WAR TRADE BOARD VANCE C. Mccormick, chairman HISTORY OF PRICES DURINQ THE WAR WESLEY C. MITCHELL, Editor in Chief GOVERNMENT CONTROL OVER PRICES PAUL WILLARD GARRETT assisted! by ISADOR LUBIN and STELLA STEWART Published by the War Trade Board in Cooperatioa with the T*^ar Industries Board WASHINGTON GOVERNMENT PRINTING OFFICE 1920 -^•^ ^'^A r-I?! iV, WAR TRADE BOARD VANCE C. Mccormick, chairman HISTORY OF PRICES DURING THE WAR WESLEY C. MITCHELL, Editor in Chief GOVERNMENT CONTROL OVER PRICES By PAUL WILLARD GARRETT assisted by fSADOR LUBIN and STELLA STEWART PubHshed by the War Trade Board in * Cooperation with the War Industries Board WASHINGTON GOVERNMENT PRINTING OFFICE 1920 n~ 9t D. APR !3 1920 h I CONTENTS. Introduction. 21 Book I. if-/ GOVERNMENT CONTROL OVER PRICES. Part I.— The problems that led the Government Into price control 23 1. The rise in prices before the Government interfered 23 (1) The movement of prices from 1890 to the European war 24 (2) The war-time prices to April 6, 1917 25 (3) The final upward swing which provoked Government con- trol 29 2. The conditions that threatened further rises 29 (1) The European demands upon American production 30 (2) The breakdown in coal distribution 32 (8) The shortage of ships 33 8. The desire of the Government to make its own purchases at reason- able costs 35 4. The growing discontent with the rising prices of staples 35 5. The influence of British and French controls 35 Part II. — The administration of price controls during the war 37 1. The agencies delegated and the controls which they exercised 37 (1) The President made a minister of price controls 38 2. The Food Administration 40 (1) The food-control act 42 The purposes of the act 42 The license system 43 The teeth of the statute 45 The fixing of a minimum price for wheat 45 (2) The policies of the Food Administrator 46 No fixed prices established 48 The " reasonable-margin-of-profit " rule 49 The cost basis 51 Fixing maximum wholesale and retail margins 52 Disregard of replacement value 54 Agreements with the trade 55 Campaigns of education for consumers 56 (3) The administration of food control 57 The license system as the basis of control 57 Wheat, flour, and bread 59 The demands of Europe., . 59 The necessity for an increased world production. 60 A minimum price for wheat fixed by statute 61 The relation of the minimum price to the market price ^__ 62 The enforcement of the wheat price 64 The licensing of millers and elevators 66 The 1919 guaranteed price 67 3 \^ ^ CONTEIiTTS. Part II.— The administration of price controls during the war— Contd. 2. The Food Administration — Continued. (3) The administration of food control— Continued. Wheat flour and bread — Continued. Page. Producers generally satisfied 67 Stability of the wheat price a reality 68 Close relation of flour and wheat 6S Control exercised over flour 69 Control of flour in 1918 70 Conservation measures 71 Results of flour control 72 Exercising bread control 72 Results of bread control 73 Summary 74 Sugar 7S The beet-sugar control 79 Control over the cane-sugar supply 80 The distribution of refined sugar 81 The Sugar Equalization Board 82 The limitation of sugar consumption____, 84 Sugar bj'-products .___ go The results of sugar control 86 Live stock and meats §7 The stimulation of meat production 88 Hog production ^ 89 Beef production 93 The licensing of the meat industry 95, Licensees with annual sales exceeding $100,000,000- 96 Licensees with annual sales of less than $100,- 000,000 97 The administration of the license system over meat- 97 The results of meat control 99 Poultry and dairy products -^o^ Poultry -^Q^ Eggs SgH 202 Butter. Cheese. Milk 103 105 105 'Oleomargarine ^qq Cotton seed and cottonseed products no The early-price situation no The licensing of the industry no Control over the 1918 crop 112 The post-armistice situation 112 The effects of control n4 Canned and dried foods ns Vegetables ^5 Canned fish 217 Dried fruits 219 The results of control _ 220 Rice and rice flour 120 Control over the industry X21 The price agreement of the summer of 1918 121 CONTENTS. PART II.— The "administration of price controls during the war— Contd. 2. The Food Administration— Continued. (3) The administration of food control — Continued. Page. Coarse grains and feedstuffs 123 Hum'an foods 123 The creation of the Grain Division 124 The hmitation of coarse grain millers' prices 126 Feeding stufEs 127 Feeds other than coarse grains and their products- 127 Coffee 128 Governmental interference 128 The closing of the coffee exchange 130 Collateral commodities 130 Ammonia 13*^ Ice 131 Arsenic : 132 Unlicensed control over commodities at retail 13-4 Indirect control through licensees 135 The organization of the retail trade 136 The consumers' reports 137 The " fair-price " lists 137 A comparison of retail prices 140 Retail prices in the United States and Canada — 144 Enforcement of the license control 145 The Enforcement Division 145 The licensee reports 146 The inspection work 147 The Federal food administration in the States_I__ 147 The emphasis upon publicity 148 The centralization of Government and allied food pvirchases 148 Division of coordination of purchase — 149 Food Purchase Board 150 3. The Fuel Administration 151 (1) The war-time rise in coal prices 151 (2) The coal-production' committee 154 The 1,700,000-ton Navy order 155 The Peabody-Lane prices 155 Their repudiation by Secretary Baker 158 (3) The food and fuel act 160 The power to fix coal and coke prices 160 Enforcement provisions 161 •(4) The kinds of fuel control 161 Organization 162 Control over distribution 162 Control over production 163 Control over conservation . 165 (5) The control over coal prices IGo Price fixing of bituminous coal at the mine 166 Prices fixed by the President Aug. 21, 1917 166 Modifications made by the Fuel Administrutor__ 167 A comparison of prewar and fixed prices 169 6 CONTENTS. Part II. — The administration of price controls during the war — Contd. 3. The Fuel Administration — Continued. (5) The control over coal prices — ^Continued. Page. Price fixing of anthracite coal at the mine 172 Prices fixed by the President 173 Modifications made by the Fuel Administrator— 174 A comparison of prewar and fixed prices 175 Control over the prices of coal middlemen 177 Jobbers' margins 177 Distributors' margins -> 178 Control over coal at retail 178 Special prices, premiums, and charges — - 179 Costs made the basis of price-fixing 179 Bituminous costs 182 Anthracite costs 184 (6) The control over coke . 188 (7) The control over charcoal 190 (8) The control over fuel wood 190 (9) The control over petroleum 191 The early war situation 191 ,. The regulation of prices 191 The licensing of the petroleum industry 193 The gasoline emergency 194 Control and its effect upon prices 194 4. The War Industries Board 195 (1) The development of a control over war industries 195 The early work of the Council of National Defense— 196 The General Munitions Board 197 The Committee on Supplies 200 The Committee on Raw Materials, Minerals, and Metals 201 The War Industries Board created under the Council of National Defense on July 28, 1917 202 The appointment of Chairman Baruch 203 The War Industries Board made independent under the Overman Act on May 28, 1918 205 (2) The powers and policies of the War Industries Board 205 Its basis in law 206 The policy of Mr. Baruch 209 The organization of the board 210 The relation of the board to price-fixing 211 (3) The kinds of control exercised 212 Requirements -_ 213 Clearances 215 The clearance committee 215 The clearance oflice 216 The clearance list 217 Priorities 218 Authority for priority control 221 The priority circulars 222 The method of rating 222 Automatic rating 223 00E"TE2>rTS. ( Part II.— The administration of price controls during the war — Contd. 4. The War Industries Board— Continued. (3) The liinds of control exercised— Continued. Priorities — Continued. Page. Unifying priorities in production with those in delivery ^-'^ Purposes demanding preferential treatment 225 The preference lists 226 War-industry controls center about priorities 228 Allocations -""- Curtailments "^^ Conservation ^^" Prices " 5. The price-fixing committee '^'^'^ (1) Organization of the committee ■ — 233 (2) The basis of power to fix prices 235 The threats of requisitioning and commandeering 235 The war-time spirit 23 i (3) Its sphere of activity 237 Committee concerned primarily with Government pur- chases 237 The committee fixed prices only upon request 238 Fixed producer prices 239 (4) The character of the price-fixing agreements 239 The method of making the agreements 239 All prices were maximum prices 240 Fixed prices applicable alike to low and high cost producers 240 Fixed prices applicable alike to Government, allied, and public purchases ^ 241 (5) The price policies of the committee 242 (6) Administering committee decisions 244 (7) The commodities fixed in price by the War Industries Board and the price-fixing committee 244 Iron, steel, and their products 244 The runaway steel market in 1917 245 The disposition to control iron and steel prices — 247 The policy of the President and his war officials — 247 The Pomerene bill in Congress 249 The attitude of the iron and steel industry 250 Problems facing the Government in assuming control , 251 Should control extend to civilian purchases 251 Should control extend to allied purchases 251 Flat rate or cost plus profit scale 252 Should higher contract prices already made be abrogated 253 Should the Government recognize the labor, fuel, and transportation problems 253 Should account be taken of the middlemen 253 Raw-material prices fixed September 24, 1917 254 Semi-finished products prices fixed October 11, 1917 264 8 CONTENTS. Part II. — The administration of price controls during tlie war — Contd. 5. Tlie price-fixing committee — Continued. (7) Tlie commodities fixed in price by the War Industries Board and the price-fixing committee — Continued. Iron, steel, and their products — Continued. Page. Finished product prices fixed November 5, 1917 266 The determination of differentials upon basic prices 267 Modifications of original basic prices fixed 269 Price control and the relative rise of prices and production 270 Summary 271 Copper 272 Copper production of more concern than high prices 272 The early allied purchases 274 The allied purchase of 77,000,000 pounds 275 The early Government purchases 275 The Government purchase of 45,510,000 pounds in March, 1917 276 The Government purchase of 60,000,000 pounds in June, 1917 276 Electrolytic copper fixed on September 21, 1917 278 The determination of the Govei-nment to fix the price at 22 cents . 278 The copper interests ask for a price of 25 cents .— 278 The price fixed at 23i cents 281 Interpretation of the fixed-price policies 281 Appeal of small high-cost producers for an in- crease 283 Electrolytic copper increased to 26 cents on July 2, 1918 283 Summary 284 ^ Aluminum 284 Lead 286 Zinc . - 288 iy Nickel 289 Quicksilver 291 Tin — 291 Platinum 293 Cotton textiles 293 The early need for regulation 293 The px'ice-fixing committee and the cotton industry- 297 The fixing of cotton-textile prices 298 Ootton-yarn prices 301 The proposed price revision 301 Summary 303 Cotton hnters 304 Government control of the linter crop 306 The cotton-linter pool - 306 The mattress-linter pool 308 CONTENTS. 9 p^BT II.— The administration of price controls during the war— Oontd. 5 Tlie price-fixing committee — Continued. (7) Tlae commodities fixed in price by tlie War Industries Board and tlie price-fixing committee— Continued. Page. ---T. , 309 Wool The approach to regulation ^J-" The adoption of a regulative policy 313 The effects of wool control 316 Hides, skins, and leather 316 Cattle hides ^^^ Sheepskins 320 Tanned leather ^-^^ Summary ^^ Manila fiber and hemp 3-i Burlap 3^5 Lumber "~ Southern yellow pine 3-6 Other soft woods___-, 329 Hardwoods 330 Building materials 331 Portland cement 334 Common brick 336 Hollow building tile 33cS Gypsum wall board and plaster board . 338 Sand, gravel and crushed stone 338 Chemicals 338 Nitrate of soda 338 Heavy acids 341 Sulphuric acid 341 Nitric acid 343 y^ Conclusion 344 ^ Sulphur and pyrites 344 Wood chemicals 345 Acetic acid 346 Methjd acetate 347 Formaldehyde 347 Toluol 348 Alkalis 349 6. The War Trade Board 350 (1) The creation of the War Trade Board 350 (2) All exports and imports brought under license control 351 The control over exports _ 351 The conservation list 352 The control over imports 352 The restricted list 352 (3) The exercise of price control by uses of the hcensing power 35o Rubber 357 The British embargo of 1914 357 The licensing of rubber imports 358 The restriction of rubber imports and price fixing_ 358 The results of the embargo 359 Silk 360 10 coNTE:^rTS. Part II. — The adiniuistration of price controls during the war — Contd. Page. 7. The War Department 3G1 <1) The Army represented on the price-fixing committee 363 (2) Tlie price-fixing section 364 (3) Commandeering and requisitioning — ^ 364 (4) The Board of Appraisers 365 S. The Navy Department . 367 (1) Commodities purcliased by the Navy 367 (2) Representation of tlie Navy upon tlie price- fixing com- mittee 371 (3) Commandeering 371 (4) The supply of raw materials to contractors by tlie Navy__ 372 (5) Determination of "fair and just" prices 873 9. The Federal Trade Commission 374 10. The Department of Agriculture 376 (1) The control of farm equipment ' 376 (2) Fertilizers 379 11. The basis for determining a fixed price 380 (1) The objects of the price fixers 380 (2) The methods of control 381 (3) The data used in fixing a price 382 (4) The problem of the low-cost and the high-cost producers- 383 (5) Prices fixed above the "bulk line" of production 399 (6) The interpretation of a " reasonable profit " 409 12. The lifting of Government control OA^er prices 411 (1) The effect of lifting control upon prices 411 (2) The purpose of the Industrial Board 413 Part III. — Statistical devices for measuring the effects of price control 415 Introduction 415 Table 1. Gradual extension of price control 416 Table 2. The Price Section weighted index number separated into controlled and uncontrolled prices 418 (1) Tables of index numbers of prices of controlled and uncontrolled commodities 419 (2) The series of the Price Section index number con- sidered uncontrolled 459 (3) The series of the Price Section index number con- sidered controlled 477 Table 3. Chain indexes of controlled and uncontrolled prices 491 Table 4. Relative points below which 50 basic commodities were pegged 504 A summary of actual and relative prices below wliich basic prices were fixed 514 Relative prices of 50 basic commodities 516 Table 5. A comparison of controlled raw^ material prices with the prices of their uncontrolled manufactured products 532 Table 6. A comparison of the prices of controlled manufactured goods with the prices of their uncontrolled raw materials 540 Table 7. A comparison of conti'olled raw m'aterial prices with the prices of their controlled manufactured products 542 Table 8. A comparison of controlled prices at wholesale and corre- sponding controlled prices at retail 550 Table 9. A comparison of war prices in the United States, England, France, and Canada 553 COiSfTEiSrTS. 11 Book II. GOVERNMENT REGULATIONS RELATING TO PRICES. Page. 1. Introduction ^^"^ 2. Foods 568 General regulations 576 Special regulations 578 Wheat millers and manufacturers of mixed flours 578 Operators of all places for the storage of, and dealers in, wheat, corn, oats, rye, and barley 585 Rice 588 Sugar 588 Canners of peas, tomatoes, corn, dried beans, salmon, sardines, and tuna; manufacturers of tomato catsup, tomato soup, and other tomato products; condensed, evaporated, or powdered milk 591 Packers of dried peaches, dried apples, dried prunes, or dried raisins. 595 Dealers and brokers in, and importers of, certain vegetable oils and their raw materials 597 Manufacturers of oleomargarine and other butter substitutes 599 Wholesalers, jobbers, importers, and retailers of licensed nonperish- able food cominodities 599 Brokers and auctioneers of licensed nonperishable food commodities. 610 Dealers in sugars and sirups 611 Distributors of fresh fruits and vegetables 613 Distributors of fresh fish and frozen fish 614 Distributors of poultry 616 Distributors of eggs 619 Manufacturers and distributors of butter 625 Manufacturers and distributors of cheese 629 Cold storage warehousemen 634 Distributors of feeding stuffs 635 3. Fuels 640 Anthracite coal 642 Bituminous coal 643 Coke 657 Charcoal 661 Jobbers' margins and distributors' commissions 661 Retail prices 662 Petroleum 663 4. Metals and metal products 665 Aluminum 665 Copper 669 Iron and steel 670 Lead 673 Manganese ore 673 Nickel 675 Platinum metals 675 Quicksilver 675 Silver 676 Zinc 678 5. Textiles and fibers 680 Binder twine 680 Burlap. 680 Cotton goods - 681 12 COXTEXTS. 5. Textiles and fibers— Continued. Page. Cotton linters 703 Rates for compressing cotton 704 Kapok 704 ilanila fiber 705 Rags 706 Siliv 70S Wool 709 6. Hides, sldns, and leather 729 Hides and sldns 732 Black harness leather 749 Sole and belting leather 750 7. Lumber 752 General regulations 752 Birch logs 755 Black -walnut 755 C^-press and tupelo 756 Douglas fir 759 Mahogany lumber • 76S Xp-^- England spruce 76S Xortli Carolina pine 773 Pennsj-h'ania hemlock 778 Southern or yello"w pine 781 Western sprace 790 Treenails 791 8. Building materials 792 Brick 792 Gj'psiim Airall board and plaster board 793 Hollow building tile 793 MLU-n-ork 795 Portland cement 800 Sand, gravel, and crushed stone 801 9. Chemicals 803 Acids 804 Alkalis 805 Bleaching powder 805 Carbon tetrachloride 805 Caustic soda 805 Chlorine, liquid 805 Soda ash 805 Ammonia 805 Ammonium sulphate 808 Arsenic 808 Castor beans and castor oil 808 Glycerin 810 Nitrate of soda 810 Quebracho 810 Smokeless cannon powder 811 Sulphur \ 811 Toluol 811 Wood chemicals 812 Wool grease 812 10. Rubber. ~ 812 11. Paper, news-print 815 APPENDIX. Page. Bibliograpliy . ^-^ 13 LIST OF CHAETS. Page. 1. Weighted index numbers of prices of " all commodities," by months, January, 1913, to the time that control began. Average price July, 1913-June, 1914=100 2.5 2. Weighted index numbers of prices of food group, by months, Janu- ary, 1913, to the time that control began 28 3. Weighted index numbers of prices of fuels group, by months, January, 1913, to the time that control began 28 4. Weiglited index numbers of prices of metals group, by months, Janu- ary, 1913, to the time that control began 28 5. Allied and neutral sea-going tonnage lost and built, by months, Jan- uary, 1917-September, 1918 34 6. Relative prices of wheat. No. 2 red winter, cash at Chicago, by months, Januai'y, 1913-Deeember, 1918 75 7. Relative prices of flour, wheat, standard patents, at Minneapolis, by months, January, 1913-DeDcember, 1918 75 8. Relative prices of bread, loaf, bakeiT to retail grocer, by months, January, 1913-December, 1918 75 9. Relative prices of sugar in the United States, England, and France, by months, January, 1913-December, 1918 86 10. Relative prices of cotton seed ; lard substitute ; and cottonseed oil, crude, by months, January, 1913-December, 1918 114 11. Relative prices of canned sardines, oil, keyless (100 i-inch case) ; and canned salmon, pink, tall, 1 dozen No. 1 cans, by months, January, 1913-December, 1918 118 12. Relative prices of rice, Japan head ; rice, Honduras head ; and puffed rice, Quaker ; by months, January, 1913-December, 1918 120 13. Weighted index numbers of prices of corn and corn products; and "all commodities," by months January, 1913-December, 1918 125 14. Weighted index numbers of prices of oats, rice, buckwheat, and their products ; and " all commodities," by months, January, 1913- December, 1918 125 15. Weighted index numbers of prices of hops, rye, barley, and their products ; and " all commodities," by months, January, 191.3- December, 1918 125 16. Relative prices of petroleum, 5 fields ; fuel oil, 5 cities ; and gasoline, 5 cities, by months, January, 1913-December, 1918 17. Weighted index numbers of iron, steel, and their products ; and " all commodities," by months, January, 1913-December, 1918 247 18. Relative prices of copper, electrolytic, at New York, by months, January, 1913-December, 1918 274 19. Relative prices of short staple cotton, upland middling; short staple cotton yarns, 5 series ; and short staple cotton manufacture, 19 series; by months, January, 1913-December, 1918 304 20. Relative prices of cotton linters, grade D, cut 130-175 pounds per ton, by months, January, 1913-December, 1918 _ 309 14 CONTENTS. 15 Page. 21. Relative prices of raw wool, domestic and imported, by months, January, 1913-December, 1918 311 22. Weighted index numbers of prices of bides, skins, leather, and leather manufactures; and "all commodities," by months, Janu- ary, 1913-December, 1918 ^^. 317 23. Weighted index numbers of prices of lumber ; and " all commodi- ties," by months, January, 1913-December, 1918 32G 24. Weighted index numbers of prices of fertilizers; and "all com- modities," by months, January, 1913-December, 1918 378 25. Costs at which difCerent portions of the output of beehive coke were produced in September, 1918 400 26. Costs at which different portions of the output of pig iron, basic, were produced in September, 1918 401 27. Costs at which different portions of the output of Douglas fir were produced in March, April, and October, 1918 402 28. Costs at which different portions of the output of beet sugar were produced in 1917-18 402 29. Average adjusted costs, bulk lines, and prices originally fixed for all bituminous coal districts charted during August and Septem- ber, 1917 403 30. The average reported costs and adjusted costs of the production of anthracite coal in the Pennsylvania anthracite region during the period December, 1917-May, 1918 403 31. The Bureau of Labor Statistics index number of " all commodities," separated into controlled and uncontrolled, by months, August, 1917-May, 1919. Average price for 1913=100 411 32. Weighted index numbers of prices of "all commodities" (1,366 series) controlled and uncontrolled dujing the war, by months, January, 1913-December, 1918 421 33. Weighted index numbers of prices of food group (268 series), con- trolled and uncontrolled during the war, by months, January, 1913-December, 1918 421 34. Weighted index numbers of prices of clothing group (409 series), con- trolled and uncontrolled during the war, by months, January, 1913- December, 1918 421 35. Weighted index numbers of prices of rubber, paper, and fiber group (119 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 422 36. Weighted index numbers of prices of metals group (116 series), con- trolled and uncontrolled during the war, by months, January, 1913-December, 1918 422 37. Weighted index numbers of prices of fuels group (63 series), con- trolled and uncontrolled during the war, by months, January, 1913-December, 1918 422 38. Weighted index numbers of prices of building materials group (149 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 423 39. Weighted index numbers of prices of chemicals group (243 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 423 40. Weighted index numbers of prices of cotton and cotton products class (81 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 423 16 CONTENTS. Page. 41. Weighted index numbers of prices of wool and wool products class (66 series), controlled and uncontrolled during the war, by months, January, 191S-December, 1918 424 42. Weighted index numbers of prices of hides, skins, leather, and leather manufactures class (156 series), controlled and uncontrolled during the war by months, January, 1913-December, 1918 424 43. Weighted index numbers of prices of rubber and rubber products class (34 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 424 44. Weighted index numbers of prices of iron, steel, and their products class (88 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 425 45. Weighted index numbers of prices of petroleum and petroleum prod- ucts class (27 series), controlled and uncontrolled during the war, by months, January, 1913-December, 1918 425 46. Weighted index numbers of prices of lumber class (62 series), con- trolled and uncontrolled during the war, by months, January, 1913-December, 1918 425 47. Weighted chain index for prices of " all commodities " (1,366 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 492 48. Weighted chain index for prices of food group (268 series)', con- trolled and uncontrolled during the war, by months, April, 1917- December, 1918 495 49. Weighted chain index for pilces of clothing group (409 series,) con- trolled and uncontrolled during the war, by months, April, 1917- December, 1918 — — 495 50. Weighted chain index for prices of metals group (116 series), con- trolled and uncontrolled during the war, by months, April, 1917- December, 1918 496 51. Weighted chain index for prices for fuels group (63 series), con- trolled and uncontrolled during the war, by months, April, 1917- December, 1918 496 52. Weighted chain index for prices of building materials group (149 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 497 58. Weighted chain index for prices of wheat and wheat products class (12 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 497 54. Weighted chain index for prices of cotton and cotton products class (81 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 49S 55. Weighted chain index for prices of wool and woolen products class (66 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 49S 56. Weighted chain index for prices of iron, steel, and their products class (88 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 499 57. Weighted chain index for prices of coal ahd coke class (27 series), controlled and uncontrolled during the war, by months, April, 1917-December, 1918 499 58. Relative prices of sugar, raw, 96° centrifugal, net cash, by months, January, 1913-December, 1918 507 CONTENTS. 17 Page. 59. Relative prices of wheat No. 1 Northern spring, cash, by months, January, 1913-December, 1918 ^^ 60. Relative prices of cattle hides, packers' hea?y native steers, by months, January, 1913-December, 1918 _ 507 61. Relative prices of cotton weaving yarns carded, white, northern, mule spun, 22/1 cones, by months, January, 1913-December, 1918— 508 62. Relative prices of print cloth, 27-inch, 64 by 60, 7.60 yards, by months, January, 1913-December, 1918 508 63. Relative prices of wool, Ohio, Pennsylvania, and West Virgmia, un- washed, fine delaine, by months, January, 1913-DeGember, 1918_ — 508 64. Relative prices of rubber, crude plantation, Hevea, first latex crgpe, by months, January, 1913-December, 1918 509 65. Relative prices of copper, electrolytic, at New York, by months, Janu- ary, 1913-December, 1918 509 66. Relative prices of iron ore, Mesabi, nonbessemer, 51J per cent, by months, January, 1913-December, 1918 509 67. Relative prices of pig iron, basic, by months, January, 1913-Decem- ber, 1918 510 68. Relative prices of steel plates, tank, by months, January, 1913- December, 1918 510 69. Relative prices of anthracite coal, chestnut, by months, January, 1913-December, 1918 ■ 511 70. Relative prices of bituminous coal, by months, January, 1913-Decem- ber, 1918 511 71. Relative prices of Connellsville coke, by months, January, 1913- December, 1918 512 72. Relative prices of crude petroleum, mid-continent, by months, Janu- ary, 1913-December, 1918 512 73. Relative prices of Douglas fir, by months, January, 1913-Decem- ber, 1918 513 74. Relative prices of yellow pine, Southern, common boards. No. 1, S-2-S, 1 by 10 inches, by months, January, 1913-December, 1918__ 513 75. Relative prices of sulphuric acid, 60°, by months, January, 1913- December, 1918 513 76. Relative prices of copper, electrolytic, and copper wire, by months, January, 1913-December, 1918 533 77. Relative prices of pig iron, chains, and saws, by months, January, 1913-December, 1918 533 78. Relative prices of lead and lead pipe, by months, January, 1913- December, 1918— 5.33 79. Relative prices of wool, woolen yarns, and woolen suitings, by months, January, 1913-December, 1918 534 80. Relative prices of crude rubber and rubber tires, by months,. Janu- ary, 1913-December, 1918 534 81. Relative prices of calf-skin leather, and shoes, by months, January, 1913-December, 1918 534 82. Relative prices of cotton yarn and raw cotton, by months, January, 1913-December, 1918 543 83. Relative prices of wheat, wheat flour, and bread, by months, Janu- ary, 1913-December, 1918 543 84. Relative prices of iron ore, pig iron, and iron pipe, by months, Janu- ary, 1913-December, 1918 544 125547°— 20 2 18 CONTENTS. Page. 85. Relative prices of coal and coke, by monttis, January, 1913-Decem- ber, 1918 544 86. Relative prices of cattle hides and sole leather, by months, January, 1913-December, 1918 545 87. Relative prices of sugar, raw and refined, by months, January, 1913-December, 1918 545 88. Medians of relative prices of 150 commodities in the United States and England, by months, January, 1913-December, 1918 557 89. Medians of relative prices of 34 food commodities in the United States and England, by months, January, 1913-December, 1918 557 90. Medians of relative prices of 29 clothing commodities in the United States and England, by months, January, 1913-December, 1918 558 91. Medians of relative prices of 9 iron and steel commodities in the United States and England, by months, January, 1913-December, 1918 558 92. Medians of relative prices of 55 chemical commodities in the United States and England, by months, January, 1913-December, 1918 559 93. Medians of relative prices of 44 commodities in the United States and France, by months, January, 1913-December, 1918 559 94. Index numbers of wholesale prices in the United States and Canada, by months, January, 1913-December, 1918 559 INTRODUCTION. The uppermost aims of this inquiry have been to present an anjalysis and a documentary record o'f all price regulation exercised by the Government during the World War. The latter task, :which had to be performed as a basis for the former, was made peculiarly difficult by the prompt departure of commodity chiefs from Wash- ington after the armistice, and by the chaos of abandoned war files. This monograph covers all price regulations of which record was found, but other informal controls were agreed upon by word of mouth of which no written record remains. All data of descriptive or analytical character appear in Book I, and all regulations pure and simple in Book II. Book I is separated into three! parts to show the problems that led the Government into price control, the administration of price control during the war, and various statistical devices for measuring the effects of control. A full analysis of the methods, powers, and policies of each price- control board is given as general background to the specific com- modity controls. The individual controls are then each discussed in detail under the? board having jurisdiction over them at the time of the armistice. Book II is separated into ten parts, and is a docu- mentary record strictly of all known Government regulations relat- ing to food ; fuel ; metal and metal product ; textile and fiber ; hide, skin, and leather ; lumber ; building material ; chemical ; rubber and paper prices. This study represents a cooperative effort of the statistical di- visions of the War Trade Board and the War Industries Board, under Edwin F. Gay. It is Bulletin No. 3 of a series of 57 bulletins which make up a " History of prices during the war," edited by Wesley C. Mitchell. The others of these bulletins, which are listed on the last page, are records of monthly price fluctuations from January, 1913, through December, 1918. They afford indispensable bases for further inquiries into the price-control problem. Every precaution has been taken here to enhance their value to that end, by keeping all charts in scale with theirs and by following similar forms. Many more persons have given aid, directly or indirectly, in gathering materials than can be named. But especial indebtedness for data on wheat, flour, and bread is owing to Lloyd W. Maxwell; 19 20 INTRODUCTION. on building materials to Homer Hoyt; on hides, skins, and leather, to E. A. James; and on wool to Katherine Snodgrass. The manu- script pertaining to the Food Administration was read in full, and approved as to the accuracy of facts, by Kaymond Pearl and W. C. Mullendore ; the Fuel Administration, by C. E. Lesher ; the War In- dustries Board, by Leo Wolman; and the War Trade Board, by Henry F. Waldradt. Particular sections were checked in addition by persons having technical knowledge of their contents. All manu- script and proof has been read and materially strengthened by Leo Wolman and Wesley C. Mitchfell. The staff, who assisted immediately in the preparation and colla- tion of materials, was Mr. Isadore Lubin, Miss Stella Stewart, Miss Susie Anderson, and Miss Elsie Ray. Mr. Lubin is responsible for the sections on sugar, live stock and meats, poultry and dairy prod- ucts, oleomargarine, cottonseed and cotton-seed products, canned and dried foods, rice and rice flour, coarse grains and foodstuffs, coffee, ammonia, ice, arsenic, petroleum, aluminium, lead, zinc, nickel, quicksilver, tin, platinum, cotton textiles, cotton linters, manila fiber and hemp, burlap, chemicals, rubber, silk, and fertilizers. Miss Stewart assisted in gathering materials and in the compilation of regulation schedules which appear in Book 11. Miss Anderson had charge of the computations. Miss Eay attended to the clerical work. P. W. G. BOOK I GOVERNMENT CONTROL OVER PRICES 21 Part I. THE PROBLEMS THAT LED THE GOVERNMENT INTO PRICE CONTROL. I. THE RISE IN PRICES BEFORE THE GOVERNMENT INTERFERED. The future student of American prices will turn back to the 14 months from August, 1917, to the signing of the armistice, and mark them as the period of our initial great experience with Government price control. The Government laid no resolute hand upon prices even during the Civil War, although at that time staple quotations more than doubled.^ Nor did the Government seek to arrest the phenomenal rises during 1916 and 1917, provoked by European war buying, until this country itself entered the war. The circumstances attending this first and extraordinary experiment in the regulation of prices possess peculiar interest. The factors that dictated to the Government the necessity of regu- lating prices were the high level to which prices had climbed by the late summer of 1917 and the fear of a further rise. The precontrol * The Price Section of the War Industries Board in its " Comparison of Prices During the Civil War and Present War " has made the following medians of relative prices of commodities at wholesale. They show relatively how high Civil War and present war prices went above their respective prewar levels, represented by 100. Number of commodities 1860 and 1913: January April July. October 1861 and 1914: January April July October 1862 and 1915: January April July October 1863 and 1916: January April July October 1864 and 1917: January April Jifiy October 1865 and 1918: January April July October All com- modities. Civil War. 92 Pres- ent war. 92 100 100 100 100 100 100 100 100 100 100 96 100 96 100 97 100 100 100 100 100 100 102 111 102 125 114 137 115 134 119 135 130 156 142 169 157 194 169 200 174 216 178 190 182 1.58 187 175 Foods. Civil War. Pres- ent war. 36 Building materials. Civil War. 36 100 100 100 100 98 100 99 100 98 100 94 100 88 100 91 105 99 107 96 105 93 105 100 102 116 110 125 113 117 117 125 127 152 142 161 162 184 169 194 193 232 188 189 199 156 194 170 19 100 100 100 100 100 100 100 102 106 112 107 116 133 143 139 145 160 177 189 200 200 196 171 200 Pres- ent war. 19 100 100 100 100 100 100 100 100 100 100 100 100 104 109 110 117 124 137 152 152 161 172 181 Chemicals. Civil War. 15 100 100 100 100 100 100 100 100 117 107 109 125 130 142 142 133 153 161 189 200 222 182 153 170 Pres- ent war. Cotton. Civil War. 15 100 100 100 100 100 100 100 100 100 100 115 126 138 187 187 156 152 175 177 196 192 197 193 Pres- ent war. 101 101 98 99 112 117 136 197 336 253 346 515 618 668 631 773 741 695 1,410 1,101 1,096 343 430 426 95 95 106 101 101 53 62 76 69 94 94 92 100 135 134 152 196 209 243 250 232 Copper, ingot. Civil War. Pres- ent war. 100 98 89 81 81 77 87 113 94 98 119 132 130 130 138 161 172 198 200 209 145 121 138 23 117 101 97 110 78 87 106 132 120 152 179 177 190 197 227 212 157 157 157 170 24 HISTORY OF PRICES DURING THE WAR. rises of commodity prices at wholesale may be divided into three periods — ^the prewar advance from 1890 to the outbreak of the European war, the war-time rises to April 6, 1917, and the final upward swing of prices that was under way when the Government interfered. (i) THE MOVEMENT OF PRICES FROM 1890 TO THE EUROPEAN WAR, The fluctuations in prices for the quarter century prior to the out- break of war in Europe on July 28, 1914, bore upon price control only as they established rather definite courses of price movement by departure from which war prices gave alarm. The most reliable measure of the price level for that period is the index number made by the Bureau of Labor Statistics for all commodities and those for important groups.^ 1 The Bureau of Labor Statistics Index number, separated to show prices within nine distinct groups (Farm products ; Food, etc. ; Cloths and clothing ; Fuel and lighting ; Metals and metal products ; Lumber and building materials ; Chemicals and drugs ; House-furnishing goods; and Miscellaneous), contains quotations for representative com- modities, varying in number from 192 in 1890 to 297 in 1914. These actual prices, in order that each might have its proper influence upon the final index number, were made into weighted aggregates and then turned into relatives by allowing each average prewar aggregate for 1913 to equal 100. The index numbers for " all commodities " and the nine groups from 1890 to the outbreak of war in Europe, and for later reference on through 1918, follow : Bureau of Labor Statistics index number of "prewar prices. [1913=100.] Year. All com- modi- ties. Farm prod- ucts. Food, etc. Cloths and cloth- ing. Fuel and light- ing. Metals and metal prod- ucts. Lum- ber and build- ing mate- rials. Chem- icals and drugs. House- fur- nish- ing goods. Miscel- lane- ous. 1890 81 81 76 77 69 70 66 67 69 74 80 79 85 85 86 86 88 94 91 97 99 95 101 100 99 100 123 175 196 68 73 66 67 59 60 54 58 61 62 ■ 69 73 81 75 80 77 78 85 85 97 103 93 101 100 103 105 122 188 218 89 89 80 87 77 74 67 71 76 75 79 80 85 82 87 87 84 89 94 99 100 99 108 100 103 104 126 177 189 92 89 89 88 78 78 75 75 79 82 88 82 84 88 89 91 97 104 94 98 99 96 98 100 98 100 127 181 236 69 68 65 65 61 68 68 61 61 71 81 78 93 106 91 87 90 93 90 88 83 81 89 100 92 87 115 169 175 114 102 93 85 72 77 80 71 71 108 106 98 97 96 88 98 113 120 94 92 93 • 89 99 100 87 97 148 208 182 72 70 67 68 66 64 63 62 65 71 76 73 77 80 80 85 94 97 92 97 101 101 100 100 97 94 101 124 151 90 92 91 90 83 88 91 89 92 96 97 98 97 96 97 96 94 96 100 101 102 103 101 100 103 113 143 185 206 119 119 116 116 115 109 106 99 105 104 111 123 123 122 117 109 109 109 104 105 104 99 99 100 103 101 110 155 207 92 1891 92 1892 -88 1893 91 1894 86 1895 82 1896 80 1897 80 1898 79 1899 82 1900 91 1901 90 1902 92 1903 94 1904 94 1905 95 1906 97 1907 101 1908 97 1909 106 1910 116 1911 .'-- 104 1912 101 1913 100 1914 97 1915 98 1916 121 1917 154 1918 195 GOVERNMEE'T CONTROL OVER PRICES. 25 This index of prewar prices, when compared with those of war- time prices, shows relatively a sober behavior. The greatest variation of the index number for " all commodities " during any year from its preceding year, was the drop of 10 per cent in 1894. The greatest subsequent yearly variation was the rise of 8 per cent which came in 1900 and again in 1902. The average of all yearly variations up or down between 1890 and 1914 was less than 5 per cent, though most of the changes were increases. The fluctuations within the groups — farm products, fuel and lighting, and metals and metal products — were somewhat more violent than these summary data show. The metal index, indeed, shows that metals jumped from 48 in 1898 to 7d in 1899, representing an increase of 52 per cent. There had, of course, been extraordinary rises in prices during peace times, but they were all presently to be surpassed. VCiatTED INDEX NUMDOa Or PRICES OF -ALLCQMMODIHES EETORE CCNTRO, DEOAN PVMONtMd JANUAEY,lS13T°AuaU3T.1917' AEHAGC QUOTED FBICE5 JUi:(13D~JUN[;i314-KXi ,m4 |. 1914 I 1913 I lOlB I (2) THE WAR-TIME PRICES APRIL 6, 1917. TO The outbreak of the war in Europe marked sharply a new pe- riod in the history of world prices, though the immediacy with which different American prices responded was curiously varied. The dis- turbance in European prices was communicated to certain American markets by August, 1914. But prices, as a whole, in this country weighted index numbers. — " All corn- held close to their prewar level for "^«*^;f ^'l before control began.--By ^ months, January, 1913, to December, a full year after the war began. 1918. (Average quoted prices, July, The " all commodities " index num- '^^^' *^ •^"^"' i9i4=ioo.) ber of the Bureau of Labor Statistics, measuring roughly the varia- tions in the general price level, ran 82, 81, 80, 81, for 1912 and the three years following. Indeed, not during any three successive years since 1890 had prices been so nearly steady as in 1913, 1914, and 1915. The index number of 1,366 commodities at wholesale made by the Price Section of the War Industries Board, which is the best meas- ure of American war prices pure and simple, shows that the relative stability of the general price level was the net resultant of numerous 26 HISTORY OF PRICES DURING THE WAR. price changes in opposite directions.^ The prices of chemicals, as might be expected, started climbing after Europe had been at war but a month and did not turn back until a year and one-half later, when they had doubled. Metals, too, began soaring after Europe had been fighting only six months, and carried quotations on a runaway market toward levels unknown before. On the other hand, fuel prices con- tinued falling for a full year after the war had begun, as did rubber, paper, and fiber prices generally. But the prices of food, clothing,, building materials, and, indeed, the general price level, as shown graphically in the " all commodities " index number, remained stub- bornly unresponsive to war stimuli until the autumn of 1915. The Governments of England, France, and Russia, however, had been placing enormous contracts for war materials in the United States, and these purchases finally set American prices rising. When 1 For measuring the price changes during the war period strictly, or indeed from Jan- uary, 1913, to December, 1918, there is distinct advantage in shifting from the Bureau of Labor Statistics' index number to that made by the Price Section of the War Indus- tries Board under the direction of Wesley C. Mitchell. This latter index number, made in a somewhat similar manner, contains prices for 1,366 representative commodities by months, quarters, and years for the six-year period. It, moreover, is divided into seven index numbers for the food, clothing, rubber, paper, fiber, metals, fuels, building materials, and chemical groups, which in turn are separated into 50 index numbers for important industrial classes. The actual monthly quotations for each commodity were multiplied by the 1917 production plus imports, the products were then cast up separately for each of the 72 months covered, and finally the aggregates were turned into . relatives by taking the average aggregate from July 1, 1913, to June 30, 1914, as equal to 100. For further details, see War Industries Board Price Bulletin No. 1. The Price Section index number for " all commodities " and those for the seven main groups, from January, 1913, to December, 1918, follow : Price section index numher of war prices, 1913-1918. [Base, average prices July, 1913, to June, 1914=100.) v Series of quotations. All com- , modi- ties. Food group. Cloth- Ulg group. Rub- ber, paper, and fibers group. Metals group. Fuels group. Build- ing mate- rials group. Chemi- cals group. 1913. Januarv 103 102 102 101 100 100 100 101 102 102 102 101 98 96 97 97 95 96 96 100 102 102 103 102 102 102 101 100 100 99 99 100 100 103 102 100 114 113 112 107 105 105 104 104 103 102 101 99 120 118 116 114 113 111 110 110 108 105 100 96 102 101 101 101 101 101 101 102 102 102 102 101 104 104 105 105 105 105 102 102 - 103 100 100 100 103 February , 104 March '. 104 April 103 May 103 Tnrifi 102 July 102 August . 101 September 101 October 100 November 100 December 101 Year 101 99 101 106 110 101 103 102 1914. 100 100 99 98 97 97 97 101 101 99 98 98 101 ■ 101 100 98 98 97 ■ 98 105 107 104 103 104 99 99 100 99 99 100 100 99 94 91 88 89 98 98 98 99 98 . 97 96 101 100 98 98 100- 96 98 97 96 92 93 91 94 93 91 89 89 101 100 100 98 96 95 94 94 92 91 91 91 99 99 99 99 98 98 98 98 98 .96 95 94 99 February 99 March . . 100 99 May 98 June 99 July 98 99 100 105 106 December 105 Year 99 101 96 98 93 95 98 101 GOVERNMENT CONTROL OVER PRICES. 27 the rise did begin on this side of the Atlantic it was extraordinarily- rapid and often erratic. The whole price level, in point of fact, started upward late in 1915 at a pace not known since Civil War days. Price section index number of war prices, 1913-1918. — Continued. [Base, average prices July, 1913, to June, 1914=100.] Series of quotations. All com- modi- ties. Food group. Cloth- ing group. Rub- ber, paper, and fibers group. Metals group. Fuels group. Build- ing mate- rials group. Chemi- cals group. 1915. 100 100 100 100 100 100 102 102 102 104 107 111 105 106 105 103 103 100 103 101 99 99 102 103 90 92 92 93 95 95 96 96 98 103 106 107 100 90 90 90 90 90 91 90 89 90 92 95 91 93 95 98 101 106 110 110 114 116 124 136 90 89 88 85 85 85 85 86 90 92 95 100 93 93 93 93 94 94 96 95 95 101 101 102 123 126 126 133 132 137 July 146 148 155 October 162 172 December 178 Year 102 102 97 91 108 89 96 145 1916. January 115 118 121 123 123 122 123 125 127 132 141 144 105 106 106 109 109 109 111 115 118 125 130 129 110 113 115 116 118 120 122 125 129 135 136 154 103 104 109 112 112 111 112 114 117 120 123 129 147 154 168 174 171 169 167 170 172 176 202 218 106 107 109 112 113 113 113 110 109 111 120 122 109 111 112 113 113 113 112 112 112 116 118 119 189 200 March 200 April 198 ■ 188 June .' 185 July 175 August 166 162 October 162 November 163 December 162 Year 126 118 125 114 174 112 114 179 1917. 148 151 156 170 178 183 189 187 186 182 183 182 133 136 142 157 166 164 167 168 173 177 182 178 155 156 157 163 167 174 187 189 189 191 199 202 138 141 143 146 148 147 144 143 149 147 146 145 226 234 247 260- 276 315 333 313 283 228 209 208 129 133 131 < *-«163^ 172 173 168 169 165 164 167 170 129 130 " 132 ^ 146 148 151 155 155 156 157 159 159 159 February • 157 159 April , 163 172 June 174 July 180 \ August 183 190 October 193 191 193 Year 175 162 177 145 262 158 148 176 1918. 185 187 188 191 190 189 193 196 201 201 201 203 182 184 182 180 177 , 175 182 187 194 195 194 202 209 212 218 228 226 228 233 234 237 238 234 230 148 148 150 155 162 165 164 166 166 165 163 162 208 209 209 208 209 210 212 214 214 216 216 211 173 174 175 200 204 202 201 202 204 204 207 207 165 165 169 176 179 181 182 184 186 185 186 185 186 February . . » 192 192 April 192 190 June 189 July 184 August 186 188 October 190 November 193 December 183 Year 194 1S6 227 160 211 196 179 189 28 HISTOKY OF PRICES DURING THE WAR. rtja si a; a o 3, .§ n t-^ , 1 »tH r-(o> © r^ u 3 a O-t-" u .tT M w a) OrH U O 05 -r;^ - o >> s s a P IP ,0) W)»-5 O^rt Mg 03 boos 0) tml-S KirH unr ■. -^^ W . 1 t- - 1 "HOS a*05r-( 1-1 o «! 0) s 1^1 S2 " ^« M M 0) OJtH O -o fujos-r;— ^ o 5'^nd •Q >> rH -o ^ fl ^§11 O a Or-( t4 Ctf P05 UJ bflt-5 CH GOVERNMENT CONTEOL OVER PRICES. 29 (3) THE FINAL UPWARD SWING WHICH PROVOKED GOVERNMENT CONTROL. The war-time rises in prices before the United States entered war did not of themselves provoke Government interference. But the rises stimulated immediately by our entrance into war, were serious largely because they came after prices had already reached extraor- dinary heights. Between October, 1915, and December, 1916, the index number of " all commodities " had risen from 101 to 144. The gradual breaking of relations with Germany then forced other ad- vances, and by March, 1917, the " all commodities " index stood at 156. When this country declared war in April, the index jumped 14 points in a single month. The prices of metals had a runaway market and were carried by July, 1917, to peaks unknown before. The weighted index number for the whole metals group made by the Price Section, rose from 247 in March, the month before war was declared, to 333 by July follow- ing.^ Basic pig iron, f. o. b. Mahoning or Shenango Valley furnaces, indeed, climbed from $32.25 to $52.50 in the same months, and steel plates, tank at Pittsburgh, from $4.33 to $9, nearly 800 per cent above their prewar quotation. The very important food group index swung upward between Marcli and July from 142 to 167. Wheat, No. 1, northern spring, shot from $1.98 per bushel in March to $2.58 in July. The index number for the fuels group, in which a variation is of only less general consequence than in the food group, rose from 131 in March to 168 in July. The clothing group index number rose from 157 to 187 in the same period, the building materials group from 132 to 155, and the chemicals group from 159 to 180. It is scarcely necessary to look further than the final upward swing of prices from our entrance into war until July, for the immediate reason why the Government began formally to control prices late in the summer of 1917. 2. THE CONDITIONS THAT THREATENED FURTHER RISES. The extraordinary rises in price, that gave occasion for price con- trol shortly after our entrance into war, were the outcome of several large forces. Quite apart from the excitement thrown into the market by war speculation, there had arisen difficult problems of production, distribution, and purchasing which forced prices higher each day. A knowledge of these problems, which at bottom were the cause of rising markets, affords a clearer vision of what lay back of Government price control than does a mere review of price rises. 1 The prewar price was taken as 100. 30 HISTOEY OF PRICES DURING THE WAR. (i) THE EUROPEAN DEMANDS UPON AMERICAN PRODUCTION. The increased demands upon domestic production, which our going into war brought the Government squarely to face in 1917, was the first problem of great magnitude. The productive capacity of the country was largely under contract to allied Governments, when our own Government began itself to need materials. But the European de- mands, notwithstanding, kept mounting by leaps and bounds. Europe had taken $1,471,266,488 in value of our exports, which was somewhat in excess of her usual peace-time requirements, during the year end- ing June 30, 1914. But as she waged war she turned to the United States for more raw materials, manufactures and foods, and during the year ending June 30, 1917, took $4,307,310,138.^ This enormous and sudden demand for American materials, of course helped prices higher. The western European Allies (United Kingdom, France, Italy, and Belgium), in order to meet their annual consumption of over 900,000,000 bushels of wheat, have ordinarily to import 100,000,000 bushels from the United States and 450,000,000 bushels from other countries. This country produces about 800,000,000 bushels of wheat each year, and, since the domestic consumption normally is near 646,- 000,000, the European demand can readily be supplied. But the esti- mated harvest, at the time America entered war, came to only 635,- 000,000 bushels, thus leaving no probable surplus for exportation. It became clear that if this country maintained a normal consumption, it could ill afford Europe her usual 100,000,000 bushels. The Allies of Europe in 1917, moreover, were getting hungry and could not be satisfied with anything short of an extraordinary importation. They must, it seemed, too, avoid the long hauls from India, Aus- tralia, or South America and buy from the United States. Siberian wheat, indeed, was less accessible than that from Australia, and the Eussian port of Odessa had been shut off from western Europe by the closing of the Dardanelles. Thus in the spring of 1917 the United States was made the Mecca of Allied wheat buyers, and the largest sales, both for cash and for future delivery, were made to the Governments of Europe. To meet these large European de- 1 The total domestic exports in dollars from the United States to Etu-ope, for the year ending June 30, 1913, to that ending June 30, 1918, follow: Year. Actual. Rela- tive. Year. Actual. Rela- tive. 1913 $1,464,005,220 1,471,266,488 1,944,327,132 100 100 133 1916 $2, 972, 349, 994 4,307,310,138 3,707,309,057 203 1914 1917 294 1915 1918 253 GOVERNMENT CONTROL OVER PRICES. 31 mands, America had the smallest wheat crop since 1911.' The frenzy of buying, which seized the wheat markets of the country shortly after we entered war and sent prices violently upward, was one of the most pressing among the factors that prompted the Gov- ernment' to begin price control, with a view both to increasing production and stabilizing prices. The United States ordinarily consumes 3,950,000 short tons of sugar each year, of which she imports from foreign sources or insu- lar possessions 77 per cent.- A full half of that total supply comes from Cuba and Porto Kico. The United Kingdom ordinarily con- sumes 2,060,000 short tons of sugar, of which she imports 100 per cent. Since war suddenly cut off her normal importation of 70 per €ent of that amount from Germany and Austria, Great Britain like- wise turned toward Cuba and Porto Rico for sugar. It soon came tibout that the great bulk of sugar consumed by England and all of the allied countries, therefore, was imported from the United States and Cuba. The sugar exports from this country mounted from 96,862,462 pounds in the year prior to the European war to 1,685,195,537 pounds in 1916.^ This drain upon Cuban and American stocks forced sugar prices upward, until the Government was driven to interfere. 1 The official data showing wheat produced in the United States during the war period, the exports of ■domestic wheat, and the value of wheat exports follow: Production. Exports. Exports. Year. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. 1913. Bushels. 730,267,000 763,380,000 891,017,000 1,025,801,000 636,318,000 636,655,000 100 105 122 140 87 87 Bushels. 142,879,597 145, 590, 349 332,464,976 243,117,026 203,573,928 133,990,150 100 102 233 170 142 94 ?89,036,428 87,953,456 333,552,226 215,532,681 298,179,705 80,802,542 100 1914 99 1915. 375 1916 242 1917 335 1918. . 91 2 Calculated upon data for the prewar years from 1909 to 1914. 3 The revolution in the sugar situation as it affected American prices, is graphically pictured by the following comparison of the world's production of sugar during the war, the total supply of sugar in the United States found by adding production and imports, and the total sugar exports: Year. World's production. United States supply. United States Ex- ports. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. 1913 Pounds. 40,787,743,360 41,972,098,560 41,511,919,680 37,069,106,080 37,728,530,560 38,374,804,160 100 103 102 91 92 94 Pounds. 8,301,046,168 8,890,657,390 9,228,077,077 9,645,558,299 9,735,794,417 8,679,250,840 100 107 111 116 117 105 Pounds. 66,569,033 96,862,462 601,103,749 1,685,195,537 1,268,306,254 588,521,143 100 1914 145 1915 903 1916 2 531 1917 1 905 1918 '884 32 HISTORY OF PRICES DURING THE WAR. Another pressure upon American production early in 1917, with a consequent inducement to higher prices, was the demand in Europe for our metals.^ The total exports of iron, steel, and their manufactures, which were $251,480,677 in value for the year imme- diately prior to the war in Europe, had jumped to $1,133,746,188 by 1917. The prewar exports of copper, in like manner, were $146,222,556 in value and had been forced by European war re- quirements to $322,535,344 by 1917. These data explain why metal prices in this country got out of hand until their record rise in July, 1917, brought the Government to regulate them. (2) THE BREAKDOWN IN COAL DISTRIBUTION. The increased demand for our coal in Europe, unlike that for others of our materials, was not an appreciable factor in the fluctua- tions of coal prices, since the export tonnage of neither anthracite nor bituminous coal amounted in any year to more than 5 per cent of their respective productions. But there was, of course, a tremendously increased domestic demand incited by war orders. The produc- tion of bituminous coal, which constitutes 85 per cent of the Ameri- can output, jumped in 1917 to a record figure for this country, 551,790,563 tons. It is a curious anomaly, explained only by the breakdown in our distribution by railroads and boats, that during June, 1917, when the problem was especially acute, the production of bituminous coal rose to 123 per cent of its prewar level, while the price rose to 297 1 There follows a comparison of the actual domestic production of pig iron -with the corresponding European demands as represented roughly by our exports (domestic) of iron, steel and their manufactures during the war; and, in hke manner, a comparison of the copper produced in this country with the exports of domestic copper and its manufactures. A convenient tool by which to compare the variations in pro- duction and exports has been made , by turning each actual figure into a relative figure, using the respective prewar average (1913) as a base equal to 100. Year. Pig-ironproduction. Iron, steel, and their manufactures, ex- ports. Copper production. Copper and its man- ufactures, exports. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. Actual. Rela- tive. 1913 Long tons. 29, 726, 937 30, 966, 152 23, 332, 244 29,916,213 39,434,797 38,647,397 100 104 79 101 133 130 $304,605,797 251,480,677 225,861,387 621, 237, 972 1, 133, 746, 188 1,124,999,211 100 83 74 204 372 369 Pounds. 1,224,484,098 1, 150, 137, 192 1,388,009,527 1,927,850,548 1,886,120,721 1,910,000,000 100 94 .113 157 154 156 S140, 164, 913 146, 222, 556 99,558,030 173, 946, 226 322,535,344 268, 982, 821 100 1914 104 1915 71 1916 124 1917 230 1918 192 GOVEEl^rMEI^rT COXTROI^ OVER PRICES. 33 per cent.^ The lieayy demands upon the raih^oads for the transpor- tation of war materials, despite the extraordinary production of coal at the mines awaiting cars, created a local shortage which forced prices higher and finally brought Government interference. (3) THE SHORTAGE OF SHIPS, A shortage of available ships for use in transporting goods, though always an appreciable factor in determining the prices of commodities at their import and export markets, has seldom affected domestic prices as in 1917. The United States Shipping Board, had there been no war drain upon vessels, would have given an adequate relief. But when this country entered the war its main immediate responsibility was to recuperate the allied tonnage and turn ships into war uses with scant regard for commercial considerations. The result was a revolution in our foreign trading, which disturbed vitally many prices of commodities normally imported and others awaiting exportation. The total acquisitions of ships by the United States from April 6 to July 31, 1917, the especially acute period, exceeded the total losses. This country, in other words, gained 95 vessels, making a total of 268,969 gross tons, and lost 68 vessels, making a total of 1 The following table compares the actual fluctuations in the production of bituminous coal in the United States by years from 1913 to 1918, and by months during 1917, with the corresponding fluctuations in prices. A ready comparison of the variations in production and prices has been facilitated by the reduction of each actual figure to a relative figiu'e, using the respective prewar flgure (average from July 1, 1913, to June 30, 1914) as a base equal to 100. Date. Actual. Production. Price Relative. Production. Price Year: 1913 1914 1915 1916 1917 1918 Months, 1917: January... February. March April May June July August September October. . . November. December. Year 125547°— 20- Tom. 478,435,297 422,703,970 442,624,426 502,518,545 551,790,563 58.5,883,000 47,967,354 41,352,711 47,868,652 41,854,320 47,086,452 46,824,646 46,291,572 47,372,226 45,107,956 48,337,726 47,689,801 44,037,147 SI. 29 1.22 1.19 1.78 3.08 2.67 3.73 3.75 3.53 3.00 3.72 3.77 2.98 3.03 2.12 2.15 2.58 2.59 551,790,563 105 92 97 110 121 128 126 108 126 no 124 123 121 124 118 127 125 116 102 140 243 210 294 295 276 236 293 297 235 239 167 169 203 204 243 34 HISTORY or PRICES DURIl^TG THE WAR. 109,188 gross tons.^ But the fearful shortage altogether of allied and neutral tonnage during 1917, which one time threatened the loss of the war, made our few domestic increases seem a pittance. The allied and neutral tonnage, through losses from submarines and ALLIED AND NEUTRAL SEAGOING TONNAGE Lost and Built Thousands • of 'gross tons l.OOO iSOO 1917 loia Allied and neutral seagoing tonnage, lost and built. — By months, February, i917, to September, 1918. other causes, began falling off seriouslj^ after our entrance into war, and it was not until May of 1918 that the building program could be made to overtake the current losses. I There follows a summary of the changes in United States seagoing merchant marine, 500 gross tons and over, as prepared by the Division of Planning and Statistics of the United States Shipping Board from Aug. 1, 1914, to Nov. 11, 1918. / \ / \ / / \ / \ 1 / \ \ 1 \ / \ / Lo .t > s* / \ / / / \ T ) \ / Bui It V / / N ■^ / V ' \ _J Period. Acquisitions. Losses. Number Gross tons Number Gross tons United States seagoing documented vessels, exclusive of seized enemy and requisitioned Dutch vessels: Aug. 1, 1911, to Apr. 5, 1917 406 95 704 1,392,887 268,969 2, 292, 531 286 68 233 529, 529 (978 davs intervening.) Apr. 6, 1917, to July 31, 1917 109 188 (116 davs intervening.) Aug. 1, 1917, to Nov. 11, 1918 507 519 (467 days intervening.) Total 1,205 3,954,387 587 1 146 236 Vessels seized from enemies by United States: Apr. 6, 1917, to July 31, 1917 96 1 640, 582 8,312 Aug. 1, 1917, to Nov, 11, 1918 9 88 081 Total.. 97 648, 894 9 88,081 Vessels requisitioned from Dutch by United States: April, 1918, to Nov. 11, 1918 87 354, 278 6 25,359 GOVERlSTMElSrT CONTROL OVER PRICES. 35 3. THE DESIRE OF THE GOVERNMENT TO MAKE ITS OWN PURCHASES AT REASONABLE COSTS. The desire of the Government to make its own purchases at rea- sonable_ costs, after the country went to war, and the enormous quan- tity of materials required, might have had a very much more disas- trous effect upon prices generally than appears upon the surface. It was patent that the taking of an enormous quantity of any material by the Government at a low figure would not of itself hold prices to the public at the same figure. The presumption was, on the other hand, that civilian competition for the residue stock would usually quicken and force open-market prices higher. The President early in the summer of 1917 saw that a control over Government purchases alone might unduly raise prices for the remaining stocks of the same commodity, and declared for a single price to the Government, the public, and the Allies. 4. THE GROWING DISCONTENT WITH RISING PRICES OF STAPLES. The war-time rise in the prices of staples prior to our entrance into war was tolerated without complaint by the labor and middle classes, in the main, because there came with those increased prices a some- what increased prosperity. A general discontent developed, however, when prices mounted higher after mobilization began reducing thou- sands of family budgets by taking men into camps. The earmarks of profiteering appeared at every turn during the spring of 1917, and embittered those less able, who were making honest sacrifices to help win the war. Many, believed it the duty of the Government to protect them from exorbitant charges for the staple commodities, and urged this course until finally the Congress set up the machinery for a control over food and fuel prices. 5. THE INFLUENCE OF BRITISH AND FRENCH CONTROLS. The initial handicap which the Government had to overcome in solving the problems that came to the fore in the spring of 1917, however obvious it may have appeared that regulation would effec- tively overcome them, was the conservative prejudice against Gov- ernment control. It can not be denied that the industries of the country at the outset generally looked askance or with fear upon in- terference with their business. The actual experience with control in England and France helped, as nothing else could, to quiet these fears. The country generally did not know the detail of European 36 HISTORY OF PRICES DURING THE WAR. regulations. But tlie American business interests came to appre- ciate, through their own and British experience with rising prices, that war-time stabilization in prices could not be sustained without help from the Government. The one-time opposition to Government regulation, as price problems became more complex, turned gradually into requests for control from the industries themselves. Part II. THE ADMINISTRATION OF PRICE CONTROLS DURING THE WAR. I. THE AGENCIES DELEGATED AND THE CONTROLS WHICH THEY EXERCISED. The Governineiit was loath' to begin any reguhitions of prices until forced into it by excessive rises in price or by the fear of erratic mar- kets. It then proceeded with caution and extended control over the prices of commodities at wholesale in piecemeal fashion. It so happened that the prices of wdieat, sugar, metals, and coal which proved the most notable instances of regulation throughout the war, were taken in hand after the epochal rises of the midsummer and had all been put under control by the end of September, 1917. The slight machinery then set up formed the nucleus for the mechanism by w-hich prices were controlled during the war. There are three methods by which to survey each formal Govern- ment price control, from the setting of a minimum wheat price by law on August 10, 1917, to the withdrawal of the last regulation after the signing of the armistice. The regulations may be arranged chrono- logically by dates upon v^hicli each commodity came under control ; they may be grouped under, natural commodity divisions; or they may be classed under the war boards which exercised the controls. The latter scheme seems altogether the most useful, since it j)ermits a chronological listing under each board at least and happens to afford a rough grouping of similar commodity controls. The various ad- ministrative boards, among which the responsibility for Government controls were distributed at the signing of the armistice, moreover, grew up in part because there were distinct kinds of control problems. The delegation of regulatory powers over prices by the President during the war was prompted by reasons of expediency rather than logic. Price-control authority in various degrees was given to the Food Administration, the Fuel Administration, the War Indus- tries Board, the Price Fixing Committee, the- War Trade Board, the War Department, the Navj^ Department, the Federal Trade Commission, and the Department of Agriculture. The Food Administration, which was created by authority con- ferred on the President in the food and fuel control act of August 10, 1917, was gradually given war-time control over virtually tlie whole 37 38 HISTORY OF PRICES DURING THE WAR. food gToup including Avlieat, flour, and bread ; sugar ; live stock and meats; poultry and dairy products; oleomargarine; cotton seed and cottonseed products; canned and dried foods; rice and rice flour; coarse grains and feedstuffs; coffee; anmionia; ice; and arsenic. The War Industries Board, which was made a division within the Council of National Defense on July 28, 1917, and a separate board on May 28, 1918, exercised control in the main over the prices of the great basic raw materials until the price fixing committee was appointed. Even after that it exercised control over lead, nickel, quicksilver, platinum, manganese, burlap, wood chemicals, and alkalis. The price- fixing committee, which was appointed by the President, took over from the War Industries Board on March 14, 1918, the task of fixing basic raw-material prices and regulated the prices of iron, steel, and tlieir products, copper, aluminum, zinc, cotton textiles, cotton linters, wool, hides, skins, and leather, hemp, lumber, building materials, and acids. The Fuel Administration, which with the Food Administra- tion was authorized by the food and fuel control act, exercised full control over the prices of anthracite and bituminous coal and coke. The War Trade Board, which was created b}' the President under authority from the espionage and trading- with-the-enemy acts, was given control over imports and exports, and sometimes used its license power indirectly to help control prices, especially of rubber, foreign wool, silk, quebracho, castor beans, and castor oil. The Army and XaA^y, by their power to requisition and commandeer, controlled prices in part for their own jDurchases. The Federal Trade Commission compiled extensive cost data for the price-control agencies and itself controlled certain paper prices. Lesser controls were exercised by the Department of Agriculture. (i) THE PRESIDENT MADE A MINISTER OF PRICE CONTROLS. i, The Congress did not grant to the President, or to any agency, blan- ket authority to work out a schematic program of general price regulation during the war. The bases in law for different regulations were varied and sometimes doubtful. The country early got at the business of regulating prices, despite its one-time caution, because the President deemed it necessary himself to become in reality a minister of price controls. There was no disposition, once tlie food and fuel control bill was law, to await specific authorization by the Congress when a war purpose made any price control imperative. The whole body of regulations relating to prices, whether specifically allowed by legislative enactment or set up loosely under war powers, took their final administrative authority from the President. It is noteworthy that even the food and fuel control act, which was the one broad grant of regulatory powers over prices made by the Congress, gave power simply to the President and made no men- GOVERNMElSrT CONTROL OVER PRICES. 39 tioii of either a Food Administration or a Fuel iVdministration. It permitted the President to control foods and fuels and he, of his own accord, appointed to represent him a Food Administrator and a Fuel Administrator. These latter, in turn, set up huge organizations as their tools of administration. \ There was scarcely a fragment of authority for the final organization of the War Industries Board, other than the President's well known letter of March 4, 1918. The price-fixing committee was appointed by the President to represent him in fixing maximum prices and without definite citation of legis- lative authority. The War Trade Board, too, was an instrument of the President. The resting of final responsibility upon the President for the administration of price controls was, in point of fact, more literal than might appear, since he himself undertook to approve and to sign a majority of the regulations. An account follows of the various agencies through which he administered price control, with an analysis of the individual controls undertaken. 2. THE FOOD ADMINISTRATION. ^ \ A chronicle in detail of the planning and administration of food control during the war can scarcely be had from any available records. The United States Food Administration can not itself re- count all of the controls which it administered, so multifarious were they in number, so informal in kind, and so altered from day to day.j The regulation of food prices was at once the most nebulous war con- trol exercised in America, and the most far-reaching and direct in its touch with the civilian and the soldier. It was extended to cover, in one form or another, virtually every staple food commodity and others of lesser importance. ■> ^ The nature of food control in this country during war time was distinguished sharply from that of raw-material control. The prices of raw materials were, in the main, definitely fixed. The prices of foods Avere controlled instead by a flexible and, often, loosely applied system of margins. The raw-material control was a very much more tangible thing than the food control. It is relatively a simple task to determine upon a line where price fixing of raw materials stops and other kinds of control begin. But a study of Government control over the prices of foodstuffs involves an account of control over production, allocation of sales, distribution, priorities of manufacture and transportation, conservation of uses, amounts allowed for export and import and the allotments of shipping space. It is not apparent at first sight whether these controls are features of price regulation or not. Only a detailed examination of each in- stance of control will give a proper basis to judge which of those controls affected particular prices, and which, therefore, merit con- sideration in a study of Government control over prices. / > C The real beginnings of food control were made the day following our entrance into war, when the Council of National Defense cabled Mr. Herbert Hoover a request that he become its advisor upon food and price problems. Mr. Hoover, in reponse to that and a later cablegram from the President, arrived at New York from Europe on May 3, 1917, and set up an office, with a stenographer, in a hotel at Washington on the following morning. ~7 C^The President was anxious to start a study of the food problem at once and, pending legislation, appointed Mr. Hoover Food Ad- ministrator of the United States on May 17. There was, meantime, no authority for any thoroughgoing regulation, but the newly ap- pointed Food Administrator, under special allowances from the 40 GOVEENMEISTT CONTEOL OVER PRICES. 41 President's emergency fund, laid tlie foundations for a food-control law. He had, by the time the food bill was passed, alreardy built up a staff of 450 persons.^ At his instance during that interim, furthermore, over 100 conferences " were held with the trade, im- portant informal agreements were reached, and contacts cemented that determined the later courses of action. (^Too little emphasis "\^ might easily be given to the length of the step, from free competi- tion and soaring prices at our declaration of war into price control. Mr. Hoover, fresh from Europe and in touch with the food, military, submarine, and shipping situations, was in a peculiarly strategic position to help hasten that transition. He impressed the country with the belief that the Allies were in more immediate need of food than of men-] that the shortage of ships made it expedient that this food come largely from North America, since shipments from Aus- tralia or Argentina would require two and three times as much ton- nage, respectively, to haul an equal amount; that the Allies would need perhaps 500,000,000 bushels of wheat beyond their own crops for the next year, and close to 1,000,000,000 bushels of all cereals; that there was prevalent a speculation in wheat, prompted by bidding for the residue available for export, which had already boosted the price of flour from $9 to $15 per barrel. These facts were told in a. straightforward manner the country over, and acted as a leaven preparing the way for Government control. The American, not ac- customed to war-time control, reacted favorably when told that his own wheat could be exported across the Atlantic, and made into bread that sold there under Government control, at a price in Bel- gium amounting to 60 per cent of the price which he paid at New York ; in France, at a price 40 per cent below his own ; and in Eng- land at a price 30 per cent below his own. (^ This propaganda, backed ^ " ■-- strongly by the President, and the general confidence in Mr. Hoover ;^y. < v inspired by his long and intimate contact with food control in Bel- gium, France, and Ejigland, (was the force which got the United <- States promptly into the business of controlling her foodstuffs by the summer of 1917. , (The debates in Congress upon the so-called Lever bill began im- <;^ mediately after its introduction on June 11, and dragged on, as the President believed in a "tedious and vexatious" manner, for the whole of two months. ] But, pressing as the wheat and sugar situa- \. ^ tions seemed then for more immediate action, the long drawn-out hearings and discussions during the summer did teach the Govern- ment and the country much about their problem. (^The bill was -^C" finally made into the food-control act on August 10, 1917. That act set forth the basis of all later food control, granted wide powers to the President under which he created the United States Food Ad- ministration, and fi^ed a minimum price for wheat. It gave legal > 42 HISTORY OF PRICES DURIIsTG THE WAR. status, really, to all that Mr. Hoover had done at Washington of an informal character in the three months previous. There were pro- posed at the Capitol scores of amendments, some of which were written into the bill and gave it different character, but altogether the law as signed by the President set up the kind of control for ^ which he and Mr. Hoover had long asked.) p' (i)fTHE FOOD-CONTROL ACT. N The food-control act, made from the Lever bill, and sometimes called the food and fuel control act, was the most important measure for controlling jprices which the United States took during the war or had ever taken. It was the basis for the whole of war-time control of food and fuel as well. It, more than any other statute, requires an analysis in this inquiry. The Purposes of the Act. ' The declared purpose of the act, and the sweeping control which it held in contemplation, can be pictured no more impressively than through a repetition of the terminology written into the law. The act states as its aim — to assure an adequate supply and equitable distribution, and to facilitate the movement, of foods, feeds, fuel, including fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, implements, machinery, and equip- ment required for the actual production of foods, feeds, and fuel, hereafter in this act called necessaries ; to prevent, locally or generally, scarcity, monopoli- zation, hoarding, injurious speculation, manipulations, and private controls affecting such supply, distribution, and movement ; and to establish and main- tain governmental control of such necessaries during the war — and authorizes the President to issue any regulations or orders neces- sary to carry out its provisions.N It makes the purposes of Congress even more definite, by the specific acts which it declares unlawful — it is hereby made unlawful for any person willfully to destroy any neces- saries for the purpose of enhancing the price or restricting the supply thereof ; knowingly to commit waste or willfully to permit preventable deterioration of any necessaries in or in connection with their production, manufacture, or distribution ; to hoard, as defined in section 6 of this act, any necessaries ; to monopolize or attempt to monopolize, either locally or generally, any neces- saries ; to engage in any discriminatory and unfair, or any deceptive or waste- ful practice or device, or to make any unjust or unreasonable rate or charge, in handling or dealing in or with any necessaries; to conspire, combine, agree, or arrange with any other person, (a) to limit the facilities for transporting, producing, harvesting, manufacturing, supplying, storing, or dealing in any necessaries; (&) to restrict the supply of any necessaries; (c) to restrict dis- tribution of any necessaries; {d) to prevent, limit, or lessen the manufacture or production of any necessaries in order to enhance the price thereof; or (e) to exact excessive prices for any necessaries, or to aid or abet the doing of any act made unlawful by this section — and which comprehend very nearly all private abuses pertinent to the war-time food problem. GOVERNMENT CONTROL OVER PRICES. 43 \ The outstanding feature of the whole act k the kind of control by <^ which it propose^ to accomplish these ends.^ The Congress, in full knowledge of the various experiences of England and France, deter- mined finally that the domestic situation lent itself more readily to a system of license control over the manufacture and distribution of foods than to a system either of fixed or maximum prices. The transition to a war-time basis, it was felt, should be made more gradual than either of the latter alternatives would permit. It was believed, too, that the patriotism of the people could be relied upon to carry through the less rigid program of control. Other features of especial note in the act were the powers which it delegated to the President to requisition " necessaries " ; to purchase or store wheat, flour, meal, beans, and potatoes; to take over for use or operation by the Government factories or plants manufacturing "necessaries"; to regulate or prohibit operations of exchanges and boards of trade ; to commandeer distilled spirits; and to fix the prices of coal and coke. (^It was this law also which guaranteed a minimum price of ^-^ $2 per bushel for wheat, binding until May, 1919, and provided that the President might fix a higher price at his discretion.j The License System. (.The backbone of the administration of war-time control over foods lay in the license system and the many rules and regulations which were imposed upon all who came under it. The law itself set up control over no particular commodities, with the exception of wheat. It simply gave the President power, by issuing proclamations from time to time, to bring under, license control dealers in those com- modities which he and the Food Administrator wanted to regulate. The name of every class of food that was controlled, presumably, may be found in the different proclamations made by the President between August 10, 1917, and the close of war, in which he declared that dealers in the foodstuffs specified must secure a license from the Food Administration before doing further business. The first of these proclamations, aside from the Executive order issued the day the law was signed creating the Food Administration and appoint- ing Herbert Hoover as Food Administrator, was issued August 14, 1917, and called for the licensing of wheat and rye elevators and millers. By all odds the most important of all the proclamations was that of October 8, 1917, which called in substance for the licensing of every dealer in any staple food commodity. It provided for the licensing of manufacturers and distributors of wheat, rye, barley, flours, oats, oatmeal, corn, cornmeal, rice, dried beans or peas, cot- ton seed, vegetable oils, lard, milk, butter, cheese, beef, pork, mutton, poultry, eggs, fish, fruits, vegetables, canned goods, dried fruits, and sugar. Proclamation by proclamation the list of dealers from whom < 44 HISTORY or PRICES DURING THE WAR, licenses were required was extended, until at the end virtually the whole food group was under license control.^ The discretion left by the act to the administrators for the deter- mination of dealers who may be licensed was exceeded in scope only by that left to them for the determination of foods that may be put under license control. The law in no sense tied the hands of the food administrators in the latter respect. It gave them power to control any and all foods or feeds. There were, moreover, but few dealers in those foods or feeds whom they might not bring under license control. The substance of the law was that all persons en- gaged in the importation, manufacture, storage, mining, or distribu- tion of any necessaries might be licensed. But two exceptions espe- cially important were made to that general rule. The law specifically exempted from license control all farm and garden producers and all retailers whose gross annual sales fell below $100,000. ^ 1 The President signed 8 Executive orders and 19 proclamations under this act from Aug. 10, 1917, to Nov. 25, 1918, as follows: EXECUTIVE ORDEES. Aug. 10, 1917. Providing for organization of United States Food Administration. Aug. 14, 1917. Providing for organization of Food Administration Grain Corporation. Sept. 2, 1917. Directing Treasm-y Department to enforce sees. 15 and 16 of food-control act. Sept. 27, 1917. Providing for appointment of secretaries to Federal food administra- tors without civil-service examination. Oct. 23, 1917. Providing for requisitioning of foods and feeds. Nov. 10, 1917. Amending civil-service regulations. Nov. 27, 1917, Authorizing United States Food Administrator to find that fair profit is normal average prewar profit. June 21, 1918. Designating Food Administration Grain Corporation as agency of United States to purchase wheat, and directing that capital stock be increased. PROCLAMATIONS. Aug. 14, 1917. Licensing of wheat and rye elevators and millers. Sept. 7, 1917. Licensing of importers, manufacturers, and refiners of sugar, sugar sirups, and molasses. Oct. 8, 1917. Licensing of manufacturers and distributors of certain food commodities. Nov. 7, 1917. Licensing bakers. Nov. 15, 1917. Licensing of arsenic industry. Dec. 8, 1917. Limiting alcoholic content of malt liquor. .Tan. 3, 1918. Licensing of ammonia industry. .Tan. 10, 1918. Licensing the importation, manufacture, storage, and distribution of feeds and certain other food commodities. .Tan. 18, 1918. Conservation of wheat. .Tan. 30, 1918. Licensing of bakers not already licensed, and importers and distributors of green coffee. Feb. 21, 1918. Fixing guaranteed prices for 1918 wheat crop. Feb. 25, 1918. Licensing of fertilizer industry. May 14, 1918. Licensing of farm-equipment industry. May 14, 1918. Licensing packers of canned tuna and others. June 18, 1918. Licensing of stockyards. Sept. 2, 1918. Fixing guaranteed prices for 1919 wheat crop. Sept. 6, 1918. Licensing of dealers in live or dead cattle, sheep, swine, or goats. Sept. 16, 1918. Prohibiting manufacture of malt liquors. Nov. 2, 1918. Licensing operators of warehouses storing goods and feeds for hire and others. GOVEElSrMElSrT CONTROL OVER PRICES. 45 The Teeth of the Statute. ( There were put into the statute itself, quite apart from any regu- -C^. lations which the Food Administration might later set up under it, enforcement clauses which were powerful weapons in the admin- istration of its provisions. ', It contained the threat of a fine of $5,000 or $10,000 against violators of nearly every section in the law, or imprisonment for not more than four or five years. The laAv, in the famous section 4, specifically declared it to be unlawful to destroy any necessaries for the purpose of enhancing the price; to waste necessaries ; to hoard necessaries ; to monopolize necessaries ; to make any unjust or unreasonable rate or charge in handling neces- saries ; to restrict the facilities for transporting, producing, harvest- ing, manufacturing, supplying, storing, or dealing in necessaries; to restrict the distribution of necessaries ; or'to exact excessive prices for any necessaries. This section, though the most sweeping in its statement of unlawful practices, left some ambiguity as to penalties for its enforcement. There was, moreover, written into the law an authorization for the President to requisition foods, and another for him to make purchases. Those powers, however little exercised, stood always as effective potential instruments. But, quite aside / • from these penalties in the law, there was, of course, a much more effective instrument in the appeal to a war-time spirit of cooperation. By no other price-control agency at Washington were there set up so many legal and patriotism-arousing devices for the enforcement of their regulations.") 'C- / The Fixing of a Minimum Price for T^^heat. j /', V^The fixing of a minimum price for wheat)is another phase of the food-control act which (Reserves especial note) both because of its own ^ x merit and(4)ecause it represents a distinct break in policy with the >r v y rest of the act. Wheat was the only commodity for which the law fixed a price. It was the onlj^ food commodity for which the law specifically stated that a price might be fixed. But even the license section, so many believe, opened a way for fixing food prices to be charged by licensees. In any case, there was left no doubt what was to be done about wheat. A definite guarantee of $2 per bushel for all No. 1 Northern spring wheat, at Chicago, was made for deliveries up to May 1, 1919. The prices of equivalent wheats or other stand- ard grades at various markets were to be figured, upon that scale, by the official grain standards established under the United States grain-standards act. The President, while not permitted to set aside this guaranteed minimum price fixed in law, was given > 46 HISTORY OF PRICES DURING THE WAR. power to increase the guaranteed minimum from time to time to encourage production. In point of fact he did increase that mini- mum to $2.20 for the 1918 crop, by proclamation on February 21, 1918, and again to $2.26, for the 1919 crop, by proclamation on Sep- tember 2, 1918. The effectiveness of the guarantee was assured by an authorization to purchase any wheat, if occasion demanded, for which a minimum price had been guaranteed.^ The food-control bill was enacted into law only through the pressure of war emergencies and, in keeping with the arguments which were used for its passage, contains a clause that it shall cease to be in effect when the President shall proclaim that the war against Germany has terminated. (2) THE POLICIES OF THE FOOD ADMINISTRATOR. J The considerable leeway in control over food which the act gave to the President makes peculiarly important an analysis in full of the policies of his Food Administrator. The act, with a single con- spicuous exception, left wide powers with the President which he might or might not use. The policies of food control in which Mr. Herbert Hoover believed, therefore, can not but call for careful consideration. / Mr. Hoover returned to this country with his mind fully adjusted to and familiar with the several experiences with food control in in Europe. The President, after issuing his own general program for food control on May 19, 1917, depended upon the advice and leadership of Mr. Hoover for establishing a proper administration of control. There was scarcely a limit of regulatory experience which had not been tried out abroad. The British food controller at our entrance into war, indeed, had already been given power to set minimum or maximum prices and to fix prices absolutely. Those facts were outlined to the Government by Mr. Hoover within a week after his return.^ It is noteworthy in the light of these and later developments that Mr. Hoover upon his arrival laid before the President these five cardinal principles of food control: First, that the food problem is one rather of wise administration than "dictatorship"; second, that administration can be carried out largely through constituted agencies of producers, distributors, and consumers ; third, the org;anization of the community for volun- teer conservation of foodstuffs; fourth, that all important positions, so far as may be, shall be filled with volunteers; and fifth, the centering of independent responsibility for food administration directly under the President, with cooperation from the Department 1 Letter from Mr. Hoover to the Secretary of State of date May 10, 1917. GOVERlSrMElSrT CONTROL OVER PRICES. 47 of Agriculture, the Department of Commerce, the Federal Trade Commission, and the railway executives.^ Mr. Hoover at the outset of his administration settled upon the policies of control for which he intended to work and upon the gen- ^(gresident Wilson, on May 19, 1917,) soon after the return of Mr. Hoover from "^ Europe,i'appointed Mr. Hoover as Food Administrator pending legislation and issued the following program for food control : . " It is very desirable, in order to prevent misunderstandings or alarms and to assure cooperation in a vital matter, that the country should understand exactly the scope and purpose of the very great powers which I have thought it necessary in the circumstances to ask Congress to put in my hands with regard to our food supplies. Those powers are very great, indeed, but they are no greater than it has proven necessary to lodge in the other Governments which are conducting this momentous war, and their object Is stimulation and conservation, not arbitrary restraint or injurious interference with the normal processes of production. They are intended to benefit and assist the farmer and all those who play a legitimate part in the 'preparation, distribution, and marketing of foodstuffs. • ing with each other,, :.> The enforcement of the wheat price.— ^n the beginning, an indirect means had to be found to enforce the wheat price. Section 14 of the food-control act did not grant authority to fix a guaranteed price above the $2 minimum, except for the purpose of increasing pro- duction, consequently this did not apply to the 1917 crop. Under sec- tion 2, however, the President could enter into A^oluntary agreements; under section 5 he could license and prescribe regulations for persons engaged in the importation, manufacture, storage, mining, or distri- 1 The chairman of the milling division of the Food Administration says that the " fair " wheat price was neither a fixed price nor a maximum price ; that Congress did not give authority for definite fixing of a wheat price, and that certain millers paid more for wheat than the price named by the fair-price committee. The principal millers of the country, however, entered into agreements with the Food Administration to the effect that they would not overbid the Government " fair price." The millers kept their agree- ments, the Food Administration Grain Corporation itself bought wheat at the " fair price," and the nonagreement millers who made payments in excess of the " fair price " were not strong enough to be serious menaces to the plan of Government price control. The " fair price " became in effect a maximum price as well as a stable price. This etatement Is borne out by the table of wheat prices on another page of this bulletin, as well as by the price tables in the separate bulletin on " Wheat and wheat products." GOVEKl^MEIsrT CONTEOL OVER PRICES. 65 bution of any necessaries; under section 10 he could requisition supplies needed for any public use; and under section 11 he could buy and sell wheat, flour, meal, beans, and potatoes.J) /Voluntary agreements had been made with the wheat and flour trades duriiig the days of informal control, before the passage of the food-control act, and the continuation of this method, by virtue of section 2, seemed practical. Although the Food Administrator pos- sessed an alternative in his announced intention to purchase the entire crop if necessarv to maintain the " fair price," this course would have required an enormous amount of capital, and the administration preferred to interfere as little as necessary with the ordinary market activities. Unlimited exercise of the license power was a second alternative, and as time progressed this method was resorted to, but in the beginning the Food Administration did not realize how much authority it really possessed^) Little difficulty was encduntered in effecting the voluntary agree- ments The grain dealers, like thousands of other business men of the country, were willing to make any sacrifice necessary to win the war. The cooperative spirit of this group is shown by the fol- lowing resolution adopted at a conference of over 100 representatives of the grain and elevator trades of the country held at the offices of the Food Administration August 15, 1917 : Realizing that the operation of Government control in wheats and rye is essential under present war influences in order to adequately protect our home supply and furnish our Allies with the aid we owe, and realizing that the estab- lishment of an efficient Government plan of operation means to all of us curtail- ment of our business and to some of us actual retirement from active business during such period, we do express our pride in the character of service tendered by the grain trade in the sacrifice by these men of ability who are placing their experience and energy at the service of their Government, and that we approve the general plan of operation as explained to us to-day as being sound, workable, and necessary, and in its general lines it appears to us as being the most effective and just plan of operation which we can conceive. The flour milling interests of the country also pledged themselves to take any steps, in regard to their industry, which might be found necessary for the winning of the war. The Food Administration announced, therefore, that it expected to accomplish its objectives by voluntary cooperation. It had or- ganized a Grain Corporation, headed by practical grain men, and through this corporation the buying was to be directed. Voluntary agreements were entered into between the flour mills on the one hand and the Food Administration and Grain Corporation on the other, to the effect that the mills should not pay more for wheat than the so-called "fair price." The Grain Corporation agreed to endeavor to supply millers with wheat on the basis of their average capacity, so far as the limitations of the 1917 harvest would permit. 125547°— 20^— 5 C-y^ ^1 66 HISTORY OF PRICES DURING THE WAR. Over 3,000 millers cooperated in the voluntary agreements. Up to November 27, 1917, the signed agreements received at the Food Administration offices represented five-sixths of the milling capacity of the country. There were several inducementsi to the millers to enter into the agreements: (1) patriotic motives prompted them to assist the Gov- ernment; (2) the milling division of the Food Administration was administered by millers, all of whom were serving without salaries; (3) the Grain Corporation, through the license powers explained below, controlled the wheat supplies of the country; (4) the Grain Corporation guaranteed the miller against loss by decline in value of the unsold wheat and flour; (5) the relative position of mills in the industry would be maintained; (6) the permissible profit of 25 cents a barrel for the manufacture of flour was attractive if it meant 25 cents net. While it is true that some mills did not accede to the agreement, they were decidedly in the minority. Their operations, unless they were very small mills, were reasonably well oonitroUed, moreover, by the license requirements which the Government promulgated even before it asked the millers formally to enter voluntary agreement.