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ALBERT R. MANN 
 LIBRARY 
 
 New York State Colleges 
 
 OF 
 
 Agriculture and Home Economics 
 
 AT 
 
 Cornell University 
 
Cornell University Library 
 HD9014.C2A42 1918 
 
 Report of the Food Controller, 
 
 3 1924 013 848 688 
 
Cornell University 
 Library 
 
 The original of this book is in 
 the Cornell University Library. 
 
 There are no known copyright restrictions in 
 the United States on the use of the text. 
 
 http://www.archive.org/details/cu31924013848688 
 
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 B' ' 
 
 CANADA' "' .■'" - . '-'"'' :■'-' '' 
 
 
 REPORT 
 
 OF THB - 
 
 FOOD CONTROLLER 
 
 HON. W. J.: H ANN A, KG. 
 
 m 
 
 To The ( ~ 
 
 Right Hon. Sir robi^f^t Borden, G.C.M.G. 
 
 PRIME MINrSTER OI* ^CANADA 
 
 ', . — '. : '-. -_1 -— 
 
REPORT 
 F^OOD CONTROLLER 
 
 HON. \N. J. HANNA, K.C. 
 
 To The 
 
 RIGHT HON. Sir ROBERT BORDEN, G.C.M.G. 
 
 PRIME MINISTER OF CANADA 
 1 91 a 
 
REPORT 
 
 OF 
 
 THE HON. W. J. HANNA, K.C. 
 FOOD CONTROLLER 
 
 January 24,. 1918. 
 
 The Right Hon. Sir Robert L. Borden, K.C., K.C.M.G., 
 Prime Minister, 
 
 Ottawa, Ont. 
 
 Dear Mr. Premier: 
 
 In tendering my resignation as Food Controller of Canada, I 
 desire to review the work of Food Control during the tenure of my 
 office and to outline to some extent the conditions which have 
 affected and governed it. It has been about six months since you 
 assigned me the honourable post I have since occupied. I have under 
 another cover, in my letter of resignation, explained the reasons 
 which have induced me to hand the reins of office to a successor, 
 who is, I believe, wholly acceptable to your Government, and who 
 I feel assured will be equally acceptable to the people of Canada; 
 and it is, therefore, unnecessary for me to here enter into any 
 personal details in respect of that. 
 
 Food Control in Europe. 
 
 The question of food control is a very wide and complex one, 
 and as a prelude to my report I wish to refer in more or less general 
 terms to precedents which already exist. In the history of warfare 
 prior to that of the present war, there has never been an official in 
 any country in conflict whose duties corresponded to what, in all 
 the countries now in war, belong to those of Food Control or Food 
 Administration. In Great Britain, in France, in Italy, in the 
 United States, and in several of the British Dominions the exigencies 
 of the food situation, as an important factor in deciding victory, 
 food controllers have been appointed to especially administer the 
 supply of food both for the armies in the field and for the civiUan 
 
population; but they have had to hew out policies of their own 
 according to the peculiar conditions of each country, without 
 tradition or precedent to guide them. The military authorities of 
 Germany, with their wonderful genius for organization and pre- 
 paredness, had long before the war carefully and scientifically 
 thought out the food problem in operations of a war that might be 
 protracted far beyond their military expectations. They left 
 nothing to chance and almost as soon as war was declared the nation 
 was put on a food ration, and a food control was set in action that 
 would have only been possible with a people trained "to the highly 
 organized discipline and minute administrative control charac- 
 teristic of the German people and their government" as an American 
 writer expresses it. But so elusive is food of an effective control in 
 respect of rationing and price-fixation that even in Germany, where 
 political conditions were so favorable to success, success has only 
 been partial, and in important instances efforts for regulation have 
 been a failure. The burden has not been laid on all people equally 
 or equitably, and to quote again from the writer already referred 
 to, "That the restrictions in the diet during the past year and a 
 half have fallen almost entirely upon the industrial workers of the 
 cities is fully realized by the industrial classes and represents a 
 casiis belli between them and the agrarians that will be the occasion 
 of bitter political contests after the war. The harsh treatment 
 inflicted by the peasants during the past summer upon city children 
 sent to the country for recuperation has only intensified this bitter- 
 ness." So, that the German experience, even if our democratic 
 instincts did not suggest it, would dictate a policy of food adminis- 
 tration based upon the nutritive requirements of the people who 
 Tiave to do the hard work of the nation in a time of war and that 
 in regard to staple foods, or what may be regarded as the neces- 
 saries of life, there should be one standard or a set of standards of 
 •diet for rich and poor, such standards as in many food products it 
 ns the endeavor to set in Canada and the United States. 
 
 Germany's success in conserving food has been principally in 
 rationing and in respect of keeping the price of bread and meat 
 down to about pre-war rates, but that has been accomplished by 
 bu3dng supplies and selling at a loss to dealers, the loss being borne 
 by the nation as a whole. In all perishable food products Germany 
 has not been able to successfully contend with the problem, and no 
 system of food control which has not the co-operation of the people 
 as a whole can be made to work out according to any schedule. 
 Even if Germany with her highly systematized and scientific methods 
 could have solved the problem, it would have been on account of 
 the disciplined masses and her system would not have appealed to 
 
the democratic Allies. It may be, and it probably will be, in the 
 much longer continuation of the war that her system or some 
 system of rationing will be adopted in America, as well as in Great 
 Britain, France and Italy, where it is now being considered, but it 
 is one repugnant to the spirit of freedom which exists in all these 
 coimtries, and will be adopted only as a last resort, upon the failure 
 of a majority of the people to respond to voluntary conservation of 
 food. Germany's methods and her peculiar psychology afford an 
 interesting study. Her food, like her war psychology led her 
 astray in many directions, although the resourcefulness of her 
 economic and fighting experts have been sufficient to partially 
 retrieve mistakes and create new, if only temporary, expedients. 
 Through the depletion of man power and the weakening of working 
 industrial units Germany has not been able to keep up the efficiency 
 of pfe-war times. Production has decreased, agricultural lands have 
 been less productive through lack of fertilizers, and distribution 
 through decreased efficiency of transportation has not been main- 
 tained evenly or equitably. By reason of the very elaborateness 
 and complexity of internal food control in respect of all perishable 
 food commodities, evasion of the regulations designed to prevent 
 profiteering, extortion, speculation, hoarding and inequitable dis- 
 tribution in the country districts which operated unfairly and burden- 
 some upon urban centres, was comparatively easy and constantly 
 practised. The control through war operations of the rich pro- 
 ducing sections of Poland, Courland and Roumania, to which by 
 inactivity on the eastern front Germany has been able to send 
 several ihilliojis of men to work as agricultural laborers, has spared 
 Germany from practical starvation. German methods of food 
 control cannot, therefore, be regarded as examples of problem- 
 solving in any of the allied countries, more particularly in Canada 
 or the United States. 
 
 The fundamental principles of food control in Germany present 
 essential differences as compared with those of Great Britain, 
 France and Italy. The people of Great Britain of any class or 
 social grade, have not been thrifty as the people of France have 
 been thrifty, and they have neither been conservors of food nor 
 scientific in their production as the Germans have been. When, 
 therefore. Lord Devonport became Food Controller his path was 
 beset with many difficulties, and the task of Lord Rhondda, his 
 successor, though more vigorously performed, was not less easy. 
 Great Britain did not realize until the war had been going on for 
 some time just how serious the food problem was. The situation 
 in Great Britain had, however, one advantage over the situation in 
 France in as much as in economy, in area of production and in 
 
available man-power and unused food resources there was oppor- 
 tunity for large increase; whereas in France thrift was always at 
 its maximum, the land was tilled to its utmost and every man of 
 military age or fit for the industries of war was commandeered. 
 England with only twenty-five per cent of her area under cultiva- 
 tion has increased it by several miUions of acres with a corresponding 
 increase of production. The Food Controller of Great Britain 
 has very sweeping powers. He may, as they have been described, 
 make absolute orders controlling the production, manufacture, 
 storage, transport, distribution, purchase or sale, use and consump- 
 tion of any article of food. He is not a food controller; he is 
 literally a food dictator. By a stroke of a pen, by ukase. Lord 
 Rhondda swept away all game' and fish preserves and exclusive 
 rights on land and surrounding sea for purposes of food production. 
 I could not without undue length outline all the activities of Lord 
 Rhondda — ^the enforced allotment of land, the extension of credit, 
 to farmers, the utihzation of labor and the establishment of food- 
 producing industries, the rehabilitation of the fisheries industries, 
 the control of all foreign purchases, the importation and distribu- 
 tion of foodstuffs, the fixing of maximum prices and sales regulations 
 of all food grains and their products, the close control of sugar, the 
 regulation of eating houses, the reduction in the use of wines and 
 spirits and the campaign of food economy and production generally. 
 Notwithstanding the extensive powers of the British Food Con- 
 troller, however, and his theoretically complete control, certain 
 results have not been satisfactory. Regulations conceived in the 
 best of good intentions have been several times revised, and com- 
 plaints today are numerous. There are principles which might 
 govern any dietetic regime exceedingly difficult, if not impossible, 
 to apply to a diversity of tastes and a variety of conditions which 
 exist in every community and country. As well expressed by Mr. 
 Herbert Hoover "Any control of prices or distribution is the lesser 
 of evils; a fight against something worse. Any form of control 
 leads into economic reactions that are disconcerting." That has 
 been the experience of all the countries at war. Food in times of 
 peace is always a problem, and must be many times more a problem 
 in a time of war such as we have now, when every producing area 
 of the world and every avenue of transportation and distribution is 
 affected by it. 
 
 The one thing which most affects the mind of the consumer, 
 which means the people as a whole, irrespective of what they 
 individually have to sell, is the' price of food, regardless too, of the 
 conditions which create the prices. They compare it with previous 
 prices and prices in normal peace times, and hold the Government, 
 
and through its agency, the food control, responsible. As will be 
 shown demonstrably clear later on, in addition to concrete results 
 effected by Government regulation, the food administration is 
 responsible only for prices and conditions that might have been 
 ameliorated by efficient control. The only people who have been 
 consistently patient and reasonably considerate throughout the war 
 have been the people of France as a nation. The indomitable 
 spirit of resignation to immutable facts has led the French people 
 to accept a situation which despite frequent changes of Government, 
 they knew was unavoidable and to plod on to victory or death. 
 
 The food situation in France was simple. It was determined 
 at the outset by plain conditions. France had to exert at once its 
 full force as the next best prepared military power to Germany in 
 Europe, against a power directly its enemy, whose speedy entry 
 was a determining factor in the war. In France every man of 
 military age was a soldier, and the quick substitution of the old, 
 the women and the young was a necessity. Decreasing production 
 and dependence upon importation of foodstuffs became inevitable, 
 and without a detailed consideration of food policy the necessity of 
 food control was obvious. France followed on the lines of necessity, 
 and exercised all the powers it decreed advisable in the direction of 
 conservation, production and distribution. Restrictive regulations 
 in matters of food are a matter of domestic record. But in the 
 case of France, and the same is true of Italy, no amount of domestic 
 regulation could save the situation in a great crisis, a crisis such as 
 actually exists, without dependence upon North America. 
 
 Despite the fact that the people of France, used to methods of 
 thrift, responded to the demands of the Food Controller more 
 readily than those of any other of the Allies, the subject of putting 
 them on a war ration is now being seriously considered. Food 
 Control in France has not effected what has been expected of it. 
 
 All of the maximum price laws and decrees which are intended 
 to suppress illicit speculation and to prevent inflated profits have 
 been subject to much discussion. Some of them have even been 
 revoked; and some, of the maximum prices have been abolished, as, 
 for example, those for potatoes, milk, butter, and cheese of all 
 kinds. The outcome of the whole French debate is an agreement 
 with the conclusion reached in other countries, namely, that maxi- 
 mum price measures can be enforced with success only in the case 
 of commodities the supply of which is under the control of the 
 Government. Where the supply is not thus controlled, maximum 
 price measures afford little relief. If not considered high enough 
 by the producers, they tend to force the commodities covered by 
 them out of the open market. 
 
Italy, too, early in the war put into effect a measure of food 
 regulation, not so extensive or rigorous as in Great Britain and 
 France, but it has gone steadily forward on parallel^ lines and is 
 practically on a system of rationing in many of the cities. General 
 remarks as to the results of food controlling in France apply to 
 Italy; but Italy was handicapped by the fact that each of the pro- 
 vinces had independent control, the result of which was witnessed 
 in the absurdity of each of the provinces victualling its own army, 
 or wing of the army sent to the war. From the point of view of 
 the mobilization of her food resources, Italy was totally unprepared, 
 and when the loose interstate system failed, as it was bound to fail, 
 she hastily adopted an arbitrary system of food control of which 
 the rationing of individuals was an integral part. This gave rise 
 at once to such an irregular distribution as to threaten the entire 
 political fabric. 
 
 This brief review of food conditions of the principal countries 
 at war in Europe, will serve to illustrate to some extent the rather 
 radical differences between the systems adopted on the Continent 
 and those in Canada and the United States. Drs. Kellogg and 
 Taylor in their book entitled "The Food Problem" say, and their 
 observations are most apt: — 
 
 "Any account of the attempts of England, France and Italy at 
 food control should be rich in suggestions to us of America as to 
 what to do and what not to do in our own endeavors, only fairly 
 begun as yet, to solve our food problem. ^ 
 
 "Take, for example, the question of the effect and the advan- 
 tage of establishing maximum prices. Germany, Italy, France and 
 England have all leaped at this presumably simple solution of the 
 problem of profiteering and distress of the Consumer. But it is 
 now obvious that this is no simple solution; it is doubtful indeed, 
 if under any but the circumstances of an absolute governmental 
 control of the bulk of the commodity priced it is any solution at all. 
 For its application immediately creates new problems; most con- 
 spicuously, the problem of keeping the commodity in the market. 
 Fix a price for food at a price lower than the producer believes he 
 should receive and the commodity vanishes from sight and access. 
 
