do
this will be considered a violation of the above rule governing commission merchants
and also a misstatement of the price at which commodities are being sold in violation of
general rule 19.
Rule 3. Agent not to buy from principal unless noted on account of sales. The
licensee shall not, directly or indirectly, sell consigned eggs or eggs with the
sale of which on commission he is intrusted, 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 Feb. 14,
1919.)
NOTE. This rule is not intended to relieve the licensee from any legal obligation
resting on him to obtain authorization from tha shipper before taking to account goods
consigned to him or to obtain the ratification of such a transaction.
' 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.
I). ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS OF
EGGS.
Eule 1. Fresh or cold-storage eggs must not be sold at retail at more than
reasonable advance over cost. The licensee shall not sell fresh or cold-storage
eggs at retail at more than a reasonable advance over cost without regard to the
market or replacement value at the time of the sale. Cost shall include purchase
price and transportation charges, and where the retailer actually candles and
grades eggs he may include in the cost the actual loss from such candling and
grading. In the case of cold-storage eggs, cost shall include the following addi-
tional items:
1. Storage charges actually incurred.
2. Insurance charges actually incurred.
3. Interest on money invested at the current rate while eggs are in storage.
The licensee may average the cost of all lots of eggs of the same grade (and
in the case of cold-storage eggs, all eggs of the same grade which were originally
stored in the same month) in his possession at the point from which the sale is
made which have not already been contracted to be sold, and may take such
average cost as the cost of any particular lot. When new lots arc added and a
new average calculated, the licensee shall include in the new averaging all stock
remaining on hand from lots already averaged at the average cost previously
determined. If the cost of any eggs is averaged the cost of all eggs must be
624
HISTORY OF PRICES DURING THE WAR.
averaged. When costs are averaged the licensee must keep a record of the
manner in which such average has been arrived at. (Issued Oct 22, 1918- re-
pealed Feb. 14, 1919.)
NOTE. The Retail Section of the Distribution of Perishables of the United States Food
Administration has determined that any advance over cost in excess of 7 cents t,o 8 cents
a dozen is unreasonable and will be considered evidence of violation of the above rule.
The 7 cents per dozen represents the maximum for stores conducting the cash and carry
or no service plan, while the 8 cents per dozen is the maximum margin for the extra
service stores extending credit and delivery.
Retailer may have benefit of fractional cost on any transaction. Retailers whose deliv-
ered terminal costs figure in fractions may hav^ the benefit of such fractional costs. For
example, if eggs cost at terminal delivery 46J cents per dozen, the selling price may be
figured as follows :
CASH AND CARRY STORES.
Amount of sale.
Cost.
Margin.
Total.
Fraction
added.
Maximum
selling
price.
1 dozen
Cents.
46J
Cents.
7
Cents.
53V
Cent.
$0 ^4
2 dozen
92
14
106J
1
1 07
3 dozen..
13J>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 <is handling commodities in several different ways the only method
of making clear the nature of any particular transaction is a written or oral definite
understanding. Cases, however, have been called to our attention where a licensee
never does any commission business, always purchases shipments at a net price, and
where the receiver is constantly receiving shipments from shippers with whom he
has never had any prior negotiations. In such cases the nature of the business may
be entirely clear to the shipper without a definite written agreement. The buyer should
show by a memorandum of purchase exactly what the nature of the transaction is,
including the purchase price and any deductions permitted by the contract of purchase,
and he must not use any expression which will lead the shipper to believe that the
transaction is an agency transaction. In order to avoid misleading statements the
Food Administration has insisted that the licensee shall discontinue the use of the term
" net return basis " to describe purchases. " Net return basis " implies that there is a
gross return and that something has been deducted to reach a net return. It is an
expression applicable to an agency transaction and not to a purchase.
XX. BUTTER.
A. SPECIAL REGULATIONS GOVERNING MANUFACTURERS AND
DISTRIBUTORS OF BUTTER.
Rule 1 (amended Dec. 31, effective Jan. 6, 1919). Cold-storage butter to be sold
at reasonable advance over cost. The licensee dealing in cold-storage butter
shall sell such butter without regard to the market or replacement value at
the time of sale at not more than a reasonable advance over cost to him of
the particular butter sold, provided that the licensee may average by weight
the cost of all cold-storage butter of the same grade which has not already
been contracted to be sold. The licensee shall keep a record of the manner in
which such average has been determined. When new lots are added and a new
average calculated the licensee shall include in the new average all stock
remaining on hand of lots already averaged at the average cost previously
determined. If the cost of any cold-storage butter is averaged, the cost of all
cold-storage butter must be averaged.
Cost for the purpose of this rule shall include :
1. Purchase price.
2. Transportation charges, if any (not including drayage).
3. Storage charges actually incurred on cold-storage butter.
4. Insurance charges actually incurred on cold-storage butter.
5. Interest on money invested at the current rate, while butter is in cold
storage.
6. Actual cost of printing if the butter is put in print form from tubs or
cubes.
Cost shall not include any allowance for shrinkage in weight, commissions,
expenses of breaking packages and repacking, or other expenses than those
herein listed. (Issued June 19, 1918, as to "cold-storage butter"; changed
July 19, 1918, to apply to all butter; changed Jan. 6, 1919, to apply to cold-
storage butter ; repealed Jan. 28, 1919. )
NOTE. In any case where a licensee owns his own cold-storage warehouse in which
butter owned by him is stored more than 30 days he may include in his calculation of
cost a charge for warehousing equal to that ordinarily paid to a public warehouse
for similar services.
Reports to le furnished on demand. The licensee must be prepared to furnish to the
United States Food Administration or to the Federal food administrator of his State
upon demand a full report on costs and margins charged or on the maximum prices
charged in any given period for any grade of butter or any other information which may
be considered necessary for the purpose of this rule.
Maximum margins. The Food Administration will consider the sale of any grade of
butter by any dealer other than a manufacturer or retailer at an advance over cost, as
hereinbefore defined, of more than the following margins as prima facie evidence of a
violation of the food control act and the above rule :
(a) One cent per pound on car lot sales.
(6) One and one-half cents per pound on sales of less than a car lot, but amounting
to 7,000 pounds or more.
(c) Two cents per pounds on sales of less than 7,000 pounds, but. amounting to
3,500 or more.
125547 20 40
626
HISTORY OF PRICES DURING THE WAR.
(d) Two and one-half cents per pound on sales of less than 3,500 pounds, but amount-
ing to 700 pounds or more.
(e) Three cents per pound on sales less than 700 pounds but amounting to 100 pounds
or more.
(/) Thrco and three-fourths cents per pound on sales of less than 100 pounds.
In addition to the selling margin, which normally should be considerably below the
above maximum margins, and must in no case exceed such maximum margins, any dealer
who carries butter in cold storage more than two full calendar months may add a- margin
of not more than 1 cent per pound, and an additional one-fourth cent per pound for
each calendar month thereafter during which he carries the butter in storage. The
total margin for carrying butter in cold storage shall not exceed 2 cents per pound.
The following table indicates th6 method by which the dealer may calculate tho maxi-
mum amounts which may be added to selling margins where a dealer holds butter in
storage more than two full calendar months. It should be noted that a calendar month
does not mean 30 days.
Month.
May.
June.
July.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Ausnist
1
September
1
i
October
li
11
1
November
1?
n
li
i
December '.
2
if
li
li
1
January
2
2
If
li
li
1
February
2
2
2
If
l|
1
1
March...
2
2
2
2
I'
li
1*
1
April.
2
2
2
2
2
1!
I 1
1 1
1
May
2
2
2
2
2
S
If
l|
i
1
June...
2
2
2
2
2
2
2
l|
If
1 1
1
July
2
2
2
2
2
2
2
3
11
"
NOTE. The nionihs in the column at. the left indicate months in which tho butter is
sold. The figures indicate cents per pound. For example, a dealer storing butter in June
and selling in October may add li cents per pound to his selling margin, which must in
no case exceed the margins indicated under rule 1.
The above maximum margins are not to be regarded as fair normal margins or as so
recognized by the Food Administration. They are intended to prevent speculation and
are purposely made wide enough to cover cases where the methods of doing business arc
more expensive, to the extent that such methods are justified. These maximum advances
must not be exceeded in selling any lot of butter and the prices charged by any dealer
must not in any case be more than sufficient to return to him a reasonable profit en his
investment.
Licensees will be expected to sell butter in usual quantities to customers and whcro
it appears that sales are being made in smaller quantities than customarily for the pur-
pose of charging larger margins than would be proper on larger sales such larger margins
will not be considered justifiable. Larger margins are only proper for sales of smaller
quantities where selling in small quantities is the usual course of business involving a
greater expense in operation.
Where a licensee contracts to sell a quantity of butter to be delivered in smaller
quantities at future dates the dealer must be guided by the maximum margins indicated
for sales of the quantity contracted to be sold and not for sales of the amount of any
delivery.