^ Licensing millers and elevators. — President Wilson issued a proc- lamation on August 14, 1917, requiring storers and distributors of wheat and rye as well as persons manufacturing products of wheat or rye to procure licenses before September 1. Mills with a daily capacity of less than 100 barrels were exempted from this order. Effective November 1, another proclamation extended the license j)rovision to all mills having a daily capacity of 75 barrels or over, and before February 15, 1918, every mill in the country was re- quired to be licensed. Practically every rule which had been applied to the voluntary agreement mills was applied to the license mills with the exception that the latter were not forbidden to pay more than the "fair price" for wheat. This matter was taken care of in another way, nevertheless, for in regard to the limitation of the miller's profit to 25 cents per barrel on flour and 50 cents per ton on feed, it was specified that in calculating his cost items no miller should include more for the cost of wheat than the customary mar- ket price. /Under the license clause reasonable profits could be defined and unreasonable profits prohibited, and the license of any person could be revc^ked as a penalty for engaging in an unfair practice. This placed almost absolute power over certain industries in the hands of the Government, and after Julj^, 1918, the Food Administration y came to rely wholly upon this section of the law for its authority. \ ^ A form letter explaining the voluntary agreement plan and asking for cooperation was sent out on Aug. 29, 1917, to such millers as had not already been reached through the millers' committee. GOVERNMENT CONTROL, OVER PRICES. 67 C With the passing of the voluntary agreements, there was no defi- ^ nite price specified at which the elevators and mills should purchase wheat. In the absence of any prohibition to the contrary, it would seem that purchasers might have paid any price they desired.^ But the Food Administration had indirect means, as well as definite in- tentions, of maintaining the "fair price." It only stated that it would undertake to guard this price by buying wheat in the princi- pal primary markets. Of course, the Government held a dominant position as the chief buyer in the market, and in case of necessity it could have taken the entire crop. Its indirect method, however, was simpler.) This is explained fully under Flour Control, bufc^the .^ plan, in brie^, was to fix a maximum price for flour at each mill, based upon the Government "fair price" for wheat. Thus if a miller paid more than the '^fair price" for wheat, he would sacrifice his profit on flour, and if he tried to buy for less the Government would^__ bid against him. ) / The 1919 guaranteed pnc^- .-(President Wilson, by proclamation on^- -" . September 22, 1918, extended the guaranteed price of $2.26 for No. 1 * Northern spring wheat at Chicago to the 1919 crop, if offered for sale before June 1, 1920.^ The termination of the war, even if offi- cially announced by the President, was not to terminate any obliga- ^ tion accruing or accrued under this proclamation. This position was taken by the Food Administration, and was ratified by Congress and the President in providing and approving an appropriation of $1,000,000,000 to make good the guaranty. This means that if the price of wheat goes down before June 1, 1920, the Government must pay to the wheat grower, out of the billion-dollar fund the differ- ence between the market price and the guaranteed price. Producers generally satis-fled.— k.^ harvest approached and the farmer observed a declining market on the strength of anticipated price regulation by the Government, he became fearful lest his in- terest would be overlooked. Why could wheat not sell as well for $3 in September as in May? "Many farmers were discontented! because they could not sell their entire crop at the high prices made I by the uncontrolled influences which had dominated when the pre- I vious year's crop had been exhausted and the market was without any balance wheel. The crop was slow to move." ^ Farmers of Min- nesota and the Dakotas at a conference August 26, 1917, advocated a Government fixed minimum price of $3 a bushel. Agitation did not continue long, however, after the " fair price " was announced. The decline of flour prices to a level commensurate with wheat prices helped to put the farmer in a pacific mood. He also argued that since the wheat price was to remain stable for a year he could rush iThe Wheat and Fl9ur Trade under Food Administration Control, by Wilfred Eldred. Quarterly Journal of Economics, November, 1918. 68 HISTORY OF PRICES DURING THE WAR. his oats to market and take care of his corn crop before selling his wheat. Then he found that even at $2.20 he could realize more profit on wheat than had ever been the case before. His final estimate of the Government price, therefore, was conciliatory. Final determina- tion of the farmer's attitude ma}^ be drawn from his acts in sowing more Avheat. The acreage sown in the fall of 1916 was 40,534,000; in 1917 it was 42,301,000; and the preliminary estimate for 1918 was 49.201,000.1 Stability of the wheat price a reality. — Reference to the wheat quotations in any terminal market will show an almost amazing stability of prices from August 30, 1917, when the " fair price " was announced, until after the armistice was signed in November, 1918. No. 2 Eed Winter Avheat in Chicago, for instance, varies only three- fourths of a cent from September, 1917, to the end of June, 1918.^ It Avas June 21, 1918, that the President advanced the price 6 cents a bushel, and the July to November market price is seen to be from 6^ • cents to I^Q cents above the June price. The Food Administration, therefore, did for wheat what it started out to do, and accomplished, that result without resorting to the alternative of buying the entire crop. Such effective control over wheat made possible a large measure of control over flour, even though no express authority was given by i^tatute to fix flour prices. How this was accomplished will now be explained. Close relation of flour and 'wheat. — The demand for wheat is almost entirely for flour manufacture. It is a custom with the flour market to fluctuate from day to day in conformity with wheat fluc- tuations. Even though a miller may have purchased his entire year's supply of wheat in September, the fluctuations of wheat during the following months will affect the price of this miller's flour. Flour prices are ordinarily based on the replacement value of wheat. This makes clear the flour problem in connection with the wheat problem in the spring of 1917. European demand for Avheat was likewise a demand for flour. The short wheat crop was disastrous in that it meant a scarcity of flour, and the wild fluctua- tions in wheat prices were practically duplicated in flour quotations. When wheat was at its highest point in May of that year, having advanced $1 a bushel in two months, flour was at the maximum of $14.88 a barrel (monthly average), having risen from $9.63 a barrel in March. The flour shortage in the spring and summer of 1917 was partly due to fear on the part of the millers. They did not dare to stock up with wheat at the high prices then prevailing because if the Gov- ^ Bureau of Crop Estimates, Department of Agriculture. 2 See Wheat and Wheat Products, by Paul E. Peltason (W. I. B. Price Bulletin No. 9). GOVERNMENT CONTEOL OVEE PRICES. 69 ernment should fix the price at a lowei* level they would lose heavily on their sales. It was aggravated, also, by the heavy buying of consumers early in the spring when prices were high and showing prospects of going higher. Control exercised over flour. — The flour and wheat problems were attacked simultaneously by the Food Administration, but by differ- ent methods. Congress had not named a price for flour, nor had it given specific power to the President to do so. From the beginning the Food Administration took the ground that it had no authority to fix basic flour prices. With the price of wheat under control, however, and with authority to enter into voluntary agreements ; to compel millers, distributors, and dealers to procure licenses, the conditions of which were drafted by the issuing party to the con- tract; to control business profits even to the extent of specifying what were reasonable profits; and to buy and sell flour for cash at reasonable prices, there could have been little question as to the con- trol of the flour industry by the Food Administration. At first the Food Administration adopted the voluntary agree- ment plan, but in connection with this it used its license power and its authority to determine fair profits. The right to buy and sell flour at reasonable prices was not used except in the cases of exports and of use by the Government or governmental agencies. Voluntary agreements made with the millers in regard to the wheat trade applied also to the milling industry. This was true also of the license practices which have been explained in the wheat discussion above. One additional provision which applied only to flour was that profits must be limited to 25 cents a barrel. Considerable difficulty was experienced in determining costs. To have accomplished this task completely would have required an army of auditors at work constantly on the monthly reports .which millers were compelled to submit. But since the cost-plus method was to be followed in determining the selling price some uniform method of figuring costs must be adopted, and before November, 1917, the fol- lowing rule had been presented to the mills : In calculating profits the cost of flour, bulk, at the mill shall be determined as the cost of clean wheat used multiplied by the actual amount of wheat used (which in no event shall be in excess of 285 pounds of cleaned, 60 pounds per bushel, wheat to the barrel) less the amount secured from the sale of feed (ex- cluding the profit derived from the sale of feed not to exceed 50 cents per ton as above) plus the actual proven cost of production (which shall not include interest to investment and marketing.) In the fall of 1917, after the price of wheat under Government con- trol became stabilized at a point much lower than had prevailed in the spring and summer markets the rush of milling was so great that many mills did not or could not reduce the price of flour fast enough 70 HISTORY OF PRICES DURIIsTG THE WAR. to keep profits within the margin of 25 cents a barrel. At the end of the crop year (June 30, 1918), and in some cases earlier than that date, those mills which had made profits above the maximum of 25 cents a barrel were compelled to return the surplus to the Government.^ Other difficulties met in the operation of the cost-plus system were the padding of cost reports and the setting up of jobbing depart- ments in some mills in order to get both a miller's profit and a job- ber's profit on their product. Although this latter practice was per- mitted under the license rules, it proved to be most unsatisfactory. By virtue of a presidential proclamation of October 8, 1917, all wholesalers and retailers doing a business of over $100,000 a year were required to take out licenses prior to November 1. The purposes of the ruling were (1) to limit the prices charged by every licensee to a reasonable margin over expenses and forbid the acquisition of speculative profits from a rising market; (2) to keep all food com- modities moving in as direct a line and with as little delay as prac- ticable to the consumtr; and (3) to limit, as far as practicable, con- tracts for future delivery. Hoarding and speculation were not per- mitted under these rules. Licensees were limited to a 30 days' supply and notice was served that a violation of the rules constituted cause for revoking the license as well as subjecting the offender to criminal penalties. Control of flour in 1918. — ^The plan of controlling flour millers' margins was changed at the beginning of the 1918 crop year. Volun- tary agreements with all flour mills were canceled as of June 29, 1918, and the Milling Division of the Food Administration went out of existence on June 30'. Flour was to be controlled through a maxi- mum "fair price" for the bulk product named f. o. b. mill at every producing pcM.nt in the United States. This required the sending out of 8,500 individual price schedules, one to every licensed mill (which meant every mill) in the country. It was a physical impossi- bility to figure out this large number of schedules in time to get them to the mills on July 1, consequently there was an interim from July 1 until July 24 for which a subsitute plan of price control had to bo announced and enforced. For this period of slightly more than three weeks a bulk flour basic price was named at 56 milling points of the United States, and each mill, regardless of location, was per- mitted to put a sale price on bulk flour equal to the price at the nearest one of these 56 basic points, less freight to that city. With the sending out of the maximum "fair price" schedules, effective July 24, 1918, a new era came in flour control. No longer lAt the present time (May 15, 1919) the Food Administration still has auditors in the field to check up expense items of mills. Although a' few mills have retained their excess profits for two years, they will now be compelled to part with them. GOVER]CirME]SrT CONTROL. OVER PRICES. 71 was there an opportunity for padded cost reports. Not only had each mill been given a schedule showing the price of bulk flour at its door, but every State food administrator and zone agent had a copy of the schedule to assist him in enforcing this fair price. Maximum prices were in effect, with the Government naming each mill's maxi- mum charge. The bulk flour price for each mill was arrived at by taking the "fair i^rice" of wheat at the nearest terminal, plus freight to the mill, plus $1.10, called a conversion charge (to cover cost of milling and profit) , minus the feed return. For the guidance of the miller, there was issued a table of "Maxi- mum permissible margins over bases on various classes of sale." Wlien selling flour to one of the classes of customers on this table (and all classes were included) he might add to the schedule price the margin permitted for that class, plus items to cover freight and cost of sacks. In other words, he would make out a table like the follow- ing, showing: Method of calculating viaximum, delivered, fair price flour per 'barrel. (a) Maximum fair price bulk mill as per schedule No. 000 •_ $10.50 (&) Maximum differential, if any, on sale of class C .25 (c) Freight charge (including freight fax) .40 (d) Cost of sacks (98 pounds cotton for flour) . 60 Total 11.75 Also he must place on the contract a copy of the reasonable price schedule furnished his mill by the Food Administration. On the in- voice form which must be executed in every sale of over 15 barrels of flour there must likewise be a copy of the reasonable price schedule and the flour charge items appearing under "Method of calculating invoice price." These precautions and requirements made the flour-control plan a simple, self-policing system. If a dealer anywhere felt that a miller had charged too much for flour he could submit the records of his purchase to the nearest Federal food administrator or zone agent and learn immediately whether the " fair-price " rules had been violated. After March 1, 1918, mills were permitted to make but one grade of flour (called 100 per cent straight). Two months previous to this date the quantity of wheat which they were allowed to use for a barrel of flour was reduced from 285 pounds to 264 pounds. All regulations, whether for millers, bakefs, or dealers, were based upon the license power, which sanctioned the revocation of license in any case of disobedience. Conservation measures. — Conservation measures, of course, went hand in hand with price control, for it was by inducing saving that 72 HISTORY OF PEICES DUEIISTG THE WAR. the Food Administration helped in some measure to offset the short supply of wheat and flour. At the outset reliance was placed upon voluntary conservation, stimulated by a wide-spread propaganda carried on by means of newspapers and billboards. The results were not satisfactory, however, and in January, 1918, President "Wilson appealed to the people to reduce still further their consump- tion of food. About the same time the Food Administration issued rules, effective February 24, 1918, requiring bakers to mix substi- tutes with wheat flour in the ratio of 1 to 4, and after January 28 buyers at retail were required to purchase 1 pound of a substitute flour with every pound of wheat flour. Then by requisition 30 per cent, and later 45 per cent, of the output of the larger mills was taken between January and June, 1918, in order to get flour for export to the Allies.^ It was only after the wheat flour substitute rule was applied that national saving was effective, the total con- sumption of wheat flour in the United States during the eight months from July 1, 1917, to February 28, 1918, being considerably in excess of the corresponding figures during the three years imme- diately preceding the war.^ Results of flour control. — Although the Food Administration dis- claimed authority before July, 1918, to fix flour prices, market quota- tions show that the flour price was kept relatively lower than the wheat price. Only once during the period of Government control did the flour curve run up close to the wheat curve, and that was during July, 1918, after the Food Administration had abandoned the 1917 plan of control and before it had launched the 1918 plan. Considering that the wheat price was practically stationary through- out the price-control period, and that before June, 1917, the price of flour had frequently been above that of wheat, this accomplish- ment in price control bears testimony to the effectiveness of the Food Administration effort. Further evidence of the success of flour control is gained from an examination of the flour market after the food regulations were discontinued. On December 19, 1918, the Food Administration an- nounced that the public was no longer required to purchase wheat flour substitutes, and soon thereafter all flour regulations were abandoned. The effect is seen in market quotations. The January price. rose 6| cents a barrel, the February price 34 cents a barrel, and in March the price was $1 a barrel higher than it had been at the signing of the armistice or for four months preceding that event. Exercising hread control. — Bread is not as sensitive to ordinary market influences as are wheat and flour. Wlien wheat and flour 1 Tte Wheat and Flonr Trade under Food Administration Control, by Wilfred Eldred. 2 Estimates of United States Food Administration, Statistical. Division, Information Service, Bulletin No. 1045. GOVERNMENT CONTROL, OVER PRICES. 73 were at the top of a runaway market in May, 1917, bread, which is the premier among all wheat and flour products, was climbing only one-third as fast as wheat and flour. It was not alarmingly scarce from day to day, and its advance was because of high cost of production rather than fear of a famine. In order to prevent profiteering in bread, it was announced by presidential proclamation on November 7, 1917, that all bakers using as much as 10 barrels of flour a month must take out licenses before December 10. This regulation included hotels, restaurants, other public eating places, and clubs serving bread or other bakery products of their own baking. Before February 4, 1918, all unlicensed bakers using as much as three barrels of flour a month were required to procure licenses. One of the first tasks attempted by the Baking Division of the Food Administration was to standardize the baker's bread of th© country. By fixing the weight of the loaf at 1 pound minimum, with 14, 2, and 4 pound loaves, and with a stabilized price for flour, it was anticipated that the variables in bread would be largely elimi- nated and competition would be centralized upon price. Loaves of other sizes were authorized later. The Food Administration announced that it had no power to fix bread prices, but it could limit profits, determine fair profits, and issue regulations for its licensees. It curtailed the use of ingredients other than flour, yeast, and salt, reaffirmed an earlier request by the commercial economy committee of the Council of National Defense that the bakers refuse to receive returned bread and urged bakeries and stores to use as far as possible the " cash-and-carry " system. No change was made in the policy not to fix bread prices, regula- tion being effected through the stabilization of flour prices and the control of bakers' profits. Rebates or discounts to favored customers were classed as unfair practices. The Food Administration, acting under the license clause, could hUve in effect fixed maximum prices for bread, but this was not done. The power to revoke bakers' licenses was found sufficient to enforce the control desired. Occasionally other weapons were used, but the suspension of the license for a few days generally proved ample. Results of hread control, — Licensing the bakers caused the bread price to decline 15 per cent in December, 1917. The price remained at this level (6.4 cents a pound loaf) for four months, after which it came up to 7.78 cents a loaf, or to a point 3 per cent above the price for the six months immediately preceding Government regulation of the baking industry. From March, 1918, until the close of hos- tilities in Europe the price remained at practically the same level. In other words, with the exception of one prominent decline when the Government first began to apply supervision, the price of bread 74 HISTORY OF PRICES DURING THE WAR. averaged somewhat higher after the bakers were licensed than it had been when wheat and flour were at their highest points in May, 1917. With the relaxation of Food Administration restrictions, about January 1, 1919, the bread price advanced to 8.5 cents, remaining at this figure during the first four months of 1919. Thus, as soon as the Food Administration influence was withdrawn, the price went up 11 per cent. Summary. — Government control of prices as a war emergency measure took various forms in its relation to wheat, flour, and bread. The wheat price originally was fixed by statute as a minimum price. A committee of the executive department then determined what would be a " fair price " (20 cents above the minimum) , and this was announced and enforced as both a minimum and maximum price. It was practically an invariable price. In the beginning the price was maintained by means of voluntary agreements between the Food Ad- ministration on the one hand and the elevators and mills on the other. Ultimately the wheat price of $2.26 a bushel at Chicago was treated merely as a " fair price," neither minimum nor maximum. The " fair price " was made practically absolute by fixing in July, 1918, a maximum fair price for flour at each mill, and basing the prices named in this maximum fair price schedule on the governmental " fair price " for wheat at the various interior primary markets, with allowances for freight to the milling point. During the first year of Food Administration history the price of flour was not fixed, but mills agreed to buy wheat only at the " fair price," and on the 1917 crop manufacturers' profits were limited to 25 cents a barrel on flour. Beginning July 24, 1918, a maximum fair price was enforced for flour. It was by virtue of the Government's power to issue and regu- late trade licenses that this control was exercised. Prices were never fixed for bread. Control was exercised under the license power by limiting profits, preventing unfair practices, and standardizing the weight of the loaf. The three charts presented here represent wholesale wheat, flour, and bread prices in Chicago, Minneapolis, and New York, respec- tively, from January 1, 1913, to December 31, 1918. These curves are made from relative prices on a comparable scale. It will be observed that the flour curve drops below the wheat curve soon after the pas- sage of the food control act, and that it remains below throughout the period of Government control. It is not so regular as the wheat line, having a downward swing in the early months of 1918 and an abrupt ascent in July while a new plan of control was being held in abeyance. The two curves are similar, however, and far below the high points at the beginning of the war. It is interesting to note that after the middle of 1916, flour, which is not a finished product, went up much faster and further than GOVEENMENT COISTTROL OVER PRICES. 75 is m 1 1 g 8 s § a i 8 3 1 5 CTV L l -""as I OD [ I 5 "° "^ "1 c 5 "" ^ • -g-^ j'" ^ ^E ^ _ Mw: ? g S s T a i S 8 £» « ^ Jil ^' IS C3 a a 03 c3 O ^ -5 ^ . 5 a ^ '^ 2 M >i CO ^ SQ -^ 76 HISTORY OF PRICES DURING THE WAR. bread. Furthermore, the advent of the Government as a price fixer for flour brought the curve down very decidedly, whereas bread, which was not subjected to price fixing, continued at a higher level than any point it had reached before, with the exception of four months immediately following the licensing of the bakers. The accompanying tables show price increases immediately fol- lowing the abandonment of food control. The wheat price, even though wheat was still under a minimum price guarantee, acted in like manner. It was stated above that it was by means of the maxi- mum flour price and the method of calculating millers' costs that the price of wheat was kept from exceeding the fair-price level. Following the removal of flour regulations, wheat displayed some of the ordinary market traits during a season of short supply. WHEAT, No. 2 RED WINTER, CASH, AT CHICAGO. [$0.9321 per bushel = 100.] ACTUAL PRICE. Date. Year Quarters: First Second Third Foiu:th Months: Jr.nuary... February.. March April May June July August September. October . . . November. December . 19i:i 0774 0448 8919 9413 1144 0793 0385 0586 0557 02O0 8836 8705 9216 9216 9447 9575 1914 $1.0024 .9596 . 9356 .9614 1. 1532 .9690 .9602 . 9495 .9386 .9763 .8918 .8210 .9563 1.1069 1. 1086 1.1486 i. 2023 191.3 II. 3110 1. 5104 1.4627 1.1111 1. 1632 1. 3910 1.6091 1.5311 1.5916 1.5700 1.2265 1.1611 1.0963 1.0760 1.1325 1. 1250 1.2322 1916 $1.3731 1.2270 1. 1373 1. 3882 1.7400 1.2896 1. 2585 1. 1328 1.2153 1.1554 1.0413 1. 1597 1.4706 1.5344 1.6809 1.8116 1.7275 1917 82. 2779 1. 9107 2. 7136 2. 2608 2. 1700 1.9024 1. 7969 1.9781 2.4672 2.9705 2.6388 2.3310 2.2503 2. 1775 2. 1700 2. 1700 2. 1700 $2. 2094 2. 1700 2. 1700 2. 2392 2. 2582 2. 1700 2.1700 2.1700 2. 1700 2. 1700 2. 1700 2.2470 2. 2325 2. 2363 2. 2345 2. 2375 2. 3088 $2. 3788 2. 3450 2. 3575 RELATIVE PRICE. Year Quarters: First Second Third Fourth Months: January . . . February.. March April May June .luly August — September October.. . November, December. 106 108 141 116 103 162 112 100 157 96 103 119 101 124 125 120 104 149 116 103 173 111 102 164 114 101 171 113 105 168 iOO 96 132 95 88 125 93 103 118 99 119 115 99 119 121 101 123 121 103 129 132 132 122 149 187 138 135 122 130 124 112 124 158 165 180 194 185 244 237 205 233 291 233 243 240 233 242 204 233 193 233 212 233 265 233 319 233 283 233 250 241 242 240 234 240 233 240 233 240 233 248 255 252 253 GOVERNMENT CONTROL OVER PRICES. FLOUR, AVHE.4T, STANDARD PATENTS, AT MINNEAPOLIS. [$4.5699 per barrel of 196 pounds=100.] ACTUAL PRIC". 77 Date. Year Quarters: First Second Third Fourth Months: January . . . February. . March April ...... May June July August — September October.. . November. December. 1913 $4. 5837 4.4584 4. 7096 4. 6833 4. 4746 4. 4813 4. 5188 4.3750 4. 6100 4.65e3 4.8625 4. 7700 4.7000 4.5800 4.4563 4. 4875 4. 4800 1914 $5. 0962 4. 5708 4. 5508 5. 3488 5.8625 4. 5000 4.5875 4. 6250 4.5500 4.6125 4.4900 4. 5938 5. 5125 5.9400 5. 7563 5. 8813 5. 9500 1915 $6. 6630 7. 3492 7. 3942 6. 2242 5. 7479 6.8563 7. 7063 7.4850 7.7063 7.8813 6. 5950 7.0313 6.3100 5. 3313 5.5188 5.5000 6. 2250 191G $7. 2639 6. 3217 6. 0571 7. 3767 9.2621 6. 6438 6.4400 5. 8813 6. 2188 6. 1900 5.7625 6. 1000 7.6050 8. 4250 9.2800 9. 8250 8.6813 1917 $11. 3909 9. 2981 13. 5731 12. 3904 10. 3404 9. 2150 9.0688 9. 6313 11.6188 14. 8800 13. 8938 12. 7500 13. 0688 11. 2625 10. 6000 10. 2250 10. 1313 $10. 1407 10. 1538 9. 7942 10. 3992 10. 2100 10. 0850 10. 3000 10. 0938 9. 9850 9. 5250 9. 8250 10.7120 10. 2100 10. 2100 10. 2100 10. 2100 10. 2100 $10. 2750 10. 5500 11.2125 RELATIVE PRICE. Year Quarters: First Second Third Fourth Months: January . . . February. . March April May June July August — September October . . . November. December. 103 102 98 99 96 101 102 106 104 103 100 98 112 146 100 161 TOO 162 117 136 128 126 98 150 100 169 101 164 100 169 101 172 98 144 101 154 121 138 130 117 126 121 129 120 130 136 159 138 133 161 203 145 141 129 136 135 126 133 166 184 203 215 190 203 297 271 226 202 198 211 254 326 304 279 286 246 232 224 222 BREAD, LOAF, AT NEW YORK. [$0.0412 per 16 ounces of unbaked dough=l00.] ACTUAL PRICE. 222 222 214 228 223 221 225 221 219 208 215 234 223 223 223 223 223 225 231 245 Date. 1913 1914 1915 1916 1917 1918 1919 $0. 0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 .0424 $0. 0442 .0429 .0434 .0455 .0449 .0434 .0427 .0427 .0427 .0427 .0449 .0441 .0483 .0441 .0449 .0449 .0449 SO. 0475 .0492 .0474 .0478 .0457 .0474 . .0420 . 0582 0465 .0474 .0483 .0492 .0492 .0449 .0449 .0449 .0474 $0. 0477 .0449 .0452 .0454 .0553 .0449 .0440 .0449 .0449 .0449 .0457 .0457 .0449 .0457 . 0533 .0545 .0582 SO. 0693 .0593 .0710 .0753 .0715 .0571 .0582 .0627 .0640 .0738 .0753 .0753 .0753 .0753 .0753 .0753 .0640 SO. 0738 .0640 .0778 .0773 .0762 .0640 .0640 .0640 .0778 .0778 .0778 .0778 .0778 .0762 .0762 .0762 .0762 Quarters: First Second Third Fourth Months: January . . . , $3.0850 .0850 March .0850 April .0850 July 78 HISTORY OF PRICES DURING THE WAR. BREAD, LOAF, AT NEW YORK— Continued. RELATIVE PRICE. Date. 1913 1914 1915 1916 1917 1918 103 106 115 115 168 179 103 104 119 109 144 155 103 105 115 109 172 189 103 107 115 110 183 187 103 109 111 134 173 185 103 105 115 109 139 155 103 104 102 109 141 155 103 104 141 109 152 155 103 104 113 109 155 189 103 104 115 109 179 189 103 109 117 111 183 189 103 107 119 111 183 189 103 117 119 109 183 189 103 107 109 111 183 185 103 109 109 129 183 185 103 109 109 132 183 185 103 109 115 141 155 185 Year Quarters: First Second Third Fourth.... Months: . January . . . February.. March April May June July August September, October. -. November. December. 206 206 206 206 SUGAE. It might be supposed at first thought that the estimated world sugar supply of 18,659,792. tons for 1917, as against an average prewar production of 18,712,997 tons, was adequate enough not seriously to trouble the Food Administration. And, by comparison with the complexities of the wheat and meat control, perhaps, sugar control was less of a problem. But with these exceptions it was the most important of the food controls and affords an interesting and dis- tinctive experience with price regulation. It was the cutting off of sugar from Germany, and the shortage of ships to distribute the available supply, which, more than a falling off in actual world production, made sugar control a problem. The shutting off of German supplies from Great Britain and France, together with submarine ravages, had made these two coun- tries dependent upon the Western Hemisphere for their sugar. By 1916 the largest part of the sugar consumed by the allied countries came from the United States and Cuba. The United Kingdom in that year, for example, took some 500,000 tons of sugar^ from us and an equal amount from Cuba, whereas her normal receipts from both these sources combined had in the past averaged approximately 300,000 tons only. Moreover, the north European neutrals, and other countries in Asia, Africa, and South America, which had also been shut off from German and Austrian supplies, had entered western markets. Thus by 1916 our sugar exports had amounted to 1,630,- 000,000 pounds, which was approximately 3,000 per cent more than was shipped from the United States in the year preceding the out- break of the world war. And yet, at the same time, due to lack of shipping space, large stocks were accumulating in Java. This drain upon Cuban and American stocks was, of course, re- flected in the market price of sugar, and by August, 1917, raw sugar ' Exports of sugar to the United Kingdom for the fiscal year ending June, 1916, amounted to 932,458,- 299 pounds, according to the figures of the United States Department of Commerce. GOVERIirMElSrT COE"TROL OVER PRICES. 79 prices had readied a point 100 per cent higher than the average for the year preceding the outbreak of the world war.^ It was thus evident,^ immediately upon the inauguration of the Food Administration, that measures must be taken to check the rise of sugar prices. Accordingly one of the first official acts of , Mr. Hoover was the appointment on August 15 of Mr. George M. Rolph to head a Sugar Division. Three weeks later a presidential procla- mation required all importers, manufacturers, and refiners of sugar, sugar sirups, and molasses to secure licenses from the Food Admin- istration, and on October 1 virtually the entire sugar industry was brought under license control. Before the inauguration of the license system, however, steps had been taken toward fixing maximum pro- ducer's prices for sugar through voluntary agreement. The first of such agreements was arranged with the beet-sugar interests. TTie heet-sugar control. — Mr. Hoover announced, as early as Au- gust 25, 1917, that the producers of beet sugar had agreed to sell their new crop at $7.25 per hundredweight, cane basis, at refining points (Boston, New York, Philadelphia, Savannah, New Orleans, 1 The effect of the shipping shortage, and the concentration of sugar demands upon the American and Cuban markets, upon sugar prices is presented in the appended table. The temporary rise in the sumnie of 1914 is to be explained by the large purchases of Great Britain following the declaration of hostiUties, and by a panic among American consumers who rushed into the market and bought up large supplies because ofa fear ofshortage and higher prices. These prices were taken from Willett & Gray's Weekly Statistical Sugar Trade Journal. United States /price of raw and refined sugar, 1918-1918 RAW CANE SUGAR. [96° centrifugal; duties paid at New York.] Month. January $0. 0353 February March April May June July August September October November December 1913 1914 1915 1916 1917 $0. 0353 $0. 0332 SO. 0305 10. 0465 SO. 0524 t . 0349 .0344 .0468 .0491 .0517 .0355 .0298 .0482 .0564 .0548 . 0339 .0298 .0480 .0616 .0621 .0334 .0326 .0484 .0643 .0608 .0334 . 0334 .0491 .0632 .0604 .0355 .0328 .0485 .0630 .0662 .0374 .0570 .0475 .0558 .0727 . 0372 .0580 .0427 .0555 . 0696 . 0350 .0446 .0411 .0626 .0690 .0362 .0391 .0475 .0621 .0690 .0335 .0396 .0492 .0531 .0634 SO. 0601 .0601 . 0601 .0601 .0601 .0602 .0606 .0606 .0697 .0728 .0728 .0728 REFINED CANE SUGAR. [Fine granulated in bags or barrels at New York.] January. . . February . March April May June July August September October... November December. 1.0744 .0730 . 0730 .0730 . 0730 .0731 .0735 .0735 . 0845 .0882 .0882 .0882 80 HISTORY OF PRICES DURING THE WAR. and San Francisco).^ This price was later raised to $7.35 and $7.45 on December 12 and January 8, respectively, in order that it might conform more nearly to the price of cane sugar, which was estab- lished by agreement w^ith the Cuban producers, whose product is the basis for the price of the entire domestic sugar crop, including that from Hawaii and Porto Rico. Shortly after the fixing of the beet-sugar prices by agreement it became evident that with the elimination of normal competitive methods of bidding for sugar supplies some arbitrary method of distribution would be necessary. Accordingly there was appointed a sugar distributing committee to allot the available sugar to dealers in various localities. Representatives of this committee were scat- tered throughout the country and prices at different distributing points were established by adding freight from the nearest seaboard refinery to the base price at that seaboard point.- It was hoped thus to effect an equitable distribution of sugar and a saving in freight costs. Cross shipments were eliminated wherever possible and, con- trary to the usual custom of shipping sugar as much as half way across the continent, individual localties were supplied by the nearest refineries. Control over the cane-sugar supply. — The regulation of the beet- sugar supply, however, could not of itself solve the sugar situation, for beet sugar represents a small part only of our total consumption. Cuba ordinarily furnishes the greater part of our sugar supplies, and it soon became necessary, therefore, to devise methods of controlling the price of Cuban sugar as well. That necessity was especially acute, for the Cuban supplies of raw sugar seemed too small even to ]neet our own demands. Moreover, the foreign Governments were bidding against each other and against the American refiners for these scanty supplies. Under such competition it was apparent sugar fsrices could not be kept stable. The entire sugar-refining industry agreed to keep out of the Cuban and other raw-sugar markets and to obtain their supplies through a purchasing body created by the Food Administration. This body, appointed on September 21, was the International Sugar Committee, formed by agreement with England, France, and Italy to arrange for the purchase and distribution of the iivailable sugar for the allied Governments and for all allotments to neutrals. There was also appointed to cooperate with this interna- tional committee a committee of American refiners, whose business it was to allocate among our refiners all sugar set aside for the United States. This committee later became very active and had as its almost daily task the alloting to refiners of all sugar receipts > It should be noted that this one is the first price-fixing agreement entered into directly by the United States Food Administration. The price of wheat had heen fixed on Aug. 10 hy congressional legislation. 2 To the price of heet sugar at the seahoard refining points, i. e., $7.25, the transporta- tion cost to interior points was added. I GOVERIiI'MENT CONTROL OVER PRICES. 81 from Cuba, Porto Eico, and other sources. In such a manner was competition in the world's sugar market eliminated and conditions made favorable for negotiating with the various producers for raw- sugar supplies. The Food Administration, now in a position through the sugar committee to bargain with, the cane producers for favorable prices, entered into an agreement with the Louisiana planters which resulted in the fixing of a price on October 23, 1917, for Louisiana raw sugar of $6.35 per hundredweight at New Orleans. There having been fixed a price for beet sugar and the entire domestic production of cane sugar, it remained still to grapple with a more definite price control over Cuban cane sugar. The first move in this direction was the purchase by the International Sugar Committee of the small remain- der of the old 1916-17 crop of Cuban sugar at $6.75 delivered at Xew York duty paid and an attempt to secure the new crop, which was due the first of 1918. Accordingly, conferences were held with the Cuban producers in the hope of fixing a price for the Cuban crop. After a considerable delay, and the entrance of the Cuban Government and our State Department into the negotiations, an agreement was finally made on December 24 whereby three-fourths of, or (upon option) the entire new Cuban crop was to be sold to the International Sugar Com- mittee at $4.60 f. o. b. Cuban ports. That price, after adding freights, duty, and other costs, was equivalent to about $6 ^ f. o. b. New York.- The Food Administration was thus instrumental in bringing all of the immediately available supplies of raAv sugar under the control of the Allies. Further precautions were taken by placing embargoes, through the War Trade Board, upon the export of sugar from the United States, and by asking the Cuban Government to prohibit all shipments of sugar to any country other than the United States or her Allies. The distribution of re-fined sugar. — Shortly after a price for the raw sugar supply had been decided upon, it was thought advisable to limit the costs of fabrication and distribution, in order that the ulti- mate cost to the consumer might be kept at a nominal level. For this purpose, the refiners were asked in September, 1917, to fix a margin between the cost of raw sugar and the selling price of refined sugar for which they were willing to operate. This refining margin, based on a prewar average, was placed at $1.30 per 100 pounds. It was later, after investigation of refining costs by Mr. Oscar Straus, 1 On June 24, 1918, the increased insurance rates caused by the presence of German submarines off the American coast caused a rise in the New York price to $6.05. " It is of interest to note that before making this final agreement with the Cuban producers, the United States Food Administration rendered aid both to the Cuban Gov- ernment and the Cuban sugar industry, in order that the sugar crop might be more easily marketed. At the suggestion of the Food Administration, for example, the Cuban Gov- ernment loaned to the Cuban Railway $5,000,000 in order that the road might be put into better condition for handling the crop. The Food Administration also played an important part in getting some 50 American business firms, who had orders for supplies which were needed in harvesting the Cuban crops, to rush such supplies through and to fill orders for articles which the Cuban authorities were having difficulty to secure. 125547'°— 20 ^6 82 HISTORY OF PRICES DURING THE WAR. increased to $1.45 per 100, effective August 1, 1918. This differential included, incidentally, a brokerage charge ranging from 3 to 5 cents per 100 pounds, which might be paid to agents for selling sugar to wholesalers and jobbers.^ At the same time, the refiners agreed to confine their sales to certain limited territories. With the price of sugar so minutely regulated in both its raw and refined state, it appears that the interests of the American consumer had been fairly well provided for. The licensing system limited the profits of the wholesaler and jobber to the prewar normal, which averaged about 25 cents per 100 pounds,^ and the only remaining avenue of profiteering was the retail distributor. Methods of deal- ing with the latter have been discussed in previous pages.^ The Sugar Equalization Board. — No sooner had all arrangements been completed for the purchase and disposal of the 1917-18 sugar crops by the above committee and the Food Administration than it became necessary to provide for the crop of the year to follow. This was especially imperative, since the requirements of the Allies demanded the greatest possible stimulation both of cane and beet sugar production. If the estimate made in the late spring of 1918 that the United States would produce 1,600,000 tons of sugar was accurate, it meant that the balance of our 4,000,000-ton requirement must be imported. Cuba, of course, was the logical source to draw upon for this balance. An investigation into the costs of producing sugar showed that the wholesale price of sugar could not be brought below 9 cents if the Louisiana cane producers and the western beet raisers were allowed a fair return.* Accordingly, an agreement was entered into with the Louisiana cane producers, and the beet manufacturers, by which the wholesale price of sugar was stabilized at not to exceed 9 cents.^ It was known, however, that the Cuban raw sugar could be sold about 1^ cents per pound cheaper than our domestic supply and at the same time leave a good margin of profit. The price allowed to the American producer, then, if extended to the Cuban crop would have meant tremendous profits to the Cuban growers. On the other hand, if the American refiners were allowed to buy Cuban raw sugar at the price the Cubans were willing to accept, and forced to charge 1 On Sept, 9, the refiner's margin was still further increased to $1.54 per 100 pounds. 2 'This margin was increased in the midsummer of 1918 to 35 cents. 3 On Nov. 7, 1918, the retailer's margin on sugar was fixed at $1.12 (bulk) and $1 in packages, * This price was decided upon after various meetings with the producers held during the early summer of 1918. It should be repeated once more that the guiding motive in fixing prices by the Food Administration was the stimulation of production. The policy was to put the price at the point at which at least 90 per cent of the producers could secure a fair profit. The interests of the consumer were always considered, of course, and made the limiting factor in determining the price to be fixed. If every producer of sugar had been fully recompensed without consideration for the consuming public, the price of sugar would perhaps have been three times what it actually was during the war period. B The actual price fixed was $0.0882. This price made raw sugar $0.0728 per pound, to which the refiner's margin of $0.0154 was added. It went into effect Sept. 9, 1918, GOVERISTMEN'T COlSrTKOL OVER PRICES. 83 9 cents per pound for refined sugar (the agreed selling price for the sugar refined from domestic cane and beets), their profits would be far in excess of those ordinarily expected by refiners for their services. And, again, if Cuban sugar came into the United States at the price which the Cuban growers were willing to accept, and the American refiner's margin as determined earlier in the year was added thereto, and Cuban refined sugar was sold at a price considerably below 9 cents, the domestic cane and beet raising industry would be ruined and a shortage of sugar follow. A still further problem was that of equalizing the j)rices of the old-crop domestic sugars which were sell- ing at $7.30 per hundred pounds with those of the new 1918-19 crop which were soon to appear at the higher price of $8.82. The solution of these problems seemed to lie in some governmental form of equalization, whereby the existing differences in the costs of the domestic and imported sugars, as well as the differences be- tween the old and new crop prices, would be eliminated. To attain this end, the United States Sugar Equalization Board was incorpo- rated in July, 1918, with a capital stock of $5,000,000, owned by the United States. The board, shortly after its incorporation, purchased all sugars produced from the 1917-18 crop, still in the country or in transit, at the old price of $0,073 per pound, and immediately resold them to the same holders at the new price of $0.0882. Thus the extra profit, which would otherwise have gone to the refiners who had pur- chased at the old price and would have sold at the new price, was absorbed by the Sugar Equalization Board.^ In like manner the board bought up the entire Cuban 1918-19 crop at the price of $0.0588 per pound (including costs and freight to Philadelphia and New York), and delivered it to American refiners on the Atlantic and Gulf coasts at $0.0728 per pound. Adding to the latter price the re- finer's margin of $0.0154, this sugar could be sold in refined form at the same price as the domestic production, i. e., $0.0882. In the price of $0.0728 to the refiner there was, after deducting duty and other costs, a margin of some 25 to 38 cents per 100 pounds. This amount instead of going to the Cuban producers or the American refiners went to the treasury of the Sugar Equalization Board. Thus the price of sugar was stabilized and the domestic industry preserved, while at the same time there went to the United States Treasury a considerable sum which would otherwise, in all probability, have gone to the American refiners or the Cuban producers. '■ The question naturally arises, What provisions were made for the disposal of stocks held by wholesalers and retailers on Sept. 7, when the higher price went into effect, and which had been bought at the lower price prevailing prior to this rise? The Food Ad- ministration specifically stated that such dealers should continue to sell all lower-priced stocks on the lower basis until entirely disposed of. Even the averaging of the new and old price was prohibited. When considered from the standpoint of the individual dealer, the gains accruing from the rise in price were necessarily small, for their supplies of sugar were limited, the license regulations having prohibited them from holding more than a 60-day supply at any one time. 84 HISTORY OF PRICES DURING THE WAR. The limitation of sugar consumpflon. — The Food Administration, as well as the consuming public, learned shortly after the inaugura- tion of the Sugar Division that control both of the sources of raw sugar and the prices of the finished product would not solve all the difficulties presented by the shipping shortage. There was, first, the railroad blockade which made next to impossible an equitable distribution, especially in the eastern section of the country. Sec- ondly, the harvesting and marketing of the Cuban sugar crop begins about the first of the year and continues into the early summer. The Javan crop usually follows and fills in the void in receipts from June to October, Avhen the beet-sugar crop begins to come in. The Louisiana crop first appears on the market in November and sup- plies our demand through the winter. The Javan crop was unat- tainable during the summer and autumn of 1917, however, and this, of course, added to the stringency. Moreover, the Atlantic coast refiners received considerably less Louisiana sugar than usual in late 1917, for the Louisiana planters Avere selling washed and clari- fied sugar which they made on their own plantations to manufac- turers of confections. They had found that the selling of sugar in this semirefined state yielded them a larger profit than would have been secured for their products had they sold it in the raw state to the refiners.^ Third, an early frost had perceptibly cut down the Louisiana supply; and, finally, the demands of our allies kept in- creasing more and more beyond expectations. Limitation of consumption was, of course, the logical solution of this phase of the sugar problem, and in October, 1917, confectioners and manufacturers of nonessential foodstuffs were limited to 50 per cent of their normal requirements. Early in January, by reason of the new sup]3lies from Cuba and Louisiana, this amount was in^ creased to 80 per cent of normal requirements. It was later ruled " that such manufacturers starting operations after November 1, 1917, but before April 1, 1918, would be limited to 50 per cent, and that those starting after April 1, 1918, should be allotted no sugar whatever. Again, on July 1, 1918, all of the less essential industries were limited to 50 per cent. Beginning March 15, 1918, practically all manufacturers using sugar were required to obtain certificates from the Federal food administrators in their respective States, 1 The shortage of sugar in the fall of 1917 resulted in the limiting of manufacturers of nonessential foods to 50 per cent of their normal sugar requirements. These manu- facturers, however, could buy sirups, which they used as substitutes. Hence, rather than go without sufficient sugar, they were willing to pay to the Louisiana producers for washed and clarified sugar — which normally sold for about one-half cent per pound less than refined — the wholesale price of $0.0765 per pound, or the agreed price for refined sugar ($0.0635 — Louisiana raw sugar price — plus $0,013, refiner's margin). The Louis- iana producei'S, on the other hand, were glad to sell this clarified and washed sugar at $0.0765, for it netted them a larger profit than would have been secured had they sold it in the raw form to the refiners. This irregularity was later eliminated by fixing $0.0725 less 2 per cent as the maximum price at which washed, clarified, and open sugar could be sold. GOVERNMENT CONTROL, OVER PRICES. 85 shoAA'ing timouiil; that the}" were entitled to purchase," ^ and these certificates were turned over to licensed wholesalers and other dealers when sugar purchases were made. Consumption by the public in general was also closely regulated, and purchases were limited at first to 5 pounds at a time for urban and 10 pounds for rural customers. In June these rations were changed to 2 and 5 pounds, respectively, and retailers were for- bidden to sell sugar to their customers in quantities greater than 3 pounds per person per month. Later they were further reduced to 2 pounds per person per month. On October 30, with the new crops in view and with improved railroad service, regulations were once more modified and the per capita allowance was restored to 3 pounds^ On November 13 an allowance of 4 pounds was made and manu- facturers were granted their full requirements. Finally, on Novem- ber 27, 1918, all restrictions were repealed with but two very im- portant exceptions, namely, first, price control was retained, through the operations of the equalization board, over its purchase of the Cuban 1918-19 sugar crop, until supplies were disposed of; and, secondly, a restriction of distribution by refiners to certain territories was retained in order to maintain an equitable supply for all parts of the country.^ Sugar hy- products. — The distribution of sugar by-products, such as sirups and molasses, and the regulation of their prices were also administered by the Food Administration. Molasses and sirups were specifically mentioned in the license regulations of October and November, 1917, but only in a general way. Indeed, the early regulations affecting these by-products maj^ be summed up in the requirement that they " be sold according to the customs of the trade in the various producing centers of the United States." In March, 1918, control of the price of molasses was* first inaugu- rated, and a maximum of 18 cents per gallon in tank cars at sea- board points was fixed for blackstrap molasses, either imported as such or produced in the United States from imported sugar cane.^ Shortly afterwards, in order that the largest possible sugar extrac- tion might be gotten from the raw product, refiners were forbidden ^ See " Sugar Prices and Distribntion,"' ty Roy G. Blakey, Quarterly Journal of Econom- ics, August, 1918. Figures taken from the Sugar Market Review show that at least one- fourth of the sugar consumed in the United States goes to the manufacturer of confec- tionery and other sweet stuffs. - There was also a considerable number of regulations, too numerous to mention in the limited space available, which indirectly affected si-gar prices. An equitable distribution among customers v\-as prescribed ; only standard-sized packages could be used for packing sugar ; stocks to be held by any one concern were limited ; advance contracts were lim- ited to a specified number of days, etc. See Series VI, Special License Regulations, Man- ufacturers and Refiners of Sugar ; also Series I, Governing All Licenses for the Importa- tion, Manufacture, Storage, and Distribution of Food Commodities and Feeds. = Beet molasses was also made subject to this fixed price in June. A maximum of 5 cents per gallon over the bulk price of 18 cents was permitted for barrel lots. The re- selling price of wholesalers was also regulated by the Food Administration. A maximum margin of 8 to 10 per cefit was fixed by the Food Administration on sales of molasses in barrels by wholesalers to retailers. 86 HISTOKY OF PRICES DURING THE WAR. WJ 1017 I loia I uu: ixp^ r™" tJCLAnvE PRICES or SUGAR UNITED STATti — ."ENGLAND TRANCE. 5YRDl!i 1 1914 1 1913 1 1016 1917 1916 i Relative prices. — Cotton seed ; lard substi- tute ; and Crude cottonseed oil. — By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) 1 W. C. Mullendore. * Bureau of Crop Estimates, U. S. Department of Agriculture, GOVERNMENT CONTROL, OVER PRICES. 115 than that of 1918, but small when compared with the output of earlier years,^ And, further, the amount of seed crushed for the crop year up to April 30, 1919, was but 4,083,900 tons, as compared with 3,966,329 tons for the same period in the preceding crop year, and as against 4,167,527 ^ tons for the corresponding time in the crop year 1916-17. Canned and Deied Foods. Vegetables. — It was not extraordinary that regulation of the can- ning industry should have been provoked when profits of concerns in various parts of the country showed an average increase from 9 to 32 per cent in a single year,^ and when there was a pressing war- time need for the essential foodstuffs which they produced. Canned food prices by 1917 had risen far beyond the level of com- modities in general. The large demands of the Army and N"avy had resulted, even before the creation of the Food Administration, in the appointment of a war-service council of canners to take care of the requirements of the various governmental bodies, and the can- ners of peas, dried beans, tomatoes, corn, salmon, and sardines were included in the presidential license proclamation of October 8, 1917. Accordingly, on the 1st of November, the greater part of the canning industry went under license.* Steps were taken immediately to curb speculation, and the first method considered was that almost universally applied, namely, the prohibition of long-time contracts. But the customs and seasonal character of the trade appear to have made the application of this rule to the canning trade impracticable, and instead of limiting con- tracts to the customary 60 days, as in other industries, licensed can- ners were prevented from quoting prices on future sales before Feb- ruary 1 of the year in which such products were to be canned.^ ^ See table on p. 110. 2 Data from U. S. Bureau of Census, Department of Commerce. 5 The Federal Trade Commission's "Report on Canned Poods" (1918) in its chapter on profits says, among other things : " In 1916, 42 packers, representing invested capital amounting to $12,752,241.03, showed net incomes aggregating $1,224,009.69. Thus, the return on investment of these packers averaged 10 per cent. In 1917, 37 packers, representing invested capital amount- ing to $12,224,210.68, showed net incomes aggregating $3,876,263.08. The average re- turn for this year was 32 per cent. The average return on companies for which there were both 1916 and 1917 statistics was 9 per cent in 1916 and 32 per cent in 1917." * The proclamation of Oct. 8, 1917, included only those packers whose output exceeded 5,000 cases per year. On Jan. 10, 1918, this amount was lowered to 500 cases per year, thus virtually licensing the entire industry. On Feb. 28 manufacturers of tomato catsup and other tomato products were added to the licensed list, while on June«15 canned tuna came under the control of the Food Administration. ^ Mr. W. C. Mullendore, in the summary report of the Food Administration, ibid., in dis- cussing the future contract situation as applied to the canning industry, says, in part : " This industry is composed of thousands of small units and it does- not require a large concentration of capital. The produce to be canned must be obtained in its fresh state direct from the grower, so that the radius of operation of the average canner is neces- 116 HISTORY OF PRICES DURIISTG THE WAR. No method of price regulation other than the " reasonable-advance- over-cost" clause was applied to the canners at first. It was soon found, however, that the enforcement of this rule presented endless difficulties, for not only did the costs vary widely in different parts of the country, but also in different plants in the same neighbor- hood. Moreover, the character of the industry was such that the raw materials used were but a minor factor in the total cost, and hence it was impossible to determine a margin which could be added over cost.^ The first measure toward solving this problem was one of averaging the cost of the season's pack. On January 28, 1918, regulations were amended so as to limit the selling price of canned " goods manufactured and on hand to not more than a reasonable advance over the average cost of the season's pack." This was but a temporary palliative, however, for it was soon decided that an efficient system of price control would require the fixing of a definite " maximum margin in cents per dozen cans " over the cost of produc- tion. This meant, of course, an analysis of the cost figures of each individual plant, since the food law had been so drawn as to make it impossible for the Food Administration to reach the grower, HoweA-er, the Federal Trade Commission had, in early 1918, com- pleted a study of canning costs and from their conclusions it was pos- sible to determine a reasonable profit, which could be used in deter- mining the differential to be allowed the trade. Thus the canners throughout the country were called upon to submit cost estimates for their respective plants, and to these costs, as checked up and approved by the Food Administration, were added " maximum margins in cents per dozen cans " which were to represent the differences between costs ^ and selling price. These sarily small. In order to secure a supply for his plant the canner contracts with the neighboring growers for the crop of a certain number of acres to be planted for the produc- tion of a named commodity. Before the adoption of the Food Administration rule pro- hibiting the making of these contracts before February 1 of the year in which the products were to be canned, they were customarily made in the early winter. Having made his contracts the canner buys his stock of cans, packing cases, machinery, labels, and such supplies for his season's pack. Since many of the canners are men of small means, they find it necessary to borrow most of the money for these purposes from the local banks. Before loaning the money the banks often require the canner to assure himself of a market by making contracts with responsible distributors for the sale of his commodity. Practically, therefore, the canner's pack may be sold before the crops for the raw product to be canned have been planted. The Food Administration recognized that this prac- tice was the outgrowth of unalterable conditions in the industry and that it served as a safeguard both for the farmers and for the canners. The usual Food Administration rules prohibiting future contracts more than 60 days in advance were, therefore, not applied to canners." ' The tremendous divergencies in the costs of canning vegetables, for example, are emphasized in a table showing the range for plants in the various parts of the country, included in the Federal Trade Commission Report, ibid. The cost of packing corn ranged from $0.65 to $1.40 per dozen cans ; tomatoes, from $0.60 to $1.15 ; and peas, from $0.60 to $1.45. 2 In contrast with the methods of price-fixing used for commodities other than food, the following clause in the Food Administration regulations for canners is of interest : " Cost shall not include income and excess-profits taxes ; interest on investments, inter- est on long-term notes, or crop hazards." . GOVERNMENT CONTROL OVER PRICES. 117 margins varied from 15 cents to $1 per dozen cans, according to the type and grade of the vegetables canned/ and were believed to pro- vide a profit to canners large enough to encourage production.^ Canned fish.— ThQ declining imports of sardines and the govern- mental requirements for canned salmon^ brought the 1917 price of these types of fish above their prewar levels. These high prices were of great significance to the Food Administration, especially in view of the meat shortage, and immediate action was taken toward the stablizing of prices. Sardines: One of the earliest price agreements of the Food Ad- ministration was made with the Maine canners of sardines in October, 1917, before the canning industry came under license. This agree- ment called for a maximum price of $5.60 per case for one-quarter oil canned sardines, and the pack of 1917 was disposed of at this price. The increased costs of the following year, however, required a revision of prices. Since the Food Administration in this case, unlike that of vegetables, had the power to fix a price for the " raw material" which made up the cost of the pack, it was decided to determine a price for sardine herrings. The fishermen of Maine were called together in April, 1918, therefore, and a price of $25 Tomatoes (per dozen cans) : Cents. No. 2 standard 18 No. 21 standard 22 No. 3 standard 2T No. 3 fancy— 31 No. 10 standard 90 No. 10 fancy 100 1 Differentials allowed were : Corn (per dozen cans) : Cents. No. 2 standard 19 No. 2 extra standard 22 No. 2 fancy 30 Peas (per dozen cans): No. 2 substandard, average all sizes 15 No. 2 standard, average all sizes_ 22 No. 2 fancy, average all sizes 31 It will be noted that canned beans are not included in the above list. This was due to the prohibition placed on canning beans in containers made of tin plate without a special permit. It was not until Nov. 1, 1918, that the canning of beans was permitted, and then only an amount equal to the average pack for the three months, November, Decem- ber, and January. 2 One other matter should be mentioned in this connection, namely, the question of fu- ture contracts. It was possible, for example, that on making delivery of certain products several months after figuring out preliminary costs, the actual cost might prove smaller than at first expected. This, of course, would mean a higher profit than allowed by the Food Administration. The solution of this problem was left in the hands of the packers themselves, as described by Mr. W. C. Mullendore, ibid. " The canning industry felt that it would be desirable to submit to the Food Adminis- tration these future contract sales' prices, asking the Food Administration to sanction them and permit them to proceed in the confident belief that these prices would be acceptable to the Food Administration. The Food Administration was unable, however, to state what would be reasonable prices, for no matter how accurate an estimate of cost may be, the crop is not determined until actually put up, and therefore the Food Adminis- tration could not undertake to justify canners' future contract prices. In lieu of this method each canner was required, before invoicing his goods, to review the estimate he had made of his costs, and if it were determined that the original estimate was higher than the goods were proving to cost, then to revise downward to a point that would not provide a profit in excess of the Food Administration maximum." 3 10 per cent of the 1917 salmon pack was reserved for Army and Navy needs ; while of the 1918 pack 80 per cent of the red, 75 per cent of the pink, and 65 per cent of the chum Alaska salmon was taken over by the Government, 118 HISTORY OF PRICES DURING THE WAR. per hogshead was established as the maximum price to be paid for raw j&sh by the packers. With the price of sardines fixed, it was relatively a simple task to agree upon a price for the canned product. After an investigation of costs, it was decided that a price of $6.50 per case for one-quarter oil, keyless, and $6.25 per case for one-quarter mustard, key- less, sardines, would provide a reasonable profit to the canners, and these prices were fixed as maxima for the remainder of the season.^ It was not until October, how- ever, that the price of Califor- nia sardines was determined. A series of three prices was agreed upon, varying with the size of the raw fish to be sold;- and on the basis of these raw- fish prices, maxima for the canned products were set.^ Salmon: Salmon, of course, played the most important part in the canned-fish situation of 1918-19, but in spite of this fact, it was not until many months after the price of sar- dines had been " pegged " that salmon canners were thoroughly controlled. Speculation h a d been reduced and the reason- able-profit rule had been applied to the salmon industry back in November, 1917, but lack of in- formation made it impossible to fix a definite price until well along in 1918. The price of the fish to the fisherman was first fixed, the output for Alaska, Oregon, and the coast streams of Washington serving as the basis.* Packing costs ^ These prices also were appUed to the catches of the Canadian fishermen, who agreed to accept the maximum of $25 per hogshead for their raw fish. - The prices for raw sardines accepted by the Food Administration, eflfective for the 1918-19 season, were: Under 7| inches, $30 per ton; over 7i inches, $15 per ton; fish for fertilizer purposes, $10 per ton. ^ The maximum canned sardine prices per case agreed upon were : Tomato — Quarter round, $3.25 ; one-half round, $4 ; ones roxmd, $5.75 ; ones oval, $7.25 ; one-half oral, $5.50. Oil — quarter round, $3.25 ; one-half round, $4.15 ; ones round, $6. * Prices were fixed for the various sections of Alaska and Washington, while the catch of the Columbia and Rogue Rivers of Oregon was differentiated into sevei'al types known as chums, chinooks, silver sides, and steelheads. Relative prices — Canned fish : Sardines, oil, keyless (lOO-J inch case) ; and Sal- mon, pink, tall, one dozen No. 1 cans. — By months, January, 1913, to Dectmber, 1918. (Average quoted prices, .luly, 1913, to June, 1914=100.) GOVERNMENT CONTROL OVER PRICES. 119 were then investigated in the various important sahnon-canning sec- tions, and on the basis of these costs, plus the prescribed raw-fish jprices, maximum prices were established for the canned stock.^ Canned Tuna : Tuna fish prices were dealt with in a manner similar to sardines and salmon, the price of the raw fish being first estab- lished. A conference of the Food Administration with the fishermen resulted in the fixed price for all raw tuna, of $100 per ton. Excep- tion was made in the case of two types known as Albacore and Blue Fin tuna, however, and for these an extra $10 per ton was allowed. On the basis of these figures, prices were determined for the canned product, and the latter part of 1918 found the price situation in the tuna fish industry in a more stabilized condition. D7%ed fruits. — Preparers and packers of dried peaches, apples, prunes, and raisins were included in the license decree of October 8, 1917.^ Significant control was exercised over the prices of these fruits, although the primary aim of the Food Administration was apparently the checking of any possible speculation in the industry. In its uncertain character this industry corresponds closely to that of the canning trade. As with canned goods, it was necessary to limit as much as possible the control over fruits which were not yet on the market, and thus the first regulations affecting the industry prohib- ited " either the purchase or sale of new-crop fruits for spot delivery before May 1 of the year in which the}^ were to be pVcked." ■' The selling price of the various fruits was at first kept under sur- veillance by a regulation requiring licensees who shipped in carload lots to submit to the Food Administrator all price lists or circulars relating to the price of their products ; and by use of these the Dried Fruits Division kept informed as to the tendency of prices within the trade. This system, however, did not result in as effective a control as was desired, and in its place a method of price control similar to that used in the canning industry was adopted. The fruit growers agreed to sell their peaches to the packers at 11 cents per pound. Similarly the raisin price was fixed at 5-| cents. The packers were then called into conference and a schedule of maximum prices at which their products would be sold to the trade was adopted.^ A profit limitation, however, was also placed upon the packers by limit- ing their returns to 4 per cent. 1 The complete series of canned salmon prices as established by the Food Administration in the three leading salmon sections are to be found on pp. 593—4. - The Dried Fruits Division of the Food Administration originally had in its charge the supervision of the dried-fruit industry. It was later consolidated with the Canned Goods Section under the new name of the Canned Goods and Dried Fruits Division. ^ On May 7, 1918, the date at which purchases of new-crop fruits not ready for spot delivery could be made, was changed to June 1, and on May 24 the date was extended to July 1. * See p. 596 for schedule of agreed fruit prices. 120 HISTORY OF PRICES DURING THE WAR. RlCC JAPAN HEAD — HONDURAS MEAD purrEDRicc ■■' ■ ■ .QDAKER.- BV M0MTM5 lSl3'°DECEMBED.tSI6 QUCrTCXlPCUCE:5JUCy^913*'UUNe,U3t4-10a I 1017 I 1016 i 1914 I IOI5 I 1916 i 5 But this method of price regulation was applicable only to the peach, raisin, and prune packing industries, since the centralization of both sources of supply and packing plants made possible a system of effective supervision. The situation was different in the case of dried apples, for, while the packers were under license, the enormous number of apple raisers over the country made it impossible to come to a price agreement with any considerable number of growers. The only resort, then, was the regulation of packers' profits, and as in the case of the peach and raisin packer on the Pacific coast, their return was limited to 4 per cent. The results of control. — Early in 1919 restrictions upon the canning industry were removed, and the trade once more re- sumed its usual business prac- tices. It appears that little change was made in the level of the prices of the various canned commodities, but at least a more stable market followed the inau- guration of fixed maximum mar- gins. The Food Administration claims that its price regulations resulted in a radical revision of contracts, and an estimated sav- ing to the American consumers on the 1918 pack of peas, toma- toes, and corn alone of over $7,000,000.1 Relative prices. — Rice, Japan head, and Hon- duras head ; and Puffed Rice, Quaker. — By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) Rice and Rice Floue. The large demand for cereals of all kinds and the growing im- portance of rice as an article of diet w^as reflected in the price tendency of rice after our entrance into the war. The price of Japanese rice rose 82 per cent in the two months March to May, 1917, while the Honduras variety increased 42 per cent in the same period. This upward trend continued until the new crop appeared in October, 1 See W. C. MuUendore, ibid. GOVERNMENT CONTROL OVER PRICES. 121 Then prices remained relatively stable until February, 1917, the period of harvesting. But the rise was resumed then, and not until the Food Administration undertook to "peg" the price of rice in July, 1918, did the first evidence of stability appear. Control over the industry.— Rice became a substitute for wheat during the period of cereal grain shortage, and this fact had weight in determining that all "importers, manufacturers, and distributors of rice and rice flour" should be licensed under the presidential procla- mation of October 8, 1917. At the very beginning, regulations were inaugurated which limited the returns to rice dealers, and licensees were forbidden to sell rough rice "at an advance over the actual price in excess of 1 per cent over purchase price, plus storage, insurance, and interest on the investment at the rate of 6 per cent per annum."^ Eesales were prohibited so as to prevent speculation, and millers were restricted in the amount of rice they could keep on hand. Also, contracts for future delivery were limited to 30 days. But the limitation upon profits of rough-rice dealers and the elimi- nation of speculation, was of little significance as a factor affecting rice and rice products prices, in view of the tremendous rice demands of 1917 and 1918. Even in the summer of 1917 our supplies of rice were beginning to feel the effects of the wheat shortage and the de- mand for wheat substitutes, both foreign and domestic; and on August 1, 1917, the end of the crop year, our carry-over of rice was but approximately one-half of that of the preceding year. The stimulated consumption of rice during the spring of 1918 at the en- couragement of the Food Administration still further accentuated the situation, and August 1, 1918, found the United States bare of rice supplies. The 'price agreement of the summer of 1918,— TI\q prices of rice continued to advance through 1917 and early 1918, and by July of 1918, it was realized that the stabilization of rice prices was neces- sary, and the rice producers and rice millers of the country were called into conference.^ The final solution proved to be a system of price fixing by agreements whereby the rice millers agreed to pay definite prices to the growers of rough rice, and also promised not 1 Commission charges of agents were also limited to 1 per cent. The " reasonable- advanee-over-cost " rule was applied to clean rice as in the case of all other commodities. 2 There is another factor quite generally overlooked which has an important bearing upon the problem of tixing rice prices. Imports play an appreciable part in the rice supply of the United States, and in 1918 they were equal almost to one-third of our production. On July 26 the War Trade Board announced that all imports of rice shipped from foreign ports after July 31 would be prohibited, and this meant that our supply, already too small, would be further cut down. 122 HISTORY OF PRICES DURIIi^G THE WAR. to sell clean rice at more than prices named in tlie agreement,"- ranging from 7f cents per pound for choice Japan, to 9^ cents for fancy Honduras. On this basis, with the broker's margin definitely fixed f with the millers' maximum price of rice flour fixed by the Food Administra- tion at 75 cents per 100 pounds above the purchase price of brewers' rice or screenings;" resales prohibited; and a maximum margin de- termined for the sale of rice from wholesalers to retailers, it was quite evident that much had been done toward the stabilization of rice prices. Indeed, the Food Administration went so far as to state publicly that in their opinion consumers should "be able to purchase rice at a price of approximately 10 to 12 cents per pound, depending on remoteness from the milling centers." The method of price regulation adopted, however, required super- vision, for rough rice prices were based on grades, and the decision as to how a certain lot of rice was to be graded could not be left in the hands of the grower ; nor, on the other hand, could the grading be intrusted to the miller. Accordingly, a general committee was appointed to accomplish a fair valuation of the grower's product, and to these men was left the task of supervising and carrying out the con- tracts and the grading and valuing of rice samples submitted by the growers.* Moreover, in order equitably to allocate the rice crop among the various millers of the country, each mill was allotted a maximum amount which it might purchase of the 1918 crop, based ' The prices fixed for rough rice to be paid to growers by the millers were as follows ; i|!7.50 per barrel of 162 pounds for No. 1 and No. 2 Honduras (river type) in sacks; $7.-5 per barrel of 162 pounds for No. 3 Honduras (river type) in sacks ; $7 per barrel of 162 pounds for No. 4 Honduras (river type) in sacks ; $7.25 per barrel of 162 pounds for No. 1 and No. 2 Blue Rose in sacks ; $7 per barrel of 162 pounds for No. 3 and No. 4 Blue Rose in sacks; $7 per barrel of 162 pounds for No. 1 and No. 2 Japan in sacks; $6.75 per barrel of 162 pounds for No. 3 and No. 4 Japan in sacks. The selling prices of the products secured from the milling of rough rice were agreed upon as : Fancy Honduras, 9| cents per pound, packed in 100-pouud pockets ; choice Honduras, 83 cents per pound, packed in 100-pound pockets ; fancy Blue Rose, 7g cents per pound, packed in 100-pound pocket's ; choice Blue Rose, 1% cents per pound, packed in 100-pound pockets ; fancy Japan, 71 cents per pound, packed in 100-pound pockets ; choice Japan, 7§ centa per pound, packed in 100-pound pockets ; fancy second heads, 61 cents per pound, packed in 100-pound pockets; screenings (river), 61 cents per pound, packed in 100- pound pockets ; screenings, 51 cents per pound, packed in 100-pound pockets ; brewers', 5J cents per pound, packed in 100-pound pockets. - Broker's commissions for the negotiation of the sale of rice or rice products were limited under regulations of July 29 to: (1) 7 cents per 100 pounds on car-lot orders, except brewers' rice, sold in New York, San Francisco, Charleston, Savannah, Jackson- ville, St. Louis, Kansas City, Galveston, and Houston; (2) 6 cents per 100 pounds on any quantity of rice, except brewers' rice, sold at New Orleans; (3) 8 cents per 100 pounds for car-lot orders, except brewers' rice, sold at any other point except those designated in (1) and (2) ; (4) 6 cents per 100 pounds for brewers' rice sold at any point, in any quantity ; (5) 25 cents per ton on rice bran or rice polish at any point, in any quantity ; (6) 6 cents per 100 pounds on rice flour sold anywhere, in any quantity. 3 The quality of rice flour to be manufactured was specified in license regulations. * The detailed work of grading and evaluating was placed in the hands of subcommit- tees, with oflScers in the various cities of the southern rice States and of California. govzexmejstt coistrol over prices. 123 on its individual capacitj^ and its average receipts for the three sea- sons 1915 to 1918.^ Provision was also made for the sale of clean rice imported as such, and which would not, therefore, come under con- trol as the product of American mills. For such rice a maximum advance of 10 per cent over the price paid by the importer, plus freight and insurance, was allowed. It would seem, that these arrangements resulted in marked savings to the American public, from a study of the price tendency of the Japan variety of rice after July, 1918.2 Honduras head rice also shows the stabilizing effect of the price agreement of 1918. This agreement, incidentally, is still in force (June 15, 1919) and, with the exception of the wheat and sugar arrangements, is the only agreement of its kind which was extended into the summer of 1919. CoAESE Grains and Feed STtTirs. Human foods. — The coarse grains were among the many commodi- ties which felt the effects of the stringent wheat shortage of 1917. There were, moreover, such factors as the small carry over from the 1916 crop, the large demand by distilleries, and the small crop in Argentina, which played an important part in sending the price of individual coarse grains such as corn to levels beyond those of other commodities." Corn, oats, rye, and barley were not important as human foods in prewar years, but took their chief commercial value from their use as feeding stuffs for live stock. The Food Administration, therefore, handled them in connection with the general problem of mill feeds. Storers, distributors, and millers of rye and its products were included in the first presidential proclamation relating to licenses issued August 14, 1917, and barley and barley flour, oats and oatmeal, corn, corn grits, and other corn products such as glucose, hominy, etc., were added on October 8.* 1 The various expenses of administration, such as grading, evaluating, weighing, super- vising contracts, etc., were to be borne by the milling interests who were to pay to the office of Food Administration Grain Corporation at New Orleans a fixed fee of 6i cents for each barrel of rice purchased. 2 See rice chart, p. 120. ■•'A complete record of the prices of the various grains can be found in the bulletins " Prices of Barley, Hops, Rye, and their Products," " Prices of Corn and Corn Products." and " Oats, Rice, Buckwheat, and their Products," in the W. I. B. Price Bulletin Series. The coarse grains, by the summer of 1917, had in several cases reached unprecedented heights. No. 3 yellow corn, in June, 1917, was selling for $1.73 per bushel, and in July reached a level of .'52.06, as compared with the prewar average of $0,685. Similarly, barley, which in the prewar mouths averaged $0.6243, was selling in the summer of 1917 around $1.40 ; while rye, in June, 1917, was selling at $2.36, a price over four times it.g peace time average of $0.5653. * Later, on January 10, 1918, all importers, manufacturers, and distributors of feeding stuffs were made subject to license by presidential proclamation, thereby bringing all the products of coarse grains under license regulation. 124 HISTORY OF PRICES DURING THE WAR. It was evident from the beginning that speculation in these coarse grains must be eliminated, else the instability of the preceding months would recur. At the request of the Food Administration, speculation on the grain exchanges had been virtually stopped in August. But the elimination of speculation meant much more than the closing of exchanges. Indeed, it meant that not only must the amount of grain which any individual should be allowed to hold be fixed, but that a limit must be set upon the length of time during which a licensee might keep his grain. The first regulations which were applied to licensees, therefore, forbade the holding or storing of grains for more than 30 days.^ But the prohibition of speculation did little to keep in check the soaring tendencies of the various grains and their products, for, with the coming of the severe winter of 1917-18 and the tie-up of railroad transportation, the consequent shortage of supplies sent the price of these foodstuffs far above their prelicense level. The conservation rules of the Food Administration, moreover, required the buying of wheat substitutes with each purchase of wheat. This step, naturally, created an extraordinary demand for coarse grains and pushed their prices upward. The creation of the Grain Division. — Conditions were becoming acute, and on April 1, 1918, the Food Administration created its Grain Division and gave it oversight of the coarse grain problem. The first act of this division was the opening of the grain exchanges to legitimate hedging operations. It also permitted speculative accounts limited to 200,000 bushels, so as to keep the market open and thus stabilize prices.^ A plan w^as needed, however, for the definite pegging of prices, and with this in view a system of weekly reports was inaugurated by which every coarse grain miller and every feed dealer advised the Food Administration of the exact cost of his raw materials and the exact selling price of his manufactured products. The Grain Division in this way informed itself of margins of profit. These ^ This regulation made it illegal to hold or store rye at any point for more than 30 days. As regards the other coarse grains, this prohibition applied only to seaboard points, but at such points not only was storage limited to 30 days, but such grains which had been received on or before Sept. 1, 1917, could not be held for a period longer than 5 days after regulations became effective (Nov. 1). " With the grain exchanges virtually closed and no means of hedging, it was impos- sible for millers and dealers to protect themselves against future price falls. In other words, they could not sell on " futures," to be delivered at a later date, and had no as- surance of a profit at the time of delivery. What they did then was to charge a high mar- gin for those sales of actual grain on hand which they did make, and in that way try to eliminate any possible loss which might result in the future, due to a fall in prices. (See final report of Food Administration, ibid.) It is of interest to note that later regulations provided for losses or gains from hedging " on any recognized grain exchaiige " in arriving at'the cost of corn, oats, rye, and barley, in interpreting the " reasonable-advance-over-cost " rule. GOVERNMBlsrT COIsTTROL OVER PRICES. 125 "S (^ U d 'i a) w o o Q t) U 6 S o t4 a 05 o CO ^^ P<^ 01 o O o «i >> II o o rxl •* 1-1 1-1 tn -a n 01 1-5 > i-l a - < a ri •*-> fi s « 126 HISTORY OF PRICES DURING THE WAR. reports were regularly and minutely checked, and as an example of the results obtained from this system it is interesting to note that in the single month of June the question of price reduction was taken up with 204 mills, 95 of whom as a result lowered the price of their products. The savings effected because of the orders of the diAdsion to reduce prices in June alone \mve been estimated to equal $175,000/ The Iwiitation of coarse gram millers'' prices. — After digesting these reports for several months, the grain division prescribed on July 20, 1918, with the aid of the industry, a series of maximum margins to be added to costs in determining the prices to be charged for the various grain products.- Moreover, a definite limitation of 6 per cent was placed on profits of millers frOm gross sales of the edible products of the various coarse grains for any six-month period. The profits of the manufacturers of coarse grain products were thus limited to reasonable bases, and it remained to fix specific mar- gins on returns of grain dealers and elevator operators from whom these manufacturers secured their supplies.-^ The formulation of definite profit limitations soon appeared de- sirable, and regnilations were issued on September 10 fixing the maxi- mum net profits for " any grain dealer, including country elevators dealing in grain, to 3 per cent of the first $300,000 of the gross sales per annum, (and) 2 per cent on all gross sales in excess of $300,000 per annum," thereby providing a system of regulation for virtually the entire coarse grain industry ; excepting the farmer, whose returns were beyond the powers of the Food Administration. ^ Similarly, price reductions in July netted $116,000. An idea of the range of price reductions will be gained from the folloTsing table taken from the Monthly Report of the Activities of the Grain Division of the United States Food Administration for June, 191S : Reductions per 100 pounds. Low. High. Low. High. Meal $0. 11 .05 $0. 80 .83 W.50 .30 $0.50 Flour Grits 30 Price reductions in July varied from 82 per ton for gluten feed to $17.25 per ton for linseed meal. 2 The following differentials (in cents per hundred pounds bulk product) were promul- gated : Old-fashioned or water-ground meal, 50 ; standard and bolted meal, 50 ; pearl meal, 60 ; pearl or table hominy, 80 ; gi-lts, 80 ; cream meal, 80 ; Ceraline flakes, 120 ; corn flour, 100 ; other cornmeal, 60 ; barley flour, 95 ; rye flour, 90 ; rolled oats, oatmeal, oat flour, 90. It should be noted that these prices were bulk prices for grains packed in barrels, or 100-pound jute or cotton bags, and did not apply to products sold in packages. For corn meal, corn grits, hominy, corn flour, barley flour, and rye flour sold in packages, a series of differentials over and under the bulk price were drawn up. The maximum price per pound for hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed produced as a by-product of manufactured edible corn, barley, rye, or oat products, could not be more than the " purchase price per pound of the grain from which it was manufac- tured." 3 rpj^jg reasonable-advance-over-cost rule, of course, applies to dealers and mill operators. GOVERNMENT CONTROL OVER PRICES. 127 Feeding stuffs. — The profits of feed-stuff producers were fixed in December, 1917, when a series of differentials was announced on various wheat feeds.^ In July, 1918, further differentials were an- nounced for wheat feeds in less-than-carload lots and individual maximum margins were designated for sales by millers to wholesale and retail feed dealers. Indeed, a fair-price schedule based on the Government wheat price was drawn up and submitted to each mill and on the basis of the schedule millers were to sell their wheat feed. The maximum return of 6 per cent on total gross sales was made applicable also to the manufacturer of mixed feeds. A considerable margin, however, was allowed him on individual sales equaling a return of 12| per cent on the cost of materials, manufacturing, and overhead. This maximum margin, it appears, was made wide "be- cause of the speculative character of the products which went into the manufacture of mixed feeds, and the rapidly fluctuating prices which might prevail." Dealers, on the other hand, were allowed a still larger margin on individual sales, and for them a maximum 15 per cent over the purchase price was considered a fair return. Moreover, their- annual earnings were also limited and a yearly net profit " by any whole- sale dealer in feeding staffs of more than 4 per cent on total gross sales, if his gross sales of feeding stuffs amounted to $100,000 * * * per annum was considered prima facie evidence of a violation of the rule which prohibited the taking of unreasonable profits." - Feeds otlier thmi coarse grains and thew products. — There are other important feed stuffs which can not be properly classified under coarse grains, but which play an important part in the American live-stock industry. These grains were all controlled to some extent, and definite Drice regulations were applied to their sales. Rice feed was provided for under the agreement with the rice industry mentioned in preceding pages, whereby all rice millers agreed to sell rice polish at a price not to exceed $50 per ton, car lots, f, o. b. mill, and rice bran at a maximum of $36. Beet pulp, an important by-product of the beet-sugar industry, was definitely controlled as to price, and the following were con- sidered as maxima which would return a fair margin of profit to the beet-sugar manufacturer : 1 See schedule of margins on wheat feeds on p. 582. 2 The above rules did not apply to wheat-mill feeds, or the feeds which are discussed im- mediately below. In these cases, however, where wheat-mill feeds, cottonseed products, rice polish and bran, or dried beet pulp were sold, as well as other feeds, the 4 per cent was calculated on all sales. 128 HISTORY or PRICES DURING THE WAR. Wet beet pulp, bulk, mill (car lots) per ton__ $0.80 Wet beet pulp out of silo, bulk, mill (car lots) do 1. 25 Dried beet pulp, sacked, f. o. b. factory (car lots) do 40,00 The price regulation for cottonseed meal has been dealt with in the chapter on "Cottonseed and its products." Definite prices were fixed for meal and cake in various sections of the country, while hulls were to be sold at $20 per ton, bulk, f . o. b. points of manufacture. Coffee. The outbreak of war in July, 1914, followed by the allied block- ade and the cutting off of supplies from central Europe, had its effect upon the price of coffee, which in former years ha,d found a large market among the peoples of the Central Powers. With the elimination of these markets and with the constantly tightening em- bargoes of the allied countries to conserve shipping space, the United States soon became virtually the only large coffee-consuming country. But it became evident that we could not absorb the total production of the coffee-raising countries. The nature of the coffee industry, on the other hand, made impossible the cutting down of production to a degree commensurate with the decline in demand. The result was that throughout 1915, 1916, and the greater part of 1917, coffee sold on American markets at a figure appreciably lower than the average for the prewar years. The coffee growers of Brazil, however, set about to get a price somewhat in relation to other commodities. The natural operations of the market provided no relief, and since it was apparent that arti- ficial methods would be necessary, a plan which had been found practicable before was once more put into effect. This plan was the valorization scheme, whereb}^ the Government bought up as much coffee as was necessary to stabilize the market. This undertaking by the State of Sao Paulo in Brazil evidently brought little immediate results; yet later developments showed that it had exerted some effect upon the coffee dealers of the United States. Moreover, the fact was emphasized by interested parties that coffee was relatively cheap and that any sudden termination of hostilities would have an important, effect upon coffee values b:/ opening the European markets. Govermnental interference. — The coffee propaganda was making itself felt by the fall of 1917 upon the speculators and dealers in coffee futures and coffee prices started upward in this country. By January, 1918, the prewar price was reached, and the Food Adminis- tration soon realized that Government interference was necessary. On January 30, 1918, all dealers in green coffee were instructed to secure licenses from the Food Administration, GOVERNMENT CONTEOL OVER PRICES. 129 Price control was the immediate occasion for this action and the first regulations promulgated had a direct bearing on sales and re- turns. On February 6, 1918, two days after the license regulations went into effect, all purchases and sales of green coffee on the New York Coffee and Sugar Exchange for delivery during the month of February were limited to a maximum price of 8| cents per pound for the standard grade, type No. 7. On purchases which were to be delivered after the month of February, there were allowed an additional carrying charge of $0.0015 for each month on each pound of coffee. Thus the maximum spot price of coffee on the exchange was fixed at 8^ cents. This action made it relatively simple to pro- vide for the control of the individual dealers, in whose hands lay the distribution of coffee. Provision was made immediately for the control of the coffee re- turns by the general rule of fixed percentages over cost. Importers were given the right to charge 2^ per cent per pound over costs* while jobbers were allowed a maximum of 5 per cent over cost.^ Licensees were instructed to keep their supplies moving in as direct a line to the consumer as practicable, and without unreasonable delay. Eesales were restricted, especially when tending to result in a higher price to the retailer or consumer. However, when there was a reasonable justification for resales they were iDermitted at certain fixed rates.