 "Also, we must recognize that with all the best will and best 
 work in the world, all endeavour to keep prices down in war time 
 is met by an irresistible force which tends to push them up. The 
 prices of foodstuffs in the warring countries have steadily mounted 
 until now, taking all the commodities together and striking a rough 
 average, food can fairly be said to cost in England, France and 
 Italy fully twice, and in Germany three times, what it did at the 
 time of the outbreak of the war." 
 
In connection with the continental situation, however, there 
 were two or three notable results achieved. One was the handling 
 of bread, the main factor of food, and the other the care of the 
 children. In fact, for war purposes, including the military and 
 civil populations, there were four food essentials — ^bread (of some 
 cereal composition and standard), meat, fats and sugar. The 
 price of these was regulated in various arbitrary ways, but in res- 
 pect of bread, the staple diet of all peoples, in every case a war 
 standard was adopted and the price was kept low by state purchase 
 of flour and charging losses on bread production to state treasuries. 
 In Eiirope a percentage of the population is always close to the bread 
 line, and a large percentage is poor in our sense of wealth, so that 
 the price of bread was everywhere an essential consideration and 
 was regulated at national expense. 
 
 Casual observers in Great Britain, France and Italy have 
 endeavoured to discount statements as to the urgency of the food 
 situation, which in France and Italy is not short of desperate, by 
 reference to the physical condition of the children, who appear to 
 be, and as a rule are, healthy and well-nurtured. The reason for 
 this would be obvious even if it were not well known. The children 
 have been the first care of the nations at war, as nations and as 
 individuals. Parents, especially mothers, deny themselves that 
 their children may not go hungry. 
 
 U. S. Food Administration. 
 
 When we come now to the United States and Canada, which, 
 always in the midst of plenty, were the last to undertake food con- 
 trol, the Hon. Herbert Hoover, who had experience of the Euro- 
 pean situation through his work in connection with Belgian relief, 
 formed certain clearly defined theories about the economics of 
 regulating food, and I may say that without at all comparing notes, 
 and reasoning quite independently, I came to conclusions practically 
 identical. It seemed to me obvious from the very outset that you 
 cannot set arbitrary prices upon food or any other products, the 
 original cost of whose elements vary at every stage, without upsetting 
 the entire economic apple cart. What only can be done, without 
 the nation actually taking over the business of production itself, 
 is to take charge of the product after it leaves the hands of the 
 producer and see that not more than a reasonable pre-war profit is 
 made by the dealer, that there is an even flow of distribution, and 
 that overhead charges are kept as low as possible. In a nut-shell, 
 that is what legitimate food control means. So expressed, it sounds 
 
like a very simple proposition, but the working of it out in practice 
 is quite another matter. The principle adopted by the United 
 States is essentially democratic. Although certain almost auto- 
 cratic powers have been obtained by legislation in order that what 
 is necessary in food control may be made effective, the aims of the 
 Food Administration in the United States and those of the Food 
 Control in Canada have not been to achieve results by mandatory 
 means, but by the voluntary co-operation of the people. 
 
 Mr. Hoover, prior to his formal appointment, had studied the 
 subject of food control very thoroughly, and in conjunction with a 
 small group of men who had been associated with him in the work 
 of Belgian relief, he planned a programme upon the broad lines of 
 which everything has proceeded since. He has created an organi- 
 zation which in Washington alone involves the emplojrment of 
 over 1,500 persons, divided into a great many classes according to 
 the nature of the subject to be dealt with. In addition to the federal 
 organization, there is an organization in each State at the head of 
 which is a State administrator. Mr. Hoover has enlisted the 
 voluntary work and co-operation of a great army of press men, 
 clergymen, teachers, speakers and others. According to the prin- 
 ciples upon which food administration is founded in the United 
 States and Canada, its efforts are mainly directed towards educating 
 the people to a realization of the value of food as a factor in the 
 war. The amount of publicity in all its various forms, which is 
 carried to every comer of the nation, is vast in extent. 
 
 The appropriation for administrative purposes this year is 
 about $5,000,000 and is likely to be largely increased next year. 
 
 Each food staple and each special activity is handled by a 
 division, the heads of which are business and other experts who 
 give their services free to the state. 
 
 The policy of control is, in non-perishable products, not price- 
 fixing but the stabilization of prices determined by conditions of 
 trade from time to time, and, in perishable commodities, the fixing 
 of a reasonable profit based on a reasonable pre-war rate, not upon 
 single transactions, but upon transactions in the aggregate for 
 fixed periods. 
 
 The great lever of control is not legisla,tive enactment but the 
 hcensing of dealers, whose existence as such depends upon good 
 business behavior. 
 
 No show or threat of compulsion is made, but the voluntary 
 co-operation of dealers and the public generally is sought, and no 
 compulsion is exercised until other efforts fail. The business 
 
 10 
 
element of the United States, now that the situation has been made 
 clear through an enlightened campaign of publicity, is responding 
 freely to appeals made by the Food Administrator. 
 
 Without making further reference to the principles governing 
 Food Administration, it may be stated here that broadly they are 
 the same which govern and have governed in Canada since I took 
 office, and I anticipate that in both countries the cases will be 
 exceptional in which enforcement by processes of law will be 
 necessary. 
 
 Another matter in respect of both countries may be explained. 
 It is pointed out that prices are still high, and in some instances 
 higher than ever, and many persons want to know what have been 
 the concrete results of food control. This can be best answered 
 by asking them to consider what would have been the prices of 
 commodities if no food administration machinery had existed. 
 No one will argue that the Food Controller can control the cost of 
 production of food commodities — that is, the first products of the 
 soil — and it is obviously impossible to fix generally the profit the 
 producer should add to his costs. It has been pointed out by 
 Mr. Hoover, U.S.. Food Administrator, for instance, that had it 
 not been for the stabilization of the price of wheat and the efforts 
 of control generally, wheat would have gone sky-rocketing, and the 
 price of bread, which is back to 7c and 8c per lb. in the United 
 States, would probably have been 25c per lb. Another instance 
 is given by him in the case of sugar, which might haVe been un- 
 attainable by any but the rich had it not been for a sane and satis- 
 factory solution of the sugar problem. The figures go to show 
 almost invariably that while the cost of produce at the hands of 
 the producer has doubled, the price to the consumer has not by any 
 means increased in the same ratio. Some articles are as cheap as 
 they were before the war. I may add that by conserving food, 
 the cost of living may be reduced, although prices may still remain 
 high. And here let me say that the frequent statements made that 
 food is dearer in Canada than in the United States or in Great 
 Britain and France, are untrue. Generally speaking, without 
 going into statistics, food commodities are much dearer in Europe 
 than in America, and cheaper in the scale as a whole in Canada 
 than in the United States. In the staple commodity of bread, the 
 loaf is cheaper in England than in Canada, but bread in Great 
 Britain is nation-controlled and fixed in price as a war bread, lower 
 in wheat flour content than ours. The loss as between the import 
 price of wheat and the bakers' price of bread is charged to the 
 Treasury and is paid for in general taxation. 
 
 11 
 
In reply to the appeal for substitution say, com for wheat and 
 fish for beef, many, as a conclusive argument against it, point to 
 the fact that some of the substitutes are dearer than the things 
 substituted. They forget that price is not the vital issue and that 
 it is their duty to eat substitutes for wheat and meat when and 
 wherever they can, even at a higher price, the vital thing being the 
 saving of meat and wheat to send to our Allies in Europe, 
 
 The Canadian Situation Reviewed. 
 
 "When the necessity of food control became apparent there 
 were special difficulties in the way in Canada. The people of 
 Canada since days of pioneer farming had never been used to any 
 stint of food or regulation of diet other than that imposed by indi- 
 vidual means. In respect of that they resembled very much the 
 people of Great Britain before the war in sharing a traditional 
 belief in their right to eat and drink what they liked and in what- 
 ever volume it pleased them. There was a difference, however, in 
 actual conditions between the two countries. In Canada the 
 scene of war seemed very remote, and except that men, whose rela- 
 tives embraced practically everybody, were being mobilized and 
 sent away to England and France, we hardly felt that we were 
 involved in war at all. In Great Britain there was always imminent 
 the danger of invasion by the enemy. In fact, there were frequent 
 invasions by air. England was practically within sound of the 
 great guns in France and Flanders. In addition, the people of 
 Great Britain well knew their insular position, and well understood 
 the significant fact that they had always been importers of the 
 necessaries of life in a large way, and quickly adapted themselves 
 to the new and urgent requirements of eating less, wasting less and 
 producing more. In Canada, practically a self-sustained country, 
 always with plenty, to fully impress its people with the necessities 
 of the situation, required a nation-wide and well-organized cam- 
 paign of education, one comparable with that which has been under- 
 taken in the United States where conditions of a nature similar to 
 our own have always obtained. 
 
 The difficulties of the position of a Food Controller have been 
 well expressed by Lord Rhondda, Lord Northcliffe, Mr. Hoover 
 and others, whose statements need not be reproduced here; but I 
 did not myself realize fully the magnitude of my task in Canada 
 until I had, at the request of yourself as head of the Government, 
 undertaken the duties of my office. The problem, I may say, did 
 not consist so much in the big things, because organized industry 
 and distribution can be handled by the very reason of the definite- 
 ness and intelligence of its organization, but in the great multitude 
 
 12 
 
of small things as they individually affect the mass of population, 
 made up of producers, dealers and consumers. Though considered 
 in all three capacities these interests should not be regarded as 
 antagonistic to each other, yet each man in his own capacity views 
 them from his pecuhar angle, arid very often without considering 
 how his interests affect all other interests. So a great diversity of 
 opinion immediately arises as to how any hne of food business should 
 be dealt with just as soon as a specific proposition is laid down, 
 each opinion to a large extent and quite naturally, too, based on 
 individual effect. I could from our files, give you any number of 
 concrete instances illustrating just how this has worked out in actual 
 practice, but the truth of the general statement will be obvious to 
 you and should be to the public at large. 
 
 When I took office, as you are well aware, the high cost of 
 living and the constant increase in the price of food which had 
 extended over a period of twenty years, and which was naturally 
 accentuated by war conditions, was an absorbing question. Ajs 
 every unit of the community is a consumer, the matter uppermost 
 in the mind of the public was how the cost of his living could be 
 reduced. Every business and producer, without regard to the rela- 
 tion which his own business and his own profits bore to the situation 
 as a whole, thought it could and should be reduced by intervention 
 of the Government. The situation was very acute in that respect, 
 and added materially to the difficulties of the Food Controller, who 
 was expected in some magic way to bring down the price of every- 
 thing to be consumed, while being without power to control any 
 of the factors that entered into the cost of production, and the 
 object of whose appointment in conformity with what had been 
 done in all the Ally countries was most imperfectly understood. 
 I shall deal more explicitly with the subject of food control as I 
 proceed, but what the pubfic at first failed to understand, and what 
 I endeavored to make plain, was that there was something even 
 more important than reducing the cost of living in Canada, though 
 that was one objective. What that supreme consideration was is 
 the winning of the war, and the requirements for that purpose are 
 summed up in a statement made by me: 
 
 "Far greater than the necessity of production for home supply 
 is that for the supply of Great Britain and our Allies. 
 
 "Great Britain is producing more of foodstuffs than for many 
 years, but the supply is, of course, wholly inadequate for her popu- 
 lation and her armies. 
 
 "Belgium is practically all in the hands of Germany, so also is 
 a considerable portion of France, Serbia, Roumania, and Russian 
 Poland, and now a portion of Italy, are in the hands of the enemy. 
 
 13 
 
"The productive power of our Allies is lessened by the number 
 of inhabitants in arms. 
 
 "The situation in France and Italy from a food point of view 
 is serious, and that is what makes the demand in Canada and 
 the United States for conservation of resources and increased 
 production so imperative." 
 
 "To feed the Allies is the paramount duty of North America. 
 It is far greater than the necessity of production for home supply 
 or the cost of living. Unless the war is won nothing matters." 
 
 When the Food Controller was appointed the people were de- 
 manding cheaper food and they thought that the office was created 
 solely for the purpose of reducing prices. The real problem, 
 however, which the people did not understand — ^because they did 
 not reahze the seriousness and vital character of food as a munition 
 of war — was to conserve food and to devise means by which greater 
 quantities could be released from domestic consumption for con- 
 sumption overseas. The second part of the problem, no less serious 
 than the first, was how to increase production. The reduction in 
 prices which the people expected would have been disastrous to 
 both objects. It has been suggested that another name than Food 
 Controller would have been preferable, but it is doubtful if any 
 form of title would have turned the mind of the people from their 
 pre-conceived idea of what was needed. The very natural disap- 
 pointment of a man or woman whose whole thought was centered 
 upon how his or her pocket-book would be affected went far to 
 prevent that whole.-souled and universal co-operation with the 
 Food Controller's office in other directions as well, which is 
 necessary to the fulfilment of the real purposes in view. To such 
 popular misconception originally existing, which found expression 
 in hundreds of newspapers and magazines, is attributable the severe 
 criticism to which my office and myself in particular were subjected. 
 The fact that an election was pending and actually under way, 
 tended to seriously prejudice the mind of the people as to the 
 usefulness of the work I could perform.* I appreciate as well as 
 any one, that in politics any stick is good enough to beat a Govern- 
 ment with, and I bore up cheerfully enough, satisfied that when the 
 facts were known and understood, the kind of criticism levelled 
 against the office would cease, as in a great measure it has for 
 some weeks past. 
 