Sales from brancli houses. Where butter is transferred by any dealer to a branch
house of such dealer in the same or another city such transfer shall not be made at an
advance over cost of more than three-fourths of a cent per pound, regardless of quantity.
In such case, however, when the transaction is in as direct a line of distribution as prac-
ticable the branch house may figure the transfer price as its purchase price and may sell
butter at an advance over cost on such basis not greater than the maximum margins indi-
cated above. If the branch house transfers the butter to another branch house of the
same dealer the total maximum margin added by both houses shall not be greater than
the maximum margin allowed to the first branch, house by this rule.
Collusive sales. Any sale by a dealer to another dealer at a price higher than the
price which the second dealer would have to pay in buying on the open market will
be considered evidence of a collusive sale intended to defeat the purpose of rule 1 by
increasing the purchaser's cost and the price which he may charge upon a rising
market.
Rule 2 (amended Dec. 31, to be effective Jan. 6, 1919). Manufacturer's mar-
gins on sales of cold-storage butter. The manufacturer in selling butter manu-
factured and placed in cold storage by him snail be governed by rule 1, and the
maximum margins indicated therewith, except that in figuring his cost as pro-
vided in rule 1, he shall take instead of the purchase price the market quota-
tion on the kind and grade of butter placed in cold storage as quoted in a
GOVERNMENT REGULATIONS RELATING TO PRICES. 627
well-recognized daily commercial price current in the city where and on the
day when the goods are placed in storage. In case there is no well-recognized
daily price current in the city where the goods are stored then he may use the
quotation given in a daily commercial price current in the large market nearest
the place of storage. From this must be deducted the amount by which the
freight from the point of manufacture to the place of storage is less than the
freight from the place of manufacture to such large market. In case the
freight from the place of manufacture to the place of storage exceeds the
freight from the place of manufacture to such large market, the excess may
be added to the market quotation. (Rule issued June 19, 1918, provided meth-
ods of computing purchase price of manufacturer who acts as wholesaler or
jobber. Dec. 12, 1918. maximum margin on butter set at 5 cents per pound over
cost of butter fat. Jan. 6, 1919, maximum margins indicated for cold storage
butter. Repealed Jan. 28, 1919.)
Bule 3 (amended Dee. 31, to be effective Jan. 6, 1919). Commissions limited.
No licensee shall pay and no commission merchant shall receive a commission
on cold-storage butter of more than the following:
Car lot sales f cent per pound
Sales less than car lot 1 cent per pound
The licensee shall inform any commission merchant selling butter for him
of the maximum permitted price at which such butter may be sold.
The commission merchant shall not charge both a commission and also a
profit on cold-storage butter. (Rule issued June 19, 1918, provided commission
on cold-storage butter which was subsequently changed as to fresh and cold
.storage on July 19, 1918, Aug. 8, 1918, and Jan. 6, 1-919; repealed Jan. 28, 1919.)
Snle 4 (amended Dec. 31, to be effective Jan. 6, 1919). Intel-trading restricted.
The licensee in selling cold-storage butter shall keep it moving to the con-
sumer in as direct a line as practicable and without unreasonable delay. Tlie
direct line of distribution of butter is from a licensee in any of the following
classes to a licensee in any succeeding class :
Class 1. Manufacturers.
Class 2. Wholesalers and jobbers. These include all persons, firms, corpora-
tions, and associations who distribute butter in any way, except at retail, and
all manufacturers who perform services customarily performed by wholesalers
and jobbers.
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.
The following types 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 general rule 6.
A. A sale by any dealer in butter to a dealer in any succeeding class will be consid-
ered as In the direct line of distribution.
B. One sale, nnd only one sale, of the same goods between dealers in class 2 in the
same city will be considered justifiable when necessary to supply the reasonable 10-
<!<iirernents of the buyer's business, without the special consent of the local Federal
Food Administrator, provided, however, that a second sale of the same goods 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 cf not more
than one-half of the margins indicated above, and provided that the seller notifies the
buyer that this is a second sale.
C. In addition to such resales 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 butter follows the sale, and that the shipment is for the purpose of
obtaining supplies from primary markets for reasonable requirements of the purchaser's
business ; provided further, that not more than three such sales of any lot of butter
between dealers in class 2 shall be made without special permission ; and the third
sale shall be made at an advance over cost of not more than one-half of the above
margins.
1). Any resale between dealers without any advance over cost will be considered as
justifiable in addition to such other resales as are permitted.
(Rule issued June 19, 1918, governed resales of cold-storage butter; changed
July 19, 1918, to include all butter, and Jan. , 1919, to cold-storage tmtter; re-
pealed Jan. 28, 1919.)
628 HISTORY OF PRICES DURING THE WAR.
Rule 5 (amended Dec. 31, to be effective Jan. 6, 1919). The licensee making
second sale in same class to notify buyer. The licensee in class 2 as defined
above who purchases cold-storage butter from another wholesaler or jobber in
such class, or from a manufacturer performing the services, or a wholesaler
or jobber, and who resells to another dealer in class 2, shall notify such dealer
of the prior sales of such butter within that class of which he has knowledge.
(Issued June 19, 1918, as to cold-storage butter; changed July 19, 1918, to all
butter ; changed Jan. 6, 1919, to cold-storage butter ; repealed Jan. 28, 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.
Rule 10. Certificate of value to be furnished to cold-storage warehousemen.
The licensee storing butter with a cold-storage warehouseman upon which the
warehouseman either directly or indirectly loans money shall, upon request of
such warehouseman, file with him a certificate stating the market value of the
goods stored and shall make no false or misleading statement in such certificate
nor shall he fail to maintain the margin required by the regulations of the Food
Administration on loans made by cold-storage warehousemen. (Issued Feb. 7,
1918, as to " commodities required to be licensed " ; repealed Jan. 28, 1919.)
B. ADDITIONAL REGULATIONS GOVERNING BROKERS, COMMISSION
MERCHANTS, AND AUCTIONEERS DEALING EITHER IN FRESH OR
COLD-STORAGE BUTTER.
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
butter. (Dec. 23, 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 Alministration 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 butter received on consign-
ment for sale or distribution, and shall render to the consignor an account show-
ing 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.)
NOTE. Where a commission merchant receives a consignment of butter and guarantees
to the consignor a definite selling price, he must show on the account sales the actual
price at which the goods are sold, together with services actually performed and ex-
penses actually incurred, and as a separate item must show any sum paid to the con-
signor by reason of the commission merchant's contract of guaranty. Failure to do this
will be considered a violation of the above rule governing commission merchants and
also a misstatement of the price at which commodities are being sold in violation of
general rule 19.
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
BUTTER.
The attention of all retail dealers in butter is called to Rule A-l of the above
regulations, which is headed : " Rule 1. Butter to be sold at a reasonable advance
over cost."
The United States Food Administration will regard any advance in excess
of 6 to 7 cents per pound over cost (as defined in rule 1) as unreasonable and
as evidence of violation of rule 1. The 6 cents per pound represents the
maximum margin for stores conducted on the cash and carry or no-service
pjan, while 7 cents per pound is the maximum margin for the extra-service
stores extending credit and delivery.
Retailer may have benefit of fractional cost on any transaction. Retailers
whose delivered terminal costs figure in fractions may have the benefit of such
fractional costs on any transaction. For example, if butter costs at terminal
delivery 46^ cents per pound, the selling price may be figured as follows :
GOVERNMENT REGULATIONS RELATING TO PRICES.
' CASH AND CARRY STORES.
629
Amount of sale.
Cost.
Margin.
Total.
Fraction
added.
Maximum
selling
price.
1 pound
Cents.
46|
Cents.
6
Cents.
521
Cents.
$0 53
2 pounds
92*
12
104 \
i
1 05
3 pounds ...
138|
18
156|
*
1 57
The maximum selling price for the extra service or credit and delivery stores
would be 1 cent per pound higher.
In determining margins at 6 cents and 7 cents a pound on butter with the
fractional costs in the dealer's favor, the United States Food Administration
has given due consideration to the rising costs of operation which must be met
by the dealer.
In addition to the above margins the retailer who carries butter in cold
storage more than two full calendar months may add not more than 1 cent a
pound and an additional one-fourth cent a pound a month for each calendar
month thereafter during which he carries the butter in cold storage. The total
amount for carrying butter in cold storage so added, however, shall not exceed
2 cents per pound.
The food administration will consider any sale of butter by a retail dealer
at a greater margin than herein outlined as evidence subjecting the dealer to a
revocation of his license or such other penalty as the law provides.
XXI. CHEESE.
A. SPECIAL REGULATIONS GOVERNING MANUFACTURERS AND DIS-
TRIBUTORS OF ALL KINDS OF CHEESE.
Rule 1. Cheese to be sold at reasonable advance over cost. The licensee deal-
ing in cheese shall sell cheese without regard to market or replacement value at
not more than a reasonable advance over the cost of the particular cheese sold,
provided that the licensee may average by weight the cost of all cheese of the
same kind, shape, and grade which have not already been contracted to be sold.