^ The stocks of any member of tlie trade, moreover, were limited to 90 daj'^s requirements. In spite of regulations limiting returns and the restricting of sales on the Coffee Exchange to certain prices, many difficulties occurred which gave trouble. They lay primarily with the rules limiting the transactions on the exchange. The maximum spot price had been fixed, and this maximum price which was the same for each month was always reached. This rule effectively stopped speculation, but seemed not to take account of certain customs of the trade. Many dealers had hedged their stocks on the exchange, hoping to buy back their hedging sales later when deliveries were due. But when such time came apparently they could not buy back these sales since holders of coffee refused to sell at the fixed maximum prices. The actual stocks, therefore, were not released to the trade. By October ' In arriving at cost, the licensee could take into consideration the gain or loss resulting from a single actual hedging transaction on the Coffee Exchange. =• On July 24, 1918, an amendment to the regulations increased the maximum profit allowance to 5 per cent for importers and 7J per cent for jobbers. s Returns on sales from one importer to another were limited to 1,^ per cent over cost, and on sales from one jobber to another profits were fixed at a maximum of 21 per cent over cost. These v/ere increased on July 24, 1918, to 2i and 31 per cent, respectively. 125547°— 20 9 130 HISTORY Or rr.ICES DURING THE WAR. the situation became acute and many outstanding orders remained unfilled.^ The closing of the Coffee Exchange. — Finally, on October 28, the board of managers of the Coffee Exchange suspended trading in futures. This action, it was explained, was prompted by advances of coffee in the Brazilian market above the price fixed in this coun- try. In the meantime negotiations had begun between the Food Ad- ministrator and the War Trade Board relative to a solution of the problem, and on October 14 the a.nnouncement was made that " no licenses for the importation" of coffee would be issued except to the United States Sugar Equalization Board." This action was taken to adjust coffee imports with shipping conditions, to effect an equi- table distribution to the trade, and to insure the supplies necessary for home consumption. This action seemed a. solution both for the tie-uj) in stocks which were being held under long-term contracts and for the high price in the Brazilian market. But the Food Admin- istrator wanted to release all stocks in this country, and on November 1 ordered that all coffee futures be liquidated at the maximum price before iSTovember 9. He further prohibited new operations and transactions on the exchange after November 2. The Coffee Ex- change resumed operations in order that contracts in force might be closed out, and by November 9 all deliveries of coffee on future con- tracts were completed and the trade secured the necessary supplies of coffee. All regulations of the Food Administrator were removed on December 31, 1918. Collateral Comjiodtttes. The Food Administration undertook control not only of food- stuffs but also of commodities intimately related with the production of foods. Ammonia and arsenic were intimately related to the con- servation of foods, while ice and twine affected the ultimate price of foodstuff's to the consumer.^ Ainm€ma. — The part which refrigeration plays in the preserva- tion of foodstuffs made ammonia a logical commodity for Govern- mental oversight. Moreover, there were the demands for ammonia for fertilizers and for the manufacture of explosives. The 1918 1 The following statement issued by the Food Administration on the occasion of closing the Coffee TCxchangc shows well the condition of affairs at the time : " It had been found that several houses operating- for foreign account bought coffee futures upon the New York Coffee and Sugar Exchange to the amount of several hundred thousand bags. The sellers have sold against coffee in stock and en route. The effect is to tie up this coffee from distribution for many months, and to necessitate extra tonnage being em- ployed if our supplies are to be maintained." 2 The Division of Miscellaneous Commodities, created immediately after the establish- ment of the Food Administration, at first handled some of these extra-food com- modities. Later this body merged with the Division of Chemicals which also had supm-vision over nonfood materials, and both together were known as the Division of Collateral Commodities. GOVERNMENT CONTROL OVER PRICES. 131 requirements of the Ordnance Department for ammunition alone were greater than the entire domestic production of ammonia for the preceding year.^ Further an important part of the American supply of anmionia had formerly been imported. The shortage of shipping had already cut down imports, and there was in prospect a still further cut during 1918.2 The needs of the situation were foreseen early by the Food Admin- istration, and even before the ammonia industry was put under license a system of effective agreements was devised. The ammonia manufacturers were called into conference and an agreement was made whereby the allocation of the American output of ammonia was put into the hands of the Food Administrator. He in turn appointed the interdepartmental ammonia committee, upon whom devolved the task of distributing the ammonia supply and deter- mining the supervision of allotments.^ A further agreement on the part of manufacturers obliged them not to sell anhydrous ammonia for more than 30 cents per pound, car- load lots, and aqua ammonia for more than 8J cents, carload lots. These informal controls came before the anmionia industry was brought under license. The agreement discussed above was made on November 19, 1917.'" The advantages to be gained from the complete control of the ammonia industry, however, led to the licensing of the importers, manufacturers, and distributors of ammonia, ammoniacal liquors, and ammonium sulphate by a proclamation of January 3, 1918. Ice. — Many conservation measures were put into effect, the most important of which was a campaign for the shutting down of artificial ice plants during the winter months and the utilization of natural ice. Artificial ice manufacturers were asked to use th& least possible amounts of ammonia and manufacturers were instructed to supply ammonia to concerns only in such quantities as would permit them to 1 See final report of Food Administration 1918, ibid. = As shown in the appended table, based on data from the United States Department of Commerce, American imports of ammonia (muriate) suffered a large decrease during the early years of the war. Receipts for 1917 were less than half the size of those of 1913, while the acute situation of 1918 virtually eliminated them: Calendar year. Pounds. Calendar year. Pounds. Calendar year. Pounds. 1913 9,019,418 7, 841, 546 1915 2,542,592 1,653,354 1917 2, 146, 549 1914 1916 1918 234, 904 3 This committee was made up of representatives of the War Department, Navy Department, Department of Agriculture, Department of the Interior, the War Industries Board, and the Food Administration. * Although the licensing of the ammonia industry was put into the hands of the Food Administration, the enforcement of the regulations promulgated was theoretically intrusted to the Department of Agriculture. However, the interdepartmental ammonia committee really enforced the rules wliich were put into effect. 132 HISTORY OF PRICES DURIXG THE WAR. operate their plants vrith a maximum degree of efficiency. Moreover, monthly consumption reports were required from each ice and refrig- eration plant by means of which a careful check was kept upon con- sumption. Where there appeared undue use by a concern, the manu- facturer who supplied the ammonia was notified to refuse to make further deliveries unless evidence was furnished that wasteful meth- ods would be discontinued. The efficacy of the price control over ammonia seems striking after comparing the price of ammonia in the year 1918 with prices in general. The extraordinary feature of the control is that a stable price was maintained during a season " at the outset of which we were faced with an apparent shortage of 60,000.000 pounds." This control is notable in the degree of informal control which obtained before ammonia was put under license. The jDrice of ammonia, liquid, an- hydrous, in cylinders, at New York, held at 25 cents per pound during the war until August, 1917, when it rose to 30 cents and stayed there through 1918. The conservation measures inaugurated in the refrigerating and ice-producing industries in the winter of 1917-18 resulted in harvest- ing more natural ice, and the spring of 1918 found one of the largest ice crops ever stored in the United States. There was no reason to fear any acute shortage then, but because of the importance of ice to the food program it was deemed advisable to see that ice prices did not exceed a nominal level in the various parts of the country. The industry was never put under license, but supervision was maintained throughout the summer of 1918. It was obviously impossible for the central office of the Food Administration to achninister control over the almost limitless array of ice distributors, especially when no one of them was subject to any direct regulations, and when no one of them made any reports as to his methods of doing business or as to the j)rices charged for his commodity. The supervision over ice prices was placed in the hands of the Federal food administrators for the various States, with instructions that they keep under con- trol the ice prices in their industrial districts. Price increases were investigated by these officials, and with them was left the task of determining the reasonableness of price advances in the territory that came under their jurisdiction. The theory applied in making such decisions was that " as far as possible the burden of any neces- sary increase should fall upon the large users rather than upon the small household consumer." ^ Arsenic. — The extraordinary demands for insecticides in the pro- duction of which the greater part of the domestic output of arsenic is consumed, together with the needs of glass producers, resulted in ' Final report cf the Food AdmiDistraticn, 1918. GOVEENMEISTT CONTROL OVER PRICES. 133 a spectacular rise in tlie price of arsenic even before the United States entered the war. Under the stimulus of this large demand the Amer- ican production of arsenic increased rapidly during the war, and in 1917 the output amounted to 6,151 tons, as against 2,513 tons in 1913, an increase of approximately 150 per cent. But this increased output was by no means commensurate with tlie growing demands of the country, and by late 1916 a shortage was threatening. In December, 1916, arsenic was selling at a price 134 per cent higher than the aver- age prewar level. The American entrance into the war accentuated the difficulties of the situation, and arsenic prices began soaring to unprecedented levels. By September, 1917, arsenic had reached a point 481 per cent above its average for 1913-14. Apart from the rise in price, moreover, the insecticide producers were complaining of their inability to secure arsenic. This condition had a direct bearing upon the food situation, and on November 15 a proclamation was issued which required all those engaged in im- porting', manufacturing, storing, and distributing white arsenic or engaged in the manufacture of insecticides containing arsenic to take out licenses within five days. . Eegulations were issued similar to those which were promulgated in the case of foodstuffs, and provi- sions were made for the securing of reports from licensees which showed the state of affairs in the industry. Measures were also en- forced which aimed at the elimination of hoarding, the prohibition of unreasonable profits, the prevention of waste, and the diversion of arsenic from less to more essential uses; and sales to others than manufacturers of insecticides, medicines, and such products as were required by the United States Government were forbidden, unless specially authorized by the Food Administration.^ Moreover, the price situation was immediately investigated, and on February 23 the producer's price of white arsenic was virtually fixed at a maximum of 9 cents per pound delivered at any point in the United States in car- load lots.2 This price was a cut of almost 50 per cent from the market price of 16.5,cents for the preceding month. It appears, however, that this new low price was not reflected universally in the consumer's price, since they were known to be paying as high as 30 cents per pound for small lots.^ The trade was therefore notified, on April 4, that the price of arse- nic to the consumers would have to be considerably lowered, and a margin of one- fourth cent per pound was declared to be a fair return ^ This latter regulation, it will be noted, made it illegal to sell arsenic without permis- sion of the Food Administration to glass producers, who were normally large consumers. ^ An extra half cent per pound was allowed for less than carload lots. ^ Review of Control of Arsenic and Arsenical Insecticides. Files of U. S. Food Adminis- tration. 134 HISTORY OF PRICES DURING THE WAR. to dealers who sold in carload lots. In this waj the selling price of arsenic to consumers was fixed.^ The Army was daily increasing its demands for arsenic, both for airplane " dope " and poison gas, and by the middle of the summer of 1918 their needs were estimated at 6,400 tons for the coming 12 months. Added to this were the British requirements of 2,000 tons, making the military needs of the country 8,400 tons. As stated above, however, our total output of 1917 was equal only to 6,151 tons, and this amount, it was estimated, would be increased through new production facilities by some 2,000 tons. Therefore, our entire domestic production would barely meet our military demands. Investigation into other possible sources showed that if we included all our stocks and such supplies as were available in Canada we might possibly count on a maximum of 14,400 tons for the year ending July, 1919. There would then be available for agricultural and other uses about 6,000 tons. Of this, 1,000 tons had already been delivered to producers of sheep dips and glass. Our requirements of 1917-18 had been approximately 11,300 tons, of which 8,000 had gone into agricultural uses, 2,000 into the manufacture of glass, and 1,300 into the drug industry and other miscellaneous uses. It appeared, there- fore, that there would not be sufficient arsenic to supply even our agricultural needs. Curtailment of uses as far as possible was then the only logical remedy and immediately all deliveries of arsenic for the manufacture of glass were stopped. Economies were also enforced in the manu- facture of sheep dips and Paris green, and substitutes were used wherever possible.^ The situation finally was relieved, and not only were the war needs met but also those of the insecticide manu- facturers. Unlicensed Control ovek Commodities at Retail. Oiie of the two distinct handicaps to complete control over foods which the Food Administration had to face at the outset was that clause in the act which exempted dealers in foods at retail from li- cense control when their gross sales fell below $100,000 annually.' But so firmly did the Food Administrator Ibelieve that Congress was in error upon that point that the Food Administration set about im- mediately to control the retail trade by other methods. It seemed 1 Otlier margins were fixed for sales by dealers who sold in small quantities. An addi- tional three-fourths cent per pound was allowed for sales which were above 20,000 pounds but less than a carload ; 1 cent for sales ranging from 5,000 to 20,000 pounds ; 2 cents for quantities varying from 1 keg to 5,000 pounds ; and 3 cents for sales of less than 1 keg. " Special regulations issued hy the Food Administration on Oct. 24, 1918, fortede the sale or delivery of white arsenic of certain strength to any person for the manufacture of sheep or cattle dips, and on Oct. 31 licensees were forbidden to use white arsenic in the manufacture of sheep or cattle dips without the. special permission of the Food Ad- ministration. s The other handicap was the exemption of producers and proaucers' associ;itions. GOVEEIfMENT CONTEOL OVER PRICES. 135 patent to high officials in the administration of food control that if both ends of the channels of distribution were left uncontrolled (that is, the producuig and the retailing ends) the consumer would after all have no protection against exorbitant charges by retailers. The law, they reasoned, by its specific exemption might even seem to encourage high prices. The class of retailers exempted by the act, moreover, embraced more than 95 per cent of the total number of re- tailers in the United States. Since the penalties for violations of the broad grants of power under section 4 seemed of doubtful char- acter, the Food Administration abandoned hope of enforcing its rules upon retailers directly, and worked out schemes to enforce them ni- directly and despite the act. It soon came into a considerable control over the retail prices of foods through pressure by the wholesale li- censees, the organization of the retail trade, a check upon retail prices by consimiers' reports, and the publication of " fair price " lists. Indirect control tlirough licensees.— ThQ most, ingenious scheme by which the Food Administration brought the great body of unlicensed retailers under control was by a control of their supplies which came from the licensed wholesalers.^ The Food Administration could grant or withdraw licenses at discretion and was in a position, there- fore, to prohibit licensees from selling food commodities to dealers who violated the food control act. It, with that in mind, set up the so-called rule 17 of the General License Kegulations which became t\\Q. basis of control over the reteen from $4.50 to $5 ; reduced price, $3.50 for all sizes. Secretary Lane, with the coal production committee, highly pleased at the outcome, sent the coal operators home happ}^ by a closing ad- dress, declaring " tliis is a very novel proceeding. I think I am within the fact when I say that no such hearing or gathering as this has ever been held in the United States before, or perhaps in the world." ^ Theie Repudiation ey Seceetaby Baker. » Scarcely had the Peabody-Lane prices been agreed upon and the operators had reached their homes then the agreement was flatly de- nounced and repudiated by Secretary of War Baker. The Secre- tary of War, who was president of the Council of National Defense and therefore in authority over the Peabody coal production com- mittee, wrote to the director of the council on June 30, characteriz- ing the whole proceeding of the coal meeting as misleading and dis- claiming any authority for price fixing.^ This show of seeming ^ Senate hearings refeiTed to above. 2Tlie letter written to W. S. Gifford, Director of the Council of National Defense, by Newton D. Baker, its president, on June 30, 1917, follows iii^full : " My attention has been called through the newspapers to the action reported to have been taken at Washington, D. C, during the past week by the so-called committee on coal production of the Council of National Defense, in cooperation with certain coal producers and representatives of coal-mining enterprises, with regard to the price of bituminous and anthracite coal. " The facts seem to be that the coal production committee invited to Washington various coal operators and arranged conferences between them, members of the coal production committee, and members of the Federal Trade Commission, leading to the adoption of reso- lutions in favor of an early and accurate determination of the costs involved in the pro- duction of bituminous and anthracite coal, as a basis for some future action by some offi- cial agency of the Government in fixing fair and just prices for these products, should any such agency be given power to do so. Pending such an g.scertainment of costs this meet- ing seems to have adopted a resolution whereby the operators present agreed to sell bituminous coal at a price not higher than $3 per ton, and that this obligation should lemaiu in force until some such action had been taken by an authorized governmental agency. " The color which has been given to this meeting and this resolution in the newspapers may well mislead the public into believing that the Council of National Defense has either undertaken itself to fix the price of coal, or to sanction its being fixed by the coal px-o- ■ductiou committee, or that committtee in conjunction with the coal operators. I, there- fore, as president of the Council of National Defense, write to say that the Council of National Defense has no legal power, and claims no legal power, either to fix the price of coal, or to fix a maximum price for coal or any other product. The coal production com- mittee is a subordinate committee of the Council of National Defense, purely advisory in its character, formed for the purpose of advising the council as to steps which might be recommended leading to a stimulation of production and distribution of coal. No power has been even attempted to be delegated to it to consider or deal with the question of price, and any action taken by that committee, or sanctioned by that committee, dealing with price, either fixed or maximum for coal, is clearly beyond the legal power of the coal production committee and of the Council of National Defense from which the com- mittee derives whatever authority it has. "As you are aware, the Federal Trade Commission has been directed by the President to ascertain for his information the costs involved in coal production, I am to some GOVERlsrMElsrT COIsTTEOL OVEE PEICES. 159 dissension within the Government threw chaos into the ranks of the producers and uncertainty whether the agreement was or was not longer binding upon them or upon the Government/ The whole affair, believed by Secretary Baker to be a dangerous precedent and destined to forestall a firmer control by the Government, produced a situation of utter confusion..^ It appears that the failure of officials to agree among themselves upon an immediate relief to the coal situation, and the threatening shortage, provoked rather serious discussion in several States dur- ing the summer. Ohio, Indiana, Illinois, Wisconsin, and others, through their State councils of national defense, began to plan in- dependent action. Scores of individual letters from various sections showed clearly that the rising prices and the coal shortage were touching the people to the quick.^ The Illinois Council of National extent familiar with the progress made by the commission. The information I have from that and other sources, I think, justified me in believing that the price of $3 suggested, or agreed on, as a maximum, is an esorhitant, unjust, audi oppressive price. " The fact that these conferences were attended by members of the Federal Trade Com- mission and by members of the Council of National Defense, of course adds nothing to their legal powers, and I am sure that none of my associates in the council will dissent from the view that I have herein expressed, both on the limitation upon the powers of the council and the coal production committee, and the efEect of the action alleged to have been taken. "I write this for the information of the coal production committee, and for the guidance of all other subcommittees of the council." 1 An especially lucid definition of the general price functionsi of the Council of National Defense as he saw them and as provoked by the coal meeting was made by Newton D. Baker in a letter to Director W. S. Gifford on July 13, 1917. 2 Francis S. Peabody, after' the repudiation of the coal prices, by Secretai-y Baker, wrote Director Gifford the following letter, in part, on July 13, 1917 : " The letter of the Secretary of War of June SO, criticizing the tentative maximum prices established for bituminous coal, and the action of the committee on coal produc- tion, has created a serious condition in the industry. Unless some definite announcement is made at once, by the Council of National Defense, which will remove existing uncertain- ties and promptly reestablish the active production and distribution of coal, hardship and suffering will result this winter. " The Secretary's letter carrying such weight, a-S it naturally would, with the public, and characterizing the tentative prices as it does, has produced in the minds of a gi-eat number of cons.umers the expectation that by deferring their purchases they would obtain their supplies at figures below those heretofore named. The natural and inevitable result of these uncertainties is that the buying of bituminous coal for storage purposes has pi-ac- tically ceased, and normal current stocking is gravely threatened. * * * " The sentiment of the operators, as expressed in the convention, had a marked effect on prices, even before any definite action had been taken, and before the convention ad- journed prevailing abnormally high prices had substantially disappeared. With deference to the opinion of Secretary Baker, as expressed in his letter, I still adhere to the opinion that the action of this convention which resulted in the establishment of tentative maxi- mum prices, pending the conclusion of the investigation of costs of production being made by the Fedei-al Trade Commission, was not only wisely taken but was absolutely necessary to stimulate production, stabilize market conditions, and secure equitable distri- bution of coal to the people at fair and reasonable prices." "The following letter fi-om CoL A, M. Shook, dated June 16, 1917, and showing the disquiet in Tennessee over the coal situation, was typical of others : " In this particular section the question of fuel is to-day the most vital one. The abnormal demand for coal is such that mine operators are enabled to sell their output at prices varying from 100 to 300 per cent above prevailing prices of one year ago. I see no way to remedy these conditions except by Federal legislation. As long as the consumer will agree to pay from $3 to $5 per ton for coal that was selling a year ago 160 HISTORY OF PRICES DTJRIXG THE WAR. Defense, indeed, went so far as to discuss seizure of the mines by the State, independent of the National Government.^ The pressure of the State councils of national defense from the northern Middle States — Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minne- sota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin — which was exerted upon the national council at a meet- ing in Chicago was a considerable factor in urging the Government to action. (3) THE FOOD AND FUEL ACT. The alarm at the rising prices for coal, and the distressing status of its di.stribution prompted Senator Pomerene to urge, against at- tack from several sides in the Congress, a rider to the pending Lever bill, permitting the President to fix coal prices. The President, too, took a firm personal interest in the coal problem, and finally, on August 10, 1917, the food control act was passed with the Pomerene amendment and is now often called the food and control act.^ The Fuel Administration was created by the President under the authority given him by this act. To no other price-fixing agency at Washington were there given such definite legal powers to fix prices or such sharp instruments for their enforcement. The Power to Fix Coal and Coke Prices. The food and fuel act, without any ado, gave authority to the President, whenever in his judgment it was necessary for the efficient prosecution of the war, " to fix the price of coal and coke, wherever and whenever sold, either by producer or dealer, to establish rules for the regulation of and to regulate the method of production, sale, shipment, distribution, apportionment, or storage thereof among dealers and consumers, domestic or foreign." st $1.50 per ton, the operator will not refuse to accept it. As a rule, here, the operator is the only beneficiary from these ahnormal prices. Labor has not been materially ad- vanced. Freight rates are practically the same as they were a year ago. The con- sumer pays the price and the operator reaps the benefit. These conditions will con- tinue unless legislative authority is placed somewhere to control these abnormal con- ditions." ' The committee on law and legislation of the State Council of Defense of Illinois, highly agitated by their failure to find relief otherwise, on Aug. 7, 1917, recommended steps no less drastic than the following : 1. Seizure by the State, and operation by it during the period of the war, of the coal mines in this State. 2. Call an immediate meeting of representatives of the State councils of the neigh- boring coal-producing States so that an adequate and uniform measure of relief can bo at once contemporaneously adopted and enforced in all these States. 3. Either separately or in conjunction with the State councils of the neighboring coal- producing States, take immediate steps to bring about the adoption of a Federal law which will give full and sweeping Federal powers of control over prices and distribution to an administrative body possessing the machinery to render complete and instant relief. 2 The so-called Pomerene amendment was written into the food control act as see. 25. (Public Documents, No. 41, 65th Cong.) GOVEEFMEISTT CONTROL, OVEE PRICES. 161 Enforcement Peovisions. A no less unusual feature of the food and fuel control act than the breadth of its delegated powers was the stringency of its enforce- juent provisions. The fuel section of the act not only allowed a fine of $5,000 or two years of imprisonment as a punishment to violators, but gave the President power to requisition and take over plants virtually at his own will. The law declared, in part, " that if, in the opinion of the President, any such producer or dealer fails or neglects to conform to such prices or regulations, or to conduct his business efficiently under the regulations and control of the President as afore- said, or conducts it in a manner prejudicial to the public interest, then the President is hereby authorized and empowered in every such case to requisition and take over the plant, business, and all appur- tenances thereof belonging to such j^roducer or dealer as a going concern, and to operate or cause the same to be operated in such manner and through such agency as he may direct during the period of the war or for such part of said time as in his judgment may be necessary." (4) THE KINDS OF FUEL CONTROL. Apparently the persuasions of the chairman of the Federal Trade Commission had influenced Senator Pomerene to urge his coal amendment to the so-called Lever bill in the hope that coal control, when begun by the Government, would be delegated to the Federal Trade Commission. The clauses of the act itself make frequent authorizations for coal control, referring over and again to the Fed- eral Trade Commission and making no mention of any other body in particular.^ But the President, who had started the Federal Trade Commission long since upon an inquiry into coal costs and allowed it to remain in semiofficial control for a fortnight after the passage of the act, finally set up an independent body to control coal. The Fuel Administra- tion, obliged to shape its general plans of administration somewhat after those written into the law for the Federal Trade Commission, soon organized and began a control over distribution, production, conservation, and prices. ^ George H. Cnshing, in an article on " Ending the coal dilemma," in tlie Atlantic Monthly for Novemher, 1918, says in part : " The Federal Trade Commission had a well- defined ambition to control the coal industry. Indeed, William B. Colver, now its chair- man, and several of its employees had, while the Lane-Peabody conference was still sitting, appeared before a Senate committee to outline their plan of control. At about that time Mr. Colver had persuaded Senator Pomerene, of Ohio, to present his plan to Congress as an amendment to the Lever bill then under consideration. It is now a part of that statute.'' 12G547°— 20 11 162 HISTORY OF PRICES DURING THE WAR. Obganization. The President, who had named a Food Administrator immediately after signing the food and fuel act, did not announce his appoint- ment of Harry A. Garfield as Fuel Administrator until August 23, 1917. The new administrator, during the late summer and early fall, began the appointment of State and local fuel administrators and committees. The Fuel Administration finally was organized some- what like the Food Administration, with an hierarchy of adminis- trators and committees penetrating even the smallest of the cities in the country and all heading up to the office at Washington. That similarity of method was not to be wondered at, since fuel problems, like food, have peculiarly local aspects. Control Over Disteibution. The Fuel Administration, impressed over and' again by the de- mands for empty cars, saw shortly that one of its most formidable problems would be to effect a proper distribution of coal. The Sen- ate inquiry, through the testimony of John F. Fort, of the Federal Trade Commission, had found that ^ " transportation was the great- est problem during the whole of 1917, as was pointed out in both the May and June, 1917, reports of our commission. The facts disclosed at the hearings and in our investigations made it clear that the percentage of cars delivered at the mouth of the mine by the railroads was in almost all cases far below the number of cars which the increased production by the operators could hare used if furnished." By all odds, the most important step taken for a better distribu- tion of bituminous coal orders, and that looking to a relief in the transportation congestion problem, was the establishment of a zone system on March 22, 1918.^ That system, carefully worked out and finally put into effect by the joint efforts of the Fuel and Eail- road Administrations, had in mind the saving of car-miles and offered a sure and flexible means of controlling distribution. Coal theretofore had been distributed practically without regard to the distance between the mine and consumer. The consumers, the Government, and the distributors each to a degree had, amid the tremendous shortage prevailing, been guilty of carrying coal to Newcastle. It had been the ordinary thing for producers or pur- chasers to pass by nearer stores and ship coal halfway across the continent to satisfy their choices in selection. A plan was accord- ^ Coal hearings of Senate committee pursuant to Senate resolution 163, held December, 1917, and January, 1918. 2 This whole plan is outlined in full by the Fuel Administration in its Publication No. 21 and in its " General Orders, Regulations, and Rulings," p. 213-351. GOVEKNMEISrT COI^TEOL OVER PRICES. 163 ingly established^ by which loroducers were not allowed, without a si^ecial permit, to sell coal beyond designated consuming zones. The main object of the zone system was to restrict eastern coal to eastern markets and fill vacancies in the Central and Western States with near-by coal produced in those States. The zone system af- fected all bituminous coal except that for railroad fuel, coal for movement on inland waterways, and coal delivered to Canada. The zones, which were not made applicable either to anthracite coal or coke, were made effective for bituminous and cannel coals on April 1, 1918. It would seem that the methods for enforcing the zone plan were efficacious, since the Fuel Administration prohibited the distribution beyond the limits of the zones, and the Eailroad Ad- ministration helped to enforce them by railroad embargoes. The movements of bituminous coal, regulated by the zone system, was about 300,000,000 tons, or QO per cent of the total production. It was estimated by the Fuel Administration that there would thus be realized a saving, on the round trip from and to the mines, of almost 160,000,000 car-miles. That saving was enough to permit the same cars to make nearly 300,000 additional trips from the mines, equiv- alent to an increase of 5 per cent in the production.^ OOXTROL OVEK PRODrCTION. The tremendous exigencies of war, since this country had never in peace times feared so gigantic a shortage of coal, made the in- 1 These zones were geographical units in which the Fuel Administration, with the assistance of the Eailroad Administration, regulated the distribution and apportion- ment of bituminous coal. They were designated by letters and covered the foUowing territories : Zone A — Missouri, Arkansas, Kansas, Oklahoma, and Iowa ; zone B — Minne- sota,^ the ^Upper Peninsula of Michigan, and Wisconsin on the western bajsls of Lake Michigan, and on Lake Superior ; zone C — Illinois : zone D — Indiana : zone E — western Kentucky; zone F— Virginia, eastern Kentucky, and Tennessee: zone G — certain parts of Tennessee, Georgia, and Kentucky ; zone H— Alabama ; zone K— Ohio ; zone L — certain parts of West Virginia ; zone M — certain other portions of West Virginia ; zone N cer- tain other portions of West Virginia and Virginia; zone P — northern West Virginia, Pennsylvania, and Maryland. " The primai-y savings, contemplated by the Fuel Administration in the announcement of its zone system on Mar. 22, 1918, are briefly summarized. It was believed that, in addition to the saving in transportation, there could be effected a retention of about 5,000,000 much-needed tons for the Eastern States, which, theretofore, had gone west all rail. The plan, it was thought, would eliminate the movement of more than 2,000,000 tons of Pocohontas coal to Chicago and other western points over a haul of 660 miles. Chicago, then, under the plan, would be compelled to obtain that amount instead large! v from southern Illinois mines, an average haul of 312 miles. This change alone meant, allowing for the differences in quality in the two coals, a saving of 11,400,000 car- miles, or 285,000 car-days. Such a saving, if utlUzed in West Virginia mines, would permit 14 additional round trips of 20 days each and an additional oroduction of at least 700,000 tons of Pocohontas coal. In like manner it was flgiired that in the movement of 550.000 tons annually from Kanawha districts to Wisconsin points there could be saved 2,500,000 car-miles, with a consequent increased production of about 300,000 tons. A saving of 800,000 car-miles in the movement from southeastern Kentucky to Chicago was calculated to inrvease pro- duction 50,000 tons. Still another elimination of the Indiana to Iowa movement was figured to save 1,600,000 car-mUes and permit 100,000 tons additional production 164 HISTORY OF PRICES DURIT^G THE WAR. crease of production generally the primary concern in the coal prob- lem. It is estimated, in a general way, that an army uses 10 tons of steel per man each year. But since it requires, on an average, 5 tons of coal to produce 1 ton of steel, 50 tons of coal are needed for each soldier.^ The situation was the more threatening since England, which ordinarily produces coal in abundance, had difficulty with her coal-production progi^am and had come seriously to rely upon Ameri- can coal. This statement is true, not in the sense that England took to shipping that needed supply from American ports to her own in the form of coal, but in the sense that she came in large ways to rely upon our steel, which could be shipped with a lesser tonnage. The prices fixed tentatively by the early coal-production committee Avere not accepted, but the Peabody-Lane agreement succeeded in im- pressing industry with the paramount necessity for increasing pro- duction. Mr. John F. Fort, of the Federal Trade Commission, indeed, who took a hand in the Peabody-Lane agreement with the operators at the three-day conference beginning June 26, 1917, said frankly : ^ When \Ve were cojasidering tliis question of fixing the price, the question of production was the thing that entered into the problem most seriously. The coal output was recognized as at that time not to be sufficient to meet the cur- rent demands. The business interests of the country were perfectly willing to pay the price fixed at that time, and were paying a very much larger price, and to them the question of getting coal was more important than the price. The Fuel Administration, facing an exceedingly intricate problem, recognized in the coal shortage one of its most difficult problems. There has, for all of that, been made a charge that it gave too much emphasis to the price phases of the problem and too slowly turned to the production phases, and that this error resulted later in a serious coal shortage in the country.^ It can not be judged whether that was true or not. It would not, if true, have been strange, since the coun- try always has had too much coal quickly to appreciate the serious- ness of a shortage. Nor did the country realize how dependent the world had become upon the American supply in 1917. There is especial interest, in the face of these facts and with a knowledge of the steps taken to alleviate the coal situation, to note the course of production during 1917 and later. A preceding table in this chapter shows that the total bituminous-coal production in the month of May, 1917, was, in round numbers, 41,000,000 tons. It jumped the following month to 47,000,000 and remained relatively near that figure each month for the remainder of the year, except for ^ An estimate made by George H. Gushing. 2 Senate hearings referred to above, p. S54. 3 This notion has been especially urged by George II. Gushing, in the Atlantic Monthly for November, 1917, pp. 589-598. , GOVERNMEIirT COISTTROL OVER PRICES. 165 September, when it fell to 45,000,000, and for December, wlien it fell to 44,000,000. The 1918 production remained near or above 50,000,000 tons per month from March until November. . There then began a skimp in production which had not j^et disappeared by the early- summer Df 1919. The December, 1918, production, although the pre- ceding months it had been around 50,000,000, fell to 40,000,000 tons. In February, 1919, it fell to 31,000,000 and did not rise over 2,000,000 tons above that amount either in April or May. Altogether 1916, 1917, and 1918 were, each in their turn, all record years for the indus- try. The control over coal production did, beyond any question, stimulate production. The total production of bituminous coal in this country in 1916, before Government regulation set in, was 502,000,000 tons. When Government control began, that amount was increased to 551,000,000 tons in 1917 and to 585,000,000 tons in 1918. CoNTROi. Over Conservation. It is of passing interest in a price inquiry that the Fuel Adminis- tration, though on a much less extensive scale than the Food Admin- istration, did institute a coal conservation program. That program in the main, went little further than a cutting down of fuel for cer- tain nonwar industries, the advocacy of lightless nights, the skip- stop systems, no-coal days, and the recommendations against uses of coal for private yachts and for country clubs. (5) THE CONTROL OVER COAL PRICES. The administration, after securing power from Congress to act, found itself squarely under the necessity of bringing some kind of relief to the coal situation. The distribution and price phases, whether or not more fundamental than increased production, were after all sorer points with the people at large, and the}' were the first to which the Government turned. It is of especial note that the President himself, after analysis of the Federal Trade Commission's cost figures at the White House, fixed the basic prices for bituminous and later for anthracite coal, as well as jobbers' margins, before ap- pointing a Fuel Administrator. But prior even to his putting a hand upon the alarming rise in coal prices, the President sought more efficaciously to distribute coal by appointing a new director of pri- ority of transportation of freight.^ The new director, under ap- proval of the President, within three days after his appointment, di- rected that rail and steamship lines give bituminous coal shipments to the Northwest preference over all other shipments.- Now that a 1 Judge Robert S. Lovett, appointed Aug. 2 ,1917. = A full account and copy of this important priority order may be found in the Com- mercial and Financial Chronicle, Aug. 25, 1917, p. 766. 166 HISTORY OF PRICES DUEIISTG THE WAR. law had passed, apparently the Government meant to lose no time be- fore controlling the distribution and prices of coal. An inquiry into the control that was exercised over coal prices leads naturally into a study of the prices fixed for bituminous coal at the mine, those fixed for anthracite coal at the mine, the margins established to prevent extortionate profit taking by middlemen, the control over coal at retail, and the peculiarly refreshing cost data that were later made the bases for coal price fixing. Price Fixing of BitxjminoL'S Coal at the LIines. The need for the fixing of a price for soft or bituminous coal in the summer of 1917 was, perhaps, more XDressing than for fixing one for hard or anthracite coal. The production of bituminous coal, at any rate, makes up in bulk well above three-quarters of our annual total 500,000,000 tons of outi^ut and its rises in price were far more violent than those of hard coal. Of the total bituminous output, moreover, about 80 per cent goes to the railroad, public utility, and manufacturing industries which were our most vital secondary war- making weapons. It does not appear that the President entered again into protracted conferences with the industry, such as the Peabody-Lane conference or those which attended the later price fixing of iron and steel, while formulating the basic tentative prices which finally he announced from the White House on August 21, 191T. Prices fixed T?y the President. — The President upon that day fixed a schedule of prices for all bituminous coal in the country, f. o. b. mine basis for tons of 2,000 pounds, " subject to reconsideration when the whole method of administering the fuel supplies of the country shall have been satisfactorily organized and put into operation." He further expressed an intention soon to control these prices not only at the mines but at wholesale and retail. The President, in the interest of fairness, divided the country into 29 coal districts and decreed that every producer in each district should market his coal at the particular price fixed there for coal, run of mine, i)repared sizes and slack or screenings. These newly fixed prices ranged in the various districts from $1.90 to $3,25 for run of mine, $2.15 to $3.50 for prepared sizes, and $1.65 to $3 for slack or screenings.^ 1 Regarding these prices, the President's statement said : / Figures submitted to the commission * * * show that most of the present prices now charged * * * are far in excess of cost as shown by the operators' books, asany of the operators frankly take the position that they are trying to get for their coal the highest prices possible under the present demand and are refraining, even at prices greatly increased over last year, from contracting their output to the extent of their usual cus- tom. They defend this action by claiming that under the operations of the law of supply and demand they have for many years past been getting little more for their coal than the bare cost of production ; that the mining of bituminous coal during that period has been a most unprofitable industry, and that this is their chance to recoup themselves for the losses of several years. Accordingly, they are demanding prices at the mine to-day which run from 50 per cent to several hundred per cent over the cost of their output. GOVEENMEISTT CONTROL OVEE PRICES. 167 These prices were, so the President said, " based upon the actual cost of production and deemed to be not only fair but liberal as well," and " under them the industry should nowhere lack stimulation." ^ The new soft coal prices ranged from 20 to 35 per cent under tha maximum prices established on June 28, previous to the Peabody- Lane agreement. The Peabody-Lane prices for Pennsylvania coal had been $3 for mine run and $3.50 for domestic lump, egg, and nut. The President's prices were $2 for mine run and $2.25 for the prepared sizes. The Peabodj'-Lane prices for West Virginia coal were likewise $3 for mine run and $3.50 for domestic lump, egg, and nut, while the President's prices were $2 and $2.25, respec- tively. The Peabody-Lane prices for Illinois and Indiana coal were $2.75 for mine run and steam sizes, and $3.50 for screened domestic sizes. The President's jjrices, on the other hand, were $1.95 for mine run and $2,20 for prepared sizes. The new jprices were, indeed, be- low the price tentatively fixed earlier by the Navy for Virginia coal at $2,335.2 Mr. C. E. Lesher, delegated from the Geological Survey for the statistical work upon coal at the Fuel Administra- tion, very tersely remarks that the bituminous prices fixed by the President on August 21 were as far below the Peabody-Lane prices established June 28, as they in turn had been below the prevailing market.® Modifications made ty the Fuel Administrator. — The President, in his announcement of bituminous coal prices prior to his appoint- ment of a Fuel Administrator, had taken especial care to designate them as tentative and subject to change by any fuel agency which might be created. The Fuel Administrator did, in point of fact, during the remainder of 1917 and particularlj^ in 1918, make con- siderable modifications in general, and in particular districts, of the original prices. The Fuel Administrator, made aware of serious demands from miners for wage increases in West Virginia, Illinois, Indiana, Ohio, and other districts early in the fall, wrote the President* and asked that bituminous coal prices be increased by enough to allow operators to satisfy wage demands. The President thereupon issued an Executive order, on October 27, 1917, to be effective October 29, 1917, allowing producers to add an additional 1 Letter from the President, announcing tlie new coal prices, dated Aug. 21, 1917. 2 It was estimated that the coal producers, under the new price, would have to refund approximately 131 cents per ton to the Government, since the fixed price of $2 per short ton was calculated as equal to .$2.20 per long ton. The Secretary of the Navy, when in- formed of the new Government prices, said in part : " The Navy will, of course, get back any excess we paid in the $2,335 advance, as it was agreed that this was merely a tentative figure. When I fixed that rate I took the highest price suggested by any one whose .judgment of prices at the mine I listened to. I wanted to be sure that enough was paid, and resolved all doubt in favor of the coal dealers. I hope now that we will get coal at a reasonable figure." 3 " Prices of Coal and Coke," by C. E. Lesher, W. I. B. Price Bulletin No. 85. *Oct, 26, 1017. 168 HISTOKY OF PEICES DURING THE WAR. 45 cents for the bituminous coal at the mine to every price fixed on August 21, or subsequently modified.^ It was later ruled by the Fuel Administration ^ that consumers having contracts for the pur chase of coal, made before August 21, 1917. at j^rices below the President's prices, need not add 45 cents to those contract prices, when the early contracts contained no provision for a variation in X)rice to correspond with changes in the wage scale. The 45-cent increase for bituminous coal was made generally applicable except for Alabama, a nonunion State.^ Alabama, because the Fuel Ad- ministration found her producers' and miners' committees in agree- ment upon a scale of v.'ages, was excepted from the terms of the Washington wage agreement of October G and the Executive order of October 27, 1917.^ The Fuel Administrator, on the other hand, issued an order May 24, 1918, and effective the following clay, reducing the price of all bituminous coal by 10 cents per net ton of 2,000 pounds, f. o. b. mines in various districts. The reduction pertained to all bituminous schedules, irrespective whether there had or had not been modifica- tions of the President's prices, and was made in no way to affect the 45-cent increase that had been previously allowed.^ This reduction was made because of the estimated general leveling and lowering of costs of production, accomplished by the elimination of all prefer- ^ There follows in full a copy of this important order, increasing the fixed price for fcituminous coal by 45 cents subject to two esceptions, issued Oct, 27, 1917 : The scale of prices prescribed Aug. 21, 1917, by the President of the United States for bituminous coal at the mine, as adjusted and modified, by order of the United States Fuel Administrator, to meet exceptional conditions in certain localities, is hereby amended by adding the sum of 45 cents to each of the prices so prescribed or so adjusted and modified, subject, however, to the following express exceptions : (1) This increase in prices shall not apply to any cojal sold at the mine under an exist- ing contract containing a provision for an increase in the price of coal thereunder in case of an increase in wages paid to miners. (2) This increase in prices shall not apply in any district in which the operators and miners fail to agree upon a penalty provision, satisfactory to the Fuel Administrator, for the automatic collection of fines in the spirit of the agreement entered into between the operators and miners at Washington, Oct. 6, 1917. This order shall become effective at 7 a. m. on Oct. 29, 1917. -Jan. 25, 1918. " Alabama was excepted by order from the Fuel Administrator dated Oct. 31, 1917. * Alabama producers and miners, who had been allowed to make a separate and satis- factory agreement effective Feb. 6, 1918, came to a new agreement on Apr. 20, and they too were given the 45-cent increase (as of the order of Oct. 27, 1917) effective May 15, 1918. s The effect of the order making a reduction of 10 cents per net ton from the mine price on all bituminous coal shipped after 7 a. m.. May 25, 1918, is that no one shall aslj, demand, or receive more than the applicable Government mine price thus reduced for any coal shipped after 7 a. m.. May 25, 1918, unless the same was shipped pursuant to a bona fide contract enforcible at law entered into prior to Aug. 21, 1917. Contracts made between Aug. 21, 1917, and Dec. 29, 1917, do not authorize any exception to the above. Contracts made after Dec. 29, 1917, must, under the provisions of the order dated Dec. 24, 1917, contained in Fuel Administration Publication No. 16, provide that all shipments thereunder shall be at the applicable Government mine price at date of shipment. GOVERlSrMEiSrT CONTROL, OVER PRICES. 169" ments in car supply, brought about by the President acting through the United States Eailroad Administration. In addition to the above general increase of 45 cents above the President's prices, and later decrease of 10 cents per ton, applicable virtually to the whole lot of bituminous coal in the country, the Fuel Administrator made numerous lesser modifications of the Presi- dent's prices within various particular districts. The general intent of these many district changes was to adjust more precisely the selling prices to the varying costs of each district by comparison with other districts, and of various sections within the same district. The President, for example, had fixed a flat price of $2, run of mine, for all coal in Pennsylvania, Mr. Garfield, at different times, divided Pennsylvania into sections on the basis of similarity in production costs, and not only assigned each section of the district a separate fixed price in accordance with its costs of production, but increased those prices somewhat above the President's prices. The modified prices, without here designating the districts, ran $2.25, $2.75, $2.60, $2.60, $2, $2.50, $1.90, and $2.95, respectively. The Ohio prices which the President had fixed at $2, run of mine (thick vein), and $2.35 (thin vein), in like manner were modified to meet the costs instead of 24 different cost districts, and the prices of $3.75, $3.25, $2, $2.35, $3, $2.10, $2.50, $2.50, $2.25, $2.50, $3, $1.90, $2.50, $2.30, $2.95, $2.05, $2.45, $2.45, $2.20, $2.45, $2.95, $1.90, $2.05, and $2.50 established.^ Perhaps the most important of the revisions made of the original prices were those for eastern Kentucky; Kanawha, W. Va. ; Georges Creek, Md. ; central Pennsylvania; and Hocking, Ohio. These typical illustrations and others which may be made for any particular coal district, show that the Fuel Administration did allot much more carefully than had the President, prices with respect to locality costs, and that it generally increased the Presi- dent's prices. A comparison of prewar and f^xed prices. — It can not be said how much the fixing of bituminous-coal prices by the President and their subsequent control and modification by the Fuel Administration held prices down. It would be inaccurate, indeed, to compare the fixed prices with the previously tabulated market quotations for pre- regulation months, since the bulk of bituminous coal has always sold by contract and at much below the " spot " market. But in order that there might be afforded some rough measure of the actual realiza- tion prices, Mr. C. E. Lesher has prepared a unique scheme for the reduction of the preceding weighted market prices to theoretical ^ For a more detailed designation of the yarioiis new coal districts established by the Fuel Administration, and a . comparison of the many modifications made of the President's prices, one should refer to the rules and regulations of the Fuel Administra- tion appended to thig inquiry. 170 HISTORY OF PRICES DURING THE WAR. realization prices.^ These x>rices, which, perhaps, represent more accurately the true status of the weighted average bituminous coal market for the United States than any data that have been found, afford the best known basis for a comparison of bituminous prices before and after control. They give a fair measure of the actual movement of coal prices up to September, 1917, when price fixing had begun, and. therefore, a measure by which to compare the subse- quent fixed pricas. WEIGHTED REALIZATION TRICES OF ALL BITUMINOUS COAL IN THE UNITED STATES. ACTUAL PRICES PEU KET TON. Month. 1913 1914 1915 1916 1917 1918 $1 22 I.IS 1.17 1.17 1.17 1.17 1.17 1.18 1.18 1.19 1.19 1.18 $1.17 1.18 1.10 1.17 1.17 1.16 1.18 1.17 1.18 1.18 1. 16 1.16 81.18 1.18 1.15 1.12 1.12 1.11 1.11 1.11 1.12 1.12 1.13 1.18 SI. 19 1.17 1.15 1.20 1.20 1.20 1.20 1.20 1.23 1.29 1.45 1.46 $1.48 1.48 1.45 2.:ot 2.44 2.46 2.30 2.31 2.12 2.12 2.19 2.19 .112. 19 2.20 March 2.21 2.71 2.75 2.66 Jiilv 2.66 2.67 2.67 2.67 2.67 December 2.67 1.18 1.16 1.13 1.24 2.07 2.53 RELATIVE PrjCES. January. . . Febraary. . March April May June...... July August September October... November. December. Year 104 100 99 101 128 101 99 99 100 126 100 99. 98 98 124 100 100 95 102 196 100 100 95 102 208 100 99 95 102 210 100 99 95 102 196 101 100 95 102 196 101 99 95 105 181 101 99 95 110 181 101 99 96 124 187 101 99 99 124 187 101 99 98 106 175 187 188 188 231 234 227 227 228 228 228 228 228 213 1 The method by which Mr. C. E. Lesher, of the United States Fuel Administration,' reduced the spot prices, which are quoted previously in this chapter, to theoretical aveifege realization prices was as follows : An average realization per ton for each calendar year was obtained from the coal reports of the Geological Survey, by dividing tlie total dollars received f. o. b. mines by the total tons of each coal prodneed. This figure was an average for 12 months and if charted would be represented by a straight line, showing none of the monthly fluctuations which really tools: plade. These annual averages, moreover, were for calendar years, whereas the annual hreali in average realization more nearly correspond:^ to the coal year beginning with Apr. 1. These annual average figures of realization, there- fore, were arbitrarily moved forward 3 months, and the figures for the calendar year 1914 considered to apply to the 12-month period beginning Apr. 1, 1914, and ending GOVERNMENT CONTROL OVER PRICES. 171 The comparison is facilitated, by the reduction of the theoretical weighted realization prices to corresponding relative prices by adopt- ing the average realization prices for the prewar year (July 1. 1913, to June 30, 1914) as a base equal to 100. It is clear from this statistical picture that the actual reduction in bituminous-coal prices for the bulk of production, as affected by l->rice fixing, was much less than might be supposed on looking at any compilation of market quotations for spot transactions. Indeed, there was no greater reduction than 32 cents per net ton from May, well before regulation, to October, 1917, after control had begun, xind not again throughout the whole period of fuel control does this theoretical realization price fall as lov/ as the October price ($2.12). Instead, it begins a rise which reaches a record peak of $2.75 per ton in May, 1918, nearly a year after the spot prices had reached their peak. It would seem clear that the control of bitumi- nous coal scaled clown tremendously the enormous and unprece- dented rise which spot coal in the open market had attained during the six months prior to j)rice fixing. But it is open to question whether there were such perceptible scalings in the sales which repre- sented the bulk of bituminous transactions. The record height of these actual sales, for the country as a whole, came eight months after control had set in. Bituminous-coal prices, which were con- trolled in part to stimulate production, judging them as a whole and ignoring exceptions within particular districts,^ did not main- tain the lower level to which they yvqyq scaled by price fixing in the summer of 1917. They, whether measured by the spot prices or the realization prices, were brought down through price fi-xing to $2.12 per ton in September, 1917, but rose to $2.75 by May, 1918. Mar. 31, 1915. Quite without regard to quantity of coal produced in any month, the spot prices for each coal year were reduced or raised proportionately, so that their arithmetic mean would equal the average realization. It was arbitrarily assumed that the average realization was represented by the sale price of coal delivered on contract, that the modified spot prices represented the price on current sales, and that three- quarters of the coal was sold on contract and one-quarter at the spot market. A figure for each coal for each month was thus calculated, i. e., three-quarters average realization and one-quarter spot prices reduced to average realizatiois. For the period from September, 1917, to December, 1918, the prices flsed by the Government were considered spot prices and from April to December, 1918, the same prices were taken for the spot reduced to average realization, since the actual realization for 1918 was not yet available. It is believed that these figures record more accurately the true price status of the coal market than do the spot prices. They are, at any rate, based upon the actual annual average return per ton of coal. 1 A study of the stabilizing effects of coal regulation may be made within each bituminous district by use of materials already segregated iu " Prices of Coal and Coke," by C. E. Lesher. 172 HISTORY OF PRICES DURING THE AVAR. Price Fixing of Anthracite Coal at the Mine. It is to be reiiieniberecl that hard or anthracite coal, which is used in the main by householders, constitutes only 15 per cent of our total coal production, and was not regulated by the earlier Peabody-Lane agreements or by the coal-production committee. The Federal Trade Commission, on the other hand, undertook during the spring of 1917 anc.1 until the President fixed anthracite prices, to control the prices of anthracite coal by various voluntary agreements which were entered into with the anthracite producers.^ Anthracite prices, as a whole, were thus well under control by the summer of 1917, at the direction of Congress. These full data were presented to the President on August 22, and on August 23, 1917, he fixed the prices of anthracite coal for the country. ^ There follows a chronological review in brief, authorized by the Federal Trade Com- mission, of each important agreement looking to a regulation of anthracite coal prices, between the Federal Trade Commission and the anthracite producers up to the time of the President's prices (Aug. 23, 1917) : 1. See letter of commission dated Mar. 12, 1917, to 25 principal anthracite operators concerning rumored suspension of spring discounts (see Exhibit I, p. 371, S. Doc. No. 50, 65th Cong., 1st sess.). With this letter the commission inaugurated a policy of endeavor- ing to limit the price of anthracite to domestic consumers. 2. The May price on anthracite egg, stove, and chestnut sizes virtually was fixed for coal produced by railroad coal companies through publication of the commission's interim report to the Senate (see Schedule Exhibit II, p. 373, S. Doc. No. 50). This report fol- lowed conferences with the so-called railroad coal company operators early in May. To May prices add 10 cents per ton of 2,240 pounds each succeeding month, up to and includ- ing August, 1917, to ascertain approximate f. o. b. mine prices on the sizes mentioned, charged by the railroad coal companies. By adding another 10 cents, the price fixed by the President on these sizes, effective Sept. 1, 1917, Is obtained. Broken, pea, and buck- wheat sizes were not the subject of agreement, since they have a large industrial use, and the commission was concerned principally with the prices of sizes most in use by domestic consumers. 3. Later in May (about the 11th) a conference was held with individual operators to discuss their prices, since the individual output continued to go out at high prices (reach- ing as high as $8 and $8.50 per ton of 2,240 pounds f. o. b. mines in some instances). This conference is discussed in Commissioner Colver's testimony, par. 1, p. 264, Pt. I of the hearing before the Committee on Interstate Commerce. Jobbers' and retailers' rep- resentatives also were present at this conference. No fixed price was agreed on with indi- vidual operators at this conference, but high prices realized by individual operators were severely criticized by the commission. 4. The commission's letter of May 14, 1917, Exhibit IV, pp. 374, 375, Senate Document No. 50, and the form of weekly report printed on p. 376, that was required of individual operators for the last part of May, 1917, was the first intimation given them concerning what the commission considered the maximum permissible f. o. b. mine prices for their output of egg, stove, chestnut, and pea sizes, when sold for domestic consumption. This price (May) was 35 cents per gross ton above the railroad coal company prices already referred to on egg, stove, and chestnut (no price for pea was agreed on with the railroad coal companies). Subsequently it was found that it would be difficult or impossible to hold all individual operators to these prices, and the June reports for individual operators (printed on p. S77, S. Doc. No, 50) provided for a maximum differential of 75 cents per gross ton over the railroad coal company prices. Ten cents per ton of 2,240 pounds was added for each month up to and including August, 1917. In this connection it should be noted that all individual operators did not avail themselves of the full differential. For in- stance, the Kingston Coal Co., the largest individual operator, with a total yearly ton- nage (all sizes) of 1,200,000 tons, at no time took more than 35 cents. It was agreed with representatives of the individual operators that this differential should not at that time be made applicable to egg and pea coal sold for industrial use, provided that the GOVERIiFM-EIsrT CON^TKOL OVER PRICES. 173 Prices fixed hy the President^ August 23^ 1917. — The President's maximum prices for anthracite coal, announced like those for bi- tuminous coal before he had appointed his Fuel Administrator, ^ were to be effective September 1. They vere virtually the same as the prices then charged at the mines under the voluntary agreement made by the producers with the Federal Trade Commission, if indeed not slightly higher.^ The one exception to this rule was pea coal, which was increased above the market upon recommendation of the Federal Trade Commission, but which was subsequently reduced by 60 cents normal percentage of the total output of each operator sold for these purposes were Dot exceeded, and that no attempt should then be made to limit the price on broken and tucliwheat sizes, generally used in the industries. For the purposes of observing the proportion of controlled and uncontrolled sizes produced by individual operators, monthly reports were required ; and these were checked with the percentages of the different sizes that were normally produced (see Forms 3 and 3A, reproduced on p. 379, S. Doc. No. 50). It should be remarked that some independent operators voluntarily abrogated contracts made at higher prices than those suggested as the limitation maximum, and shipped the coal so contracted for at the lower prices suggested as permissible maxima by the com- mission. The commission's views respecting limitation maximum f. o. b. mine prices were rein- forced by agents in the anthracite fields who frequently called upon operators for inspec- tion of their sales records, consultations, etc. 5. Several jobbers attended the conference of May 11 by invitation, and while no agreement was then made respecting a limitation jobbers' margin on anthracite coal, the commission's viev/s ■ respecting exorbitant ma.rgins, and on interbuying among jobbers with the consequent multiplication of jobbers' margins, were made known to them. About the middle of May or shortly afterwards, the commission began to express in- formally to leading jobbers its view that 20 cents per ton of 2,240 pounds should be the maximum jobbers' margin on anthracite shipped to Buifalo, or points east of Buffalo, that 25 or SO' cents should be the maximum on shipments west of Buffalo, and that the combined margins of any number of jobbei's handling a given shipment should not exceed these maxima. A system of weekly reports from jobbers also was inaugurated in May. (See letter of commission to jobbers and report required, reproduced as Exhibit VIII, pp. 382, 383, 384, S. Doc. No. 50.) The commission's views respecting limitation jobbers' margins on anthracite were com- municated to all anthracite jobbers in its letter of June 9. (See Exhibit IX, p. 385, S. Doc. No. 50.) Field agents of the commission reinforced the commission's views as to jobbers' margins by frequent insiDection of jobbers' records, interviews, etc. 6. At the conference of May 11 several representatives of retailers' associations were present by invitation. They were given an opportunity to hear the commission's views on excessive prices, but no agreement was attempted respecting retailers' margins. Subsequently the commission sent to retailers in many different cities letters and forms similar to those shown in Exhibit X, pp. 385, 386, 387, 388 of Senate Document No. 50. From these forms comparative statements of tonnage received in given cities or towns during stated periods were compiled, the gross margins of retailers in those towns or cities were computed, and the results given publication through the local press. The com- mission counted on such publicity to restrain retail dealers' margins to a certain extent. End while no names were published, except in Washington and Indianapolis, these press statements no doubt had some effect in restricting retail margins and prices during the summer and fall of 1917. 7. The commission's activities in the matter of anthracite pea control were placed fully before the President on Aug. 22, before the anthracite prices effective Sept. 1, 1917, were fixed by him. ^ Mr. Harry A. Garfield, president of Williams College and chairman of the wheat price- fixing committee of the Pood Administration, was appointed the same day (Aug. 23, 1917). ^ Mr. David L. Wing of the Federal Trade Commission, in his testimony at the coal hearings referred to previously, declared that the President's prices were found by adding 10 cents. (Pee Exhibit No. 272, p. 014 of printed hearings, pursuant to S. Res. 163, 65th Cong. 2d sess.) 174 HISTORY OF PRICES DURING THE WAR. ]")Ci' gross ton by the Fuel Administration on October 1, 1917. The new anthracite prices, fixed for broken, egg, stove, chestnut, and pea coal under each of the three grades, white ash, red ash, and Lykens Valley, varied from $1 to $1.50 per ton of 2,210 pounds f. o. b. cars at the mine. The President, curiously, made the new prices applicable specifically to 16 leading Pennsylvania anthracite pro- ducers whom he named in the price-fixing announcement. It was then provided that anthracite producers, other than the 16 named, should not sell anthracite coal at prices to exceed by more than 75 cents per ton the schedule established for the larger producers.^ The anthracite schedule of fixed prices showed important and interesting variations in practice from the earlier bituminuous schedule. Modifications made hy the Fuel Administrator. — The Fuel Admin- istrator made more modifications of a general character in the Presi- dent's anthracite prices than in his bituminous prices. The whole schedule of anthracite prices, as fixed by the President August 23, was increased by Executive order to be effective December 1, 1917, to allow an addition of 35 cents per gross ton for each fixed price. That modification was made to provide for wage increases author- ized by the President. The usual summer reductions in the prices of ^ There follows so much of the President's order of Aug. 23, 1917, as pertains to the fixing of anthracite coal prices at the mine : 4. Effective Sept. 1, 1917, the maximum prices per ton of 2,240 pounds free on bora-d cars at the mines for the grades and sizes of anthracite coal hereinafter specified shall not exceed the prices indicated in par. 5 when such coal is produced and sold hy the Phila- delphia & Reading Coal & Iron Co., Lehigh Coal & Navigation Co., Lehigh & Wilkes- Barre Coal Co., Hudson Coal Co., Delaware & Hudson Co., Scranton Coal Co., Lehigh Val- ley Coal Co., Coxe Bros. & Co., Pennsylvania Coal Co., HiUside Coal & Iron Co., Delaware, Lackawanna & Western Railroad Co., Delaware, Lackawanna & Western Coal Co., Susque- hanna Coal Co., Susquehanna Collieries Co., Lytle Coal Co., or the M. A. Hanna Coal Co. 5. The grades and sizes for which the maximum prices are specified are as follows : White ash anthracite coal of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was uniformly sold and recognized in the coal trade as coal of white-ash grade; red-ash anthracite coal of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was imiformly sold and recognized in the trade as coal of red-ash grade ; and Lykens Valley anthracite coal that is mined exclusively from the Lykens Valley seams and of the grade that between Jan. 1, 1915, and Jan. 1, 1917, was uniformly sold and recognized In the coal trade as coal of Lykens Valley grade. White-ash grade : Broken $4. ,55 Egg 4.45 Stove 4.70 Chestnut 4.80 Pea 4. PO Red-ash grade : Broken $4. 75 Egg 4.65 Stove 4.90 Chestnut 4. 90 Pea 4.10 Lykens Valley grade : Broken .$5. 00 Egg -. 4.90 Stove 5.30 Chestnut 5. 30 Pea 4. 35 6. Producers of anthracite coal who are not specified in par. 4 shall not sell the various grades and sizes of anthracite coal at prices that exceed by more than 75 cents per ton of 2,240 pounds free on hoard cars at the mines the prices enumerated in par. 5 ; provided that any producer of anthracite coal who incurs the expense of resereening it at Atlantic or Lake ports for transshipment by water may increase the price thereof by not more than 5 cents per ton of 2,240 pounds. 7. Producers of anthracite coal specified in par. 4 of these regulations shall not sell anthracite coal to producers of anthracite coal not specified in par. 4. 8. Dealers and selling agents shall not sell coal produced by the producers included in par. 4 on the basis of the prices fixed at the mine for coal produced by producers not specified in said paragraph. GOVEENMEIJTT CONTEOI. OVEE PKICES. 175 domestic sizes were offered to tlie trade by the producers in 1918, althougli not required by the Fuel Administrator. Still a further and much, greater increase, $1.05 per gross ton, was allowed to the prevailing maximum prices for Pennsylvania anthracite coal by the Fuel Administrator after JSTovember 1, 1918. This modification, too, was made to provide for increased costs of production and for wage increases.^ Two weeks later (November 15) a maximum price for steam sizes of anthracite coal was fixed for the first time by the President,^ A compaHson of prewar and -fixed prices. — The stabilizing effects of coal regulation upon the prices of anthracite can be more easily measured than those of bituminous coal. Tliere are, however, certain very marked seasonal fluctuations in the prices of anthracite which must be held firmly in mind while attempting any measure. The anthracite producers, in order to make for uniform operations at the mines during the slack j)art of each year, liave for years offered a reduction of 60 cents a gross ton each April for all purchases of domestic sizes, followed by a reduction of 40 cents in May and a 30 cents reduction in June, 20 cents in July, and so on until Septem- ber, when the normal lorice would be again reached. These, summer reductions have become so much a factor in the general level of an- thracite coal XDrices that they constitute the primary fluctuation dur- ing the year. Prices of anthracite coal ordinarily remain fairly level until April, fall several per cent, and come gradually back to normal, reaching their level again in September. But these important sea- sonal fluctuations of anthraeiate coal are concealed by the much larger and more irregular fluctuations since the latter part of 1916, The only available method by which to judge the stabilizing effects of price fixing upon the prices of anthracite coal, as was the case with bituminous coal, is to compare the prices before and after con- trol. It can not, of course, be concluded hastily from that compari- sion whether coal regulation was or was not effective, since there was presented to it the pr-oblem not only of stabilizing prices, but of stimulating production. The theoretical realization prices for all anthracite coal in the United States, in contrast to those prices 1 The engineers committee of the Fuel Administration, through Mr. R. V. Norris, makes the following summary and observations relative to labor increases which entered into the prices of anthracite coal : Effective Dec. 1, 1917, a labor war bonus, ranging from 60 cents to $1.10 per day for labor and 25 per cent for contract miners was granted over and above the wage scales effective by agreement Apr. 1, 1916, expiring Apr. 1, 1920, and the prices fixed Aug. 2.3, 1917, and modified Oct. 1, 1917, by reducing pea coal 60 cents per ton, were increased by 35 cents per ton to compensate for this labor increase. The actual reported increase in labor cost due to this advance was figured by the Federal Trade Commission from the operators' reports to be 60.3 cents. From the actual pay-roll figures later obtained by the U. S. Fuel Administration, this increase was found to be 76.3 cents per ton. ' The maximum price thus established was 50 cents a ton less tha^i that fixed for pea coal. 176 HISTORY OF PRICES DURIISTG THE WAR. for bituminous coal, show a rise very similar to the spot prices. There are printed here, therefore, only the relative prices, taking the prewar year (July 1, 1913, to June 30, 1914) as a base equal to 100, for the series of realization prices,^ because of the marked similarity between them and the less adequate spot prices. WEIGHTED REALIZATION PRICES OF ALL ANTHRACITE COAL IN THE UNITED STATES. ACTUAL PRJCES PEP. GIlO:;:5 TOST. Montli. 1913 1914 1915 1916 1917 S2.69 $2.06 ?.2.58 $2.60 .$3.08 2.64 2.65 2.57 2.59 3.09 2.63 2.65 2.56 2.58 2.97 2.60 2.44 2.44 2.70 3.08 2.52 2.47 2.46 2.66 3.45 2.56 2.49 2.48 2.67 3.36 2.57 2.52 2.49 2.71 3.37 2.61 2.55 2.52 2.75 3.39 2.65 2.58 2.57 2.79 3.47 2.65 2.58 2.58 2.84 3.47 2.65 2.58 2.58 3.09 3.50 2.65 2.58 2.59 2.99 3.63 2.60 2. 56 2.54 2.74 3.32 1918 January February. . March April May June July August September . October November. December. . Year . ?3. 63 3.60 3.63 4.31 4.31 4.34 4.30 4.33 4.54 4.54 5.30 5.30 4.35 P.ELATIVE PKICE.'^ Month. 1913 1914 1915 1916 1917 1918 January 104 102 101 99 97 99 99 101 102 102 102 102 103 102 102 94 95 96 97 98 99 99 99 99 99 99 99 94 95 96 96 97 99 99 99 100 100 100 99 104 103 103 104 106 108 109 119 115 119 119 114 119 132 129 130 131 134 134 135 140 140 February 139 March. , ■. . . . 140 April 166 May 166 June 167 July . . 166 August 167 September 175 October 175 November 204 December 204 Year 101 99 97 100 128 1G7 The weighted average realization prices for all anthracite coal sold in the United States, made by abstracting some 5,000 quota- tions and reducing them to a basis at which, it is estimated, the bulk of sales were made, shows an exceedingly steady market during 1913, 1914, and 1915. Anthracite coal in the latter part of 1916, however, began a rise which continued steadily in the main until the end of 1918. The general price held steady for a brief space only at $3.47 per ton, following the President's first announcement, and then rose in the latter part of 1917 by reason of the increase of 35 cents per ton that was allowed, effective December 1. The price rose from $3.63 per ton in December, 1917, and January, 1918, steadily, except for slight reductions during the summer, to the latter part of 1918, when 1 These realization prices were made by C. E. Lesher in lilte manner to the realizat:on prices previously printed for bituminous coal. A study of the spot or market prices for anthracite coal may le made from Mr. Lesher's pamphlet. GOVERNMENT CONTROL, OVER PRICES. 177 unother increase of $1.05 was allowed. The price realized for an- thracite coal throughout the country as a whole, thus advanced rather steadily under Government regulation, from the time control set in until after the signing of the armistice. It made during that time a gain from $3.47 per ton in September, 1917, to $5.30 in Novem- ber, 1918. Control Ovee thk Prices of Coal Middlemen. Joh'bers' margins. — It must have been obvious to the President at the outset that, while the fixing of fair prices for coal at the mine would stimulate production, it would not insure against extortionate profits to middlemen. He, in his first announcement of bituminous prices, gave promise soon of a fair and equitable control of prices for sales by middlemen and retailers. The President's order of August 23, fixing prices of bituminous coal at the mine, left middle- men and retailers a free hand to charge consumers what they would. But on August 23, 1917, in the same order by which he also fixed anthracite coal prices, the President set certain jobber margins. Bituminous coal jobbers, by that order, were not allowed to add to their purchase price a gross margin above the fixed price in excess of 15 cents per ton of 2,000 pounds, nor were the combined gross margins of a number of jobbers allowed to exceed that amount. An- thracite coal jobbers were not allowed a gross margin above the fixed price in excess of 20 cents per ton of 2,240 pounds when delivery was at or east of Buffalo, or in excess of 30 cents for delivery west of Buffalo.! The modifications of these original margins made by the Fuel Administration were of less importance than its changes in prices fixed by the President.- iThe section!? of the President's order of Aug. 23, 1917, which relate to bituminous and anthracite jobber margins follow : 1. A coal jobber is defined as a person (or other agency) who purchases and resells coal to coal dealers or to consumers without physically handling it on, over, or through his own vehicle, dock, trestle, or yard. 2. For the buying and selling of bituminous coal a jobber shall not add to his pur- chase price a gross margin in excess of 15 cents per ton of 2,000' pounds, nor shall the combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of bituminous coal exceed 15 cents per ton of 2,000 pounds. 3. For buying and selling anthracite coal a jobber shall not add to his purchase price a gross margin in excess of 20 cents per ton of 2,240 pounds when delivery of such coal is to he effected at or east of Buffalo. For buying or selling anthracite coal for delivery west of Buffalo a jobber shall not add to his purchase price a gross margin in excess of 30 cents per ton of 2,240 pounds. The combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of anthracite coal for delivery at or east of Buffalo shall not exceed 20 cents per ton of 2,240 pounds, nor shall combined margins exceed 30 cents per ton of 2,240 pounds for the delivery of anthra- cite coal west of Buffalo. Provided that a jobber's gross margin realized on a given shipment or shipments of anthracite coal may be increased by not more than 5 cents per ton of 2,240 pounds when the jobber Incurs the expense of rescreening it at Atlantic or Lake ports for transshipment by water. 2 For a full compilation of all subsequent orders relating to jobbers' margins, one should consult " General Orders, Regulations, and Rulings " of the Fuel Administration, Chapter III, Title IX; Chapter II, Title IV; Chapter III, Title VII ; and notes under each. 125.j47°— 2(y 12 178 HISTORY OF PRICES DURING THE WAR. Distributors' tiuogln^. — It became necessary in the spring of 1918 to bring certain distributors under license control in order to admin- . ister regulation more effectively. A presidential proclamation,^ ac- cordingly, was issued requiring all distributors of coal or coke as jobber, broker, selling agent, or " in any capacity whatever," to se- cure a license on or before April 1, 1918,^ from the Fuel Administra- tor and under such conditions as might be prescribed by him. Mr. Garfield then issued an order with the approval of the Presi- dent, prescribing that licensees who sell coal or coke w^ithout phy- sically handling it should not ask more than the prevailing fixed price plus 5 cents per ton of -2 ,240; and licensees who act as purchas- ing agents without becoming the owner might charge a purchasing commission not in excess of 15 cents per ton of 2,000 pounds of bitu- minous coal, or 20 cents per ton of 2,240 pounds of anthracite coal for delivery at or east of Buffalo and 30 cents for delivery west.^ Control Over Coal at Retail. One of the most difficult tasks of the war-time control over fuel was the regulation of the retail prices of coal. The Fuel Adminis- trator, realizing the x^rinie necessity of assuring stable i^rices to the small purchasers and consumers, set forth a scheme for the control of retail coal prices as early as October 1, 1917. The administration of the plan involved, of course, the assistance of the State and local committees, of whom there were legion.* No retail dealer under the j)lan was allowed to charge consumers a retail gross margin of coal or coke in excess of the average gross margin, above his average cost, added by the same dealer during 1915, plus 30 per cent of the 1915 margin.^ A measure of the movement of retail prices, before and after regu- lation, is given in the table below. This table shows average and relative retail prices, as compiled by the Bureau of Labor Statistics, for Pennsylvania white-ash coal, both stove and chestnut sizes, and bituminous coal for the United States on January 15 of each year, 1913 to 1919, inclusive. An average price for the year 1913 has been made from the averages for January and July of that year. This 1 Tlais proclamation, Lssued under authoritj- of the food and fuel act, was made Mar. 15, 1918. 2 An exception was made to those specifically exempted hy tlie food and fuel act, producers and miners of coal and manufacturers of coke, distrihutins: exclusively their own product, and retail dealers, as defined in the Fuel Administrator's order of Oct. 1, 1917. * A full listing of all orders relating to Ucensed distributors may be found in Fuel Administration "General Orders, Regulations and Rulings," Chap III, Title IX, sec. 2. * See fuel orders referred to above, Chap. II, Title VI, for full retail price regula- tions. 8 Provided that the retail gross maigin added by any retail dealer sliould iu no case exceed the average added by such dealer for the same size and grade during July, 1917. GOVEElSrMEjSrT COi^^TROL, OYEE PRICES. 179 awrag-e price for tlie year 1913 lias been divided into the average price for January of each subsequent year to obtain tlie relative prices. Since January, 1913, Pennsylvania white-ash stove coal has ad- vanced 44 per cent, chestnut 42 per cent, and bituminous coal 44 per cent. The first big jump in the price of all kinds of coal came in the year from January 15, 191T, to January 15, 1918, Another interest- ing fact is that in the last year, from January 15, 1918, to January 15, 1919, stove coal increased 17 per cent, chestnut 16 per cent, while bituminous coal increased only 3 per cent. WBRAGE AND RELATIVE RETAIL PRICES OP COAL IN TON LOTS, FOR HOUSE- HOLD USE, JAN. 15 OF EACH YEAR, 1913 TO 1919, INCLUSIVE. [Average price for year 1913=100.] Pennsylvania anthracite, white ash. Eitun Period. Stove. Chestnut. Average price. Relative price. Average price. Relative price. Average price. Relative price. 37.73 7.99 7.80 7.83 7.93 9.29 9.88 11.52 100 103 101 101 103 120 128 149 $7.91 8.15 8.00 7.99 8.13 9.40 10.03 1L61 100 103 ■ 101 101 103 119 127 147 $5.41 5.48 5.97 5.71 5.69 6.96 7.68 7.90 100 Jan. 15, 19131 101 Jan. 15, 191-J 110 Jan. 15, igi-^i 106 Jan. 15, 1916 103 Jan. 15, 1917 129 Jan. 15, 1918 142 Jen. 15. 1919 146 Special Prices, Premiums, and Chaeges. In addition to the prices fixed at the mine, margins for middlemen and retailers, various special prices, premiums, and charges deter- mined by the Fuel Administration were also established.^ These in the main pertained to smithing coal, cannel coal, export and bunker coal, coal at Lake Michigan and Lake Superior docks, and coal from wagon mines, prices of specially prepared coal and coal iiot properly picked or cleaned, and miscellaneous orders affecting the delivered price of coal. Costs Made the Basis of Price Fixing. The coal prices fixed by the Fuel Administration were based upon scientific analyses of costs conducted by a special committee. Neither the price-fixing committee nor the Food Administration to any extent availed themselves of a detached scientific committee whose business it was to analyze for them and interpret the cost sheets prepared by the Federal Trade Commission. The Fuel Adminis- i See fuel order.s referred to above, Cliap. II, Title IV, sees. 1, 2, 8, 4, 5, 6, and 7, 180 HISTOKY OF PRICES DURING THE WAR. tration, indeed, during 1917 and until early in January, 1918, took the President's tentative prices as tlie basis for all revisions and adjustments without serious inquiry into their justice.^ But early in 1918 the Fuel Administrator appointed his notable committee of engineers to make a painstaking and general review of all coal- production costs in the United States and to recommend to him scientific verification or revision of each price tentatively fixed.^ The Fuel Administration thus, more than any other of the larger price-control agencies, made intensive and highly specialized studies of production costs. It, unlike either the price-fixing committee or the Food Administration, was concerned primarily with the price fixing of but a single commodity — coal — and could make close analyses of costs for various parts of the country. The elaborate confidential cost tables worked out by the engineers' committee for Mr. Garfield, though happily as often useful to verify as to revise former prices, gave very comprehensive bases for the fixing of bituminous and anthracite coal prices. The engineers' committee at the outset determined upon a method for arriving at a fair price for coal. It considered the (a) straight cost-plus method — the actual cost at each colliery plus a fixed sum or percentage of profit; (h) modified cost-plus method — the actual cost at each colliery plus a graduated profit decreasing as costs increase; (c) average cost methods — prices fixed on the average cost in each district ; and, (d) pooling methods — all coal sold at the average cost of each district plus a profit, and the returns to each colliery adjusted through a clearing house at a price proportioned to its cost of production.^ ^ These prices, though perhaps made upon a belter body of fact than were a majority of prices fixed, were based on average figures of approximately 100,000,000 tons' produc- tion, prepared by the Federal Trade Commission. They were relatively meager data, com- prising generally costs from the larger and lower-cost operators of each district. 2 In January, 1918, Mr. Garfield appointed three mining engineers, Mr. Cyrus Garnsey, jr., Mr. R. V. Norris, and Mr. J. H. Allport, to constitute the engineers' committee of the Fuel Administration. They were men of scientific training and considerable practical experience. The committee was not authorized itself to fix prices of coal, but to study and report upon methods of price fixing and to present the Fuel Administrator with compre- hensive cost data. * Mr. Cyrus Garnsey, jr., Mr. R. V. Norris, and Mr. J. H. Allport, in Publication No. 29, of the Fuel Administration, issued September 20, 1918, outline the following ad- vantages and disadvantages of each of these methods : 1. Straight cost-plus method — Advantages. — (a) All producers would receive the same profit, and no one would have an advantage over another in this respect, (b) Apparently simple in plan and execution. Disadvantages. — Impracticable of application, by reason of: (a) Resultant multiplicity of prices, with grave disturbance of markets. (7j) Continual changing of prices due to inevitable variations in each producer's costs, (c) Instability of the industry, due to the natural disposition of consumers to purchase the lowest-price coal, (d) Inefiiciency in operation always resulting from lack of incentive in cost-plus operations, (e) Mate- rial reduction in output and reduction in quality, due to the natural tendency to mine the poorer and more expensive coal with a guaranteed profit, and to leave the better and cheaper coal in reserve to be mined on the return of normal conditions. (f) Con- tinual increase in all costs incident to extravagant methods encouraged by guaranteed GOVERNMENT CONTROL OVER PRICES. 181 It seemed to the engineers' committee that they must find a system of price fixing which would meet especiallj^ these requirements : 1. A price fair to the public. 2. Prevent excessive prices or profiteering. 3. Prevent a multiplicity of prices in any district. 4. Encourage legitimate production. 5. Discourage production from inefficient and unduly costly opera- tions. profits. (g) Labor unrest and constant demands for increases due to the knowledge of a guaranteed profit regardless of cost. (h) Practical impossibility of arriving witli technical accuracy at the costs of each separate operation, (i) Impracticability of the Government's policing the mines and securing the same efficient operation and pro- duction attained by the individual producer under the stimulus of increased profits. (/) niogical, in that the better planned and managed operations are discouraged, as compared with poor and inefficiently managed properties. 2. Modified cost-plus method. — This is but a modification of the preceding, and the same discussion applies, modified only by the inclusion of a somewhat greater incentive to the better and more economical operations. 3. Average cost methods — Advantages. — A minimum uniform price for each district ,or, if desired, for the entire country. Disadvantages. — (a) The average cost is necessarily less than the cost of about half the total tonnage. Hence, a reasonable profit put on the average cost would not produce the necessary tonnage. (6) The tonnage below and up to the average cost is actually produced by less than 30 per cent of the operators of the country. Hence, the great majority of the operators producing at above average cost would be put out of business by a price based on the average. -}. Pooling methods. — Pooling may be done on either cost-plus, modified cost-plus, or on the Iprices established by the United States Fuel Administration. Advantages. — (a) A uniform price to consumers for sections and, if desired, for the entire country. (&) A present lower price to consumers based on weighted average cost, (c) A simplification of all present pooling arrangements, as all coal to each pool would have, or could be ar- ranged to have, the same price. (c7) A return to the consideration of quality instead of cost, as, with all coal at the same price to consumers, the higher qualities would naturally be preferred. Disadvantages of pooling cost-plus or modified cost-plus methods. — (a) Continual variation in pool prices, due to inevitable variations in producers' costs. (6) Unfair and illogical, in that the better located and managed operations are made to pay tribute to the poor and badly managed ones, (c) A general and considerable increase in cost inevitably resulting from any method involving guaranteed profits with a disregard of economy, (d) A material reduction in output, due to lack of incentive and resulting inefficient methods, the employment of unnecessary labor, the mining of the more ex- pensive and less desirable qualities of coal for the ultimate benefit of the mines, and the execution of development not immediately needed, (e) A slackening of the efforts of em- ployees, which is the usual result of a lack of incentive to the producer, with the I'e- sulting lack of interest. if) The installation of an unsound policy tending to encourage the inefficient and discourage the efficient producer, (g) The ever-present temptation to allow costs to increase with the hope of readjustment of prices. (70 Dissatisfaction to both labor and to producers from the knowledge that other and less efficient operations have higher limits of price. The disadvantage of pooling on the prices fixed by the United States Fuel Administration are the same as suggested above, without some of the special disadvantages of cost-plus methods. Disadvantage of pooling in general. — (a) A. very large capital required tO' handle such stupendous operations. (6) Enormous and extended credits required to finance the producers, (c) Lack of organization to handle this new business. (d) Undesirability of creating an organization with its army of additional employees at the present time, (e) Inadvisability of putting a new and untried plan into operation at the present time. (/) Impossibility of obtaining, with sufficient promptness, the costs necessary to fix pooling prices with the necessary ac- curacy, ig) Interference with present established methods of handling coal, with serious risk of crippling its distribution and unnecessarily creating a shortage. None of these suggested methods seemed to fill the peculiar conditions incident to price-fixing of coal at the mines, and it devolved upon the engineers' committee to de- velop some method better suited to the conditions of the prohlem. 