 *WIien writing tlie preliminary section of my report I asked Mrs. Muldrew our expert in Domestic 
 Science who attended a great many meetings of women throughout the country and mingled freely 
 among those interested in our food problems from one point of view and another to give me in a 
 succinct form the difficulties which she had to face and the attitude of mind in which she was re- 
 ceived and she gave me the following, which is of special interest in this connection: 
 
 "In my experience in speaking on the subject of Pood Control I found the public did not 
 know the gravity of the crisis, that they were very much prejudiced against the Food Controller, 
 that they were eager for information and were ready to do anything asked as soon as they knew the 
 need. I found the chief objection seemed to be the cost of staples, notably milk. They thought 
 
 14 
 
When I accepted office as Food Controller I studied the situ- 
 ation very carefully and very seriously. I was guided not only by 
 the knowledge of others in Canada whom I called into council, 
 but by experience in Great Britain and by the attitude of Mr. 
 H. C. Hoover, Food Administrator for the United States, whose 
 qualifications for the part he fills are admittedly very high. I came 
 to the conclusion that several things were essential, and my policy 
 throughout has been based upon the consideration involved: 
 
 1. To stimulate production— to speed it up to its highest limit. 
 The needs of increased production are based not so much upon our 
 own home requirements, as upon those of the Allies. If the people 
 of France and Italy starve (and they are on the verge of starvation), 
 and if their armies are not fed up to the standard of fighting strength, 
 the war will be lost. We must bear in mind, too, that before the 
 next crop is harvested there will be six million men— British, 
 Americans and Canadians — in arms at the French, Belgian and 
 other fronts — ^men taken away from productive pursuits— to be 
 victualled as well. If there be not enough food raised and saved 
 so that we can spare for overseas the amount necessary there, then 
 again the war is lost. I have tried with all earnestness, and the 
 Food Control Administration has tried with all its might, to impress 
 upon the public the great seriousness of production. And along 
 with production go the other essentials. 
 
 2. To discourage waste, to conserve to the utmost everything 
 that is of the nature of food, to utilize as food, products formerly 
 overlooked or discarded, in order that we may release sufficient staple 
 foods for export so supply the wants of all our Allies. 
 
 3. To economize and substitute in the use of foods of all kinds 
 so that an equivalent may go abroad. 
 
 4. To work in harmony and co-operation with the food author- 
 ities of the United States, so that fighting in a common cause against 
 a common enemy, the food resources of both countries may be so 
 pooled and apportioned that the greatest possible surplus may be 
 available for Europe. 
 
 the Controller had heen influenced and had allowed a Milk Combine to keep the price up. The farm 
 women on the other hand were up in arms at the suggestion that food is too high and quoted to you 
 labor difficulties and the loss of men from farms. The probe into bacon did much to prejudice the 
 city people and the slanders against the Food Controller have hurt his work. In the end, however, 
 the facts disclosed as to the rate of profits of the packers have had a strong reaction favorable to the 
 Food Controller. 
 
 "1 find also that the legislation in favor of withdrawing foodstuffs for distillation had done 
 good but that the people needed to know from some one who knows exactly the situation. I think 
 the people who can do most are the two forces that reach the bulk of the people continually — the 
 teachers and the preachers. A section of the press has not been helpful but now, however, the tone 
 is much more friendly. The section of the press referred to has been a great factor in fostering 
 discontent and teaching a wrong attitude. The conception of this press was that the Food Con- 
 troller was put in his office to lower prices and the cry seems to be for fixed prices. 
 
 "1 found generally speaking there were several attitudes of mind: One was a premeditated 
 hostility which could not be overcome; another was an attitude of ignorance in regard to the whole 
 scope of food economics and this requires a great deal of patience and careful education; the third 
 is an attitude of criticism not unfriendly in itself but on account on impressions gained through 
 statements in the press. Questions based on these criticisms I found easy to answer and the result 
 in every case was quite satisfactory when the situation was understood. Many expressed their 
 attitude best by stating after I was through talking: 'I am gladto have had this explanation; we 
 only wanted to know. ' " 
 
 15 
 
5. To prevent hoarding and "hogging." The steps that have 
 been taken by me as Food Controller have been so effective, and 
 the organization of the work of our committees has been made so 
 complete, that I can state confidently that profiteering and specu- 
 lation have been largely eliminated from the Canadian food situation. 
 What has been done in this regard will be fully elaborated later on. 
 As to the matter of fixing prices, which I was expected to do^ in 
 some unexplained way, I have from time to time stated my position 
 •very clearly. What I have endeavored to do, and which I think I 
 have done reasonably -successfully, is, in the case of certain staple 
 food products to estabhsh a fair and safe margin of profit. I am 
 not going to put forward the law of supply and demand as a basis, 
 because all economic laws are subject to the exigencies of necessity. 
 I lay down the simple proposition that the price of an article is 
 based upon the cost of production and handling, with a reasonable 
 profit added. When profit ceases production ceases, and as there 
 is a great multitude of factors and conditions, each variable, entering 
 into all other forms of production, no person has come forward to 
 say how the price of each product can be fixed, which, while it might 
 ensure a profit to some, would not mean loss to many others. To 
 fix prices on all secondary products, like flour, bacon, etc., you must 
 fix prices on every egg, pound of butter, bushel of grain, quart of 
 milk, crate of fruit and so on that the farmer produces, and in the 
 last analysis the Food Controller would be landed in a hopeless . 
 tangle of adjustments and readjustments. It is not possible to set 
 up any such artificial system. I have not attempted the impossible, 
 but have adopted regulations which, in the interests of all concerned, 
 I have conceived to be best adapted to the system of doing business 
 we have, and which in its essential features has existed since the 
 world began to do business. 
 
 In going as far as we have gone, and in almost every respect 
 what has been done conforms with what has been done in the 
 United States, we have been faced with what at times seemed to be 
 insuperable difficulties. We have had to deal with many diverse 
 and selfish interests, and every step taken to better conditions has 
 been opposed and often denounced by some section of the commun- 
 ity or some special interest, every means being used to intensify 
 prejudice against the Food Controller. We have heard a great 
 deal about the selfishness and greed of the 'big interests," but our 
 experience — and I am now speaking for the Food Control in all its 
 branches — has been that greed and selfishness in not confined to 
 any one class, but that in business from the smallest producer to 
 the biggest dealer, men are pretty much as they are built, and 
 speaking for myself I can see no difference iii principle between 
 
 16 
 
profiteering on the basis of $100 or a million dollars. We have been 
 able to handle and control the big interests much more easily even 
 than the small interests because they are easier to get at, and our 
 task in the former respect would have been much easier still, had it 
 not been for the international issues involved, and to those I shall 
 have to devote a special section of my report. My doctrine is, 
 and has been this : every person in Canada of mature years 
 should regard himself or herself as a member of the food control, 
 whose duty it is to produce all he can and sell all he can on the least 
 basis of profit, and to conserve all he can and spare all he can. 
 When the 400,000 Canadians and the first armies of Britain put on 
 khaki and went to the front, they did not do so because they had to, 
 but because they wanted to and it was their duty; so the producer, 
 dealer and consumer in Canada who does not do his whole duty 
 in the ways he can, is in the same class as the "slacker" and the 
 "profiteer." 
 
 The office of the Food Controller was as a consequence devoted 
 to a large extent to educational work, recognizing from the first, as 
 already indicated, that the voluntary enlistment of the whole 
 people in a campaign of waste elimination, food substitution and 
 greater production, was essential, and that such enlistment would 
 only be possible when the general public were thoroughly aware 
 of the facts. 
 
 Hence the necessity of an educational campaign on a compre- 
 hensive and definite basis. If we have not the voluntary and whole- 
 sale co-operation of the people of -Canada, having clearly in view 
 the objects I have outlined, the efforts of the present or any Food 
 Controller will be of little avail. I am more convinced now, as the 
 result of our efforts, than ever before, that when the people of 
 Canada as a unit realize the terrible seriousness of the situation, 
 not only as it affects their own interests, but the interests of civili- 
 zation throughout the entire world, they will answer as a unit to 
 the appeal we have made. It is the same appeal that is being made 
 in the United States and in every nation represented by the Allies. 
 Cruel as have been the exactions imposed by their rulers upon the 
 people of Germany and Austria in respect of service, food and 
 supplies of all kinds, by those alone as auxiliaries to a mighty 
 military organization have the Central Powers been able to carry 
 on the war and almost grasp victory at several supreme moments. 
 If in such a cause people save, sacrifice and give up to a degree of 
 which the people of America have no conception, how much greater 
 should our incentive be in a cause which is as holy as the enemy's 
 is devilish. 
 
 17 
 
Summary of Results. 
 
 Having concluded a general survey of the situation, I wish now 
 to state as briefly as possible what the Food Control organization 
 has accomphshed up to this, the date of my resignation. This has 
 been set forth in greater detail under a series of headings which 
 refer to the way in which the principal subjects of food control have 
 been dealt with. These detailed accounts are submitted as a matter 
 of record, and may or may not be published as appendices to my 
 report, as your judgment may suggest; but there is a desire to have 
 expressed in concrete form actual results, something regarding 
 which there is a great deal of misapprehension, and, in many 
 quarters, notwithstanding our efforts to give the widest publicity 
 to every detail, a total lack of knowledge. I need not impress 
 on you, who have a fairly intimate knowledge of internal food 
 administration, that every concrete settlement of policy arrived at 
 has been the result of weeks, and in some cases, months of patient 
 investigation and negotiation, in which a great variety of conditions 
 and apparently insignificant items that affect business in an impor- 
 tant way, have been considered and sifted down to the very last 
 analysis. The man who thinks, and there are many such persons, 
 that the Food Controller can by a stroke of a pen achieve an 
 apparently desirable object, would if his advice were followed, 
 disorganize business throughout the country and ruin hundreds of 
 dealers. As a particular instance, the United States Food Admin- 
 istration spent a long and anxious time in deciding as to the appar- 
 ently simple proposition as to whether the wheatless day should be 
 Sunday or Wednesday, and the considerations involved were 
 important to the baker and to the consumer. A still more anxious 
 and a longer time was spent along with the millers in arriving at 
 what should be a standard flour and what the weight and composi- 
 tion of a standard loaf of bread. These instances are multiplied 
 almost endlessly. 
 
 What the public does not understand without knowing inside 
 working details, is that businesses large and small have to be 
 adapted in machinery or organization, or in both, to the require- 
 ments of new conditions imposed, to achieve certain objects; and 
 that further there must be intelligent reasons for every step taken 
 and practical means devised. Most important of all, perhaps, 
 success must depend upon the willing, and necessarily intelligent 
 co-operation of the businesses affected, of producers and of dealers. 
 The person who does not understand will not act. 
 
 Now, then, what the Food Control organization has accom- 
 plished by the means and the instrumentalities I have indicated, 
 are succinctly as follows : 
 
 18 
 
As a preliminary it was necessary to obtain general powers by 
 order-in-council under the provisions of the War Measures Act. 
 These are very wide, and are supplemented and rendered explicit 
 from time to time as requirements dictate. 
 
 Practically without precedent to guide me, and with what 
 advice and assistance I could get, I had to proceed slowly at first. 
 In conformity with the aims of the ofBce, special committees were 
 appointed to study specific problems of food supply and distribution, 
 and to make recommendations. The Chairman and nearly all the 
 members of these committees — all practical men — ^have been serving 
 voluntarily and without remuneration. 
 
 Arrangements were made through various agencies for corres- 
 pondents in all the supply centres of Canada to report regularly 
 upon prevailing market prices and stocks in hand. The information 
 supplied by these reports must be the basis of all food control. 
 This intelligence organization has been greatly perfected and is now 
 very complete. 
 
 Realizing, as I have previously intimated, that the wholesale 
 co-operation of the people with the aims of Food Control was an 
 essential, and that they must know and understand what those 
 aims are, an educational organization was established, which by 
 means of the press, pamphlets, bulletins, cards, posters, sample 
 bills of fare, cookery books, teachers, preachers, voluntary speakers, 
 motion pictures, cartoons, women's societies, etc., etc., secured 
 continued and very extensive publicity. A great deal has been 
 accomplished by these means in the way intended, but much has 
 to be done yet. It means keeping everlastingly at it — lest we 
 forget. 
 
 As the result of our early investigations steps were taken 
 towards control of the operations of dealers in regulating profits and 
 obtaining an even flow of distribution and in securing the registra- 
 tion of dealers, wholesale and retail, and hcensing them. With a 
 full knowledge of all transactions from the time food commodities 
 leave the hands of the producer until they reach the consumer, the 
 Food Controller is enabled to keep the dealer upon good behavior 
 under penalty of forfeiture of license and other penalties as may 
 from time to time be provided for. The system of registration and 
 licensing is now proceeding toward complete operation. 
 
 The great necessity and insistence of the Allies for meat and 
 wheat, the two vital staples of war food, demanded that we should 
 save all we can of beef, bacon and wheat bread in order that the 
 Allies may have the more. For this purpose a regulation for eating 
 houses was made, stipulating two meatless days per week and the 
 use of meat to one meal on all other days. It is required that public 
 
 19 
 
eating houses provide substitutes for white bread at all meals and the 
 voluntary restriction of the use of meats, and the use of substitutes 
 for white bread was urged upon housewives. The results of these 
 have been marked, and from very complete returns for December, 
 1917, as compared with December, 1916, in respect of representa- 
 tive public eating places, the reduction in the use of beef was 49 per 
 cent, of bacon 53 per cent and of white flour over 25 per cent. 
 
 The dire necessity of saving wheat for the Allies is illustrated 
 by the fact that of the 450,000,000 bushels required until the next 
 crop is harvested, Canada and the United States can only supply, 
 from supplies in sight, 150,000,000 bushels. Comparing the supply 
 of wheat from America for the period from August 1st, 1917, to 
 December 15th, 1917, with the same period of 1916, the former is 
 only 13/23rds of the latter. 
 
 The Food Control has circulated 1,150,000 pledge and window 
 cards enlisting voluntary co-operation among householders in saving 
 food, but the returns received are not yet suflScient to judge of 
 results. 
 
 In order that substitutes for wheat should be available to the 
 pubhc in bulk, the sale of cereal foods in packages of less than 20 
 pounds weight, except under license, has been prohibited, with 
 satisfactory results. The estimated saving by this ordei^ is 200,000 
 bushels of wheat. 
 
 A heavy waste of fresh vegetables was prevented and a saving 
 effected in tinplate by the temporary prohibition of sale or purchase 
 of canned vegetables to be made available in the winter months. 
 