The licensee shall keep a record of the manner in which such average has been
determined. 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 cheese is averaged, the cost of all cheese must be averaged.
(Issued June 32, 1918; margins on different grades of cheese changed July 12,
1918, and Aug. 2, 1918; repealed Jan. 6, 1919.)
Cost for the purpose of this rule shall include:
1. Purchase price.
2. Transportation charges, if any (not including drayage).
3. Storage charges actually incurred, provided that the cheese has been in
storage more than 60 days.
4. Insurance charges actually incurred, provided that the cheese has been in
storage more than 60 days.
5. Interest on money invested at the current rate, provided that the cheese
has been in storage more than 60 days.
6. Actual cost of paraffining, if any, not to exceed one-fourth cent per pound.
7. Actual cost of reboxing or dividing the type of American or Cheddar
cheese, known as Twins or double or triple Daisies, into smaller units, but in
no case exceeding one-half cent per pound.
Cost shall not include any allowance for shrinkage in weight, commissions,
expenses of breaking packages and repacking, or any other expenses than those
herein listed.
NOTE. In any case where a dealer owns his own storage warehouse in which cheese is
stored more than 60 days the dealer may include in his calculation of cost a charge for
warehousing equal to that ordinarily paid to a public warehouse for similar services.
Where cheese is carried in a private warehouse without refrigeration, refrigeration rates
must not be charged.
The dealer must calculate the actual cost of paraffining and will not be permitted arbi-
trarily to take one-fourth cent per pound as this cost. In cases where the cheese is
reweighed after paraffining the increased weight must be taken into consideration in
determining the cost.
630 HISTORY OF PEIES DURING THE WAR.
Reports to be furnished cm demand. The licensee must bo prepared to
furnish to the United States Food Administration or to the Federal food
administrator of his State upon demand a full report on costs and margins
charged or on the maximum prices charged in any given period for any kind of
cheese or any other information which may be considered necessary for the
purpose of this rule.
The maximum margins indicated by the Food Administration are not to be
regarded as fair normal margins or as so recognized by the Food Administra-
tion. They are intended only to prevent speculation and are purposely made
wide enough to cover cases where the methods of doing -business aTe more
expensive, to the extent that such methods are justified. These maximum
advances must not be exceeded in selling any lot of cheese, and the prices
charged by any dealer must not in any case be more than sufficient to return
to iiini a reasonable profit on his investment.
Sales from branch houses. Where cheese is transferred by any denier to
a branch house of such dealer in the same or another city such transfer shall
not be considered a sale governed by the maximum margins indicated i ? or
sales. No advance over cost for such transfer will be allowed except where
the main house actually handles the cheese, in which case advances over cost
for transfer not greater than those indicated below will be permitted, provided
the transaction is in as direct a line of distribution as practicable ; and the
branch house may figure the transfer price (see below) as its purchase price
and may sell cheese at an advance over cost on such basis not greater than the
maximum margins indicated below. If the branch house transfers the cheese
to another branch house of the same dealer, the total margin added by both
branch houses must not be greater than the maximum margins indicated below.
Collusive sales. Any sale by a dealer to another dealer at a price higher
than the price which the second dealer would have to pay in buying on tho
open market will be considered evidence of a collusive sale intended to defeat
the purpose of rule 1 by increasing the purchaser's cost and the price which
he may charge upon a rising market.
The price on the open market does not necessarily mean the price established
by a dairy board, especially when the dairy board does not hold its meetings
daily.
Cost in the ease of purchases of ungraded eheesc, The cost of any grade
of cheese must be figured on the purchase price of that grade. Where a dealer
purchases ungraded cheese at one price per pound regardless of the grades
contained in the lot he must not figure the purchase price per pound of any
part of this cheese higher than the price per pound actually paid for the
entire lot.
The growing practice due to present market conditions of buying cheese,
particularly round Swiss, from the factory before it is sufficiently matmvd
to permit of the determination of the quality of the product increases ma-
terially the speculative risk assumed by the buyer. It also results in lowering
the standard of quality. The Food Administration is strongly of the opinion
that this tendency should be stopped as uneconomical and believes that the
installation of grades will do much to stabilize values in this product. Where
dealers sell on grade they can reduce their speculative risk if they do not
purchase the cheese until its quality can be reasonably determined. The above
requirement as to figuring costs is intended to accomplish this result.
MAXIMUM MARGINS.
The Food Administration will consider the sale of any cheese of any of the follow-
ing kinds by any dealer other than the manufacturer or the retailer at an advance
over cost as hereinbefore defined of more than the following margins as prima facie
evidence of a violation of the food control act and the above rule.
Licensees will be expected to sell cheese in usual quantities to customers and where
it appears that sales are being made in .smaller quantities than customarily for the
purpose of charging larger margins than would he proper on larger sales such larger
margins will not be considered justifiable. Larger margins are only proper for sites
of smaller quantities where selling in small quantities is thp usual course of business
involving a greater expense in operation.
Where a licensee contracts to sell a quantity of cheese to be delivered in smaller
quantities at future dates the dealer must be guided by the maximum margins indi-
cated for sales of the quantity contracted to be sold and not for sales of the amount
of any delivery.
GOVERNMENT REGULATIONS RELATING TO PRICES. 631
/
AMERICAN OU CHEDDAR CHEESE.
(a) Three-fourths cent per pound on car-lot sales.
(6) One and one- fourth cents per pound on sales less than a car lot but amounting
to 7,000 pounds or more.
(c) One and three-fourths cents per pound on sales less than 7,000 pounds but
amounting to 4,000 pounds or more.
(d) Two and one-half cents per pound on sales less than 4,000 pounds but amount-
ing to 1,000 pounds or more.
(e) Three cents per pound on sales less than 1,000 pounds but amounting to 100
pounds or more.
(/') Three and one-half cents per pound on sales less than 100 pounds.
In addition to the selling margin, which normally should be considerably below
the above maximum margins, a further margin may be added where American or
Cheddar cheese is held in a warehouse for more than 30 days, of 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 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 American or Cheddar cheese to a
branch house where the main house actually handles the cheese shall not exceed one-
half cent per pound regardless of the quantity.
BOUND Oil TUB SWISS CHEESE-
(a) One and three- fourths cents per pound on car-lot sales.
(&) Two and one-half cents per pound on sales less than a car lot but amounting
to 6,000 pounds or more.
(c) Three* and one-half cents per pound on sales less than 6,000 pounds but amount-
ing to 3,000 pounds or more.
(d) Four cents per pound on sales less than 3,000 pounds but amounting to ouc
tub or more.
(c) Five cents per pound on sales less than one tub but amounting to 120 pounds
or more.
(f) Eight cents per pound on sales less than 120 pounds.
In addition to the selling margin, which should normally be considerably below
the above maximum margin, a further margin may be added where round or tub 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 the 30-day period during which
the cheese is held in the warehouse by the 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 date of original storage.
Transfer margins. The margins for transfer of round or tub Swiss cheese to a
branch house where the main house actually handles the cheese shall not exceed 1 cent
per pound regardless of quantity.
BLOCK SWISS CHEESE.
(a) One cent per pound on car-lot sales.
(Z>) 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<?
$1.60
$1.55
$1.50
Second combing weaners
1.30
1.25
1.20
1 This price taken as basis; 10 cents carbonizing charges added to same is equivalent to the committee's
basis of $1.40.
724
HISTORY OF PRICES DURING THE WAR.
GREASY AUSTRALIAN AND NEW ZEALAND FLEECES GOOD.
[Scoured basis as of July 30, 1917.]
36s $0.95
40s 1.00
44s 1.15
46s , 1.30
46-SOs... .. 1.35
50s....
50-56S.
56s....
58s....
$1.45
1.50
1.55
1.70
CARPET.
Per
cent.
July 30, 1917.
Grease
price.
Basis
scoured.
Scoured.
Handshaken fleece No 1 white sining
40
35
42
42
46
35
48
$0.43
.38
.39
.39
.36
.37
.38
$0.72
.59
.67
.67
.67
.57
.73
$0.80
.65
.76
.73
.72
.62
.85
.75
.SO
.62
.68
1.10
.95
.59
.90
.,56
.85
.82
.80
.61
.80
.75
.61
.57
.52
.71
.56
.54
.70
1.40
1.12
.95
1.15
.85
.70
.43
.55
.58
.78
.61
.55
.90
.75
.85
.85
.75
.60
.82
.51
.30
.68
.62
.62
Willowed No 2 white sining
Handshaken fleece, black sining (super)
Handshaken fleece gray sining . .