182 HISTORY OF PRICES DUEIXG THE WAR. 6. Insure to the producer " the cost of production,, including the expense of operation, maintenance, depreciation, and depletion, with a just and reasonable profit," as required by the Lever Act. The committee determined finall}^ that it could best attain these ends b}^ finding the bulk line of production, and allowing the Fuel Administrator personally to add whatever margin in his judgment each district required. Costs, accordingly^, were obtained from the Federal Trade Commission as filed b}' each operator in the country, and were studied by the committee, listed and adjusted^ for price fixing. These data, together with the percentages of each cost in the total production of each district, were plotted to show graphically the range and extent of variation in each district. Then, upon these diagrams, was drawn the bulk line, showing the indispensable ton- nage required from that district.^ When the committee set about its inquiry early in 1918, it had costs for the production of coal in the United States during August and September, 1917. These data, together with later reports, were generally used as a basis of costs.^ Bitunidnous costs, — The committee, confronted with a eonfusing mass of cost figures representing 95 per cent of the bituminous pro- duction of the country, evolved a scheme of unique graphic pre- sentation which made comparisons simple. It made for each coal '■ Many, especially of the small operators, were inexperienced in bookkeeping, and sub- mitted cost sheets, which, while accurate in totals, were grievously mixed in detail?. The most common of the cost adjustments which were made pertained to supplies, re- serves, salaries, special charges, outside profits, and fuel charges for colliery power. These adjustments of the Federal Trade Commission cost figures were made simply to put all costs on the same basis. 2 Since the " bulk line " of production, adopted by the Fuel Administration, came so prominently into the consideration also of the price-fixing committee, it is of especial interest to note the following frank outline of its merits and demerits by the engineers' committee, who recommended it to the Fuel Administration. Advantages of the " hulk line " Si/stem. — -The method of fixing prices by the "bulk line" principle recognizes the economic syllogism that " the price of any article necessary to a community will be fixed by the cost of producing that necessary portion of such article involTing the greatest expense." (a) This assures to all producers profits dependent upon their ability and exertions, only limited by tiie establishment of a reasonable price to the consumer, (h) It does not unduly increase the price of coal to the con.sumer over the minimum price possible under other methods. (c) It tends to encourage maximum production and necessary development by allowing to the producer the benefit of reduced costs due to greater production. (d) It avoids bad feeling among the producers and among the workmen by allowing a fixed price in each district and not apparently show- ing favoritism to special producers, (e) It tends to encourage the fit and discourage the unfit. (/) The method is susceptible of refinement and extension, making it possible to eliminate undue profits to the producer and adjust prices from time to time to the ultimate advantage of the consumer. Disadvantage of the "hulk line" system. — (a) Considerable profits to the lowest-cost operators. (T)) A price for coal greater than one based on the average cost, by the amount by which the " bulk line " exceeds such average. This method appeared to be better suited to the conditions than any of the others suggested, and after a careful study by the United States Fuel Administrator it was adopted. " It is of interest that the committee later found, M'hen cost data for extended periods were had, that the two months mentioned above were fairly representative, as to cost, of the average year. GOVERNMENT CONTROL OVER PRICES. 183 \ district in tlie country, of which there, were 99, a graph showing horizontally from left to right various percentages of production from to 100. That same graph, when read vertically from the lower left corner, showed various unit costs of production per ton from to the highest cost found. There were then drawn upon each chart the total costs for the district, as reported and also as adjusted, beginning at the lowest cost and the tonnage which could . be produced at that unit cost. The two cost lines thence (i. e., the reported and adjusted cost lines) were made gradually to rise from this lowest to the very highest cost in the district, showing con- stantly the increased i)roduction that could be had with each in- crease in cost. The bulk line, between these two extremes, repre- sented the percentage of production required and marked, there- fore, the basis for fixing a price. The bulk line usually was fixed at a point to assure the production at a minimum of profit, of 90 per cent of the total capacity, thus cutting off the upper crust of high-cost producers.^ The bulk line of the chart, after adding whatever margin was determined upon by the Fuel Administrator, gave the necessary realization for run-of-mine coal, in that district. Spreads were, however, frequently added to this price to make pos- sible screening and special prices for prepared sizes. A study of the average costs, bulk line, and prices fixed for 84 per cent of the bituminous coal production in the United States during August and September, 1917, gives interesting generaliza- tions.^ The weighted average margin between costs and the prices fixed for substantially the entire bituminous production of the coun- try was 15.6 cents. It is of equal interest that the weighted average margin between the bulk line, which represents the highest price necessary to produce any part of the necessary coal, and the prices fixed by the Fuel Administrator was 26 cents.^ 1 These include : Mines wliich have failed under normal competitive conditions and have heen reopened under the stimulus of the high prices preceding Government control ; mines abandoned as exhausted and reopened for the few remaining pillars ; new enter- prises in the development stage ; mines opened on beds so thin or of such poor quality that they could not operate under normal conditions ; small mines on outcrop coal, often of poor quality, which have neither capital nor equipment for economical working ; mines which have encountered faults or in which the coal has thinned or split, or the quality has so deteriorated as to prevent working at a reasonable cost ; and, not the least of this group, mines so badly managed as to show unwarrantable costs of operation. All these classes of mines are unjustifiable under war conditions. They use labor inefficiently. Often their records show less than half the tonnage per employee usually obtained in their disti'ict, and their elimination is an economical advantage to a district in releasing labor to more efficient mines. In this high-cost group- occasionally are found mines which have a coal of unusually high quality or fitted for special use, for which a market at prices above those of the district has always existed. Such mines, on proving their special conditions, may re- ceive consideration, for special prices sufficient to allow a fair proflt on their higher costs. 2 See bituminous chart in section on " The determination of a fixed price." 5 The engineers' committee add that : The average cost of the 84 per cent of the total coal represented for the two months of August and September, 1917, was reported to be $1,696. The adjustments heretofore HISTORY OF PRICES DURING THE WAR. Anthracite costs. — The inquiry into the costs of mining anthracite coal, Avhich followed that for bituminous, covered costs for the vari- ous sizes of white-ash anthracite, red ash, and Lykens Valley coals for the six months' period, December, 1917, to May, 1918, inclusive. The anthracite field covers a smaller district, is indeed itself a single district, and gave relatively few problems in the adjustment of re- ported costs to a price-fixing basis.^ But the spread in anthracite prices of the varying sizes, which for the chosen period ranged from $5,244 for nut to $2,074 for barley coal, made vital the question of the percentage of sizes produced at the different collieries. The percentage of prepared coal reported from different collieries, more- over, varied from over 80 per cent to below 30 per cent for fresh- mined coal, and the spread in prices for the various sizes had to be predicated upon some percentage to allow for variations.^ described raised this reported cost to $1,706, a very strong indorsement of the honesty of the reports made by the operators. The average " bulk line " was fixed at $1,902, or 19.6 cents above the average adjusted cost. This represents the margin required to assure the mining of the necessary coal, as compared with the average cost, which, of course, involves the mining of only coal up to or below the average .cost ; in other words, half the available output. The weighted average of all prices fixed is $2,162 per ton and the average margin above the " bulk line *' is 26 cents, representing all the above mentioned charges and all profit for the higher cost necessary mines ; the margin above the average weighted cost for the whole country is 45.6 cents per ton, which, compared with profits in other busi- nesses, certainly does not show any signs of profiteering in the coal business as a whole. The prices fixed are also sufficient, on the basis of the reported costs, to permit the mining of 98.4 per cent of all available coal, without loss. ^ Mr. R. V. Norris, a member of the engineers' committee of the B"'uel Administration and also of the price-fixing committee, has prepared an interesting paper on " Anthracite mining costs," which was printed in Bulletin No. 146, by the A. I. M. S., in February, 1919," by the Fuel Administration. 2 Mr. Norris explains the method of making these adjustments as follows: The logical method of adjustment is to calculate actual costs to costs as of the stand- ard percentage of sizes, so that the margin between the adjusted costs and the average realization shall be the actual margin for each colliery between its actual costs and actual realization due to its particular percentage of sizes. As a basis for realization the actual percentage of sizes for fresh-mined coal for the 6-month period was adopted. This percentage is given below. Mesh, in inches. Percentage of sizes. Size of coal. Through, round. Over, round. Fresh mined. Washery. Fresh mined and washery. Broken 2^21 li-l| 1 A- A 3f -3i 2T^2i M -If 6.S 14.6 19.6 24.7 9.1 11.6 3.2 4.9 3.9 1.6 0.4 1.2 2.3 10.1 10.0 21.4 14.9 27.5 8.8 3.4 6.2 Eg? 1.3.5 Stove. . 18.2 Nut 23.5 Pea 9.2 12.4 4.2 6.8 Boiler 4.3 1.7 For adjustment as a base for fixing a spread of prices the percentages used were, taken at even figures, prepared, 65 per cent; pea, 9 p'er cent; buckwheat, 12 per cent; and smaller, 14 per cent. The adjustment finally arrived at after long study was tested on actual reports from collieries having percentages that varied from over 80 per cent to under 30 per cent pre- GOVERlsrMElSrT CONTROL OVER PRICES. 185 The eno-ineers' committee, wlien it came finally to overhaul the earlier prices that had been fixed for the three important grades of anthracite coal, made charts to show the reported and adjusted costs for white ash, red ash, and Lykens Valley coal.^ They found, after pared coal and was found to be correct within a maximum variation of less than Ih per cent. It was as follows : As examples of the working of this adjustment with prices assumed at about the average for the 6 months and taking mines well away from average percentage of sizes. Size. ! Base per Base cent price, sizes. Realiza- tion. Mine A per cent sizes. Correc- tion percent. Actual ^i^«/: Correc- realiza-- *". j tion tion. sizes. il*^-'=«^^t- i — . Reali- zation. 05 S5. 10 9 3.70 12 3. 20 14 2.20 S5.315 .333 .384 .308 73.1 6.4 10.4 10.1 -9.72 +2.21 +1.20 +1.95 .S3. 730 .237 .333 .222 55.1 15.3 13.7 15.9 + 11.880 - 5.355 - 1.275 - .950 $2,810 Pea .566 .438 Smaller .350 Total 100 4.340 100.0 -4.36 4.522 100.0 + 4.30 4.164 Ass-omed cost for each mine ^ S$4.000 $4,000 4.172 Actual margin Standard realization C alculated cost as of standard per cent sizes— Mine A— 84X0.9564 per cent ^- *^<' Mine B— 554X104.30 per cent Calculated margin 5^* • ^^^ The correction for mine A is then 4.36 per cent and the adjusted cost $.3,826, showing 51.4 cents margin on the $4.34 standard realization against 52.2 cents actual margin. Similarly for mine B, the correction is 4.30 per cent, giving an adjusted cost of $4,172 and a margin of 16.8 cents, as compared with tlie actual margin of 16.4 cents. Thus the adjusted costs on the chart bear a time relation to the realization received from a scale of prices for the various sizes based on the standard or average percentage of sizes adopted as a base, regardless of the actual percentage of sizes produced by each opera- tion, and prices can be fixed from the chart line of adjusted costs which will result in giving each mine its intended margin. The correction, of course, is an allocation based on realization from the different sizes and could be made more accurately by taking into account each size produced, but at the cost of more time than was available for the work. With a material variation in price, different factors of correction should be calculated. 1 See anthracite chart in section on " The determination of a fixed price." 186 HISTORY OF PEICES DURING THE WAR. making weighted averages, the following average and bulk-line costs for standard fresh-mined white ash anthracite: De.scription. ^°^^^' Cost.s Co.5t, 90 per coin. bulk line. Excluding washery coal: S3. 85 3.71 4.37 3.85 3.57 83. 91 3.79 4.. 36 3.91 3.77 $4.80 4.65 All iudppendent operations, each colliery separate 4.97 All operations , each companj' operating 2 or more collieries consolidated . Including washery coal. All operations, each company operating 2 or more collieries consolidated . 4.38 4..3ii A differential of 75 cents per ton, as had been made by the Presi- dent on August 23, 1917, was made for pea size and above (equivalent to 52.95 cents per ton for all sizes) for the independent operators over certain companies with railroad affiliation, known as the " com- panies." It is of interest, in connection with the above table of average and bulk-line costs, to study the prices received for white- ash anthracite as prepared by the engineers' committee.^ It is noteworthy that, despite the elaborate anthracite cost analyses later made by the engineers' committee, the prices of anthracite coal were left substantially as fixed by the President save for two labor increases and the early reduction in the price of pea coal. The tables following make possible a comparison of anthracite prices as origi- * The prices received by the companies and independents have not been separately averaged, as were the costs, but calculating on the differential and assuming the per- centages the same for companies and independents, which is only approximately the case, the selling price of fresh mined coal would average for companies $4,287 and for inde- pendents $4,817. Margins over reported costs of companies would be 58 cents and for independents 45 cents, with a general average margin for all ft'esh mined coal of 56 cents and for all coal including washery of 71 cents per ton, and under " talk-line " costs fresh mined companies, 36 cents; independents, 15 cents; total, 39 cents, including washeries consolidated sheets total of 7.5 cents. These margins include all expenditures for Federal income and excess-profits taxes, selling espenses, interest charges, expenditures for improvements, and developments to increase output, excess of capital expenditures over normal cost, and all profit on the in- vestment of about $8 per ton annual output. Size. Fresh mined coal. Bank coal. Total, including banks. Per cent. Average price. Per cent. Average price. Per cent. Average price. Broken £gg Stove . 6.8 14.6 19.6 24.7 9.1 $4. 889 5.028 6.161 5.244 3.687 0.4 1.2 2.3 10.1 10.0 $4,416 4. 815 5.060 5.246 3.696 6.2 13.5 18.2 23.5 9.2 $4,886 5.027 5 160 Nut... 6.244 3.698 Pea Total and weighted average pre- pared and pea 74.8 4.959 24.0 4.544 70.6 4 947 Buckwhear 11.6 3.2 4.9 3.9 1.6 3.342 2.482 2. 231 2.341 2.202 21.4 14.9 27.5 8.8 3.4 3. 213 2.452 1.767 2. 123 1.555 12.4 4.2 6.8 4.3 1.7 3 324 Rice 2 473 Barley 2 974 Boiler 2 304 Pcre.p.ning'? , 2 162 Total and weighted average small 25.2 2.795 76.0 2.339 29.4 2 697 Grand total 100.0 4.414 100.0 2.868 100.0 4 285 GOVEElSrMEIsrT COISTTROL OVEE PRICES. 187 nally fixed bv the President and as they stood after the signing of the armistice.^ PRICES FIXED BY THE PRESIDENT AUG. 23, 1917. White ash. Red ash. Lykens Valley. Company. Independ- ent. Company. Independ- ent. Company. Independ- ent. Broken U.5o 4.45 4.70 4.80 4.00 $5.30 6.20 5.45 5. 55 4.75 $4.75 4.65 4.90 4.90 4.10 $5.50 5.40 5.65 5.C.5 4.85 S5.00 4.90 5.30 5.30 4.35 $5 75 Egg 5.65 Stove 6 05 6.05 Pea 5 10 FIXED PRICES. DEC. 31, 191S. White ash. Red ash. I.ykens Valley. Company. Independ- ent. Company. Independ- ent. Company. Independ- ent. $5 95 5.85 6.10 6.20 4.80 $6.70 6.60 6.86 0.95 5.55 $6.15 6.05 6.30 6.30 4.90 $6.90 6.80 7.05 7.05 5.75 $6.40 6.30 •6.70 6.70 5. 15 $7.15 Egg . 7 05 Stove ? 45 7 45 Pea 5.90 The average costs of producing anthracite coal, as they were re- ported for the six-month period from December, 1917, to May, 1918, including the increase of December 1, 1917, but not that of Novem- ber 1, 1918, follows : 2 AVERAGE ANTHRACITE COST, DECEMBER, 1917, TO MAY, 1918. Labor Supplies Transportation, mine to breaker Royalty, current Royalty, advance Depletion Amortization of cost of leasehold Depreciation Pro rata suspended cost of stripping . Contract stripping and loading . . Taxes, local Insurance, current Insurance, liability Officers' salaries and expenses Office salaries and expenses Legal expenses Miscellaneous Total Increase over May to November, 1917 Cost per ton Fresh mined coal, Wa.shery operations, Total, in- cludmg washerie.s, 38,688,466 tons. 35,256,550 tons. 3,431,916 tons. $2. 593 $0. 687 S2. 423 .616 .260 .584 .004 .007 .004 .153 .102 .148 .002 .002 .099 .077 .097 .014 .024 .016 .091 .086 .090 .023 .021 .009 .009 .054 .034 .052 .010 .014 ,016 .058 .018 .0.55 .030 .019 .029 .048 .024 .045 .005 .003 .005 .026 .023 .028 3.841 1.378 3.622 .764 .365 .719 ^ Mr. R. V. Norris, backed by the engineers' committee, concludes from these tables that " the selling price of anthracite has been increased but 30..'> per cent over tlie prewar price, v\4iile the cost of production has gone up 5- per cent, the difference having been absorbed by the operators." 2 Fuel Bulletin No. 146. 188 HISTORY OF PRICES DURING THE WAR. The filial realization for all companies and all sizes, including ■washeiy coal and both of the labor increases, was calculated to aver- age $5.13 per ton, while the bulk line, as shown previously, plus the November, 1918, labor increase, amounts to $5.32.^ (6) THE CONTROL OVER COKE.2 It has already been noted that the market prices of coke, so closely allied with iron and steel, rose to unprecedented heights during the summer of 1917. The wholesale price for Connellsville coke, furnace, prompt shipment, f. o. b. ovens, which just a year before had stood at $2.75, shot to $13.42 in August, 1917. The War Industries Board, by reason of its concern in the stabilization of iron and steel prices, had rescued coke quotations from a runaway market by fixing them definitely at a flat rate of $6 per ton on September 24, 1917. It is of interest that the Fuel Administration later confirmed this price and upon it as a basis figured numerous differentials and special prices for various districts.^ The Fuel Administrator on November 9, 1917, without any specific mention of previous price fixing, established maximum prices to be effective the following clay. These maximum prices for coke made in ovens without by-product recovery east of the Mississippi Eiver were: Blast furnace $6. 00 Foundry coke, 72-liour selected 7.00 Crushed coke, over 1-incli size 7. 30 These prices were made applicable per ton of 2,000 pounds f. o. b. cars at the plant where coke was manufactured. It was declared that the maximum prices for various grades of beehive coke made in districts other than these should bear the same ratio to the estab- lished price of the coal from which the coke was made as the aver- age contract prices of the same grades of coke had to the average contract prices of coal during the years 1912 and 1913. It is estimated that 10 per cent only of the total output of coke is sold on the open market, and there is no satisfactory measure from market quotations, therefore, of the relative point at which coke prices were fixed or the effect of price fixing upon the general market level as realized for the bulk of sales. There can be no ques- tion that the September price fixing had a tremendous influence in the pulling of the market price from its historic peak in August and holding it at a lower level thereafter. But if one would measure the effects of price fixing upon the remaining 90 per cent of' the total iR. V. Norris. " See also chapter on " lion and steol," under the War Industries Board controls. 3 See " General Orders, Regulations, and Rulings " of the Fuel Administration, Ch. VI, Title I, see. 1. GOVER]SI"MENT CONTROL. OVER PRICES. 189 output, lie must compare the fixed price with previous contract prices. There have been calculated below so-called realization prices for the United States from the spot quotations and the average annual realization reported by the Geological Survey.^ The com- parison has been facilitated by turning the weighted realization prices into relative prices, by letting the base price from July 1, 1913, to June 30, 1914, equal 100, The accompanying table of " spot " prices presents a marked con- trast to the realization price table.^ Price fixing beyond doubt scaled the market quotations from unprecedented heights for the smaller percentage of coke sales. The effect of price fixing upon the great bulk of sales by contract is, however, not so clear. The realization prices, indeed, went far beyond their 1917 peak several months after control had set in, and not during the whole of 1918 did they come down from that height. WEIGHTED KEALIZATION PRICES FOR ALL CONNELLSVILLE COKE. ACTUAL PRICES PEE NET TON. Januarj' February . . March April May June July August September. October November . December. . Year . January February . . March April May June July August September . October — November . December. , Year . - Month. 1913 ?2. 51 2.38 2.37 2.34 2.34 2.34 2.37 2.38 2.36 2.33 2.31 2.30 2.36 1914 $2.12 2.12 2.12 2.12 2.11 2.10 2.10 2.10 2.09 2.08 2.08 2.07 2.10 1915 $2.03 2.03 2.03 2.03 2.03 2.04 2.05 2.03 2.05 2.09 2.12 2.17 2.06 1916 12.65 2.68 2.69 2.61 2.60 2.62 2.64 2.64 2.65 2.78 2.93 3.03 2.71 1917 KELATIVE PKICES. 113 107 106 105 105 105 106 107 106 104 104 103 106 94 119 120 121 117 117 117 118 118 119 126 131 136 S4.87 4.88 4.88 4.77 4.79 4.97 5.04 5.09 4.96 4.69 4.69 4.69 218 219 219 214 215 223 226 228 222 210 210 210 218 S6.03 6.03 6.03 6.03 C.03 6.03 6.03 6.03 6.03 6.03 6.03 6.03 6.03 270 270 270 270 270 270 270 270 270 270 270 270 270 1 These realization pricesi figured by Mr. C. B. Lesher, were found in the same manner as those for bituminous coal, except that the assumption was made that 10 per cent of the total output was sold on the market and 90 per cent under contract, and that the coke year was from January to December. The prices for furnace and foundry coke were averaged in accordance with the relative production of each in 1916, as reported to the Geological Survey by the producers. ^^ a Both of these series are presented with more detail in " The Prices of Coal and Coke, by C. E. Lesher, W. I. B. Bulletin No. 3.^. 190 HISTORY OP PRICES DURING THE WAR. WEIGHTED "SPOT" PRICES OF ALL CONNELLSVILLE COKE. ACTUAL PRICES PER NET TON. Month. 1913 1914 1915 1916 1917 1918 $3.90 2.54 2.42 2.18 2.15 2.13 2.46 2.61 2.31 2.10 1.84 1.77 SI. 87 1.87 1.92 1.88 1.79 1.77 1.76 1.72 1.66 1.61 1.53 1.51 $1.52 1.52 1.52 1.52 1.52 1.57 1.65 1.52 1.62 2.04 2.30 2.65 $2. 96 3.38 3.48 2.44 2.33 2.51 2.76 2.82 2.95 4.85 6.91 8.39 $9.51 9.66 9.66 7.43 7.83 11.26 12.76 13.59 11.14 6.00 6.03 6.03 $6.03 February 6.03 6.03 6.03 6.03 6.03 July 6.03 August 6.03 6.03 October 6.03 November 6.03 December 6.03 Year 2.36 1.74 1.75 3.82 <).24 6.03 KELATITE PRICES. .January — February . . March April May June July August September . October November .. December,. Year. 194 93 78 147 474 127 93 76 168 481 121 96 76 173 481 109 94 76 122 370 107 89 76 116 390 106 88 78 125 661 123 88 82 137 636 125 86 78 140 677 115 83 81 147 555 105 80 102 242 299 92 76 115 344 300 88 75 132 418 300 118 87 87 190 460 300 300 300 300 300 300 BOO 300 300 300 300 300 300 (7) THE CONTROL OVER CHARCOAL. The Fuel Administrator did not bring charcoal under formal price control until the middle of 1918.^ Maximum prices were then fixed for charcoal f. o. b. cars at the point of shipment as follows: Cents. Lump in bulk, per bushel (20 pounds) 20 Lump in bags, per bushel (20 pounds) 22 Screening in bags, per bushel (20 pounds) 20 A reasonable charge, subject to the approval of the Fuel Admin- istration, was allowed for handling and delivery where wagon de- liveries were made from the producer to the purchaser. (8) CONTROL OVER FUEL WOOD. It is of interest that the Fuel Administration on October 29, 1918, authorized the Federal fuel administrators in the various States to establish such reasonable regulations as to the length of rail ship- ments of fuel wood cut within the State as they deemed necessary, and to stipulate the conditions of such shipments. ^July 9. GOVER]S"ME]SrT COJJ-TROL OVER PRICES. 191 (9) THE CONTROL OVER PETROLEUM. The Eaeet Wae Situation. The tremendous demands for petroleum and its products during the past decade brought the industry by 1915 to face a consumption demand which surpassed the annual domestic output. Indeed, for more than a year prior to the declaration of war by the United States we had been drawing upon reserve stocks and imports fi-om Mexico in order to supply our needs.^ The war, of course, both through the acceleration of industries and the large military consumption, in- creased the demand for petroleum products of all kinds. Moreover, the acute coal shortage and the transportation congestion of the winter of 1917-18 encouraged the substitution of fuel oil for other kinds of fuel. The demand for fuel oil, as might be expected, in- creased until a shortage developed and prices soared. Fuel oil, which had previously been of secondary importance in the refining of petroleum, took the lead among the various products. The Regulation of Prices. The rise in the price of fuel oil was naturally reflected in the price of crude petroleum, and market quotations for the latter soon reached a level 100 per cent higher than the prewar average.- (See chart on p. 195.) It soon became apparent, both to the petroleum industry and the various governmental agencies, that something would have to be done toward stabilizing prices. Several suggestions were made relative to governmental intervention. The opinion of the trade was that the " price of petroleum products be fixed in the same way *A review of the petroleum situation in the United States immediately prior to our entrance into the war is presented at length in Bulletin 3G of the present series, " Prices of Petroleum and Its Products," by Joseph E. Pogue, assisted hy Isador Lubin. (W. I. B. Price Bulletin No. 36.) 2 The following data present the course of the fuel oil and crude petroleum prices for the 6 years 1913 to 1918. Fuel oil spot quotations are not as representative of typical conditions as might be desirable, since the greater part of our supply is sold under con- tract. TaWes of actual and relative realizations at a centrally located refinery, there- fore, ai-e appended in order that the reader may obtain a truer picture of the price situation. ACTUAL REALIZED PRICES OF FUEL OIL JANUARY, 1913-DECEMBER, 1918. [Per barrel.] Month. January February . . March..!... April, May June July August September . October November . December. . 1913 S2. 15 2.15 2.15 2.15 2.15 1.67 1.67 1.67 1.67 1.67 1.67 1.90 1914 SI. 90 1.90 1.90 1.67 1.55 1.55 1.55 1.67 1.67 1.55 1.55 1.55 $1. 55 1.50 1.50 1.50 1.50 1.50 1.50 1.96 2.20 2.31 2.79 3.26 1916 $3.26 3.26 3.26 3.02 2.79 2.79 2.79 2.30 2.30 2.30 2.30 3. 26 S3. 74 3.98 3.98 3.98 3.45 3.45 3.45 3.93 3.93 3.93 3.93 3.93 S4.76 4.76 4.76 5.36 5.36 5.36 5.36 5.36 5.36 5.36 5.36 5.36 Footnote continued on page 192. 192 HISTORY or PRICES DTJEIISTG THE WAR. that iron and steel prices were fixed." ^ It was not until August 18, however, that any definite action w^as taken in the matter, and on that date the plan (1) to stabilize the price paid for crude oil; (2) to maintain the continued and uninterrupted flow of crude oil in its present channels in so far as is practicable and just to the interests involved through the voluntary action and cooperation of the indus- try itself was inaugurated. This system of voluntary price fixing was nothing more than a voluntary agreement made by the trade whereby the prevailing market prices were to be continued without increase, and premiums were to be limited to' certain fixed maxima.'^ The amount allowed for premiums varied from 10 cents per barrel of crude oil in the Appalachian districts to $1.50 for certain parts of the Mid-Continent. Footnote continued from page 191. RELATIVE REALIZED PRICES OF FUEL OIL JANUARY, 1913-DECEMBER, 1918. Month. 1913 1914 1915 1916 1917 125 110 90 189 217 125 110 87 189 231 125 110 87 189 231 125 97 87 175 231 125 90 87 162 200 97 90 87 162 200 97 90 87 162 200 97 97 114 133 228 97 97 127 133 228 97 90 134 133 228 97 90 162 133 228 110 90 189 189 228 1918 January.... February . . March April May June July August September . October November. December. . 276 276 276 311 311 311 311 311 311 311 311 311 1 The solution of the problems relating to petroleum was centered in the hands of the Oil Division of the Fuel Administration, which was established on Jan. 10, 1918, with Mr. M. L. Requa as general director. From the very beginning he placed considerable em- phasis vipon the price situation. Through his efforts the problem of petroleum pi-ices was settled with a minimum of administrative interference. On Apr. 25, he approached the War Industries Board with the request that action be taken along the lines adopted for other essential commodities. The attitude of the petroleum industry toward this matter is made evident in the following extract from Mr. Requa's letter to Mr. Baruch : " The petroleum war service commitee, as a result of an extended conference with me on the subject of prices, have requested that prices of petroleum products be fixed in the same way that steel prices were fixed. If this be done, it will greatly simplify the matter of allocation of purchases." No action, however, ^^■as taken by the War Industries Board at this time. Again on July 15, the price-fixing committee was asked to fix the price of fuel oil, especially for Navy purchases, but this request also was followed by no action, since it was the opinion of the committee that adequate power to regulate prices of fuels lay in the hands of the Fuel Administration. 2 Many small refiners are in the habit of paj'ing certain premiums above posted market prices of crude petroleum in order that they may obtain sufficient supplies. Mr. Requa in approving the plan referred to these premiums and their relation to the price of petroleum products as follows : " I want first to say that it is the understanding of this department that the pre- miums mentioned are to be maximum and are not to be paid unless absolutely necessary ; are not to be used in justification for a demand for increased prices for refined products and that prices above existing posted prices, if justified at all, can only be so upon the score of existing trade practices making such premiums necessary to permit the small purchaser to secure his crude. If Government control and direction finally follow as a national need, premiums, I believe, will be entirely wiped out, as present posted prices are in themselves ample to stimulate and encourage production." Moreover, the industry was given to understand that should the occasion arise for any readjustments in the prices of petroleum products, adequate proof of such necessity would have to be furnished. Sir. Requa goes on to say : " Broadly speaking, it is the hope of the Fuel Administration Oil Division that further advances in finished products will not be necessary ; but should it prove that GOVEEIsrMEN"T C02a I }SIA I 1313 j lgl7 I JSJ& I The War Industries Board was the industrial pivot about which war-time controls turned. From an idea, and then a committee within the Council of National Defense, it grew quickly into the most powerful arm of the President for converting the industries into war uses. It was the meeting point of the war machine and industry. It at once cleared requirements for the Government war agencies, allocated to the trade the output of commodities required immediately or in the future, assigned priority of production and delivery to war materials, curtailed non- essential production, conserved wasteful production by vari- ous restrictions, and controlled prices. The ramifications of these controls, within the Gov- ernment and out, make them relate intimately to prices. The price control exercised by the board proper, or that ex- ercised by the price-fixing committee, can not be dis- cussed without first under- standing the relations of these other controls over industry. Relative prices. — Petroleum, 5 fields ; Fuel oil, 5 cities ; Gasoline, 5 cities. — By months, January, 1913, to December, 191S. (Average quoted prices, July, 1913, to June, 1914=100.) seem from an examination simply of the finished monmnent. The Government, though educated in the doings of Europe for the three years previous, had not appreciated that it too might enter the combat, and had not yet prepared itself when war came. The Cabinet, high officials of the Government, and lower officials, went into all-day and evening conferences, inside the Government and 195 196 HISTOEY OF PEICES DUEIHG THE WAE. out, to learn tlieir problem and solve it. There was no conviction, aside from the need for soldiers and ammunition, that pressed more insistently upon the Government than the need for some form of control oyer industry. The gradual evolution of the ma- chinery of war-time industrial control was one of the greatest of the nonmilitary developments within the Government. A full story of the rise of the War Industries Board, which was the center of that control, falls into three separate parts: (1) The early work of the general munitions board, the committee on supplies, and the committee on raw materials, minerals and metals within the Council of National Defense; (2) the creation of the War Industries Board within the Council of National Defense on Juily 28, 1917; (3) and, finally, the creation of the War Industries Board as an independent organization under the Overman Act on' May 28, 1918. The Eaely Woek of the Council of National Defense. A comprehension of how the War Industries Board came into itg control over industry can not be had without tracing its earlier growth from a mere committee of the Council of National Defense to an independent board. The Council of National Defense was con- ceived, and later authorized under the Army appropriation bill of August 29, 1916, simply as a peace-time body to work broadly upon preparedness for war. The act itself declared it to be established " for the coordination of industries and resources • for the national security and welfare," and made it the duty of the Council of Na- tional Defense " to supervise and direct investigations and make recommendations to the President and the heads of executive de- partments as to the location of railroads with reference to the frontier of the United States so as to render possible expeditious concentration of troops and supplies to points of defense ; the coordi- nation of military, industrial, and commercial purposes in the loca- tion of extensive highways and branch lines of railroad ; the utiliza- tion of waterways ; the mobilization of military and naval resources for defense; the increase of domestic production of articles and ma- terials essential to the support of armies and of the people during the interruption of foreign commerce; the development of seagoing transportation ; data as to amounts, location, method and means of production, and availability of military supplies; the giving of in- formation to producers and manufacturers as to the class of supplies needed by the military and other services of the Government, the requirements relating thereto, and the creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the Nation." GOVERISTMENT CO]SrTROL, OVER PRICES. 197 The Council of National Defense (consisting of the Secretary of War, the Secretarj^ of the Nayy, the Secretary of the Interior, the Secretary of Agriculture, the Secretary of Commerce, and the Secre- tary of Labor) and its advisory commission^ had only the above general powers, as a basis in law. for the structure of control which it later built.^ Our determination to enter upon war caught the country, except for the paper-organized Council of National Defense, quite without a Government organism to assume control over its industries. The need for an organized industrial fabric, moreover, was then our paramount one. The Allies needed our munitions, metals, foods, and manufactures more immediately than they needed our men. The Council of National Defense, thus long before authorized as a peace- time body, was formally organized on March 3, 1917, and was seized upon as the best available organ for the control of industry. The council, which represented virtually the President's Cabinet, with the Secretary of War acting as chairman, and the advisory commis- sion met several times each week during the spring after our en- trance into war and planned how best to meet the war emergencies. A surprising number of the more important war agencies grew out of their early plans and their early committees. The Council of National Defense made the initial survey of the food problem which developed into the formation of a Food Administration; it created the Aircraft Production Board which later became separate ; it cre- ated an important committee on coal production which later went into the Fuel Administration ; it established the commercial economy board ; and the munitions standards board. But the three most im- portant committees which grew up under the newly organized Coun- cil of National Defense, and those which relate peculiarly to later price control, were the general munitions board, the committee on supplies, and the committee on raw materials, minerals and metals. The general mufrdtions hoard.— The general munitions board, cre- ated on March 31, 1917, and going for several days under the name of the purchasing commission, began three days after we entered the war to coordinate purchases for the Army and Navy, to assist them in the procurement of raw materials, and to assign to war orders priorities as between the Government departments and between the Government and industry. Since the board was destined ultimately ^The Council of National Defense, by authority of tbe statute, appointed an advisory commission of 7 members wlio administered tbe work of tbe council, as follows : Daniel Willard (chairman), transportation and communications; Howard E. Coffin, munitions and manufacturing ; Julius Rosenwald, supplies ; Bernard M. Barucb, raw materials, minerals, and metals; Hollis Godfrey, engineering and education; Samuel Gompers, labor; Franklin Martin, medicine and surgery. 2 See section 2 of H. R. 17498, known as the Army appropriation act. 198 HISTOKY OF PRICES DURING THE WAR. to grow into the War Industries Board, it is of peculiar interest to note the resolution by the Council of. National Defense creating the general munitions board : Such committee shall have no authority at this time to issue purchase orders, make contracts or bind the Government in its purchases ; all these things to be done, as at present, by the respective departments. The chairman of the committee, however, shall have authority to require, when necessary, that cer- tain (conflicting) purchases be not made until the same, with a full statement of the facts, have been submitted to the Secretaries of the War and Navy.* The general munitions board, moreover, at its initial meeting con- ceived as its purpose — to assume the prompt equipping and arming with the least possible disadjust- ment of normal industrial conditions, of whatever forces may be called into the service of the country. The immediate efforts of the board will be directed on lines calculated to coordinate the making of purchases by the Army and Navy ; to assist in the acquirement of raw materials and of manufacturing facilities ; and to establish the precedence of orders between the departments of War and of the Navy and between the military and industrial needs of the country.^ A perusal of the original minutes of the general munitions board shows that the board, despite its assigned narrower task, became peculiarly concerned with prices and their informal control. The board attacked, and virtually eliminated, competitive bidding by the Army and Navy for the same materials. It developed policies for the procurement of commodities required by war agents. It recog- nized from the outset that the Government, if it procured the esti- mated requirements, was confronted with the necessity of cutting down some and directing much of the industrial output, clearing all Government requirements over one table, and assigning priority of production and delivery to war materials. It helped to develop sources for rifles and other small arms, machine guns, ordnance, ammunition, gun forgings, carriages, limbers, caissons, forge wagons, military vehicles, steel helmets, armor-piercing shells, surgical sup- plies, optical glass and gauges, tools, and dies. Especial progress was made toward the production of the estimated requirements (gun forgings, small arms, ammunition, lumber for Army vehicles, and machine guns) of the Army and Navy. The real beginnings of the price-control problem came with the purchase of these materials, when the general munitions board advised the military departments how to determine prices and itself considered whether prices should be made a flat rate to the Government, or based upon cost plus a percentage of profit. 1 The general munitions board began work on Apr. 9, 1917, under the chairmanship of Frank A. Scott, and by June 30 was composed of IT representatives from the War and Navy Departments and 6 other civilians. - See minutes of general munitions board for Apr. 9, 1917. GOVEKE'MEIirT CONTROL OVER PRICES. 199 No doubt the first important recognition, or grant of authority, which enabled the general munitions board to influence prices was that given on April 17, 1917, by the Secretary of War, then chairman of the Council of National Defense : The general munitions board, having been appointed by the Council of National Defense, and having been called upon to perform, among other duties, that of determining what are fair and just prices to be paid by the Government for munitions and related supplies, I authorize the general munitions board to act on questions involving the determination of fair and just prices for munitions and related supplies, when called to do so by a Department head.^ This edict gave the munitions board, in so far as it could win coop- eration from any Government department, a free hand to determine upon and recommend " fair and just " prices for war materials. An inquiry, at a very early date, was made by the general muni- tions board into the more technical questions of how to determine " fair and just " prices and what understanding was to be made with the trade, pending that determination for purchases needed immediately. The board after a time, concluded that where a flat rate could not be agreed upon a cost plus percentage basis should be followed.^ It frequently happened that certain purchases were re- quired so promptly that deliveries were delayed awaiting the de- termination of a fair price. The board, in order to hasten deliveries, was authorized in such cases to assure the manufacturers a price of actual cost plus 10 per cent of profit.^ That general practice was often followed, in a modified form, in the later price fixing. ^ Minutes of general munitions board for Apr. 17, 1917. 2 The general munitions board, after hearing the report of its price committee, adopted the following policy on Apr. 25, 1917 : That whenever experience or public or competitive quotations make it possible for the department to be assured of the reasonableness of the price, a straight price method is to be preferred. In cases where a flat price can not be agreed upon, it is suggested that a cost plus percentage basis be followed ; the method of figuring cost to be the one laid down in the present law providing for the payment of a munitions tax. In cases where it is desirable to use the cost plus percentage basis, but where the Government and contractor are already aware of a fair s^verage cost for producing the article the method might be cost plus percentage, providing that if the cost falls below the average amount prescribed, the contractor shall receive half of the saving. If the cost passes above the amount prescribed, half the excess will be deducted from the contractor's percentage of profit. 8 The minutes of the general munitions board for May 5, 1917, show the following resolution made then a policy by the board : " Resolved, That where prices of material, machinery, manufactured articles, etc., named by the manufacturers are in excess of those recently paid for similar material, and prompt action is necessary to prevent delay in actual work of manufacture, the orders for such material may be placed immediately with such manufacturers and the actual prices to be paid settled after further investigation, provided that the manu- facturer is assured of a price of actual cost plus 10 per cent after submitting com- plete and satisfactory data as to items controlling increase in cost and an affidavit as to accuracy of data." 200 HISTOEY OF PRICES DURING THE WAR. Another important step toward the final plan of price control was the authorization given by the munitions board for its sub- committee (on prices) to " fix specific prices " in cases of emergency. The writing of that informal power into its minute book, though without any authority in statute, was a leap peculiarly significant as paving the way to future control. This resolution of the general munitions board, adopted May 1, 1917, says: That all questions regarding prices be laid before a general meeting of the board, except in cases where specific power is delegated by the board. How- ever, in case of emergency the chairman shall be. and he is hereby, empowered to appoint a committee to fix specific prices. The more or less formal records of the general munitions, board, quite apart from the many unwritten tales that are passed from ear to ear, show clearly that the beginnings of price control date back not only before the creation of the price-fixing committee but be- fore the creation of the War Industries Board. The general muni- tions board, created by the Council of National Defense on March 31, 1917, for the purpose of coordinating war purchases, of its own initiative concerned itself with prices. It, without the authority of a statute, studied how prices ought to be controlled and, more and more, assumed an informal control over them. The policies then elaborated comprehend to a surprising degree the essentials of the later price control. The committee on supplies. — The Council of National Defense, two months before we declared war, created a committee on supplies to advise with the purchasing officers of the War and Navy Depart- ments and to help them coordinate their requirements 'for clothing, equipment, and subsistence. This committee, one of the first seriously to give its attention to the question of stabilizing prices, was the first to ask the Secre- tary of War to abandon the peace-time Army and Navy practice of advertising for bids. It believed that advertisements for enor- mous quantities of staples would disturb industry and stimulate the inflation of prices. This change effected, the Government was en- abled to go over the heads of the middlemen directly to the manu- facturers for its purchases. In the past, when these middlemen heard of proposed Government purchases, they commonly secured options in advance upon such supplies and then quoted them to the Govern- ment at increased prices. The committee on supplies organized various subcommittees from every trade (notably cotton goods, woolen goods, knit goods, shoes, leather equipment, and canned goods), which later were made into commodity sections and assisted materially in the turning of manu- facturing plants into Government uses. ' GOVEEN-MEDSTT COISTTEOL OVER PRICES. 201 The committee, in a word, concerned itself primarily with com- modities difficult to secure because of the excessive requirements of the Government, shortage of raw material involved in their manufacture, or of the competition for civilian uses. It opened a way to later price control, in a sense, by its experience at securing options, the "pegging" of prices by various informal methods, the allocation of requirements to the industry, and by the reduction of competition between Government departments for the same goods.^ The committee on raw materials, minerals, aiid metals.— The com- mittee on raw materials, minerals, and metals under the direction of Bernard M. Baruch, which was the nucleus about which the com- ■ modity sections of the War Industries Board later grew, was created to survey the supply of raw materials available for our own and allied uses. The European war needs, prior to our entrance into war, had exhausted many of our surplus stocks and our prewar busi- ness contracts had tied up immense quantities of the remaining stocks. Those limitations, coupled with the reduction in shipping space for imports, made the problem before the Baruch committee one of the most pressing of that time. It soon became apparent to the committee on raw materials, min- erals, and metals, after several initial inquiries,^ that the satisfac- tion of all Government and allied commodity needs would require a thorough-going organization of industry. Mr. Baruch, himself a man of business viewpoint, put supreme confidence in widely re- spected business men and organized a series of cooperative com- mittees under their leadership. It was largely through these early contacts with, the trade that he, and his committee, were able to strike agreements for the placement of Government orders at lower than market prices. The committee gave marked impetus to the later work by the prompt organization of commodity committees for the alcohol, aluminum, anthracite and bituminous coal, asbestos magnesia, roofing, brass, cement, chemicals, copper, lead, lumber' mica, nickel, oil, rubber, steel, and steel products, and zinc indus- tries.3 The chief services, perhaps, of these commodity committees as a working part of the raw materials committee, were their help m providing trade information relative to supplies, their technical advice pertammg to the procurement of requirements, and their ability to hasten deliveries. 202 HISTORY OF PRICES DURING THE WAR. The foregoing beginnings of industrial control form a background of all control over prices later exercised by the War Industries Board. The committee on raw materials early recognized the need for stabilization of the market and for the purchase of Government requirements at reasonable prices. The committee itself, for example, as early as March, 1917, arranged informally for the purchase of 45,000,000 pounds of copper at 16f cents at a time when the prevailing market price was 35 cents. Soon afterwards a trade agreement was made for the purchase of 500,000 tons of steel at a price over one- third below the market price; and large purchases of zinc and lead were' also bought at like reductions. The committee, through the cooperative subcommittee on lumber, "pegged" lumber prices below the prevailing market and effected an estimated saving to the Gov- ernment of $10,000,000.^ These and other similar agreements all, it should be emphasized, were of a highly informal character. But, as such perhaps, they served the more to impress the Government and the trade with a confidence m prices jointly made. That belief, whether for better or worse, played a leading role in the subsequent system of price control. The. War Industries Boaed Oeeated Under the Council on July 28, 1917. The Council of National Defense, recognizing shortly the need for a broader control over industry, created the War Industries Board on July 28, 1917. The creation of the new board, approved by the President, emphasized simply the urgency for more control than the general munitions board, the committee on supplies, and the committee on raw materials, minerals and metals had been ex- ercising. It, therefore, was empowered to exercise control over more industries than had the general munitions board and to take over bodily the whole of the committee on supplies, and that on raw ma- terials with the numerous commodity committees under it.^ In these three early committees of the Council of National Defense the newly created War Industries Board had its nucleus. The official announcement of the creation of the War Industries Board declared that it was to act " as a clearing house for the war-industry needs of the Government, determine the most effective ways of meeting them, and the best means and methods of increasing production, including the creation or extension of industries de- manded by the emergency, the sequence and relative urgency of the 1 These data are set forth in the first annual report of the Council of National De- fense, issued for the fiscal year ended June 30, 1917. 2 Mr. Frank A. Scott, who had heen chairman of the general munitions board of the council, was retained as chairman of the new board. The chairmanship, later in the fall, was given to Mr. Daniel Willard. GOVERNMENT CONTROL. OVER PRICES. 203 needs of the different Government services, and consider price fac- tors." The board, under this definition of powers, after taking juris- diction over the work of the various advisory committees on raw materials and supplies, within a few months re-formed those com- mittees into what later became commodity sections.^ The appointinent of Chairman Baruch. — A noteworthy reorgani- zation of the internal work of the War Industries Board, and one which went far toward placing it upon its final basis, occurred when the President asked Mr. Bernard M. Baruch to become its chairman on March 4, 1918. The President had by then become impressed with the need for even a more far-reaching control over industry than the law specifically provided or than had been yet exercised by the Council of National Defense or the 7-month-old War Industries Board. He, therefore, upon the apointment of Mr. Baruch, redefined the functions of the board and read into them a number of sweeping war powers. This broad survey of powers to be exercised made Mr. Baruch "the general eye of all supply departments in the field of industry," responsible to anticipate prospective requirements of the Government and to turn the full capacity of the country to their production. It made his board responsible to create new facilities and to find new sources of supply; to advise the Government pur- 1 There follows a statement in full of the official outline of the powers and organi- zations of the War Industries Board as created on July 28, 1917 : The hoard will act as a clearing house for tlie war-industry needs of the Government, determine the most effective ways of meeting them, and the best means and methods of increasing production, including the creation or extension of industries demanded by the emergency, the sequence and relative urgency of the needs of the different Government services, and consider price factors and, in the first instance, the industrial and labor aspects of problems involved and the general questions affecting the purchase of commodities. Of this board Mr. Baruch will give his attention particularly to raw materials, Mr. Brookings to finished products, and Mr. Lovett to matters of priority. These three members, in association with Mr. Hoover so far as foodstuffs are involved, will con- stitute a commission to arrange purchases in accordance with the general policies formu- lated and approved. The Council of National Defense and the advisory commission will continue un- changed and will discharge the duties imposed upon them by law. The conunittees here- tofore created immediately subordinate to the Council of National Defense, namely, labor, transportation and communication, shipping, medicine and surgery, women's de- fense work, cooperation with State councils, research and inventions, engineering and education, commercial economy, administration and statistics,, and inland transportation, will continue their activities under the direction and control of the council. Those whose work is related to the duties of the War Industries Board will cooperate with it. The subcommittees advising on pai-ticular industries and materials, both raw and finished, heretofore created, will also continue in existence and be available to furnish assistance to the War Industries Board. The purpose of this action is to expedite the work of the Government, to furnish needed assistance to the departments engaged in making war purchases, to devolve clearly and definitely the important tasks indicated upon represen- tatives of the Government not interested in commercial and industrial activities with which they will be called upon to deal, and to make clear that there is total disassocia- tion of the industrial committees from the actual arrangement of purchases on behalf of the Government. It will lodge responsibility for effective action as definitely as is possible under existing law. It does not minimize or dispense with the splendid service which representatives of industry and labor have so unselfishly placed at the disposal of the Government. 204 HISTOKY OF PRICES DURING THE WAR. chasing agents relative to prices that ought to be paid; and to de- termine priorities in production and deliverj^ It is of especial inter- est that in this letter the President asked Mr. Baruch, as chairman, to be governed in his determination of prices by a committee sitting AA'ith him, and consisting of members of the board charged with the study of raAY materials and manufactured products, the labor mem- bers of the board, the chairman of the Federal Trade Commission, the chairman of the Tarijff Commission, and the Fuel Administrator.^ ' There follows a copy in full of the letter written to Mr. Bernard M. Baruch from the White House on Mar. 4, 1918, and redefining the work to he done hy the War In- dustries Board under his chairmanship : My Dbak Mr. Baruch : I am writing to ask if you will not accept appointment as chairman of the War Industries Board, and I am going to take the liberty at the same time of outlining the functions, tlie constitution, and action of the board as I think they should now be established. The functions of the hoard should he: II) The creation of new facilities and the disclosing, if necessary the opening np, of new or additional sources of supply ; (2) The conversion of existing facilities, where necessary, to new uses ; (3) The studious conservation of resources and facilities by scientific, commercial, and industrial economies ; (4) Advice to the several purchasing agencies of the Govei-nment with regard to the prices to be paid ; (5) The determination, wherever necessary, of priorities of production and of delivery and of the proportions of any given agencies when the supply of that article is in- sufficient, either temporarily or permanently ; (6) The making of purchases for the Allies. The board should be constituted as at present and should retain as far as necessary and so far as consistent with the character and purposes of the reorganization, its present advisory agencies, but the ultimate decision of all questions, except the de- termination of prices, should rest always with the chairman, the other members acting in a cooperative and advisory capacity. The further organization of advice I will in- dicate below. In the determination of priorities or production, when it is not possible to have the full supply of any article that is needed produced at once, the chairman should be assisted, and so far as practicable guided, by the present priorities organization or its equivalent. In the determination of priorities of delivery, when they must be determined, he should be assisted when necessary, in addition to the present advisory priorities organization, by the advice and cooperation of a committee constituted for the purpose and consisting of official representatives of the Food Administration, the Fuel Administration, the Railway Administration, the Shipping Board, and the War Trade Board, in order that when a priority of delivery has been determined there may be common, consistent, and concerted action to carry it into effect. In the determination of prices the chairman should be governed by the advice of a committee consisting, besides himself, of the members of the board immediately charged with the study of raw materials and of manufactured products, of the labor member of the board, or the chairman of the Federal Trade Commission, the chairman of the Tariff Commission, and the Fuel Administrator. The chairman should be constantly and systematically informed of all contracts, pur- chases, and deliveries, in order that he may have always before him a schematized an- alysis of the progress of business in the several supply divisions of the Government in all departments. The duties of the chairman : (1) To act for the joint and several benefit of all supply departments of the Gov- ernment ; ■ (2) To let alone wbat is being successfully done and interfere as little as possiljle with the present normal processes of purchases and delivery in the several departments ; (3) To guide and assist wherever the need for guidance or assistance may be re- GOVERNMENT CONTROL OVER PRICES. 205 The Wak Ixdustkies Boaed Made Independent Under the Overman Act on May 28, 1918. A still further independence was given the War Industries Board on May 28, 1918, when, by the authority of the Overman Act, the President separated the board from the Council of National Defense. There were, it appears, no additional powers over industry granted to the board in law or in proclamation by virtue of its new inde- pendent status. It was set apart from the Council of National De- fense, and given its independence, by an Executive order. But that order did not itself, nor did any accompanying proclamation, set up new functions or powers. The order, indeed, specifically referred to the previous letter written to Mr. Baruch on March 4, 1918, and de- clared that the functions, duties, and powers of the War Industries Board, as outlined there, " shall be and hereby are continued in full force and effect." (2) THE POWERS AND POLICIES OF THE WAR INDUSTRIES BOARD. A search after the powers and policies of the War Industries Board leads to such a dearth of material that it is curious how industry was put under control so easily. That board, though charged with the control of all industry save food and fuel, had a more doubtful statutory basis for pushing rigid control policies than any other war board. It had fewer specific powers in law than either of the boards responsible for controlling simply the food and fuel phases of in- dustry respectively. But, despite all, the War Industries Board gradually assumed the functions of coordinating Government pur- chases and of maintaining a widespread and effective control over industry. It is of interest to trace the basis in law for all of this war-time control, the policy of control which Mr. Baruch sponsored, the scheme of organization he administered, and finally, the relation which the work' of the board itself bore to the regulation of prices. vealed ; for example, in the allocation of contracts, in obtaining access to materials in any way preempted, or in tlie disclosure of sources of supply ; (4) To determine what is to be done when there is any competitive or other conflict of interest between departments in the matter of supplies ; for example, when there is not a sufficient immediate supply for all and there must be a decision as to priority of need or delivery, or when there is competition for the same sources of manufacture or supply, or when contracts have not been placed in such a way as to get advantage of the full productive capacity of the country ; (5) To see that contracts and deliveries are followed up where such assistance as is indicated under (3) and (4) above has proved necessary; (6) To anticipate the prospective needs of the several supply departments of the Government and their feasible adjustment to the industry of the country as far in ad- vance as possible, in order that as definite an outlook and opportunity for planning as possible may be afforded the business men of the country. In brief, he should act as the general eye of all supply departments in the field of industry. Cordially and sincerely yours, (Signed) Woodkow Wilson. 206 HISTOKY or PRICES DURI^TG THE WAR. Its Basis in Law. It is not difficult to find all of the basic powers that were given to, and taken by, the War Industries Board to authorize its controls. The mandates of the War Industries Board, with scarcely a single exception, were accepted throughout the Nation, as authoritative arrangements for the general good, without question as to the author- ity upon which they were issued. The war-time spirit of the country and its industry was, in the main, weapon enough to enforce any regulation necessary for the common weal. But, withal, the com- pulsory forces behind the war-industry controls exercised by the board were not altogether lacking. They came, directly or indi- rectly, from the Army appropriation act, which was made law on August 29, 1916 and authorized the creation of a Council of National Defense; the President's well known letter of March 4, 1918; the Overman Act ; and other grants of lesser importance.^ The Army appropriation act, of which the pertinent section was analyzed earlier in the chapter, authorized the creation of a Council of National Defense.^ It was given power to investigate and rec- ommend to the President and heads of the executive departments in matters relating to the location of railroads to help concentrate troops and supplies most expeditiously ; the coordination of military, industrial, and commercial purposes in the location of highways; the utilization of waterways ; the increase of domestic production of articles and materials essential to the support of armies and of the people during the interruption of foreign commerce; the develop- ment of sea-going transportation; data as to amounts, location, 1 A brief digest is here given of the various statutes from which the War Industries Board claimed power to enforce its mandates either directly or indirectly. The Council of National Defense act (39 Stat., 619) authorized the President to take possession and assume control of systems of transportation. The naval emergency fund •act (39 Stat., 1168) authorized the requisition of raw materials for the Navy and, in so far as they pertained to aircraft, for the Army. The emergency shipping fund act (40 Stat., 182) authorized requisition of materials for ships ; the food control act (40 Stat., 276) granted requisitory powers over foods, fuels, and other supplies necessary to the support of the Army, the maintenance of the Navy, or any other public use connected with the common defense, over storage facilities for supplies, over plants for the pro- duction of such supplies, over plants for production or merchandising of coal and coke, and over distilled spirits. A power of compulsorj' order with penalties for refusal was granted in the national defense act (39 Stat., 166). These, with various powers of regulation and license granted in the food and fuel acts, the espionage and trading- with-the-enemy act (40 Stat., 225; and 40 Stat., 411), and the power of regulation of prices granted in the former act, and of priorities in transportation under the priority in transportation act of Aug. 10, 1917 — lodged in various agencies of the Government such power to vitalize governmental preferences in particular fields as to render a com- plete system of such preferences practicable. While these powers were not given to the War Industries Board in specific statutory terms, by close cooi)eration between the agencies to which they were granted, and by the transfer of power to the War In- dustries Board under the Overman Act, the whole legislative mechanism was amply sufficient to have enforced the execution of all directions that were given. 8 That section, quoted earlier In the chapter, is -Section 2, H. R. 17498. GOVERNMENT CONTROL OVER PRICES. 207 methods, and means of the production of military supplies ; inform- ing the producers and manufacturers what classes of supplies are required by the Government ; and, from the standpoint of the study at hand, most important of all, " the creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the nation." It was primarily under this last general grant of power that the Council of National De- fense found statutory authority for setting up, as a part of it, a so- called War Industries Board.^ The Army appropriation act, authorizing the parent council, gave it power specifically to do no more than "supervise and direct investigations and make recommendations to the President and the heads of executive departments." The War Industries Board, as a creature of the council, had no leg in law more firm to stand upon than that early fragmentary power given during peace time. More specific far, if not more basic, than the clauses of the Army appropriation act were the functions which the President inter- preted under it in his letter of March 4, 1918. That letter, writ- ten by authority of the above act and his general war powers, was the immediate and most definite of all grants of power made to the War Industries Board. In it, after appointing a new chairman of the board, he redefined its functions to include the creation of new facilities and disclosing new sources of supply; conversion of existing facilities to new uses; conservation of resources and facili- ties by scientific, commercial and industrial economies; advice to the Government purchasing agents with regard to prices to be paid ; the determination of priorities in production and delivery where necessary; and the making of purchases for the Allies. Then apart from the above powers and duties assigned by him to the board as a whole, the President made it the duty of the chairman to act for the joint and several benefit of all supply departments of the Government; to guide and assist in allocation of contracts, in obtaining access to materials, the finding of new supplies or what- ever need may be revealed; to determine how to eliminate conflict of interest between departments in the matter of supplies; to see that contracts and deliveries are followed up; to anticipate the re- quirements of the Government and to meet them.^ The act creating the council, while not defining the methods to be followed in planning the "concentration and utilization of the resources of the Nation," had placed, on the other hand, no restric- 1 The Council of National Defense was given authority hy the act itself ' to organize subordinate bodies for its assistance in special investigations, either by the employment of experts or by the creation of committees of specially qualified persons to serve with- out compensation, but to direct the investigations of experts so employed." 2 Letter of the President to Bernard M. Baruch of Mar. 4, 1918. 208 HISTORY or PRICES DURING THE WAR. tions upon the council within its general grant of power. The President's letter, though more specific and sweeping in its enu- meration of powers, did clamp upon the War Industries Board as such two distinct restrictions in power. The President specifically asked Mr. Baruch. as chairman of the War Industries Board, "to let alone what is being successfully done and interfere as little as possible with the present normal process of purchases and delivery in the several departments." The other, and for this inquiry more pertinent, restriction upon the War Industries Board and its chair- man was the limitation placed upon its right to fix prices. The President left the final decision of all questions relative to its control over industry, except the determination of prices, with its chairman. This specific exception was striking, and gave rise to the. creation by the President of a price-fixing committee. The passage of the Overman Act on May 20, 1918,^ gave a new face, if not a new content, to the powers of the War Industries Board. One of the purposes of the act was the "better utilization of re- sources and industries," but under it the President was given no new powers other than those pertaining to a redistribution of functions, duties, and powers already conferred by law. It authorized him, as he did on May 28, 1918, to break the War Industries Board apart from the Council of National Defense and set it up as a body quite independent and charged to perform the duties outlined in his earlier letter. That separation itself gave a considerable show of added authority, which for war-time purposes was about as effective as additional statutory powers. The basis in law of the creation and powers of the War Industries Board, then, was not as firm or definite as that of the Food Adminis- tration and Fuel Administration. The latter were the creatures of specific legislative action by the Congress after we had entered the war^ and were given very definite war-time controls to administer Avith ample power and with the enforcement of penalties. The War Industries Board was the creature of a peace-time statute, adopted as the nearest authority at hand for a makeshift but immediate or- ganization of the board, and later, filled with new purpose and in- spiration by a letter from the President. The war-time spirit of the country was an immeasurable power upon which to draw for the enforcement of regulations. It is much more evident that the War Industries Board sadly lacked a full grant of legislative power than that it suffered much from the lack. 1 See S. 3771 for Overman Act in full. 2 Created by the food and fuel act of Aug. 20, 1917. GOVEE]SrME]SrT COlsTTROL OVER PRICES. 209 The Policy of INIe. Baeuch. The paucity of power given by law to the War Industries Board and, more especially, the ill-defined character of that power, aroused a lively interest in the policies of Mr. Bernard M. Baruch. He, it might be supposed, had at his disposal a wider freedom to control after his own fashion than had any other industry-controlling chair- man at Washington. If the Congress had not created his board by special enactment, neither had it defined his course for him or tied his hands. Mr. Baruch, with the war on, was not in need of more far-reaching powers unless he contemplated somewhat radical regu- lation. He did not, in point of fact, complain of lack of power or go to the Congress for more. It might from these points be inferred, as was a fact, that Mr. Baruch by necessity and by choice ordinarily did not announce policies of control until each problem arose and was attacked. There is little more to say of his policies than that he went before the country with no hard and fast policies of control ; he dele- gated the making and administering of those policies to commodity chiefs, known as " dollar a year " men, and chosen from the trade ; and that he maintained a well-planned organization of contacts with all of the Government and the industry. The problem put to the War Industries Board was too involved, difficult, and big to state in a word or comprehend at once how best to attack it. The Board became virtually responsible for turning the whole of industry, save the food and fuel industries, into war uses. But, except where there appeared a war requirement to fill, it pursued religiously a policy of noninterference. The task of fulfill- ing Government and allied orders made the War Industries Board deal, in the main, with the big-business end of industry, much as the task of conserving foods made the Food Administration deal so largely with the smaller dealers and consumers. The regulation of the steel industry, which was said to be controlled by seventeen men who could be gathered into one room at Washington, required a quite different method from that applicable to the regulation of wheat. Mr. Baruch, himself strictly a business man by experience and point of view, was in a strategic position to fraternize with the trade and give it a more tolerant attitude toward Government interference. He, as they knew, had been in Washington a full year when the President asked him to take the chairmanship of the War Industries Board on March 4, 1918. During that time, furthermore, he had mixed freely with them and convinced them that he was bent upon no revolution of industry and would ask nothing beyond what was vitally needed in war time. 125547°— 20 14 210 HISTOKY OF PRICES DURING THE WAR. There seemed to Mr. Baruch no occasion for wide publicity or propaganda among the millions of small dealers and consumers, and the majority of contacts made by the board with the country were made informally around conference tables with the leaders of industry. He preferred frankly, as necessity to control an addi- tional industry arose, to meet that industry separately and make individual agreements which seemed at the time the most expedient. Mr. Baruch, therefore, did hot during the whole war formulate and advertise any general or dominating principles of industrial control. As said above, it was the policy of Mr. Baruch to delegate the making and administration of detailed policies to his " dollar-a- year " men, whom he had called to the board from the trade. These commodity chiefs, who were presidents and managers of large firms during peace time, brought the Government and the industry quickly together. All of them, through the cooperation of hundreds of war- service committees authorized to speak for the various trades, main- tained an intimate and frequent contact with production and price conditions of each important raw material and finished product. They formed the most ready and most effective of all the links between the Government and industry. The most distinguished of all the policies of Mr. Baruch was found in the organization of con- tacts. He believed thoroughly in, and did develop, a wide scheme of contacts within the Government and out. One of the first things which Mr. Baruch set out to do, when he came into the chairmanship of the board, was to perfect and establish lines of personal contact with every war agent of the Government and every organized branch of war industry under his control. The Organization of the Boakd. There is little danger of emphasizing too often the value to the war-industry control, realized through the organization scheme of the War Industries Board. That board was made at every angle to synchronize Government requirements and supply. The functions of gathering requirements, clearing purchases, allocating orders to the trade, making procurements, determining priorities in production and delivery, curtailing less or nonessential production, instituting conservation programs, and controlling prices were conceived and assigned to distinct divisions of the War Industries Board. Each commodity section, headed by a chief from the board proper, was composed of members from all other Government purchasing agencies interested in that particular commodity. The chief, through his war-service committees, was also as closely affiliated in contact with the trade. Each commodity section, then, to a smaller degree, was the center of information pertaining to the demand and supply of its GOVERNMENT CONTROL OVER PRICES. 211 particular commodity as was the Board for the whole of industry.^ These smaller sections were organized in larger divisions subordinate to the board proper consisting of Chairman Bernard M. Baruch, a vice chairman who also represented the allied purchasing commission, a representative of the Army, a representative of the Navy, the priori- ties commissioner, the chairman of the price-fixing committee, a representative of labor, the director of steel, the commissioner of finished products, and a technical advisor. The Relation of the Board to Peice Fixing. Scarcely an important action was taken by the War Industries Board which did not affect prices, and account should be taken of ' A clearer idea of the important organization scheme, set up by the War Industries Board, to unite Government requirements and industry production, as it stood at the signing of the armistice, follows : Organisation scheme of the War Industries Board. — Divisions : Building materials division, chemical division, conservation division, division of planning and statistics, ex- plosives division, facilities division, finished products division, hide, leather, and leather goods division, labor division, price fixing committee, priorities division, pulp and paper division, purchasing commission for the Allies, requirements division, steel division, textile division. Sections : Acids and heavy chemicals section (chemical divi- sion), agricultural implements, animal and hand-drawn vehicles, and wood products section, alliali and chlorine section (chemical division), automotive products section, belting section (hide, leather, and leather goods division), boot and shoe sec- tion (hide, leather, and leather goods division), brass section, bureau of warehouse distribution (steel division), chain section, chemical glass and stoneware section (chemical division), clearance office, coal-gas products section (chemical division), cotton and cotton linters section (textile division), cotton goods section (textile division), crane section, creosote section (chemicals division), division of business administration, domestic skins and hides section (hide, leather, and leather goods division), electrical and power equipment section, electrodes and abrasives section (chemical division), elec- tric wire and cable section, emergency construction committee, ethyl alcohol section (chemical division), felt section (textile division), ferro-alloys section (chemical divi- sion), fiber board and container section (pulp and pai)er division), fire prevention section, flax products section (textile division) , forgings, guns, small arms, and small-arms ammunition section, gloves and leather clothing section (hide, leather, and leather goods division), gold and silver section (chemical division), hardware and hand tool sec- tion, harness and personal equipment section (hide, leather, and leather goods division), hides and sliins section (hide, leather, and leather goods division), inland traflSc section, iron and steel scrap section (steel division), jute, hemp, and cordage section, linit goods section (textile division), labor section (priorities division), legal section, lumber sec- tion, machine tool section, , manufacturing section (pulp and paper division), medical section, mica section (chemical division), military optical glass and instrument section, miscellaneous chemicals section (chemical division), miscellaneous commodities section, news section — committee on public information, newspaper section (pulp and paper division), nitrates section (chemical division), nonfeiTous metals section, nonwar con- struction section, paint and pigment section (chemical division), paper economies section (pulp and paper division), periodical section (pulp and paper division), platinum section (chemical division), power section, projectile steel rails, alloy steel, and cold-drawn steel section (steel division), permit section (steel division), pig iron section (steel division), price section (division of planning and statistics), railway equipment and supply section, refractories section (chemical division), resources and conversion section, rubber section (textile division), sheepslsin and glove leather section (hide, leather, and leather goods division), silk section (textile division), sole and belting leather section (hide, leather, and leather goods division), special advisory committee on plants and munitions, statis- tics section (steel division), steel products section (steel division), ^stored materials sec- tion, sulphur-pyrites section (chemical division), synthetic dye and intermediate section (chemical division), tanning materials and vegetable dye section (chemical division), technical and consulting section (chemical division), tin section, tobacco section, upper, harness, bag, and strap leather section (hide, leather, and leather goods division), wood chemicals section (chemical division), woolens section (textile division), wool section, domestic (textile division), wool section, foreign textile division). 212 HISTORY OF PRICES DURING THE WAR. all that the board did if it is hoped to tell in full the tale of war- time control over prices. But, strictly speaking, the War Industries Board was not a price- fixing agency and had no independent hand in the fixing of prices. The price-fixing committee, while popularly thought a creature of the War Industries Board and under its directions, was really created by the President as an organization independent of the board. It will be recalled that the President, in his letter of March 4, not only failed to give the War Industries Board powers to control prices, but specifically limited it in that power. He gave the chair- man a free hand in all other delegated controls, " except the deter- mination of prices," and declared that — In the determination of prices the chairman should be governed by the advice of a committee consisting, besides himself, of the members of the Board imme- diately charged with the study of raw materials and of manufactured products, of the labor member of the board, of the chairman of the Federal Trade Com- mission, the chairman of the Tariff Commission, and the Fuel Administrator.' It seems doubtful, in view of these limitations, whether any con- siderable formal power to fix prices was given to the War Industries Board of itself. The commodity chiefs, again and again, however, came to informal agreements with the trade and in reality often de- termined what prices should be asked of the Government and the civilian trade. The board worked hand in glove with the price-fixing committee and, in a large way, was the administrative organ to which the committee looked for the enforcement of prices which it fixed. (3) THE KINDS OF CONTROL EXERCISED. Once the War Industries Board had learned the problem facing ity and saw that it must make itself the Government clearing house for war-time industrial needs, there was presented the necessity for or- ganizing controls to that end. The departments came with war re- quirements, and left it to the War Industries Board to meet them as it would. No war board at Washington undertook such a multi- plicity of controls, for no other covered a field so wide. It was re- sponsible virtually for the whole of industry save food and fuel, and had to administer it by the use of many quite distinct forms of con- trol. Any person who served with the War Industries Board instinc- tively thinks of its work under the technical terms, — " requirements," " clearances," " priorities," " allocations," " curtailments," " conserva- tion," " prices," and others of lesser importance. Each of these spe- cial kinds of control affected prices and, indeed, might be called phases of price control. No study of the problem touching Govern- 1 The price fixing committee, with Mr. Robert S. Brookings as chairman, was ap- pointed by the President and had its first meeting Mar. 14, 1918. GOVERIsTMENT CONTEOL, OVER PRICES. 213 ment control over prices could claim comprehensiveness without some analysis of these phases. Requirements. There were few problems which Mr. Baruch at the outset saw more clearly than the need for a mechanism to receive and classify Government requirements. He impressed that fact, through his chiefs, upon the Government and on April 2, 1918, announced the creation of a new requirements division. It was, in a sense, the funnel through which the Government sent its requests for com- modities to the War Industries Board preparatory to later clearance and allocation. It was the organ which Mr. Baruch set up in re- sponse to the President's letter asking him to keep " as far in ad- vance as possible " a watch of the " respective needs " of the Govern- ment and Allies and saying that he " should be constantly and scien- tifically informed of all contracts, purchases, and deliveries in order that he may have always before him a schematized analysis of the progress of business in the several divisions of the Government in all departments." The new requirements division, as conceived by the President and by his newly appointed chairman, was to be the focus of all the war-industry controls over the production and distribution of raw materials or finished products required by the Government or her Allies. There passed through it during the war literally thousands of requirements.^ The requirements division, because designed to bring to one table all Government requirements, was organized to include representa- tives, from all agencies which made considerable purchases for war purposes in the Government and out (Army, Navy, Emergency Fleet, Marine Corps, Eailroad Administration, Housing Corporation of the Department of Labor, Purchasing Agency of the Panama Canal, Allied Purchasing Commission, Eed Cross, Y. M. C. A., Knights of Columbus, and the Commission on Training Camp Activities). The Food Administration and Fuel Administration, too, were given opportunity to attend the meetings when they desired projects'^that involved materials, supplies, facilities, electrical power, fuel or trans- portation affecting the industries. The requirements division, though loosely organized enough to permit changes and the entrance of new representatives from time to time, consisted of its chairman and the more important divisional heads of the War Industries 'The records of the requirements aivision show that the consecutive numbers of separate requirements totaled five thousand odd, which included all of the Government and part of the allied requirements handled. But in addition, there were hundreds of allied requirements not so numbered. The bulk of all these requirements did not start coming in until the fall of 1918, when, sometimes, several hundred came in a s'no- e morning. ^'"sie 214 HISTORY OF PRICES DURING THE WAR. Board, assembled in conference with the supply heads for the Govr ernment and the Allies.^ It took, in i^oint of fact, some months to impress the Government and the Allies with the necessity for a strict and constant estimate of future requirements. That shortsightedness gave the War Indus- tries Board one of its most difficult problems. A vast number of the shortages had come simply from failure to look ahead for needs. The new requirements division, therefore, devoted itself to the task of gathering future requirements and left the immediate needs to the clearance committee. The work of the division, as the plan behind it gradually took root, grew tremendously in importance and in effectiveness. The routine by which all requirements were received at a central point and distributed to the commodity chiefs is indicative of the policy behind the whole scheme. The various Government and allied representatives, who throughout Washington on the day previous had made new requirement estimates, brought those requirements to the War Industries Board each morning. They were there read aloud in the requirements division and, as the representatives chose, discussed. The discussion did not, of course, turn upon whether the future requirement should be allowed or disallowed. That determination was left to the time when these requirements should ripen into clear- ances. It turned rather upon whether there was a shortage and, if so, how the requirement should be met. The requirements, after the meeting, were sent forthwith to the commodity chiefs of the War Industries Board. These commodity sections, each headed by a chief representiifg the War Industries Board, included representatives from each supply department of the Government interested in the commodity required. It was the business of the commodity chief, with the advice of his section members, to find ways to meet the requirements and, later on, to allocate them. The department which originally submitted the requirement was expected to keep account of it through a repre- sentative in the commodity section to which the requirement had been referred. At the last, the commodity chiefs were asked to fill out a blank for the requirements division in receipt of each requirement, stating in detail whether and how the industry could meet the 1 The requirements division, as originally organized, was made to include Mr. Alex. Legge (chairman), the executive secretary of the War Industries Board, the priorities com- missioner, the chief of finished products division, the chief of the iron, steel, and steel products division, the chief of the chemicals and explosives division, the chief of the nonferrous metals section, one or more representatives of the War Department, one or more repi'esentatives of the Navy Department, a representative of the Marine Corps, one or more representatives of the Emergency Fleet Corporation, and a representative of the Railroad Administration. Later, Mr. James Inglis and finally Mr. W. E. Guylee was made secretary. GOVERITMENT CONTROL OVER PRICES. 215 requirement. Each commodity chief was asked to consider market conditions pertinent to the requirements ; recommend purchase plans to the several purchasing departments ; and, if it seemed necessary to control an industry in whole or in part by allotments, to determine the allocation of materials, commodities, and facilities to the several Government departments. Allies, and to civilians. Cleaeances. The War Industries Board, with all of its emphasis upon the need for anticipating and recording future Government requirements, had only perfected its mechanism to that end a short while before the armistice was declared. These so-called requirements, as time went on, each ripened into a clearance and in theory every clearance should have been anticipated in some previous requirement. A " requirement," as commonly termed, was a future requirement, and a " clearance " was an immediate requirement. The one in logic preceded the other. But, in point of practice, under the intense pressure of their other work the officials found it exceedingly difficult to estimate their requirements until the very hour when there came a pressing need for them. The beginnings of clearances, therefore, date back to the start of the war and they far exceed the estimated requirements which were sent to the requirements division prior to their being actually cleared. The dearcmce committee. — The General Munitions Board at the beginning of the war saw the necessity for coordinating the pur- chase branches of the Government,^ and created under it a clearance committee comprising a chairman, a secretary, and representatives from the General Staff, the separate purchase branches of the Army, the Navy, the Allied Purchasing Commission, the Marine Corps, and the important sections of the General Munitions Board.^ This early committee attempted to bring together the purchasing of war mate- rials, to adjust matters of priority between the various departments and to keep a watch over shortages of materials. One of the most important of the early functions, perhaps, was the meeting ground it afforded to the supply bureaus of the Army. In May, 1918, however, the Army centralized its own purchases in a newly created purchase and supply branch of the purchase, storage, and traffic division. There was then less occasion for the Army to send more than one representative to the clearance committee conferences. iThe Council of National Defense first asked the General Munitions Board to make clearances on Apr. 28, 1917. 2 Mr. Frank A. Scott was made chaii-man of the clearance committee at its inception. When he resigned the chairmanship passed to Lieut. Col. C. C. Bolton, who held it until the reorganization of the committee, when Rear Admiral F. F. Fletcher was made chairman. 