 The use of grain of any kind, or of anything that can be used 
 for food, for the distillation of potable liquors has been prohibited, 
 except for the manufacture of alcohol required for industrial purposes 
 and in the arts. 
 
 The embargo on the importation into and use in Canada of 
 oleomargarine, as a substitute for butter, was removed, under 
 regulations which protect the dairy interests, and oleomargarine is 
 now being freely used in Canada. Another result of the order, has 
 been that oleomargarine is also being manufactured in Canada. 
 
 The high price of milk was the subject of much complaint, and 
 the commodity itself is one of great importance as food. The price 
 as it affects the urban population of later years, is larger, due to 
 the price of feed, but since the war began the demand for butter, 
 cheese and condensed milk overseas greatly enhanced the demand, 
 over which it was exceedingly difficult to get any control. The 
 price of cheese was fixed at a maximum of 21jc per pound and 
 steadied the price. To be strictly accurate, Canada fixed no price, 
 but the British War Purchasing Department named a maximum 
 
 20 
 
figure for export at 2§c per pound. The bidding for milk by the 
 condensed milk factories in certain sections for export trade, was a 
 factor in keeping it up. The milk committee which investigated 
 the subject decided that the unnecessary overhead charges involved 
 in individual deliveries could be considerably reduced, and a plan 
 of co-operative delivery in seventeen cities of Canada it is estimated 
 would save $1,500,000 per annum, and it is now a question of 
 adoption in the municipalities affected. 
 
 The question of fruits and vegetables was one presenting 
 peculiar difficulties of price adjustment from the facts of the large 
 number of small producers and the great varieties and wide area 
 and varying conditions of production. The committee in charge 
 after long and careful consideration, decided that it would be 
 impossible to fix prices in the way the pubfic seemed to demand. 
 Thorough investigation in both eastern and western Canada dis- 
 closed that dealers had been doing business on a very small margin 
 of profit. An embargo had been placed on apples by the British 
 Government, but to assist growers in Nova Scotia who had a large 
 surplus, a traffic officer was appointed to assist in the movement 
 of the crop into the provinces west, and the situation was greatly 
 improved. Potatoes were for a time distressingly high in price, 
 notwithstanding that in several provinces there was a surplus in 
 1916, and a considerable scarcity existed in others. The farmers 
 showed a disposition to hold for high prices, which is being over- 
 come by efforts of our representatives. In 1917 there was a surplus 
 of over 6,800,000 bushels in Canada, and prices are ranging from 
 80c to $1.25 per biishel. The problem is by even distribution and 
 larger substitution of potatoes for food to absorb this surplus 
 without loss to the producers. Prince Edward Island, with a 
 surplus of 2,000,000 bushels, has a special problem on account of 
 lack of shipping. This is being solved by the use of a Government 
 steam ferry; but the difficulties of moving the crop are increased 
 by present railway facilities of transportation. * 
 
 It may be noted here that special difficulties exist in the way 
 of food control in all perishable commodites which include eggs, 
 butter, fruit and vegetables and fresh fish and meats. They must 
 be overcome by reasonable restrictions based on conditions of 
 transportation and consumption, and the lever of control in this, 
 as in all food commodities, is in the licensing system, and the general 
 aims are to estabfish an even flow of distribution on a reasonable 
 pre-war profit. In perishable commodities, the profit should be 
 calculated upon periods of operation, so as to take consideration as 
 
 ♦Note. — "Surpliia" in thiB case does not imply "available" surplus. The continued congestion 
 of freight and the consequent lack of distribution facilities render much of the surplus unavailable 
 to our larger centres of consumption. The Food Controller early recognized this condition and 
 has striven to improve it, 
 
 21 
 
well for losses in transit and shrinkage in prices. In non-perishable 
 products profits can be calculated upon individual transactions. 
 
 When we come to wheat, milling, bread and the allied questions 
 of by-products of milling for feed and substitutional products, we 
 have had a very wide and complex question of regulation. This is 
 being dealt with in a special memorandum too long to be epitomized 
 in this report. In brief, the Government stabilized the price of 
 wheat in order not to discourage production, and at the same time 
 to minimize the cost to the consumer. We have limited the profits 
 of millers, and at the same time have provided for the utilization 
 of the milling by-products at as nearly as possible basic prices for 
 animal feed purposes. We have arranged for a standard flour, 
 and negotiations at time of writing are being carried on for a stan- 
 dard of bread, which in the final result will mean a large saving of 
 the white flour content of wheat to be available in the equivalent 
 of wheat for the Allies, and will establish an irreducible minimum 
 of cost to the consumer. 
 
 The problem of ensuring Canada's supply of sugar was com- 
 plicated by both domestic and international difficulties, and here 
 again reference must be made to the detailed memorandum. For 
 a time the price and supply of sugar seemed serious, and I may say 
 that Mr. H. B. Thomson, acting as my personal representative in 
 Washington and New York, satisfactorily completed arrangements 
 with the United States Food Administration whereby Canada's 
 supply of sugar is assured, and a temporary period of shortage was 
 well bridged over. 
 
 The situation in regard to tinplate is explained in another 
 memorandum. The supply for canners is somewhat precarious, 
 and the solution of the problem lies in the substitution of containers 
 of other material, and in the curtailing of the use of tin in whatever 
 way it is not absolutely necessary. 
 
 From the outset a slogan of the Food Control has been "Eat 
 More Fish" as a substitute for beef and bacon, in order that these 
 may be hberated in greater quantities for the Allies. The fish 
 situation is three-fold in aspect— as it is created on the Atlantic 
 Coast, the middle west and on the Pacific. The effects of publicity 
 and the efforts of the Fish Committee to make publicity effective 
 in an increased supply, have been most satisfactory in as much as 
 the consumption of fish has increased from 50 to 100 per cent. 
 
 The profits of packers has been a subject of a great deal of 
 discussion, and while there appeared to be disproportionately large 
 on account of the enormous turnover created by abnormal export 
 demand, the rate of profit per pound of bacon was small and could 
 not possibly have increased the price of bacon tb the Canadian 
 
 22 
 
consumer more than two-fifths of a cent per pound. This question 
 has been a matter of special attention by the Government. 
 
 I have left to the last a subject which I can best define as 
 continental co-operation in exports. A perfect understanding 
 between Canada and the United States in the matter of foreign 
 exports and international exchange of food products was necessary 
 in order that the continent be kept water-tight in respect of exports 
 of Canadian or United States origin that might leak out to countries 
 other than those which it is the mutual policy to supply for war 
 purposes, and that each country might be able to supply the other's 
 wants in so far as supplies were available. After friendly confer- 
 ences, a basis was arrived at that so far as Canada is concerned has 
 been liberal, and I trust that in the United States our efforts are 
 equally so regarded. The machinery necessary to carry out this 
 poHcy of embargo and export and import by license took a little 
 time to create, but in relation to the important work accomplished 
 is exceedingly efficient and economical. One of the most gratifying 
 of our achievements is the perfect entente cordiale which exists 
 between the two countries. 
 
 Very faithfully yours, 
 
 W. J. HANNA, 
 
 Food Controller. 
 Ottawa, January 24, 1918. 
 
 23 
 
OFFICE OF THE FOOD CONTROLLER, OTTAWA. 
 
 Statement of Expenditure for Six Months ending December 
 
 31st, 1917. 
 
 DR. cai. 
 
 Travelling Expense — 
 
 Includes general expenses incurred by Special 
 Committees, Provincial Committees and mem- 
 bers of the Pood Controller's organization .... $ 18 , 865 . 57 
 
 Salaries — 
 
 Includes salaries paid to the employees of 
 the various Provincial Committees, as well as 
 the general working staff of the Food Control- 
 ler's organization 27,391.13 
 
 General Office Expense — 
 
 Includes sundry office expenses incurred by 
 the various Provincial Committees 3 , 806 . 90 
 
 Printing and Stationery — 
 
 Includes accounts for printing. Orders in 
 Council, special reports, stationery and office 
 supplies for the various outside Provincial and 
 Special Committees 25,590.05 
 
 Advertising and Publicity — 
 
 Includes special newspaper and magazine 
 display advertising, educational and general 
 publicity work 19 , 589 . 94 
 
 Telegrams — 
 
 Includes cables and telegrams to and from the 
 various Provincial Committees and general 
 
 organizations throughout the country 3 , 545 . 28 
 
 Office Furniture — 
 
 Includes general office equipment and sup- 
 plies for Provincial Committee offices 1 , 963 . 56 
 
 $ 100,752.43 
 
 Accountable Warrants — 
 
 Amounts advanced to Chairmen, Secretaries 
 and volunteer workers, as contingent expense 
 finds $ 6,750.00 
 
 A * I., Txr . , ? 107,502.43 
 _ Accountable Warrants returned and depos- 
 ited to credit of the Receiver General 907 . 28 
 
 T, , . , $ 108,409.71 
 By amounts received as per Letters of Credit- 
 July to December, 1917 $ 205,000.00 
 
 To Balance 96,590.29 
 
 $ 205,000.00 $ 205,000.00 
 
 24 
 
APPENDICES. 
 
 APPOINTMENT OF FOOD CONTROLLER. 
 
 When war broke out in August the crop was practically ready 
 for harvest. The 1915 crop was abundant, so that up till the year 
 1916 no food shortage was experienced. The ranks of the world's 
 workers in all kinds of productive industry were being depleted in 
 order to fill up the ranks of the army. Some thirty million workers 
 were in arms, or engaged in industries having relation to war. Then 
 came the crop shortage of 1916, world wide and disastrous, and we 
 began at once to draw upon our reserves of food. By the end of. 
 1916 our food reserves were very largely exhausted. The submarine 
 menace had made it impossible to protect all trade routes. To 
 bring food from Australia required three times the time and meant 
 the use of an unprotected route. As far as was humanly possible 
 the Atlantic route was protected, so that foodstuffs for the Allies 
 began to be looked for largely from the North American continent. 
 This made it imperative for Canada and the United States to feed 
 the Allied nations and the fighting men. To meet the situation, 
 the United States appointed Mr. H. C. Hoover Food Administrator, 
 in May, 1917. In Canada, the Hon. W. J. Hanna was asked to 
 take the office of Food Controller in June, 1917. 
 
 The Order-in-Council appointing a Food Controller for Canada 
 was passed June 16, 1917. His powers defined in this order are: 
 To ascertain the food requirements and facilitate the export of the 
 surplus to Great Britain and her Allies, to provide for the conser- 
 vation of food and the prevention of waste thereof, and to govern 
 the consumption of food in hotels, restaurants, cafes, private houses, 
 clubs and other places. He is authorized to purchase, requisition, 
 store, sell and deliver food; and to take measures respecting the 
 manufacture, preparation, storage and transport of food, and to 
 fix prices. 
 
 CORRESPONDENTS AND COMMITTEES. 
 
 Correspondents of the Food Controller's office were appointed 
 in all the supply centres of all the provinces in Ca'nada to report 
 regularly upon the prevailing prices of food products. This keeps 
 the Food Controller in constant touch with every phase of the trade 
 in every part of the country. 
 
 Working in conformity with the aims of the office, the Food 
 Controller appointed special committees to study specific problems 
 of food supply and distribution and to make recommendations. 
 The chairmen and nearly all the members of these committees are 
 serving without pay. 
 
 25 
 
The Committees formed and at work to date are: 
 
 The Control of Public Eating Houses Committee, 
 
 The Fish Committee, 
 
 The Milk Committee, 
 
 The Live Stock Committee, 
 
 The Fruit and Vegetable Committee, 
 
 The Millers' Committee, 
 
 The Packers' Committee, 
 
 The Cold Storage Committee. 
 Each of these committees is made up of acknowledged experts 
 of wide experience. 
 
 Each of these committees from time to time, under authority 
 of the Food Controller, reports, and recommendations are made 
 and action taken. 
 
 I cannot particularize in regard to the members of the various 
 general and special committees, including the Central Advisory 
 Council and the several provincial organizations to whom I have 
 'written personal letters expressive of my appreciation of their 
 valuable services and earnest co-operation in the work of Food 
 Control. I am appending a list of the members of the special 
 committees to indicate the character of the personnel as practical 
 men and expert advisers. When I say that I have very largely, if 
 not wholly, been guided ^y these men in matters upon which they 
 were asked to deliberate and regarding which they made recommen- 
 dations, despite the criticism that has been levelled at my adminis- 
 tration, I can cheerfully bear the burden of responsibility involved. 
 
 STAFF ORGANIZATION. 
 
 I may say a word about internal organization. It was planned 
 to cover the various -activities of the Food Control on as inexpensive 
 a scale as possible, consistent with efficiency. I can only speak in 
 the terms of highest appreciation of the service rendered by the 
 administrative staff, and of their hard work and loyal co-operation 
 at all times. 
 
 The Executive Head is the Food Controller, and he has an 
 Advisory Council made up of the heads of Departments. 
 
 The Departments are: 
 
 Education and Publicity, 
 Production and Conservation, 
 Domestic Science, 
 Office Staff- 
 Filing 
 
 Information, 
 Distribution, 
 ' Exports, 
 
 Licensing, 
 Accounting. 
 Provincial Branches, 
 International Relations. 
 
 26 
 
PISH COMMITTEE. 
 
 G. F. Beer, 
 
 R. Y. Eaton, 
 
 W. S. Wiley, 
 
 F. W. Wallace, Secretary. 
 
 MILK COMMITTEE 
 
 P. B. Tustin, Chief of Food and Dairy Division, Winnipeg 
 
 (Chairman), 
 W. A. Wilson, Dairy Commissioner, Saskatchewan. 
 R. W. Wigmore, Commissioner, St. John, N.B. 
 Dr. N. E. MacKay, Chairman Board of Health, Halifax, N.S. 
 J. Bingham, Manager, Ottawa Dairy Co., Ottawa, Ont. 
 T. Boucher, M.D., S.P.H., Medical Health Officer, Montreal, 
 
 P.Q. 
 W. R. Hamilton, Alderman, Vancouver, B.C. 
 