Willowed, No 2 gray
Handshaken semi-carbonized No. 1 white (good)
Government type, white Szechuen
Sundried, No. 1 white Szechuen
35
48
39
9
25
33
25
35
42
-18
47
46
37
36
36
35
28
38
35
35
33
58
55
55
35
37
40
65
35
52
23
25
30
50
50
44
70
60
38
50
22
40
47
50
60
.41
.28
.36
1.00
.71
.38
.65
.36
.45
.36
.35
.33
.43
.42
.39
.37
.33
.39
.36
.35
.43
.56
.50
.43
.71
.40
.36
.15
.32
.28
52
!46
.39
.38
.37
.39
.23
.26
.37
.37
.40
.18
.36
.31
.25
.63
.54
.59
1.10
.95
.57
.87
.56
.77
.70
.66
.61
.68
.66
.61
.57
.46
.63
.56
.54
.64
1.33
1.10
.95
1.10
.64
.60
.43
.49
.58
.68
.61
.55
.76
.74
.70
.77
.65
.60
.74
.51
.30
.68
.62
.62
Sundried, No. 2 white Szechuen . .
Sundried gray Szechuen
Washed, No. 1 white ball (super) . .
Government type, ball China*
Willowed. No. 2 white ball.
Willowed, No. 1 gray ball
Willowed, No. 2 gray ball
Willowed, open ball
Handshaken, best unassorted fleece (A)
Handshaken, medium unassorted fleece (C)
Handshaken, low unassorted fleece (D) . .
Willowed, best white filling (A)
Willowed, good white filling (B).
Willowed, fair white filling (C)
Willowed, low white filling (D)
Willowed, short white filling (cuttings)
Willowed, best gray filling
Willowed, fair gray
Willowed, low filling
WTllowed, China antn^in
Handshaken, China No. 1 fleecy super lambs
Handshaken, China No 2 fleecy lambs . .
Handshaken' China No 3 fleecy lambs
Wil'nwfidj China lamh<?
Government type, China No. 1 woosie, spring
Government type, China No. 1 woosie, autumn
Government type, China No. 2 woosie, autumn or spring
Washed, China Shanghai .
Handshaken China Honan unassorted
Washed Mongolian, average (LTrga ) ...
Washed Manchurian, white (Hailar)
Washed Manchurian, gray
Unwashed Cordova, good carbonized, white
Unwashed Cordova, good carbonized, gray
Unwashed Cordova second clip white
Ecuador . .
Caribbean
Spanish, coarse carbonized, white
Spanish good carbonized white
Spanish, white, mattress . ...
Spanish gray, mattress
Macedonian, white, combing .
Macedonian' black^ combing
Oporto
GOVERNMENT ISSUE PRICES TO MANUFACTURERS HOLDING GOV-
ERNMENT CONTRACTS MAY 15, 1918.
The issue prices of wool for Government contracts are based on the valua-
tion committees' description and estimate of shrinkage of each lot. The Gov-
ernment does not guarantee the estimated shrinkages of the valuation com-
mittees, but believes them to be approximately correct. Samples of each lot
will be shown at the office of the wool distributer and are intended to fairly
represent the bulk lot, but are not guaranteed to do so. They are exhibited for
the convenience of manufacturers interested. Examination in bulk may be
made if desired.
GOVERNMENT REGULATIONS RELATING TO PRICES.
725
CONDITIONS.
1. Holders of Government contracts should make application for any lot or
lots (or portions thereof) in writing to E. W. Brigham, 298 Summer Street,
Boston. Application shall state the number of the Government contract for
which the wool is required, and such other details as may be required.
2. The price on each lot is the price fixed by the Government and is accepted
by the buyer when his application is made.
3. Terms are net cash within 60 days from date of allotment.
4. Bags or bale covers are to be charged at cost and are not to be returned.
The British Government now charges for bale covers of Australian wools.
5. All wools or tops are to be taken at the same weights as billed to the
Quartermaster Corps, which were sworn weigher's weights at time of the de-
livery of wool to the Quartermaster Corps.
6. Manufacturers may be required to give a bond for the full amount of the
wool furnished.
7. Deliveries of all wool allotted to be taken within 30 days of date of allot-
ment.
8. Storage, insurance, and drayage charges applying against each lot of wool
are to be paid by the buyer.
9. Cartage from warehouse to railroad is to be paid by the buyer.
THE GOVERNMENT'S ISSUE PRICES ON SCOURED WOOLS.
1. The prices of scoured foreign wools grading 58s and lower will be July
30 prices (as established by the valuation committees) plus 7 per cent.
2. The prices of scoured foreign wools grading finer than 58s will be July
30 prices.
3. The prices of scoured domestic wools grading up to and including high
three-eighths (58s quality), and in pulled scoured up to and including straight
As will be July 30 prices plus 7 per cent.
4. The prices of scoured domestic wools finer than high three-eighths (58s
quality), and in pulled scoured finer than straight As will be July 30 prices.
THE GOVERNMENT'S ISSUE PRICES ON GREASY PULLED WOOLS.
1. The prices of greasy foreign pulled wools grading 58s and lower will be
July 30 prices (as established by the valuation committees) plus 7 per cent.
2. The prices of greasy foreign pulled wools grading finer than 58s will be
July 30 prices.
3. The prices of greasy domestic pulled wools grading up to and including
straight As will be July 30 prices plus 7 per cent.
4. The prices of greasy domestic pulled wools finer than straight As will
be July 30 prices.
THE GOVERNMENT'S ISSUE PRICES ON DOMESTIC WOOLS,
Ohio and similar, including New England States, New York, Pennsylvania,
West Virginia, Kentucky, Virginia, Michigan, New Jersey, Delaware, Mary-
land :
Issue price,
scoured basis.
Fine Delaine, choice $1. 95
Fine Delaine, average 1. 90
Fine clothing, choice 1. 80
Fine clothing, average 1. 75
Half-blood staple, choice 1. 80
Half-blood staple, average 1. 75
Half-blood clothing 1. 70
Issue price,
scoured basis.
Three-eighths staple $1 55
Three-eighths clothing
Quarter-blood staple
Quarter-blood clothing
Low one-fourth
Common and braid
Missouri. Indiana, Illinois, and similar, including Iowa, Wisconsin, Minne-
sota, Kansas. Nebraska, and Arkansas:
Issue price.
Fine Delaine $1. 85
Fine clothing, choice 1. 75
Fine clothing, average 1. 70
Half-blood staple 1. 75
Half-blood clothing 1. 67
Three-eighths staple 1. 52
Issue price.
Three-eighths clothing $1. 50
Quarter-blood staple 1. 40
Quarter-blood clothing 1. 38
Low quarter-blood 1. 25
Common braid 1. 15
Georgia, Lake wools, and other southern wools :
Issue price.
Average lots, largely 3-8ths $1. 37
Issue price.
Average lots, largely 1-4 blood $1. 30
726
HISTOKY OF PRICES DURING THE WAR.
TERRITORY.
Issue price.
Fine staple :
Choice ______________________ $1. 90
Average ____________________ 1. 85
Inferior _____________________ 1. 80
Pine clothing :
Choice _____________________ 1. 80
Average -------------------- 1. 75
Inferior _____________________ 1. 65
Half-blood staple:
Choice ______________________ 1. 80
Average _____________________ 1. 75
Inferior _____________________ 1.70
Half-blood clothing :
Choice ______________________ 1.70
Average ____________________ 1. 65
Inferior _____________________ 1. 60
High 3-8 staple 56-58s :
Choice ______________________ 1.60
Average _____________________ 1. 55
Inferior ____________________ 1. 50
Three-eighths clothing 56-58s :
Choice ______________________ 1. 5r>
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 <n\<l 'under at top entf. Logs in this class, when specifically
ordered in lengths 42 feet and over, carry the differentials enumerated below.;
42 to 50 feet _ $2. 00
52 to 60 feet 4. 00
62 to 70 feet 6. 00
72 to 80 feet 9. 00
82 to 90 feet 12.00
92 to 100 -feet 15.00
Logs 2S inches and orcr at top end.
42 to 50 feet _ $6. 00
52 to 60 feet 8. 00
62 to 70 feet___ 11.00
72 to 80 feet 14.00
82 to 90 feet 18. 00
92 to 100 feet 25.00
Provided the above spread in prices shall be limited as follows :
Logs longer than 60 feet shall take the 60-foot price to the extent of 10 per
cent of the raft unless specifically ordered, and when so ordered such longer
lengths shall take the regular differentials. In no event shall lengths longer
than those ordered above 60 feet in length exceed 10 per cent of the total scale
of the raft. All logs over 60 feet in length in excess of 10 per cent of the total
contents of the raft shall be invoiced at the base price unless ordered.
Logs over 100 feet in length subject to special rates.
Fir-production board to have authority, under the lumber section of the
"War Industries Board, in all matters of interpretation of rulings as applied
to the scaling of logs and inspection of lumber and other minor points.
(June 15, 1918.)
Government maximum f. o. b. mill base prices for Douglas fir lumber effective midnight June ]5, 1918,
to midnight September 15, 1918, in accordance with the ruling of the price-fixing committee of the War
Industries Board, dated June 11, 1918.
V. G. flooring.
No. 1.