216 HISTORY OF PRICES DURING THE WAR. The clearance committee, by coordinating all supply purchases, elimi- nated in large measure competitive bidding by various branches of the Government for the same material. It took especial interest in "watching prices and, where there appeared shortages of materials, issued clearance lists. But it became more and more difficult for the clearance committee, even as reorganized in May, to handle the volume of work before it. The numbers of immediate requirements that needed clearance each morning grew into the hundreds and made utterly hopeless any more tlifin a mere perfunctory reading of them at the clearance committee meetings. The enormous increases in Government purchases, though none the less demanding coordination or clearance, gave the committee more work than it could do either with care or expedition. That con- sideration, and the development of the commodity sections within the War Industries Board, contributed to another and final organiza- tion of the clearance work. The commodity sections, after a time, were made to include representatives from each of the Government purchasing agencies. Obviously, then, the logical disposal for the clearance committee to make of each immediate requirement was to clear it directly through the commodity chiefs. These reasons ex- plain why the deliberative work became less and less important and the routine of distributing clearances more and more so. They ex- plain why, in a word, the old clearance committee was abolished on July 24, 1918, and its work was delegated to a newly created clearance office within the requirements division. The clearance office. — It was the business of the clearance office to receive all requests for clearances, record them, and distribute them promptly to the proper commodity sections. It had, furthermore, to urge action by the commodity sections and, after clearance, to in- form every purchasing department of the Government of the pros- pective purchases of every other department. Throughout the war there were cleared, by the clearance committee and later by the clear- ance office, altogether 29,000 immediate requirements. Of that total, 80 per cent emanated from the War Department, 15 per cent from the Navy Department, and 5 per cent from the other departments. It is interesting and relevant to note that the War Industries Board granted about 95 per cent of all requests for clearance and that 5 per cent were refused by reasons of adjustment of war needs between ourselves and the Allies. The War Industries Board was, of course, the central point to which all prospective war purchases were brought for clearance. It, therefore, required that all Govermnent departments report such purchases to its clearance office in so far as they appeared on a confidential so-called clearance or " shortage " list. GOVER^rMEIN'T CONTEOL, OVER PRICES. 217 Tli£; clearom,ce list. — Xo bureau of the Government had such a check upon shortage of supplies as had the War Industries Board through its clearance vrork. There was early made up as a working basis a clearance list, upon which were entered from time to time the specific articles of which there was shortage and for which clearance was required. The practice at the start was to list separate com- modities as necessity demanded. The clearance office later, however, made the sweeping additions to the clearance list of — all schedules of prospective purchases involving orders for any articles or commodities, to be placed in the congested district, which orders shall call for or involve the creation or use of additional fuel, power, or transportation facilities, and all schedules of prospective purchases involving the creation of new or addi- tional facilities wherever placed and however created. The clearance list, in point of fact, came at last to cover virtually the whole list of important war-making materials.^ 1 There follows a copy of the clearance list (or "shortage list") as it stood at the signing of the armistice. Clearance list. — Before negotiations are instituted clearance must be obtained on pro- posed purchases of articles or commodities in the four following general classifications : 1. All schedules of prospective purchases involving articles or commodities on the list given below, entitled " Clearance schedule." 2. All schedules of prospective purchases involving orders for any articles or com- modities, to be placed in the congested district, which orders call for or involve the crea- tion or use of additional fuel, power, or transportation facilities. The boundaries of the congested district will be defined from time to time by the Railroad Administration, Fuel Administration, and War Industries Board, and will be published by the latter. This con- gested district now is included between the Atlantic Ocean and a line drawn through Chesapeake Bay to Baltimore, north to Harrisburg, west to Altoona, northeast through Williamsport, Binghampton, and Schenectady to the Hudson River, and thence north to the northeastern boundary of the State of New York. The districts served by the electrical power companies of Canton, Baltimore, Massillon, Alliance, Niagara Falls, Pittsburgh, Connellsville, Wheeling, Toungstown, and Akron are also prohibited centers due to lack of power. 3. All schedules of prospective purchases Involving the creation of new or addi- tional facilities wherever placed and however created ; that Is, either direct or indirect Government business ; and including all war building of any nature whatsoever. 4. The orders for production in Government plants do not require clearance so far as the actual order itself is concerned, though the material required for filling the order will require clearance if on the clearance list. At the time requirements are presented, statement must be made as to whether the Government department at interest is in a position to handle all or any part of the order within its own plants. Clearance schedule. — Acids, agricultural implements, vehicles (not auto propelled), and wood products : (a) Vehicles: Army wagons. Ai-my carts, two-wheel. Artillery wheels, spokes, and hubs. Spare parts. (6) Truck bodies. (c) Wood products, meaning handles, boxes, containers, crates, propellers, etc, t*) Agricultural tractors. Automotive products, meaning : (a) Motors, truck, tractor, aeroplane. (6) Transmissions. 218 HISTORY OF PRICES DURING THE WAR. Priorities. Little control would, indeed, have been exercised over industry in this country had the War Industries Board simply gathered in, Automotive products, meaning — Continued. (c) Axles. (d) Springs. (e) Forgings. (t) Tires, solid. (g) Rims, pressed on. (7i) Motor-cycle rims. (i) Pneumatic tires. (j) Steel wheels. (k) Magnetos. (I) Spark plugs. (m) Valves. (n) Cam shafts, finished and rough. (o) Ci'ank shafts, finished and rough. (p) Trucks. (g) Military tractors. (r) Motor cycles. (s) Trailers. (t) Storage batteries. (w) Ball and roller bearings. (v) Steel castings for motor cars. (iv) Drive and link belt chains. (x) Radiators. (y) Babbitt-lined bearings. (z) Frames. (aa) Truck bodies for motor chassis. (6B) Sets of spare parts for automotive vehicles. Brass and copper rods, tubing, and sheets. Chains (all chains other than automotive drive and link belt). Chemicals. Cordage, hemps, and fibers, including — (a) Jute. (B) Manila. (c) Kapok mattresses, pillows, pads, and life garments. (d) Coir yarns. (e) Manila rope. if) Sisal rope. (g) Cocoa mats and cocoa matting. (h) Linoleum. (i) Oakum. (j) Burlap. Cork. Cotton linters. Cotton goods. Cranes — (a) Locomotive. (6) Electric traveling. (c) Gantry. (d) Shipyard. (e) Buckets (grab buckets). (f) Hoists. (fif) Portable electric. (h) Electric monorail (i) Wrecking. (;■) Track pile drivers. Cylinders and containers (pressure). Drawing instruments. Electric equipment — (a) Generators. (&) 'furbines. * GOVERNMENT CONTROL OVER PRICES. 219 for analysis, a record of all Government requirements and cleared all prospective purchases. Such a record would mean only that Electric equipment — Contuiued. (e) Condensers. (d) Pumps. - , (e) Compressors. if) Transformers. (g) Current breakers. (h) Oil switches. (i) Lightning- arresters. (/) Motors, special, machine tool, and adjustable speed, direct-current, and crane. (7c) Electrical supplies. Electric wire ana cable. Explosives and components thereof. Felts. Fire prevention apparatus — {a) Hand fire extinguishers. (6) Fire hose. Forging and machining for guns, projectiles, or shafts. Hardware, mill, plumbers', and heating supplies. Hides and skins. Iron and steel, of which the following are allocated through the director of steel : (a) Bands. (6) Billets. (c) Blooms. {d) Boiler tubes. (e) Cold-rolled steel. (f) Hoops. (g) Ingots. (h) Merchant bars. (i) Fig iron. (j) Pipe. (&) Plates. (Z) Rails and accessories. (m) Rods. (n) Seamless tubing. (o) Shapes. (p) Sheets. (q) Sheet bars. (r) Sheet steel. (s) Skelp. (t) Slabs. (u) Tin plate. (v) Wire and wire products. (w) Wire rope. Knit goods. Leather and leather goods. Linen and linen thread. Lumber. Machine guns and accessories (cleared through Ordnance Department, United States Army) . Metal-working machinery, including tools, forge-shop machinery, and plate-working machinery. Mica (cleared thorugh Bureau of Supplies and Accounts, United States Navy). Needles. Nonferrous metals : (a) Aluminum. (b) Antimony. (c) Copper. (,d) Lead. (e) Zinc. (f) Mercury (cleared through Bureau of Supplies and Accounts). iff) Nickel. (h) Tin. 220 HISTORY OF PRICES DURING THE WAR. the Government knew Avhat commodities it "would need, and had coordinated all of its purchases. But it did not follow, of course, that the whole or an^^ of industr}^ would nicely adjust itself so as to produce or to deliver commodities in precisely the order which these Government requirements demanded. One of the most vital of all the War Industries Board controls came by reason of its power to tell the industry of the country what orders should have priority in production and what in delivery. It meant, in a word, that the War Industries Board, through thousands of decisions, must decide the relative importance of services and of commodities for war purposes. The determination of those priorities arose in all manner of ways between the various departments of the Govern- ment; the Allies; the Government and the Allies; the Government and individuals; the Allies and individuals; and as between par- ticular individuals.^ The details involved in the administration of l^riorities control are deserving of especial and technical study be- cause they form the basis of almost all the war-industry controls and bear peculiarly upon prices. The beginnings of control through the issuance of priorities ex- tended back to the authorization of a priority subcommittee by the General Munitions Board on May 3, 1917. The director of the Council of National Defense briefly and pointedly defined the func- tions of priority by declaring that the committee — sliall exercise full power in the determination of priority of delivery of ma- terials and finished products whenever there is a conflict in delivery in accord- ance with the general policy of the Government. It is fvirther understood Oil: Castor oil (cleared through Signal Corps, United States Army). Linseed oil. Optical glass and optical instruments. Paper, 100 per cent sulphate, Kraft. Paper and paper pulp. Power equipment. Railway equipment. Eubher. Rubber goods. Silk noil and silk cartridge cloth. Small arms (small-arms ammunition) cleared through Ordnance Department, United States Army. Small tools. Tobacco. Typewriters. AVool. Woolen goods. 1 It would be amiss to omit the precise wording by which the priorities committee of the War Industries Board later defined, over and again, the purpose of priorities and the method of determining them : The paramount purpose of priorities is the selective mobilization of the products of the soil, the mines, and the factories for direct and in- direct war needs in such a way— as will most effectually contribute toward winning the war. In requesting priority the petitioner should join with the committee in applying the test : To what extent, if at all, will the granting of this application contribute, directly or indirectly, toward winning the war ; and if at all, how urgent is the need. GOVERIfTMENT CONTROL OVER PRICES. 221 that at present the prioritj- committee of the General Munitions Board lias no power in regard to the determination of priority in regard to civilian needs in which the Army and Navy requirements are not involved. It is further understood that as between the needs of our Allies and our civilian popula- tion, the priority committee of the General Munitions Board for the present has no authority to act. In this connection, however, the priority committee should keep full information as to such cases or instances as come to its attention, in order that plans maj"^ further be developed for properly handling the matter. That early committee, though not given all powers which were later granted, was forced npon the General Munitions Board by reason of the quantities of requests from manufacturers and con- tractors doing Government work asking which orders should be filled first. Before mid-summer the new committee was receiving from 50 to 75 appeals a day for preference policies. But the real work of control through priorities began early in the fall of 1917, after the creation of the War Industries Board, and with the ap- pointment of Judge Eobert S. Lovett to priority supervision,^ Authority for priority control. — Congress seems to have author- ized control of industry through the issuance of priorities more specifically than any of the other controls exercised by the War Industries Board. The act of August 29, 1916, said: That a Council of National Defense is hereby establislaed for the coordination of industries and resources for the national security and welfare. It shall be the duty of the Council of National Defense to supervise and direct inves- tigations and make recommendations to the President and the heads of execu- tive departments as to the location of railroads with reference to the frontier of the United States so as to render possible expeditious concentration of troops and supplies to points of defense ; the coordination of military, industrial, and commercial purposes in the location of extensive highways and branch lines of railroad ; the utilization of waterways ; the mobilization of military and naval resources for defense ; the increase of domestic production of articles and materials essential to the support of armies and of the people during the interruption of foreign commerce ; the development of sea-going transportation ; data as to amounts, location, method and means of production, and availability of military supplies ; the giving of information to producers and manufacturers as to the class of supplies needed by the military and other services of the Government, the requirements relating thereto, and the creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the Nation, That legislative authorization, the agreement between the more important Government departments,^ the various resolutions of the 1 Judge Edwin B. Parker, by appointment from tlie priorities commissioner .Judge Robert S. Lovett, was put in active charge of the organization of the new committee on Aug. 23, 1917. After Mar. 4, 1918, Judge Parlcer succeeded Judge Lovett as priorities com- missioner and chairman of the priorities committee. 2 The President, the Secretary of War, the Secretary of Navy, the chairman of the United States Shipping Board, and the president of the United States Shipping Board Emergency Fleet Corporation agreed to confer upon Judge Lovett, and through him, the priorities committee, such powers of priority as lay within their legal right. The important priority circulars were signed by each of these officials except the President. 222 HISTORY OF PRICES DURING THE WAR. Council of National Defense,^ and the President's letter of March 4, 1918, declaring that one of the six functions of the "War Industries Board should be — the determination, wherever necessary, of priorities of production and of deliv- ery and of the proportions of any given agencies when the supply of that article is insufficient, either temporarily or permanently, gave an abundance of war-time authority .for the exercise of wide priority powers. The priority cireulars. — The consideration of 211,430 applica- tions ^ for priority in production or delivery, made by agencies hav- ing war needs, was a highly complicated and technical business. The priorities committee set about that task in a thoroughgoing manner when it issued priority circular No. 1 on September 21, 1917, giving general directions as to priority and outlining the method of apply- ing for priority assistance. That and subsequent circulars attempted to classify and rate orders in accordance with their relative need for war and national purposes.^ The first circular required that a rating of orders be made only by persons producing iron and steel or their j)roducts. The classes of producers required to observe priority rating in the fulfillment of their contract orders were extended grad- ually from that beginning until on July 1, 1918, the well-known cir- cular No. 4 was issued stating that — during the war in which the United States is now engaged all individuals, firms, associations, and corporations engaged in the production of raw materials and manufactured products (save foods, feeds, and fuels) are requested to observe regulations respecting priority.* The War Industries Board came then into priority control over virtually the whole industry (not already controlled by the Food Administration and Fuel Administration) of the country. The method of rating. — The priorities committee, in order that purchasers and producers might know what priority to follow, di- 1 Note especially the resolution of Sept. 25, 1917, assigning the priorities activities of the War Industries Board of the Council of National Defense to Judge Lovett. 2 A large number of applications for priority assistance were handled prior to Sept. 21, 1917, the date when the use of formal application blanksi and formal certificates was begun. The first priority certificate issued was dated Sept. 25, 1917. Since that date 211,430 applications have been received ; 191,966 priority certificates have been issued, of which, however, 8,448 were reissued certificates with amended ratings ; 27,912 declinations and withdrawals of applications were issued. The highest number of ap- plications received and numbered in one day was 1,901 on July 8, 1918. The highest number of certificates issued in one day was 2,121 on Sept. 30, 1918. Weekly reports of applications received and certificates issued are to be found in the weekly " Office Review." " In order to get the system satisfactorily started all orders which had been placed prior to Sept. 21, 1917, by or on behalf of the War Department, the Navy Department, or the United States Shipping Boaj.'d Emergency Fleet Corporation were automatically rated as class A-1 unless otherwise directed ; and, likewise, all orders for military sup- plies and equipment placed by or for the Allies as cl^ss A— 2. * There were in all issued 60 separate priority circulars from Sept. 21, 1917, to Dec. 20, 1918, extending the control over priorities. Circular No. 60, issued on the latter date, revoked as of .Tan. 1, 1919, all rules, regulations, and directions of every nature issued by the priorities division. GOVERZ^TMENT CONTROL OVER PRICES. 223 vided all orders and work into five general classes : Class AA, class A, class B, class C, and class D, with subdivisions of class AA, class A, and class B, indicated by suffix number, thus: Class AA-1, class AA-2, etc.; class A-1, class A-2, etc.; class B-1, class B-2, etc.^ Orders and work in class AA took precedence of orders and work in all other classes ; those in class A took precedence of those in classes B, C, and D ; those in class B took precedence of those in classes C and D; those in class C took precedence of those in class D; all irrespective of the dates the orders were placed. The classification of an order meant that it should be given such precedence over orders of a lower classification as were necessary (and only such as were necessary) to insure delivery on the date specified in the order. It did not mean that work should cease on orders of a lower classi- fication, or that the order should be completed and delivery' made in advance of orders taking a lower classification if this was not neces- sary to effect delivery within the time specified. Any person or agent, entitled to preferential treatment under the policies of the priorities committee, ordinarily made application to the committee for an order running against a manufacturer or distributor and call- ing for delivery by a certain date. The priorities committee, if im- pressed after a consideration of the claim, assigned one or the other of the above ratings to the order and issued a certificate. This cer- tificate was issued to the applicant direct, unless otherwise requested, and not to the person against whom it ran. The applicant then presented his certificate to the person against whom it ran, and the latter arranged his production program to give delivery to that pri- ority order in its relative turn with respect to other priority orders. AutomMio rating. — It was soon found that certain classes of orders so obviously deserved preference, that a priority rating could be assigned automatically. A scheme of automatic classifications was set up accordingly, on July 1, 1918,2 which made unnecessary any application for certain written priority certificates, or any refer- 1 Class AA comprised only emergency war work of an esceptional and urgent nature. Class A comprised all other war work; that is to say, orders and work necessary to carry on the war, such as arms, ammunitions, destroyers, submarines, battleships, transports, merchant ships, and other water craft, airplanes, locomotives. Class B comprised orders and work which, while not primarily designed for the prosecu- tion of the war, yet were of public interest and essential to the national welfare or other- wise of exceptional importance. Class C comprised all orders and work not covered by priority certificates issued by the priorities committee or not taking an automatic rating, which orders and work were to be utilized in furtherance of one or more of the purposes embraced within the " General classification of purposes demanding preference treatment" promulgated by the pri- orities board, or which orders and work were placed by or utilized in connection with an industry or plant appearing on preference list No. 1. No class C certificates were issued. Class D comprised all orders and work not embraced in class AA, class A, class B, or class C, and no certificates were issued therefor. 2 See sees. 7, 8, 9 of priority circular No. 4. 224 HISTORY OF PRICES DURING THE WAR. ence to the priorities committee. The applicant simply attached to his order an affidavit in prescribed form setting forth the facts es- sential to automatic rating, and the war uses for which materials were needed. The new scheme gave no automatic rating higher than A-4, thus leaving the ratings of AA, AA-1, AA-2, etc., A-1, A-2, A-3 to be given onl}^ by specific action of the Priorities Committee. All orders by the War Department, the Navy Department, or the Emer- gency Fleet Corporation, falling within class A were automatically rated A-5 upon their proper signature to the following statement : Unless rerated by express order in writing by the Priorities Committee of the War Industries Board, this order is by authority-of said Priorities Com- mittee rated as class A-5, and its execution shall take precedence over all your orders and work of a lower classiiication to the extent necessary to insure delivery according to the date specified herein, as prescribed by Circular No. 4, issued by the priorities division of the War Industries Board, of date July 1, 1918, and all amendments thereto. There was set forth a series of automatic ratings covering all priorities below A-4, which gave the applicant, when an affidavit was attached stating that materials would be used for purposes having the specified rating, his proper precedence.^ ^ Circular No. 4, issued July 1, 1918, recognizes the following purposes which may take priority rating automatically as indicated : (a) For the manufacture of turbines (all classes) A-4 (b) For the repair or construction of steam railroad locomotives for use on the railroads under the jurisdiction of the United States Railroad Administra- tion , A— 4 (c) For the production of electrodes A-5 {d) For the manufacture of rope wire and of wire rope A-5 (e) For the building of ships or other water craft for and under direct contracts with the United States Shipping Board, Emergency Fleet Corporation A-5 if) For the building of all cargo water craft (but not pleasure craft) save such as are under construction by or for the United States Shipping Board, Emer- gency Fleet Corporation A-6 (g) For the manufacture of machine tools for working both metal and wood ; of machinists' tools, of small tools, of hand tools, "and of mining tools, ma- chinery, and equipment A-6 (h) For the manufacture of steam railroad materials, equipment, and supplies (other than locomotives), for use on the railroads under the jurisdiction of the United States Railroad Administration B-1 (i) For the manufacture of locomotive cranes and traveling cranes B-1 (;■) For the manufacture of electrical equipment other than turbines (but not electrical supplies as distinguished from equipment) B-2 (ft) For the manufacture of farm implements B-2 (7) For the manufacture of textile machinery B— 2 (wi) For the manufacture of tools, implements, machinery, and equipment required for the production, harvesting, distribution, milling, canning, and refining of foods and feeds B-2 (n) For the manufacture of binder twine and rope B-2 (o) For the manufacture of oil-well supplies or equipment, by which is meant supplies for the production of petroleum and natural gas, but not includ- ing pipe lines, storage tanks of 1,000 barrels capacity ov over, tank cars, or refineries B-2 Each order for materials, equipment, or. supplies for such purposes or uses as fall within class C, as defined by the priority committee, will automatically be classed as class C ; and all orders save such as are automatically classed above shall be automatically classed as class D unless otherwise provided. GOVBE]SrMEN"T CONTROL OVER PRICES. 225 Unifying priorities in production and those in delivery. — A serious need soon developed for a more organized attention to priorities in delivery swch as had already been given to priorities in pro- duction. It was found that, even when manufacturers had observed priority policies in making materials, confusion and conflicts within the Govermnent were delaying the deliveries of those materials. The President in his letter of March 4, accordingly, suggested the creation of a Priorities Board within the priorities division. That board, by his recommendation, was made to include representatives from the various Government departments in order that, after a priority of delivery had been determined upon, there might be " com- mon, consistent, and concerted action to carry it into effect." The priorities division was then composed of a priorities committee and a Priorities Board, the latter administering the policies of the former. The priorities commissioner, as the War Industries Board member in charge of the priorities division, was chairman of both the board and the committee. The committee and the board working together, after the creation of the latter on March 27, 1918, effected a greater harmony in the administering of priorities over production and deliveries. Purposes demanding preferential treatment. — A very important undertaking of the Priorities Board was its issuance on March 27, 1918, of a general classification of purposes demanding preferential treatment for the guidance of agencies in the production, supply, and distribution of raw materials, finished products, electrical energy, fuel and transportation by rail, water, pipe lines, and otherwise. That list gave preference to the raw materials going into, or sup- plies necessary to, the manufacture of ships, aircraft, munitions, mili- tary and naval supplies and operations, fuel, food and collateral industries, clothing, railroads, and public utilities. These were the " purposes " demanding preference treatment and were made known to the whole Government. The issuance of ever increasing numbers of priority orders had long since made the problem of synchronizing priorities within the Government and the industry an involved one. The Priorities Board, by drawing into its deliberations other govern- mental departments (Eailroad Administration, Emergency Fleet Corporation, the War Trade Board, the Fuel Administration, the Allied Purchasing Commission, the War Labor Policies Board, the Army, and the Navy), created a unit to administer priority orders, as well as to help form them. The cooperative scheme worked with great effectiveness, for, it should be noted, the decisions of the Prior- ities Board so organized were subject to review only by the chainnan of the War Industries Board and by the President. The general classification of purposes demanding preference treatment made by the Priorities Board, and its later similar but more refined preference 125547°— 20 15 22G HISTORY OF PRICES DURIl^G THE WAR. lists, went a long way toward uniting the Government and the indus- try upon priority policies. The yrefeTenwe lists. — A list of 45 industries (more commonly known as " Preference list No. 1 ") where operations were deemed of exceptional importance during the war, was drawn up by the Priori- ties Board on April 6, 1918. The list was made for the guidance of all agencies of the Government in the supply and distribution of coal and coke, in the supply of transportation by rail or water, and for the movement of coal and coke to those industries. The scope of that list was extended to cover 73 industries.^ and it was again very much broadened by " Preference list No. 2," and its supplement is- sued respectively on September 3 and October 1, 1918. The purpose of the preference list, as it stood at the signing of the armistice, was to govern the Government and others in the production and supply of fuel and electric energy to certain necessary industries ; in the supply of labor; and in the supply of transportation service by rail, water, pipe lines, or otherwise. The preference list, includ- ing the 73 industries, was made up of industries entitled to preferen- tial treatment. But the inclusion of those industries, or the plants on the 7,000 list, did not operate as an embargo against all others. The requirements of all other industries and plants were simplj^ deferred until the requirements of those on the preference list were satisfied. In the compilation of this list, industries and plants were divided according to their relative importance into four classes, viz, Class I, Class II, Class III, and Class IV.^ 1 List No. 2, unlike list No. 1, included also an individual rating for about 7,000 specific plants. This departure was made in cases where it seemed that particular plants should have preference even though the industries to which they belonged should not ; or where particular plants deserved a higher rating than that given their industry. Each of these plants which failed to file a monthly report of its. activities was dropped from the preference list. 2 Class I. — Aircraft : Plants engaged principally in manufacturing aircraft or aircraft supplies and equipment. Ammunition : Plants engaged principally in manufactui'ing same for the United States Government and the Allies. Army and Navy : Arsenals and navy yards. Army and Navy: Cantonments and camps. Arms (small): Plants engaged principally in manufacturing same for the United States Government and the Allies. Blast furnaces: Producing pig iron. Chemicals: Plants engaged principally in manufac- turing chemicals for the production of military and naval explosives, ammunition, and aircraft, and use in chemical wai-fare. Coke : Plants engaged principally in producing metallurgical coke and by-products, including toluol. Domestic consumers : Fuel and electric energy for residential consumption, including homes, apartment houses, resi- dential flats, restaurants, and hotels. Explosives : Plants engaged principally in manu- facturing same for military and naval purposes for the United States Government and the Allies. Feed : Plants engaged principally in preparing or manufacturing feed for live stock and poultry. Poods : Plants engaged principally in producing, milling, refining, preserving, refrigerating, wholesaling, or storing food for human consumption embraced within the following description : All cereal and cereal products, meats including poultry, fish, vegetables, fruit, sugar, sirups, glucose, butter, eggs, cheese, milk and cream, lard, lard compounds, oleomargarine and other substitutes for butter or lard, vegetable oils, beans, salts, coffee, baking powder, soda, and yeast ; also ammonia for refrigeration. Gas : See oil and gas, also public utilities. Guns (large) : IMants engaged principally in manufacturing same for the United States Government and the Allies. Hospitals : See Public institutions and buildings. Mines : CoaL Navy yards : See Army and Navy, GOVERNMENT CONTEOL. OVER PRICES. 227 The order by alphabetical listing has no significance, but all in- dustries and plants grouped under class I had exceptional im- Oil and gas : Plants engaged principally in producing oil or natural gas for fuel or for mechanical purposes, including refining or manufacturing oil for fuel, or mechanical pur- poses. Oil and gas : Pipe lines and pumping stations engaged in transporting oil or natural gas. Public institutions and buildings (maintenance and operation of ) : Used as hospitals or sanitariums. Public utilities: Gas plants producing toluol. Railways: Opel-ated by United States Railroad Administration. Sanitariums : See public institutions and buildings. Ships (maintenance and operation of) : Excluding pleasure craft not common carriers. Ships: Plants engaged principally in building ships, excluding (a) pleasure craft not common carriers, (6) ships not built for the United States Govern- ment or the Allies nor under license from the United States Shipping Board. Steel- making furnaces : Plants engaged solely in manufacturing ingots and steel castings by the open-hearth, Bessemer, crucible, or electric furnace process, including blooming mills, billet mills, and slabbing mills for same. Steel-plate mills. Toluol : See coke .also public " Ctoss JJ —Brass and copper: Plants engaged principally in rolling and drawing copper, brass and other copper alloys in the form of sheets, rods, wire, and tubes. Coke : Plants not otherwise classified or listed, producing same. Copper and brass : See brass and copper. Cranes: Plants engaged principally in manufacturing locomotive cranes. Ferro-alloys : Plants engaged principally in producing ferrochrome, ferromanganese, ferro- molybdenum, ferrosilicon, ferrotungsten, ferrouranium, ferrovanadium, and ferrozir- conium Gas: See oil and gas. Machine tools: Plants engaged principally m manu- facturing same Mines : Producing metals and ferro-alloy minerals. Navy department : See War and Navy Departments. Public utilities: Street railways, electric lighting, and power companies, gas plants not otherwise classified, telephone and telegraph com- panies water supply companies, and like general utilities. Public utilities : Plants en- gaged 'principally in manufacturing equipment for railways and other public utilities. Railways • Not operated by United States Railroad Administration (excluding those op- erated as plant facilities). Rope wire: See wire rope. Steel rail mills: Rolling rails 50 or more pounds per yard. War and Navy Depatments : Construction work con- ducted by either the War Department or the Navy Department of the United States in embarkation ports, harbors, fortified places, flood protection operations, docks, locks, channels, inland waterways, and in the maintenance and repair of same. Wire rope and rope wire: Plants engaged principally in manufacturing same. Class 77/.— Buildings : See public institutions and buildings. Chain : Plants engaged principally in manufacturing iron and steel chain. Cranes: Plants engaged principally in manufacturing traveling cranes. Domestic consumers: Fuel and electric energ-y not otherwise specifically listed. Electrical equipment : Plants engaged principally in manu- facturing same. Explosives : Plants, not otherwise classified or listed, engaged principally in manufacturing same. Foods : Plants engaged principally in producing, milling, prepar- ing, refining, preserving, refrigerating, or storing foods for human consumption not other- wise specifically listed (excepting herefrom plants producing confectionery, soft drinks, and chewing gum). Gas: See oil and gas. Ice: Plants engaged principally in manu- facturing same. Mines: Plants engaged principally in manufacturing mining tools or equipment. Oil and gas: Plants engaged principally in manufacturing equipment or supplies for producing or transporting, oil or natural gas, or for refining and manu- facturing oil for fuel or for mechanical purposes. Public institutions and buildings (maintenance and operation of) : Other than hospitals and sanitariums. Steel : All plants operating steel rolling and drawing mills, exclusive of those taking higher classification. Tin plates : Plants engaged principally in manufacturing same. Tools : Plants engaged principally in manufacturing small or hand tools for working wood or metal. Class IV. — Agricultural implements : See farm implements. Bags — hemp, jute, cotton : Plants engaged principally in manufacturing same. Boots and shoes : Plants engaged exclusively in manufacturing same. Chemicals : Plants, not otherwise classified or listed, engaged principally in manufacturing chemicals. Cotton: Plants engaged in the com- pression of cotton. Cotton textiles: See textiles. Drugs — medicines and medical and surgical supplies: Plants engaged principally in manufacturing same. Farm imple- ments: Plants engaged principally in manufacturing agricultural implements and farm operating equipment. Fertilizers: Plants engaged principally in producing same. Fire brick: Plants engaged principally in manufacturing same. Food containers: Plants en- gaged principally in manufacturing same. Foundries (iron) : Plants engaged principally in the manufacture of gray iron and malleable iron castings. Insecticides and fungicides : Plants engaged principally in manufacturing same. Laundries. Newspapers and periodi- 228 HISTORY OF PRICES DURING THE WAR. portance in connection with the prosecution of the war. Their re- quirements were fully satisfied in preference to those of the three remaining classes. Requirements of industries and plants grouped under class II, class III, and class IV had precedence over those not appearing on the preference list. As between these three classes, liowever, there was no complete or absolute preference. The division into classes was for the purpose of presenting a composite picture of the relative importance of the industries and plants embraced within each group. It was not intended that the requirements of class II should be fully satisfied before supplying any of the requirements of class III or that those of class III should be fully satisfied before supplying an}' of those of class IV. War-industry controls center about priorities. — The widest of all the controls extended over industry b}^ the War Industries Board was that which it got by determining for industry what priority should be given all war orders both in production and in delivery. The other kinds of control exercised, indeed, led into priorities con- trol. It came to be the strongest weapon in the hands of the Gov- ernment for enforcing its industrial control rules. The Government, through the War Industries Board, estimated its requirements and made clearances for war purchases. But those actions really did no more than pave the way to control. They did not generally reach beyond the walls of the Government. They enabled a single agent of the Government to say what the war would require from all in- dustry and when. The so-called requirement and clearance controls simply opened a way, then, if there appeared a shortage, for the board to allocate the war orders to the trade, to curtail certain in- dustries and to conserve nonessential production. But these potent controls, it should be emphasized, all tied directly into the control over priorities, for by determining priorities, in a large way, the War Industries Board enforced them. It" seems doubtful whether any other control during the war, amid the confusion and conflict of orders within the Government and out, introduced a scheme so powerful in its effects toward sjaichronizing production and deliv- eries for war ends. cals : Plants engaged principally in printing newspapers or periodicals which are entered at the iXDst office as second-class mail matter. Paper and pulp : See pulp and paper. Periodicals : See newsjiapers and periodicals. Pulp and paper : Plants engaged exclusively in manufacturing same. Rope : See twine and rope. Soap : Plants engaged principally in manufacturing same. Surgical supplies : See drugs and medicines. Tanners : Plants engaged principally in tanning leather. Tanning : Plants engaged principally in manu- facturing tanning extracts. Textiles : Plants engaged principally in manufacturing cotton textiles, including spinning, weaving, and finishing. Textiles : Plants engaged principally in manufacturing woolen textiles, including spinners, top makers, and weavers. Textiles : Plants engaged principally in manufacturing cotton or woolen, knit goods. Textiles : Plants engaged principally in manufacturing textile machinery. Tobacco : Only for preserving, drying, curing, packing, and storing same — not manufacturing and marketing. Twine (binder) and rope : Plants engaged principally in manufacturing same. Woolen textiles : See textiles. GOVER]SrME]SrT COI^TROL, OVER PRICES. 229 This powerful scheme, permitting the Government at any moment to check the production of a less essential commodity for a more essential one, gave it an effective instrument to control prices. Priorities, of course, were not designed or ever issued specifically to " peg " prices. But, for all that, in a very real, though indirect, way they did affect prices to greater and lesser extents.^ Threats of a shortage in a basic material ordinarily provokes confusion and soaring prices, and opens the door to competitive bidding for priority. Those bid prices are made in war time with less regard to the actual cost of production than to the cost of purchasing priorities in pro- duction and delivery under an abnormal condition. But the priority policies announced to the country that it could not at any price purchase priorities either in production or deliveries. Priorities, it came to appreciate, were determined and controlled by the Govern- ment solely for war ends. While the priorities system was not an instrument for the fixing of prices, the stabilizing effects of priorities control upon prices were not less powerful because there is no way in which they can be measured. Allocations. All of the relations which allocation- bore to price control are covered in a study of the Government requirements, the clearance list, and priorities. The allocation of Government requirements, or clearances, meant simply their distribution to particular industries and firms for fulfilhnent. The requirements division, after clearing all of the prospective purchases of the Government, forwarded a record of those immediate needs to the proper commodity section chiefs. The commodity chief and his staff, after determining Avhether there was a shortage of the commodity required, either al- located the order or returned it without restriction. The Govern- ment department, from which the order asking for privilege to pur- chase had originally come, if there was no shortage, could buy its goods in the open market without restiftction. . But, where the com- modity section had found a shortage, the section itself allocated the order to various parts of the industry or firms before returning it. Allocation, obviously, was not a separately administered function of any division of the War Industries Board as were most of the other controls. It was really a principle of procedure, commonly followed by all of the commodity sections, designed properly to distribute the burden or fruit of certain Government orders. It pertained only to purchases of those commodities in which a shortage threatened. 1 Tie War Industries Board goes so far as to write into its final report that " war prices were liigh prices, bnt they were stabilized prices. The most effective organ of stabilization was the operation of the priorities system." 230 HISTORY OF PRICES DURING THE WAR. Curtailments. Curtailment was commonly administered by various units within the War Industries Board when an extremely serious shortage threatened. The production of certain less essential commodities was cut off or curtailed to make way for the production of allocated and other orders. The administration of priorities was one of the most effective instruments of curtailment, and the material for a study of curtailment falls largely in that chapter. The curtailment of all or any part of an industry, because much more sweeping and heartless than its conservation, was a program entered upon with far more caution. An Industrial Adjustment Committee, composed of repre- sentatives from the War Industries Board, the War Trade Board, the Food Administration, the Fuel Administration, the United States Shipping Board, the War Labor Policies Board, and the Treasury Department, was appointed upon the approval of the President to form a plan for the safe but systematic curtailment of nonessential industries. That committee, after permitting the industries affected a hearing, determined upon curtailment policies which would effect equitable reductions without killing the industry. The actual ad- ministration of all curtailment programs, as were those for conserva- tion, was put into the hands of the commodity sections of the War Industries Board. Conservation. The War Industries Board, after balancing roughly the Govern- ment and civilian demands against supplies, found, in the main, that the threatened shortages could be met adequately without absolute curtailment by so-called conservation programs. The conservation of a supply, as distinguished from cutting it off or curtailing it, meant simply spreading its use out thinner^ The board, under its conservation division,^ studied carefully the industries which were not strictly serving the war requirements and set itself to eliminate their wastes and turn their available materials to the best war uses. The purpose of conservation was, by means of substitution, conserva- tion or standardization to give the military, naval and shipping agencies of the war machine exactly what they required for full effectiveness. It was the business of the War Industries Board, with all war demands coming under its eye, to introduce schemes of effi- ciency for the proper coordination of supply and demand. ' The conservation division of the War Industries Board was created May 9, 1918, to carry on the work commenced on Mar. 24, 1917, by the commercial economy board under the Council of National Defense. The function of the new division, as outlined by the President in his letter of Mar. 4, was " the studious conservation of resources and facilities by means of scientific, Industrial, and commercial economies." GOVERKTMEISTT CONTROL OVER PRICES. 231 Conservation measures were effected, outside the Government and in, by the strictest cooperation with the industry through the various war-service committees and by technical advice and consultation with the Government war-making agencies. Those measures scarcely per- mit of a tangible analysis because of their number and their variety. Conservation, however, was generally effected by securing a maxi- mum reduction in the number of styles, varieties, sizes, colors, or finishes of the product ; eliminating the number of styles and varie- ties that took more than the amount of material strictly necessary (as, for example, restricting the length and sweep of overcoats) ; eliminating features or accessories which used materials for adorn- ment or convenience but wliich were not essential to the utility of the product ; eliminating patterns and types of products which were less essential to the civilian needs; substituting materials which were plentiful in the place of those which were not plentiful and were needed for the war program (for example, zinc was substituted for steel and other metals) ; discontinuing the use of certain materials for unnecessary purposes (such as caustic soda in the manufacture of automobile tires) ; standardizing sizes, lengths, widths, weights, thicknesses, and gauges of materials, parts and sections ; reducing the excessive waste of materials in manufacturing processes (such as chrome chemicals in certain branches of the leather-tanning indus- try) ; securing economy in samples used for selling products; secur- ing economy in containers by eliminating boxes or cartons which re- quired excessive shipping space (as, for example, eliminating small sizes of containers) ; securing economy in packing by increasing the number of units per package. Under this general scheme, the board made conservation rules applicable to various industries and, before putting them into effect, asked each industry for technical advice upon them. Once adopted, the enforcement of each conservation program was left for adminis- tration to the proper commodity chief. No adequate analysis can ever be made to cover in full the extent of saving which each of the conservation programs effected. A com- prehension in general of the more specific programs undertaken, however, is ^dtal because of its bearing upon price control. The programs, in each case, were addressed by necessity to the industries themselves through the War Industries Board, since there was no means of effective enforcement other than the enlistment of their cooperation. The more important of the programs were those in- tended to conserve materials within the agricultural implement, automobile tire, barrel goods, bedding, bicycle, book cloth, bottle, boys' clothing, camera, chain, chandelier, chinaware, clock, compo- sition roofing, corset, delivery service, electric appliance, fabric glove, felt shoe, furnace, furniture, gas range, hand stamp and mark- 232 HISTORY OF PRICES DURING THE WAR. ing device, hardware, harness and saddlery, hosiery and underwear, household wringer, leather glove, mackinaw, men's clothing, metal bedstead, motorcycle, moving-picture machine, office appliance, oil refining, oil storage tank and pump, oil stove and heater, optical goods, overall, paint, pencil, plumbing supply, radiator, railroad machinery, range, refrigerator, rubber clothing, rubber footwear, rubber goods, safe and vault, shoe, steel pen, steel pipe, stove, straw hat, sweater, talking machine, thread, tin, tin plate, traveling bag, trunk, typewriter ribbon, vacuum cleaner, vehicle, waist, washing machine, weather-strip, wholesale dry goods, wooden container, wool felt hat, and women's clothing industries. The conservation program, put well underway by the War In- dustries Board before the end of the war, was a big and compre- hensive one. It, like the priority program, had a very vital though a very intangible bearing upon the price level. The stabilizing effect of the one upon prices is as impossible to measure as the other. But the conservation schedules introduced into various industries, while generally of a less potent influence upon prices than the priority certificates, must be taken into account in an analysis of price control. Conservation, by turning materials into strictly essential industry and spreading their uses out thinner, helped to postpone the shortage point and stave off higher rises in price, Peices. The War Industries Board was not a price-fixing agency strictly speaking, but it did undertake a wide range of formal and informal price controls through agreements with the industry. The creation of the price-fixing committee in March, 1918, relieved the board proper of the further administration of virtually all its important price-fixing work, though it did afterwards exercise some price control. The peculiar relation of the War Industries Board and the price-fixing committee and the difficulties of separating clearly their controls make it advisable to divide the discussion of what these two organizations did in regulating prices. A statement of individual price regulations undertaken by the War Industries Board is, therefore, postponed until after the general discussion of the work of the price-fixing committee. 5. THE PRICE FIXING COMMITTEE. There was not, during the last seven months of war, any other agency of the Government at Washington so strictly giving its whole attention to the business of fixing prices as the price fixing committee. The , President had come to believe in the necessity of systematic methods of determining the great basic raw-material prices, and on March 4, 1918, wrote asking that price determination problems be transferred from the War Industries Board to a special, independent committee. That action came long after the Food Ad- ministration had assumed control over food prices, and the Fuel Ad- ministration control over fuel prices. It marked a clear break with earlier methods of price control, though not necessarily with earlier policies, and was the longest stride toward a somewhat organized price fixing that was taken. The new price fixing committee, created too late to formulate the initial price policies upon many of the basi« materials, grew week b}^ week, through revisions of earlier policies and the initiation of new controls, into a direct responsibility for the majority of all general fixed prices.^ To understand the committee's work it is necessary to know how the price fixing committee was organized, what basis of power it had to fix prices at all, the sphere of its ac- tivity within the Government, the character of price agreements en- tered into by it, the price policies which the committee worked out, and how it enforced its price regulations. (i) ORGANIZATION OF THE COMMITTEE. The price fixing committee, created under the authority of the President's letter to Mr. Bernard M. Baruch, dated March 4-, 1918, was made up of a chairman, a representative of the War Department, a representative of the Navy Department, a representative of the Fuel Administration, a representative of the Tariff Commission, a repre- sentative of the Federal Trade Commission, the labor representative of the War Industries Board, and the chairman of the War Industries Board ex officio. ^ This committee, appointed by the President, was 1 The first meeting of the price fixing committee was held in the War Industries Board on Mar. 14. 1918. 2 The organization in full of the price fixing committee at the time the armistice was signed was as follows : Rohert S. Brookings, chairman ; Bernard M. Baruch, chairman of the XVar Industries Board ex officio ; F. W. Taussig, chairman United States Tariff Commission ; W. B. Colver, chairman Federal Trade Commission ; H. A. Garfield, United States Fuel Administrator ; Hugh Frayne, labor representative of the War Industries Board ; Commander John M. Hancock, representing the Department of Navy ; Lieut. Col. Rohert H. Montgomery, representing the Department of War ; Henry C. Stuart, repre- fcenting the Department of Agriculture ; and W. W. Phelps, secretary. 233 234 HISTORY OF PRICES DURHSTG THE WAR. called together by the War Industries Board for its first meeting, and by them given its original general instruction.^ This quasi- judicial committee thereafter, whether in regular executive session or in conferences with the trade, sat at times almost continuously in the Council of National Defense Building. It is not precisel}^ accurate to say that the price fixing committee was either independent of the War Industries Board or that it was a subsidiary part of the board. Not to the very last were it and the board agreed concerning the place of the committee in the War In- dustries Board organization. The President, in reorganizing the board on March 4, 1918, had provided for the creation of a price- fixing committee in the same letter by which he outlined the func- tions of the board and appointed Mr. Bernard M. Baruch its chair- man. The board, after the appointment of the committee, formally marked out a set of policies for the committee, and its chairman called together the committee for their first meeting and told them their function. The chairman of the board, indeed, and another member were made members of the committee. The committee took over formally the fixing and revision of many prices already con- sidered by the board and worked hand in glove with it. The com- mittee announcements v^ere printed as from the price fixing com- mittee of the War Industries Board. But there was no real authority which the board held over the committee. The President in his letter specifically took price determination from the board and gave it to a separate committee, and he, inde- pendent of the board, named the members of the price fixing com- mittee. The committee considered itself responsible directly to the President and, irrespective of the board, made its reports to him.^ It was the President, not the board, who approA^ed all prices fixed and made them official. 1 Tho functions of the price fixing committee as determined by the War Industries Board, enilier that day, and delivered to the committee, were as follow;^: (1) To advise upon prices of basic materials; (2) from time to time to advise as to general price policies, acting in this way as a coordinating price body; (3) the committee will advise when requested by any department upon a specific contract, assuming, however, that no department will submit for advice those problems which it is organized and qualified to handle itself; and (4) when materials are commandeered prices of the same will be fixed by this committee. 2 Mr. Robert S. Brookings, chairman of the price fixing committee, in a conference held with the copper industry as late as July 2, 1918 (price fixing committee minutes for that day, p. 433), said: "The facts are, we represent the President absolutely. Our appointment, while we are a part of the War Industries Board, is absolutely separate and distinct ; we have absolutely separate and distinct obligations. * * * We sub- mit these things to him (President) for approval when they involve a change, or when there is anything to approve ; in fact, we go into detail sometimes more than I think he cares to have it, because we have reason to know that when it comes to exercising a far-reaching judgment, especially where it involves the Nation, he frequently has suggestions to make." GOVERNMEE'T CONTEOL OVER PRICES. 235 (2) THE BASIS OF POWER TO FIX PRICES. After what has already been said about the legal basis of the powers exercised by the War Industries Board at large, it will not be surprising to find that the legal basis of the price fixing committee's work was somewhat indefinite. This committee, though deter- mining a far wider range of prices than either, had only a fraction of legal power by comparison with its sister price-determining agencies, the Food Administration and the Fuel Administration. No specific statute could be quoted as its authority for deciding what prices should be. That fact, beyond doubt, somewhat circumscribed its method of price fixing, if not the extent, and made the committee fix prices almost altogether by agreements with the producers. The Theeats of Requisitioning and Commandeering. But, if there was no law to which the price fixing committee might turn for making its decrees effective, there were other less direct yet, in war time, equally powerful weapons. Foremost among these, as all producers knew, were the well-nigh absolute rights to requisition goods or place commandeering orders witli plants for supplies. True, neither of those powers was open to the Government for other than its own needs, but there could scarcely have been made a more satisfactory resort for war times. The latent power, given to the President by authority of the food control act and the national defense act, under which virtually all Government requisitioning and commandering were done respectively, enable the price fixing com- mittee in substance to tell producers : These are the prices to which the Government will agree; if you are willing to enter into a voluntary arrangement with us, you will be paid these prices for your goods, but if you refuse to do so, we will be compelled to ask the properly constituted authorities to commandeer your output or your plant and give you just compensation therefor as provided by statute/ The food control act (H. R. 4961, Public No. 41), approved August 10, 1917, was the law which authorized the requisitioning of certain existing properties for the support either of the Army, Navy, or any other public use. It provided in section 10 : That the President is authorized, from time to time, to requisition foods, feeds, fuels, and other supplies necessary to the support of the Army or the maintenance of the Navy, or any other public use connected with the common defense, and to requisition, or otherwise provide, storage facilities for such supplies ; and he shall ascertain and pay a just compensation therefor. This act, which was really the basis for all Government requisition- ing of subsistence supplies for the Army during the war, pertained ^The legal section of the War Industries Board on June 11, 1918, prepared a memo- randum In which it concluded that a threat to commandeer expressed in the above form, and made to enforce the fixing of a certain price does not constitute duress. 236 HISTORY OF PRICES DURIiSTG THE WAR. only to foods, feeds, and fuel and was not, therefore, of so niucli value to the price fixing committee as the national defense act. The national defense act (H. R. 12766, Public No. 85), approved June 3, 1916, authorized the Secretary of War to determine reason- able prices for military supplies and, upon failure of compliance, gave the President power to take over any plant. This act, which was the one giving authority for the commandeering of output, made it possible to place with any manufacturing establishment a compul- sory order for the production of any manufacture usually produced by the firm. The Government could,, thus, by the payment of a just compensation, require or commandeer the whole output of a plant and itself determine the price to be paid for everything taken under com- pulsory order. This possibility, in so far as the price fixing committee had a legal weapon, was the most formidable weapon the committee had for compelling acceptance of its price determinations.^ It should be mentioned, too, that, aside from these direct threats to requisition or commandeer, the committee had effective weapons ^ A brief digest of the main acts, including tlie two above, under whicb requisitioning of goods miglit be accomplished or commandeering orders issued to plants, follows : 1. Public il. Sixty- fifth Congress^ section 10. — The food control act authorizes the President to requisition foods, feeds, fuels, and other supplies necessary to the support of the Army or the maintenance of the Navy or any other public use connected with the common defense. 2. Public 85, Siorty-fourth Congress, section 120. — The national defense act provides for the placing of orders with any concern for such product or material as may be re- quired, and which is of the nature and kind usually produced, or capable of being pro- duced, by such concern. In the event of a refusal so to produce, the plant of such concern may itself be taken over by the Government. 3. PiMic 391, Sixty-fourth Congress, pages 28-29. — The naval appropriations act authorizes the President to place an order with any person for ships or war material if such ships or material are of the nature, kind, and quantity usually produced or capable of being produced by such person. Upon refusal, here, also, the plant may be taken over. Under this act " war material " is made to include arins, armament, am- munition, stores, supplies, and equipment for ships and airplanes, and everything re- quired for or in connection with the production thereof. Another paragraph provides for the modification or cancellation of any existing contract for the building, production, or purchase of ships or war material. It is further provided that the owner or occupier of any factory in which ships or war material are built or produced shall place at the disposal of the United States, if required, the whole or any part of the output of such factory. Finally, the Government may requisition any factory or part thereof. It Is open to argument whether the authority here granted should have terminated on March 1, 1918, no decisive ruling on the point having been made. i. Public 23, Sixty-fifth Congress. — The so-called emergency shipping fund allows the placing of an order with any person for such ships or material as the necessities of the Government, to be determined by the President, may require during the period of the war and which are of the nature, kind, and quantity usually produced or capable of being produced by such person. Also, power is given to requisition ships or parts thereof. Requisitioning under the ^oar poiver. — Finally, with regard to the power to requisition, some mention should be made of the war power. The President, as Commander in Chief of the Army and Navy, has undoubtedly a vast field over which he may exercise his control without legislation. Under this head he has a right to take private property for public use upon payment of just compensation, even if such taking is not authorized specifically by Congress. Just how far this right extends it is hard to tell, inasmuch as presidential action would depend on the nature of a given emergency. It is important to make mention of it merely because of the right to requisition which is thus in the hands of the Executive. GOVEEN^MENT COiSTTEOL OVER PRICES. 237 for fixing prices in its influence with tlie Eailroad x^dministration, the Priorities Committee, the Fuel Administration, the War Trade Board, and the Food Administration. These bodies, each in control of a basic material or service, could be persuaded to withhold trans- portation, license, fuel, supplies, or priority to enforce price agree- ments demanded by the committee. The Wae-Time Spirit. It made really little difference, while the country was united to achieve a national ideal, that the price fixing committee had a somewhat indefinite statutory authority. For the legal powers of the price fixing committee, applicable at best only to articles needed for the use of the Government, were of much less prac- tical consequence than public opinion and patriotic spirit. The universal feeling of support to public actions taken for a war pur- pose was the most potent of all powers behind the price fixing com- mittee. The prices in all cases were reached in conferences by agree- ments with the trade. It is beside the point to inquire whether so slight an authority would suffice for peace-time regulation. No better word can be said for the efficacy of the war-time spirit for enforcing price agreements, despite the lack of law, than that no occasion ever arose for putting to a test the nature or extent of its legal authority.^ (3) ITS SPHERE OF ACTIVITY. The sphere of activity peculiar to the price fixing committee, and its distinction from the Food and Fuel Administrations require ex- planation. Obviously, these latter agencies controlled foods, feeds, and fuels, and left the price fixing committee to determine prices, if necessary, over the whole remaining lot of materials needed for war. But there are other differences less apparent and more important. The price fixing committee, unlike these two administrations, was not a huge institution responsible upon its own initiative to keep con- sumers' prices stable and send its administrators into every town and city to that end. It was a very small quasi-judicial committee, acting only upon request of a war agency. It sat primarily to hear evidence and determine fair prices for Government purchases, and was con- cerned almost altogether with producers' prices. Committee Coxceexed Peimakily with Goveenment Pitechases. One of the features of the control exercised by the price fixing committee, which differentiates it sharply from the food and fuel 1 '■ I'riue-Fixing as seen l5y a Price-Fixer," by P. W. Taussig, Quarterly Journal of Economics, February, 1919. 238 HISTORY OF PRICES DURIN^G THE WAR. controls, was that it was concerned primarily with stabilizing tne market for Government purchases. The Food Administration and the Fuel Administration, each with thousands of representatives and an enormous administrative machinery, undertook as their primar}'^ concern the stabilization of prices for the public. Their control, de- signed to cover the whole gamut of food and fuel prices from the big producer to the country retailer, required them, within a much nar- rower field of activity, to consider greater numbers of problems. But the price fixing committee, with its wider range of controls, and a more highly technical problem, began with the purpose simply to protect the Government. It came but gradually to concern itself with the protection of the public.^ The price fixing committee, to the end that it might protect the Government in making purchases, was organized to include repre- sentatives of the Army and Navy, who could keep it informed of contemplated purchases and price problems which arose in connec- tion with them; representatives of the War Industries Board, who personally were familiar with the available raw materials in various industries and the supply of labor ; a representative of the Fuel Ad- ministration, through whom control over fuel for manufacturers could be held; and representatives of the Tariff and Federal Trade Commissions, who could supply technical data tending to show how prices would affect production. It was not until toward the last that a representative of the agricultural interests was appointed, and never was it attempted to give the purchasing public, retail trade, or wholesale trade special representation directly in the committee.^ The Committee Fixed Prices Only Upon Request. As already said, the price fixing committee did not deem it a part of its function, as ,did both the Food and Fuel Administrations, to make and keep strict watch over prices in which the Government itself had no direct concern. The committee, even if inclined to exceed its primary resi^onsibility to protect the Government, had no staff adequate to maintain control over the price level in a larger way. It did not ask for itself any considerable powers of initiating 1 A statement of this policy is made by a member of the price fixing committee, F. W. Taussig, in the Quarterly Journal of Economics for February, 1919, as follows: "The action of the committee in every case had its origin in the circumstance that Govern- ment purchases were on a great scale and threatened to disturb market prices. The ex- tension of the function of the committee to the regulation of prices for the public was, if not an afterthought, at all events not among the things contemplated at the start. The committee stepped in when Government purchases threatened to upset the market, but soon found itself compelled to protect the public also." 2 Mr. Robert S. Brookings, in an early conference of the committee with the trade (minutes of the price fixing committee, Book II, Apr. 3 to Apr. 24, p. 29), said frankly : " When we fix prices for the Govei-nment we have no difficulty, but when we fix prices for the public there is always difficulty." GOVERlSrMElsrT CONTROL OVER PRICES. 239 price control.^ Yet,, the necessities of the case gradually forced the committee to take a broader view of the whole price situation. Fixed Pkodtjcee Prices. The sphere of activity of the price fixing committee is especially well defined with respect to the kinds of prices which it undertook to fix. There is a vast difference in the complexity of problems arising in the fixing of prices for the producer and in fixing those for the retailer, or in fixing those for the wholesaler, distributor, and middleman of all sorts in between. The committee, happil}^, was not obliged, in the main, to deal with other than the prices at which the producer should sell his materials. The Government usually bought in large quantities direct from the primary source of supply. If the committee, as the war went on, had gone further in the direc- tion of protecting the public, it is doubtful whether they would have found it sufficient to fix prices at the primary distributing points. That scheme, though highly extended by the requirement of a like price for the Allies and public, gave no real protection from high retail prices to the consumer. In n© other respect was the sphere of activity of the price fixing committee so narrow as in the stage at which transactions were controlled. ^ (4) THE CHARACTER OF THE PRICE-FIXING AGREEMENTS. The price-fixing committee, in the strict sense of the term, fixed no prices. A perusal of the various terms of the so-called fixed-prico announcements and the minutes of the meetings of the committee shows clearly that the prices fixed represented simply agreements entered into with the industry by the committee. The Method of Making the Agreements. The price-fixing committee, in part as a measure of expediency and in part because of lack of authority, undertook generally to arrive at a fair price by series of conferences with the trade, rather than through any more high-handed or independent method. A leading member of the committee, Dr. F. W. Taussig, goes so far as to say that — the prices fixed were in all cases reached by agreement with the representatives of the several industries. In strictness they were agreed prices rather than ^Mr. Robert S. Brookings, chairman of the price fixing committee, when asked by certain private interests to fix the price of wool on Apr. 19, 1918, said (p. 63 of minutes of price fixing committee for a conference upon that day), that the price fixing committee "do not feel that it is any part of our function to take initiative; at least we have not," and, when pressed to say whether a price would or would not be fixed on wool he said: "You might ask the Pi-esident. He is the only man who has any authority to say yes or no on anything. We have nothing to do with it." 2 An interesting comment is made upon this point by F. W. Taussig in the article referred to previously. 240 HISTORY OF PRICES DURING THE WAR. lixed prices. Tlie agreements were usually reached in cordial cooperation with the producers concerned, and thus were in reality voluntary. There were cases, however, in wliicli they were agreements only in name. The representatives of some industries, though they accepted tliem, did so virtually under duress. In these cases the committee to all intents and purposes decreed prices and was enabled to impose them, under the form of agreement, by a more or less veiled threat of commandeering, and also by the certainty that public opinion would condemn those Avho failed to accede. It was the custom of the committee, once it seemed likely that the necessity for fixing a price had arisen, to call the representatives of the industry to Washington for conference. The committee, after itself going over cost figures prepared for it by the Federal Trade Commission, talked freely with the trade the situation at hand, heard the trade viewpoint, and finally, with them, arrived at a price mutually satisfactory. It was the practice usually on important matters to allow the trade to retire for confidential discussion between members. Similarly the committee usually went into executive session before finally announcing the price agreed upon and reviewing the facts of the agreement. The committee, after dismissing the rep- resentatives of the industry, usually submitted the price fixed to the President for his approval and public announcement. All Prices Were Maximum Prices. It was characteristic of the prices fixed by the price-fixing com- mittee, if indeed not of all prices fixed in this country during the war save those for wheat, pork, and hemp, that no more rigid control was attempted than the fixing of a maximum price. The committee really set limits above which the so-called fixed prices might not rise, but left them to play freely below those points. This distinc- tion, though precisely accurate, is of more importance in theory than in practice, because usually the maximum prices became the actual prices and operated, in the main, as fixed prices.^ The various Gov- ernment departments (the Department of War, the Department of Navy, the United States Shipping Board Emergency Fleet Corpora- tion, and the Railroad Administration) were usually guided in their purchases by the fixed maximum prices and paid them without more ado. Fixed Prices Applicable Alike to Low and High Cost Producer. The prices fixed by the price fixing committee were made ap- plicable alike to sales made by low-cost and high-cost producers. That practice, of course, put decided advantages into the hands of many larger manufacturers and producers who turned out enormous ''The Instances in which the market sank helow the fixed prices, as it did with zinc and lumher, are relatively few. The committee, when such a circumstance occxirred, simply reduced the fixed maximum price to a lower level. GOVER]SrMEIS"T COI^TROL OVER PRICES. 241 quantities of product at relatively low figures and handicapped, in a sense, the smaller high-cost producers. It gave rise to no end of discussion among economists within and outside the Government during war, but no departure from this simple measure of setting a single price for all was ever adopted.^ The price fixing committee, in a very rough way, attempted to fix a flat price at a point which would, starting from the lowest-cost producer, take in enough of the higher-cost producers to bring out in quantity the approximate production required. It is estimated by Dr. Taussig that the price usually was fixed which would secure four-fifths or nine-tenths of the entire output. When reminded that the inevitable corollary of that procedure was that many low-cost producers would reap large profits, the price fixing committee pointed in answer to the excess profits tax. The chairman of the price fixing committee freely said that what the Government did not get from the low-cost producer through price fixing, it would get in another form through taxation.^ The price fixing committee then sttick throughout to its policy of fixing a flat rate for all producers whether having low or high costs. Fixed Peices Applicable Alike to Government, Allied and Public Purchases. Long before the work of the price fixing committee was under way, the President in no unmistakable terms had mapped out the policy that "prices mean the same everywhere" and "we must make the prices to the public the same as the prices to the Government." ^ Not a month after the President had determined upon this broad policy, the War Industries Board, in keeping with it, declared that " our Allies shall be charged no more than our own Government has to 1 A fuller discussion of this problem, from a slightly different standpoint, may be found in a later section, discussing the basesi for determining upon what price to fix. 2 At an executive session, of the price fixing committee, held July 8, 1918, a dis- cussion took place to determine to what extent, if any, the excess profits tax should be considered in the fixing of prices. Mr. Brookings submitted a memorandum stating that the price fixing committee was created to stabilize values and prevent extortionately high prices. It was not intended, however, unnecessarily to depress values to a point AA'here there would be little or no excess profits tax. The policy of the committee should be, he believed, so to shape prices that the less efficient or small producer would receive a fair profit, even though that gave the larger and more efficient producer a very liberal profit. It was expected that the new excess profits tax would equalize this discrepancy by taking a larger proportion of the.^liberal profits earned. In connection with this sub- ject, the probable effects of the new excessi profits tax were then discussed, and the chairman was requested to call Mr. Kitchin's attention to the probable influence on production of a very high percentage tax. ^ An address to the mine operators and manufacturers made by the President, July 12, 1917. 125547°— 20 16 242 HISTOKY OF PRICES DURING THE WAR. pay." ^ There are instances of prices fixed for the Government alone, prices fixed for single branches of the Government only, and for allied purchases only. But, b}^ and large, the prices fixed by the price fix- ing committee were applicable alike to the Government, Allies,^ and the public. (5) THE PRICE POLICIES OF THE COMMITTEE. A search through the voluminous minutes of the price fixing com- mittee for their great underlying policies would yield few quotable passages. A statement of policy here may be implicitly contradicted by another statement there. In the record of most cases, indeed there is no mention of any underlying policy whatever. There is a striking difference in this respect, between the determi- nations of the price fixing committee and the Food Administration, though it is perhaps more apparent than real. The former seldom and the latter usually talks about policies, as might be expected from an analysis of the two kinds of control. One would get as far, perhaps, if he accepted literally the statement of Chairman Brook- ings of the price fixing committee that " we have nothing to say about our own polic}^, we may change it to-morrow,"^ or that of another member, Dr. Taussig, that " a frankly opportunist policy alone was possible." ^ But the price fixing committee, though operating with- out any deep controlling policies, had in mind certain broad aims which throw some light upon their actions. It is noteworthy that Mr. Baruch, in calling the committee together for organization, impressed it with a responsibility to guard against " runaway markets " and, too, with the necessity for fixing prices at ^ This policy was announced by the War Industries Board, Aug. 8, 1917, with but two limitations : That the Allies must henceforth apply the same principle in dealing with their own producers and in selling to us and in selling to each other ; and that the arrangement must be limited to war materials. 2 The price fixing committee information book, recording a meeting of Aug. 27, 1918, defines its application of fixed prices to allied purchases by the following resolution : " Be it resolved. That where prices are stated to be fixed for the United States Govern- ment, the governments associated with it in this war, and the public (or primary civilian sales) the said prices are hereby declared to extend to the Government and civilians of the United States (including civilians of its Territories and insular posses- sions), and to the following Governments, i. e.. Great Britain, France, Italy, Belgium, and Japan ; "And 6e it further resolved. That these maximum prices shall not extend to purchases made by the civilians of the above-mentioned allied nations nor to the Governments or civilians of nations other than those above enumerated." 2 Minute Book of the Price Fixing Committee, Book 2, Apr. 19, p. 63. * Dr. Taussig, in his article referred to above, goes on to say : The price fixing com- mittee, whose wide range of operations might make its doings of most general interest to economists, was slowest in developing a general policy ; and this probably for the very reason that its scope was wide, its principles of action little prescribed by any legisla- tive or administrative instructions. There was no more than a gradual and tentative approach to any principle of action whatever. This restraint was as wise as that of a court of law which refuses to commit itself on any questions of principle not es- sential to tJie case in hand. Had the war continued, and had the regulation of industry lasted longer and extended farther, all sorts of new situations and new problems would have arisen, for whose wise disposal no rule could be laid down in advance. GOVERISTMENT CONTKOL OVER PRICES. 243 a point where they would stimulate production.^ He then delivered to them a plan whi'CfTthe War Industries Board, earlier that day, had set down for the committee to follow in its deliberations but which marked out no single general policy.^ The committee, after being called together, plunged at once into the task before them and began to discuss the fixing of a price for Oregon and Washington fir without laying out for themselves any general principles. It does not appear that the price fixing committee undertook formally to set down for its own guidance any general lines of policy or functions until an executive meeting held July 8, 1918, when Chairman Brookings got approval for the following statement: First. Where the different purchasing departments of tlie Government re- quire so large a proportion of any commodity as to produce such scarcity of said commodity as to require price control with a view of avoiding a runaway market, the price fixing committee is expected by conference with the said manufacturers of said commodity to stabilize prices by agreement. Failing to agree, the price fixing committee will fix a price and enforce same through some purchasing department of the Government, using to that end not only the va- rious purchasing enabling acts, but such indirect pressure as priority in fuel, transportation, etc., will permit. Second. Where a scarcity is produced in part or in whole by limitation of imports, it is the Government's duty through the price fixing committee, and a system of import licenses under control of the War Trade Board, to see that control is secured of said importations through an option reserved in the im- port licenses so as to prevent a runaway market in said imported commodity. While prices as above outlined may only be arranged for the Government and those associated with us in the war, they, as a rule, are made for the public as well, and where made for the public, the price paid both by the public and the Government is made the same, and, while it is the custom to make maxi- mum prices only, it is generally understood that unless there is a larger supply than the demand, the maximum prices will by necessity also become the mini- mum price, and the purchasing departments of the Government are usually expected to pay this price. Third. While the different purchasing departments of the Government are expected to fix prices on their current purchases where there are no special problems involving a lack of supply, the price fixing committee may, on appli- cation, solve any special price-fixing problems, the nature of which would seem to require its .iurisdiction, and which are in scale with the time involved. 1 Minutes of the price fixing committee for Mar. 14, 1918. 2 The Council of National Defense, in its announcement of the creation of a price fixing' committee made Mar. 19, 1918, gave at least the following pertinent statement relative to the aim of the committee : The object of the price fixing committee is two- fold : First, it will be a separate body, quasi judicial in nature, for the purpose implied in its name, and it will serve this purpose through being made up of men separated so completely from industrial interests that their motives and actions in the determination of prices can be subject to no suspicion of mercenai-y interest. Prices will not be made until after costs have been passed upon by the Federal Trade Commission. With costs as a basis, the price fixing committee will then consider problems of production and distribution before arriving at its decisions. The second object to be achieved by the price fixing committee is speed. The com- mittee will sit all the time and will thus eliminate unnecessary delay caused by the con- sideration of price fixing problems in several different quarters. 244 HISTORY OF PRICES DURIISTG THE WAR, Perhaps there 'was no single aim more desired by the price fixing committee than that brought out succinctly by its Army member, Lieut. Col. Robert H. Montgomery, " to stimulate production by one way or another." That policy was always uppermost in the minds of the committee. (6) ADMINISTERING COMMITTEE DECISIONS. The price fixing committee, quite without administrative ma- chinery, left the task of administering controls designated by it and the enforcing of fixed base prices or differentials entirely with the commodity chiefs of the War Industries Board. The commodity chiefs, familiar with the technical problems of the various trades and in touch with the hundreds of war service committees, were in a peculiarly favorable position to enlist a full cooperation from the industry. (7) THE COMMODITIES FIXED IN PRICE BY THE WAR INDUSTRIES BOARD AND THE PRICE FIXING COMMITTEE. It is scarcely feasible to consider separately the commodities fixed in price by the War Industries Board and the price fixing committee, though note should alwaj^s be made of the special phases of any regulation which each contributed. The controls undertaken by the War Industries Board between September, 1917, and March, 1918, and then transferred to the price fixing committee concerned copper, iron and steel, cement, yellow pine, Douglas fir, zinc, alumi- num, hemlock. North Carolina pine, and spruce. The controls initi- ated by the price fixing committee between March 14 and the close of war concerned hides and skins, wool, munition linters, harness leather, sulphuric acid, nitric acid, cotton textiles, cotton linters, sand and gravel, manila fiber, building tile, sole and belting leather, rags, wool grease, compressing rates for cotton, brick, millwork, and gyp- sum wall board. The informal controls exercised by the War In- dustries Board itself independently of the price fixing committee concerned lead, wood chemicals, nitrate of soda, alkalis, nickel, quick- silver, platinum, manganese ore, and burlap. There follows a discussion of the most important of these controls under the following main commodity headings in the order named : Iron and steel, and their products; copper; aluminum; lead; zinc; nickel; quicksilver; platinum; cotton textiles; cotton linters wool; hides, skins and leather; manila fiber and hemp; burlap; lumber; building materials ; and chemicals. Ieon and Steel and their Peoducts. There is scarcely an experience with jorice-fixing, throughout our whole war period, which is more striking or more important than GOVERNMENT CONTROL OVER PRICES. 245 that with the iron and steel family.^ Regulation was invoked within our first six months of war to rescue iron and steel prices from a runaway market. The extraordinary demands of the Allies for war-making steel, and the sudden potential demands of the American Government, combined to squeeze short the civilian supply and start prices skyward. Prices did, in point of fact, attain a peak in July, . 1917, without precedent in the epochal year 1899, or in earlier iron and steel history. The Government and everyone saw then a need to do something, and they began considering how best to make the market stable. An analysis of price control within the iron and steel group, then, entails a comprehension of the runaway market in 1917; the dis- position to control iron and steel prices reached both by the Govern- ment and the industry ; the kinds of problems facing the Government in assuming control ; the raw -material prices fixed on September 24, 1917; the semifinished-product prices fixed on October 11, 1917; the finished-product prices fixed on November 5, 1917; and the deter- mination of differentials upon these basic prices. The rvmaioay steel market in 1917. — A careful study of the war- time prices of the basic raw materials of the iron and steel industry (iron ore, coke, pig iron, scrap steel, steel billets, steel bars, steel shapes, steel plates, steel rails, steel spikes, steel skelp, rivets, cast- iron pipe, steel hoops, steel sheets, tinplate, wire rods, and wire fence), and especially of those most used in making war, shows clearly that iron and steel prices held steadily below their prewar level for a full year after Europe started war. The market then, however, became sensitive and prices, in the main, began soaring. The open market price of Connellsville coke, for example, which is a principal factor in the price of pig iron, jumped from $1.67 per ton in September, 1915, to $12.25 in July, 1917, with but two set- backs. The price of basic pig iron itself began rising in June, 1915, vv-hen it was selling for $12.59 per ton, and climbed steadily to $52.50 per ton in July, 1917. Bessemer steel billets jumped in a straight line from $19.50 per ton in May, 1915, to $95 per ton during June and July, 1917. Structural steel shapes rose from 0.012 per pound in December, 1914, to 0.062 per pound in July, 1917. Steel tank plates shot from $1.22 per hundredweight in July, 1915, to $9 per hundred- weight in July, 1917.2 But even these phenomenal rises are less impressive than the index number constructed to reflect a grand average of the whole steel market. An index number for the iron and steel group, includ- 1 The control of iron and steel, and their products was begun, and put well under way, hy the War Industries Board before the creation of the price fixing committee in March, 1918. The whole subject is treated here, however, for the sake of continuity. 2 Quotations from Iron Age of open market prices. The contract prices, which are not available, of course underwent less violent fluctuations. 246 HISTORY OF PRICES DURING THE WAR. ing 88 leading iron and steel prices and weighted to assign each commodity its due influence upon the final average, has been pre- pared to measure the general trend of iron and steel prices away from their prewar level, from January, 1913, to December, 1918, For later reference this index number is here shown for the months subsequent to the i)eak point in July, 1917, as well as before.^ WEIGHTED INDEX NUMBERS OF PRICES. IKON, STEEL, AND THEIR PRODUCTS AND " ALL COMMODITIES." Month. 1913 1914 1915 1916 1917 121 95 89 138 235 120 98 90 143 238 119 97 90 160 254 116 96 91 164 274 115 93 92 161 294 113 92 93 162 344 112 92 97 164 370 111 93 103 168 346 108 95 108 170 310 104 92 111 175 243 98 90 117 202 218 96 89 131 221 217 120 97 90 145 242 114 94 92 162 306 110 93 103 167 342 99 90 119 198 226 111 93 101 168 279 103 100 100 115 148 102 100 100 118 151 102 99 100 121 156 101 98 100 123 170 100 97 100 123 178 100 97 100 122 183 100 97 102 123 189 101 101 102 125 187 102 101 102 127 186 102 99 104 132 183 102 98 107 141 183 101 98 111 144 182 102 100 100 118 152 100 97 100 123 177 101 100 102 125 187 102 98 107 139 182 101 99 102 126 175 1918 Iron and steel and their products: January February March April. May Jime July August . September October November December Quarters- First Second Third Fourth Years "All commodities". January February March. . '. Apnl May June . July August September October November , December , Quarters: First Second Third Fourth Years 218 218 218 217 217 218 218 219 219 222 222 217 218 217 219 220 218 185 187 188 191 190 189 193 196 201 201 201 203 187 190 197 202 194 ^ The index number for iron and steel prices is made of the monthly averages from January, 1913, to December, 1918, of 88 separate and more important commodities, ranging from the raw material to finished product state, which make up the iron and steel group. In order not to allow extraordinary rises within less important com- modities an undue influence upon the index number, each commodity was weighted, hy multiplying each of its monthly prices, by the amount produced in 1917 plus the imports for that year. The aggregates thus found were then turned into relative prices on a prewar base, by accepting arbitrarily as 100 the average aggregate from July, 1913, to June 30, 1914. The index number includes the following commodities of one or more series : Iron ore, coke, pig iron, steel scrap, steel billets, steel bars, iron bars, steel shapes, steel plates, steel rails, steel spikes, rivets, steel skelp, cast-iron pipe, steel hoops, steel sheets, tinplate, wire rod, wire fence, adzes, anvils, augers, axes, braces, butts, calks, chain, chisels, cutlery, files, gimlets, hammers, hinges, hods, hooks, hooks and eyes, knobs, locks, lock sets, nails, pans, pails, planes, punches, rasps, rings and ringers, saws, screws, shaves, shoes, shovels, spoons, springs, staples, swages, tongs, traps, trowels, trucks, turns, vises, washers, wedges, wheelbarrows, wire. See " Prices of iron, steel, and their products," by Walter W. Stewart (War Indu'stries! Board Price Bulletin No. 33). GOVBRNMEN'T COlsTTROL OVER PRICES. 247 The iron and steel market, according to these comprehensive figures remained safely below its prewar level for a year after war broke out in Europe. It then mounted steadily, without a single note- worthy setback, to the historic peak attained for steel prices in July, 1917, at 270 per cent above the prewar level. That rise was out of all bounds with the point reached by the " all commodities " index number for the same month at 89 per cent above its prewar level.^ Iron and steel prices, by midsummer of 1917, when the Government began seriously to lay its hand upon them, were literally running away. The disposition to control iron and steel prices. — The runaway steel market, coming just at a time when the Government was beginning to anticipate extraordi- nary requirements of steel for war- making purposes, gave alarm to the President, the Congress, and the more sober element of the steel industry. It became obvious that the Government, in order to as- sure itself and the Allies steel at reasonable prices, would need to take a more radical action than had previously been determined upon.^ The policy of the President and his war ojficidls. — The determined stand made by the President upon price control, in the official state- ment of July 12, 1917, came just at the time when steel was at its highest point, and affected generally the disposition toward exces- sive profit taking. It, therefore, hastened steel control. The Presi- Weighted index numbers of prices. — Iron and steel ; and "All Commodities." — By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) iThe "all commodities" index number, weighted in the same way, represents 1,366 individual commodities within the food, clothing, rubber, paper, fiber, metals, fuels, build- ing materials, and chemicals groups. (See " History of Prices during the War, Sum- mary," by Wesley C. Mitchell, War Industries Board Price Bulletin No. 1.) 