 E. H. Stonehouse, President, Ontario Milk Producers' Asso- 
 
 ciation, Weston, Ont. 
 
 FRUIT AND VEGETABLE COMMITTEE 
 
 R. Robertson, Vancouver, for some years General Manager of 
 the Okanagan United Fruit Growers. 
 
 J. R. Hastings, Fruit Grower, Manager and Director of the 
 Winona Growers' Limited, Winona, Ont. 
 
 F. W. Black, Chief of Utilities Department, Edmonton, for- 
 merly manager of P. Bums & Co.'s Packing Houses and chain of 
 retail stores. 
 
 G. W. Allen, a well-known business man and lawyer of Winnipeg. 
 Donald Johnson, Dominion Fruit Commissioner, Ottawa. 
 Geo. Spencer, Chief Traffic Expert of the Railway Commission, 
 
 Ottawa. 
 
 Prof. M. Gumming, representing the Maritime Provinces. 
 
 LIVE STOCK COMMITTEE 
 
 Professor G. E. Day, Ontario Agricultural College, Guelph, Ont. 
 (Chairman). 
 
 Colonel Arthur Hatch, Hamilton, Ont. 
 
 Controller R. H. Cameron, Toronto, Ont. 
 
 A. J. Hodgson, Hodgson Bros. & Rowson, Mohtreal, Que. 
 
 J. S. McLean, Harris Abattoir Co., Toronto, Ont. 
 
 Colonel R. McEwen, AUoway Lodge Stock Farm, London, Ont. 
 
 J, D. McGregor, Brandon, Man. 
 
 Richard Dowler, Billings Bridge, Ont. 
 
 H. S. Arkell, Acting Live Stock Commissioner, Department of 
 Agriculture, Ottawa. 
 
 SPECIAL COMMITTEE ON LICENSES ON CEREAL PRODUCTS 
 
 R, Harcourt, Professor of Chemistry, Oiltario Agricultural 
 College, Guelph (Chairman). 
 
 Dr. A. McGill, Chief Analyst, Department of Inland Revenue, 
 Ottawa. 
 
 P. B. Tustin, Chief of the Food and Dairy Division, Health 
 Department, Winnipeg. 
 
 W. S. Lecky, War Purchasing Commission, Ottawa. 
 
 27 
 
EDUCATIONAL ORGANIZATION. 
 
 A special staff under the direction of newspaper men was 
 organized to carry on an educational campaign for food control. 
 This work naturally divided itself into 
 
 (1) News and free publicity; 
 
 (2) Advertising and paid publicity. 
 
 The policy of the Food Controller as laid down at the beginning 
 was that paid advertising was to be used for definite specific purposes 
 only, such as to support the pledge card canvass in the different 
 provinces, or to announce the inauguration of special fish trans- 
 portation services, etc. Educational propaganda was to be issued 
 in the form of news and other information of sufficient public interest 
 to warrant editors publishing it for its own value. 
 
 The news developments of the Food Controller's office from day 
 to day and statements by the Food Controller are put into the form 
 of newspaper despatches and handed to the Ottawa Bureau of the 
 Canadian Press, from whence they are telegraphed to every daily 
 newspaper in Canada, to the number of 143. An average of half a 
 column per day of such material has been handled in this way 
 during the past six months and treated as live news. 
 
 In addition to the telegraphed despatches articles are sent to 
 the daily papers at intervals, enlarging upon the news sent by tele- 
 graph, giving details and facts about the food situation. By mail 
 weekly are also sent a series of seven daily "war menus" prepared 
 by a domestic science expert on the Food Controller's staff, to be 
 published on pages of daily newspapers edited for women readers. 
 
 For the weekly papers published in small rural communities, a 
 weekly editorial based upon the uppermost current phase of the 
 food situation, and a large number of small news paragraphs regard- 
 ing food control matters are sent out by mail to 960 English and 82 
 French papers. 
 
 In addition to these services, special articles are sent to the 
 large illustrated weeklies, and magazine sections of the dailies as 
 pubhshed in the larger cities. 
 
 About 500 small papers are customers of the "ready print" or 
 ' patent inside" service, of which there are two in Eastern and one 
 in Western Canada. A short editorial upon the food situation as 
 affecting people .in rural communities and a department consisting 
 of answers to questions pertaining to production and waste elimin- 
 ation are contributed to these pubhcations, and appear in about 500 
 weekly papers in addition to the matter such papers receive for 
 their news columns directly from this office. 
 
 _ Monthly magazine editors are suppfied with every possible 
 assistance in preparation of special articles by their own writers 
 and occasional contributions are made by members of the staff, or 
 in form of messages and statements from the Food Controller. 
 
 The Educational Department also prepares and circulates the 
 Canadian Food Bulletin. This pamphlet is issued fortnightly to a 
 maihng list comprising some 30,000 names, including legislators, 
 federal and provincial judges, clergymen, professors, crown attor- 
 neys, bank managers, Boards of Trade, pubhc libraries, school 
 ii^pectors, district representatives of Agricultural Departments, 
 officials of labor unions and secretaries of all labor union branches, 
 
 28 
 
6,000 of the leading business firms of Canada, officers of theY.M.CA., 
 branches and members of the National Council of Women, Daugh- 
 ters of the Empire, Women's Institutes, W.C.T.U., all clubs in 
 Canada, every daily, weekly and monthly newspaper and magazine 
 in Canada, Commercial Travellers' Association officers, secretaries 
 of local boards, Wholesale and Retail Merchants' Associations, 
 etc., etc., and the mayors, advocates and physicians of the Province 
 of Quebec. 
 
 The Educational Department has also circulated 1,000,000 
 food service pledge cards in the different provinces through the 
 provincial committees of the Food Controller's organization, 
 630,000 copies of the pamphlet "War Meals," 600,000 copies of 
 pamphlet, "Canning for Victory," 150,000 copies of illustrated 
 pamphlet "Eat More Fish" and 30,000 copies of a hand book for 
 speakers on the subject of food control. Practically all matter, 
 whether for the press or for publication in the form of booklets, is 
 printed in both French and English. 
 
 Copies of 50 representative daily newspapers and twenty 
 magazines are received and clipped for the Information Bureau of 
 the Food Controller's office, A summary of the printed comment 
 and criticism is prepared for the Educational Department daily 
 and circulated throughout the departments to keep the officers in 
 touch with public opinion and with developments in the food 
 situation the world over. 
 
 Printing is done by the Government Printing Bureau, and the 
 heavier mailing jobs by the Distribution Bureau. 
 
 REGULATING EATING HOUSES. 
 
 The work of the Food Controller is directed primarily to meet 
 the needs of our Allies and of our fighting men, and is carried on 
 in close co-operation with the Food Administrations of Great Britain 
 and the United States. Canada was asked to send beef, wheat 
 and bacon in the largest quantities possible. These three commo- 
 dities, which form a large part of our diet, can be more easily shipped 
 and take less space than other food products of the same food 
 value. We had not in Canada sufficient wheat, beef and bacon for 
 normal consumption and for export in the amounts required. 
 If we were to be able to export as desired, we must reduce the amount 
 consumed at home. It was estimated that for that purpose through- 
 out all of Canada wheat consumption must be reduced one-fourth 
 and meat one-third. 
 
 In order to make sure that these commodities would be forth- 
 coming in sufficient quantities, a special committee appointed to 
 study the situation, recommended regulations which were embodied 
 in an Order-in-Council, passed on August 17th, restricting the use 
 of beef and bacon to once a day on five days of the week, and re- 
 quiring that on the other two days no beef or bacon be served. This 
 was made compulsory for public eating places or for boarding houses 
 that served as many as twenty-five meals per day. It was made a 
 matter of honor for private households, but they were asked, as a 
 matter of patriotism, to go at least as far as the public eating places. 
 Since this law has been in operation, statistics show that the con- 
 sumption of bacon, beef and wheat has been greatly reduced, the 
 reduction in meat going as high as fifty per cent in many instances. 
 
 29 
 
SUGAR. 
 
 The problem of ensuring Canada's supply of sugar was com- 
 plicated by both domestic and international difficulties. Before 
 the war the United Kingdom depended upon Europe for nearly 80 
 per cent of her sugar importations, the great bulk of this being sup- 
 plied by Germany and Austria, in both of which countries the beet- 
 sugar industry had been carefully developed. Only small quantities 
 were imported from the West Indies, Java and other distant coun- 
 tries. France was approximately self-supporting as to sugar; 
 but in the first months of war, lost much of her richest sugar-pro- 
 ducing territory. The sugar production of Italy, which was much 
 smaller even than that of PVance, has fallen rapidly since she became 
 a belligerent. 
 
 Thus it comes about that Great Britain, France and Italy 
 have become almost wholly dependent upon the Cuban and West 
 Indian sugar crops. Whilst the Javan and Indian sugar crops 
 have been heavy, lack of shipping has made it impracticable to 
 render these available, the length of the voyage requiring at least 
 three times the amount of tonnage to transport sugar from these 
 countries, as compared with the shorter voyage through the West 
 Indies. Thus, while there was no actual shortage in the world- 
 supply of sugar, there was a very marked limit to the available 
 amounts of that commodity. 
 
 During the first months after the inception of Food Control in 
 Canada, the sugar situation became dangerously acute. In August 
 the British Government reduced the household sugar ration to a 
 basis of twenty-four pounds per annum per capita, as compared 
 with the pre-war consumption of about ninety-six pounds per annum 
 per capita. The French Government went even farther— it cut 
 household rations down to 13.2 pounds. Throughout August and 
 succeeding months of last year the United States Food Adminis- 
 tration in collaboration with this Ofiice made every effort to supply 
 Great Britain, France and Italy with their requirements. This 
 necessitated careful allocation of sugar in Canada, sufficient to meet 
 actual requirements. Large quantities of sugar were practically 
 appropnated, removed from the market, and shipped to Europe. 
 At the same time educative campaigns were begun in the Unitted 
 States and Canada to urge upon the population a need of cutting 
 down consumption. 
 
 As competitive buying and strong speculation threatened to 
 enhance the pnce of the Cuban crop, the United States Food Ad- 
 mmistration took immediate steps to purchase the whole Cuban 
 crop at a fair price, and so regulated sea-board prices as to be able 
 to control wholesale and retail profits. 
 
 ^r i^^*]"^u^ my personal representative in Washington and New 
 York, Mr. H. B. Thomson satisfactorily completed arrangements 
 with the United States Food Administration whereby Canada's 
 supply of sugar was assured. Principally through his efforts, 
 Canada was earned over the temporary period of shortage in the 
 nionths 9f November and December. So effective was Canadian 
 distnbution that nowhere throughout the country was there any 
 serious lack of sugar. 
 
 30 
 
THE OLEOMARGARINE INDUSTRY. 
 
 Under the recommendation of the Food Controller the manu- 
 facture of oleomargarine in Canada and its importation has been 
 authorized as a War Measiire only, and under regulations which 
 protect the dairy interests from unfair competition and fraudulent 
 practices. This action was taken because the high cost of butter 
 and the demand for it overseas were making it impossible for many 
 people to purchase fats in the quantities which were needed in their 
 diet. 
 
 One result of the importation of margarine and its use being 
 permitted in Canada, a new industry has been started and oleo- 
 margarine is now being manufactured in the country. For this 
 purpose some of the important ingredients have to be imported 
 from the United States. 
 
 WHEAT AND MILLING. 
 
 The initial difficulties in regulating wheat andjmilling were 
 very great. These involved the amount of wheat and flour re- 
 quired for export overseas; also international relations with the 
 United States; also elevator charges and conditions of storing; the 
 shortage of transportation facilities, and other things. At the 
 outset the buyers for the British Government bought so freely and 
 at such high prices that dealers contracted for so much grain for 
 future delivery that they were unable to fill their orders. This 
 caused the soaring in the prices of wheat, which took place for a 
 period. The reason for this condition of things was that the British 
 buyers did not come out of cover, and were dealing with a number 
 of brokers, each bidding against the other, and speculating on their 
 own account. The brokers themselves became entangled in the 
 operations, with the final result that the British buyers agreed to 
 having their options cancelled. The cancellations eased up the 
 difficulties of the millers who were paying the premium between the 
 option and the cash purchase price. 
 
 Immediately after this wheat flurry was ended the bujang for 
 export was concentrated in the hands of the Wheat Export Com- 
 pany. With the problem was also related the fact that large 
 amounts of grain were being exported to American dealers and mills, 
 in addition to what was sold to British buyers and this complicated 
 the situation very much. The remedy was effected by making the 
 Wheat Export Company the sole medium of export, so, as before 
 stated, concentrating the purchasing power in one hand. The 
 result was the reduction in the price of wheat, flour, com, feed, etc. 
 
 In August of last year a maximum price of $2.21 per bushel of 
 wheat was fixed at Fort William and Port Arthur which ensures an 
 average price of $2 a bushel to the farmer, taking rates of freight 
 into consideration. This was an arrangement effected as between 
 the Wheat Export Company and the Board of Grain Supervisors. 
 
 Flour was reduced as a consequence about $5 a barrel,_ with an 
 ultimate corresponding reduction in the price of bread, which came 
 down from 11 cents to 7-8 cents per 1-lb. loaf. 
 
 31 
 
The next step in the process of regulation of wheat and miUmg 
 was the fixing of the profits on flour, and that involved the consid- 
 eration of the price of mill feeds. The flour content pi a bushel of 
 wheat determines the price of flour, and whatever pnce is faxed tor 
 flour or feed fixes the price of the other. The price of bran was 
 fixed at $24.50, and that of shorts at $29.50, at Fort William and 
 Port Arthur. The profit on the remaining content of flour was 
 fixed at a maximum of 25 cents a barrel. Although bakers have 
 complained that under the new arrangement they are discriminated 
 against to the extent of 25c to 40c a barrel as compared with former- 
 ly they have no grounds of complaint. What has happened is 
 that all buyers of flour are placed on the same basis. Formeriy the 
 bakers bought their year's supply in the autumn, when prices were 
 most favorable, whereas the retailer bought his supply from time 
 to time, often when the market was at its highest. Now the price 
 is uniform to everyone throughout the year. 
 