No. 2.
No. 3.
1 by 4, 10 to 16 feet
$42.00
$39.00
$33.00
1} by 4, 6 to 16 feet
45.50
41.50
35 50
NOTE. No. 1 and No. 2 V. G. flooring l by 4, 6, 7, 8, and 9 fee\ $1 less when in stock. No, 3 V. G., $2
Jess. All 4 and 5 feet, $5 less. Short flooring subject to stock on band. Specified lengths, $2 extra.
GOVERNMENT REGULATIONS RELATING TO PRICES.
765
Flat grain flooring.
No. 2
clear and
better.
No. 3.
1 by 4, 10 to 16 foot...
$29.00
$26.00
1 by 6, 10 to 16 foot
32.00
30.00
All flat-gj:ain flooring 6, 7, 8, and 9 feet, .$2 less; all 4 and 5 feet, S5 less. Specified lengths, $2 extra.
Ceiling.
No. 2
clear and
better.
No. 3
clear.
iby 4,
10 to 16 feet, C. and E., B. or C. and E. V ...
$28 00
$22 50
Iby 4,
10 to 16 feet, C. and E., B. or C. and E. V
29 00
26 00
NOTE. 6 to 9 feet, $3 less; 4 and 5 feet, $5 less. Specified lengths, $2 extra. Fir partition $5 more than
ceiling. For 6-inch ceiling or partition add $3.50 to the price of 4-inch.
Stepping.
No. 2
clear and
better.
, 1*, or 2 inches, 8 to 12 niches wide, 3 to 16 feet .
S50.00
V. G. fir stepping S2S or S2S and nosed.
NOTE. 14 inches, $2 extra; specified lengths, $2 extra.
.
Drop siding and rustic.
No. 2
clear and
better.
No. 3
clear.
1 by 6fg foot drop si
ding and rustic
$31.00
$28.50
NOTE. 6 to 9 feet, $3 less, 4 and 5 feet, $5 less. Specified lengths, $2 extra. Orders for drop siding pat-
terns other than No. 106 must include the other grade accumulated in working at grade prices.
FIR FINISH NO. 2 CLEAR AND BETTER, 6 TO 16 FEET LONG.
S2Sor
S4S.
Rough
dry.
Rough
green.
1 by 4
$39 00
$37 00
$35 00
Iby6
40.00
38.00
36.00
1 by 5, 8 inches and 10 inches
41 00
39 00
37 00
Ibyl2
43.00-
41.00
39.00
11 and Ik by 4 and 6 inches
42.00
40.00
38 00
Hand 1J, 5, 8, 10, and 12 inches
44.00
42.00
40.00
2 by 4...
39.00
37.00
35.00
2 by 6 . .
40 00
38 00
36 00
2 by 8 and 2 by 10
41.00
39.00
37.00
2 by 12
43.00
41.00
39 00
2, 3, and 4 inches (green only)
41.00
NOTE. For each inch in width over 12 inches add $1. Specified lengths $2 extra. For selected slash
grain add $10. For vertical grain add $7.
Foregoing prices on uppers are based on loading not less than 85 per cent 10 feet and longer; balance
shorter, usual lengths, well proportioned.
FIR, COMMON BOARDS, SIS OR SHIPLAP.
1 by 2, 6 to 20 feet mixed lengths, SIS $20. 00
1 by 3, 6 to 20 feet mixed lengths, SIS 20. 00
Iby 4, 6 to 20 feet mixed lengths, SIS 18.00
1 by 6, 6 to 20 feet mixed lengths, SIS or S. L 18.50
1 by 8, 6 to 20 feet mixed lengths, SIS or S. L 19. 50
1 by 10, 6 to 20 feet mixed lengths, SIS or S. L 19. 50
1 by 12, 6 to 20 feet mixed lengths, SIS 20. 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. No. 2 common boards
and shiplap, $3 less when in stock.
766
HISTORY OF PRICES DURING THE WAR.
FIR, COMMON DIMENSION, S1S1E.
6 feet.
8, 12, and
14 feet.
16 feet.
9, 10, 18,
and 20
feet.
22 and 24
feet.
26 to 32
feet.
2 by 3 and 2 by 4 . .
$17 50
$18 50
$19 50
$20 50
$21 50
$23 50
2 by 6 and 2 by 8. . .
17.50
18.00
19.00
19 50
20 50
22 00
2 by 10
18.00
19 00
19 50
20 00
21 00
23 00
2 by 12
18 50
19 50
20 00
20 50
21 50
23 50
2 by 14
21 00
21 00
22 00
23 00
25 00
2 by 16.
22 00
22 00
23 00
24 00
26 00
2 by 18
24 00
24 00
25 go
26 00
90 no
2 by 20... .
26 00
26 00
97 00
28 00
30 00
Add 50 cents for every 2 feet over 32 feet long up to 40 feet. For select comnrtm, add $3. SlE or rough,
same mill base as dressed. For 2 by 4, 2 by 6, or 2 by 8 D. and M. or shiplap, add to S1S1E, $1.50. Hem-
lock permitted in 2 by 4 and 2 by 6.
FIR COMMON PLANK AND SMALL TIMBERS S1S1E OR S4S.
8, 12, 14,
and 16
feet.
9,10, 18,
and 20
feet.
22 and
24 feet.
26 to
32 feet.
2 by 3, and 3 by 4 . .
$21 00
S21 50
$22 50
S24 50
3 by 6...
22.00
22.50
23.50
25.50
3 by 8
22 00
22 50
23 50
25 50
4 by 4 4 by 6. 4 by 8
22 50
23 50
24 50
26 50
6 by 6 to 8 bv 8..
22 00
23 00
24 00
26 00
3 by 10 and 3 by 12
23.50
24.50
25.50
27.50
24 00
25 00
26 00
28 00
3 by 16... .*..
25.00
26.00
27.00
29 00
3 by 18
27 00
28 00
29 00
31 00
3 by 20.
29.00
30.00
31.00
33. 00
4 by 10 and 4 by 12
23.50
24.50
25.50
27.50
4 by 14. ...
24.50
25.50
26.50
28.50
4 by 16
25 50
26 50
27 50
29 50
4 bv 18.
27.00
28.00
29.00
31.00
4 by 20
29 00
30.00
31 00
33 00
Add 50 cents for every 2 feet over 32 feet long up to 40 feet.
For selected common add $3 SlE or rough same mill base as dressed.
FIR TIMBERS SINGLE CARLOAD LENGTHS.
32 feet and under.
34 to 40 feet.
Rough.
S1S1E
or S4S.
Rough.
S1S1E
or S4S.
6 by 10 to 8 by 12. .
$25.00
25.50
27.00
28.00
29.50
32.50
36.00
25.00
25.50
30.00
32.00
35.00
2'i. .50
28.50
29.50
31.50
35.00
$26.00
27.50
29. 50
31.00
32.50
36.00
40.00
26.00
28.00
33. SO'
35.75
39.00
30.00
32.50
34.00
36.50
40.50
$27.00
27.50
29.00
31.00
32.50
36.50
42.00
27.00
27.50
33.00
3ii. 00
39.50
28.50
30.50
32.50
35.50
39.50
$28.50
30.00
32.00
34.50
36.00
40.50
46.50
29.50
30. ,50
36.00
40.25
44.00
32.50
35.00
36.50
41.00
45.50
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
6by22to8by22
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 IS 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
GOVERNMENT REGULATIONS RELATING TO PRICES.
FIR TIMBERS REQUIRING TWO OR MORE CARS.
767
42 to 44 feet.
46 to 50 feet.
52 to 54 feet,
56 to 60 feet.
Rough.
S1S1E
or S4S.
Rough.
S1S1E
or S4S.
Rough.
S1S1E
or S4S.
Rough.
S1S1E
orS4S.
6 by 6 to 8 by 12
829. 50
30.00
31.50
34.00
35.50
39.50
45.00
29.50
30.00
36.00
39.00
42.50
31.00
33.50
35.50
38.50
42.50
$31. 25
32.75
34.75
37.75
39.25
43.75
49.75
32.25
33.25
40.25
43.50
47.25
35.25
38.25
40.75
44.25
48.75
$31.75
32.25
33.75
37.00
38.50
42.50
48.00
31.75
32.25
39.00
42.00
45.50
33.25
36.50
38.50
41.50
45. 50
$33.75
35.25
37.25
41.00
42.50
47.00
53.00
34.75
35.75
43.50
46.75
50.50
37.75
41.50
44.00
47.50
52.00
$33.75
34.25
35.75
40.00
41.50
45.50
$36.00
37.50
39.50
44.25
45.75
50.25
$36.75
37. 25
38.75
44.50
46.00
50.00
$39. 25
40.75
42.75
49.00
50.50
55.00
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
33.75
34.25
42.00
45.00
48.50
35.25
39.50
41.50
44.50
48.50
37.00
38.00
46.75
50.00
53.75
40.00
44.75
47.25
50.75
55.25
36.75
37.25
46.50
49.50
53.00
38.25
44.00
46.00
49.00
53.00
40.25
41.25
51.50
54.75
58.50
43.25
49.50
52.00
55.50
60.00
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
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. For price on lengths longer than 60 feet add $11 per thousand to f. o. b.
mill price as contained in west coast price list of May 1, 1915.