2 A special board, appointed by the Secretary of War " for the purpose of investigating and reporting upon the feasibility, desirability, and practicability of the Government manufacturing arms, munitions, and equipment," made public their conclusion Jan. 9, 1917, advising a reliance upon private industry. 248 HISTORY OF PRICES DURING THE WAR. dent declared unqualifiedly for a " just price " and declared that those — who do not respond in the spirit of those who have gone to give tlieir lives i'or us on bloody fields far away, may safely be left to be dealt with by opinion and the law, for the law must of course command these things. The President added succinctly that — the Government is about to attempt to determine the prices at which it will ask you henceforth to furnish various supplies which are necessary for the prosecu- tion of the war and various materials which will be needed in the industries by which the war must be sustained. We shall of course try to determine them justly and to the best advantage of the nation as a whole. It is pertinent that the President, in making his statement, gave assurance that the industries would be sustained at a point of ade- quate production. There followed in rapid succession an expression of viev^s regard- ing price control of iron and steel by various high officials. The Secretary of the Navy said : There is no justification for a tremendous increase In the cost of basic ma- terials. The Almighty put these things in the ground, and the only additional cost over normal times is in getting them out. Under the law the President is authorized to fix a reasonable price for what is needed for the Government. There is no disposition whatever to cause any hardship to the producers. We are perfectly ^^illing and intend to pay them a fair, even a liberal profit, but we will not pay exorbitant prices, such as are being quoted in some instances. The Secretary of War, after a conference with steel manufacturers about the middle of July, 1917, declared for a control of iron and steel which would " insure reasonable profits " and determined upon " with reference to the needs of this vital and fundamental industry." The chairman of the Shipping Board was reported to say that in case the steel producers refused to accept the prices fixed on the basis of the proposed cost investigation by the Federal Trade Commis- sion, he favored the commandeering of all steel plants. The chair- man of the Senate Committee on Interstate Commerce, whose com- mittee had been charged to inquire into the high prices of certain materials, said that — it had been demonstrated that competition was powerless to keep the prices of the basic materials at the normal level ; that the result of the law of supply and demand had been that an enormous demand had been precipitated upon a lim- ited supply, and thus there was no limit to which the prices might soar. Meantime a controversy over the prices to be paid by the Gov- ernment for structural shapes and steel plates arose between the chairman of the United States Shipping Board and the manager of the Emergency Fleet Corporation, which residted in a request by the President that the Federal Trade Commission inquire into the GOVERNMEisrT co:n-tiiol over prices. 249 costs of producing steel. The manager of the Emergency Fleet Corporation announced on June 16, 1917, that he had agreed pro- visionally upon a price of 3.75 cents per pound for shapes and 4.25 cents per pound for plates, with the understanding that the com- mittee on raw materials, minerals, and metals of the Council of National Defense would later go into the question of costs and determine an equitable return to the steel men. The chairman of the Shipping Board, on the other hand, declared that these provisional prices were $30 a ton higher than prices which the Navy Depart- ment was paying for the same material, and that he, therefore, would sign no contracts at those figures. The steel makers agreed finally to furnish steel plates at a tentative price of 2.50 cents per pound, pending the determination of a final price. Controversies of this sort, to say nothing of other official opinion as indicated above, were potent factors in persuading the President and the Government to control iron and steel prices. The PoTwerene hill in Congress. — The concern within the Govern- ment over the steel situation was not confined alone to the President and his war officials. The Congress, too, became uneasy, and while the rampant steel market was on. Senator Pomerene of Ohio introduced a bill providing for Government control over iron and steel prices. The bill was designed to afford the President the same power over the prices and distribution of iron ore, pig iron, steel, and their products as the food and fuel act (Lever bill) had given him over foods, feeds, and fuel. It should be said that the bill, in some respects, contemplated even further control than that given in the food and fuel act. The bill went so far as to provide that the President should have power, whenever in his judgment it became necessary — for the efficient prosecution of the war and for the purposes aforesaid, to fix the price of iron ore, iron, steel, and their products wherever and whenever sold, either by producer or dealer, to establish rviles for the regulation of and to regulate the method of production, sale, shipment, distribution, apportion- ment, or storage thereof among dealers and consuiifers, domestic or foreign.^ It is noteworthy that the Pomerene bill made the Federal Trade Commission, rather than the Council of National Defense, the agency for exercising the presidential authority over iron and steel prices and gave it an abundance of power to investigate costs. The Pomerene bill, quite aside from these drastic provisions, gave the President a commandeering power which struck fear in the 1 A full account of the provisions of the Pomerene Mil is given in the Iron Age for Aug. 16, 1917 ; that for Aug. 30, 1917 ; and an especially illuminating account of the hearing on the bill held Sept. 21, 1917, by the Senate Committee on Interstate Commerce, is found in the Iron Age for Sept. 27, 1917. 250 HISTORY OF PRICES DURING THE WAR. minds of many producers. The President was authorized, when- ever any producer or dealer failed to conform to his stipulated regulations — to requisition and take over the plant, business, and all appurtenances thereof belonging to such producer or dealer as a going concern, and to operate or cause the same to be operated in such manner and through such agency as he may direct. The discussion in the Congress of this bill, though it was never made law, aroused the legislators quite as much to the need of iron and steel control as the experience of the Executive and his Cabi- net had aroused them. The attitude oj the iron mid steel industry. — It is not the least significant of the factors which brought on control of iron and steel prices, that the industry itself came to recognize the need for and to desire control. It is not easy to trace the conversion of the iron and steel trade to an appreciation of the need for Government inter- ference, so gradually did it come. But by midsummer of 1917 the more conservative factions of the steel industry saw only peril ahead unless the Government brought stabilization to the market. By late September virtually the whole industry was disposed to recom- mend that a formal regulation begin. No doubt an influence of consequence in changing the attitude of the steel men toward control was their knowledge that the Govern- ment was determined upon it. The Iron Age, a leading journal of the industry, foretold Government regulation in its feature edi- torial as early as June 28, 1917, although it then looked a bit askance at the prospect. It said in part : Predictions are becoming more and more common that it will become neces- sary for the Government to regulate prices in the steel industry. The pro- posal is glibly made, but it involves serious and far-reaching consequences. * * * It is difficult to see how the fixing of maximum prices for this com- modity or that could make the conduct of business more orderly. That same journal less than a month later, July 19, declared: What is certain is that the fixing of new prices by the Government is at hand * * * the Government is not alone in wanting regulation of steel prices. Many producers and buyers of steel have feared the consequence of the ungoverned upward movement of the past six months. and still a month later, August 30, it said frankly in another leading editorial on the subject that — undoubtedly there are commodities the price of which the Government should seek to reduce * * * undoubtedly the war necessitates practices that would not be resorted to in time of peace, but such practices are no better than necessary evils * * * it is no time for some to make inordinate profits and add largely to their wealth, when the total material wealth is increasing less rapidly than usual. GOVEKN'MEDSTT CONTROL OVER PRICES. 251 The preceding paragraphs have been extended to some length to show the prevailing attitude toward iron and steel control before it set in. It is of peculiar bearing upon the whole institution of steel control that it came not until after the President, his war officials, the Congress, and the industry itself believed that it ought to come. The Government and the industry, then, were in a state of mind to sit around the same table and determine together what kind of control they wanted and how it should be exercised. Prohlems facing the Government masswnving control. — Even though the Government, and subsequently the industry, had made up their minds to a control over iron and steel prices by midsummer of 1917, there were still several important technical questions facing the Government in assuming that control. The Government had then learned neither the technique of price fixing, nor the general policies underlying it. It knew little more at the outset than that in de- termining upon reasonable prices, it ought not to hamper the production of steel. A host of inquiries made the Government think seriously whether any prices fixed for its own purchases should be made applicable to public purchases; whether Government prices should be extended to the Allies; whether the fixed prices should be determined through a flat rate or a flexible cost-plus profit scale ; whether the proposed fixed-price schedule woidd or not abrogate outstanding contract price agreements; whether the Government, in determining upon prices, should take cognizance of the incidental labor, fuel, and transportation problems; and whether control over the producers would take proper account of the middlemen. Should control extend to civilian purchase. — The President left little opportunity for officials to disagree among themselves whether the public should be made a party to war prices fixed for Government purchases. The interpretation given by the President in his well- known letter of July 12, left few doubts what attitude the country might expect the Government to take in setting the prices for iron and steel. In it he declared unequivocally that — We must make the prices to the public the same as prices to the Government. Prices mean the same everywhere now ; they mean the efficiency of the Nation whether it is the Government that pays tliem or not. They mean victory or defeat. The War Industries Board later in the summer indorsed heartily that expression and thus, too, made clear its determination to follow the President's lead. The problem was settled once for all by open- ing to the public generally the full advantage of prices fixed by the Government. Should control extend to allied purchases. — The War Industries Board did not. moreover, hesitate long to extend to the Allies gen- 252 HISTOEY OF PPJCES DUEING THE WAR. erously the advantages to be had from price regulation within the iron and steel groups. The earlier policy of the Presideht again dominated the policy of the board in announcing finally that^ — It is the pui-pose of the War Inuustiies Board to carry out the policy recently aunounced by the President * * * that in the purchase of war materials in this country our allies shall be charged no more than our own Government has to pay. * * * But this policy has two important limitations. First, it must be reciprocal. The Allies must henceforth apply the same principle in dealing with their own producers and in selling to us and in selling to each other. Second, the arrangement must be limited to war materials, in order to protect our own industry. We must not allow raw material sold by our producers at prices patriotically conceded to our own Government and its allies for war purposes to be diverted to industry and trade abroad which may come in competition with our ow-n maniifacturers and producers. The decision to extend prices fixed for Government purchases to the allied purchases came with but little more hesitation than that to extend them to public purchases. "~ Flat rate or cost plus profit scale. — There was not a little disturb- ance among officials at Washington over the problem whether prices for iron and steel ought to be fixed at a flat i-ate, applicable alike to high and low cost producers, or determined variously by use of a flexible scale allowing each producer a certain profit above his legiti- mate costs. The proper basis for determining upon a fixed or maxi- mum price for iron and steel was by no means clear to the Govern- ment even when it came to the very threshold of control. The Federal Trade Commission, for the purpose of helping to solve the problem, had been requested to submit current figures show- ino- the cost of production. But it was not then known whether cost data should be adopted as a basis for price fixing or, if so, what costs. The Federal Trade Commission figures showed nothing so clearly as that there was no uniformity in the costs of various producers. The difference in costs of production was made only the more confusing and complicated by testimony given at the time before the Senate Committee on Interstate Commerce by Joseph E. Davies, of the Federal Trade Commission. It was brought out that there were not only varying costs within each class, but also as between four dis- tinct classes of iron and steel producers based upon their degree of integration. There were, in other words, those owning their own ore, transportation facilities for shipping it, blast furnaces, rolling mills', and works for the manufacture of the finished products; those who bought their ore and coke in whole or part, but controlled the other stages of production ; those who purchased their pig iron, but manu- factured their own steel ; and those Avho bought their steel ingots and billets and rolled their own plates, shapes, and other products.- The 1 Iron Age, Aug. 16, 1017. = Iron Age, Sept. 27, 1917. GOVEElSrMEIsrT CO^sTTEOL OVER PRICES. 253 commissioner showed that i^roducers within the first of these classes generally have the lowest costs, and that those within the last class, which make up a fair percentage of the total number of producers, have the highest costs. These data, and others like them, made the Government exceed- ingly fearful of reducing prices to a strict cost basis, lest, through a scaling down of prices, the production be diminished. It was at one time suggested that there be devised a pooling agreement be- tween producers which would provide that the profits of low-cost producers be shared with those of high-cost producers. The para- mount desire of the Government to maintain production of steel at its maximum made it take no chance with too drastic measures. It, therefore, determined to fix the maximum prices by a flat rate and at a point high enough to keep substantially in full operation every mill and blast furnace which contributed appreciably to the country's supply,^ Should higher contract prices already made he abrogated. — Thfire- had^een made during the market earlier in 1917 contract agree- ments for iron and steel at prices much higher than the Government contemplated fixing as a maximum. It was believed that the Gov- ernment, in fixing prices lower than outstanding contract prices, could not abrogate those contracts. The concern within the Govern- ment, however, and the industry over this problem turned chiefly upon the advantages which would accrue to buyers who had not con- tracted ahead and could, under the fixed-price schedule, buy cheaper! steel than had their competitors just two months earlier under con- tract agreement. This problem resolved itself into a simpler one as) time passed because of the moderate policy adopted by the Govern- ment and the fair point at which steel prices were put. The Govern- ment finally gave the industry full assurance that all past contract obligations should be carried out as agreed upon.^ ^ Should the Government reoognize the lahor^ fuel, and transporta- tion proUems.—lt is noteworthy that the Government, when it set about controlling steel prices, was confronted at once with the solu- tion of incidental labor, fuel, and transportation problems that had for some time puzzled the industry. The Government found it neces- sary to take into its deliberations a consideration of these very ma- terial factors which help to determine the market price of steel. Should acGount he taken of the middlemen. — The concentration of iron and steel production in the hands of relatively few producers made it simpler to control prices at the source than in some other ^ See article by Abraham Berglund on " Price Fixing in the Iron and Stepl Industrj-,'' in the Quarterly Journal of Economics for August, 1918. 2 Iron Age, July 19, 1917, p. 142. See also ibid., Oct. 4, 1917, p. 832. \ 254 HISTORY OF PRICES DURING THE WAR. industries. A price may be fixed for a producer, but where the product passes through the hands of the jobber to the ultimate con- sumer the jobber's interest in the fixed price is that of purchaser and not that of .seller. An interesting phase of this problem was the at- tempt of the American Steel & Wire Co., which controls over half the wire output of the country, to check the upward movement of prices by selling wire nails at $3.20 per keg when they were quoted at $4 per keg. Independents in several cases were selling wire nails at $4, and the jobbing trade began basing its sales to retailers on the $4 price at mill. Thus in several instances $4.50, and in Phila- delj)hia $5, were charged on sales to retailers. The practices of trade with reference to dealers or jobbers were also phases of the same problem. Furnace coke is not usually sold through dealers, whereas the great bulk of foundry coke is. In fix- ing the necessary differential between furnace and foundry coke the dealer's compensation should be provided for. Again, a rule applica- ble to one class of dealers may not be applicable to another class. Foundry coke and steel bars or plates are both sold through dealers, but there is no relation whatever between the dealer in coke and the dealer in steel bars and plate. In the case of the former, busi- ness is often done on a brokerage basis, whereas in steel bars there is practically no brokerage business. There is, furthermore, the divergence with reference to price practices. The coke dealer or broker frequently buys at an inside price, or something less than that at which the coke operator would sell directly to a consumer, while the jobber in steel products often pays a higher price than that at which the mill sells direct to the large consumer. It is the 'usual case in a rising market for mills to sell bars, sheets, etc., for shorter periods to jobbers than to manufacturing consumers. The jobber pays a higher price, but his business is profitable because he furnishes deliveries. The middleman in certain branches of the iron and steel trade is still a problem, and there has been some disposition to criticize the price-fixing policy of the Government in largely ignor- ing the importance of the jobber and trade practices of the kind referred to. It must be said, however, that over a great part of the industry the middleman does not play anything like so important a role as in many other industries, and the problem of regulating prices in intermediate sales has been on the whole relatively simple.^ Raw -material prices fixed September 24^ 1917. — Events fore- shadowing a control over iron and steel came fast and thick at the War Industries Board, after the middle of September in 1917. Mr. J. L. Eeplogle, at the request of the board, on September 14, submitted * The materials for this paragraph on the middlemen (based upon the Iron Age, July 19, 1917, p. 146, and ibid., Oct. 4, 1917, pp. 828, 829), were taken bodily from Mr. Berglund's article. GOVERlsTMENT CONTROL OVER PRICES. 255 a report of the iron and steel situation, urging that the steel men be called at once to Washington for a conference, that an immediate step be taken to alleviate the chaotic steel situation, and outlining in more detail the condition peculiarly demanding maximum production of coke, pig iron, sheared plates, shell steel, billets and rounds. It was recommended, furthermore, that there be fixed upon those items prices to take effect "at the earliest possible date."^ 1 The text of Mr. Repl ogle's report follows : In compliance with your request, I inclose herewith a memorandum showing my ideas as to prices on various iron and steel products. Whatever prices are determined upon should be put into effect at the earliest possible date, as conditions in the steel line are in an extremely chaotic condition, and I believe many manufacturers in anticipation of what they consider very low prices to be established on steel products, are giving right of way in their mill operations to the more profitable product such as are pur- chased by the automobile manufacturer who is willing to pay the exorbitant prices asked if he can secure delivery, with the result that too much steel is going into non- essentials and entirely too little into war necessities. Certain manufacturers * * * jj^ve given us every cooperation, while others have shown a very indifferent attitude. Despite the fact that the output of * * * is only about 50 per cent of the total capacity of the country, they have taken approximately 70 per cent of all the orders placed by the United States Government and in many cases the prices were far below their competitors, and in all cases where asked to do so, they have taken orders subject to the Government pl-ices to be established, based on the Federal Trade Commission report as to cost. When prices are established and priority schedules are out, I believe most of the others will fall into line. Products most essential to ivar.~The products most essential to the war and on which we must have the maximum production are coke, pig iron, sheared plates, shell steel billets and rounds. I believe on the products most needed that it would be well to es- tablish a stimulating price, as in most cases a steel manufacturer has a finishing capacity far in excess of his ingot capacity, this being due to the fact that in normal times one line or another may be inactive and the demands on other products will be such that he can work up through other lines his entire ingot production. The situation on the various products is about as follows : Coke.— The total production of coke in 1916 was approximately 54,000,000 tons, about 35,000,000 tons or 65 per cent of which was Beehive coke and about 19 000 000 or 35 per cent being made in by-product ovens. Owing to the insufficient car supply and shortage of labor, the production of Beehive coke has fallen off in a very serious waj/ duz-ing the past five or six months, with the result that the price has gone as high as $17 at the ovens, as compared to an average price of about $2.20 during the past 10 years. The Connellsville ovens are now running at the rate of about 70 per cent ca- pacity, and are losing about 20 per cent of their output on account of labor shortage and 10 per cent on account of car service and other causes. Coke will be, I think, the limiting factor in our iron and steel production, although the shortage of iron ore may also be a contributing element. Iron ore.— On Sept. 1, the shipment to lower lake ports was about 3,000,000 tons less than the same time last year, this being largely due to the late opening of lake naviga- tion and insufficient vessel capacity and more particularly, inadequate car service at lower lake points. This matter is receiving every consideration by the ere committee but I strongly recommend that the movement to take about 86 vessels from the Great Lakes for use in ocean traffi^c be dropped, as the boats are badly needed for the ore carrying trade. .In order to take them through the Welland Canal and make them serviceable, an enormous amount of labor and money would be necessary to cut them in half and repair them and even after this was done, they would not be suitable for ocean traffic. I understand that of the 86 boats under consideration, 37 of them are packet boats which can be spared. The ore consumption in 1916 was approximately 57,000,000 tons, and the annual capacity now with about 19 new furnaces in blast is about 64 000 000 tons, and if the 86 boats are taken from the lake trade, it wtould cut their tonnage to the extent of probably 3,500,000 tons annually, which would seriously cripple the industry. "-^ Pig iron.— The output for 1916 was approximately 39,500,000 tons, but the produc tion of iron m the first half of this year was considerably under the previous six months, this being largely due to the shortage of coke and labor. Most of the furnaces make 256 . HISTORY OF PEICES DURING THE WAR. The War Industries Board, four days later, called its committee^ into a special meeting and asked for views of tlie proper method to be followed in fixing- the price of steel. The com mittee reported that they had examined the cost figures found by the Federal Trade Commission on coke, iron ore, pig iron, and steel products. They believed in general, however, that those data really reflected the prevailing condition of a year previous since the materials used during the first half of 1917 had been contracted for then. The committee made recommendations relative to the methods of con- trol and they emphasized certain phases of it which proved later to be vital factors in the whole scheme of iron and steel regulation. It said in part that— ■ It is our judgment that the question of price fixing may be best approached by considering the individual processes or stages comprising tlie manufacture of the finished product. Each of these practically constitutes an independent iron, of course, only for their own use and the average monthly production for sale during the first six months of this year, was about 940,000 gross tons. The sales obligations of the various manufacturers on July 21, 1917 were 8,233,130 tons, of which about 250,000 tons were for export largely to Canada, Great Britain, Italy, and Japan. From this you will note that the merchant furnace production of the country is sold up for a little over nine months. There has been a great increase in steel making capacity, but the production of iron has not kept pace with it. A number of our Allies, par- ticularly Italy, are in the market for very heavy tonnages, and I think their necessi- ties are such that they can not be denied. Plates. — Supplementing my letter of the 30th ultimo, I consider plates about the weakest link in our chain. The total production of sheared and universal plates ii 1916, which was a record year, was 3,687,384 tons, of which 1,224,234 tons were uni- versal mill plates not adaptable to any great extent for ship construction. As a matter of fact, the production of sheared plates J inch or over was 1,865,642 tons. The sales obligations of the various plate manufacturers as of July 21 last total about 2,300,000 tons and the requirements of the Shipping Board and of the Navy and Army to the end of 1918 will approximate 1,750,000 tons, so that it is plain that we have fully two solid ^ years maximum operation now in sight, without taking into consideration the needs of our allies, which will be very heavy. The British war mission is now trying to secure right of way on a plate specification ; the Italian missioni informs us that their re- quirements will also be quite heavy, and Japan wants an enormous tonnage. Of the 425,556 tons of plates for export on the books of the plate manufacturers July 21 last, 292,000 or about 68 per cent were for shipment to Japan, and about 70,000 tons for shipment to Canada. If w^e continue to permit the export of plates, it is plain that the output of our own. ship yards will be restricted. I can not too strongly impress upon you the grave situation in this particular line. There was considerable new plate capacity under serious consideration some months ago ; in fact, some of the work on the mills had alreadj' been started, when for some reason construction was called ofC at the time Government prices on plates were discussed by representatives of the Government and the manufacturers. If the demand for pipes and tubes can be reduced by discouraging building construc- tion and all nonessential work of this character, these skelp mills could be used to very great advantage on ship plates. I think that this is one of the greatest possibilities we have and it must promptly be taken advantage of by some one in authority. In view of the above conditions, which I consider most serious to our war program, I believe a stimulating price on plates would be advisable to encourage the mills in ex- erting every possible influence for maximum tonnage from their existing mills, and also to influence new construction. Projectile steel. — The situation in this line is equally as bad as on plates. The re- (luirements of this Government for the next year will approximate 1,600,000 tons. The British war mission advise us that they have approximately 700,000 tons now on order with various plants in this country which have not yet been delivered, and their require- ments will be at least 1,000,000 tons additional. Italy wants about 40,000 tons and Belgium about 28,000 tons, making a total of 3,368,000 tons. I have not yet been able GOYERNMEIfTT CONTROL OVER PRICES. 257 industry. Many of the operators are engaged in only one of tlie processes, wliile a few of tlie larger companies cover all operations from the raw material to the finished product. As each industry must be allowed a profit to sup- port that particular industry, the integrated companies who cover all processes from raw materials to highly finished products must necessarily receive a profit on each of the processes. Conditions prevailing in the steel trade for a considerable period made it necessary for all lines of industry using steel products to order their supplies further in advance than would be necessary under normal conditions, and as a consequence these industries have on hand substantial stocks of steel acquired at prices A'ery much higher than any we could recommend as being fair or equitable. To partially meet this situation and avoid demoralizing the many industries that are largely dependent upon steel products, we recommend the establishment of what might be termed an intermediate scale of prices for a period of three months with the expectation of a further reduction at the end of that period. With that purpose in mind we submit the attached schedule of proposed prices on the raw materials and various products, also showing the approxi- to get the requirements of France and Russia, but I assume that there will be a tre- mendous tonnage required by them. Prior to the war there was comparatively little of this tonnage rolled and there are practically no mills in this country adapted particularly for this character of prod- uct, as the ordinary bar mill is designed more particularly for bars of i inch to, say, 2 inch diameter, and the shell steel in this country is largely rolled on rail mills and heavy structural mills, and the rolling of this tonnage on these mills displaces a very much heavier tonnage of the products for which the mills were designed. We have had the greatest difficulty in placing a small requisition for about 30,000 tons for the Ordnance Department, as all the mills are filled up largely on foreign orders. The British, Italian, and Belgian missions are all pushing us for deliveries on their requirements in this line, and to place additional tonnages, which we can not see any possibility of their getting, without a serious shortage in our own requirements. We are giving this subject a lot of detailed study, but we can not see any possible chance of meeting our requirements in this line, unless something is done promptly to prevent the manufacture of the enormous tonnage of steel going into nonessentials. I believe on the larger shells we will have to go to the steel casting companies, al- though I understand the War Department is not very favorable to this. This has been done by some of the foreign governments in an emergency, and I believe we will have to come to it here, which will help the situation to some extent, but not greatly. A very serious complication is the closing of shell factories in Canada, where they have a capacity of 400,000 shells per day, which is considerably in excess of the out- put in this country. I have talked with three of the Canadian munition manufacturers who state they propose to change their factories to other lines of product, as they can not get additional shell orders from the British Government, which insists that Canada must finance their own requirements in this line, which they state they are unable to do, and according to the terms of the United States Government's loan to Great Britain, this money can only be used for purchases in this country, with the result that they are trying to divert this Canadian business to us. They have been consuming 225,000 tons of shell steel monthly in Canada, about 190,000 tons of which was supplied by the Canadian steel plants, and approximately 35,000 tons imported from this country. I certainly feel that some arrangement should promptly be made to continue the manu- facture of shell steel and finished shells in Canada, and understand that negotiations are now on with this object in view. Siiininayy. — As previously advised, coke, pig iron, plates, and projectile steel will be the most serious factors in the steel situation. The situation on structural steel, pipe, and tubes, wire products, rails, merchant bars, etc., is approximately as reported in my letter of the 30th ultimo. These lines will all have to be materially curtailed in order to meet the absolute war necessities. I again recommend that the leading steel manu- facturers be called to Washington at the earliest possible date for a full discussion of the serious condition, with the hope that immediate action will be taken to improve it, as we can not continue on the present basis without most serious results. 1 Mr. J. Leonard Replogle, Alex. Legge, and L. L. Summers. 125.047 °— 20 17 i 258 HISTORY OF PRICES DURING THE WAR. mate market prices at the present time and the amount of tlxe reduction from such prices. Tliis scale of prices is recommended on the basis of offering a premium on ship plates and slaell steel witli the object of stimulating production, as the present capacity is inadequate to meet the requirements. It is evident that to be effective any price regulations must be rigidly en- forced. Serious consideration should be given to the question of abrogating contracts which were entered into prior to establishing this suggested schedule of prices. We have asked the Federal Trade Commission to advise the War Industries Board further in regard to these contracts, which must be consid- ered an important factor in the situation as some furnaces have entered into contracts without regard to the price established on coal. The War Industries Board on September 18, 1917, after hearing the above report in substance, agreed that the prices of ore, coal, coke, transportation, and pig iron should be fixed separately and thus build up a fair price for steel. It was likewise then agreed that should the steel interests not be willing to give their full co- operation because of the prices being fixed, that the War Industries Board would take the steps necessary to assume control over the steel plants.^ The jDrices fixed on the great basic raw materials of the iron and steel group, which proved later to have been the basis for all price fixing within that group, were announced toy the President on Sep- tember 24, 1917, but were, in point of fact, fixed by an oral agree- ment between the War Industries Board and the industry on Sep- tember 21, 1917, The iron and steel industry of the country, as rep- ^ A chief concern of tbe War Industries Board, in fixing the prices of iron and steel, was to maintain production at a maximum. It is therefore of interest to note that on Sept. 18, 1917, the chief of the board's production committee, Mr. S. M. Vauclain, pre- pared a memorandum stating the production of ore, colce, pig iron, and plates should be stimulated. Mr. Vauclain gave it as his confident belief that the maximum production of the mills would be assured should the Board establish prices substantially in con- formity to those recommended by him as follows : Of course the cost of pig iron must necessarily regulate the price of steel and the price of pig iron naturally depends upon the price of ore and coke. There are four items which should be stimulated so that no question of labor or profit should arise in their production and the minimum price should be named that will secure for the United states the maximum production, as follows : Ore, coke, pig iron, and plates ; therefore, I suggest to you the following : (1) Ore.- — Ore is now sold at lake ports, at Mesabi, at $5.05 and at Old Range at $5.20, Such Cuban, Spanish, and Chilean ore as it is possible to bring in costs about the same at plants along the Atlantic seaboard, therefore it is suggested that the price of $5 per ton at lake ports should be the price to all for ore. (2) Coke. — There is universal regret among manufacturers that the price of coal has been placed at .'i!2. It is considered a grave mistake and that $3 coal would have brought about a maximum production of this much-needed article. Therefore, we should not make the same mistake on coke. The cost of beehive coke is usually practically the cost of two tons of coal plus $1. It is therefore suggested that the price of coke, without distinction between beehive or by-product, should be, at the Connellsville district, $6. (3) Pig iron. — At the present time there is at most bla.st furnaces large quantities of fuel and ore which will make operation safe, which has been purchased at ruling market prices. Therefore, in order to enable the manufacturer to work off this high priced material, I suggest the following rates for pig iron : $35 per ton from Oct. 1, 1917, to GOVEEWMBIirT COlirTROL OVER PRICES. 259 resented by 65 high officials, met the War Industries Board at Wash- ington about 10 o'clock on the morning of September 21, at the call of the board. The steel men were told that the President had re- quested the board to ask their opinions as to proper prices to be fixed. An informal discussion took place on the basis of data at hand and in mind and then "the meeting adjourned until 4 p. m. to give the steel iiiterests the opportunity of discussing the proper prices to fix." ^ When the meeting reconvened at 4 p. m. Judge E. H. Gary, speak- ing for the steel industry, explained to the board that the steel inter- ests had appointed committees covering ore, coke, and pig iron and that those committees would make and explain their recommenda- tions. The suggestions made by these committees were virtually the prices adopted by the board and later announced by the President. It is of especial interest, therefore, to read in detail the specific recom- mendations formally made to the board by the steel committees, of prices which they considered fair and proper. The minutes of the War Industries Board for that day say : Ore. — The committee on ore then stated that the ore sold last year for this year's consumption was on a basis of $5.05 per ton, lower lake port, for non- Bessemer Mesabi ore. They suggested that the same price might be considered fair for the ore to be purchased this fall for consumption from June, 1918, to June, 1919, provided that wages for labor and cost of transportation remained the same. If they did not, a corresponding increase in price should be allowed. They stated that the projQts for last year were higher than the average for previous years, but not as high as they have been in certain years of the past. Jan. 1, 1918 ; $32.50 per ton from Jan. 1, 1918, to Apr. 1, 1918 ; and $30 per ton there- after, it having been ascertained that with regulated prices for ore and coke any blast furnace in the United States can produce with a fair profit pig iron at the last-named price. Therefore, at the above prices, I suggest the following schedule : Item. Pig iron Steel ingots Blooms BiUets Slabs Bars Shapes Plates Steel rails (Ught special). Oct. 1, 1917, to Jan. 1, 1918. $35.00 45.00 54.00 55.00 55.00 65.00 67.00 77.00 65.00 Jan. 1, 1918, to Apr. 1, 1918. S32.50 42.50 51.50 52.50 52.50 62.00 64.50 74.50 62.50 There- after. S30.00 40.00 49.00 50.00 50.00 60.00 62.00 72.00 60.00 In^chstge_,the manufa c toer;s^profltJma^beenJnj;luded. You wiU note at these prices that the base pnce of plates will be 3.437, 3.321, and 3.215 pel "pound. I feel confident that should prices, approximately mconformity with these figures, be estabhshed that the maximum production of our mills would be assured. There would also be an incentive for new capital to get into this business, as there would be small chance of making an actual loss and the patriotism of our manufacturers would be more active toward a higher production of steel products, and unless we do have a higher production of steel products the war wiU be a slow and tedious process. 1 The War Industries Board Minutes for Sept. 21. 1917. 260 HISTORY OF PRICES DURING THE WAR. Roughly speaking, tliey stated that the protit per ton hist year was approxi- mately $1. It was understood that the usual differential obtaining in the trade for higher grades of ore should be considered operative. Coke. — The committee covering coke stated that they considered a price of ft;6.50 per ton ovens for coke should be established. Judge Gary stated that he thought $6 a ton would allow a sufficient margin ; Mr. Schwab confirmed Judge Gary's statement. Piy iron. — The committee covering pig iron stated that in their opinion $35 a ton valley for basic iron would permit of 90 per cent of the blast furnaces operating at a profit, and if coke can be established at $6 ovens, $30 pig iron is fair. Some exception Avas taken to this, largely because of the fact that con- tracts for coke at high prices for future delivery had been placed by many furnaces. Steel. — Mr. Schwab presented figures showing that if a profit of 1.5 per cent were allowed, ingots should sell at $52.2,5 a gross ton, billets at $60.30 a gross ton, and plates at $85.30 a gross ton. The representative of the Lukens Iron & Steel Co. stated that if pig iron were fixed at $35 per ton, plates would cost him on a basis of $3.45 per hundred pounds. The members of the War Industries Board retired from the meeting to per- mit the steel interests to suggest prices on these commodities, which, in their opinion, would be for the greatest benefit of the Nation. The board was then waited upon by a special committee appointed by the steel interests, consisting of Judge Gary, Mr. Schwab, and Mr. Dalton, who presented certain figures as being acceptable to the steel interests, whereupon the board informed them that at the earliest opportunity they would wait upon the President relative thereto. One of the most striking of all the features of the early fixing of iron and steel prices was the informality of it and the reliance of the whole scheme upon a cordiality between the Govermnent and the industry.^ The fruit of all these confidential meetings came finally to a full public knowledge on September 24, 1917, when the President ap- proved the prices therein determined upon by fixing the following 1 Judge R. S. Lovett, acting chairman of the War Industries Board, on Sept. 25, 1917 wrote the following letter to .Judge E. H. Gary, authorized spokesman for the steel industry : " This is to confirm the oral agreement between the War Industries Board and your- self and other representatives of the steel industry, arrived at on Sept. 21 and approved by the President, as announced by him on Sept. 24, 1917, fixing the following prices which became effective immediately and are subject- to revision Jan. 1, 1918, for the articles mentioned, viz : Iron ore, lower Lake ports basis, .$5.05 per gross ton ; coke, Connellsville basis, .?6 per net ton ; pig iron, Valley basis, $3.3 per gross ton ; steel bars, Pittsfiurgh and Chicago basis, $2.90 per hundred ; steel shapes, Pittsburgh and Chica.go basis, $3 per hundi-ed ; and steel plates, Pittsburgh and Chicago basis, $3.25 per hun- dred. Also, first, that there should be no reduction in the present rate of wages ; second, that the prices above named shall be made to the public and to the nations associated with the United States in the present war with Germany, as well as to the Government of the United States; and, third, that the steel producers represented at the meeting pledge themselves to exert every effort necessary to keep up the production to the maxi- mum of the past so long as the war lasts. Will you or those associated with you in the negotiations referred to please take up promptly or send representatives here to take xip with Messrs. Baruch and Lovett the details for working out the placing of orders, the settlement of questions of priority, etc., and other matters necessary for carrying out the arrangement, and oblige?" GOVERlSrMElsrT CONTROL OVER PRICES. 261 basic prices effective immediately and subject to revision January 1, 1918, viz : Commodity. Basis. Price. Iron ore . . . Coke Pig iron. . . Steel bars . Shapes Plates Lower Lake ports . Connellsville Pittsburgh-Chicago . do do $5.05 per grods ton. $6 per net ton. $33 per gross ton. $2. SO per 100 pounds. $3 per 100 pounds. $3. 25 per 100 pounds. It was made a part of the informal oral agreement between the War Industries Board with the steel men, and announced with the above price schedille as a policy by the President, first, that there should be no reduction in the present rate of wages ; second, that the prices above named should be made to the public and to the Allies, as well as to the Government; and third, that the steel men pledge themselves to exert every effort necessary to keep up the production to the maximum of the past, so long as the war lasts.^ The Presi- dent at the same time directed that measures be taken by the War Industries Board for placing orders and supervising the output of the steel mills in such manner as to facilitate the requirements of the Government and the Allies for war purposes, and the public needs where practicable. The prices fixed by the War Industries Board did not represent reductions as enormous as many people believed the elaborate Fed- eral Trade Commission inquiries into costs justified. They were, though generally below the historic high-price level of July previous, all materially higher than the average prices prevailing for those same commodities during 1911-1914. The falling off in quoted prices for iron and steel, due in part to the knowledge of forthcoming Gov- ernment regulation, began immediately after the July market. The prices fixed by the board represented a considerable scaling ddwn from the July prices as is strikingly emphasized by the downward and then level turn of the iron and steel index number earlier in the chapter. Coke was reduced in price from $12.75 to $6, pig iron from $55 to $33, steel bars from $4.50 to $2.90, shapes from $6 to $3, and plates from $9 to $3.25. It should, of course, be remembered that the very high quotations of July, 1917, were never realized in the majority of contract placements. They represented simply the ex- orbitant p rices which certain sales could command because the bulk of steel w as booked up under contract. The real scaling down of .^grices from the high point of July, 1917, therefore, was actually much Official Bulletin, Sept. 25, 1917. 262 HISTORY OF PRICES DURING THE WAR. less than one might suppose on examining the above figures.^ It_ was quite as much the object of tlie Government to stabilize the mar- ket at a point that would effect a maximum of production as to scale, down prices from higher levels. There follows a table showing the quoted prices on iron ore, coke, pig iron, steel bars, shapes, and plates as they prevailed during 1911-1914; at their average in July, 1917; and as finally fixed by the Government on September 24, 1917.^ Commodity. Basis. Average for years 1911-1914. Average for July, 1917. Price fixed by Govern- ment, Sept. 24, 1917. Iron ore (non-Bessemer, 51. .50 per cent iron), per gross ton. S3. 15 2.05 14.90 1.31 1.32 1.32 $5. 05 13.42 52.50 4.50 4.50 9.00 $5.05 ConneUsville 6.00 Pig iron (No. 2, foundry and basic), per gross ton. Steel bars (not including sheet steel and small shapes under 3 inches per pound), per cwt. Valley and Chicago Pittsburgh or Chicago. . . do 33.00 2.90 3.00 do 3.25 No better basis, for a more detailed inquiry into the comparison of fixed prices with prevailing market quotations, can be had than the monthly prices from 1913 to 1918 of each basic raw material that was fixed on September 24, 1917 (iron ore, coke, pig iron, steel bars, shapes, and plates). The market quotations for Mesabi, non- Bessemer (51^ per cent iron) iron ore at the lower lake ports, which was adopted as the "basis in fixing iron ore prices, held an average price of $3.3083 per gross ton for the year just preceding the out- break of war (July 1, 1913, to June 30, 1914), and fell as low as $2.80 the latter part .of 1915. But it reached a level of $5.05 in December, 1916, which it maintained steadily to September, 1917. The War In- dustries Board, at that time, fixed the price at $5.05. ConneUsville coke, furnace, prompt shipment f. o. b. ovens, which was adopted as the basis for fixing coke prices, was selling for $1.75 per short ton when war broke out in Europe. During the last quarter of 1916 the market became erratic, and coke prices reached $9 in Decem- ber of that year. They remained enormously high during 1917 and in August attained a peak at $13.42. The War Industries Board in September fixed the price at $6 per ton. The quotation of pig iron f. o. b. Mahoning or Shenango Valley furnace, was $13 per ' It is aptly pointed out by Mr. Berglund that, though considerable reductions took place before the War Industries Board actually acted upon prices, the reductions made by the new schedule were material even in tlie market as it existed in September. On Sept. 20, four days before the first publication of fixed prices, basic pig iron at Valley furnaces was quoted by the Iron Age at !f42 per gross ton and No. 2 foundry pig iron, Chicago, at .$54. Soft steel bars, Pittsburgh, were quoted at $4 per hundredweight and tank plates at $8 per 100 pounds. 2 Made from quotations carried by the Iron Age and " Maximum Prices , on Iron and Steel Products," as published by the American Iron and Steel Institute. GOVERNMEKT CONTROL OVER PRICES. 263 gross ton when war broke out in Europe. It began going higher the latter part of 1915 and reached $52.60 in July, 1917. The War Industries Board fixed the price on September at $33 per gross ton. The price of steel bars, Pittsburgh, stood at $1.12 when war began but reached $4.50 by the middle of 1917. The War Industries Board fixed the price at $2.90 per hundred pounds in September, 1917. Structural shapes, Pittsburgh (beams and chan- nels, 3-inch to 15-inch) were selling at the same level as steel bars when the war began and reached the same peak by the middle of 1917. The price for shapes was fixed at $3 per hundred pounds in September, 1917. Steel plates, tank plates at Pittsburgh, were selling at $1.11 when the war began but rose to $9 in July, 1917. Their price was fixed at $3.25 per hundred pounds in September, 1917. There follows a more detailed exhibit of the prices of these articles. MARKET PRICES, AT WHOLESALE, OF IRON ORE, MESABI NONBESSEMER, 51^ PER CENT, AT LOWER LAKE PORTS.i Month. 1913 1914 1915 1916 1917 1918 S3. 40 3.40 3.40 3.40 3.40 3.40 3.40 3.40 3.40 3.40 3.40 3.40 $3.40 3.40 3.40 3.40 2.85 2.85 2.85 2.85 2.85 2.85 2.85 2.85 S2.85 2.85 2.85 2.85 2.85 2.85 2.80 2.80 2.80 2.80 2.80 2.80 $3.55 3.55 3.55 3.55 3.55 3.55 3.55 3.55 3.55 3.55 3.55 5.05 $5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 5.05 2 5.05 5.05 5.05 $5.05 5.05 5.05 5.05 May 5.05 5.05 July 5.05 5.50 5.50 5.75 5.75 5.75 MARKET PRICES, AT WHOLESALE, OF CONNELLSVILLE COKE, FURNACE, PROMPT SHIPMENT, F. O. B. 0VENS.3 January... February. March April May. June July August September October . . . November December. $3.85 $1.88 $1.55 $3.14 $9.44 2.60 1.90 1.55 3.41 10.57 2.47 1.92 1.53 3.45 9.58 2.20 1.90 1.55 2.45 8.00 2.15 1.83 1.50 2.34 8.40 2.20 1.80 1.50 2.54 11.20 2.50 1.75 1.67 2.65 12.32 2.50 1.74 1.54 2.75 13.42 2.37 1.70 1.66 2.94 11.85 2.10 1.65 2.18 5.69 2 6.00 1.88 1.60 2.35 6.91 6.00 1.77 1.60 2.85 9.00 6.00 $6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 MARKET PRICES, AT WHOLESALE, OF BASIC PIG IRON, F. O. B. MAHONING OR SHE- NANGO VALLEY FURNACE.4 January... February . March April May June July Augast September October... November December. $16.41 $12. 50 $12.50 $17. 81 $30. 00 16.30 13.19 12.50 17.69 30.00 16.11 13.00 12.50 18.20 32.25 15.87 13.00 12.50 18.13 38.75 15.15 13.00 12.50 18.00 41.60 14.50 13.00 12.59 18.00 48.75 14.37 13.00 12.74 18.00 52.50 14.06 13.00 14.06 18.00 51.20 14.00 13.00 14.75 18.31 42.75 13.90 12.81 15.00 19.88 2 33. 00 13.09 12.48 15.75 25.10 33.00 12.71 12.50 17.50 30.00 33.00 $33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 33.00 1 Quotations represent prices per ton and were taken on first of each month from the Iron Trade Re^aew. 2 Fixed price. 3 Metal Statistics , published by the American Metal Market and Daily Iron and Steel Report, for 1919, p. 37. Prices are quoted per net ton. i Prices are per gross ton and were taken from the Iron Age, Jan. 2, 1919, p. 18. 264 HISTORY OF PRICES DURING THE WAR. MARKET PRICES, AT WHOLESALE, OF STEEL BARS, PITTSBURGH.i Month. 1913 1914 1915 1916 1917 1918 $1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.39 1.30 1.22 SI. 20 1.22 1.20 1.15 1.14 1.12 1.12 1.18 1.19 1.15 1.11 1.05 $1.10 1.10 1.15 1.20 1.20 1.20 1.27 1.30 1.35 1.43 1.63 1.75 $1.87 2.06 2.36 2.50 2.50 2.50 2.50 2.56 2.60 2.62 2.76 2.93 $3.00 3.00 3.27 3.39 3.64 4.00 4.50 4.50 3.88 = 2.90 2.90 2.90 $2.90 2.90 March. .'. „ 2.90 2.90 Mav 2.90 June 2.90 Julv 2.90 August 2.90 September 2.90 October 2.90 November 2.90 December 2.78 MARKET PRICES, AT WHOLESALE, OF STRUCTURAL SHAPES (BEAMS AND CHAN- NELS) 3-INCH TO 15-INCH, PITTSBURGH.I January... February.. March April May June Julv August September October... November. December. $1.50 $1.20 $1.10 $1.87 $3.11 1.45 1.25 1.10 2.06 3.25 1.45 1.21 1.15 2.36 3.52 1.45 1.18 1.20 2.50 3.70 1.45 1.15 1.20 2.50 4.00 1.45 1.12 1.20 2.50 4.25 1.45 1.12 1.25 2.50 4.50 1.45 1.18 1.30 2.54 4.50 1.40 1.20 1.33 2.60 4.06 1.39 1.16 1.44 2. 63 2 3.00 1.34 1.11 1.63 2.86 3.00 1.24 1.05 1.75 3.03 3.00 $3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 2.88 MARKET PRICES, AT WHOLESALE, OF STEEL PLATES, TANK, PITTSBURGH.i January.. . Febniar".. March..:.. April .May June July August September October... November. Decem.ber. $1.50 $1.20 $1.10 SI. 90 $3.61 1.45 1.21 1.10 2.16 3.75 1.45 1.18 1.15 2.53 4.33 1.45 1.15 1.20 2.75 4.50 1.45 1.14 1.17 2.83 4.50 1.45 1.10 1.15 2.90 7.10 1.45 1.11 1.22 2.90 9.00 1.44 1.18 1.26 2.94 8.96 1.40 1.19 1.33 3.00 7.05 1.36 1.14 1.42 3.07 2 3.25 1.29 1.09 1.63 3.33 3.25 1.20 1.05 1.75 3.53 3.25 $3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.25 3.10 1 Quotations rapresent prices per hundredweight and were taken from Metal Statistics for 1919. 2 Fixed price. Semifmished-product prices iticed October 11^ 1917. — The next of the three great initial steps in the fixing of iron and steel prices, following the fixing of raw-material prices on September 24, came scarcel}^ three weeks later when prices were fixed on the inter- mediate products (blooms, billets, slabs, sheet bars, wire rods, shell bars, and skelp) on October 11, 1917. There need be no restatement of the method by which the Govern- ment and industry arrived at the prices fixed on these semifinished products, since the approach was not unlike that made to the former price fixing of raw materials. It should be said, however, that meantime the old iron and steel committees, formerly represent- ing the industry in the Council of National Defense, went out of G0VEE2^MENT CONTROL OVER PRICES. 265 existence and the American Iron and Steel Institute became tlie formal and authoritative spokesman of the industry to the Gov- ernment. The steel manufacturers, thus formed into committees under the American Iron and Steel Institute for the purpose of fur- nishing information to the War Industries Board, had no con- nection, advisory or otherwise, with the awarding of any con- tracts.^ These newly formed institute committees and the Gov- ernment, immediately after the fixing of prices on iron ore, coke, pig iron, plates, shapes, and bars in September, began conferring among themselves and with each other to determine prices on semi- finished products in line with those just announced on raw materials. They came finally to an agreement, and the War Industries Board submitted the newly determined prices to the President. The President approved the prices fixed on these more highly man- ufactured steel products on October 11, and announced the following as maximum prices effective immediately but subject to revision Janu- ary 1, 1918 : Comraoditv. Basis. Price. Blooms and billets, 4 by 4 inches and larger. Billets, under 4 by 4 inches Slabs Sheet bars Vv'ire rods Shell bars: 3 to 5 inches Over 5 to 8 inches. Over 8 to 10 inches Over 10 inches Skelp: Grooved Universal Sheared Pittsburgh-Youngstown . do do do Pittsburgh. .do. do. .do. .do. .do. .do. .do. S47.50 per gross ton. $51 per gross ton. $oO per gross ton. S51 per gross ton. $57 per gross ton. $3.25 per 100 pounds. $3.50 per 100 povmds. $3.75 per 100 nounds. $4 per 100 pounds. $2.90 per 100 pounds. $3.15 per 100 pounds. $3.25 per 100 pounds. The President announced that he fixed these maximum prices on the assurance of the steel industrj^ that they would equitably adjust the relations of the steel interests to each other, and assist to give the country a maximum of production. Bessemer steel billets, at Pittsburgh, which were selling at $19 per gross ton at the close of 1914, sold as high as $100 in July, 1917, and were fixed at $47.50 in October.^ Bessemer sheet bars, at Pitts- burgh, which were selling at $20 when war began, rose to $105 in June and July of 1917, and were fixed at $51 per gross ton in Octo- ber.^ Bessemer wire rods, at Pittsburgh, which were selling at $24.50 three years earlier, attained a peak of $96.25 in July, 1917, and were fixed at $57 per gross ton in October,* Grooved steel skelp, at 1 lion Age, Oct. 4, 1917, p. 832. - Iron Age, Jan. 2, 1919, p. 18. « Metal Statistics for 1919, p. 91. *Iron Age, Jan. 2, 1919, p. 20. 266 HISTORY OF PRICES DURING THE WAR. Pittsburgh, which was selling at $1.15 in. July, 1914, rose to $6 in July, 1917, and was fixed at $2.90 per hundred- pounds in October,^ F inished-product prices f.xed Novemher 5, 1917. — The last of the initial three steps in price fixing within the iron and steel group came on November 5, 1917, when the President approved an agree- ment between the War Industries Board and the steel industry, fix- ing prices on certain finished products (sheets, pipe, cold-rolled steel, V scrap, wire, and tin plate). The President fixed these maximum prices at that time, subject to revision January 1, 1918. It is of par- ticular interest that he also announced that the iron and steel manu- facturers had agreed " promptly to adjust the maximum prices of all iron and steel products other than those on which prices have been agreed upon to the same general standard as those which have been announced. It is expected that this will be done promptly and con- sistently in line with the basic, intermediate, and finished products, for which definite maximum prices have been established." ^ The Government had thus brought under its control the basic raw ma- terials, semifinished products, and finished products of the iron and steel industry. The basic finished-product prices which were announced November 5 were as follows: Sneets : pounds. No. 28 black sheets f. o. b. Pittsburgh $5. 00 No. 10 blue annealed sheets f. o. b Pittsburgh 4. 25 No. 28 galvanized sheets f. o. b. Pittsburgh 6. 25 The above prices to apply to both Bessemer and open-hearth grades. Pipe : On f -inch to S-inch black steel pipe, discount 52 and 5 and 2J per cent f. o. b. Pittsburgh. Cold-rolled steel : Seventeen per cent discount from March 15, 1915, list f. o. b. Pittsburgh. Per gross Scrap (f. o. b. consuming point) : . ton. No. 1 heavy melting $30.00 Cast-iron borings and machine-shop turnings 20. 00 No. 1 railroad wrought 35. 00 Wire, plain wire f. o. b. Pittsburgh, per 100 pounds 3. 25 Tin plate, coke base, Bessemer, and open hearth f. o. b. Pittsburgh, per 100-pound box 7. 75 Black sheets. No. 28 gauge, f. o. b. mill at Pittsburgh, which were selling for $1.80 when war began, sold for $8 during July, August, and September, of 1917, and were fixed at $5 per hundred pounds in November.^ Galvanized sheets, No. 28 gauge, f. o. b. mill at Pitts- burgh, which were selling at $2.75 when war came in Europe, rose to $10.60 in July, 1917, and were selling at $8.90 still in October. They 1 Metal Statistics for 1919, p. 115. 2 Official Bulletin, Nov. 6, 1917. 'Metal Statistics for 1919, p. 131. GOVERNMENT CONTROL OVER PRICES. 267 were fixed at $6.25 per hundred pounds in November.^ Blue an- nealed sheets, No. 10 gauge, at Pittsburgh, which were selling at $1.35 at the beginning of war, rose to $8.25 in July, 1917, and were fixed at $4.25 per hundred pounds in November.^ Heavy melting steel scrap, at Pittsburgh, rose from $11.75 when war broke out to $38.76 in July, 1917, and was fixed at $30 per gross ton in November.^ The average price of plain wire, at Pittsburgh, for 1914 was $1.40, for 1917 $3.95, and the price fixed in November, 1917, was $3.25 per hundred pounds.* Tin plates, at Pittsburgh, were selling at $3.20 the last of 1914, and rose as high as $7.50 in March, 1917. They were fixed at $7.75 per hundred-pound box in November, 1917 — the highest price quoted in 18 years, if ever.^ The determination of differentials ivprni basic 'prices. — It must be borne in mind for emphasis that the President, upon the joint recommendation of the War Industries Board and the iron and steel industry, approved simply the basic raw material prices (iron ore, coke, pig iron, steel bars, shapes, and plates) on September 24; cer- < tain basic semifinished-product prices (blooms, billets, slabs, sheet bars, wire rods, shell bars, and skelp) on October 11; and certain finished products (sheets, pipe, cold rolled steel, scrap, wire, and tin- plate) on November 5, 1917. These prices were meant simply to afford a basis for other related controls, and the President went so far, in his statement of the latter date, as to instruct the industry to bring the prices of all iron and steel products into a line with the above announced basic prices. The Government , ther efore, left quite JoJh£jniiiistry-ih.ai)urden of determining the thousands of differen- -tials. figured upon the Government fixed basic prices.^ Ubid., p. 133. 2 Ibid., p. 127. 3 Ibid., p. 159. *Ibid., p. 103. 5 Ibid., p. 141. ^ The full list of differentials figured under the various basic pricesi announced by the Government, and as published by the American Iron and Steel Institute of 61 Broadway, New York, consumes 150 pages of detailed schedules of " Maximum Prices on Iron and ^ Steel Products" (issued Nov. 15, 1918), and shows control over alloy steel castings U-X^ anchors ; angles, heavy ; angles, light ; angle splice bars ; automobile sheets ; bands : bands, heavy, iron ; bands, light, iron ; barbed wire ; bars, angle splice ; bars, concrete reinforcing ; bars, forging ; bars, iron ; bars, rail steel ; bars, sheet ; bars, shell ; bars, steel ; basic pig iron ; beams, Bessemer ferrosillicon ; Bessemer pig iron ; beveled edge box iron ; billets for seamless tubes ; billets, forging ; billets, re-rolling ; billets, small ; black plate, tin mill ; black sheets ; blast furnace castings ; blooms, re-rolling ; blooms, forging; blue annealed sheets, boat spikes; boiler castings; boiler tubes; bolsters, bolts; bolts, railroad track; brads; bridge blocks; bulb angles; bulb beams; calks; car .-• and locomotive frames ; carbon tool steel ; cai- castings ; car wheels ; castings, malle- --"^ able ; castings, steel p-east-iron water pipe ; cement mill castings ; chain ; channels, heavy ; channels, light ; charcoal pig iron ; cold rolled and cold drawn steel ; cold rolled strip steel ; column bases ; concrete reinforcing bars ; couplers ; crane castings ; cut nails ; cut tacks ; electrical sheets ; engine castings ; ferrosillicon, Bessemer ; flats ; flats, cold rolled and cold drawn ; flats, iron ; forging bars ; forging ingots ; forging steel ; formed roofing sheets ; foundry pig iron ; galvanized sheets ; gears ; half ovals ; half ovals, iron ; half rounds ; half rounds, iron ; hexagons ; hexagons, cold rolled and cold drawn ; high 268 HISTORY OF PRICES DURING THE WAR. In response to the request of the President on Xovember 5, the com- mittee on steel and steel products of the American Iron and Steel Institute, which is a private organization, studied the basic, inter- mediate, and finished product prices, for Avhich definite maximum jjrices had been established by the Government and recommended what it considered " fair and reasonable " differentials. It_app£ars tliat the promulgation of these difierentials and their enforcement V was left rn Jnr ' ^ - '■ \ 1 1 \ t - MO - . sea REUkTlVC PRICEJ OF ; COTTCMUNTLF« 5 ao 3!ADC Cl,aT 130-175 LBIPERTW BV MONTHS 0ANUAirCa5-"DECQ^lERiaK /iv-EEACE QUOTED PR1CE5 JULY,iai"ajLXlecially true in the case of cotton fabrics and chemicals (see pp. 298 and 338). ^ A complete schedule of sole and belting leather prices will be found on p. 750. GOVEEITMENT CONTROL OVER PRICES. 323 Upper leather: With the prices of hides and skins, harness, sole, and belting leather fixed, there still remained the task of determining maximmn prices for upper leather. The lack of sufficient cost data and the proposed inauguration of a system of price fixing for shoes delayed the adoption of a fixed price schedule for upper leather, however, and it was only within 10 days of the signing of the armis- tice that any definite action was undertaken. Before the prices adopted had been announced, hostilities had ceased, and on November 22, 1918, the price-fixing committee notified the trade that there was no longer any necessity for putting the agreed prices into effect.^ jSwmmari/.—ThQ control of prices in the hide and leather industry began with the control undertaken by the British Government, which was first instituted in December, 1916. This was followed by cen- tral allied purchasing upon the part of all the allied Governments even before the United States entered the war, and was afterwards continued by central allied purchasing and allotment. Under the British control of importation and the British allotment of hides and skins and leather to war industries prices were established first upon the raw hides and skins, soon after upon leather, and to a considerable extent upon leather manufactures. The control of hides and skins prices was complete, the control of leather prices extensive, and the control of leather manufactures extended to shoes, both Army and civilian, and all other items of leather manufacture which entered into British and other Army contracts. The American control of these commodities followed in general outline the methods already laid down by the control exercised under the British Government. It differed mainly in that the neces- sity for control was not so materially apparent in America, and that the control over leather and the manufactures of leather never ex- tended far beyond the field of Government purchases. Indeed, at the signing of the armistice price fixing had not ad- vanced beyond raw hides and skins and several intermediate products, such as sole, belting, and harness leather,^ and even the maximum 1 The prices adopted were based on a 6 per cent return on the investment of the tan- ners and had been submitted to the price-flxing committee by the hide and leather section of the War Industries Board. The trade, however, objected at first to the limitation of their profits to 6 per cent and contended that because of the risks entailed due to unex- pected changes in style, etc., they were entitled to at least 8 per cent. This return, in tbe opinion of the price-fixing committee, was much too large, for the cost data submitted by the Federal Trade Commission showed a turnover of 21 times per year ; and on such a basis a return of 8 per cent meant an annual profit of 20 per cent. The figure finally agreed upon (which never was put into effect) was based on a. 6 per cent return. 2 Had the war continued, an elaborate system of price fixing extending not only down through the various fabricated products, but also to the ultimate consumers, might have been put into effect. The plans of the War Industries Board provided for the elimination of all unnecessary styles and the establishment of a system of price classification for each grade of shoes. Provision was also made for a system of manufacturers' serial numbers, which would have enabled purchasers to ascertain both the name of the manufacturer of any shoe and the price at which such shoe ought to retail. 324 HISTORY OF PRICES DURING THE WAR. prices applied to these were never, in many instances, reached on the open market.^ Manila Fibers and Hemp. The extraordinary needs of the United States Navy and the United States Shipping Board for rope and cordage of all varieties, made significant the rise in the price of manila hemp during 1917 and 1918. The United States Government by the middle of 1918 was consuming virtually all the manila ro|)e manufactured in the United States, and as our demands increased, speculation grew. Indeed, our entrance into the war stimulated speculation within the trade to such an extent that by June, 1917, manila hemp was selling for 24 cents per pound, or approximately 207 per cent above the 1913-14 level. The price continued to rise through the second half of 1917 and in January, 1918, reached $0.285G. It was evident that this condition could not be allowed to con- tinue, especially in view of the growing demands of our new mer- chant fleet, and in late March, 1918, the War Trade Board undertook to regulate the price of manila hemp. It relied upon its power of controlling exports from the possessions of the United States as the machinery for enforcing the prices adopted. Manila hemp was, therefore, placed on the restricted list, and after March 31, 1918, no shipments from the Philippines, either to the United States or other countries, were allowed without permits or licenses from the War Trade Board. With the exports of manila hemp subject to license requirement, it was relatively simple to add conditions to be met before an export license could be secured. One condition stipu- lated was that " persons desiring to ship hemp or manila fiber from the Philippine Islands, whether to the United States or elsewhere [had to] show to the satisfaction of the War Trade Board or its representative, bj^ affidavit or otherwise, that the hemp or manila 1 This was especially true of hides and skins, as shown in the following table: Fixed and quoted prices of cattle hides. [Averages.] Packer. Country. Imported. Fixed price. Quoted price. Per cent quoted to fixed. Fixed price. Quoted price. Per cent quoted to fixed. Fixed price. Quoted price. Per cent quoted to fixed. 1918. April $0.2412 .2912 .2688 . 2.588 $0.2123 .2837 .2688 .2588 88 97 100 100 $0.1867 .2317 .2133 .2108 $0.15.50 .1855 .2096 .2079 84 77 98 99 $0.3300 .3300 .3270 .3270 $0.3198 .3299 .3263 .3250 97 100 August, September, and Oc- 100 November and December 99 GOVERjSTMElSrT COE'TROL OVER PRICES. 325 fiber covered by the application for a shipping permit or export license" had been bought at a certain price in accordance with a schedule prepared by the War Trade Board.^ Moreover, in order that the price of fibers might be controlled after they were landed in the United States, a further condition was added requiring the con- signment of all such shipments to the Textile Alliance for the ac- count of whomsoever the shipper might designate.^ The price fixed for the standard grade of hemp was 17 cents per pound f. o. b. Manila, or about 25 cents at New York. This price, though slightly lower than the current market fi^ire, was admittedly high. It was made high, however, in order not too seriously to prejudice the interests of the many importers, manufacturers, and producers by a " precipitous price adjustment."^ It was to remain in effect for four months. As the end of that period approached, the War Trade Board asked the price fixing committee to take over the regulation of manila fiber and hemp.* A lower price than that fixed in March was recommended, and on Jul}^ 24, 1918, the price fixing committee fixed a price of 14 cents per pound for grade " I Current " manila fiber f . o. b. Manila. This price was temporary, however, since there had not been time to secure sufficient basic in- formation from the trade. It was to be effective until August 31, before which time further details relative to an appropriate price could be secured from the Governor General of the Philippines and the various consumers. Neither the fixing of the price of these fibers nor the figure adopted appear to have pleased the native growers, for immedi- ately complaints were heard. Both the Philippine Legislature and the agricultural interests asked for the removal of price control, and to their requests was added that of the Governor General. Accord- ingly, when the time for the expiration of the fixed fiber prices ap- proached, the price fixing committee decided not to renew them, and on August 31 manila fiber and hemp prices expired by limitation. Burlap. The abnormally high price of burlap resulting from the flagrant speculation which took place in 1917 and 1918 in India, the United Kingdom, and the United States, led, in the fall of 1918, to an order ^ This schedule, which used as a base the price of grade " I Current " manila hemp, is published on p. 705 of this volume. Prices were fixed for the various types of fiber both at Manila and at New York, 2 Exception was made, however, in the case of shipments to the United States Govern- ment. The Textile Alliance In turn released such shipments to the iiltimate consignee only upon receipt of a guaranty that all regulations governing trading in hemp in the United States would be abided by. = See minutes of price-fixing committee, July 24, 1918. * The Philippine Islands being a possession of the United States, it was felt that the price-fixing committee had authority to fix prices there. 326 HISTORY OF PRICES DURING THE WAE. of the "War Trade Board which prohibited the private importation of all burlap unless under order of the War Industries Board. Action was also taken relative to the lowering of the price of burlap; and the members of the trade, anticipating that prices would be decreased as a result of negotiations entered into between the Governments of the United States and Great Britain, entered into a voluntary agree- ment with the War Industries Board whereby the price of 40-inch, 8-ounce burlap was fixed at Pacific ports at 13.6.^ Burlap- bag prices were also fixed on the above basis f. o. b. factory plus the cost of manufacture and a margin of 5 per cent. This agreement applied to all contracts entered into prior to October 4, 1918, and expired shortly after the signing of the armistice. WHC mro MDOi I«M5CTB or PBCES Of — LUMBER ALL connoDiTO" LUMBEO.EW QUAI?rcBO, •au. coMMca-r ko"by Nut-iBro». 190 •• .9.8 AV-^RACE QUOTED PRICES JlJCi" i9i3,-JUNE Ol*- lOO uo i£ni 1914 1913 1916 1917 1910 MO LuX mXr 444^ M^ 4Xv MX (20 220 f les /V lao ItO / ' 1 f 160 i J / y»>* 100 -«v,.^Ss;:^ ,/ /] lOD *>«/'^~-^ -7 60 1 ? g 5 M R p 3 S 5 S S h : iU' i ft^ 1 1 i9ia 1 1914 f 1013 r loie 1917 i9ia Lumber. Southern yelloio pine. — Tho demand for over a billion feet of lumber for the construction of cantonments confronted us immediately after the outbreak of war. Although the ultimate supply of structural timber in the United States was far in excess of the Government re- quirements, the prompt de- livery of so large an order threatened to put an unusual pressure on the lumber mills and to send prices quickly upward. The brunt of this heavy order was to fall on the southern yellow-pine mills, for the southern pine was not only the leading construction timber in times of peace, but the location of the pine forests near the many cantonments in tho South and West gave it the preference over the distant Douglas fir of the Pacific coast and over the scanty stands of hemlock and east- ern spruce. The first step in the creation of our war machine there- fore depended upon the southern pineries, and the first great prob- lem of price fixing arose in connection with that species of lumber. The Government was forced to commence the work of regulating Weighted index Bumbers of prices?. — L/um- ber ; and "All commodities." — By quarters, 1913 to 1918. (Average quoted prices, July, 1913, to June, 1914=100.) 1 Other prices which were fixed for various weights of burlap at the different ports will be found on page 679. GOVEEISTMENT CONTROL OVER PRICES. 327 lumber prices by the very necessities of the hour — ^the securing of the raw materials for our training camps without delay. It was evi- dent that if the individual contractors each attempted to secure the lumber needed for each cantonment in the open market through the medium of the various middlemen and wholesalers, lumber prices would shoot upward mider the stimulus of this exceptional demand. The rise in prices, however, would have been the lesser evil. The lumber industry is intensely competitive and the thousands of mills would have bid strenuouslj^ against each other to secure the Gov- ernment business with the result that the cantonment orders would have gravitated to the largest mills, or to the mills offering the great- est price concessions, thus giving some mills more orders than they could fill immediately while other mills had no Government business at all. Thus the necessity of price fixing grew out of the need of apportioning orders between all the lumber mills in accordance with their productive capacity and their proximity to the cantonment sites. As a basis of price fixing nothing short of pooling of the entire southern yellow pine industry was necessary, and the committee on lumber appointed by Mr. Baruch in April, 1917, to act under the Eaw Materials Division of the Council of National Defense in- stinctively recognized this fact. The lumber committee at once called representatives of the southern pine mills to Washington, and at the instigation of the lumber committee these private lumber men went home to form emergency lumber bureaus that would have power to represent each branch of the southern pine industry. These southern pine associations were quickly organized and men empowered to represent the southern pine industry almost immedi- ately began to hold conferences with the lumber committee in re- gard to the establishment of a uniform price of yellow pine lumber for Government cantonment requirements. Finally, on June 13, 1917, the average price of $20 a thousand board feet for canton- ment stock, which was equivalent to $23.20 for the run of the mill, was set by voluntary agreement between the Government and the lumber men. This price was not based on a study of costs, but, inasmuch as the price allowed was higher than the market price of $17 a thousand which prevailed earlier in the year, it was believed by representatives of the Federal Trarice, but this was an exception to the general rule. Earrdwoods. — ^The number of species of hardwoods is so great, the conditions of production between the various species and even between the same species in different States are so diverse and the special uses which give each of these species a special market are so varied in normal times that there is no consistent price structure between the hardwoods as there is in the case of softwoods under the leadership of Southern yellow pine. The Government had urg- ent need of certain grades of some hardwoods for specialized war purposes, and it bought practically the entire supply of these choice grades. Walnut for gimstocks and airplanes was the premiere wood of the war, justly called the "Liberty tree"; mahogany for airplane propellers was an important supplement to walnut; locust for tree- nails was an essential for wooden ships, while ash and hickory for handles and vehicles, oak for airplane propellers and artillery wheels, and birch for airplane ply-wood all did their bit in the military program. The Government did .not fix the price for any of these woods, but since it established a fixed schedule for its own pur- chases, and «ince it was practically the sole purchaser in the case of walnut, locust, and mahogany, its action virtually amounted to price- fixing. The prices paid by the Government for these special grades were relatively high in order to cover the entire cost of production, including that of the lower grades of wood for which there was no immediate market and in order to stimulate" the production of vital war material to the maximum. The market prices of the lower grades of the war woods, and the market prices of woods not used in the war — in sharp contrast to the prices of walnut, mahogany, and locust — were low. The prices of hardwoods in general did not rise as rapidly as the softwoods or as the prices of all commodities. The demand for furniture and for other wood products had dwindled to a very low ebb during the war, and hardwood logs that were cut as a by-product of other logging operations were constantly sold at relatively low prices. In view of the peculiar differences that exist between hardwood and softwood markets, however, the difference GOVERNMENT CONTROL OVER PRICES. • 331 in the prices of softwoods and hardwoods can not be attributed to the fact that the prices of most, of the softwoods were j&xed whilo the prices of the hardwoods were luicontrolled. Building Materials. Prices of the basic building materials were fixed during the war, but the scope and effect of price control varied considerably with the different building materials. The price of the lumber that was used for constructing cantonments, ships, and aeroplanes to the extent of 20 per cent of the total annual production was controlled by the Government from the beginning to the end of the war for most of the important kinds of lumbers and for both Government and pri- vate purchases. The price of the Portland cement that was an important material for a great variety of construction work from Government buildings to fortifications and even ships was fixed for Government purchases at the important producing centers. The price of structural steel, in common with all other kinds of that vital war material, was fixed in all markets by the Government. The prices of other building materials such as common brick, hollow building tile, sand, gravel, and crushed stone were controlled only in localities where there was a large volume of Government con- struction work. This last-named group of building materials was in heavy demand only in the congested district of the East, and the price control there exercised in behalf of 'Government purchases had only an influence upon local prices. The prices of 33 building ma- terials that consisted of partly manufactured products of the basic building materials such as metal lath, metal-corner beds, etc., were not directly controlled at all. Price fixing in the field of building materials had certain distin- guishing characteristics in spite of the wide dissimilarity in the com- modities composing this group. These attributes of price control in construction materials may be noted under four main heads. The last head is not peculiar to building materials. 1. The prices of building materials were not fixed at a level that would stimulate production but rather at a level that would actually curtail the output of materials for construction. Since the volume of private building in 1918 had dwindled to 20 per cent of its normal physical magnitude and since the combined construction program of all the Government departments was not over 25 per cent of the nation's normal building operations there was no necessity for in- creasing the production of the raw materials for building. In fact private building was regarded as nonessential during the war, and every effort was made by fuel curtailments, refusal to grant priorities for cars, etc., to discourage normal building. The result of these Govermnent restrictions combined with the high prices of building 332 ' HISTORY OF PRICES DURING THE WAR. materials was to reduce the demand for new building faster than the manufacturers of building materials could curtail production. The Government consequently had no diificulty in securing sufficient sup- l^lies of the common building materials, because the plant capacity for producing these was far in excess of the reduced demand. In fixing prices the policy was accordingly adopted of allowing the pro- ducers of building materials such a price as would yield them only a normal return on their investment. "V^T^iere the normal return on the investment was low on account of keen competition — as it usually was in the building materials industries — only a low return on the invest- ment was allowed. Thus the prices fixed on common brick allowed an average net return of only 3.76 per cent, and the cement prices yielded 6 per cent on the investment. It also happened that lumber X^rices fixed on the cost of production of March, 1918, were not in- creased later in spite of advancing labor and materials costs. The Government thus held down the prices of building materials because the production w^as in excess of all essential war needs, and it was desirable in the interests of war conservation to enforce a price so low that it would actually close down the marginal plants. The effect of this low-price policy is shown by the fact that the average price of lumber and the average price of cement increased only 73 per cent between 1913 and the end of 1918 as contrasted with 102 per cent for all commodities. There were a few exceptions to the policy stated in the foregoing paragraph. Structural steel shared the high prices allowed to stimu- late steel production, but nevertheless the use of structural steel was curtailed wherever possible so that its rise in price was due entirely to its relation to other steel and not to a demand for it for building. The prices paid by the Government for certain rather scarce woods such as walnut, mahogany, locust, etc., were purposely made high in order to stimulate their production. 2. Price fixing in the building industries had for one of its main objects the stabilizing of the industries. Industries producing build- ing materials were accustomed to compete most strenously within their own ranks and with each other. Southern pine lumber com- batted Douglas fir lumber, hemlock, and spruce; North Carolina pine competed with Georgia and Alabama pine; the small mill competed with the larger in the same territory ; while all the lumber mills fought cement and brick. This price competition while en- tirely satisfactory to the consumer in times of peace was unsatis- factory to the Government in times of war, because it meant irregu- larity of production, delay in placing orders and competition be- tween Government departments. The Government always preferred to deal with one central body representing the whole trade that could guarantee large deliveries and allocate the orders fairly be- GOVEEJSTMElSrT CO]SrTEOL OVER PRICES. 333 tween its members. Only by fixkig a stable _price for the tntire in- dustry would the temptation for rival mills to secure business by cutting prices be entirely avoided. The paramount necessity was to secure unity of action among the trade to win the war and to avoid the wastes and delay of competitive strife. The result of the price-fixing policy was thus to solidify industries. Every important building-material group patched up their internal differences for the time being and 'appointed a war-service com- mittee to represent the entire trade. This war-time concentration will leave lasting impressions. The rise of the National Lumber Manufacturers' Association, the formation of an association of brick manufacturers can be directly traced to the war. Price stabilization inevitably fosters the industrial combination that is necessary to sus- tain a stable price. In this respect price fixing of building materials was no different from price fixing in any other field. 3. Notwithstanding the tendency toward a uniform price policy, the fixed prices of building materials varied more from one locality to another than almost any other group of commodities. While the prices of lumber and steel were fixed at single base points, the prices of sand, gra\^el, and crushed stone were fixed differently in each lo- cality, fixed cement prices varied at 40 different producing points, and common brick prices varied in the 16 zones in which Government purchases were made. These variations are to be attributed to .the fact that brick, cement, sand, gravel, and crushed stone are produced near the locality where they are consumed, being too cheap in propor- tion to their bulk to be transported far. Consequently the market for these bulky articles is a local one and the price is determined by the local cost of production and the local demand. In fixing prices each producing center accordingly had to be separately considered. This was especially true of brick, sand, and gravel. While cement prices differed considerably, there was still a common price structure with fixed differentials. 4. A common result of price fixing is standardization. It is essen- tial in fixing a uniform price that the grade and quality upon which the price is fixed does not vary, for otherwise the value received will vary in spite of the fixed price. If the goods are not already stand- ardized, they must be reduced to uniform types before the prices can be fixed. Basic raw materials are usually standardized and lumber, steel, and cement were already gauged by certain definite mechanical tests. The sizes and quality of common brick, however, varied greatly and one of the causes of variation in brick prices was the difference in size and quality. The act of fixing the prices of com- mon brick stimulated a movement toward standardization and this may be one of the lasting results of fixing the price of bricks. 334 HISTORY OF PRICES DURING THE WAR. Portland cem£nt. — Portland cement ranked next in importance to lumber as a war building material. Its use in armories, barracks, gun placements, trench linings, bomb-proof shelter, incinerators, munition factory buildings, warehouses, barges, and reinforced con- crete ships gave cement prominence in the war program as early as April, 1917, and the congestion of Government orders at certain points along the Atlantic seaboard threatened to cause local short- ages of cement and sharj) rise?; in cement prices in the districts of heavy Government demand. The production of cement for the country as a whole was ample for the increased requirements of war even without drawing upon the excess productive capacity of the cement mills. In fact the declining consumption of cement that resulted from the curtailment of normal building operations had more than offset the new orders from the Government. Since Port- land cement is a bulky commodity, however, it is not profitable to ship it far from the mill, and since the limestone and coal that are the chief materials used in its manufacture are widely distributed throughout, the United States, conditions have been favorable for the establishment of cement mills in nearly every State. Each cement mill thus enjoys a local monopoly, the radius of which is determined by its cost of production and by the proximity of other mills. The cement mills of the South which possess an abundant supply of a linaestone almost ideal for cement making, joined to a cheap supply of coal, can produce cheaper and send their product farther than the mills near New York Cit}", which possess fewer advantages in re- spect to raw materials. Nevertheless the proximity to the great centers of population enables the mills in New York and the Lehigh district in Pennsylvania to offset the advantage of the southern mills and allows them to hold the markets in the big cities against their southern rivals. Thus the cement industry is split up into many local markets which are connected by a series of price differentials, but which nevertheless enjoy a large measure of independence. It is therefore possible for local shortages of cement to exist in some communities, notwithstanding the existence of an oversupply in other communities, and this is particularly true when the tremendous concentration of war goods pouring towards the Atlantic seaboard strained the normal means of transportation and put an embargo on bulky goods. To secure an adequate supply of cement for the Gov- ernment it was therefore necessary to allocate the supply and to fix the prices at the points of congestion. The Portland cement industry had a large degree of cohesion be- fore the war for the purpose of pushing the sale of cement in com- petition with lumber, brick, and stone, although the price competition between the various cement mills had bordered on the cut-throat va- riety. This organization nevertheless facilitated the quick appoint- GOVEEIsrMElSrT COIsTTEOL OVEE PEICES. 335 ment of a " cooperative committee on cement " under the Council of National Defense on April 21, 1917. This committee, composed of representatives of the industry and of the Government at once began to act as a clearing house for assembling trade information prepara- tory to advising the coimiiittee on raw materials of the Council of National Defense as to available supplies and prices of cement. While this committee was acting, many purchases of cement were made by the Army and the Navy at no definite price, but with the understanding that a fair price was to be fixed later. On December 18, 1917, the first committee was dissolved and a war service com- mittee on Portland cement was organized. No prices were fixed, however, until the price-fixing committee in April and May, 1918, after an investigation of costs by the Federal Trade Commission fixed prices for the Army and Navy purchases for the six-months' period ending December 31, 1917, the four-month period ending April 30, 1918, and the four-month period ending August 31, 1918. Later on, August 23, 1918, the price-fixing committee established prices for the four months ending December 31, 1918. The prices set for 1917 applied only to Army and Navy purchases and they became effective when accepted by the industry and the purchasing departments. This first price list, which has a retroactive effect, covered 30 different producing points, and the prices varied from $1.30 a barrel in Texas to $1.90 a barrel in California. The second price list applying to all Government purchases for the first four months of 1918 was the same as the first. The third set of fixed prices for the four months ending August 31, 1918, marked an ad- vance of as high as 45 cents a barrel for the low-cost mills, dropped prices on some of the high-cost mills in the Pacific coast States, and reduced the maximum variation in cement prices to 35 cents a barrel and the average variation to about 20 cents a barrel. The fourth price list for the four months ending December 31 was virtu- ally the same as the third price list, except that the prices did not include bin inspection and a reduction of 3 cents a barrel was made for the value of that service. The chief results of the price fixing of cement were to prevent a rise in price at a few congested points along the Atlantic seaboard and to facilitate the prompt delivery of cement on Government or- ders by eliminating price cutting with its attendant waste, confusion, and irregular production. The main current of cement prices throughout the country as a whole was not substantially affected. Only 11,813,076 barrels of cement were allocated at this fixed price during 1917 and 1918 out of a total production of 92,814,202 barrels in 1917 and 71,632,000 barrels in 1918. The price of Portland cement to the general public was never fixed, and this ranged about 30 cents a barrel higher than the price 336 HISTOEY OF PRICES DURING THE WAK. fixed to the Government. Price fixing leveled up market prices to some extent thereby giving the low-cost mills large profits, while limiting the marginal mills to a low return. The concentration of production at the largest mills equipped with the most modern machinery would have enabled the Government to have fixed ce- ment prices at a lower level, but the pooling necessary to bring this about involved too many practical administrative difficulties to jus- tify the adoption of this policy. The prices fixed in 191Y yielded the cement industry as a whole 12 per cent on its investment, and of course individual mills reaped a much higher rate, but subse- quent price fixing reduced this margin to 6 per cent merely by maintaining the status quo in the face of advancing costs. The general supply of cement was so ample, as compared with needs, that the Fuel Administration on April 13, 1918, reduced the fuel allotment of the cement mills to 75 per cent of normal on the theory that part of the fuel used in the cement industry could be better employed in other war industries. There was consequently no oc- casion for stimulating cement production by high prices, and the lowering of the margin of profit for the purpose of curtailing pro- duction was entirely justified. Cement prices rose in the open market less than any other basic building material during the war, and the reason for price fixing in the field of cement is to be found in the desire of the Government to prevent the stimulation of prices which its own large demand would normally have caused in certain congested building areas. Conmnon 'brick. — The markets for conunon brick are confined to points near the localities where brick is made, and consequently questions of supply and prices vary in the different localities. The demand for common brick for both Government and civilian use during the war declined to probably one-fourth of normal, or to ti greater extent than was the case of other building materials except stone. A shortage developed, however, in a few of the large eastern cities in the congested building districts, and prices for brick were there established on all Government orders. The price of common brick in New York, Philadelphia, Baltimore, and Washington was the first to be formulated ; the other ]3rices were not announced until after the armistice, but they had a retroactive effect and applied to all purchases made at tentative prices. Prices fixed by the Govern- ment for light-burned common brick varied from $9 a thousand brick in Chicago to $15.50 a thousand brick in Philadelphia. These differences were, in some instances, due to variation in the size and quality of the brick, but in most cases they were due to differences in the local market. Thus the supply of brick in New York average a price of $9.50 per thousand, which was originally fixed for the period ending October 31, 1918, for the accumulated stock left over GOVERi:>J"MElSrT CONTEOL, OVER PRICES. 