 The elevator, too, was involved in the problem. When the 
 price of wheat was fixed in the fall of the year, after which the 
 elevator had necessarily to carry it over, there was the question of 
 insurance to be settled, which was done by an extra allowance of 
 cost. There was also the considerable item of screenings, which 
 the elevator men used to ship to the United States for feed purposes. 
 Feed being an important factor in Canada, the export of screenings 
 was prohibited. 
 
 The fixing of the price of wheat and the solution of the whole 
 problem of wheat, flour and feed and bread required a good many 
 steps and included transportation charges, elevator charges, insur- 
 ance and other overhead charges, the several reductions of mill 
 feed from the entire cost of milling to arrive at the cost of flour 
 upon which a profit could be based, and a reasonable maximum 
 price to insure the stimulation of production on the part of the 
 farmer. All these things were finally arranged after much nego- 
 tiation and numerous conferences in a manner which seems to be 
 quite fair to all concerned, and although there are substantial 
 differences between the grain and milling situation in Canada and 
 the United States, the principle of control is the same in both coun- 
 tries. 
 
 The final step in wheat and milling was the adoption of a 
 standard flour and although the matter is finally under considera- 
 tion at the date of this report, the members of the Committee in 
 whose hands it is, have not yet submitted their recommendations. 
 
 (Note. — A standard flour has been adopted as the result of the report of the Committee in 
 question. It consists of a 74 per cent extraction of a total flour content of wheat in which the wheat 
 shall not exceed 265 lbs. of hard or spring wheat per 196 pounds of flour and shall not exceed 275 
 pounds of soft or winter wheat per 196 pounds of flour, the l3a1ance being made up of bran and 
 shorts. This literally means that the best of the feed flour or Bed Dog is now ground finer and put 
 into flour, and the remaining quantity is put into shorts, thereby improving the feeding quality of 
 the shorts, and also improving the nutritive quality of the flour for human consumption. Here- 
 tofore in Canada, as in the United States, there were a great many types of flour mills, each manu- 
 facturing its own standard brand with a variety of processes, and each milling company claiming 
 certain exclusive merits for their brands. These brands were extensively advertised and the sale 
 pushed by travellers. There is now only one standard of bread made from one standard of flour, 
 and we have really got back to the standard of the old-fashioned grist mill. 
 
 32 
 
MILK. 
 
 The high price of milk is one of the problems of food control, 
 and there are several factors affecting it. The tremendous demand 
 for cheese for the supply of troops on all the fronts has proportion- 
 ately increased the demand for milk. This affects the price of 
 butter, inasmuch as it takes twice as much milk to make one pound 
 of butter as one pound of cheese. By agreement, the price of cheese 
 has been fixed at 21| cents per pound as the lowest minimum for 
 profit, consequently the wholesale price of butter becomes auto- 
 matically 43 cents per pound. Another factor affecting the price 
 of milk has been the high prices offered by the milk condensing 
 plants in Canada and the United States in order to suppply the 
 foreign demand. Still another factor in the cost of milk is that of 
 delivery. 
 
 The Milk Committee appointed by the Food Controller has 
 carefully studied the cost of production of milk and questions in 
 connection with the supply and prices of milk in urban munici- 
 palities. Their report offers a plan which if adopted would, it is 
 estimated,_ effect a saving of more than $1,500,000 in the cost of 
 milk distribution in seventeen of the principal cities of Canada. 
 
 FRUITS AND VEGETABLES. 
 
 A Committee of representative men to deal with fruit and 
 vegetables was appointed in August. The first question which 
 arose was the fixing of a price which the fruit and vegetable grower 
 should be compelled to accept for his products, the item of more 
 immediate consideration being apples. The situation in regard to 
 that was created by the fact that the British Government had 
 placed an embargo on the import of apples. The question was 
 how to deal with the surplus in Nova Scotia which usually had its 
 outlet in the Old Country. 
 
 Of all the matters to be dealt with by the Food Controller those 
 of fruit and vegetables present the greatest difficulties. The diffi- 
 culties must be obvious and arise from the perishable nature of the 
 products and the multitude and wide range of producers, with few 
 exceptions producers on a small scale. 
 
 The Committee, after long and careful deliberation and inves- 
 tigation decided that it would be impossible to fix prices in the way 
 that the public seemed to demand. The evidence furnished, and 
 statements of a number of leading dealers from Montreal, Toronto, 
 Ottawa and the western part of Canada, made it clear that the 
 legitimate wholesaler had been doing business on a surprisingly 
 narrow margin. The solution of the problem was the registration 
 and licensing of dealers, the practical effect of which is that the 
 dealer is under the eye of the Food Controller. 
 
 Owing to the embargo on the export of apples to Great Britain, 
 and the shortage of the Ontario crop, the Food Controller, acting 
 through the Fruit and Vegetable Committee, after careful inves- 
 tigation of the apple situation in Nova Scotia, arranged to supply 
 a traffic officer to assist in the movement of the Nova Scotia crop 
 
 33 
 
to points in Ontario and Western Canada. This action has proved 
 to be of very great service in facilitating the movement, a,nd has 
 made it possible for the crop to be marketed much more freely than 
 would otherwise have been possible. 
 
 MEAT PRODUCTS. 
 
 Prior to the outbreak of the war there were practically no 
 shipments to Great Britain in dead meats. In pork, which in the 
 main meant bacon, the high-water mark was in the year 1903, with 
 a total export somewhere over 137,000,000 lbs. Since then the 
 export was in diminishing quantities until 1913, in which year it 
 had fallen to 2,766,000 lbs. Great Britain m the meantime was 
 drawing supphes from other countries in which the price was 
 cheaper, geography being also a factor. Not only were Denmark, 
 Holland and Russia nearer and cheaper markets in which to buy, 
 but they manufactured a milder kind of bacon which the English- 
 man preferred to ours. At the beginning of the war Russia was 
 cut off completely in the Baltic Sea. The Scandinavian countries 
 continued to ship, but Germany made heavy bids. Great Britain 
 tried to bargain, but Germany offered more than Great Britain was 
 prepared to pay. The situation was greatly accentuated after the 
 unrestricted submarine campaign was set in motion, and then 
 Great Britain had to turn her attention exclusively to Canada and 
 the United States. She had in the past drawn largely from the 
 United States, but as in Canada, trade gradually diminished until 
 the war started. For the years 1915, 1916 and 1917 Canada's net 
 exports of bacon were 108,022,082 lbs., 106,212,378 lbs. and 
 130,304,947 lbs., respectively. 
 
 Similar conditions existed in respect of beef, with the exception 
 that England drew mainly from South America and Australasia. 
 Canada's net exports in beef, which in 1901 were 8,163,000 lbs., 
 sank to below the zero point. For ten years her exports of beef to 
 Great Britain were practically nil. For the first year of the war. 
 Great Britain continued to draw from old sources, but later the 
 submarine warfare and shortage of shipping placed her dependence 
 almost altogether on North America. As a consequence our net 
 exports of beef were 17,044,321 lbs., 38,079,288 lbs., and 33,918,894 
 lbs. for the years 1915, 1916 and 1917 respectively. The United 
 States in its exports of beef increased proportionately. 
 
 The bujang is done through the British Purchasing Committee, 
 whose headquarters are in New York. For the first two years of 
 the war Canadian dealers consigned direct to Great Britain, but 
 since supplies are purchased by the Committee as, and delivered, at 
 seaboard. The ships are supplied by the purchasing committee 
 and shipments are made through Canadian or United States ports 
 as shipping is most available at the time. 
 
 There has been no price-fixing in meats for export, and, neces- 
 sarily, the export price governs the price for home consumption. 
 It is a question of making a bargain and the Purchasing Committee 
 fix prices by negotiation both in Canada and the United States. 
 There are no definite figures of production available upon which to 
 
 34 
 
base estimates for this year, but the dealers state that the prospects 
 for increased production, especially in hogs, but both in hogs and cattle, 
 are good in Canada. High prices are the great incentives to produc- 
 tion and any attempt to regulate them arbitrarily would be destruc- 
 tive of desired results. Excess profits can be, and are being, com- 
 mandeered by the nation, so far as the dealer is concerned, and so 
 far as the producer is concerned the price regulates the extent of 
 his production within the limits of the possible. 
 
 FISH. 
 
 (Owing to the importance of the fish question and the great difficulties encountered in arriving 
 at a solution of all the various problems involved, from the Atlantic to the Pacific, I have had this- 
 memorandum written at unusual length in order that the subject might be more fully under- 
 stood.— W. J. H.) 
 
 Since fish food is by far the most important available substitute 
 for beef and bacon, the greater production of fish is a prerequisite 
 to the maximum export of beef and bacon. The supplies of mutton, 
 veal, poultry, eggs, etc., are limited. The limit of fish production 
 has not been even approximately reached. 
 
 Though endowed with magnificent fishery resources Canada is 
 far behind other nations in the development of her fisheries. Out 
 of a population of 8,000,000 people, only 95,000 are engaged in the 
 fishing industry. Nor are all of these constantly employed; with 
 many of them fishing is but a desultory and seasonal occupation. 
 
 The salmon fisheries of the Pacific, the fisheries of the Great 
 Lakes, those of the Gulf of St. Lawrence, and the cod fisheries of 
 the Atlantic Banks, are operative only during the summer months. 
 Those of the northern lakes of the prairie provinces are conducted 
 only during the winter, as snow is essential to the transportation of 
 the catch to the nearest railway line. 
 
 The methods employed, notably on the Atlantic shore and 
 off-shore banks, are crude and primitive. Lack of adequate trans- 
 portation facilities to points adjacent to prolific fishing grounds 
 militates against supplying the Canadian market regularly with 
 fresh fish. Fish caught in these remote areas must be preserved by 
 means of salt, and the product reaches the market as dried, salted, 
 or pickled fish. Of these the Canadian consumer takes but a small 
 proportion, the bulk being exported to Europe, the West Indies, 
 and South America. Roughly, 120,000,000 pounds of such fish find 
 a market abroad. Salmon and lobsters caught in the areas distant 
 from railways have to be canned. Though a great proportion of 
 the world's supply of canned salmon and lobsters is produced in 
 Canada, the waste is tremendous. 
 
 The supply of fresh fish from the Atlantic and the Pacific must 
 come through the ports served by adequate transportation facilities. 
 As the greatest consuming market is included in the area between 
 Quebec City and Winnipeg, with long stretches of sparsely-settled 
 territory between, the rail hauls of from 800 to 2,000 miles add to 
 the difficulties of marketing sea-fish in a fresh condition. Express 
 service has had to be used to the maximum in order to get fish to 
 the consumer in prime condition. As heat is maintained in express 
 
 35 
 
cars for at least seven months in the year, fish packed in ice suffers 
 considerable deterioration in transit. Freight service in winter is 
 used to a considerable extent; but transit by this means is slow, 
 and sudden thaws cause losses and deterioration. 
 
 Though Canada is a large fish producing country, previous to 
 July, 1917, it never featured as a large consumer. The Canadian 
 public has been apathetic with regard to fish as a food. The retail 
 trade remains even today, largely in the hands of butchers and 
 ■grocers who carry fish as a side-line. The care of fish in most of 
 the retail stores has received but scant attention, and the public 
 has been repelled by the unsanitary methods of handling and dis- 
 playing. For this and other reasons the ready market and good 
 prices offered in the United States draw the bulk of our fresh fish. 
 
 Scattered over an area 4,000 miles wide, Canada's fish industry 
 represents a huge unorganized activity where striking variations 
 are met with in every 10° of longitude traversed. No particular 
 fishery is conducted along lines similar to others. Conditions and 
 methods vary in almost every instance. The only efforts made to 
 standardize and organize the industry are attributable to the 
 Canadian Fisheries Association, which was formed in the year 1915. 
 
 When the Fish Committee of the Food Controller's Office was 
 appointed, it was entrusted with the task of increasing fish con- 
 sumption throughout the Dominion. The members took office in 
 July, 1917, and set to work to acquaint themselves with existing 
 conditions. 
 
 The first condition requiring remedy was the notable lack of 
 transportation facilities in marketing Atlantic fish. The Committee, 
 after many negotiations, was successful in having a fast freight 
 train placed in service on the Canadian Government Railways. 
 This started from Mulgrave, N.S., picking up fish there from 
 Canso, Hawkesbury and Cape Breton points, and collecting further 
 shipments at Truro, N.S. The train, known as the Sea Food Special, 
 runs whenever shipments can be collected, making the trip from 
 Mulgrave to Montreal in forty-eight hours. Shipments for Ontario 
 points are carried to Toronto and there distributed. 
 
 The problem of better retail handling was next taken up. It 
 was found that the lack of proper refrigeration and display kept 
 the public from buying more fish. The Fish Committee experi- 
 mented with the Fish Display Case designed by the Marine and 
 Fisheries Department, and decided to supply these pases to butchers 
 and the smaller retailers of fish at half the cost— the Government 
 bearing the other half— ten dollars. In this way 300 cases were 
 distributed to butchers and fish dealers throughout the cities and 
 towns east of Winnipeg. 
 
 Ignorance of the proper methods of preparation and cooking 
 on the part of the housewife constituted another problem. The 
 Fish Committee, therefore, compiled a Cook Book containing simple 
 recipes and advocating the introduction of fish not commonly used, 
 but in themselves most desirable and easily obtainable. 100,000 
 copies of this book in English, and 50,000 in French, were printed 
 and distributed throughout Canada. 
 
 36 
 
A comprehensive advertising campaign throughout the Province 
 of Quebec so stimulated the use of fish as very materially to increase 
 the per capita consumption. The Union of Canadian Munici- 
 palities gave the Fish Committee very material assistance in every 
 province. The result has been a very widespread movement in the 
 substitution of fish for beef and bacon. 
 