Inspection at mill. Grades in accordance with West Coast Lumberman's Association grading rules,
rail A list issued January 1, 1917.
GOVERNMENT PRICE LIST F. O. B. MILL, COVERING DOUGLAS FIR FOR RAILROAD
AND GAR MATERIAL, AS APPROVED BY DIRECTOR OF LUMBER, OCTOBER 12, 1918.
0)
Cross-
ties.
( l )
Bridge
ties
surfaced.
6 by 8
$19 00
6 by 8
$20 00
7 by 8
20 00
7 by 8 and 8 by 8
21 00
7 br9
21.00
22 00
For switch ties add $1.50 per 1,000 to crosstie prices.
Bridge stringers.
Common
rough.
Surfaced.
Select
common.
Select
common,
surfaced.
6 by 16 to 10 by 16-32 and under
$27 00
$2,9 50
$30 00
$32 50
6 by 18 to 10 by 18 and under . ..
28.00
31.00
31 00
34 00
6 by 20 to 8 by 20 and under
29 50
32 50
32 50
35 50
6 by 22 to 8 by 22 and under
32.50
36.00
35.50
39 00
6 by 24 to 8 by 24 and under . . .
36.00
40 00
39 00
43 00
10 by 20 to 12 by 20 and under
30.00
33.50
33 00
36 50
10 by 22 to 12 by 22 and under
32.00
35.75
35 00
38 75
10 by 24 to 12 by 24 and under
35 00
39 00
38 00
42 00
Weight: Rough, 3,300 pounds; S1S1E or S4S, 3,000 pounds. For odd or fractional thickness 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 Avidths add to next less width $1 .
NOTE. Lengths 34 to 40, add regular timber list spread.
Car sills.
34-foot.
35 to 40
foot.
41 to 45
foot.
Common rough
$29 00
$31 00
$36 00
S4S . .
31.00
33.50
38.50
NOTE. For select common add $3 per 1,000.
768 HISTORY OF PRICES DURING THE WAR.
STANDARD CAR DECKING AND END LINING (SURFACED).
Common.
Select
common.
No. 2 clear
and better.
F.G.K.D.
No. 2 clear
and better,
V.G.K.D.
2 by 6 to 2 by 10 1
$21 00
24 00
$41 00
$48 00
23-inch and thicker
44 00
51 00
. 50 less for rough stock.
STANDARD CAR FRAMING, FACIA AND RUNNING BOARD.
Rough.
Surfaced.
Common.
Select
common.
Common.
Select
common.
2 by 12 and smaller }-inch surfacing
$24. 00
26.00
$27. 00
29.00
$26.00
28.00
' $29.00
31.00
Larger sizes, i inch surfacing
INSULATION.
i by 4 and by 6, 4 to 20 feet, No. 1 common, $15.50 ; select, common, $17.50.
NOTE. Surface measurement .
STANDARD CAR SIDING.
1 by 4, No. 2 and better, V. G., K. D.. SIS, S2S, or worked.. _ $44. 00
1 by 4, No. 2 and better, F. G., SIS, S2S, or worked 34.00
1 by 6, No. 2 and better, V. G.. SIS, S2S, or worked. _ 46. 00
1 by 6, No. 2 and better, F. G., SIS, S2S, or worked 35. 50
NOTE. Fractional lengths shall be counted as the next longer odd or even foot in
length ; 15 per cent, of No. 3 grade accumulated in manufacturing $5 per thousand less;
rough green stock $4 less ; rough dry stock $2 less.
STANDARD CAR LINING AND ROOFING.
1 by 4, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths $34.00
1 by 4, No. 2 and better, S. G. (SIS, S2S, or worked), specified 36.00
1 by 6, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths 35. 50
1 by 6, No. 2 and better (SIS, S2S, or worked), specified 37.50
14 and 1| by 8, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths 43.00
1J and 1| by 8, No. 2 and better, S. G. (SIS, S2S, or worked), specified 45.00
NOTE. No. 3 grade accumulated in manufacture at $5 per thousand less ; rough green
stock $4 less ; rough dry stock $2 less ; V. G. add $9.
HORIZONTAL SHEATHING (KILN-DRIED WORKED).
2 by 4, No. 2 and better, S. G _ $42.50
2 by 6, No. 2 and better, S. G 43. 50
NOTE. V. G. add $7 ; rough green stock $4 less ; rough dry stock $2 less.
Timbers, boards, dimensions, shiplap, and other miscellaneous requirements at prices
approved for Government purchases. All grading and surfacing to be in accordance with
West Coast Lumbermen's Association standard classification grading and dressing rules,
January 1, 1917, for general requirements. August 1, 1917, for car material.
MAHOGANY LUMBER.
An informal agreement as to. a fair and reasonable price for mahogany lum-
ber, propeller quality, was entered into in March, 1918, between mahogany
producers and the bureau of aircraft production. The price agreed upon was
$350 per thousand feet. It remained unchanged throughout the period of the
war.
NEW ENGLAND SPRUCE.
An average price of $33 per thousand was reached by agreement between
the manufacturers of New England spruce and the lumber committee of the
Council of National Defense in June, 1917.
GOVERNMENT REGULATIONS RELATING TO PRICES.
769
A new schedule, approved by the price-fixing committee on April 12, 1918,
showed an increase to about $40 per thousand board feet. 1
The Federal Trade Commission investigated costs in the industry, and a new
price list was issued July 17, 1918. This applied to all purchasers of spruce
lumber and showed another increase of $8 per thousand board feet on all items.
The schedules of July, 1918, were effective until November 1, 1918, and were
then extended to December 1, 1918, when control ceased.
(Apr. 12, 1918, to July 1, 1918.)
Prices quoted in the schedule below are on United States Government orders
for merchantable spruce lumber in orders of substantial size, for carload lot
shipments. Prices are effective from April 12, 1918, to July 1, 1918. For further
information inquire of New England spruce emergency bureau, 131 State Street,
Boston, Mass.
Sizes.
Lengths (feet).
Prices
(per M
feet).
Sizes.
Lengths (feet).
Prices
(perM
feet).
2by2
8-20 feet.
$40.00
40.00
40.00
40.00
40.00
40.00
40.00
45.00
50.00
52. 00
40.00
40.00
40.00
40.00
40.00
45.00
50.00
52.00
40.00
40.00
40.00
40.00
40.00
45.00
50.00
52.00
40.00
40.00
40.00
40.00
45.00
50.00
52.00
40.00
40.00
40.00
45.00
50.00
52.00
40.00
40.00
45.00
50.00
52.00
40.00
45.00
50.00
52.00
1 by 4. .
8-20 feet . .
do
' $10.00
40.00
40.00
40.00
40.00
45.00
50.00
55.00
40.00
40.00
40.00
40.00
40.00
45.00
50.00
55.00
35. 00
35.00
35.00
3S.OO
40.00
43.00
45.00
48.00
40.00
40.00
40.00
40.00
40.00
45.00
45.00
45.00
50.00
50.00
50.00
55.00
55.00
55.00
40.00
35.00
38.00
40.00
2 by 3 planed. 1 edge
do .
Iby 5
2 by 4 planed 1 edge
2by5
do
do..
1 by 6. .
do
1 by 7
do
2 by 6. .
do
1 by 8
do
2by7
. .do..
1 by 9
do
2by8...
do.
1 by 10
do
2by9
...do...
1 by 12
do
2bv 10
do.
1} or 1J by 4
do
2 by 12. .
do
do
3 by 4 planed 1 edge
3 by 5
do
do.
J or 1J by 6
.. .do..
: or li by 7
do
3 by 6. .
do
do
3 by 7
do..
i or 1 J by 9
do
3by8. .
do
or 1 J by 10
do
3by9
do...
11 or H by 12
do
3 by 10
do. .
2 by 2
Random lengths
do
3 by 12
...do...
2by3. .
4 by 4
do...
2 by 4
do
4 by 5..
do.
3 by 4 or 4 by 4
do
4 by 6
...do.'...
All other 8-inch and
under sizes.
2 by 9
do
4 by 7
do
do
4 by 8. .
do
4 by 9
...do
2 by 10
do
4 by 10
do.
2 by 12
do
4by 12
...do...
Iby4..
do
5by5
. .do..
1 by 5.
do
5 by 6.. .
do
1 by 6
do
6 by 7
do
1 by 7
do
5by 8
do. .
1 by 8
do
5 by 9
do
1 by 9
do
5 by 10
...do..
li by 9
do
5 by 12. .
do.
if by Si I]
do
6by 6. .
do
1 by 10
do
6by7
do.