837 from 1917, which had been produced on the lower 1017 level of cost. The Philadelphia brick of the same general type was fixed at $6 per thousand higher in price because the Philadelphia brick was produced during 1918 when labor was high, due to the competition of the shipyards. The Philadelphia brick was also larger in size and of somewhat better quality than the New York brick, but this does not fully account for the difference. It is probable also that a larger marginal profit was allowed the Philadelphia brick producers than to the New York brick men; for the price-fixing committee in general adopted the policy of fixing prices so that producers would receive their prewar level of profit. The profits of the New York brick makers were very low before the war because of the keen com- petition of the brick men along the Pludson Eiver. The price-fixing committee allowed the brick men, as a whole, only 3.76 per cent on their investment. The effect of Government price fixing on brick was to enable the Government to purchase brick at slightly below the market price during the latter part of 1918 in the congested dis- tricts of New York and Philadelphia. Common brick prices rose very rapidl}'' in the open market during the latter part of 1918. The price fixed for Government purchases, while about equal to the mar- ket prices when originally fixed, were considerably below the market by the end of the year. Thus in New York, where the price fixed for Governm^ent purchases on light-burned brick was $9.50 per thousand beginning July 1, 1918, which was subsequently raised to $10.50 per thousand beginning November 1, the market price rose from $12.50 in July to $18 in December. Government price fixing exerted a definite influen:e only in the big eastern cities. Only 108,312,229 brick were allocated at Government fixed prices out of a total production of 5,864,909,000 in 1917, and about 2^ billion in 1918. The amount of Government purchases were thus small in comparison to the total common brick output, and as brick sold to the public were delivered at market prices. Government price fixing had no appreciable effect on the average prices of brick throughout the country. Price fixing, even in the case of brick, however, had a tendency to- bring out some degr^ of combination within the industry. An asso- ciation of common brick manufacturers was formed on July 26, 1918, which comprised manufacturers producing about 1| billion brick annually, or about 20 per cent of the normal production. An influ- ence also was exerted in favor of standardization of brick in the different localities; this, too, is an evidence of concentration, but on the whole the brick industry still remained highly competitive and disorganized. A nation-wide control over prices was therefore less eft'ective than in the case of cement, but since brick was of rather 125547 °~20 22 338 HISTORY OF PRICES DURllSTG THE WAR. slight import auco, liowever. iii the vvtir program this price control was also less necessary here than elsewhere. Hollow hviJding tlh. — Hollow building tile is also a local product whose use greatly diminished during the war. Prices were, notwith- standing, fixed at the principal producing points for the 176,703 tons of hollow building tile used by the Government. Prices were first fixed for the period ending July 1, 1918, and they were later ad- vanced to cover Government purchases made from July 1, 1918, to the period ending December 31, 1918, Gypsum icall hoard and plaster hoar-d. — The Government require- ments for gypsmu wall board and plaster board during the war were 100 per cent over the capacity of the plants, and it was necessarj- to take over the entire output of these materials for Government use and to authorize plant extensions. It also became necessary to allocate orders for Government requirements, and pending the estab- lishment of a fixed price the orders were allocated at tentative prices. On February 27, 1919, the price-fixing committee established maxi- mum f. o. b. mill prices for wall board for two firms at Chicago and for tv.o fii'ms at Los Angeles, and maximum f . o. b. mill prices for plaster board at Chicago. New York, Buffalo, Hampton, Va., Passaic, X. J., Fort Dodge, Iowa, and East Newark, N. J. Since the total production of wall board and plaster board compri^d only 10 per cent of the total value of gypsum products, price fixing of these two products had no pronounced effect on the price of raw gypsum. Allocations to the amount of 52,121,060 square feet of wall board and plaster board and to the value of $956,323 were made at the fixed prices. Srnid, gravely and- crushed stone. — Sand, gravel, and crushed stone are consumed near the localities where they are produced. During the war there was an acute shortage of these materials in the con- gested district of the East, and it became necessary to fix the price and allocate orders in the Philadelphia, New York, Baltimore, Wash- ington, and Norfolk districts. A total of 2,949,879 tons of sand, gravel, and crushed stone, valued at $3,009,573, was allocated at the •fixed prices. The exact prices fixed on each order in each district are shown in the appendix. • Chemicals. Nitrate of soda. — Before the war virtually all of our nitrate im- ports were devoted to the production of fertilizers, and our needs in 1913 equaled more than 625,000 tons. With the outbreak of the European War and the placing of munition orders with American manufacturers, our requirements for nitrates increased considerably, and by 1916 our imports of nitrate of soda had grown to 1,218,423 pounds, an increase of almost 100 per cent. The Chilean market, of GOVEEIvrMEl^T COISTTROL OVER PRICES. 339 course, felt the effects of the stimulated demand following the declaration of hostilities, and the price of nitrate of soda rose con- siderably,^ It was not until after the United States entered the war, however, when the War Department had begun actively to compete in the Chilean market against both American private buyers and the representatives of the allied Governments, that prices really soared. In September, 1917, accordingly, nitrate prices v^^ere more than twice the average for 1913-14. The imx^ortance of nitrates to the war program, however, made essential the elimination of any haphazard competitive system of purchasing. Accordingly, in October, 1917, the Allied Governments began negotiating with the Chilean producers in the hope of securing an adequate supply of nitrates at a price more reasonable than was then being paid. These negotiations were consummated on Decem- ber 10, 1917, and resulted in the Allied Governments securing a vir- tual monopoly over the output of Chilean nitrates. A nitrate execu- tive was appointed by the Allies with headquarters in London, and all purchases of nitrate of soda in Chile for the various belligerents were concentrated in his hands. It was only through this nitrate executive that the various Governments could secure supplies by allo- cations made only on the basis of minimum requirements." Prior to the American entry into the war virtually all of the nitrate of soda brought into the United States was imported by four firms who controlled to a large degree the American sales of this commodity'. The machinery for nitrate distribution, then, was highly concentrated, and it was but logical that so far as possible it should be kept intact. Accordingly, it was arranged by the War Industries Board that these importing firms purchase the total amount of nitrate of soda allocated to the United States by the nitrate executive, and continue its distribution as in normal times. It was necessary from the beginning, however, to distinguish between the two types of American demand. First, there were the military needs which the importers agreed to supply at actual cost ^ plus a nominal expense fee. And, second, there were the requirements of the fertilizer manufacturers and of other civilian nitrate users. 1 Nitrate of soda sold for $3.60 per hundredweight in February, 1916, an increase of 50 per cent over its prev/ar average. ^ The estimated minimum requirements for the United States for the year 1918 were as follows : Tons. For munitions 1, 100, 000 For chemicals 215, 000 For commercial explosives 185, 000 For fertilizers and the Department of Agriculture 300, 000 Total ^ 1, 800,000 « The cost of the nitrate deilivered was to he aa average price based upon the receipts for each month. 840 HISTORY OF PRICES DURING THE WAR. To these consumers the importers were to distribute only such amounts of nitrate as were allocated by the War Industries Board,^J and for their services they were paid a commission of 2^ per cent over the cost of their product landed in the United States. The War Industries Board, on tlie other hand, stipulated that they would allow no concerns other tlian the four v.diich entered into this agree- ment to import any nitrates into this country. In order that an equal price might result for all buyers the Shipping Board estab- lished a uniform shipping rate from Chile to the United States. Furthermore, the War Industries Board made arrangements for the shipping of the necessary coal, fuel, oil, etc., required for the manu- facture of nitrate of soda, and in this way a steady output was as- .surcd, while at the same time any manipulation of prices by Chilean speculators under the claim of ostensible high costs was eliminated. The first deliveries under this pool arrangement Avere made in Jan- uary, 1918. It soon becanie apparent that the control over the vrhole nitrate situation in the United States would require some supervising body, for the supervision of distribution, the fixing of pool prices and the clearance of all contracts covering the imports and sales of the approved importers were matters too vital to the war program to be left unregulated. For this purpose the nitrate commission of the United States, a body made up of representa- tives of the four approved nitrate importers and a representative of the War Industries Board, was created. Their main function, however, soon developed into the control of nitrate prices. The nitrate executive at London, determined each month an average pool price and on the basis of this figure the average monthly price in Chile for the United States purchasers, was computed. Consider- able difference, of course, still existed between this Chilean price and the price of nitrates delivered in the United States; for there were many charges such as hauling, freight, insurance, exchange, and the like, which had to be added. And it was the determination of this final landed price that formed the greater part of the task set before the nitrate commission." From the point of view of its primary purpose the plan of nitrate control was successful as is evidenced by the fact that during the ' The amount of nitrates to he purchased for distribution to civilian consumers was limited however, to an amount equal to their total imports for the calendar year 1913. From this amount were deducted such stocks as had been purchased in 1017 and which had not been shipped from Chile prior to the beginning of lOlS. -This landed pool price varied from $4.10 per 100 pounds in May to $4.r)u in December. For the first four months of lOlS no definite pool price was determined and tentative figures of $4.25 and .?4.3.'5 per 100 pounds were used for billing purposes. It should be stati d that these prices were not exact and wore based on the figures available from bills and vouchers. Tentative monthly prices were usually made and when all necessary liguies became available, the nitrate commission arranged for actual prices and saw to it that the importers made adjustments with their customers on the basis of these fir.al prices. GOVEEN'MEIsrT CONTHOL O^HilR PEICES, 341 entire period of the war all needed nitrate was secured.^ That the price was strictly controlled at the lowest possible minimum seems also beyond doubt. Heavy cwids. — Sulphuric acid: Arrangements were made by the Army and Navy with the manufacturers of heavy acids late in 1917 relative to the prices to be paid by the United States Government for acid supplies.^ There was no instance of price fixing, strictly speaking, in the acid industry until the sunmier of 1918. The agreed prices of late 1917, w^hich applied to the governmental purchases of HoSO^ were contract prices only and may be considered in a measure similar to any other long-time commercial contract. It appears, however, that there was some doubt in the minds of the Government authorities as to the advantages derived from the agreed sulphuric acid price, and in early 1918 they instructed the Federa.1 Trade Commission to look into the cost of producing acid in this country. The result of this investigation shovred a great di- vergence in costs between the several types of producing plants, and it was apparent that no price could be fixed which would limit the returns to all producers within the same bounds. There were, for example, the high-cost chamber-process producers, upon whom the Governnient was dependent for 1,000,000 tons of sulphuric acid in 1918. Secondly, there were those manufacturers who obtained their sulphur as a by-product from the smelting of zinc and copper ores. And finally there were the low-priced producers who used the mod- ern contact process to produce their sulphuric acid. The large varia- tion in the costs of these three types of producers, upon all of whom the Government was dependent for its supplies, made it e\ddent that a price which would give the chamber-process manufacturers a mod- erate profit would result in an abnormally high return to the con- tact producers. The solution first considered was a series of indi- vidual prices to be applied to the products of plants in accordance with the process used in the manufacture of sulphuric acid, but this finally was deemed impracticable. The possibility of commandeer- ing was considered and dismissed because of difficulties involved, and the fact that the military needs were hardly large enough to war- ^ Mr. B. M. Barnch, chairman of the War Industries Board, in a statement puh- lished in the Federal Trade Information Service of Dec. 24, 1918, says that there was no halting at any time during the war in the manufacture of war materials which depended upon nitrates. -As a result of the negotiations entered into between the military authorities and the manufacturers of sulphuric acid, the price of sulphuric acid to the Government was fixed for the first and second quarters of 1918 as follows : Per ton. 00° B $18 66° B 30 20° oleum 35 These prices did not apply to purchases made by subcontractors for explosive con- tracts for the United States or its Allies. 342 HISTORY OF PRICES DURING THE WAR. rant such action. JNIoreover, it Avas quite evident that the total needs of the country necessitated the stiiunhition of the productive capacity of the country in every possible way, and this meant the establishment of " fair and full prices," pix)vision for heavy plant depreciation and the obtaining of the fullest possible output from the highest cost producers/ Accordingly, a system of price fixing was decided upon Avhich allowed a uniform price to all consumers, governmental and civilian alike. It was believed that the excess-profits tax would lead to a leveling in the returns of various producers. On June 26, 1918, the acid producers met with the price-fixing committee to help determine upon a fixed price for their products. The negotiations resulted in the fixing of the price of 60° B. sul- phuric acid at the same figure which the Army and Nav;^'' were paying for their supply, namely, $18 per ton.- This price was con- siderably lower than the current market price and meant a reduc- tion of $7 per ton to the civilian consumer. With this price as a basis, the price for 66° B. was fixed at $28 per ton, a decrease of $2 from the former Government contract price.^ Similarly, the price of 20 per cent oleum, a highly concentrated form of sulphuric acid, was fixed at $32 per ton, which was $3 less than the agreed price of late 1917. These prices were to remain in effect for 90 days, with the United States Government having first call upon the entire out- put of the country or any part thereof which it required. Even these prices, however, do not appear to have been as low as the cost of producing sulphuric acid seems to have warranted, and by the end of the summer of 1918 the chemical section of the War Industries Board asked for the further lowering of the agreed prices. These prices were to expire at the end of September, and on the 26th of that month the producers of sulphuric acid appeared before the price-fixing committee to ask for a continuation of the June 26th price. The price-fixing committee, on the recommenda- tion of the chemical section, refused this request and recommended instead a series of prices which ranged from $2 to $4 lower than ^ The problems which faced thp chemical section of the War .Industries Board when they attempted to determine upon the method of acid price fixing to be adopted, are fully described in the final rei>orti? of the acids and heavy chemicals section of the War Industries Board, lOlD. 2 This price was supposed to yield a fair profit to the high-cost producers; i. e., mami- facturer-; who us'-d the chamber process, 2 This price was $7 a ton lower than the figure currently quoted on the market, and when compared to the spot quotations of two months previous meant a decrease of $17 per ton. The price for 66° B. acid was determined by adding to the price of th'» 60° acid a differential which covered both the large percentage of acidity in the higher strength acid and the cost of concentration. GOVER]SrMENT CONTROL OVER PRICES. 343 those then prevailing. There was no longer the fear of losing the out- put of the high-cost producers. It was the opinion of those in charge of the military requirements that the extra supply secured for muni- tions by the curtailment of many nonessential industries and the output of the numerous new Government plants would be more than sujfficient to offset any such loss. Moreover, the figures of the Fed- eral Trade Commission showed that the cost of producing 66° B, Sulphuric acid during the first six months of 1^18 ha d varied froin $1^ to $16 per ton/ while the pidc.a.J.x©dr^wa«-$S^f>©i'-4©Bv Indeed, the chemicaT section had recommended that in default of a lower price on sulphuric acid, " serious consideration should be given to the advisability of commandeering the output of the contact acid plants " before the end of the year." The suggested price of the price-fixing committee was finally accepted by the acid industry, and $16 was agreed upon as the jjrice of a ton of 60° B. sulphuric acid for the last quarter of 1918."' Nitric acid : Shortly after the determination of a Government price for sulphuric acid in the latter part of 1917, an agreement was reached with the producers of nitric acid, whereby they obligated themselves to supply the militarj^ and naval needs for 42° B. nitric acid at 7^ cents per pound. Toward the middle of 1918, however, the Ordnance Department began to experience difficulty in placing new orders at the agreed price. An investigation was therefore made into the costs of the concerns which were furnishing nitric acid supplies, and it was found that the approximate cost of manufacturing a pound of ^ The increasing costs of materials, labor, fuel, and transportation increased this cost considerably during the latter half of 1918. The prices recommended by the price-fixing committee, however, made a liberal allowance for this increase, for it was their desire to fix a price which would permit the acid manufacturers to use domestic pyrites, which meant a higher production cost than would have been the case had brimstone been used. Both raw materials were selling at almost equal prices, but most of the American plants were equipped for the use of brimstone rather than pyrites. The shipping shortage had virtually cut off the supply of Spanish pyrites, which had previously been the common raw material used in producing sulphuric acid, and various plants turned to the use of domestic brimstone. This led to a sudden growth in the consumption of the latter, and soon the demand threatened to exceed the possible production. Indeed, the reserve stocks were drawn upon and a serious depletion v/as threatened. 2 Note memorandum from Mr. A. K. Brunker, chief of the acids and heavy chemicals section of the War Industries Board, to Mr. L. L. Summers, chief of the chemicals division. ^A price of $25 per ton was fixed for 66° acid and $28 for 20 per cent oleum. In this connection it is interesting to note that had the war continued a vast economy in the factory cost of producing acids would have been obtained by the Government through the use of its new plants, which could have turned out 100 per cent Hr>S0.i at $15 per ton, while the fixed price for 20 per cent oleum' (104| per cent H,SO^)was $28 f. o. b. makers' works, or about $30 per ton laid down at consumers' works. The saving, there- fore, would have been approximately 50 per cent. This figure, however, does not take into consideration the cost of the Government plant, and thereby eliminates a large over- head charge. (Cf. memorandum by Mr. John M. Goetchius in the files of the War In- dustries Board.) 344 HISTCrA' OF TKICES DUrJXG THE AVAR. nitric acid was 7.14 cents.' This meant, then, that the average profit" realized on the agreed T^ cents price was but 0.36 cent. It was immediately apparent that the price of nitric acid to the Ciovermnent would have to be raised, and on July 26 the question Avas brought before the price fixing committee. It was necessary first to fix the price of sulphuric acid, however, since the price of nitric acid is in large part dependent upon the latter. On the basis of the sulphuric acid price of $28 per ton ^ for 66° B., the price of 42° nitric acid was fixed at 8 cents per pound for all consumers, ciA'ilian and Governmental, effective July 1, 1918, for the third quar- ter of the 3'ear. This price was continued, by agreement through the last quarter of 1918, and expired hy limitation on December 31. Con duel an. — With the cessation of hostilities came the end of the Governmental need for acids. The immediate fear of the trade Avas the potential competition of the newly completed GoA^ernment plants. ]\IorcoA'er, there at as the danger of a sudden fall in acid prices in con- sequence of the cancellation of contracts and the desire to get rid of surplus stocks. Accordingly, the War Industries Board Avas asked to continue its supervision of the acid industry and to relieve the trade of " a share of its burden in adjusting inventories and heavy Avarring stocks." The trade also asked for the continuation of price fixing, at least through the first quarter of 1919. The ]3rice-fixing ( ommittee did not feel that conditions warranted anj^ such action, and on December 3, 1918, they voted to discontinue the agreed prices of heavy acids after December 30, 1918. /Sulphur and 'pyrites. — Prior to 1917 approximately 60 per cent of the sulphuric acid consumed in the United States was made from Spanish ores. The shipping shortage of 1918, however, made neces- sary the curtailment of our pyrites receipts, and in March the War Trade Board issued an order restricting Spanish pyrites importa- tions to 125,000 tons for the six months following April 15. This amount, which was less than enough to filh our requirements, Avas distributed by the committee on foreign pyrites of the Chemical Alliance (Inc.), to the five importers who formerly controlled the 1 The cost of prodiicing 05 poimds of nitric acid, as givon in the report of the chemical section of the War Industries Board, was as follows : Kaw materials : Nitrate of soda •$-!. 2."> Sulphuric acid 1. 'Jo Total cost of raw materials 5. 60 Fair average manufacturing cost, including overhead 1. 18 Total cost of 95 pounds G. 78 Cost of 1 pound of nitric acid .0714 = On the basis of 100 pounds of ILSO^ being required to produce 95 pounds of HNO3, It appears from the above cost figures that )t;27 rather than $28 (the fixed price June 26) was used as the cost of a ton of H2SO4. G0VBR1^ME1n"T COITTEOL OVER PRICES. 345 r greater part of our foreign receipts, in proportion to the tonnage : imported by each in 1917. The cutting off of our sulphur supplies had a considerable effect ' upon the American brimstone industry, and the demand for the domestic product grew by leaps and bounds. The large demand for sulphur supplies and the essential part which sulphuric acid played in the war program, led to a more or less strict control over the brimstone industry during the spring and early summer by the War Industries Board. There are in the United States two companies which produce 99 per cent of all the sulphur entering* into domestic consumption, and the output of both was put under allocation by the War Industries Board. It appears, however, that one of these companies did not cooperate as actively and as wholeheartedly as was desired by the chemical section of the War Industries Board. The chemical au- thorities in Washington offered a resolution, therefore, which was passed by the War Industries Board and approved by tlie President on July 2, 1918, authorizing the virtual commandeering of the sul- phur-producing industry. The chief of the sulphur and pyrites sec- tion was appointed to represent the War Industries Board in con- trolling the production and distribution of sulphur materials, and he, together with a committee of the Chemical Alliance, adminis- tered the industry during the remainder of the war period. In the fall of 1917 the fertilizer committee of the Chemical Alliance had arranged for a price of $22 per long ton f . o. b. mines, for governmental purchases of sulphur, and this policy?' continued through the first half of 1918. The same price was maintained after the War Industries Board took control of the sulphur industry in July. Although there was at no time adopted any complete system of sulphur price agreements which applied to all purchasers, the control of supplies and the allocation thereof by the War Industries Board to essential consumers only, had the effect of a fixed price. Wood cliemicals. — It can hardly be said that wood chemicals were subject to price fixing in the accepted sense of the term, for the price agreements which were made relative to the products of wood dis- tillation applied in most instances only to sales to the United States Government and to the Allies. Yet the fact that prices were fixed to the military consumers had an important effect upon market prices in general, and for that reason the situation in the industry is worthy of consideration. A number of chemicals which are both the direct and indirect prod- ucts of wood distillation were vitally connected with our military 346 HISTORY OF PEICES DUEIXG THE WAR. program of 1917-18,^ and it Avas thouglit necessary from the very beginning to avoid any possible dissipation of the stoclcs in the hands of distillers. Wood chemicals were therefore placed under requisi- tion by an order of the Secretary of War on December 24, 1917, and from that date until December 14, 1918, the distribution of the entire American production of acetate of lime, acetone, ketone, and wood alcohol — the output of some 100 concerns — was administered by the wood chemical section of the War Industries Board.^ It was necessary', however, to make some agreement upon prices to be paid these distillers, and before the year 1917 came to a close the prices of all the important direct products of wood distillation to the United States Government and to the Allies werefixed.^ The prices thus fixed were in most instances lower than the current market quotations, and since the supplies taken under control were allocated mainly to producers of more highly fabricated chemicals, the authorities in charge saw to it that the benefits secured from this lower price were likewise figured for the finished products, which, after all, were the most needed for the military program. Acetic acid: Large quantities of acetic acid were required by the Army authorities. The price of acetic acid current in early 1918 was based on a 6-cent cost for acetate of lime, which in December, 1917, had been lowered by the Government authorities to 4 cents per 1 This Tvas especially true of certain of the wood distillates upon which the Signal Corps was dependent for the manufacture of cellulose, acetate, etc. 2 The original commandeering order extended only to July 1, 1918. It was later ex- tended for six months following July, the National Wood Chemical Association having agreed that the terms and conditions covering the original commandeering order would be a satisfactory basis for the second half of the year. ^ The prices for the various products were fixed f. o. h. shipping point as follows : Acetate of lime (cents per pound) 4 Crude wood alcohol (cents per gallon) 50 95 per cent wood alcohol (cents per gallon) 79 97 per cent wood alcohol (cents per gallon) 82 Pure methyl alcohol (cents per gallon) 86 Metliyl acetone (cents per gallon) - 86 Denaturing grade alcohol (cents per gallon) 79 Ethyl methyl ketone (cents per pound) 25* These prices continued in effect as long as the industry was under the control of the Government authorities. Due to demands for higher wages and due to the increases in freight rates, in the summer of 1918, the National Wood Chemical Association asked for a higher price for acetate of lime and crude alcohol. This request was presented to the price-fixing committee to be acted upon, but that body in turn passed it on to the Federal Trade Commission so that an investigation of costs might be made. No report on the situation had been received up to the time of removing of control in December, and hoace no action was ever taken by the price-fixing committee relative to increasing the price. The price fixed for refined wood alcohol did not, as was the case with the other wood chemicals taken over, go into effect immediately after requisitioning the industry; for there were on band Dec. 31, 1917, large stocks of alcohol which had been refined from crude bought at the November and December market price of 90 cents per gallon. It was deemed advisable out of justice to the trade, that such ^ipplies be disposed of on the basis of 00 cent crude alcohol, and that the new prlce^mentioned above go into offect when the old stocks had been absorbed. GOVEEIirMEJSrT C017TE0L OVEE PRICES. 347 pound. Accordingly, on February 13, 1918, the cliemical section of tlie War Industries Board arranged to have the price of acetic acid lowered so as to be equitable with the 4-cent basis for acetate of lime ; and after investigating the costs of producing acid, fixed the price of 100 per cent commercial acetic acid at 15f cents per pound. Al- though this price was almost 10 cents lower than the current quota- tions, it allowed for a fair margin of profit since it had been found that the average cost of production varied from 11,44: cents to 14.50 cents. There were on hand on February 1, however, large stocks of acetic acid produced from acetate of lime which had been purchased on the old price basis, and justice to the producers demanded that some provision be made for their disposal. An exception was there- fore made in the case of these supi^lies, and producers were allowed to dispose of them on a basis of 6-cent acetate of lime. Likewise, provision was made for the price of glacial acetic acid on the basis of the new price of acetate of lime and 19 cents was fixed as the figure at which this commodity was to be delivered, naked at plant, on Government purchases. Here, also, the fixed price was considerably lower than the current market price of from. 31 to 40 cents. Indeed, glacial acid had always held a fictitious price in the trade, since the entire production was virtually under the control of three manufacturers. The 19 cent price represented a profit of 15 per cent under an economical process of manufacture/ and yet it appears that the manufacturers were dissatisfied, with it. They felt that they were entitled to 25 cents a pound for their product. The chemical section of the War Industries Board refused this request and the producei*s were asked to accept the 19 cent price or submit detailed cost of production figures to substantiate the validity of their claim. The glacial acetic acid producers then ac- cepted 19 cents for their product as manufactured from materials on which the Government price had been fixed. Methyl acetate: The early part of 1918 witnessed a shortage of this chemical and it appeared that there would be difficulty in se- curing Army requirements. Moreover, there was at first little hope of increasing the supply, since the entire production was in the hands of a single concern. Finally, however, other firms were interested in the situation and agreed to undertake production at 21 cents per pound. This figure was based on the fixed price of methyl alcohol and acetate of lime and was adopted as the price for all Government orders. Formaldehyde: The production of formaldehyde in early 1918 was in the control of five concerns. A detailed investigation of their costs of production showed that they were manufacturing fonnalde- 1 Compare memorandum from L. L. Summers to the War Industries Board, Feb. 10. 1018. 348 HISTOKY OF PRICES DURING THE WAR. hycle at a cost of 12} to 13;i conts.^ The market price at times was aronnd 22 cents per pound, Avliile prices as high as 30 and 35 cents had been quoted. It was apparent that the situation warranted a revision of prices, and on February 12, at a meeting with the for- maldehyde manufacturers, a price of 15^ cents per pound was fixed for formaldehyde f. o. b. shipping point, naked. This price, how- ever, was based on 86 cents pure method alcohol, Avhich was the figure fixed for Government-controlled supplies. There were in the hands of the manufacturers large stocks which had been produced from alcohol that had cost $1.25, the old market price. An oppor- tunity to dispose of these stocks at the old prices was therefore given to the producers of formaldehyde, and not until June 12, 1917, did the agreed price of 15i cents really become effective.^ Toluol. — In prewar times toluol played relatively a sinall part in the chemical consumption of the United States. Indeed, it was merely a by-product of coal-tar distillation, the production of which was little developed. The American consumption prior to 1914 ^ras approximately 500,000 gallons annually. Toluol prices varied from 19 to 30 cents. The outbreak of the European war, however, with the consequent demand for explosives revolutionized the pro- cliietion of toluol, and overnight, as it were, this chemical assumed a position of utmost importance. The war had not yet entered its tenth month vvdien the price of toluol jumped from 25 cents to $2.50 per gallon, and on the first anniversary of the declaration of hostili- ties, market quotations were in the vicinity of $3.50. At the end of 1915 the peak of this runaway market was reached when toluol was quoted at $4.50 This price continued through May, 1916, It was inevitable that such prices should lead to the development of facilities for the greater production of toluol, and by the middle of 1916 many new plants were reaching completion. The new potential supply led to a " softening " of the market and June witnessed a fall in prices, while the addition of still further productive facilities finally brought toluol prices down to $1.50 per gallon in Novemxber. It was at this point that the United States Ordnance Department entered the market after our declaration of war in 1917, and the price of $1.50 was agi^eed upon with the producers for our military sup- plies. However, it became evident that this price would not itself lead to the acquiring of a supply sufficiently large to meet all the necessary demands. Accordingly, the Ordnance Department set out to stimulate production, and, by placing large contracts, advancing 1 These costs were based on the Government fixed price of raw materials. 2 This 15i-cent price for formaldeliyde was one of the few instances where the price of a requisitioned commodity was distinctly fixed for the United States Government, the AUies and the consuming public alike. I'sually such fixed prices were made applicable to the United States Government and the Allies only. GOVERN MEjSTT COISTTROL OVER PRICES. 349 funds for the construction of private and Government plants, it increased our productive facilities so that our output for 1918 reached 13,553,860 gallons. This amount represented an increase of almost 3,000 per cent over the prewar average. A large part of this growth in production was achieved, however, only after the toluol industry had been commandeered in Februa ry, 1918, when there began a distribution of all toluol produced in the United States by a committee of representatives of the Army, Navy, and War Industries Board. The price paid for the toluol so com- mandeered was the agreed figure of $1.50 per gallon. On July 18, 1918, the price-fixing committee approved this price as applicable to all sales of toluol, civilian as well as military, and no shipments were allowed from any plant at a price in excess of $1.50 per gallon in tank cars and $1.55 per gallon in drums. In November, 1918, the control over the toluol industry was re- linquished. Immediately the market crashed, and December, 1918, witnessed sales of toluol at 25 cents a gallon, a price 83-J per cent lower than the quotations for the preceding month. Alkalies. — The prices of alkalies were in all cases fixed for Govern- ment purchases only and, with the possible exception of liquid chlorine, the nonmilitary use of which was virtually eliminated from June to November, 1918,^ the prices so fixed were considerably lower than those on the open market. Virtually all agreements as to the price of the alkalies were made in early 1918 and continued through the year until November 25. Several agreed prices, however, such as those of carbon tetrachloride and caustic soda, remained effective until the end of the year. ^A brief summary of the prices fixed on the various alkalies, such as bleaching- powder, carbon tetrachloride, caustic soda, liquid chlorine, and soda ash will be found on p. 805. 6. THE WAR TRADE BOARD. The War Trade Board, charged with the responsibility for de- terminino; what commodities should be exported or imported, exer- cised less direct price control than any otlipr war board.^ It obviously had no concern with the great bulk of staples that were bought and sold for war uses within the country. The board, to be sure, had practically absolute power to permit or refuse licenses to export goods or import them, and sometimes used that weapon when requested to enforce price regulations upon exporters and importers. But the business of controlling the amounts of exports and imports was in itself a, big one, and the War Trade Board usually left to other boards the setting of prices. That procedure seemed to it wise, in part because the War Industries Board, the Food Admin- istration, and the Fuel Administration were all regulating prices, but more especially because the tonnage and the enemy-trade prob- lem, rather than price factors, were the primary basis for determin- ing what goods to export or import. (i) THE CREATION OF THE WAR TRADE BOARD, The passing in turn of the espionage act and the trading-with- the-enemy act gave the President wide powers over exports, imports, and enemy trade. The President, in full appreciation of the serious need for a control over all foreign trade, created the War Trade Board through an Executive order of October 12, 191T, and charged it with a responsibility for administering the controls authorized by these two laws. The new War Trade Board, by that order, super- seded the earlier Exports iLdministrative Board and the former Exports Coimcil became the War Trade Council.- There was thus set up the final machinery for a control over all war trade. It is worthy of note at this point that the presidential proclamation of ^ A fuller account of the activities of- the War Trade Board should be had from its own forthcoming offlrial liistovy. 2 The Wax Trade Board, made up of representatives from various importaut Government bureaus, hnd the following membership at the signing of the armistice : Vance McCor- mick, chairman, and representative of the Secretary of State ; Thomas L. Chadbourne. jr., counselor, and representative of the Secretary of State; Albert Strauss, representa- tive of the Secretary of the Treasury : Alonzo E. Taylor, representative of the Secretary of Agriculture; Clarence M. Woolley, re[)resentative of the Secretary of Commerce; Beaver White, representative of the Food Administration ; and Edwin P. Gay, representa- tive of the United States Shipping Board. 350 GOVEENMEKT COITTEOL. OVEE, PEICES. 351 November 28, 1917, vitally enlarged the scope of War Trade Board duties by increasing the list of commodities requiring license for export, and by the initial making of a similar list for imports. The turning of this country from a neutral into an ally involved the laying down of very definite policies with respect to our foreign trade. It meant especially the conserving of our own supplies for our war machinery and that of our Allies, the cutting off of all direct or indirect trade with the enemy, and the conservation of tonnage for war-making uses. The working out of these general policies by the War Trade Board gave rise to four primary functions, around which virtually the whole work of the board turned: The commercial isolation of the enemy, the financial isolation of the enemy, the obtaining of essential supplies and controlling prices, and the conservation of ocean tonnage.^ (2) ALL EXPORTS AND IMPORTS BROUGHT UNDER LICENSE CONTROL. The actions of the War Trade Board concern price control only so far as they pertain to the exercise of regulation over prices, direct enough to lay hands upono The extension of control over exports and imports ushered in important influences upon prices. The control of exports, begun relatively early, and later that of imports were extended item by item until the two famous proclamations of February 14, 1918, brought under license control all exports and imports.^ The Controi. Over Exports. It is conceivable that the restraint upon the exportation of certain commodities that was imposed by the requirement of licenses for exports sometimes had a more vital indirect effect upon the pric© level than the corresponding restraint of imports. The effect pre- sumably would be most felt in the prices of those goods which were not only brought under license control, but were actually denied exportation and thrown as a consequence into the home market. In a general way the actual holding of commodities from foreign sale, in so far as it increases the supply at home, would tend to lower or iThis division of functions was selected by Henry F. Walradt and B. D. Madgett as the basis for their history of the War Trade Board. * The War Trade Board issued at the same time a statement in which it said in part : " The promulgation of these two proclamations did not mean an embargo on exports or a prohibition of imports, but placed in the hands of the President the power to regulate, which he will exercise through the War Trade Board and the Treasury Department. This power will be exercised with the single pui*pose of winning the war, and every effort will be made to avoid unnecessary interference with our foreign trade and to impose upon our exporters and importers no restrictions except those involved in the accomplish- ment of definite and necessary objects." 352 HISTORY CF PRICES DURIjSTG THE Y7AR. stabilize market prices. But there is no measure of the effect of these export rulings that is accurate or even approximate.^ The Conservation List. The commodities for which the War Trade Board required licenses prior to their exportation were said to have been put upon the con- servation list. This conservation list, which began with a very few important raw materials on July 9, 1917, was extended from time to time until the whole lot of exports were entered upon it by Febru- ary 14, 1918,- and by the signing of the armistice it contained nine hundred odd commodities.^ These commodities, which contained rejiresentatives virtually from our whole range of production, were ail actually restricted from export trade under license control. The Control Over Imports. The control over imports, whether cf ]nore or less influence upon the price level, afforded more opportunity for price regulation. The War Trade Board, which was not a price-regulating body and which interfered with prices only when pressed to it by other bodies, was seldom under necessity for stipulating prices for exports, since the regulation of domestic commodities vv^as exercised by the War In- dustries Board, the Food Administration, and the Fuel Administra- tion. But frequently these very bodies found themselves under pe- culiar administrative difficulties in the price control of foreign goods imported into the country, and appealed to the War Trade Board to stipulate stabilization as a condition of their entrance into Ameri- can markets. The Restricted List. This inquiry does not go into the ramifications of import control, except as prompted by odd instances where the War Trade Board stipulated price regulation as a condition" for the granting of an import license. The board, in order to interfere as little as possible Avith business as constituted, administered these import controls largely through trade organizations. The latter, in cooperation with the War Trade Board, acted as consignees of various import com- modities to keep themselves informed for the benefit of the board 1 The following instance of an exercise of price control, in connection witli the export license power, is perhaps more interesting than widely significant. On and after July 20, 1918, no license will be issued authorizing the exportation of gold jeweli*y, gold watches, gold plate, or other manufactures of gold unless evidence satisfactory to the War Trade Board is submitted showing that the f. o. b. selling price of the articles to be exported is not less than thi-ee times the value of the fine gold contained in such articles. -The proclamation of Feb. 14, 1918, became efEective Feb. 16. ' Consult the Export Conseiwation List issued by the War Trade Board, efEective Oct. 15, 1918, and that efFectivc Dec. 6, 1918. • GOVEEIJMENT CONTROL OVER PRICES. 353 as to the use and disposition^ of the import commodities, and the observance by the importers of any guaranty or agreement given in connection therewith; to prevent hoarding and speculation, and to keep full and complete records of the commodities and their dis- tribution^. The extension of import control was made by the plac- ing gradually of certain commodities upon the so-called restricted list. That list, the initial issue of which appeared November 28j 1917, was made to include all imports by February 14, 1918, and thus contained more than 140 classes of commodities by the signing of the armistice. (3) THE EXERCISE OF PRICE CONTROL BY USES OF THE LICENSING POWER. There lay in the very restriction of exports and imports, even where a direct price control was not exercised specifically, a potent though not measurable influence upon prices. The War Trade Board exercised infinitely more export and import restrictions than the few in which it avowed a direct interest in the, price factor. But in the main an enormous restriction upon export trade in particular goods for any reason would tend to stabilize domestic prices, and a corresponding restriction upon imports would tend to disturb the prices of available stocks. The great body of export-conservatioiT rulings, it would be supposed, worked for lower, and that of import- restriction rulings for higher prices. But this very considerable in- direct influence which the War Trade Board rulings must have had upon prices, important though it be, leads too far into speculation for its adequate analysis in a record of fact. Quite apart from any indirect effects upon prices which may have resulted from export or import restrictions as such, there were sev- eral steps taken by the War Trade Board to control prices. Those instances came in the form of conditions which the board set up as prerequisite to the issuing of licenses for the importation of a few of the commodities appearing on the restricted list. Even those exceptional cases, however, were seldom highly developed controls such as were issued and administered by the price-fixing boards. They were, for the most part, blanket provisions simply looking to the stabilization of the prices for imported goods in the domestic markets. The War Trade Board, at requests from other war boards, ' undertook to provide in part for the stabilization of certain prices (asbestos, pig tin, chloride of tin, tin ore, wool, pickled skins, varnish gums, sugar, castor oil, castor beans, hides and skins, leather, tanned skins, silk noils, silk-noil yarns, garnetted stock and silk waste, 1 Rules and regulations, War Trade Board, No. 2, May, 1918, p. 64. 125547°— 20 ^23 354 HISTORY OF PRICES DURING THE WAR, iiianila fiber, crude rubber, coffee, Xew Zealand fiber, copra, tin, burlap, burlap bags, and jute), either by requiring tlie importer tp give a guaranty, an option, both a guaranty and an option, per- mitting importation of substitutes, restriction of certain imports that would compete with domestic stocks, oii by imposing an em- bargo.^ /^One method by which the War Trade Board took precaution that goods coming in under authority of its licenses should not be hoarded for speculation, was to require a guaranty from the importer that he sell his goods not above the maximum set by any war board. Appli- cants for sugar or wheat-flour licenses were required to guarantee not to sell their sugar or flour to any party at any price without first securing the approval of the Food Administration. The board, by a I'esolution of August 2^ 1218, declared that no licenses to import pickled skins would be issued unless the applicant agreed not to sell the skins at a price in excess of the prices established by the price- fixing committee. Importers of asbestos, pig tin, chloride of tin, and tin ore were required to guarantee that they would use these imports '' for our own manufacturing use and not for hoarding or speculative purposes." A ruling passed late in September. 1918, limiting the amount of varnish gum to be imported, stipulated that the amounts allowed to enter should be allocated and the price con- trolled Ijv the War Industries Board. Still another and earlier ruling, May 27, restricted the amount of asphalt allowed to enter and required the importers to guarantee to sell at a price to be deter- mined by the War Industries Board. / The mosj: common requirement which the War Trade Board im- posed as a condition for the granting of an import license, designed purely to regulate prices, was the agreement of the importer to give \the Government an option upon the imported goods. The sugar guaranty, indeed, early in December, 1917. had contained an option clause by which the importer promised to sell his sugar, if so re- quested, to the international sugar committee at such price as it might prescribe. The well-known early wool option was made on December 15, 1917, and required all importers of foreign wool to give the Government, as a condition of their license, an option to purchase all or anj^ of the wool covered by his import license, at a price equivalent to 5 per cent less than the market price prevailing July 30, 1917.- This option was to hold 10 days after the entry of the wool at the customhouse, but' the Government was given the right to purchase at that price so long as any part of the shipment remained ^ Mr. Henry F. Walradt, after studying carefully the minutes and otlier records of the War Trade Board, worked out the above classification of controls over prices. - A full statement of the resulations governing this important wool option may be found in the War Trade Board Journal of Jan. 8, 1918, p. 6. GO\'ER]S"MEXT COXTBOL, OYEK PKICES. 355 unsold. It became soon necessary, in order to expedite the adminis- tration of the wool option, to enforce it through the mediimi of the Textile Alliance. The importer then was required to indorse his bill of lading to this private organization, as a condition of the license.^ Similar options, granting the Government the right to purchase the goods at a given price, were required as a condition of the licenses allowing the importation of castor oil, castor beans, hides and skins, leather, tanned skins, leather manufactures, platinum, mdium. pal- ladium, quebracho extract, silk noils, garnetted stock, and silk waste. The price control that was exercised over crude rubber combined the guaranty and option feature in a unique way. The Rubber Asso- ciation of America, to whom the War Trade Board officially asked all importers to indorse their bills of lading, was required not to release any shipment of rubber until each applicant had signed an option allowing the Government to purchase- the stock imported at a certain price, and also a guaranty that, should the Government not take advantage of the option, the importer would not sell the imported rubber at a price higher than that provided by the option.- The diverse ways by which the War Trade Board exercised its licensing power to control prices was strikingly illustrated by its resolution of May 23, 1918, that no licenses should be granted for the importation of coffee which was carried at a freight rate greater than that established by the United States Shipping Board.-^ There is on record one case where the TTar Trade Board assisted a Government board to hold down the prices of domestic goods by ^ Mr. Henry F. Walradt, in summai-r of tbe results of this wool option for tbe official history record of the War Trade Board says : '• This policy of obtaining options on wool imports saved the United States over $33,000,000. The fact that the wool importers were required to give this option made it unprofitable for them to buy foreign wooi at the prices which were prevailing at the close of the year 1917 ; consequently the foreign growers were forced to lower their prices. From Dec. 1-5, 1917. when the option agreement was put into force, until Mar. 1, 191S, the average price of imported wool of the grades the United States Goremment was buying, fell from about 66 cents to somewhat less than 3S cents a pound, a drop of about 8J cents per pound. Purchases made after Dec. 15. 1917, did not begin to arrive in this country in quantity until February, 191S. From Feb. 1, 1918, until Dec. 31, 1918, there were 40-5.624,700 pounds of woo! imported into the United States. If it is assumed that 84 cents was saved on each pound, the total amount saved by this policy was S8S,464.038.'" 2 One of the most iuteresring in:ftances of price control throughout the war is that set forth by the War Trade Board pertaining to crude rubber, in a letter to the Rub- ber Association of America on Apr. 30, 1918. That letter was published in full in the War Trade Board Journal for June, 1918, p. 17. 2 The purpose of this ruling was to aid in enforcement of the rates; which had been established on Xov. 21,' 1917, by the chartering committee of the Shipping Board. It appeared that these rates were being disregarded. In fact at the time this ruling was passed the coffee en route to the United States was being transported at ratea which caused the total freight charges to be hundreds of thousands of dollars in. excess of the lawful amount. The profiteering in freight rates on coffee had caused an unstable condition in the cofEee market, and a wide variation in the cost of coffee to different buyers. Accordingly, all licenses for the importation of coffee were held up until the importers presented a sworn statement that the rare of freight paid for the transportation of the coffee was not in excess of the rate established by the Ship- ping Board. (Eeport of the War Trade Board.) 356 HISTORY OF PFJCES DUEHSTG THE WAR. allowing the unrestricted entrance of a substitute. The Food Admin- istration attempted during the war to prevent rises in the price of cot- tonseed oil on domestic markets. Copra, which is used to manufac- ture coconut oil, has a vital relation to the prices of cottonseed oil.' The War Trade Board, in order to assist in the stabilization of cotton-^ seed oil prices, lifted its restrictions upon the importation of copra on July 12, 1918. There has been, since the signing of the armistice and contrary to' the prevailing policies previous, occasion to sustain the prices of cer- tain materials which were stimulated in production during the war? The War Trade Board, in one conspicuous instance, attempted to sustain a domestic price by restricting the importation of competing goods. A considerable importation of pig tin took place during the war at high prices for the meeting of Government orders. That source of demand was cut suddenly short by the cessation of hostili- ties, and pig tin prices began to break. The War Trade Board, in order to protect from loss buyers who in good faith had bought large stocks for the Government, left standing its restriction upon the importation of pig tin.^ One of the more serious of the problems confronting the Food Administration and the War Industries Board during the fall of 1918 was the rise in burlap and burlap bags. The Government had imiDortant uses for these materials as trench bags and packing cases. The high prices for bags frequently made necessary the shipment of potatoes and wheat in bulk and cargo for overseas in wooden cases. The British Government controlled its own purchase prices for bur- ^ Mr. Walradt makes the following summary of the action of the War Trade Board with respect to pig tin after the signing of the armistice : " In order to protect the buyers who had bought at high prices from the impending loss, the War Trade Board maintained the restriction upon the importation of pig tin which it had placed by a resolution passed on Oct, 4, 1918. This resolution re- voked all outstanding licenses for the importation of pig tin, tin ore, and tin. concen- trates, and any chemical extracted therefrom to be shipped after Oct. 20, 1918. The resolution also provided that henceforth no licenses were to be issued for the importa- tion of these commodities excepting for shipments consigned to the United States Steel Products Co. On Nov. 1 this resolution was modified to permit the importation of these commodities excepting pig tin, provided the bills of lading were indorsed to the American Iron and Steel Institute. Pig tin bought Sept. 30, however, could still be imported only by the United States Steel Products Co. The original resolution had been passed at the request of the inter-allied tin executive in London to effect an. equitable distribution of pig tin. With the signing of the armistice the value of this i-esolution changed. The United States Steel Products Co. alone was able to import pig tin and this company already had more pig tin than it could sell without loss. The market price for tin outside of the United States had broken and if pig iron could have been imported freely, the stocks of pig tin already in the United States would have fallen greatly in value. As it was, the fact that tin ore was permitted to enter gave the smelters an opportunity to import the ore, smelt it, and put the pig tin on the mar- ket at a few cents below the price at which pig tin was being held by the United States Steel Products Co. This practice caused the War Trade Board, on Jan. 30, 1919, to pass a resolution whereby no import licenses were to be issued for any metal con- taining more than 20 per cent of tin. This measure is in harmony with the at- tempt which was being made to keep up the price of pig tin to prevent large losses to those Importers who previous to the cessation of hostilities had purchased large stocks of pig tin for Government purposes," " ■-■ GOVERNMENT CONTROL OVER PRICES. 357 lap at Calcutta, the primary market, but took no effective hand to prevent the Calcutta merchants from exacting enormous prices from American importers. The War Trade Board accordingly, on October '4-, 1918, passed a resolution prohibiting the licensing of the importa- tion of burlap, burlap bags, or jute without the approval of the Food Administration and the War Industries Board. This virtual em- bargo broke the speculation of Calcutta, it would seem, for the base price at that market dropped from 16.17 cents per pound on October 2 to 9.79 cents on December 28, 1918. Rubber. The United States in the early years of the World War was de- pendent in large part upon the various warring countries or their colonies for many essential raw materials. One of the most important of these was rubber, a considerable portion of which came from the English and Dutch possessions in the Far East. The British embargo of IQIJ^. — ^When war first broke out in August, 1914, tires were the only important rubber products which were made contraband. In the following month the British Gov- ernment added crude rubber to the list of contraband and decreed that rubber could be exported only to certain ports of Europe, namely, those of France, Belgium, Eussia, Spain, and Portugal.^ In October the French Government followed suit and declared rubber absolute contraband. But Great Britain, late in October, issued an order forbidding shipments from those plantations in the Far East which were under her control to any port other than London, thereby making virtually all plantation rubber contraband. Even this latter decree, however, did not seem to bring the desired results, and finally during the last days of October, 1914, the British Government forbade all exports of crude rubber from any English port.^ As a result of these restrictions, rubber prices soared, and it was said that the cost of the embargo to the industry was $250,000 a day.^ After several advances to the British Government the embargo was partially lifted, and in January, 1915, shipments of rubber to the United States were again permitted, but not without restriction. First, no rubber was shipped direct to any American consumer. It was consigned directly to the British consul general in New York, and he alone had authority to release it. Secondly, every American buyer before securing the release of any rubber was compelled to 1 The reason for these actions on the part of Great Britain is given in the following extract taken from the India Rubber World for Nov. 1, 1914 : " It was given out that the requirements of the allied armies would be sufficient to absorb practically the whole plantation production for the next six months. It was stated that the British and French military authorities would need a new equipment of tires for the quarter million motor transport vehicles then being used in the war, and that there would be great demand for waterproof ground sheets for the troops, for rubber boots, to be used in digging trenches, for all kinds of surgical appliances, - India Rubber World, January, 1915. B58 HISTORY OF PRICES DURING THE WAR. guarantee that lie would not reexport except under specified restric- tions and would not use it in trading witli the enemy. This rule not only applied to the particular rubber which he wanted to have released, but to all the rubber, crude or manufactured, which he had on hand or might dispose of during the war. This was the state of affairs as regards the rubber importer at the entrance of the United States into the conflict. Eubber had been com- ing into the country in tremendous quantities during 1916, and 1917 presaged the largest imports in our history.^ The licensing of viibher imports. — On November 28, 1917, rubber was put on the restricted list hj presidential proclamation and all imports were forbidden except under license. Thus the control of American imports was shifted from the British consul general at Xew York to the War Trade Board. The Eubber Association of America was virtually appointed the agent of the United States Government and undertook to collect information relative to the rubber industry for the War Trade Board ; to act as consignee for rubber shipped to the United States; to release rubber to importers under instructions from the War Trade Board; to obtain from im- porters and manufacturers guarantees that they would not sell any rubber, directly or indirectly, to any country at war with the United States, or to any person, unless satisfied that thefe was no intention of exporting without an export license; to keep informed for the benefit of the War Trade Board as to the use and disposition of the imported rubber; and to keep full records of all importations of rubber. No restrictions were placed on the amount of rubber that could be imported, and throughout the first few months of the year large quantities of rubber came into the country. But large imports of rubber meant large amounts of shipping- space and long hauls, since the greater portion of our rubber sup- plies come from the Far East and Brazil. The restriction of rubber imports and price fixing. — The military requirements of the country demanded a conservation of tonnage, however, and on May 7, 1918, after conference with representatives of the War Industries Board, the United States Shipping Board, and the rubber industry, the War Trade Board restricted the quantity of rubber to be licensed for import during the three-month period, May. June, and July, to 25,000 long tons. This was at the rate of 100,000 tons per year, or about two-thirds of the 1917 importation of 157, 000 tons.- It was naturalW expected that this cutting off of 1 Indeed, our rubljer imports; for 1917 proved to be over 167,000 tons, as against 115,000 tons, in 1916 and 103,000 tons in 1915. See War Industries Board Bulletiu, " Prices of Rubber and Rubber Products," by Isador Lubiu. 2 Subsequently, the War Ti-ade Board virtually increased the amount to be licensed , for import to 28,000 long tons (green basis) per quarter by ruling that the Brazilian imports should be allocated on a dry basis which allowed approximately 12 per cent for water content, GO\'ER]SrME]SrT COKTEOL OVER PRICES. 359 an appreciable part of our supply ttouIcI start rubber prices up- ward, and, indeed, a speculative market did develop as soon as word was received that the restriction of the importation of rubber was contemplated.^ As a preliminary step therefore to the restrictions of rubber im- ports, the War Trade Board inaugurated an option system whereby it regulated rubber prices from the time of import until passing into the hands of the manufacturer. A maximum price, based on quota- tions current in the trade when restrictions were first considered, was fixed for the various tj^pes of crude rubber, and the possibilities of profiteering and speculation were limited. These prices, fixed on May 1, c. i. f . New York were as follows : Cents per pound. = Para Upriver Fine 68 Plantation : First Latex Crepe 63 Smoked sheets (standard) 62 All importers before securing an import license were compelled to give to the United States Government an option on " all or any part of the crude rubber "' covered by the license, as well as on all other crude rubber at that time or thereafter covered or controlled hv the applicant until sold and delivered to a manufacturer,^ In the event of the exercise of this option the prices to be paid by the Government were to be those mentioned above. The results of the emhargo. — It appears that this fixing of rubber prices was an unnecessary expedient, however, since the curtailment of imports had little effect upon the rubber supply of the country. For, first, the stocks on hand on April 1, were the largest in the history of the industry,* and, second, our imports during May, June, and July were much larger than the specified 25,000 tons. The pre- liminary negotiations leac]Jng to the cutting of imports had been held in April, and the anticipation b}"' the trade of some form of re- strictions stimulated buying. Large contracts were therefore entered into for the immediate shipment of rubber to the United States in order that stocks might be accumulated before the expected restric- tions went into effect. The restrictions of May 8 did not apply to shipments which had left foreign ports prior to that date, and sii\ce the time required for transporting rubber from primary markets to 1 Compare chart of crude rubber prices in " Prices of Rubber and Rubber Products," as above. 2 These prices were supplemented on May 14 by maximum prices for otlier grades of crude rubber ; while on May 29, June 13, July 2, and July 6, respectively, still further additions were made. Applicants for import licenses had to guarantee that they would not sell rubber covered by their license to or for any person at a price higher than thft fixed prices. 2 Compare letter from the War Trade Board to the Rubber Association of America oa Apr. 30, 1918, in the War Trade Board Journal of June, 1918. * Compare statement by Bertram G. Work, chairman of the War Service Committee of the rubber industry in the India Rubber World, June, 1918. 360 HISTORY OF rrJCES DUrJXG THE WAB. • tlie United States was considerable tlie actnal imports during the second quarter of 1918 were mncli greater than the specified 25,000 tons. Indeed, 65,000 tons of rubber entered American ports during May, June, and July. Finally, the curtailment of the American receipts was immediately felt in the primary markets, where already the decreased consump- tion of other nations had had its effects. The further elimination of means of disposal naturally led to keen competition among the hold- ers of the existing large stocks and prices tended to fall even below the existing low level. The result then was that allocated Upriver Para rubber sold in September for 58 cents per pound and Plantation First Latex Crepe sold for 37 cent's per pound ^ as compared with the fixed maxima respectively of 68 cents and 63 cents. On December 12, restrictions as to the amount of rubber to be licensed for import from overseas were withdrawn as were also the maximum price and allocation features of the import regulations. Silk. The second presidential proclamation on imports, issued Febru- ary 14, 1918, included silk among the commodities for which import licenses were to be required. In order to discourage imports for speculative purposes, the War Trade Board, on September 3, 1918, revoked all outstanding licenses for the importation of silk noils, silk noil yarn, gamettecl stock, silk waste, spun silk, and pierced cocoons for shipment after Sep- tember 10. The United States Government was to have an option to purchase all silk of the above varieties for which import licenses were issued after September 3, at a price 2 per cent above the cost at the foreign ports of shipment, including all charges except prepaid freight and prepaid insurance. 1 This variation in the price of the two types of rubber is to be explained bj' changes which were made in the import program in August and September. The War Trade Board had at first failed to make allowance for the large amount of water in Brazilian rubber and the high price of this type of rubber resulted in the American consumer giving preference to rubber from the Far East, and imports from Brazil decreased steadily from June to August. The former factor was eliminated about a month after import restrictions became effective, and in order to further stimulate the im- portation of Brazilian rubber the War Trade Board ruled in early August that during the months of August and September rubber importers should replace 50 per cent of the rubber utilized in Government contracts by Brazilian rubber. The result of these pro- visions for stimulating imports became apparent in September, and imports from Brazil increased 54 per cent over the month of August. The results attained, however, were not up to expectations, and on Sept. 26, the ruling relative to the use of Brazilian rubber was supplanted by an order of the War Trade Board requiring that at least one-fourth of the total amount of imports authorized should be licensed from South and Central America. With the production of the Plantations over six times as large as that of South America, these regTiIations led to a heavy oversupply of the Planta- tion variety of rubber and keener bidding at Plantation markets for the right to ship to American ports. It should be atldod also that the maintenance of relatively normal values by Brazilian rubber was in part to be accounted for by the stabilizing control over its price by the Bank of Brazil, 7. THE WAR DEPARTMENT. The War Department expended $14,244,061,000 from the declara- tion of war in this comitry to April 30, 1919, and was given a hand in the general price-fixing- program by reason of its interest in Army purchases.^ The large purchases which the War Department began making soon after April 6, 1917, indeed, and the erratic behavior of the market, were among the main causes for the control over raw- material prices by the Government. The quantity of goods required to feed and clothe the Armj^ was great enough vitally to affect market quotations. The statistics branch of the General Staff has estimated the total purchase by the Army for 'Subsistence from April 2, 1917, to May 3, 1919, as $1,093, 636,623.^ The total Army purchases for clothing from the beginning of war to May 31, 1919 amounted to $1,212,066,018. and those for equipage to $254,721,400. There follows an itemized list of the clothing commodities purchased by the War Department from the beginning of war to May 31, 1919, and the unit price for each commodity, as given by the statistics branch of the General Staff. A similarly itemized list for the equipage purchased follows. SUBSISTENCE SHIPPED TO AMEEICAN EXPEDITIONAKY FORCES APE. 1, 1917, TO DEC. 1, 1918. Item. Quantity (pounds unless otherwise specified). Unit price. Total cost. Bacon Beef, frozen Beef, tinned , Flour Tobacco Cigarettes, each Reserve rations, each . . . Sugar Cigars, each Butter and substitutes. Tomatoes Beans, baked Jam Coffee Milk, evaporated 147, 250, 140, 542, 27, 2, 439, 15, 106. 160', 16, 100, 54, 26, 39, 42, 956, 223 584, 692 843, 476 874, 797 449, 645 260, 097 623,150 169,345 ISO, 225 200, 799 081,789 731,786 029, 028 185,167 922, 743 .44 .23 .32 .05 .67 .006 .76 .07 .05 .40 .06 .10 .19 .12 .11 S65, 722, 154 58, 536, 584 45,717,792 28, 500, 927 18, 407, 732 15,123,412 11,875,594 7,888,382 7, 768, 741 6,433,337 G, 024, 924 5,226.886 4, 877; 840 4, 729, 650 4,498,303 1 See " The War with Germany," prepared under the direction of Col. I;(>onai'd P. Ayers, of the statistics branch of the General Staff, for an itemization of these ex- penditures. - There is not available an itemized list of the commodities that made up this total expenditure for foods, and their unit costs. There follows, however, a table showing the individual commodities shipped to the American Expeditionary Forces from Apr. 1, 1917, to Dec. 1, 1918, as reported by the statistics branch of the General Staff, and the unit price of each. Later figures given out by the Staff, which do not have the advantage of carrying unit costs, show that the total expenditures for overseas sub- sistence from the beginning of war to May 1, 1919, was .$616,134,000. 361 362 HISTORY OF PRICES DURING THE WAR. SUBSISTENCE SHIPPED TO AMERICAN EXPEDITIONARY FORCES APR. 1, 1917, TO DEC. 1, 1918— Coutinued. Item. Fish, salmon Beans, dry Vegetables, dehydrated . Lard and substitutes. . . Syrup, gallons Hard hread Candy. Eice Prunos. Fruit, evaporated. Corumeal Pickles, gallons... Ham Corn,, sweet Emergency ratiotis, each. Vinegar, gallons Oatmeal. Peas, green Peaches, canned. Hominy . Beans, striiiijless. Salt Pears, canned.. . Apples, canned.. Cheese. Pineapples, canned. Apricots, canned . . . Cnerries, canned Quantity (pounds unles otherwise specified). Total. 961,801 646, 677 971,935 781,228 171,808 978, 830 895, 053 466, 547 748, 931 976,848 074,687 333,210 772,917 639, 786 765,400 319,877 661,732 689, 425 415, 182 826, 269 148, 759 707,276 150, 120 831,096 314, 203 899, 258 863,415 423,444 Unit price. .14 .11 .30 .25 .59 .13 .28 .08 .10 .13 .05 .47 .34 .06 .53 .28 .06 .06 .11 .09 .06 .009 .10 .06 .28 .09 .09 .12 Total cost. 4, 408, 960 4,297,700 3,924,010 3,861,666 3, 654, 945 3,614,865 2,191,667 2, 029, 684 1,630,014 1,191,228 736, 221 625,809 610,238 431,648 401,835 367, 586 2%, 020 262, 60S 255, 043 155, 963 127, 207 120,624 117,542 117, 007 87, 191 82.012 78,743 51,703 327,059,997 CLOTHING PURCHASED BY THE ARMY DURING THE WAR. BreechQs and trousers, wool. Breeches, cotton Boots, rubber Belts, waist , Caps, overseas Coats, cotton Coats, denim Coats, wool , Drawers, summer , Drawers, winter , Hats^ service Leggins, canvas. „ , Overcoats Shirts, flannel Shoos,fleld Shoes, marching Stockings, cotton Stockings, vvool, heavy Stocldngs, wool, light 1 Trousers^ denim Undershu'ts, summer Undershirts, winter Puttees : Raincoats Hats, denim Jerkins Mackinaws Gloves, leather Gloves, canton flannel, Ip. . . Mittens, canton flannel Mittens, leather Gloves, wool Gloves, jersey knit Oilskin coats Oilskin trousers Oilskin hats Total. Purchased. Unit price. Approximate value. 21,768, 14,154, 2,96-1, 10,867, 5,741, 8, 872, 10,942, 13,870, 41,089, 42,468, 8,220, 12,494, 8,315, 26,547, 18,769, 11,847, 20,210, 58,712, 61,243, 11,561, 48, 110, 36,931, 16,771, 8,481, 6,235, 2, 236, 635, 7,254, 2,632, 5,007, 9,357, 17,283, 9,927, 873, 868, 1,220, 220 000 932 000 012 000 000 000 000 ! 360 I 000 ono 000 817 648 000 000 000 000 505 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 S6.70 1.69 5.08 .23 -88 1.96 1.55 9.79 .50 2.00 2.00 .92 12.17 3.50 7.45 4.65 .16 .55 .35 1.55 .60 2.00 2.20 5.21 .24 7.50 14.00 1.07 .48 .46 1.16 .65 .25 2.52 2.58 5145,847,074 23,920,260 15,061,854 2,499,410 5,052,090 17,389,120 16,960,100 135,787,300 20,544,500 84,936,720 16,440,000 11,494,480 101,193,550 92,917,3.59 139,833,878 55,088,550 3,233,600 32,291,600 21,435,050 17,920,333 28,866,000 73,862,000 36,896,200 41,186,010 1,490,400 16,770,000 8,890,000 7,761,780 1,263,360 2,303,220 10,854,120 11,233,950 2,481,7.50 2,199,960 2,239,440 915,000 1,212,066,018 GGVEKNMElSrT COKTEaL OVER PEICES. 363 EQUIPAGE PURCHASED BY THE ARMY DURING THE WAR. Barracks bags Bedsocks Blankets, com ■ Blankets, 3 pounds . . . Blankets, 4 pounds . . . Tents, hospital, drop. . Tents, hospital, ward. Tents, pyramidal Tents, shelter, halves. Tents, storage Tents, wall, large Tents, wall, small Latrine screeen PauUns, large Paulins, extra large. . . PauUns, small . . . .' Purchased. ,982,000 ,581,000 ,167,000 ,106,000 8,090 21,142 500,311 ,499,437 21,10S 71,705 76,178 64,114 145,420 12,511 13,647 Unit price. $0.85 1.10 6.00 6.. 50 8.00 92.18 227.19 70.73 2.62 136. 11 80.08 43.71 18.73 72.69 22.65 Approximate value. $7,634,700 10,539,100 92,085,500 56,848,000 745,736 4,803,251 38,391,165 19,648,525 2,873,010 5,742,136 3,329,740 1,200,855 10, 570, 580 309,104 Total. 254,721,400 There follows a summary of the value of overseas shipments of quartermaster material in the main from April 6, 1917, to December 1, 1918, as compiled by the statistics branch of the General Staff. Orerseas shipments. Clothing, equipage, etc., sliipped with troop.s $326,000,000 Subsistence .. 327, 059, 997 Clothing 269, 451, 890 Forage 21 ,106, 138 Remount $15, 219, 87S Fuel 12, 608, 353 General supplies 11, 807, 118 Horse-drawn vehicles 7, 247, 522 Harness___ 4, 957, 993 (i) THE ARMY REPRESENTED ON THE PRICE-FIXING COMMITTEE. Virtually every instance of price fixing that had been undertaken by the War Industries Board prior to March, 1918, had its incep- tion in the fact of large Government purchases which needed pro- tection against unstable markets. It was not surprising, therefore, that when the price-fixing committee was created there should have been appointed to it a representative of the Army, despite the fact that the President in his letter had not so provided.^ It was the duty of the representative of the War Department to present to the com- mittee always the Army point of view, and to carry back to the Army that of the committee. 1 The first representative of the Army upon the price-fixing committee was Brig. Gen. Palmer E. Pierce, but Lieut. Col. R. H. Montgomery served in that capacity from May 29, 1918 (S. O. 126), until the committee resigned. 364 HISTOEY OF PRICES DUEII^G THE WAR. (2) THE PRICE-FIXING SECTION. As time went on it became necessary for the Army to determine fair prices for its own purchases upon commodities that had not been fixed by the price-fixing committee. It frequently had occa- sion, for example, to determine differentials from the base prices set by the price-fixing committee and less important base prices. A new order was accordinglj" issued by the War Department September 4, 1918 (S. C. No. 88), creating a price-fixing section within the Army, whose chief was to be the representative of the Army on the price- fixing committee, and with the following duties : To conduct inquiries as to fair prices and departure from such prices, to advise agencies of the War Department in reUition thereto, and to represent the War Department on the price-fixing committee of the War Industries Board. (3) COMMANDEERING AND REQUISITIONING. It was not always possible satisfactorily to secure commodity re- quirements from the market at prices set by the price-fixing commit- tee or the price-fixing section, and the Army resorted frequently to the practice of commandeering and requisitioning. The comman- deer orders were compulsory orders to manufacture certain products, and the requisition orders were those taking over properties or stocks for use by the Government.^ A considerable confusion arose late in 1917 and early in 1918 by reason of the decentralization of seizure orders, and on March 22, 1918 (General Orders, No. 27) a commandeering section was estab- lished to bring uniformity of procedure in the requisitioning and commandeering of property. There had been 161 different requisi- tions issued by the several bureaus of the War Department prior to the establishment of the commandeering section. Another 341 requi- sitions, affecting 2,501 persons or companies, were issued after the creation of the section. There had been 370 compulsory orders is- sued prior to the establishment of the commandeering section. An- other 626 compulsory orders, affecting 732 persons or companies, were issued after the creation of the section. The commandeering section, in its report following the signing of the armistice, esti- mated that the approximate value of all property requisitioned and secured under compulsory order was $141,687,000.^ 1 Tlie main authority for commandeering was had from section 120 of the national defense act (H. R. 12766, Public No. 85), approved June 3, 1916; and that for requisi- tioning section 10 of the food and fuel control- act (H. R. 4961, Public No. 41), approved Aug. 10, 1917. - There follows a summary and itemized list of properties taken for military purposes hy requisitioning or compulsory orders, during the war : 1. Real property, improved and unimproved, title taken $15, 697, 000 2. Personal property 125,990,000 Total, title taken 141,687,000 goyeejstmejstt control, over prices. 365 (4) the board of appraisers. Tlie duty of determining compensation for properties requisitioned or commandeered was placed upon the board of appraisers, estab- lished by General Orders, No. 30, on April 1, 1918. The board, as then constituted, was composed of Lieut. Col. John S. Dean and Lieut. Col. E. LL Montgomery, and was given the following duties: To determine, by appropriate methods, just compensation of all properties of whatever kind, real, personal, and mixed, for the seasons of occupancy of any property, first, which shall hereafter during the existing emergency be ordered i-equisitioned, commandeered, or otherwise formally taken over according to law, through, by, or by direction of, the Secretary of War for the direct and special use of the armies ; or, second, which has heretofore, during the present emergency, been directly taken over and the determination, of just compensa- tions for which has not been concluded, or is not under consideration by the •special board. To determine all elements of valuation, in all useful or necessary phases of such valuation, included as items of cost in any contract in which such ele- ments affect the rights and obligations of the Government and which shall 3. Real property (improved and imiinproved, including plants and trans- portatiou facilities) use and occupation taken (value per annum) 3,146,000 4. Personal property (vessels), use and occupation taken (value per annum) _ 126, 047, 000 Total, use and occupation taken (value per annum) 129,193,000 The more important of the commodities that were taken through requisitioning or compulsory orders by the War Department, found by segregating the items classified under personal property, follow in order of their values. 1. Cotton goods, silks, gauze, etc .^56 Qgg 70Q 2. Toluol 17' 211; 600 3. Wood chemicals 16,092,200 4. Platinum g j^rj 200 5. Subsistence supplies q §54' ^qq 6. Machine guns and ammunition 5 720 500 7. Caustic soda 2^ 899^ 300 8. Nitrate of soda 2 598* 700 9. Spruce ___111 1, 124,' 300 10. Carbon tetrachloride 1 hq jqO 11. Machine tools . 975 200 12. Folding steel hospital beds 750,000 13. Bleach powder ^qq qqq 14. Building materials : 551 ' 800 15. Machinery • 289! 900 16. Thermometers : 284 900 17. Typewriter ribbon cloth 269* 900 IS. Acetj'lene cylindersi 260,400 19. Phenol _ 1_ 25o! 700 20. Tin 227,900 21. Locomotive cranes 203 200 22. Chestnut extract 189* 900 23. steel wire ' 169,' 200 24. Sulphate of ammonia 124 700 25. Boilers , JJ II5' qqo 26. Leather gloves 71,700 27. Brass ^ 66,100 28. Sulphuric acid ' g4 qqq 29. Dimethylaniline 33 qqq 30. Tapioca flour 29' 400 31. Miscellaneous . 26 200 366 HISTORY OF PRICES DURING THE WAR. hereafter during the present emergency be entered into by the bureau of the War Department, or any official of any such bureau whenever the contract itself shall not provide for and require a dilferent method of determination; and likewise to determine sucli elements included in any such contract hereinbefore entered into during the present emergency where such determination is not otherwise provided for <>r required, or has not been concluded, or is not the subject of consideration by the special board. The board of apjn-aisers, between April 1, 1918, and November 22, 1918, was presented with 1M7 different requisition comptilsory orders and clearances for the determination of a just value. 8. THE NAVY DEPARTMENT. The Navy Department had no more authority than the War De- partment for fixing the prices of commodities to the public. It, by virtue of the enormous purchases for its own supplies, was repre- sented on the price-fixing committee and the commodity aections of the War Industries Board. The purchasing of supplies for the Navy was concentrated on the Bureau of Supplies and Accounts, which undertook frequently to determine " fair and reasonable " prices.^ (i) COMMODITIES PURCHASED BY THE NAVY. The bulk of purchases made by the Navy during the war, like those made by the Army, was a considerable factor in prompting the price-fixing committee and the War Industries Board to extend con- trol over certain commodities. The Navy purchased a quantity of nonferrous metals amounting in value to $71,218,289 ; steel and iron valued at $91,846,654 ; woolens and equipment valued at $96,400,000 ; lumber valued at $5,918,822; provisions (obtained through alloca- tion) valued at $7,427,260; and chemicals and explosives valued at $100,827,611. - There follows a summary of the volume of purchases made by the Navy of the more important commodities, as recorded in the annual report of the Paymaster General for 1918 : NONFERROUS METALS. Commoditv. Quantity. A'aluo Copper Lead Tin Antimony. Monel metal Steel wire rope.. Nickel Zinc Aluminum Portland cement Copper products Brass products. . 150,031,522 poimds 24,833,000 pounds., 1,850,500 pounds... 222,008 pounds 1,263,404 pounds... 85,105,281 pounds.. 219,900 pounds 46,810,483 pounds.. 597,229 pounds . . . . 1,151,098 barrels... 7,695,998 pounds... 28,527,258 pounds.. S35, 1, 1, 7, 5, 1, 2 6, 257,407.67 800, 392. 50 184,320.00 28, 632. 41 514,837.13 750, 884. 36 ■ 83, 560. 00 997,251.96 197, 085. 56 980, 403. 24 623, 502. 95 798,010.00 71,218,289.78 1 An excellent account of the price and purchase work of the Navy during the war to the summer of 1918, is given in the Annual Report of the Paymaster General of the Navy for the fiscal year 1918. 2 Ex-copper furnished by Government ; value, including copper furnished by Government, $10,695.60. 367 368 HISTORY OF PRICES DURIKG THE WAR. STEEL AND IRON. Commodity. Steel Forgtngs and ingots . jVnchori- Chain iro'n Castings rig iron Rails Mine anchors Extender mechanisms Tinplato Pipe. Iron ore Tubing Railroad equipment... Macliine tools Chain ,^mor plate Bolls, nuts, and rivets Hand tools Miscellaneous Fittings Alloy steel Tool steel Quantity. 517,82S,n00 pounds. 50,943,104 pounds.. 10,000,000 pounds. 5,960,000 poimds.. 68,264,000 poimds. 26,280,00Opounds. 40,000 60,000 194,768 pounds... 201,600 pounds. 7,730,514 feet... 25,985,300 pounds. 2,430,000 pounds.. 32,643,450 pounds. Value. S20, 790, 16,417, 1,294, 562, 628, 1,012, 633, 2,080, 155, 46, 1, 188, 1,699, 2,037, 17, 570, 2,600, 483, 2,131, 359, 9,635, 930, 8,090, 1,500, 356. 98 288.00 667.00 500.00 020. 00 018.00 000.00 000. 00 000. 00 517. 00 322. 67 6S7. 70 328. 00 742.00 468. 33 060. 00 600. 00 504.00 966.00 028.00 681.00 000. 00 000.00 91,846,654.68 WOOLENS AND EQUIPMENT. Overcoating Uniform cloth Flannels (billiard cloth, scarlet cloth, etc) Blankets Bunting Australian, doniestic, and South American wool (grease). Denim Drill Canvas and duclc Cotton check lining Surgical gauze Leggings Mattress ticking Nainsook Muslin - Pillow cases - - Sheets Sheeting Pajamas Towels Toweling Cotton waste Handkerchiefs Twine Thread Do Underwear Socles Do Do Jerseys Watch caps Shoes Rubber boots and arctics Do Neckerchiefs Ribbon Grommets, buttons, and other accessories Mattresses and cots Burlap, hemp, and kapok Netting, braid, tape, etc l,60n,O0G yards... 7,000,000 yards.. 2,063,000 yards.. 735, 000 yards.... 4,285,000 yards.. 12,000,000 yards. 14,800,000 yards 29,630,000 vards 10,000,000 yards 1,850,000 vards 975,000 yards 865, 000 pairs 2,647,000 yards -•- 1,736,000 yards 800,000 yards 140,000." 230,000 1,500,000 yards ' 46,000 paii-s 270,000 2,900,000 vards 7,200,000 pounds 3,850,000 865,000 pounds 1,000,000 spools . . .• 320,000 cones 2,,335,000 suits 423,000 pairs (heavy) 1,940,000 pairs (merino) 2,500,000 pairs (cotton) 475,000 555,000 885,000 pairs 150,000 pairs (arctics) 315,000 pairs (boots) 708,000 500,000 yards 150,000 gross (grommets) 260,000 gross (buttons) (770,000 (brushes and whisks) . flOO.OOO mattresses \20,000cots (300,000 vards (burlap) ■^290,000 pounds (hemp) , (400,000 pounds (kapok) 150,000 yards (netting) 750,000 yards (braid) 15,000 spools (tape) :) $0,000,000.00 22,000,000.00 5,000,000.00 5,500,000.00 1,500,000.00 7,500,000.00 4,000,000.00 7,000,000.00 8,000,000.00 $500,000.00 800,000.00 900,000.00 900,000.00 350,000.00 150,000.00 1,000,000.00 75,000.00 1,000,000.00 900,000.00 250,000.00 $450,000.00 800,000.00 6, 000, 000. 00 1, 500, 000. 00 2, 000, 000. 00 500,000.00 4, 000, 000. 00 1,500,000.00 850, 000. 00 75, 000. 00 1,000,000.00 800, 000. 00 300,000.00 96,400,000.00 GOVERNMENT CONTROL, OVER PRICES. LUMBER. 369 Commodity. Quantity. Value. Yellow pine Douglas fir , Nortli Carolina pitoe Oalc Spruce White pine Cypress Ash Yellow- pine decking Redwood White cedar Poplar Hemlock Beech, birch, and maple Mahogany Port Orford cedar Maple. .- Basswood Sugar pine Sitka pine Wahiut Iiaurel Hickory Cherry Lignum vitte Crossties Piling Juniper poles Douglas fir spars Spruce poles 76,586,917 feet. . 22,972,5Gafeet . . 12,683,796 feet.. 10, 410, 066 feet.. 9, 368, 500 feet... 6,828,000feet.-. 3,522,950 feet... l,797,000feet.-. 1,432,000 feet... l,059,000feet.-. l,056,000feet.-, 1.016,000 feet... 826,000 feet 445 ,000 feet 362,800 feet 245,000 feet 112,000 feet 90,000feet 75,000 feet 65,000 feet 27,000 feet 23,500 feet 15,500 feet l,000feet 213,000 pounds . 57,366 pieces 12,400 pieces 3,500 pieces 1,495 pieces 1,425 pieces SI, 838, 528, 380, 884, 374, 546, 264, 197, 143, 100, 81. 19, 31, 90, 24, 8; 6; 4, 3, 4, 2, 2, 10, 71, 173, 21, 44, 086.01 369. 28 513.88 855. 61 740.00 240. 00 221.25 670.00 200.00 655.00 320.00 280.00 824.00 150.00 700. OC 500.00 960.00 300.00 500.00 250.00 050. 00 115.00 325. 00 140. 00 650.00 707. 50 600. 00 500.00 850.00 855. 00 5,918,822.633 PROVISIONS (OBTAINED THROUGH ALLOCATION). Item. Quantity. Approximate value. Apples, evaporated. Apples, tinned Apricots, tinned Beans, lima, dried. . Beans, navy Beans, string Catsup Corn, tinned Peaches, evaporated Peaches, tinned Pears, tinned Prunes Pumpkin Salmon Sauerkraut Tomatoes Peas 1,208,000 pounds.. 2,000,000 pounds.. 2,660,000 poimds.. 3,462,000 pounds.. 15,000,000 pounds. 3,978,000 pounds.. 619,000 gallons.... 6,630,000 pounds. 728, 000 pounds... 4,066,000 pounds. 2, 885,000 pounds. 2,800,000 pounds.. 1,678,000 pounds. 2,850,000 pounds.. 2,782,000 pounds.. 13, 100,000 pounds 6,000,000 pounds.. 127, 230, 415, 1, 762, 358, 519, 552, 72, 361, 262, 553, 67, 415, 163, 900, 500, 120. 00 600.00 500.00 440.00 500.00 900.00 000.00 500, 00 800.00 400. 00 850.00 650.00 800.00 700. 00 500. 00 000. 00 000.00 7,427,260.00 CHEMICALS AND EXPLOSIVES. Commodity. Quantity. Value. Petroleum ... Turpentine Linoleum Shellac Garnetlae Varnish Paint drier Lubricating oil Kerosene oil Sperm oil Linseed oil (boiled and raw). Lard Costor oil Miscellaneous paints Coke 217,749 gallons 33,600 gallons 182,464 square yards. 9,000 pounds 987 bags 213,505 gallons 408,576 gallons 3,402,981 gallons 444,182 gallons 31, 400 gallons 201.626 gallons 57,050 gallons 79,740 gallons 13,294 tons. ■559 20 212 5 69 151 123 1,227 88, 53 228 53 160 300, 105 ,928.00 ,477.00 324. 00 130. 00 700.00 819. 70 663.00 072. 00 201. oO 668.00 743. 00 387.00 340.00 000.00 881.00 125547°— 20- -24 370 HISTORY OF PRICES DURING THE WAR. CHEMICALS AND EXl'LOSIVES— ConliiiULCl. Commodity. EXPLOSIVES (including RAW MATERIALS AHD FREIGHT AVIIEN FURNISHED BY NA^'Y). TNT, grade '-A" TNT, grade " B " TNX. Smokeless powder Black powder Ammonium picralc Picric acid Tetryl Chemicals for gas shells (estimated ). Priming caps CHEMICALS. Acetone Aluminum sulphate Ammonia, anhydrous Ammonia, aqua Ammonia, chloride Amonium phospliatc Barium chlorate Borax Calcium^ carbide Calcium cliloride Calcium magnesium chloride Calcium phosphide Carbon tetra-chloride Cartridge bag cloth Diphenylamine Dope, acetate Dope, nitrate E thyl chloride Ethyl chloride drums Gas,' cai'bon dioxide Gas, hydrogen .- . . . Gas, oiygcn Glue, dry Glue, liquid Glue, marme Glycerine Iron, reduced Magnesium carbonate Nitrating cotton PhenyleiBcLoninic acid Platinum and iridium Potassium permanganate SalicyUc acid Soda ash Sodium benzoate Sodium carbonate Sodium chlorate Sodium cyanide Sodium fluoride Sodium silicate Soap, cleaning and polishing Soap, laundry Soap, salt water Soap, toilet Soap, washing powder Silver nitrate Zinc dust Lead for painting purposes Zinc oxide Alcohol Mercury Sodium nitrate (for Indianhead) . Acids: Carbolic Hydrochloric Hydrofluoric Nitric Oxalic Sulphuric- Fuming 66° Baum<5 66° Baum6 60° Baum6 Carbon electrodes Caustic soda Caustic soda (concentrated lye).. Ferroalloys Sulphur Quantity. 10,527,000 pounds. 72,012,000 pounds. 30,000,000 pounds. 59,800,000 pounds. 1,151,750 pounds.. 4,550,000 pounds.. 20,000 pounds 20,000 pounds 18,100,000 caps. 14,100 pounds 40.000 poimds 305,000 pounds 34,000 pounds 506,800 pounds 40,000 pounds 11,000 pounds 41,800 pounds 762,000 pounds 17,000 pounds 162,000 pounds 5,750 pounds 410,000 pounds 1,070,000 square yards. 50,000 pounds 12,000 gahons 13,000 gallons 24,000 pounds 400 poimds 150,000 pounds 1,440,000 cubic feet 2,815,000 cubic feet 6,500 pounds 1,150 gallons 606,000 gallons 32,600 gallons 600 pounds 75,000 pounds 4,200,000 pounds 10,000 ounces 1,417.30 ounces 775 pounds 1,500 pounds 538 tons 500 pounds 42,250 pounds 92,000 pounds 11,300 pounds 11, 200 pounds 127,000 pounds 32,800 cakes 1,706,500 pounds 7,890,000 pounds.- 35,000 pounds 2,182,500 pounds 12,136 ounces 35,700 pounds 3,330,100 pounds 6,565,993 poimds 505,660 gallons 33,993 flasks 10,000 long tons 250,000 poiuids. 205,800 poimds. 117,200 pounds. 55,658 potuids.. 200 pounds 35,100 tons 1,156,780 poimds. 