 In the course of further work the Fish Committee arranged 
 conferences of both Canadian and United States lake Fish dealers. 
 After sifting down the evidence it was decided to fix the maximum 
 scale of prices to be paid the fisherman at various lakes for the 
 different species of fish and also to fix the profits of wholesale hand- 
 lers. Under the scale fixed the Canadian market is to receive prim- 
 ary consideration, and the highest priced fish — whitefish and trout 
 — cannot be retailed for more than 16c per pound. Previously 
 these fish retailed at from 18c to 22c per pound. 
 
 This particular problem involved a large amount of work. 
 It called for expert technical knowledge of the fisheries, and deter- 
 mination of the costs of operations, of transportation charges, of 
 railway shipping charges, and of freight charges from shipping point 
 to markets, and a fair graduation of prices to the fisherman on the 
 various scattered lakes, in order to avoid discrimination. In this 
 work the Committee secixred the co-operation of the United States 
 Food Administration. 
 
 To enforce the regulations made, and to provide for the prompt 
 punishment of infractions, it became necessary to deal with the 
 licensing of all wholesale handlers of fish. Such a system, therefore, 
 was established. By this means it is practicable to regulate exports, 
 maintain supplies for the whole market, control profits, prevent 
 hoarding and waste, discourage speculators, and to administer the 
 industry sanely and efficiently. 
 
 Orders in Council were passed requiring all wholesale dealers 
 in fish to register and secure licenses. They were required, amongst 
 other things, to submit monthly sworn statements of the quantities 
 of fish bought and sold and on hand, and the price, high and low, 
 of each particular species. 
 
 To defray the expenses of the License Bureau, a nominal fee 
 is charged— $10 for every $100,000 of sales up to and aggregating 
 $500,000, and $5 for each $100,000 over that amount. A fee of 
 $5 is charged for each branch of all wholesale houses. The fees 
 were fixed at a low figure in order that the industry should not be 
 penalized. Since the license regulations went into effect on January 
 first, 1918, the wholesalers have cheerfully conformed to the regu- 
 lations. Under the regulations the license number must be stamped 
 on every box or barrel of fish shipped; and exports by non-licensed 
 dealers can be stopped by the customs authorities at any time. 
 
 The Fish Committee of the Food Controller's Office has been 
 able in many ways constructively to assist the fishing industry. 
 For instance, in the month of September, 1917, an unforeseen 
 shortage of gasoline threatened to tie-up the shore fishery of the 
 Maritime Provinces. Through the efforts of the Committee, a 
 trainload of gasoline tank cars was rushed to the coast and a serious 
 
 37 
 
stoppage was averted. Similar action was taken in the case of a 
 shortage of gasoline at Prince Rupert, B.C. Both of these instances 
 might have meant a serious diminution of the fish supply. 
 
 The Committee was also instrumental, with the aid of the 
 Deputy Minister of Naval Service, in securing the release of the 
 steam trawler "Baleine" from Admiralty Service for service in the 
 Atlantic coast fisheries. The addition of this trawler to the Cana- 
 dian Fishing Fleet means an increase of some 300,000 pounds of 
 fish monthly. 
 
 Fishing restrictions have been raised, and the limit of time 
 and catch extended, in the lakes of British Columbia, Alberta, 
 Saskatchewan and Manitoba, through'jthe representations of the 
 Committee to the Department of Marine and Fisheries. Hundreds 
 of enquirers have been put in touch with supplies of fish, many 
 retailers have been started in business, and others have been 
 induced to enlarge existing businesses, through the activities of the 
 Committee. 
 
 Transportation of fish has been greatly facilitated and any 
 condition tending to hinder the movement or production of fish has 
 been promptly corrected. 
 
 The Committee succeeded in securing prompt supplies of coal 
 for large fish plants in Nova Scotia which otherwise would have had 
 to close down, and a complete suspension of fishing operations was 
 prevented. Coal was also procured to bunker a Canadian steam 
 trawler, which, otherwise would have been idle for a considerable 
 period. 
 
 The Fish Committee is in constant touch with every phase of 
 the industry. Shortage of bait for the fishermen has been relieved; 
 coal, gasoline, gear, salt, and other necessary supplies for the fisher- 
 men have been procured. Transportation facilities and larger 
 home markets have been developed — ^primarily, to release beef and 
 bacon for export overseas, or, secondarily, with the object of erecting 
 the Canadian Fishing Industry into a strong organic entity. 
 
 The following figures, received from a few of the wholesale and 
 retail Canadian fishimerchants testify to the effectiveness of the 
 Committee's work: 
 
 No. 1 — Eetail Stores. 
 
 October, November, December, 1916, Fish Sales $ 17,720.00 
 
 October, November, December, 1917, Fish Sales 21,040.00 
 
 No. 2. 
 
 October, November, December, 1916, Lake Fish Sales 32,047 lbs. 
 October, November, December, 1917, Lake Fish Sales 74,898 " 
 October, November, December, 1916, Sea Fish Sales 107,139 " 
 October, November, December, 1917, Sea Fish Sales 155,310 « 
 
 No. 3. 
 
 October, November, December, 1916, baddies and 
 
 „ , J?™S 25,338 lbs. 
 
 October, November, December, 1917, baddies and 
 
 herring 38,182 « 
 
 38 
 
No. 4. — Wholesalers. 
 
 October, November, December, 1916, Fish Sales. . . . 119,812 lbs. 
 October, November, December, 1917, Fish Sales 135,537 " 
 
 No. 5. — Wholesalers. 
 
 October, November, December, 1916, Fish Sales 935,714 lbs. 
 
 October, November, December, 1917, Fish Sales 1,207,145 " 
 
 No. 6. — Wholesalers, 
 
 1916 1917 
 
 lbs. lbs. 
 
 July to Dec, Fish Sales, Quebec 588,473 932,688 
 
 July to Dec, Fish Sales, Ontario 218,070 788,557 
 
 July to Dec, Fish Sales, Manitoba, Saskatche- 
 wan, Alberta and British Columbia 306,135 505,955 
 
 Total, Fish Sales 1,112,678 2,227,200 
 
 No. 7. — Wholesalers. ' 
 
 July to December, 1916, Fish Sales 4,865,997 lbs. 
 
 July to December, 1917, Fish Sales 8,972,642 " 
 
 A Toronto wholesaler states that the increase is 80 per cent. 
 
 In conclusion, reference to a matter vitally affecting the fishing 
 industry as a whole must not be omitted. 
 
 The effect of special political interests, local and otherwise, has 
 been most disastrous. A sweeping revision of existing laws, both 
 restriction and permission, is patently necessary. 
 
 An entirely new survey should be made of Canada's fishery 
 resources, and regulations framed to encourage the maximum of 
 production and development with due regard to necessary conserva- 
 tion, to arrest depletion. The present laws are in many cases 
 inadequate and should be entirely revised. 
 
 1. The lobster fisheries will be utterly exhausted in from 10 to 
 15 years unless the ever-relaxing regulations be replaced by strin- 
 gent measures of conservation. All lobster fisheries and all export 
 trade in lobsters should either be restricted to the large (9 inches 
 and over) crustaceans, or better, prohibited entirely for a given 
 period, and the fishermen turned to other productive fisheries. 
 
 2. If the restrictions that now prevent the seining of pollock 
 were removed wholly or in part, the annual catch of Atlantic fish 
 would be largely auginented. 
 
 Particular attention should be paid to the herring fisheries of 
 both the Pacific and Atlantic. The curing and packing of herring 
 in Canada should be brought to a high standard in order that 
 Canadian herring may compete equally with the high class herring 
 of Great Britain and Scandinavia in the world's markets. 
 
 Technical education for our fishermen is a crying necessity. 
 Though exploiting a fishery unrivalled for variety of edible species 
 and inexhaustible supply, our fishermen are extremely deficient in 
 training absolutely essential to the successful prosecution of their 
 calling and far behind the fishermen of Great Britain, Scandinavia 
 and Japan. 
 
 39 
 
utilization of fish waste should receive immediate attention. 
 Fertilizers, cattle and poultry feed, oils of various kinds, can be 
 manufactured from the unmarketable fish and fish offal at present 
 thrown away to the extent of thousands of tons annually. 
 
 Localities adjacent to prolific fishing grounds should be 
 equipped with material necessary for the encouragement of local 
 fisheries. Break-waters and harbours should be provided for 
 fishing craft, with aids ■ to navigation to assist their ingress and 
 egress; bait freezers and small cold storages erected under subsidy; 
 tanks to take care of fish offal. 
 
 Instances could be multiplied. It must suffice to state that 
 not only are there numerous abuses to be corrected, but there is a 
 crying need of constructive regulation. 
 
 Particular attention is called to the conditions which exist on 
 the Pacific Coast. Both demand serious international considera- 
 tion and regulation. 
 
 In the Eraser river, in respect of the salmon which find it their 
 natural home-coming fresh water, the loss represented last year 
 was from six to eight million dollars in fish intercepted by American 
 fishermen, creating a situation which means early abandonment of 
 that river by both Canadian and American fishermen, or an inter- 
 national agreement for a period of entire cessation of fishing and 
 uniform regulation of fishing operations thereafter. This is im- 
 perative. 
 
 In the north, as reference to the reports of Mr. J. P. Babcock, 
 the Deputy Commissioner of Fisheries for British Columbia and 
 the acknowledged chief authority on the fishery industry on the 
 Pacific Coast, will show, the depletion of the halibut beds has 
 proceeded to an extent which means extinction of the indusfa-y. 
 If conjoint efforts are not taken to conserve the halibut this impor- 
 tant food fish will soon disappear from the market. The problem 
 must be dealt with internationally in regard to a large area in the 
 waters contiguous to the northern British Columbia Coast and 
 Alaska. 
 
 TIN PLATE AND SHEETS. 
 
 The embargo placed on the export of pig tin by the British 
 Government created an extraordinarily difficult situation. As 
 neither plates nor sheets are manufactured in Canada, our supplies 
 are drawn from the United States. The United States manufac- 
 turers, in turn, depend upon Great Britain for the necessary metallic 
 tin — block and pig. 
 
 The shortage to "tinned" plates and sheets became so serious 
 during the autumn of last year as to threaten the curtailment of 
 the dairying, cheesemaking, and food-canning industries for the. 
 obvious reason that these are wholly dependent upon regular sup- 
 plies of tinned containers and vat-plates. 
 
 A searching inquiry into stocks on hand, present and future 
 requirements and the possibility of using substitutes, was promptly 
 instituted by the Food Controller. 
 
 The questionnaires were sent out to the trade, to munitions 
 manufacturers, and to all users of either plate or sheets. At the 
 same time steps were taken to discourage the use of tin plates for 
 
 40 
 
purposes (such as advertising signs, etc.) for which other material 
 could be utilized. 
 
 When the situation was well in hand, the investigation was 
 turned over to the Department of Trade and Commerce under 
 whose auspices it is being completed. 
 
 During the course of the investigation strong representations 
 were made to the British Government, through Lord Northcliffe 
 and the AUied Purchasing Commission, advocating the shipment 
 of pork and beans (now used in shipped quantities to our Armies) 
 in bulk, with the object of saving cans and crates and conserving 
 50 per cent of the ocean freight space necessary for the carrying of 
 canned goods. 
 
 Whilst action in this matter has been delayed, it is probable 
 that the British Government will adopt the Food Controller's 
 recommendation within a short time. 
 
 Meanwhile the search for a substitute for tin plate has met with 
 considerable success. It is expected that, due to the Food Con- 
 troller's suggestions, special non-metallic food-containers, will take 
 the place of a very large quantity of tin-plate. Samples submitted 
 have satisfactorily withstood every necessary test. When it is 
 remembered that ,75 per cent is used for food-containers, the 
 possibilities are apparent. 
 
 The stoppage of the tinning of cooked pork and beans would 
 not only release large quantities of tin plate, but would also effect 
 a very considerable saving of precious ocean freight space. Were 
 dried beans and salt pork shipped in bulk, the space saving would 
 exceed 70 per cent of that used at present for the tinned goods. There 
 is no known reason why the beans and pork could not be cooked in 
 Great Britain or in France. If, for military reasons, it be necessary 
 to can a certain amount, there is much to be gained by canning as 
 close to the points of consumption as practicable. 
 
 As the result of the investigation, the following steps were 
 recommended: 
 
 1. Licensing all canners. 
 
 2. Closely investigating the whole tin plate trade. 
 
 3. Officially investigating certain substitutes and enforcing the 
 use of such as prove acceptable. 
 
 4. Controlling and preventing excessive wastage of tin con- 
 tainers for dairy purposes. 
 
 5. Determining exact current requirements of dairy and allied 
 industries. 
 
 6. Close collaboration with the Department of Trade and 
 Commerce, and the Department of Agriculture. 
 
 7. Restriction of range of sizes of cans used. (This implies the 
 present suppression of many small decorative tin containers, 
 and the standardization of the net weights of contents.) 
 
 8. Suppression of use of tin plate as a container for tobacco, 
 candy, talcum, spices and other dry; groceries, proprietary 
 articles, etc., etc. 
 
 9. The substitution of lighter gauges for heavier wherever 
 possible. 
 
 41 
 
CONTINENTAL CO-OPERATION IN EXPORTS. 
 
 One of the most important matters in connection with food 
 control was the co-operation between the United States and Canada 
 in the matter of exports, and a perfect understanding has been 
 arrived at between the Food Controllers of the two countries. The 
 United States in order to exert their full force, both in a military 
 and commercial way as far as the war is concerned, and also to 
 place themselves in the position of controlling all exports from the 
 country to supply the Allies' armies and their civilian population in 
 Europe, established an export license system whereby every ton of 
 foodstuffs leaving the United States could only do so on obtaining 
 a license, and then only to specified destinations. 
 
 Mr. W. E. Ireland of Toronto, loaned to the Food Controller 
 by the T. Eaton Company, Limited, who has done important work 
 on the Fish Committee, and in special missions to Washington, the 
 Maritime Provinces and elsewhere, organized the Bureau of Licenses, 
 and is in charge of that work incidentally. 
 