1J by 10
do
6by8
...do...
li by 10. .
do
6 by 9
do
1 by 12
do
GbylO
...do...
11 by 12. .
do. .
f> 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 fill<t__ __: $0 12i
Stair rail "B" with fillet "II"__I_I_I"I .11
Wall rail, 1| inches round (no brackets) per linear foot . 06
Balusters as shown detail "C" net .OS
Balusters as shown detail " D " do . 05
Starting newels, type " F " each__ 1.50
Starting newels, type "G" do 1.00
GOVERNMENT REGULATIONS RELATING TO PRICES. 799
Plain curb string same as for open stairs.
Paneled string as shown, $1.65 per riser.
Well-hole skirting, figure on molding basis.
(Type numbers taken from preliminary details.)
Prices above will cover yellow pine or white pine for paint.
MOLDINGS.
Per 1,000
Yellow pine or soft wood for exterior based on finished product : b. m.
All moldings worked from 1-inch stock $79. 20
All moldings worked from 1J or li inch stock 85. 8<
All moldings worked from 2-inch stock 92. 40
Hardwood moldings:
Gum worked from 1-inch stock 93. 50
Calico ash, worked from 1-inch stock 1 112. 20
Plain oak, worked from 1-inch stock 126. 50
Brown ash, worked from 1-inch stock 126. 50
All moldings using thicker stock will "be based at higher prices, according to market
prices.
Special prices for cantonment construction, on lattice I by 11 inches, 44 cents per
100 linear feet.
Porch rails : On molding basis.
Porch brackets : Sawn to shape, $100 per 1,000 b. m.
Porch panels, 20 cents per square foot, depending upon design.
Interior frames : Inside jambs, based on molding prices plus 2J cents net each for
gaining side jambs to receive head.
Exterior blinds : 1| inches thick, stationary slats, 28 cents net per linear foot in
height with a minimum price of $1 per pair.
Exterior paneled shutters : 1J inches thick, stock construction, 35 cents net per linear
foot in height, not exceeding 2/10 i in width.
Exterior porch columns or newells : Built up, square, $120 per 1,000 feet b. m. plus
cap and base on molding basis.
Exterior porch newels or columns : Solid S4S, $80 per 1,000 feet b. m.
NOTE. Above prices apply to goods in full stock quantities for shipment in carload
lots. For less than carload shipments, add 10 per cent for extra handling.
INTERIOR TRIM.
Special prices for cantonment construction :
Wood : Yellow pine and white pine.
Manufactured : Machine run out of rough lengths.
Casing : 13/16 by 33, S4S.
Stool : 2 by 13.
Apron: 13/16 by 31.
Stops : i by |.
Window trim :
10 by 12 to 10 by 15, 12 lights per side $0. 55
10 by 16 to 10 by 18, 12 lights per side . 66
Sash trim :
10 by 12 to 10 by 16, 4 and 6 lights per side . 30
Door trim :
2/0 by 6/8 to 3/0 by 7/0 per side - 40
IJ/4 by 6/8 to 5/0 by 7/0 per side . 55
For transom head 2/0 or less, add IS
Inside jambs: Manufactured, run to exact widths and lengths and dadoed; shipped
K. D. ; stops cut to rough lengths ; no transom heads :
Wood : Yellow pine.
Parts : Jambs 13/16 by 44 ; stops by Ig.
2/8 by 6/8 to 3/0 by 7/0 $0. 77
3/4 by 6/8 to 6/0 by 7/0 . SS
For transom head 2/0 or less, add K
EXTRAS.
Above prices apply to goods in full stock quantities for shipment in carload lots.
For less than carload shipments, add 10 per cent for extra handling.
All f. o. b. factories in the Middle West, taking rate to eastern and southern points
not in excess of the rates from Oshkosh, Wis., Minneapolis, Dubuque, Clinton, and
Muscatine, Iowa.
Medicine cabinets :
Stock design, arranged to fit in recess or hang on wall, plain (window glass)
mirror 14 by 18, set up, no hardware $3- 50
As per standard detail, plain plate mirror o. WJ
Kitchen dressers : No. 1, sheet 58, 3/6 by 6/9 bottom case 18 inches deep, top case
14 inches deep, K. D. ; no hardware 13. 70
(June, 1918.)
Prices on pine lath, f. o. b. shipping point : No. 1, $3.65 ; No. 2, $2.65.
Xpevial millwork Prices of roofers : Beaded, $2 per thousand feet, overdressed two
sides ; grooved, $1 per thousand feet, overdressed two sides.
800
HISTORY OF PRICES DURING THE WAR.
PORTLAND CEMENT.
The cement committee of the Council of National Defense was organized
In April, 1917. In July, 1917, an informal price agreement was made for the
last six months of 1917, applying principally to purchases by the Army and the
Navy.
By the recommendation of the War Industries Board, these prices were con-
tinued for Government purchases through the first four months of 1918.
On May 4, 1918, the price-fixing committee issued new schedules allowing
increases in prices. 1 These prices were left substantially the same at the
revision of August 23, 1918, until December 31, 1918, when price control ended.
NET PRICES ESTABLISHED BY PRICE-FIXING COMMITTEE FOR PORTLAND CEMENT
PER BARREL F. O. B. CARS LOCATION NAMED, FOR 4-MONTH PERIODS ENDING AS
INDICATED.
Location.
4 months ending-
Dec. 31,
1917-
Apr. 30,
1918. 1
Aug. 31,
1918.1
Dec. 31,
1918.2
Hudson, N.Y . . ...
81.40
1.30
1.50
1.40
1.40
1.40
1.50
1.50
1.50
1.50
$1.85
1.75
1.75
1.70
1.65
1.65
1.80
1.70
1.60
1.70
1.70
1.70
1.70
1.75
1.70
1.80
1.95
1.95
$1.82
1.72
1.72
.67
.62
.62
.77
.67
.57
.67
.67
.67
.67
.72
.67
.77
.92
.92
Lehigh Valley, Pa (Northampton)
Pittsburgh. Pa. (Universal)
Fordwick, Va ...
Kingsport. Tenn .
Richard City, Tenn . ...
Bellevue, Mich
Mitchell, Ind
Buffington. Ind
Hannibal, Mo
LaSalle,lll
Steelton, Minn
1.55
1.55
1.50
1.30
1.40
1.90
Mason City, Iowa
lola, Kans
Harrys, Tex
Houston, Tex
El Paso, Tex
San Antonio, Tex
New Orleans, La
1.78
Trident, Mont
1.70
1.70
1.90
1.75
1.90
1.90
1.90
1.95
1.95
.87
.72
.87
.87
.87
.92
.92
Portland, Colo
Devils Slide, Utah
Brigham, Utah
Salt Lake City, Utah
Irwin, Wash
1.70
Concrete, Wash
Seattle, Wash . . .
1.90
1.70
1.70
Tacoma, Wash
Portland, Oreg :
Oswego, Oreg
2.00
1.97
Stockton. Calif . . ,
1.70
1.70
1.70
1.70
1.70
Oakland, Calif
San Francisco, Calif
Santa Cruz, Calif
Santa Barbara, Calif
Los Angeles, Calif
1.70
Cement, Calif
1.95
1.95
1.95
1.92
1.92
1.92
Davenport, Calif '
Crestmore, Calif
1 Includes 3 cents per barrel for bin inspection.
2 Does not include charge for bin inspection.
On the above basis, with freight added, prices were to be named f. o. b. cars at desti-
nation, based upon current rates of freight, subject to increase in destination prices in
accordance with any increase which might be made in freight rates. The freight charges
were to be paid by the purchaser and shipments to be consigned to a Government officer,
or, if consigned to other than a Government officer, to be accompanied by a certificate
(Form 750) signed by a Government officer, stating that the cement was for Government
use, and that any saving would accrue to the benefit of the Government, otherwise the
purchaser must also pay the war tax on the freight charges. Shipments were to be made
1 Price-fixing committee, Minute Book III, May 4, 1918.
GOVERNMENT REGULATIONS RELATING TO PRICES. 801
freight collect, and, for convenience in billing, invoices were to 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 was to be
deducted from the total amount of the invoices. When shipments were required freight
prepaid, Form 750, furnished hy the Commissioner of Internal Revenue, were to be signed
by the officer in charge of the work in question and forwarded to the shipping company
with the order, who would file this certificate with the railroad company at the time the
first shipment was made on this order.
The prices in the above table did not include any charge for cotton cloth and paper
bags, paper-lined cloth bags, or wooden barrels. The charges were as follows :
For the last six months of 1917 and the first four months of 1918, no charge was made
for cloth bags at the time of shipment, but any bags not returned to the mill in good
condition, freight prepaid, were charged for at the rate of 15 cents each ; for the four
months beginning May 1, 1918, a charge of 10 cents for each cloth bag was made at the
time of shipment, which amount was credited upon return of these bags in good condi-
tion to the point of shipment, freight prepaid, within 60 days from date of shipment ;
for the four-month period beginning September 1, 1918, a charge of 25 cents for each
cloth bag was made at the time of shipment which amount was credited for each bag
returned to the point of shipment in good condition, freight prepaid, within 60 days from
the date of shipment. This increase in the charge for cloth bags was due to the increas-
ing shortage resulting from inability to obtain new bags or to secure the return of bags
at the lower charges of 10 and 15 cents when the replacement value was upwards of 25
cents per bag.
The charge for paper pags was as follows :
The last six months of 1917 and the first eight months of 1918, 2| cents per bag ; the
last four months of 1918, 7 cents per bag.
The additional charge for paper-lined cloth bags for the last six months of 1917 and
the first four months of 1918 was 15 cents per bag for the lining and 15 cents for each
cloth bag 1 , which latter amount was credited upon the return of each cloth bag in good
condition to the point of shipment, freight prepaid, within 60 days from the date of
shipment.
The charge for wooden barrels for the last six months of 1917 was 45 cents, and for
the first four months of 1918 was 60 cents per barrel for eastern mills, and for both
periods 75 eents per barrel for western mills.
The prices fixed for the last four months of 1918 contained the provision that the
charge for paper-lined cloth bags or wooden barrels (based on the cost) would be deter-
mined at the time the order was placed.
Previous to September 1, 1918, the cost of bin inspection was included in the price
of cement. Inasmuch as all departments did not require bin tests, this charge was de-
ducted from the prices fixed for the second four months of 1918, making the net prices
established for the last four months 3 cents per barrel less than those for the previous
period. A charge, howeyer, of 3 cents per barrel was made where bin inspection was
required, which requirement was usual with nearly all Government purchases.
Prices for the four-months' period beginning May 1, 1918, were 15 cents per barrel
less, and for the four-months' period beginning September 1, 1918, 5 cents per barrel
less, where the cement was shipped in bulk.
The terms were net cash 30 days ; for the four-month period beginning May 1, 1918, a
discount of 5 cents per barrel was allowed for cash payments in 10 days. This provision
did not prove practicable and was not included in prices for subsequent periods.
SAND, GRAVEL, AND CRUSHED STONE.
The first prices were fixed for the New York district by the price-fixing com-
mittee July 10, 1918, effective to November 1, 1918. Prices for other districts
followed later, and all expired on November 1, 1918.
(July 10, 1918.)
NEW YORK DISTRICT.
After considering data submitted by the Federal Trade Commission and in
agreement with the representatives of the industry, the price-fixing committee
has fixed the following prices on sand, gravel, and crushed stone :
Per
cubic yard.
Sand $0. 75
Gravel 1. 60
Crushed stone 1. 85
125547 20 51
802 HISTOKY OF PEICES DURING THE WAR.
These prices are for full scow-load lots delivered f. o. b. scow, within the free
lighterage limits of the port of New York, with 24-hour unloading 1 privilege,
and are effective for the period ending October 31, 1918. For deliveries made
outside the free lighterage limits of New York may be added to the above
prices the extra cost of towage.
(Aug. 28, 1918.)
METROPOLITAN' PHILADELPHIA DISTRICT.
At a meeting of the price-fixing committee, held on Tuesday, August 28, the
following maximum prices were fixed upon all Government sales effective for
the period ending December 31, 1918, for the Metropolitan Philadelphia dis-
trict; that is, for the States of New Jersey, Delaware, and Pennsylvania east of
and including Harrisburg:
For deliveries in full scow-load lots, f. o. b. scow alongside, within the
second towing zone : . P er ton -
Sand $0. 60
Gravel 1.00
Crushed gravel f. o. b. cars wharf ^ 1. 25
Unloading sand and gravel from scow to cars . 25
For deliveries f. o. b. cars plant :
Sand . 55
Gravel .95
For deliveries in full scow-load lots between Marcus Hook and Port
Penn on the Delaware River f. o. b. alongside :
Sand 1. 00
Gravel 1.15
The above carried a 24-hour free unloading privilege, with a flat charge of
$15 per scow for each 24 hours thereafter.
(Oct. 31, 1918.)
NORFOLK DISTRICT.
At a meeting of the price fixing committee held on Thursday, October 31, the
following maximum prices were fixed to cover purchases, whether by the Gov-
ernment or otherwise, and to be effective for the period ending February 28 ?
1919, for the Norfolk district, i. e., the State of Virginia south of and including
Petersburg, and the States of North Carolina and South Carolina :
For deliveries in full barge lots, f. o. b. point of origin, or f. o. b. cars plant,
per ton of 2,000 pounds net :
Sand__ $0. 50
Gravel 9E
Crushed stone
Crushed granite ! 15
Not including railroad ballast or screenings.
(Nor. 7, 1918.)
METROPOLITAN PHILADELPHIA DISTRICT.
At a meeting of the price fixing committee held on Thursday, November 7,
a maximum price of $1.50 per ton (2,000 pounds) f. o. b. cars plant was fixed
for all Government purchases of crushed stone (other than railroad ballast or
screenings) for the period ending December 31, 1918, within the Metropolitan
Philadelphia district, i. e.. for the State of New Jersey, south of and including
Trenton; the State of Delaware and the State of Pennsylvania, east of and
including Harrisburg.
9. CHEMICALS.
The following table summarizes the essential facts concerning the public
regulation of the prices of chemicals during the war. The more detailed regu-
lations pertaining to the great groups of chemicals are shown after the summary
table.
Commodities.
Agency.
Date when effec-
tive.
Date of expira-
tion.
Price.
Acids
P F.C
F. o. b. works.
$18 per short ton.
$28 per short ton.
$32 per short ton.
$16 per short ton.
$25 per short ton.
$28 per short ton.
8| cents per pound.
$6.90 per hundred-
weight,
$13.10 per hundred-
weight.
$0.0235 per pound.
$0. 15 per pound.
$0.17 per pound.
$0.145 per pound.
$0.165 per pound.
$3.50 per hundred-
weight f. o. b. cars at
sellers 'plants.
$0.075 per pound.
$1.57 per hundred-
weight f. o. b. sellers'
plants.
$0.30 per pound, carload
lots.
$0.0825 per pound, car-
load lots.
$0.045 per pound f . o. b.
point of production.
$0.09 per pound, carload
lots f.o.b. plants.
$3.50 per bushel of 46
pounds.
$4.50 per bushel of 46
pounds.
$3.50 per bushel of 46
pounds from near-by
countries; $4.50 from
other countries.
$4.50 from all sources.
$0.244 per pound.
$0.224 ner nound.
Sulphuric acid
June 28, 1918....
Jan. 1,1919
60 Baum<5
66 Baume".
20 per cent oleum .
60 Baume"
Sept. 30. 1918...
66 Baume*
do
20 per cent oleum.
Nitric acid
42 Baume"
do. ...
June 28, 1918....
Jan. 1, 1919
do
Mixed acids-
No. 1... .
No. 2
Alkalis:
Bleaching powder
Carbon tetrachloride.
Dry
Board of ap-
praisers.
W. I. B., infor-
mal.
April, 1918
do .
Nov. 25, 1918....
Fire extinguisher .
Carbon tetrachloride .
Dry
Board of ap-
praisers.
August, 1918...
December, 1918 .
Fire extinguisher .
Caustic soda, 76 per
cent.
Chlorine liquid
W. I. B., infor-
mal.
do
Spring, 1918. . . .
May 1918
December, 1918 .
Nov. 25, 1918. . .
do
Soda ash, 58*per cent
do
do
Ammonia ... . .
Food adminis-
istrator.
Nov. 19, 1917..
Anhydrous . . .
Aqua
Ammonium sulphate
Arsenic
War Depart-
ment.
Food adminis-
trator.
December, 1917..
Feb 28 1918
Dec. 14,1918
Castor beans
Fall, 1917
December, 1918.
Castor oil
October 1918
W. T. B
February, 1918..
October 1918
Bureau Aircraft
Production.
Fall 1918
December, 1918..
Conforming to Speci-
fication No. 3500-A
of Signal Corps.
Other oil...
803
804
HISTORY OF PRICES DURING THE WAR.
Commodities.
Agency.
Date when effec-
tive.
Date of expira-
tion.
Price.
Glycerin
Fod adTn'fiis-
July 30 1918
F. o b points of pro-
istrator.
August Septem-
duction.
$0.60 per pound
ber.
o p toherN o vein-
$0.58 per pound
ber.
December.
$0.56 per pound
Nitrate of soda
Nitrate commis-
sion.
January J une ,
nitrate. nitrate.
Percwt. Per CLct.
$4.22.5 $4.25
1918.
June, 1918
4.05 4.10
July 1918
4. 10 4 20
August, 1918. ..
4.32.', 4.45
September 1918
4.32^ 4 50
October-Novem-
4.40 4.523;
ber, 1918.
December, 1918..
4.42 4..~>n
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
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UNIVERSITY OF CALIFORNIA LIBRARY