 The sudden action of the United States Food Administration of 
 placing an embargo on the exportation of foodstuffs, oils, etc., to 
 Canada, brought about the need of similar action on the part of 
 Canada to co-ordinate all efforts in the desire to make the North 
 American continent commercially water-tight. The organization 
 of the staff and machinery for carrying out the embargo and licens- 
 ing department had to be arranged over the week-end November 
 17th and ready for business on the 19th — which was accomplished 
 —and from then on to the present time applications from export and 
 import shippers from Halifax to Vancouver have been received by 
 mail and wire on a large scale. Many difficulties were encountered 
 but the securing of a large staff experienced in traffic, customs and 
 export matters, made it possible to avoid a congestion of trade. 
 
 The embargo came into effect just prior to the close of navi- 
 gation which made quick action necessary to prevent steamers 
 being held at the head of the lakes and elsewhere, and the direct 
 telegraphic service in the office made this possible and prevented 
 delays so far as known, as no complaints were received. The great 
 desire was to keep foodstuffs moving, and prevent congestion with 
 the railways, until such times as the licensing system would be 
 working smoothly, and the shipping public full understood the 
 requirements. 
 
 The hearty co-operation of the Commissioner of Customs and 
 his staff, with the License Department, was given continuously, 
 and, in fact, part of the Customs staff was loaned to us, to assist in 
 the carrying out of this work. 
 
 Visits were made to Washington in order to work out a joint 
 policy on certain foodstuffs to United States and foreign countries, 
 and also to place before the Export License Department of the War 
 Trade Board certain immediate Canadian needs from the United 
 States. 
 
 New York was also visited, consultations being had with the 
 Bntish Ministry of Shipping, the Wheat Export Company, the 
 United States Food Administration, the Grain Commission and the 
 Milling Division. 
 
 42 
 
PRODUCE AND COLD STORAGE. 
 
 Perhaps no subject coming within the realm of food control is 
 more misunderstood in the public mind than that of the produce 
 business, which in its several ramifications includes cold storage. 
 There has grown up an impression that the middleman in food 
 products is unnecessary and involving an overhead charge which 
 should be eliminated. Another impression that has gained currency 
 is that the cold storage facilities in addition to their legitimate 
 functions are and have been used for the purpose of hoarding food 
 products for speculation to the detriment of the public interest. 
 
 In regard to the whole subject there are two fundamental facts 
 to be considered. 
 
 First, the producer cannot take his produce direct from the farm 
 to the dealer. 
 
 Second, the middleman, storage and retailers must be provided 
 to supply that service. 
 
 Up to the present, no intermediary agency has been devised to 
 take the place of the system which in its essential principles has 
 been in existence for all historic time. So far as the office of Food 
 Control is concerned whatever matters of alleged abuse in specula- 
 tive hoarding and of cold storage were complained of, they related 
 to a time previous to the appointment of the Food Controller and 
 are not necessary to be referred to here, nor have they ever come 
 officially within his knowledge. They are matters, however, 
 which now come within the sphere of his control under the new order 
 of things and have received careful consideration. It did not 
 appear from the reports of the Commissioner of the High Cost of 
 Living that there were either injurious or illegal practices. In the 
 conclusions of his published report he says: "I find that the opera- 
 tions of cold storage companies generally have been fairly conducted. 
 There has been no illegal combination or any excessive accumula- 
 tion on the part of any company," and nothing in the details of the 
 report would suggest any other situation. 
 
 In order that there should be no grounds for the complaints 
 that were echoed in the press and otherwise publicly, as soon as 
 the food situation could be fully covered a committee was appointed 
 to consider the regulations in which should be framed to govern the 
 produce trade generally, and it is anticipated that very shortly 
 these will be promulgated. 
 
 It is desirable to make a few observations on cold storage 
 commodities, which are in the class of what is known as "perish- 
 able." These are eggs, butter, cheese, poultry, fresh meats, fish-^ 
 fish, though in altogether separate storage by fish dealers — and, to 
 a limited extent, fruits and vegetables. 
 
 It is necessary that perishable products should be taken as 
 quickly as possible from the point of production to where they may 
 be preserved in their best possible condition, and what the public 
 does not fully realize is that certain articles of common consumption, 
 such as butter and eggs, have their principal production during a 
 very short season of the year, whereas their consumption continues 
 in fairly uniform quantities throughout the year. If it were not for 
 
 43 
 
the cold storage facilities there would be seasons of feast and famine 
 each year, with plentiful supplies and low prices for a time and few 
 supplies for the rest of the time at abnormal prices. 
 
 And in this connection another fact must be borne in mind. 
 The whole method and process of cold storage in themselyes must 
 considerably increase the price to the consumer over original cost 
 of collection. There are the original cost of collecting, freight rates 
 to the storing centres, the overhead charges of storage and again the 
 costs of distribution to the consumer. There are conditions of 
 scarcity of supply, of weather, of congestion or lack of transportation 
 and so on which are also additional factors of cost. 
 
 The object of cold storage is to maintain a uniform supply on 
 the market, and it is a mistake to suppose that dealers carry over 
 stocks from one season to another or allow commodities to spoil in 
 order to keep up prices. It would be the poorest kind of business, 
 and, as a matter of fact, every cold storage man endeavors to clean 
 up his old stock before the new season opens. Any profit that 
 could be expected by holding over would be more than compensated 
 by loss in quality of goods. In fact, old stocks cannot be sold in 
 competition with new stocks, except at much lower prices. Un- 
 doubtedly there have been abuses and excessive profits at times 
 when special conditions favored, but they are the exceptions rather 
 than the rule and under proper regulations these cannot very well 
 recur. 
 
 UTILIZATION OF GARBAGE. 
 
 The matter of the utilization of garbage has been seriously 
 considered and initial steps toward investigation were taken. Not 
 much has been done in Canada in a systematic way, but enough has 
 been done in the United States to demonstrate the great value of 
 the products which may successfully and profitably be salved in 
 the larger cities. It is a matter which has been having the attention 
 of the United States Food Administration and twenty-nine cities in 
 the United States having a total population of 17,000,000, pro- 
 ducing 1,200,000 tons of garbage per annum now dispose of their 
 garbage by reduction. As a concrete result of the operation of 
 these 29 plants, there are produced annually, 70,000,000 lbs. of 
 grease valued at $8,500,000 and 150,000 tons of fertilizer tankage 
 valued at $2,400,000. Expressed in results, the available use of 
 garbage, directly and indirectly, are: Feed for hogs; fertilizer, in 
 nitrogen, phosphate of lime and potash; fat, in glycerine for nitro- 
 glycerine and the manufacture of soap. 
 
 As, however, reduction works in an economical way are only 
 practicable in cities of 75,000 of a population and over, a campaign 
 of education is necessary toward allowing as little as possible of 
 food products going into the garbage tins to be consumed in incin- 
 erators or dumped into the sea or elsewhere and lost. The waste of 
 our methods, in respect of garbage, has been emphasized in the 
 literature issued from the Food Controller's office and in the 
 addresses of speakers. In any event, however, useful reduction 
 works and other methods of salving garbage may be, no food should 
 be put into the garbage tin, even in the well-grounded hope that 
 it may be recovered in some other useful form. 
 
 44 
 
WHOLESALE GROCERS. 
 
 One of the most radically constructive steps to be taken by the 
 Food Controller is the licensing of all wholesale grocers. Before 
 this could be accomplished, an exhaustive report on the situation was 
 necessary. A representation Committee was therefore selected — 
 this consisted of six prominent wholesale grocers, with whom were 
 associated Mr. P. B. Tustin, Chief of the Food and Dairy Depart- 
 ment, Winnipeg, who acted as Chairman; and Mr. E, M. Trowem, 
 Secretary, Dominion Board of Retail Merchants' Asspciation of 
 Canada. 
 
 The report drawn up by the Committee embodies not only a 
 review of the present trade situation in Canada, but a series of 
 general and specific recommendations, and an outline of a practicable 
 licensing system applicable to all branches of the wholesale and 
 retail trade. 
 
 In discussing certain prevalent abuses and malpractices, a 
 
 dictum of Chief Justice Sir Glenholme Falconbridge is quoted: — 
 
 "The various cases of alleged oppression 'and driving out 
 
 of trade' of persons who either openly, or by some ingenious 
 
 ' device, aim to belong to the wholesale trade, and at the same 
 
 time sell at retail, are thus easily understood. If this system 
 
 were to be practised, it would injuriously affect and demoralize 
 
 the trade, not only of the wholesaler, but of the retailer, and 
 
 the consumer would certainly not be the better off in the long 
 
 run." 
 
 Fains are taken to demonstrate the necessary character of the 
 part played by the wholesale merchant, and by all the legitimate 
 successive traders. 
 
 For purposes of licensing the following classification was 
 adopted, close definition being given each of the six groups: 
 
 (1) Manufacturers, 
 
 (2) Wholesalers, 
 
 (3) Wholesale Jobbers, 
 
 (4) Commission Merchantis, 
 
 (5) Brokers, 
 
 (6) Retail Merchants. 
 
 Whilst these categories may be modified in the future, they 
 have been found sufficiently explicit and inclusive for present pur- 
 poses. The Committee performed a very useful task in sharply 
 differentiating between the functions and province of each group, 
 thus facilitating the elimination of mere speculators and super- 
 fluous middlemen. 
 
 The license regulations are so devised as practically to render 
 profiteering impossible, or at least, immediately discoverable and 
 punishable. Control, through revocation of licenses, is vested in 
 the Food Controller. Monthly reports may be required of all licen- 
 sees, and provision is made for keeping record of the movement in 
 bulk of all foodstuffs. 
 
 45 
 
Well-considered recommendations of a practical nature, touch- 
 ing such subjects as retail delivery of goods, advertising, combina- 
 tion sales, are included in the report, along with suggested license 
 forms and graduated schedules of license fees for each of the six 
 groups enumerated above. 
 
 The report finally recommends that all expenses of establishing 
 the license system be bonie by the trade itself; that a close system 
 of trade control be devised; that all rebates, secret commissions, 
 collusive methods, combination sales, etc., be prohibited; that the 
 routes of commercial travellers be so regulated as to prevent over- 
 lapping; that a rigid system of stock returns be enforced; and that 
 every branch of the trade be permitted only a limited percentage of 
 profit on turnover. 
 
 The wholesale grocers' report was strongly endorsed by a 
 Special Committee of the Retail Merchants' Association of Canada. 
 
 46 
 
ORDERS-IN-COUNCIL RELATING TO FOOD CONTROL. 
 
 Date. Subject. 
 
 Juneie, 1917 Regulations for appointment of Food Controller. 
 
 June 21, 1917 Appointment of Hon. W. J. Hanna as Food Controller. 
 
 July 3, 1917 Staff, Office of Food Controller; appointment of Todd, 
 
 Willison and French. 
 
 August 1, 1917 Franking privilege extended to Pood Controller. 
 
 August 9, 1917 Regulations applicable to Public Eating Places and use 
 
 of wheat for alcohol prohibited; penalties imposed, 
 etc. 
 
 August 18, 1917 Export of Flour prohibited. 
 
 August 23, 1917 Food Controller's Office; appointment of officers, clerks 
 
 and others; authority to make such appointments, 
 fix salaries, etc. 
 
 August 24, 1917 Canned Vegetables; prohibition of use of while fresh 
 
 vegetables are available. 
 
 October 3, 1917 Franking privilege to secretaries of Provincial Committees 
 
 of Food Controller's Office. 
 
 October 8, 1917 Food Control; Educational Bureau; appointments. 
 
 October 11, 1917 Regulations re wholesale producers and dealers. Must 
 
 make returns, etc. 
 
 October 19, 1917. . . . Cereal Foods; Regulations re sale of. 
 
 Extra " Canada Ga- 
 zette," October 25, 
 
 1917 Order of Food Controller extending time for commence- 
 ment of Cereal Foods regulations.' 
 
 October 23, 1917 Oleomargarine; Regulations re importation and sale of. 
 
 November 2, 1917. . . Use of grain for distillation of potable liquors prohibited. 
 
 November 15, 1917.. Export of Foodstuffs; prohibition of. 
 
 November 15, 1917. . Licensing of dealers in Food, etc.; Regulations re. Food 
 
 Controller authorized to fix profits, etc. 
 
 November 15, 1917 . . Licensing of Mills for the grinding of fiour, regulations for 
 
 November 19, 1917.. Oleomargarine; Regulations re handling of; Licenses. 
 
 for importation of to be issued from Office of Veter- 
 inary Director General. 
 
 2nd Extra "Canada 
 Gazette," Novem- 
 ber 17, 1917 
 
 November 19, 1917. . 
 
 November 27, 1917. 
 December 3, 1917... 
 
 December 24, 1917.. 
 January 21, 1918. . . 
 
 Order of Food Controller re manufacture, importation 
 
 and sale of Oleomargarine. 
 Food Control Regulations framed by Food Controller re 
 
 Licenses for exportation of goods to allied countries, 
 
 etc., approved. 
 Manufacture of Malt; Regulations re. 
 Prohibition of Export of certain foods to the United 
 
 Kingdom, British Possessions, etc.; except under 
 
 license from Minister of Customs. 
 Food Control Regulations re Cars containing food being 
 
 held for longer period than 4 days, etc. 
 Prohibition of Flour Mills of certain capacity operating 
 
 without License after 28th January, 1918. 
 
 47 
 
PUBLICATIONS TO DATE 
 
 The following is a list of the publications and printed reports 
 which have been issued by the Food Controller and the Canada 
 Food Board to date: 
 
 The Canadian Food Bulletin {published every two weeks) 
 
 War Meals 
 
 Canning Bulletin 
 
 Speaker's Handbook 
 
 Fish Cook Book 
 
 Report of the Milk Committee 
 
 Report of the Cereal Package Committee 
 
 Report of the Produce Committee 
 
 Report of the Committee of the Grocery Trade 
 
 One Week's Budget 
 
 Soldiers of the Soil Manual of Instructions. 
 
 48