28,900 tons 17, 200 tons 800 electrodes. . . 6,325 tons 580,000 pounds.. 5,001.41 tons. Value. $5,633, 29,033, 13,280, 32,068, 298, 2,90-t, 12, 18, 327, 391, 86, 2, 57, 6, 1, 4, 28, 1, 7, 6, 45, 744, 30, 56, 27, 22, 16, 5, 22, 29, 21, 2, 850, 20S' 364 U 149: 2: 2: 16: 2: 2 16: 3: 1: 5: 1: 156: 483: 11: 144: 3: 3 322 729: 333 ,569: 8OO: 500.00 250. 00 400. 00 892. 70 664. 50 000.00 500.00 000.00 000. 00 756. 00 499. 50 720.00 748. 20 720. 00 020. 70 000.00 980. 00 319. 50 745. 00 331.07 452. 00 365. 00 100.00 800. 00 000.00 212.87 210. 00 080.00 ,000.00 000.00 460. 00 898. 30 678.00 650. 90 594. 00 , 807. 00 540. 00 , 125. 00 ,980.00 , 500. 00 , 868. 00 , 573. 75 , 373. 00 , 593. 31 ,000.00 , 345. 50 , 560. 00 ,004.00 , 904. 00 ,167.50 927. 00 ,543.75 , 6-16. 00 ,129.30 ,774.75 , 827. 24 ,213.00 ,579.00 , 433. 00 , 695. 00 , 892. 00 , 000. 00 97, 500. 00 0,159.00 13,177.50 8, 857. 77 97.50 1,660,700.00 19, 076. 00 804,160.00 311, 400. 00 53,520.00 507, 750. 00 41,797.00 1,587,891.00 152, 635. 25 100,827,611.32 GOVEENMENT CONTBOL OVER PRICES. 371 (2) REPRESENTATION OF THE NAVY UPON THE PRICE-FIXING COMMITTEE. The Navy was represented on the prke-fixing committee by Pay- master John M. Hancock, whose relation to it was liite that of the Army representative on the same committee. It should be added that the task of making Navy purchases was expedited by the forma- tion of commodity sections within the Navy, whose chiefs were members of and participated in the deliberations of the commodity sections of the War Industries Board. (3) COMMANDEERING. In peace-times Navy purchases were made in the open market, but during the war resort was freqnently had to commandeering and mandatory orders.^ The scope of the newly created naval board of commandeering was extended on February 1, 1918, "to act as a clearing house to supply all the Navy with information at hand, giving consideration to quantities, material, prices, suitability for Navy use, and other data relative to the stores produced." The work of the board consisted in making inventories of goods of in- terest to the Navy stored in warehouses and held by banks and for- warding agents for export. The Paymaster General gives the following account of the pro- cedure followed by the Navy in taking tin at a time when the market was rising: In the fall of 1917, 27,000 pounds of tin were urgently needed. Tlie tin market was jumping out of bounds. Several dealers were called upon without result. Tlie collector of customs at the port of New York was called by long distance telephone. He advised that a ship was in with a cargo of 250 tons consigned to three companies. The 13 tons required by the Navy were appor- tioned among those thi-ee companies and the tin paid for at 64 cents per pound, the approximate value before the market began to rise. With this beginning, arrangements were gradually made to restrain all tin warehoused in New York found to meet Navy specifications. Through the commandant at New York, approximately 2,00Q tons were placed under seal. This action prompted a dealer to place at the Navy's disposal 700 tons additional, which was con- tracted for at 64 cents per pound, the market price at that time being 80 cents per pound. Provisions were secured for the Navy generally by allocation or competition. But in January, 1918, it became necessary to obtain some Kotinashi (white) and Kintoki (kidney) beans by a joint 1 The principal statutes relating to price control, and authorizing commandeering and ■mandatory orders for use by the Navy were the Naval appropriation act, Public No. 479 of Mar. 4, 1911, and succeeding years ; naval appropriation act. Mar. 4, 1917, naval en- gineering fund (Public, No. 391, 64th Cong.) ; the urgent deficiency act of June 15, 1917; the food and fuel act. Public No. 4, 65th Cong., of Aug. 10, 1917; and the naval appropriation act, July 1, 1918 (Public No, 182, 65tTi Cong.). ^ 372 HISTOKY OF PRICES DURING THE WAR. Ami}'' and Navy commancleer, whereby 42,000,000 pounds of beans Avere secured in California. This notable instance of commandeer- ing, one of the first large cases of food seizure in our history, was the more interesting since the Navy saved to itself middlemen's profits by commandeering the cargo by a radio message before the ships reached port. Another interesting instance of control was that exercised by the Navy over the prices of canvas, which is described in the annual re- port of the Paymaster General as follows: Unusually heavy demands for certain numbers and weights of canvas and d\ick in the fall of 1917 made it necessary for the Navy to go into the market rather heavily. In view of the abnormally high prices prevailing in the com- mercial market, manufacturers were apparently unwilling to bid. The War In- dustries Board was requested to provide the Navy with information as to the mills from which the Navy could expect deliveries within a reasonably short time. When this complete list M^as received, mandatory orders were issued with a provisional price set at the figure which appeared just on the basis of all available data in the hands of the Navy. The receipt of these orders at this provisional price appeared to occasion some concern in the industry and drew forth replies to the effect that the material could not be supplied. The Navy referred these claims of inability to supply to the subcommittee of the War Industries Board. This committee had stated, at the time of furnishing the Navy with the information used, that the capacity of every available loom was known to it. The protest then became one as to price, the industry claim- ing that the material could be supplied but that the Navy's price was entirely unreasonable. To this statement the Navy replied with the request for facts and cost figures substantiating the claims for a higher price, assuring the manu- facturers of a fair profit over and above manufacturing cost. Owing to non- receipt of the requested figures, the case lapsed. Subsequently the war service committee of the cotton industry accepted for the trade a price practically identical with the provisional price set by the Navy. Not only did this action save money directly for the Navy, but it also served as an anchor for Army and civilian pui'cliases, since the canvas mills were obviously unable to explain any material discrepancy to other buyers over and above the price at which the Navy was obtaining canvas. A situation similar to that of canvas arose with regard to denim. Wlien the manufacturer asked 40 cents a yard for his material, the Navy served an order for the quantity needed at about 34 cents — a difference of over $120,000 from his quotation. The manufacturer finally admitted the justice of the Navy price and requested a trans- fer from a Navy order to a voluntary contract. (4) THE SUPPLY OF RAW MATERIALS TO CONTRACTORS BY THE NAVY. One of the unique and effective methods by which the Navy as- sured itself of the completion of contracts at reasonable rates was its practice of supplying raw materials to its contracting manufac- turers. The Navy, for example, bought 3,000,000 pounds of wool in GOVERNMENT CONTROL OVER PRICES. 373 July, 1917, and offered that wool to its cloth contractors at a reason- able price. The contractors thus were in a position to ignore ex- orbitant quotations made by private wool dealers, and to buy of the Government. The Navy's holdings generally prevented the price on contractors' options from exceeding the price set by the Navy on its own supply. In a like manner the Navy arranged for a purchase of about 25,000 bales of Australian wool from the British Government. Since the trade did not know generally how small an amount the Navy had, and the consequent ease with which it could be exhausted, there was given to contractors an effective weapon for making private purchases at reasonable figures. It was estimated that the direct saving brought about by this wool purchase amounted to $1,500,000. The success of the Navy with its original small wool purchase became the basis for joint action by the war agencies in importing foreign wools and in taking over the entire domestic clip.^ (5) DETERMINATION OF " FAIR AND JUST " PRICES. When the commodity specialists within the Navy found that prices quoted by bids received in the regular openings were unjust, those bids were rejected and a Navy mandatory order issued. The work later followed of determining a " just " price for the materials taken by seizure. In the determination of a '' just " price the Navy made extensive uses of cost data supplied by the contractor, the Federal Trade Com- mission, or opinions expressed by the commodity sections of the War Industries Board. A Navy accounting officer was also ordered to the plant to report on the cost of manufacture. The Navy worked out with remarkable precision the factors that would be allowed as costs, and endeavored to standardize them. 1 Annual report of the Paymaster General for 1918. g. THE FEDERAL TRADE COMMISSION. In the field of public price control during the war the Federal Trade Commission has performed primarily an advisory function by collecting and interpreting for the price-fixing agencies data on costs of production. In the case of news-print paper, however, the activities of the commission have extended somewhat further and have taken the form of administrative control over prices. The regulation of the prices of news-print paper differs materially from the instances of war-time price fixing, in that the need for regulation appeared and the preliminary steps in tlie control were taken considerably before the entry of this country into the war. On April 24, 1916, the United States Senate, impelled by the receipt of numerous complaints from publishers, adopted the following resolution : That the Trade Coiuniissiou is hereby requested to inquire into the increase of the price of print paper duiing the last year, and ascertain whether or not the newspapers of the United States are being subjected to unfair practices in the sale of print paper.^ Upon the passage of this resolution the Federal Trade Commission undertook an investigation into the prices and distribution of news- print paper. Finally, after a series of conferences between the manufacturers, publishers, and the commission, at a conference on January 26, 1917, it was suggested that the Federal Trade Commis- sion should " arbitrate the question of wdiat was a fair and reasonable price for the sale of news-print paper." - This the commission agreed to do, and on March 4, 1917, the prices upon which it had determined were announced and were accepted by a number of the news-print paper manufacturers of this country and of Canada. After this agreement was adopted a Federal grand jury for the southern district of New York found indictments against four of the signatories to the agreement for violation of the Sherman anti- trust law\ These signatories, accordingly, withdrew from the agree- ment, which soon collapsed. On November 26, 1917, a new agree- ment was made between Thomas W. Gregory, Attorney General of the United States, as trustee, and certain persons and corporations engaged in the manufacture and sale of news-print paper. It was 1 S. Res. 177, 64tb Cong., 1st sess., adopted Apr. 24, 1016. - Report of the Federal Trade Commission on the news-piiut paper industry, June 13, 1917. 374 GOVERNMENT CONTROL OVER PRICES. 375 provided in the agreement that the Federal Trade Commission should fix the maximum prices and terms of sale of the output of the news-print paper of the 10 signatory companies sold to purchasers in the United States for the duration of the war and three months thereafter. The findings and award of the Federal Trade Commission, con- cerning prices and terms of contract and sale of news-print paper, were announced on June 18, 1918. The manufacturers of news-print paper, parties to the agreement, considered the price-awards too low and appealed for a review to the United States circuit court. The decision of this court, rendered September 25, 1918, in the main sup- ported the contentions of the manufacturers and ordered a substan- tial increase in the original price awards of the commission. The detailed awards and price schedules are reprinted in the second part of this study, which contains the rules and regulations affecting prices adopted by various governmental agencies. 10. THE DEPARTMENT OF AGRICULTURE. Distinct lines of service for the Food Administration and the Department of Ag:ricnltnre were clearly drawn at the outset in order that neither should intrude upon the field of the other. The De- partment of Agriculture undertook the stimulation and supervision of the production of foodstuffs, and the Food Administration that of providing for distribution. It was intended, of course, that many rules of the Food Administration should work for a vital increase of production. But measures which related to the producer in the main were administered strictly by the Department of Agriculture. Little occasion arose for direct administrative action on the part of the Department of Agriculture which might be ascribed to the emergency conditions arising from the war. The only approach to regulation which can be considered as coming within the scope of the food law and which related to prices took place in connection with fertilizers and farm equipment. (i) THE CONTROL OF FARM EQUIPMENT. The food supply of the world is peculiarly dependent upon the adequate production of farm equipment, and it was necessary to stimulate production of farm implements without too greatly in- creasing their prices to the producer. Farm implements were caught in the current of rising prices because of the rising cost of raw materials and labor, and by the latter part of 1917 their prices were climbing at an extraordinary rate.^ The American farmers became disturbed and complained that prices were unduly high. Moreover, there were many difficulties encountered in securing certain farm machinery. The needs of the hour, however, were too acute to allow any disorganization or delay in the production of foodstuffs, and it became apparent that govern- 1 The folio-wing index of farm implement prices, based on the average price of 1911, •which is made e It is of interest to note that while the Food Administration paid no attention to replacement value in determining selling price, the Department of Agriculture left the question as to whether replacement value would he considered in figuring costs entirely to the individual licensee. The attitude of the Department of Agriculture in this connection is well presented in the following public statement made in the midsummpr of 1918 : The prices of farm equipment are more or less seasonal, but if the price should rise or fall during the season, then, to be consistent, a person who wishes to sell on the basis of replacement values would he obliged to sell at a loss if the price fell. Equipment carried over from one season to another— that is, the residual from a pre- vious season's reasonable supply— should be considered In the same manner. There- tore, if persons have sold at replacement values, they must continue to do so when a drop in prices comes, and carry the same amount of stock as in the beginning throu^-b- cut the period of the high prices in order not to profiteer. " In short, it will not be considered profiteering if farm equipment is sold on the ba-.!s of replacement prices, provided the goods sold are replaced at once at replace- ment prices and this practice is continued during the period of high prices caused by the war." " ■^ 378 HISTOEY OF PEICES DURING THE WAR. agricultural imiDlements was declared illegal, and " the holding, con- tracting, or arranging for a quantity of equipment in excess of rea- sonable requirements" was con- VEBBTEOiNXx NUMtcicxr Piaco or — FERTIUZERS -2^L .COMMODITIES n J, li| . lit ,, ^ , ilUi? .. f , fe , Hn PX.0 TiS I tOiA I lgl3 1910 1 1917 I l9lO tcflrw:^^^ TTT r^"^"ii"f"l"^"& f"i"l"^ Tg 5 irg E 1917 i lOia I sidered evidence of hoarding. In the autumn of 1918 the farm-implement manufacturers wished to increase their prices. It was the contention of the manufacturers that the in- creased cost of freight, labor, and raw materials had increased their costs about 10 per cent, and that they should be allowed to increase their selling prices to a commensurate degree.^ The Federal Trade Commis- sion, which was making a cost investigation in the implement industr3% had not yet secured sufficient data to justify any action on the part of the De- partment of Agriculture, and it was not thought advisable to make any definite decision. The profits of the preceding- year, however, had, in the opin- ion of the Department of Agri- culture, been " well above the prewar average,"- and this, taken in consideration with the general conditions of the industry, led the authorities to believe that a rise 1 In a letter of Oct. 22, 1919, from the farm-implements committee representing the industry to the Department of Agriculture, in which permission for the increase in price was asked, the following facts were emphasized : 1. The advance in freight rates over the preceding spring cost the industry approxi- mately $7,500,000. 2. Labor costs had increased from 20 to 40 per cent,, or approximately $15,000,000, thereby making a total increased cost of $22,500,000, " which would be 7-1 per cent on §300,000,000 sales volume." 3. Malleal^les and other items entering into the construction of farm implements had also gone up in price. The committee asked the Department of Agriculture to rule " on the question of the average amount of advance in selling price " that would be sanctioned, and added that the general view of the industry appeared to be that conditions justified an average advance of approximately 10 per cent. 2 The Department of Agriculture apparently doubted several of the contentions of the industry as is evidenced in the following extract from a letter on Oct. 28, 1918, iu reply to the request that they be allowed to increase prices : " It would be of great assistance if you could give the information upon which the extra cost of the industry of seven and a half million dollars" as based for freight ad- vances, so we could have some detatils for this huge figure. The same applies to labor advances. The figures 20 to 40 per cent seem to me too high, as I have seen no figures to justify such a rise all round." Weighted index numbers of prices. — Fer- tilizers and " All commodities." — By months, January, 1913, to December, 19 18. (Average quoted prices, July, 1913, to June, 1914=100.) goveejstmejstt control over prices. 379 of prices would be unjustified. And the price lists of early 1918 were continued through 1918 without any change. (2) FERTILIZERS, No attempt was made by the Department of Agriculture to exer- cise direct control over the prices of fertilizers, although the im- porters and manufacturers and distributors had been licensed under the presidential proclamation of February 25, 1918. " The activities of the department, indeed, consisted mainly in helping the industry to secure cars and fuel during periods of stringency. The iDrice of fertilizers was, however, i^robably affected by the work of the department in distributing nitrate of soda to farmers throughout the country. In the year 1918, 75,000 short tons were sold at a price of $75.50 per ton. The 1919 demands approximated 150,000 tons, the selling price of which averaged $81.^ iThe present tendency of fertilizer prices is shown in reports received by the De- partment of Agriculture which indicate that the fall of 1919 will witness a drop of about 30 per cent in the price of mixed fertilizers in various southern States. II. THE BASIS FOR DETERMINING A FIXED PRICE. The student who turns through the several chapters that have gone before, and seeks there a sharp analysis of the policies that lay at the bottom of each control, will be disappointed. The Con- gress or the President formulated no general rule of price fixing, upon which each control agency might put its finger, beyond their hope that prices would remain near enough the cost of production to yield only " reasonable profits." The various war-time agencies, therefore, each went its own way always with the approval of the President, and each set up its peculiar system of control. The price-control boards generally were given cost data through the Federal Trade Commission, and this fact did give them a some- what common approach in their bases for determining upon a fixed price. But not during the whole war were the boards in working agreement upon what should constitute the costs allowable for pro- duction, or the " reasonable profit " allowable above those costs once they had been determined. They were at equal loss in the beginning, once each had satisfied its own mind what to allow as a "reasonable profit," whether to grant that " reasonable profit " to each producer above his. own individual cost of production, or make it applicable without scruples to low-cost and high-cost producers alike. The Food Administration generally chose the more flexible control, made possible by wide uses of profit margins for" application by each individual. The price-fixing boards, strictly speaking, however, came to adopt a single rather than a variable price, fixed somewhere above the " bulk line " of production. (i) THE OBJECTS OF THE PRICE FIXERS. It is important to bear in mind at the outset that the immediate objects at stake with the various control boards were not always identical. The War Industries Board and price-fixing committee, for instance, gave emphasis to the stabilization of prices pertaining especially to Government purchases, while the Food Administra- tion and Fuel Administration emphasized the protection of the pub- lic. The main object of all price-control boards at Washington, however, was to stimulate and maintain a maximum of production" and it was to this problem they all gave attention in some manner. The Food Administration and the Fuel Administration did not, of course, await the announced intention of the Government to pur- chase a particular commodity before adopting some form of con- trol if public necessity required. There were in point of fact close 380 GOVERISTMEI^T CONTROL, OVER PRICES! 381 and direct relations between Government orders and the regulations of foods and fuels, through food supplies going to the Army and Navy and the supply of fuel for war manufactures. But the War Industries Board, and later the price-fixing committee, took as their main concern the prices of commodities which were needed in great quantity by the Government. The origin of every regulation by the price-fixing committee lay in the circumstance that the Government purchases were on a great scale and threatened to disturb market prices.^ The main object of the price-fixing committee was the stimulation of production, and it was that factor rather than the de- sire for a low price alone which influenced them in determining upon various fixed prices. They did not, it should be emphasized, work always upon the theory that the highest price would assure an ulti- mate maximum production when wage or other problems compli- cated particular situations.^ They strove to fix their maximum prices at points high enough to encourage production adequate to meet the war program, but no higher. (2) THE METHODS OF CONTROL. So many kinds of control affecting prices were exercised during the war that an arbitrary line can scarcely be drawn separating price from other controls. The method of this inquiry has been to count as affecting prices those controls exercised over requirements, clearances, allocations, conservation, and priorities, but to study them only in a general way. The main business of this study after all has been an analysis of the controls dealing directly and strictly with prices. These controls include the setting of minimum and maximum prices known commonly as " fixed " prices, the setting of maximum margins of profit, or the fixing of special prices for Gov- ernment purchase solely. The latter prices pertaining to Govern- ment purchases might in another sense be classed under options or outright purchases, and involve a study of the commandeering and requisitioning orders. These kinds of price control were exercised by different boards in diverse ways, determined usually by the powers at their command. The conspicuous instance of a minimum price set during the war was that made by the Congress on August 10, 1917, when it fixed a minimum price of $2 per bushel for wheat. The whole body of regulations administered by various boards, with but three excep- tions, were designed to hold prices down and might be called either " maximum prices " or " maximum margins of profit." There fol- lows a word in explanation of the method by which each board chose one or the other of these kinds of control. ^ Price-fixing r.s Seen ty a Trice-fixer, by F. W. Taussig, formerly of the price-fixing committee. ^ Lieut. Col. Robert H. Montgomery, formerly of the price-fixing committee. 382 HISTORY OF PRICES DUEIlsTG THE WAR. Tlie War Industries Board, and the price-fixing committee after March 14, 1918, concerned themselves solely with setting ]3egs beyond which prices might not rise but below which the law of supply and demand theoretically was given free play. But in fact the paucity of real power given to the board and the committee made them bar- gain virtually with the trade until an agreement was reached. Their control might more properly, therefore, be called " agreed-upon maximum prices " between the Government and the industry. The Food Administration, while sometimes virtually fixing j)rices b}' effective roimdabout methods, did not in the main utilize the fixed-price method of control exercised by other boards and seemed almost to boast that it had no legal power to fix prices. Their atti- tude was the more significant, furthermore, because apparently it represented a real conversion to some definite policy of control. The point of departure was, it would seem, one of policy rather than power, since the Food Administration was granted more liberal powers to control prices by Congress than were the War Industries Board or the price-fixing committee. The Food Administration control was more nebulous than any other control at Washington, and from many angles more flexible as applied to widely used staples. It consisted in the setting of maximum margins of profit, determined generally upon the reasonable prewar profit announced in circular form, with the intention that each individual affected should apply the approved margins in his own business. The Fuel Administration, with a firmer legal authority to do so than any other price-control organ at Washington, fixed prices in a stricter sense than any other board. The War Trade Board exer- cised its control over prices by its power to stipulate the conditions upon which import and export licenses would be granted. The Army and Navj^, interested only in their own purchases, worked out schemes whereby Grovernment prices were determined and enforced by their power of commandeering or requisitioning. (3) THE DATA USED IN FIXING A PRICE. The most useful data, which the war boards sought to have on hand before beginning the determination of a fixed price, were sched- ules of the costs of production. The Federal Trade Commission, with its hundreds of accountants busy over the country, supplied cost figures especially for the War Industries Board, the price-fixing committee, and the Fuel Administration.^ The various interpreta- 1 The Federal Trade Commission during the war made confidential cost studies -upon the following : Bituminous coal ; anthracite ; coal, jobbing ; coal, retailing ; coal, docking ; crude petroleum ; fuel oil ; kerosene ; gasoline ; lubricating oil ; aviation gaso- line ; castor oil ; iron ore ; coke ; charcoal ; pig iron ; ingots ; blooms ; slabs ; billets ; rails ^ shapes; plates; bars; sheet bars; sheets; rods; wire; tin plate; wii-e rope; steel rounds ; forged billets ; nickel and carbon steel bars ; steel slugs ; Davis wheels ; cast-iron pipe ; high-speed tool steel ; steel castings ; malleable-iron castings ; fuses - GOVEENMEISTT CONTEOL OVER PEICES. 383 tions put upon different cost data in the determination of the point above which to allow a " reasonable profit " are considered later. In addition to material relating to costs of production there was made available to various control agencies at Washington through the price section of the War Industries Board a comprehensive set of quotations of commodities at wholesale. These prices were espe- cially useful where cost data were not available and where it was desired to know how far above co,sts speculation in the market had carried prices. It was not possible, except where confidential re- ports were available or volunteered, to report contract jDrices, although in the case of several of the most important commodities dealt with the bulk of sales was made under contract. For a great many of the transactions current quotations were of little significance because of outstanding contracts. Old contract prices were of par- ticular importance in the consideration of control over crude iron, steel, copper, and sulphuric acid. (4) THE PROBLEM OF THE LOW-COST AND THE HIGH-COST PRODUCERS. It was obvious from the outset that producers would not strive to turn out their maximum of production unless assured of a price high enough above their costs of production to yield them a reasonable profit. But as soon as an investigation into the cost of producing any commodity began, wide differences appeared between the costs incurred by the several producers. That problem remained through- out the war one of the most intricate of those confronting price-fixing boards. and torpedoes ; locomotives ; locomotive cranes ; farm machinery ; farm machinery, re- tailing ; sisal twine; automatic sprinklers; automatic sprinklers, installing; clinical thermometers ; copper ; nickel ; lead ; manganese ore ; aluminum ore ; aluminum ingots ; ' aluminum products ; zinc ; zinc sheets ; zinc plates ; zinc concentrates, reducing ; monel metal ; quicksilver ; brass and copper sheets ; brass seamless tubes ; brass rods ; insulated copper wire ; sand and gravel ; crushed stone : riprap stone ; asbestos fiber ; asbestos prod- ucts ; cement ; common brick ; sand, lime, brick ; lire brick ; hollow building tile ; gypsum wall board ; gypsum plaster board ; fiber wall board ; yellow-pine timbers ; yellow-pine lum- ber ; spruce lumber ; Douglas fir ; hemlock lumiber ; mahogany lumber ; logs ; logging ; locust treenails ; windows and doors ; birch logging ; rosin ; lumber, retailing ; boxes and barrels; wood pulp; sulphile pulp; newsprint paper; book paper; ^envelopes; stationery ; chip board ; container board ; acetone ; acetate of lime ; alcohol ; sulphur ; sulphuric acid ; caustic soda ; chloride of lime ; soda ash ; bicarbonate of soda ; wash- ing soda ; liqxiid chlorine ; calcium chloride ; hydrochloric acid ; glycerin ; pintsch gas ; cottonseed crushing ; cotton ginning ; cotton, compressing ; cotton linters ; cotton yarn ; cotton duck ; shelter tent duck ; tape and webbing ; sheetings ; denims ; gauze ; towels; wool, wholesaling; woolens, wholesaling; rags, wholesaling; kersey lined breeches ; sheepskins, importing ; hides, wholesaling ; sole leather ; black harness leather ; calf upper leather ; kip upper leather ; side upper leather ; boots and shoes ; boots and shoes, retailing; slaughtering ; meat and by-products; lard rendering; lard substitutes; milk ; grain, wholesaling ; flour ; flour, jobbing ; bread ; canned vegetables ; canned . fruits ; canned meat ; canned fish ; canned milk ; canned condiments ; dried fruits ; smoking tobacco ; chewing tobacco ; cigarettes ; oil tanker transportation ; towing ; shipr building, accounting. 384 HISTORY OF PRICES DURING THE WAR. Less difficulty would have been encountered in finding a single unit cost of production for each commodity c-ontrolled, perhaps, had the ■whole of each commodity been produced, by one company. It was relatively simple to represent the cost of producing a pound of nickel or of aluminum in this country because the output of each was virtually controlled by a single concern. But the cost of producing a ton of pig iron varied from $18.14 to $45.72 in September, 1918, according to figures collected by the Federal Trade Commission. The cost of producing a ton of beehive coke' varied, in like manner with different producers, from $2.93 to $11.45. The cost of produc- ing a ton of anthracite coal within the Pennsylvania district varied from $2.64 per ton to $7.06. An excellent example in the diversity of unit costs is brought out by the Federal Trade Commission report upon the costs of producing rosin, which show a variation in the per cent of margin on investment running for different companies from 10.7 per cent to 275.1 per cent.^ The price-fixing committee gave considerable thought to this problem, and endeavored carefully to determine whether it Avould be better to fix upon a set margin of profit above cost and thus fix a different price for each producer, or select a point somewhere between and make that single fixed price applicable alike to the low-cost and high-cost producer. There did not appear during the whole war a more intelligent in- quiry into the problem provoked by a difference in cost between pro- ducers than that initiated by Mr. Eobert S. Brookings as chairman of the price-fixing committee. Mr. Brookings, early in September 1 Federal Trade Commission figures, covering first 10 or 11 months of 191S: ROSIN [Production margin, based on average sales value.] a Company. Barrels produced, 280.O Sales value produc- tion (per barrel). Cost of produc- tion and market- ing ex- pense(per barrel) (per bar- rel). Invest- ment (per barrel). Per cent of mar- gin on invest- ment. No. 16.. No. 2 c.- No.3 <•.. No. 4 6.. No. 5 c.. No. 6f.. No. 7 c. No. 8*.. No. 9 c.. No. 10 6. No. 116. No. 12 6. Average. SIO. 69 9.17 9.31 10.83 8.67 9.86 10.23 10.91 10.12 11.31 11.26 10.62 SIO. 087 8. 0S4 7.269 8.549 6.297 6.240 6.181 5.727 4.538 6.183 4.910 3.922 •UO. 603 1.086 2.041 2.281 2. 373 3.620 4.049 5.183 5.582 6.127 6. 350 6.698 .13.445 d 10. 723 3.090 7.775 d 12. 870 3.120 d 12. 894 2.198 4.812 4.125 2.732 2. 434 10.25 6.415 3.833 5.926 17.2 10.7 50.5 29.5 18.1 115.3 31.4 235.8 116.5 148.4 232.0 275.1 85.8 a Companies range in order of margin per ca??, from bw to high. 6 Eleven-month periodj. c Ten-month periods. p Heavy investment due to output being less than the still's capacity. GOVERNMEI^rT CONTROL OVER PRICES. 385 of 1918, asked various leading economists familiar Tvitli tlie price problems at Washington, and the members of the price-fixing com- mittee, to present memoranda upon the respective advantages of fixing a variable and a single price. These opinions, made by men peculiarly qualified by war-time experience to judge the practical as well as the theoretical aspects, are worthy of analysis. There follow the memoranda given by Dr. F. W. Taussig, member of the price- fixing committee and chairman of the United States Tariff Commis- sion ; Lieut. Col. Eobert H. Montgomery, representative of the War Department upon the price-fixing committee; Mr. Wesley C. Mitchell, chief of the price section of the War Industries Board ; Mr. William B. Golver, member of the price-fixing committee and chairman of the Federal Trade Commission; Mr. W. F. Gephart, of the United States Food Administration ; Mr. H, M. Channing, chief of the legal section of the War Industries Board; and, finally, Mr. Eobert S. Brookings, chairman of the price-fixing committee. 1. Dr. F. W. Taussig, chairman of the United States Tariff Com- mission and member of the price-fixing committee, wrote the follow- ing memorandum on the question of " Uniform or varying prices " : (1) If differences in cost of production between different producers were — (a) Clearly ascertainable. (6) Due solely to differences in the natural resources utilized by them, it would not be impracticable to purchase from them at prices based on their differing costs. As a matter of fact, neither of these conditions is ever present. In the first place, costs are not clearly ascertainable. They vary from month to month, from year to year. We get figures from cost accountants which are v/orked out to the last cent, but which, as a matter of fact, contain arbitrary and debatable elements. Any endeavor to pay to each producer according to his costs would lead to perpetual wrangling, perpetual requests for changes and modifications. In the second place, differences in cost are by no means due solely to differences in natural resources. They arise very largely from differ- ences in skill, energy, efficiency. To pay a low price to a producer who has brought down his costs through slvill and ability is to penalize the most effective form of human effort. . (2) Sale at varying prices is in any case not practicable. If the Govern- ment fixes a price, it must be a price uniform for all producers. Were this not the case, there v/ould be constant squabbling and intriguing for favored position. (3) The main problem is that of purchase, and I am unable to see the practicabilit3', as conditions of production stand to-day, of carrying out a policy of purchase at' varying prices. The only possible way of carrying it out would be for the Government to take over all the establishments and try to run them. Quite apart from the constitutional questions involved (as regards the fair price which the Government must pay for each plant) the actual adminis- tration and running of an enormous variety of plants would be a hopeless task. (4) The only feasible plan in price fixing is that of establishing a uniform price, which should ordinarily be paid for the whole of the output. The uniform price which the Government thus must fix is not ne^essjirily the cost of production price. It need not be either an average cost of production 125547°— 20 25 386 HISTORY OF PEICES DUEIISTG THE WAR. price or a marginal or " bulk line '' cost. The Governuieut luight be expected umler ordinary conditions to pay tlie market price that would obtain in the absence of regulation, irrespective of cost. Under conditions of war stress and war exigency, however, the Government must pay for an essential commodity that price which Avlll maintain and, if possible, stimulate the volume of i^ro- duction. Such a stimulating price is not far from the marginal or " bulk line" cost. There ^\■ilI always be sporadic producers having very high costs, higher than the " bulk line," who may be disregarded. It is conceivable that in extreme need for a particular commodity the Government will make some special bar- gain with the small nximber of high-cost producers. But sucli transjictions are extremely dubious and are to be avoided except in the extremest urgency. As regards them, it must be made out tliat the very high cost of the producers is not due to slackness or inefficiency on their part but to poor natural resources, and that the payment is indispensable for the maintenance of a supply abso- lutely needed. 2. Lieut. Col. E. H. Montgomery, representative of tlie War De- partment on the price-fixing committee, submitted the following memorandum on the " Fallacy of attempting to pay a different price for the same thing as applied to a basic connnoclity and an entire industry " : (1) I strongly object to any arrangement which will result in paying one producer of a standard, article or commodity a higher price than is paid to another producer of the same thing, for the following reasons : Any plan which purports to limit the profit of each producer — (a) Ignores the sound, economic, differential to which the low-cost etScient producer is entitled ; {h) It is in effect a return to, rather than a departure from, the cost-plus system. The War Department's present policy in this respect is to avoid cost- plus contracts whenever possible; (c) Penalizes the low-cost producer by placing him on an equality (as to profits) with the high-cost producer. Such a penalty is in direct violation of existing intelligent business methods; (d) Places a premium on the high-cost producer, who is the one to be penalized, and actually encourages a continuance of inefficient, extravagant, wasteful management ; (e) Purportedly gives the Government an opportimity to buy at a low price from the low-cost producer, without any guaranty, however, that the low- cost producers will continue to be low cost. "With a penalty on low cost and a premium on high cost, is It not reasonable to predict that the low-cost man will inevitably increase his costs — fraudently or because he makes as much money on high costs as on low costs, and can pay as much as he likes for sup- plies, labor, etc.? jXf^ Can not bo effectively administered, because it is expected that the machinery of control will include a system of reports and inspection emanat- ing from hundreds of producers, who have every interest to overstate their costs. The available supply of skilled accountants in this country is exhausted. The present demand from legitimate sources greatly exceeds the supply. My familiarity with this matter leadsjine to object to setting up a system of control which is not operatively possible ; ] (f/) Presupposes that fair maximum prices can not be fixed. This is a familiar argument and is of academic interest only and can not control our GOVEE,NME]SrT COISTTROL OVER PRICES. 387 action, because every business man tliinks that his problems are more complex than those obtaining to other businesses. As they can not all be right, the argu- ment falls through of its own weight. (2) I am strongly in favor of limiting the profits of all contractors who sell to the Government to a reasonable return on capital invested. Over a year ago the war committee of the American Institute of Accountants, of which I am a member, unanimously adopted a recommendation to this effect, but we could not secure its adoption. We are now forced to lis a price which will apply to the Government and public alike. When dealing with an entire indus- try the elements underlying public price fixing are not comparable with the ability of the Government to supervise individual contractors. I think the individual contractor can be regulated, although we have a big uncompleted job on our hands in this respect. I do not think we can regulate the costs and methods of 100 per cent of any industry. I do not think that we can fix fair maximum prices on representative grades, etc., and regulate such prices. The differences between regulating costs and processes (which are secret) and regulating prices (which are public) are, in my opinion, vital and con- trolling. (3) As the War Department representative on the price-fixing committee, I expect to maintain the position that a policy of fixed profit per unit, without limitation on costs and extending to an entire industry, is unwise and con- trary to the best interests of the Government and the industry affected alike. That a failure to encourage and reward the low-cost efficient producer would be a step backward which the War Department will not stand for, because without recognition he will cease to exist. 3. Wesley C. Mitchell, chief of the price section of the War Indus- tries Board, submitted the following memorandum relative to " One Price for Each Commodity versus a Graded Scale of Prices.'' MVEBSITY OF PRICES PREVAILING UNDER NORMAL PEACE-TIME CONDITIONS. On any given day each of the great staples is sold at several or many different prices. (1) Varying grades, of course, command different prices. (2) So, too, do large lots and small lots of a given grade. (3) There are differentials betv/een different markets. (4) Original producers, local buyers, manufacturers, commission houses, wholesalers, retail dealers, etc., in turn charge higher prices than they paid. (5) There is often a wide difference between current market quotations and contract prices. (6) Cash prices are usually lower than prices which involve waiting for payment. (7) Even the same class of dealers selling the same grade of the same article in the same amounts in the, same market on the same day do not all receive the same price. This last proposition is particularly important during a period of extraordinary changes, such as we had in 1916 and the first half of 1917. These diversities are standardized rather than abolished by a single-price policy. The adoption of a single-price policy does not mean the abolition of the above-listed differences. It usually means that all business men of a given class (for example, all copper miners or all shoe manufacturers) rei6eive prices 388 HISTORY or prices during the war. that vary in standard ways from a single base price. Differentials for grades, markets, time of payment, size of purchases, etc., may be more or less stand- ardized, but they are not eliminated. Further, the base prices are usually merely maxima, and anyone can charjre less if he chooses. Aside from the fact that tlie base price is fixed by Government instead of by contract, the chief changes from peace-time conditions are probably that — (1) Day to day fluctuations are reduced, if not eliminated; (2) There is less difference between the bargains struck in a given market on a given day ; and (3) Current market quotations and contract prices (under new contracts at least) keep closer together. A graded scale of prices would be more of a departure from peace-time con- ditions than a single-price policy. For it would mean giving to different pro- ducers prices w'hich vary by margins, not based on differences recognized in ordinary business, but on some other ground, particularly differences of cost. In ordinary business, the fact that a man produces at liigher cost than another does not enable him to get a higher price. The crux of the practical problem is whether public policy requires tlie price-fixing committee to introduce into the business system a revolutionary change by making differences of cost a reason for corresponding differences of prices. Circumstances ichich may justify prices graded according to costs. — In some cases it may be necessary to stimulate production to the utmost and to restrict ordinary civilian consumption. The most effective means to that end is a single base price so higli that all productive capacity will be iised, and so high that economy must be practiced in consumption. Of course, that plan gives low-cost producers extraordinary profits — an objection that is only partially met by the excess-profits tax, since this tax always leaves part of the extraor- dinary gains to the fortunate enterprise. In other cases, it may be necessary to stimulate production, but not to re- press civilian consumption. Indeed, one chief aim of regulation may be to keep down costs to the consumer. The high single price would accomplish the first end but obstruct the second. A graded scale of prices, however, might be arranged to call out the bulk of the low-cost production at a moderate rate, and also to get a certain amount of high-cost production at a different figure. But how can consumers get the benefit of the moderate price, and at the same time let the high-cost producers have a remunerative market? I see no way except to arrange a Government-buying monopoly, that would take over the wholQ product, at different prices, then average the costs, and sell at a figure which would just coA^er the outlay plus administrative expenses. Such a course may be feasible in the case of a few great staples, like sugar, but it is scarcely feasible as a general policy applicable to commodities at large. Effect of the txco' systems upon efficiency. — A graded scale of prices, if car- ried out in full detail, is practically a "cost-plus" system of Government pur- chases. That system has been tried out and (displaced because it gives an in- centive to wasteful and inefficient management. The single-price policy, on the contrary, is' like the ordinary competitive-price system in stimulating efficiency, at least in those cases where the price-fixing committee is not compelled to set their price very high. A moderate price will often enable three-quarters or more of the product to be turned out at profits ranging from the liberal to the moderate, put perhaps 10 per cent more of the producers on their mettle to break even, and put the remaining 15 per cent of least efficient producers out of business — to the advantage of the community. GOVER^STMEISTT CONTROL OVER PRICES. 389 Conclusion. — (1) A single-price policy, allowing differentials for quality, trans- portation, size of transaction, terms, credit, and margins between manufac- turers, wholesalers, and retailers makes less of a departure from normal busi- ness conditions than a graded scale of prices based on differences of cost would make. (2) The latter policy, however, may be desirable in the case of a few prime requisites where there is the double need of stimulating production to the ut- most and keeping down cost to the consumer. To achieve both these results, however, is scarcely possible without setting up a Government monopoly for buying the total output and distributing it at a uniform price. (3) In the great majority of cases, the single-price policy is to be preferred, because of its simplicity — a great point in view of the administrative perplexi- ties which the price-fixing committee confronts. (4) Finally, the single-price system is more favorable to industrial efficiency than the graded price system — at least, when the price taken is not very high in the scale of costs. Excess profits taxes will turn part of the large gains of low- cost producers into the Public Treasury. Summary. — (1) A single-price policy allowing differentials for quality, trans- portation, size of transaction, terms of credit, and margins between the manu- facturer, wholesaler, and retailer makes less change from normal business conditions than a graded scale of prices based on dilTerences of cost would make. (2) A scale of prices graded according to costs, however, may be pre- ferable in the case of a few prime requisites, when it is necessary both to stimulate production to the utmost and to keep down costs to the consumer. To achieve both of these ends, however, it seems necessary to supplement price fixing by creating a government buying monopoly to take over the entire output, average the costs, and distribute the goods at a uniform price. (3) The single-price policy requires no such elaborate machinery and is therefore far simpler to administer, to explain, and to defend. (4) Excess profits taxes partially remove the objection that the single- price policy gives government favors to the low-cost producers. On the other hand, the graded scale of prices carried out to its logical conclusion is practically equivalent to the " cost-plus " system, which has been aban- doned on government contracts because it offers an incentive to wasteful and inefficient management. 4. Mr. William B. Colver, chfiirnian of the Federal Trade Com- mission and member of the price-fixing committee, wrote the follow- ing memorandnm on the question of "A single price as opposed to a pooling with varying prices " : I beg to submit for your consideration some observations as to price fixing and the theory of the single price as opposed to a pooling with various prices. It would seem that price fixing has two and only two purposes — (1) To insure adeqiaate production; and (2) To guard against a price structure which shall be so high as to be un- healthy. In applying the single-price theory, it is held to be necessary, in order to in- sure the required production, to fix a price high enough to make profitable the operation of marginal, high-cost producers. It follows that in meeting the first requirement, namely, the insurance of adequate production, we defeat the sec- ond purpose, namely, the avoidance of an unduly high price structure. I raise the question now whether or not, in the light of experience, the single- price theory, as put into practice, has been successful. '' 390 HISTOEY OF PRICES DUKIKG THE WAR. Some difficulties that liavo followed this practice may be enumerated as follows : First. A maximum price becomes u minimum price, and few will voluntarily sell under the maximum price even though low-cost producers mit^ht well afford to do so. Not only lias this practice been appi'oved but it has been aided and abetted by a declaration that the Government itself will not accept volun- tary offers of commodities at prices lower than fixed prices. This would seem to be a complete inversion of the second purpose of price fixing. Second. The single price, lest it shut off the needed production, must be high enough to give profit to the highest cost producer that it is desii^ed to con- tiniie in business. Third. The consequent price is far above the price indicated by the average cost of production. Fourth. The cost of living and the cost of secondary manufacture is made unnecessarily high and the mounting prices become a vicious circle constantly spiraling upward. Fifth. Such single price, while producing excessive profits for low-cost con- cerns, does not necessarily stimulate production but actually acts as a check on production. (This will be attempted to be shown in detail hereafter.) Sixth. The single price tends, in the case of low-cost producers, to encourage wastefulness and extravagance and to check rathei' than to stimulate pro- duction. It is heM that high prices stimulate production and are purge<.l by the application of drastic excess-profit taxes. Let us examine this. Assuming that highei'- prices do stimulate production {though under the jircumstances here under considei-ation this does not seem beyond dispute), increased production, under ordinary circumstances, invariably makes for lower cost and hence, under fixed price, to greater profit. The higher the prices the sooner the excess-profit point is arrived at, and as production con- tinues the more rapidly the successive stages of surtax are arrived at. The higher the tax the lower the net profit becomes, and the inducement is not only not to increase production but rather to curtail it in order to avoid get- ting into the class of maximum tax. To illustrate this we might take a single basic commodity — for example, coal — and any rule that would apply to coal would apply equally to iron ore and lumber, and other basic commodities and their products. Taking the case of coal, suppose a given mine produces a million tons of coal per year in normal or peace times, and earned an average of 10 cents per ton net profit. Its net profit per million tons of coal would then be $100,000. Suppose in war times, under regulation, and with excess-profit tax operating, this mine produced its million tons, was allowed 20 per cent net operating profit, and by so doing arrived at 30 per cent excess-profit tax rate. It wo'ald then earn $200,000 net operating profit, pay $60,000 excess-pi-ofit tax, and keep $140,000 as divisible profit. Suppose the production of this mine were doubled and the resulting profit (capital investment remaining the same) caused it to go to an 80 per cent excess-profit tax rate. It would earn on the second million tons (the stimu- lated production) a gross profit of $200,000, on which its excess-profit tax would be $160,000, and the divisible profit (the only real profit) remaining would be but $40,000. Clearly, in the absence of any other consideration, the mine would earn $40,000, leaving the second million tons of coal in the ground until the return of peace, wlien it could be mined at the peace-time rate of profit (10 cents) with the resulting divisible profit of $100,000. GOVERNMENT CONTROL OVER PRICES. 391 I dissent wholly and entirely from the tlieory that excess-profit taxes justify unreasonable price structures and purge unreasonable profits. Not a penny of excess-profit tax has been or will be paid to the Government that has not first been collected with many other pennies from the people of the country, either as consumers or as taxpajers. Since the Government itself is by far the largest of all buyers at fixed prices, it seems to be absurd to take an excess dollar out of the Treasury in. order to get 34 cents of it back by way of excess-profit taxes. The net result of such a transaction is merely creating the necessity of raising an otherwise umiecessary 66 cents by some other means of taxation or by bond sale. In the main, it is not industry which ultimately pays excess-profit taxes, but the consumer, and only a small part of the excess which the consixmer pays reaches the Treasviry in the form of taxes. The whole excess-profit tax theory is an attempt to lift oneself by his boot- straps, and there is lost from 20 to SO per cent of the energy employed in the process. A referendum taken hj the National Chamber of Commerce was practically unanimous in favor of taking no excess profit during the war. Taking this as a representative judgment of the business world, it would seem that the per- plexing problem of dealing with excess profits would be solved by having no excess profits with which to deal. To talie the referendum of the National Chamber of Commerce at its face value and apply it would probably draw forth some hoarse cries. As a group, men are patriotic ; as individuals, they will pay as small a tax as can be calcu- lated and will secure as high prices and as great profits as can be extracted. High excess-profit taxes themselves have a bad effect on business men. They nourish a feeling that the Government is wasteful, and, as a result, tax evasions do not carry any particular feeling of guilt. V^^hen tax evasion takes the form of padded and increased costs, of lavish expenditures made for the sole purpose of reducing the rate of profit, the result must be detrimental to the maximum production at maximum efficiency. The business organization is softened by bad practice and by unbusinesslike methods, and while it holds to such un- healthy practices it can not maintain the higliest degree of efficiency. The purchasing power of our money and credit as well as that of our allies would be restored by a lowered price structure i tax dollars would each buy more nearly a hundred cents' worth of goods; the Government would need to collect fewer dollars in taxes and sell fewer bonds; and the public, relieved of profiteering (I do not use the word "profiteering" invidiously, at this time), would be able to produce the required tax money and bond money since their buying power, which is not absorbed by the mere expense of keeping alive, would )>e left free in large proportion to be dedicated to the service of the Nation. If the infiated. price structure were brought back to an approximation of normal, and if 100-cent dollars were substituted for the 40-cent dollars we are now using, many of the problems which perplex and much of the rising discontent would be disposed of. The single-price fixed so high as to make profitable the high-cost marginal producer has, as I have said, a vicious effect on business itself. Tlie reflex shows itself in tax evasions and, worst of all, in inviting and encouraging wasteful and extravagant business operations. When a business reaches the point that its excess-profit tax will operate to take away a considerable part of its earnings, it inevitably is tempted (and in many cases the temptation has proven in-esistible) to spend extraordinary sums in unnecessary expenditures. These take the form of advertising looking to the building up of present or future good will, or repairs and betterments not presently needed or made with an eye to the future and in anticipation of a return to peace-time basis. Further, expenditures are lavishly made by big con- 392 HISTORY OF PRICES DURING THE WAR. oerus out of rapidly accunmlating surpluses ^vhi^,'h are in the nature of strategic advances upon other weaker competitors and which, upon a I'eturn to peace- time basis, will tend to result in a permanent elimination of weaker competitors and the rapid extension of monopolistic conditions. These expenditures are made on the theory that out of every dollar so spent, the Government itself contributes anywhere from 20 to 80 cents of the cost. The whole purpose of price fixing and of tax legislation is not to raise revenue but to win the war. That is the single aim of all these activities. Any device which interferes with that aim is conceived in error. Having gotten this rather long preamble behind us, let us now consider what may be done with respect to iron and steel. In the first place, the Steel Corporation, through its control of a large part of the railroad transportation at the head of the Lakes, w^as able to levy a toll on the bulk of the iron ore produced in the country. Just as in the case of anthra- cite coal, in which a plan was worked out where the profit in anthracite coal lay in many cases not in mining it but in its transportation to maxivct, so in the case of iron ore, the mining of the ore itself was often relatively unprofitable while the transportation of the ore by rail was made to yield enormous profit. The anthracite railroads owned a great many of the anthracite mines ; they often mined practically at a loss, transporting the coal at an enormous profit, and competitors were compelled to mine at the lowest possible margin and all the natural profits were absorbed by the transportation companies as freight. The railroads of the country, aside from the Government itself, are the greatest consumers of iron and steel products. The Railroad Administration now has in its control the ore-carrying roads of the Northwest. If the iron ore were carried to market at a price which would represent just about the cost of the service, the resulting total railroad revenue for the w^hole country would show a very slight decrease, but If this loss in freight revenue and consequent saving in cost of ore at furnace were carried on through the iron and steel price structure, the railroads would undoubtedly get back several times over, by reason of lowered cost of materials, such shrinkage in freight earnings. This would apply also, perhaps, to a readjustment of freight rates with respect to coke, and possibly for coal also, at least in certain cases, for example, such rates as apply to Bethlehem on ore, coal, and coke. Bethlehem might be niade a fairly low-cost production, instead of which. Bethlehem now puts the entire steel industry out of harmony and is the chief disturbing factor in our problem. Rather than permit Bethlehem to upset the whole steel industry, it jjiight well be operated on Government account and so be removed from the equation. As we see the enormous spreads in the various production costs of pig iron, find as v.'e see these spreads grov/ as the fabrication of the material is carried forward, it seems apparent that if some device could be found whereby opera- tions could be started at one or more points from a level, the problem would be simplified. The main objection to a variety ^f buying prices and a composite selling price is that it penalizes efliciency and bonuses inefficiency. But the excess profit tax does this very thing, frankly and unashamedly. That is what the excess profit tax, taken together with high prices, is — penalty for efficiency and by contrast a subsidy for inefficiency. Suppose we were seeking for a real stabilization ; let us take iron and steel as our example. If at vital points equitable levels could be arrived at, we could have a fair basis from w'hich, particularly in an effort to stimulate pro- (luction, to keep prices relatively normal, to directly reward efficiency and by contrast to penalize inefficiency. GOVERISTMEXT COK-TROL OVER PRICES. 393 Suppose in iron and steel all the iron ore were taken over by tlie Govern- ment at varying prices to be determined by adding to a reasonable cost of production a just and reasonable prbfit. The iron ore from the various ore- producing fields purcliased at varying prices would be pooled and result in a composite price for each consuming field, so that, so far as the ore price is concerned, all furnaces would start on an equality. There would remain the 'diifferential of transportation, and absolute equality could be secured by de- livering ore to the various furnaces at a uniform price which would include transportation. In other Avords, pool not only the ore price but the trans- portation charge. Now Ave would have all furnaces in a given field starting on an equality as to their ore. Similarly let the Government buy all the coke at varying prices and dis- tribute it at a composite price which would absorb freight differentials. "Now we come to the calculation of the profit per ton. There should be an agreed upon per-ton profit, but this should be used only as a basis, because, as we shall see, equity vv^ould require certain differentials not difficult to calculate. First : Equity as between producers requires consideration of the amount of the investment and of its character. For instance, it is often found that a low-furnace cost has only been obtained by the expense of a high investment per ton of output, wliile frequently a high-furnace cost may be coupled with a low investment. It is obvious that the application of a uniform unit profit without reasonable consideration and scrutiny of investment will be inequitable. This calculation of unit profit based on investment would also run with respect to the ore mines and coke ovens, and the same theory might well be carried on through the more advanced stages of the fabrication. Data suf- ficient for giving consideration to varying per-ton investments are not so difficult to arrive at as would appear. Book costs of investment less depre- ciation is presumably shown in more or less satisfactory form on the books of practically every company. Most of them also have the revaluation as of 1913 permitted under the internal revenue law. These give bases of comparison between companies and reveal the cases of high investment per unit of outpxit, so that such cases may be easily isolated and intensively studied. Before going into a discussion of the mechanism of a pooling device, I wish to suggest some devices for encouraging volume and economy of pro- duction. These may be set down as follows : After determining a tentative cost price by considering monthly production costs and adding a unit profit as modified by the legitimate unit investment and then adding a small charge to take care of the operation of the pool : First. Make a further profit addition based upon a showing of decreased operating costs. For example, if cost is reduced a dollar per unit, allow 50 cents to go to additional profit and 50 cents to lowering price. Second. Similarly penalize unwarranted increases in cost by deducting them from allowed profit. The deduction could be continued to a point of ex- tinguishing the profit if the production can be dispensed with or can not be secured by transfer of labor, material, and cars to lower-cost operations. Third. Allow an increase in profit as a return for supernoi'mal production ; allowance to be generous but apply only to the tonnage that is above normal production. Fourth. Allow a substantial wage bonus to labor in return for continuous working. The fourth point would best be elaborated a bit. Suppose a laborer re- ceived 50 cents an hour ; after he had Avorked 15 consecutive working days, 394 HISTORY OF PRICES DURING THE WAR. sot his wages at 55 cents per hour for so long thereafter as he continues to work without interruption. Voluntary loss of time would return liim to the 50-cent wage, where he would remain until he had again worked 15 consecutive days. Holiday work might well be counted as double time (as two days for each holiday) in earning a place in the bonus class. In case of involuntary idleness, forced by lack of material, car shortage, accident, or any other cause beyond the workman's control, such idle days should not be held to demote him from the bonus class. Now for the pooling plan : Tlie pool organization would make use of all existing agencies of production and distribution. There need be no resulting dislocation of trade. Transactions would be exactly as now ; orders taking the same course ex- cept when, as now, through priority orders or for ton-mile or other trans- portation or economic reasons, the pool manager might otherwise direct. Tlie ore or the coke or the pig iron would be billed out in the name of the Govern- ment pool, to the immediate purchaser at the pool price, and at the same mo- ment the mine or oven or furnace would bill the Government pool for the same quantity and quality at the price fixed for that particular mine, oven, or furnace. The pool would settle monthly with each mine, oven, or furnace for all material shipped. There would be added to the price paid the pro- ducer such small margin as would care for the expenses and hazard of the pool. A surprisingly small initial working capital would be required and it would be in the nature of a revolving fund, augmented by any net profits which might accrue to the pool as time passed. Tlie pool (the Government) would have ownership of the material only for the Instant of time when the title passed from the producer through the pool to the immediate purchaser, but that instant of ownership would be absolute ownership. I am saying that the single-price theory has failed in practice. We have seen unduly high prices raised and raised again on the representation of fear of future increase in costs, and, as industries are interrelated and buy and sell fTom and to each other, and as we raise one because it anticipates an increase in cost, and i-aise others on tlie same anticipation, these raises, reacting, tend to justify the darkest feai"S. In other words, business concerns are busy skinning each other and the public and the Government is paying for the hide that is removed. With respect to iron and steel, all these considerations seem to argue that a number of changes in policy might well be adopted at this time. First. Reduce the rail freight rate on iron ore to a figure which would repre- sent the cost of the service and a fair average transportation profit ; also ct)n- trol lake freight rates. Second. Have the Government buy all iron ore and distribute it to econom- ically efficient furnaces at a composite price which shall likewise absorb trans- portation charges. Third. Treat coke the same as iron ore by pooling it and distributing it at a uniform price, absorbing transportation charges. Fourth. Buy all pig iron through the Government pool and distribute it at a uniform price, absorbing freight differentials. Fifth. From this point seek to establish no other composite price through pooling except in such cases as where the Government buys practically the total output, as in the case of rails, ship material, munitions, etc. In such cases apply the pooling system and distribute the surplus to the public at a composite price. Sixth. Secure stimulated production by generously increasing the profit on all tonnage produced above the norma«l production as shown by recent experience, and similarly reward efficiency and lowering of costs, as set forth above. GOVERNMEITT COKTEOL OVER PRICES. 395 Looking forward to the post-war contest for world markets, a present and determined effort to return to normal would seem to be prudent. 5. Mr. W. F. Gephart, Federal food administrator in Missouri, wrote the following memorandum on the " Governmental Policy of Fixing One versus Several Prices on a Single Commodity : " It is assumed in the statement which follows : First, that there are several competitors producing tlie commodity with different costs of production ; second, that in the system of taxation there is an excess profits tax or income tax of a character Avhich will enable the Government, if it so desires, to reduce the larger profits of those producers who are able to produce well under the single-fixed price. The following reasons may be urged in favor of a single- fixed price : 1. It is in harmony with the present organization of industry, one of whose chief characteristics is competition. This is true because the primary justi- fications of the competitive system is that a premium is placed on most efficient production. The inefiicient man is, in time, compelled because 'of his high costs to go out of business in favor of the more eflicient, and the public securo>i the benefit of loA^'-cost production. Yet, under a single-price system, the price must necessarily be fixed at the particular time, at or near the cost of produc- tion of that producer who has tlie highest costs, because his productioa is necessary in order to secure the desired supply or quantity. At the same time, the more efficient producers are encouraged by their liberal margins of profit to increase their output. There is thus an opportunity for the Govern- ment to do one of two things, or to do, in part, both of tv^'o things : First, the Government may take all or a large part of whatever is excess pi^ofit; or it may, when the production capacity of the uiore efficient plants has increased, readjust its one fixed price on a lower level, thus securing for society the advantage of a lower price and maintaining all the beneficial efforts of a normal competitive condition. It may be urged tliat the more efficient producers under the above condi- tions Villi not increase their output and thus make possible the elimination of the less efficient, but such a result does not occur in actual business. It may also be urged that the less eflicient should not be put out of business, but this is what actually occurs in normal times, and in addition, by tlie intervention of the Government in stabilizing the price on the basis of this less efficient producer, the Government protects him for a period, thus giving him every opportunity to improve his business and reduce costs. In addition, there Is under the present industrial organization and legal system no vested right of any producer to remain in business, especially if he can not render society a service in fair costs of production. 2. The single-price system is much less complex and more easily administered. It is a very difficult and often an impossible task to determine production costs for the many different producers Of a commodity. No two costs v/ould be the same, and in an industry where there are many different producers, it would take many months to arrive at approximate costs. Then again changes in costs, which at the present time are marked, would require frequent and ciiui- plete readjustment of the price schedule-s for the different producers. Again, the rjaultiple or several-price system wonld result in a static condition in the industry. Every one would continue as a producer, whetlier or not his costs would entitle him to remain. 3. A multiple or sereral-price policy might have inequitable re-sults on war tax- ation. This is true because these various prices would be fixed so that no 396 HISTORY OF PRICES DURING THE WAR. excess margin of profit would be left to the rroducers. That is to say, the Public Treasiiry would receive little or no tax from this particular source to be expended in whatever form of public expenditure it desired ; the consumers of this par- ticular commodity, under a varying-price system might escape their just share of taxes. Under a single-price system the higher prices which they may pay for the product goes in larger part into the Public Treasury in the form of taxes. 4. Under a several-price system large opportunity is given for comparisons which is likely vo embarrass the Government. One producer thinks another is allowed an mifair margin. Another complains that his costs are increasing and desires a larger margin. No one of tlie producers has any great Inducement to I'educe costs under the static conditions of several prices. 5. Whether or not the numerous prices would be constitutional is primarily a fjuestion for the courts, but in any event there is in such a policy a large elenient of inequality. It is taking as a permanent measuring unit for the in- dustry the least efficient and penalizing the more efficient. However important it is in these war times to stabilize certain prices for certain essential products this should not be undertaken at the expense of stabilizing industrial organiza- tion. No policy of price fixing can be successful except as it is established for short periods. Adjustments must be made and therefore a multiple-price system makes such adjustments much more difficult, even assuming that the the original system be successfullj' established. 6. On the basis of my experience as a Food Administrator in fixing food prices through the interpretation of fair prices, it seems fairly clear that any system of fixed prices must be simple and most easily administered if it is to have a large measure of success ; second, that spreads in prices or different prices always tend in* their actual workings to encourage the perpetuation of high prices. In our work we quote only one price on each commodity of the same grade. 6. Mr. H. M. Clianning, chief of the legal section of the War In- dustries Board, wrote the following memorandnm on "General Price Fixation on Cost Basis:" We have been asked for an expression of opinion on the following problem. In determining a general price for certain staple commodities such, for example, as copper or steel, it is apt to appear that there is quite a wide range between the costs of the principal producers. It may, nevertheless, be essential to maintain the production of the higher-cost concerns, and also at the same time may be thought desirable to avoid paying inordinately large profits to the low- cost members of the industry. It has been suggested, and the idea strongly attracts many people, that prices for certain products be determined upon the basis of individual cost, allowing substantially the same profits to all whose production is requisite. BY AGREEMENT. The price-fixing committee operates either by means of agreement or in an advisory capacity to the purchasing departments. The committee can, witli considerable freedom, enter into agreement with producers to adopt any basis of price fixation which may be acquiesced in by substantially all of them. It is not perfectly clear that the low-cost producer who has refused to agree to sell his product at cost plus a fixed profit could not make a fairly plausible claim that an arrangement of this character, entered into between the other pro- ducers and the price-fixing committee (acting in concert with intending pur- chasers), would constitute an unreasonable restraint of trade. We incline, GOVERNMENT CONTEOL OVER PRICES. 897 however, to the opinion that siich an arrangement would be upheld by the courts as a reasonable restraint. Failing agreement the Government would, of necessity, resort to its affirma- tive powers. These powers would be (a) to requisition existing goods; (6) to commandeer future production ; (c) to take over and operate the plants them- selves. (a) kequisition of existing goods. We have in a previous memorandum to you expressed the opinion that the measure of just compensation for existing property requisitioned would be the fair market value of such property, subject to certain qualifications which we believe would exist in the absence of a fair market. It would follow that the individual cost plus a profit probably would not be the measure adopted by the courts to determine compensation for such propei'ty. (E) COMPrLSORY ORDERS FOR Ft'TfRE FRODtTCTION, With relation to compulsory orders for production of ordinary staple com- modities, such as copper or standard steel plates, as we construe the statutes, there is contemplated a taking of the finished commodity rather than an order for involtmtai-y performance of service (national defense act of June 3, 1D16, sec. 120 ; naval appropriation act of July 1, 1918, p. 18. The language used in the statutes, and tlie clearer constitutionality whicli would result from the first construction, tend to bring us to our conclusions, although there might be commandeer orders issued which would approach very closely orders for the performance of services. Under our views compulsory orders require the delivery of a finished product, and the measure of just compensation would be substantially the same as for existing property requisitioned — the fair value of the product. We should qualify this statement by the opinion, earlier expressed to your committee, that the highest cost producer could not be compelled to work at an absolute loss. The burden would probably rest upon him to establish that what would be fair value and just compensation for the rest of the industry would not be just compensation to him. In time of shortage it may be neces- sary to compel many such producers to operate and to pay them in excess of the actual value of their product. Of course, some differentials based on local conditions might properly be made. Market values in one part of the country often vary from those in other parts of the country, and the same considerations which affect market values might properly be taken into account in the determination of just com- pensation or in price fixation. Although a good deal of argument can be made on the other side of the question, we are unable to. advise the price-fixing committee that under com- pulsory orders, dissatisfied producers would not be able ultimately to recover through the courts compensation based upon fair market value or its equiva- lent. (C) TAKING 0^■ER PLANTS. Under certain conditions the Government has the power to take over plants. Where the Government does take over and operate a plant the compensation is not based at all either upon market value of the product or upon the cost of production, but is established as just compensation for use of the plant, which, in turn, is arrived at through the medium of market value of plant appurte- nances. '^ 398 HISTOEY OF PRICES DURHsTG THE WAE. co:scrA-.sioNs. In conclusion we would say that although in some industries it mi^ht be possible to obtain the required volume of production upon a cost basis without creating litigation, it appears to us, from a legal standpoint, highly desirable to avoid the difliculties which are apt to attend the cost basis of price deter- mination, and to adhere, so fur as practicable, to the flat-price basis. 7. Mr. Robert S. Brookings, cliairman of the price-fixing com- mittee, wrote tiie following memorandum on the question of fixing " One Price or Several Prices :" Referring to the discussion of one price or several prices and to avoid losing ourselves in a maze of abstract argument, suppose we simply investi- gate the steel situation to-day with the view of ascertaining whether or not any change in price or method is necessary or desirable. First. Have we any evidence under the present one-price system of any failure in efficiency ? I have never heard of any. On the contrary, the steel producers seem to have shown remarkable efficiency, and we hear only of shortage in coking cotri, transportation, and blast furnace capacity, which the steel companies seem to be making every possible effort to improve. Second. Are the prices of steel, as fixed at present, abnormally liigh, as reflected in the profits of the lowest-cost producer? Careful computation .would indicate that, at present market prices, the Steel Corporation will receive this year gross profits of about $420,000,000, of which the new excess profits and income taxes will absorb ,$247,.3(X),000, leaving $172,500,000 or about nine per cent, on their investment of $1,887, 000,000. Of this sum, the Steel Corporation say they should set aside $36,000,000, or 2 per cent on their investment to take care of depreciation and replacement which the Federal Government will not permit them to deduct in figuring their excess profits taxes. While the Steel Corporation's costs are lower than those of the six or seven other companies which with it produce over 80 per cent of the steel, a careful comparison of the net results of their year's business indicates that they all shov/ as large a return on their investment as the Steel Cor- poration, which is, of course,, accounted for by the ratio of their production to capital. It is also shown that the so-called number three or small companies special- ize largely in steel refinements and that their " return on investment, as reported to us last year, was larger than the Steel Corporation';^. We, therefore, find all steel companies practically on the same footing. It is then simply a question of whether or not the net returns on investment of 8 or 10 per cent in the steel industry are unreasonable as compared with other investment securities, taking into consideration the risks of manu- facturing. Third. Conceding as an abstract argument, however, that prices should not be made with any regard to the securing of excess profits taxes, and that the economic national health is best preserved by a low range of prices, inasmuch as the Government has formulated its revenue program for this year based upon large receipts from excess profits, would it be wise at the present time to propose any system of price fixing which would wipe out all excess profits? Or, in other words, even if the steel manufactui-ers were willing to practi- cally -reduce the price of steel so as to wipe out the excess profits — which I am sure they are not — should w^e encourage such a proposition? GOVEEaSTMENT CONTROL OVER PRICES. 399 Referring to the detailed cost slieets presented )3y tlie Federal Trade Com- mission, I would bi'iefly call attention to the following points : They have not yet finished their report on cost of ore-, which they exjiect to have ready in a day or two. Their costs of coke, both beehive and by-product, for the month of June, as compared with the month of April (which we used at our May meeting) show practically no change. Referring to the pig-iron reports for the same months, the costs would also appear to be about the same. A study of the figures submitted to you will show that, as a matter of fact, the steel companies producing four-fifths of the entire steel product produce their own coke and pig iron, and have conse- quently little or no interest in the prices we may fix on raw material or semi- finished products. This reduces the interest in these items practically to the merchant pig- iron companies. You will notice from the report of these companies that they produce only about 200,000 tons of basic pig per month (and practically no Bessemer), which basic pig must necessarily go to the so-called No. 3 or smaller companies, which produce such refinements as to make the ouestion of a dollar or two per ton on pig a not very vital matter. The balance of the merchants' companies' production (say 300,000 tons per month) is foundry pig, which finds its market in products over which we have exercised little or no control in prices. It would seem therefore that our entire steel price-fixing problem is reduced to a question of whether or not there are any differentials in cost which the present range of prices makes burdensome to any important producers ; and I have failed to find any evidence of this, except in the case of the Bethlehem Co.; and we have no means of knowing whether, in tiie last analysis, it is burdensome to them until the Federal Trade Commission makes a special report on their costs and their Government contracts for shipbuilding and ordnance, with a view to ascertaining the facts. Notwithstanding Bethlehem's high costs, they seem to have made good profits last year, and I am told they are doing very well at the present time. P. S.— It is quite probable that a few small merchant producers of basic pig and a larger proportion of producers of foundry pig will show that August costs will leave them no profit at present prices. So that we may have to consider an advance in pig iron, which would not affect- steel prices, or else require the big integrated companies to absorb this production at a price which will maintain production. (S) PRICES FIXED ABOVE THE "BULK LINE" OF PRODUCTION. The theoretical arguments urged before the price-fixing co2nmittee in favor of allowing each producer a set margin of profit above his individual cost of production soon gave way to the practical diffi- culties involved. The committee came to believe that any theory of determining fixed prices, akin to the cost-plus rule, made for en- couragement to the less efficient high-cost producers. There seemed no disposition to countenance a practice that would give the high- cost producer precisely the same war-time guarantee that accrued to the low-cost producer, since there was not at hand the enormous administrative machinery necessary to enforce a variable price. The 400 HISTOKY OF PRICES DURING THE WAR. price-fixing committee an "" J .... ■ z^^ ;^ ?'" ™, """'■*°'""""* *.=. K 1 Graphic chart showing cost of production of anthracite coal in Pennsylvania anthra- cite region during the period— December, 1917, to May, 1918 ; reported cost, adjusted cost, tons reported by 83 operators, 33,039,655 ; tons, montnlv average ' renorted 5,506,609. ^ ^ V teu, 404 HISTORY OF PRICES DURING THE WAR. jj? COSTS FOUND BY THE FEDERAL TRADE COMMISSION FOR SEPTEMBER, 1918. BEEHIVE COKE. [Government price $6 per net ton.] Production cost per gro.ss ton. Companies producing up to 60 per cent of total $2. 93-$4. 44 Companies producing over 00 to 70 per cent of total 4.44- 4.99 Companies producing over 70 to 80 per cent of total 4.99- 5.44 Companies producing over 80 to 90 per cent of total 5.44- 6.47 Companies producing over 90 to 100 per cent of total 6. 47-11. 45 PIG IRON (basic). [Government price $32 per ton.] Companies producing up to 60 per cent of total $18. 14-$22. 06 Companies producing over 60 to 70 per cent of total 22. 06- 24. 32 Companies producing over 70 to 80 per cent of total 24. 32- 25. 41 Companies producing over 80 to 90 per cent of total 25.41- 27.49 Companies producing over 90 to 100 per cent of total 27. 49- 45. 72 INGOTS (OPEN hearth). [Government price $73 per ton.] Companies producing up to 60 per cent of total $30. 60-$33. 42 Companies producing over 60 to 70 per cent of total _ 33. 42- 35. IG Companies producing ever 70 to 80 per cent of total 35. 16- 39. 77 Companies producing over 80 to 90 per cent of total 39. 77- 41. 86 Companies producing over 90 to 100 per cent of total 41. 86- -66. 34 STRUCTURAL SHAPES. [Government price $3 per 100 pounds.] Companies producing up to 60 per cent of total $45. 54- Companies producing over 60 to 70 per cent of total 45. 54-$49. 37 Companies producing over 70 to 80 per cent of total 49. 37- 52. 07 Companies producing over 80 to 90 per cent of total 52, 07- 57. 69 Companies producing over 90 to 100 per cent of total 57. 69- 76. 79 PLATES SHEARED. [Government price $3.25 per 100 pounds.] Companies producing up to 60 per cent of total $46. 30-$56. 80 Companies producing over 60 to 70 per cent of total 56. 80- 59. 56 Companies producing over 70 to 80 per cent of total 59. 56-; Companies producing over 80 to 90 per cent of total 59.56-66.28 Companies producing over 90 to 100 per cent of total 66. 28- 82. 25 -MERCHANT BAR. [Government price $3.50 per 100 pounds.] Companies producing up to 60 per cent of total ." $44. 82-$48. 45 Companies producing over 60 to 70 per cent of total 48. 45- 48. 74 Companies producing over 70 to 80 per cent of total 48. 74- 53. 38 Companies producing over 80 to 90 per cent of total 53. 38- 68. 98 Companies producing over 90 to 100 per cent of total 68. 98- 87. 15 One of the most interesting studies of the rehition of bulk line to the average costs and price fixed is afforded by the accompanying chart, representing the countiy-wide costs of producing anthracite and bituminous coal. The engineering committee of the Fuel Ad- ministration, after adjusting the reported costs, established a bulk line- above which the Fuel Administrator personally allowed a per- cent of profit and fixed the price. The latter two charts pertain- ing to coal prices fixed are designed, of course, to show results for the country as a whole and are not the specific ones used by the Fuel GOVERlsrMEJSrT CONTROL OVER PRICES. 405 Administration in setting prices. The price differentials for each district were actually determined by separate district charts, made however, in precisely the same manner as these summary/ charts. ' KEY TO COST CHART OF BITUMINOUS COAL. State and district. Alabama :- ^ No. 1 •-i No.2 nINo.3 ...'.'.' ^ '-I No. 4 ^Arkansas-Oklahoma Colorado: Domestic , Trinidad Lignite , Illinois: nNo.1 VNos. 2and5 \ ^ Nos. 3, 4, and 6 '*' Indiana Iowa: ■■! Appanoose , ^ ^ Des Moines Kansas, Cherokee, and Crawford . . Kentucky: T^No. 1 , western >^No. 2 (Tennessee and Virginia) . ^No. 3 (east Kentucky and east Tennessee) Missouri: "fNo.l ^ "^No.2 :.:; Montana, Utah, and Wyoming North Dakota: ' -North district -iSouth district , ■*New Mexico, Raton Oklahoma: . (See Arkansas.) -^McAllister Ohio: No. 1. (See West Virginia No, \ 9.) 7N0S. 2and7 ■^No. 3 ;; "^'Nos. 4 and 6 No. 5 ^No.8 ".".■ Pennsylvania: •No. 1, central -> No. 2, southwest Tennessee. (See Kentucky.) " ^ Bituminous No. 1 ■'^Bituminous No. 2 ^ lyignite Utah. (See Montana.) Virginia: , (See Kentucky.) "~- Upper Clinch.'... Average tomiage, August- Septem- ber, 1917. ■pper Clinch.' West Virginia: v^No. 1, Pocahontas * No. 2, Tug River -•i Nos. 3 and 4, Thacker and V Kenova . . . r^No. 5, Logan ..'. ' ^^No. 6, New River ■■" "^•No. 7, Kanawha ^ No. 9, Pomerov ^>.No.lO. •■ ^No. 11 , Preston V No. 11 , upper Potomac. ^No. 12, Fairmont ' ■" No.l3includmg Pennsylvania" _^ ( No. 2). Wyoming. (See Montana.) 380, 000 185,000 790, 000 90, 000 272, 500 462, 000 320, 000 145,000 310, 000 417, 500 5, 525, 000 1, 770, 000 140, 000 410, 000 475,000 658, 000 1,135,000 900, 000 240, 000 130; 000 950, 000 17,000 40, 000 261,000 70,000 165,000 591, 000 296, 000 360, 000 1, 115, 000 4, 310, 000 7, 225, 000 12,000 73, 000 SO, 000 Per cent total. 27, 500 1, 625, 000 230, 000 285, 000 842; 500 1, 092, 000 890, 000 94, 000 365,000 52, 500 595, 000 947, 500 1.02 .50 2.12 .24 .73 1.24 .86 .39 .83 1.12 14.40 4.74 .37 1.10 1.27 1.76 3.04 2.41 .35 2.54 .04 .11 .70 .44 1.59 .79 .96 2.99 11.87 19.35 .03 .19 .21 4.35 .62 .76 2.26 2.93 2.38 .25 .98 .14 1.59 2.54 Costs. Re- ported. SI. 47 2.49 1.87 1.86 2.50 2. 04| 1.88 1.84i 2. 28} 1.86 1. 48J 1.58" 2.42 2.14 2.16 1.43 1.54 2.02 2.03 2.47 1.89 2.38 1.47 1.5.Si 3. 05i 2.38 1.61 2.11 1.61 1.50 1.95-i 1.57', 3.38 2.62 .83 2. 15] 1.40 1.83 1.59] 1.65i 1.74] 1.58] 2.15 1.69 1.92 l.S4i 1.56' Ad- justed. $1.48 2.47 1.86 1.96 2. 50] 1.96] 1.80 1.78, 2.26] 1.83 1.60]- 1.61" 2.44 2.16 2.21 1.46 1.60 1.91 2.09 2.47 1.89 2.17 1.55 1.73 3.15i 2.30 1.65 2.02 1.65 1.51- 1.98 1.59 Bulk line. Price fixed. SI. 68 2.75 2.14 2.16 2.90 2.20 1.84 1.84 2.40 2.00 1.66 1.80 S2.10 3.10 2.50 2.50 3.30 2.55 2.19 2.35 2.75 2.40 2.00 2.00 Cumulative, per cent. Aver- age cost. 2. 60 3. 00 2. 40 2. 80 2. 40 2 3.35 2.71 1.03 2. 12] 1.31] 1.78 1.62] 1.65 1.75-i 1.60 1.92 1.72-i 1.90 1.88 1. 591. 1.65 1.80 2.25 2.40 2.80 2.20 2.25 1.70 1.78 3.54 2.67 1.80 2.35 1.95 1.65 2.22 1.70 3.83 3.00 1.25 2.00 2.20 2.65 2.75 3.20 2.60 2.65 2.10 2.35 3.95 3.10 2.20 2.60 2.35 2.00 2.60 2.00 2.13 1.60 2.01 1.90 1.80 2.00 1.90 2.05 2.00 2.15 2.02 1.80 7.34 98.51 72.18 79.35 99.59 80.59 68.94 68.08 97.20 70.06 21.74 56.89 98.01 95.06 96.37 6.32 49. 77 78.86 93.89 98.86 76.31 95.10 24.84 64.14 99.97 97.64 59.24 93.25 60.20 24.73 S2.46 44.19 Bulk. Price, 24.73 98.51 74.09 74.47 99.59 78. 25 60.31 59.45 97.20 69.44 23.71 55.21 48.82 98.51 74.23 74.47 99.59 75.71 54.59 64.43 96.10 69.44 23.71 47.80 97. 57 97. 57 95. 10 97. 20 96. 37 95. 27 6.32 47.93 92.57 94. 00 98.86 77.01 95.10 24.84 44.89 99.97 98.01 59.06 93.36 64.41 9.31 90.12 44.19 4. .35 100.00 3. 50 99. 78 1.65' .21 2.50 2.00 2.40 2.30 2.15 2.35 2.25 2.45 2.30 2.40 2.40 2.15 93.96 4.56 67.69 57.65 62.46 67.07 52.15 79.11 63.44 76. 45 73.77 46.73 100. 00 99.78 .21 71.97 4.56 70.06 63.45 57.47 68.32 62.69 71.90 65.39 74.23 71.65 50.47 6.32 57.63 93.36 94.00 98.86 78.25 90.95 48.93 64.04 99.97 98.01 59.22 90.91 65.39 9.31 90.12 43.06 100. 00 99.78 .21 72.11 4.56 70.06 62.36 53.73 68.32 61.60 72.04 63.34 71.79 71.65 51.47 406 HISTORY OF PEICES DURING THE WAR. KEY TO COST CHART OF ANTHRACITE COAL. Costs. Ad- justed standard percent sizes. General. Company. Individual. Ton- nage. Re- ported. Ad- justed. Ter cout. Re- ported cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. 145 fi7'? S4. 961 5.26 4.52 4.96 4.36 4.30 4.76 5.998 4.64 3.37 4.88 4.21 2.92 4.59 3.72 2.77 3.47 3.6.5 3.80 4.77 3.95 5.77 4.77 5.24 6.04 6.69 4.97 4.32 5.18 3.96 4.02 5.24 4.34 3.83 4.87 3.37 5.25 3.05 2.53 3.14 3.25 3.42 2.77 3.34 3.98 4.01 2.81 3-39 3.57 3.21 2.65 4.19 3.49 4.11 3.09 2.84 3.77 3.56 4.64 4.05 4.23 5.20 5.15 5.42 4.69 3.19 5.05 3.65 4.64 5.06 3.91 5.07 5.22 3.17 4.00 3.41 2.87 3.80 S4. 783 5.45 4.51 4.14 4.06 4.46 5.28 5.77 4.49 3.78 5.40 4.22 3.27 4.05 3.32 3.04 3.64 3.77 3.88 4.82 4.12 5.39 4.69 5.03 5.69 6.30 4.66 3.77 4.47 3.89 4.04 4.92 4.18 3.83 4.04 3.27 5.23 2.80 2.64 3.18 3.42 3.70 2.92 3.24 3.90 4.18 2.87 3.71 3.51 3.44 2.98 4.23 3.67 4.45 2.98 3.05 3.79 3.67 4.56 4.49 4.35 4.71 5.23 4.85 4.48 3.28 5.67 4.00 4.44 4.86 3.94 4.93 "3." 53" 4.19 3.60 3.24 4.01 - 3.6 -f 3.4 0.44 .14 .01 .02 .03 .36 87.70 95.64 78. 16 87.72 74.87 69. 78 88. 87 98.48 80.24 62.00 60.65 77. 73 1.83 .58 .02 .07 .12 1.50 81.53 91.40 58.08 81.06 50.74 44.64 80 23 46 277 367 231 740 637 389 799 438 122 981 578 063 957 571 005 642 292 369 MO 850 955 226 932 193 622 192 537 209 783 876 572 420 778 160 037 059 178 950 519 865 712 808 648 284 404 884 142 147 067 547 359 848 590 069 445 971 071 473 764 386 95 93 1 59.36 5 - 6.92 -1- 4.5 -h 3.6 -(-11.1 - 0.5 -H3.2 -f- 6.8 +10.8 + 0.1 + 5.3 + l.Q -10.65 + 5.46 + 0.72 + 3.22 + 2.27 + 1.1 + 4.6 + 1.7 - 1..38 - 3.96 - 5.86 -1- 3.44 - 5.22 - 9.00 - 8.51 - 3.63 - 0.18 - 3.59 - 5.95 - 5.98 - 7.72 - 3.10 - 1.70 - 8.-37 - 2.76 - 1.94 - 1.13 -f 4.03 - 4.24 - 4.49 - 1.94 - 2.51 - 1.29 + 4.93 - 1.77 -f 2.5 + 3.23 - 1.98 -f 3.23 + 6.33 - 3.74 -t- 0.87 + 0.65 - 1.35 - 1.9 + 10.7 + 4.7 - 3.0 + 4.4 - 9.5 + 4.3 + 1.1 + 16.9 + 2.7 - 2.0 - 3.1 + 3.7 - 2.6 + 1.8 - 2.61 - 8.24 - 9.95 - 2.51 + 0.2 36 96 q 33.74 11<5 55 77 so 9 .01 .04 .04 .08 .09 .36 .13 .38 .40 .37 .44 .43 .84 .21 .81 .09 .64 .27 .27 1.12 .96 1.36 .62 1.14 . .55 .60 .81 1.11 1.02 .5-5 1.53 1.94 .93 1.26 .73 .69 :i .09 1.47 .56 .30 .59 .77 .33 .42 .31 .79 .94 .25 .58 .30 .03 .34 .23 .05 .15 .08 .29 .12 .12 98.64 80.49 29.62 85.64 67.66 12.13 79. 66 44.28 5.44 35.26 41.70 48.48 84.77 55.39 98.63 84. 86 94.40 98. 94 99.91 89.36 71.94 93.20 56.67 61.29 94.95 74.84 51.70 81.85 30.64 95.50 15.48 3.47 18.19 23.93 34.37 6.13 23.25 38.30 59.41 7.60 32.90 39.92 21.11 5.04 67.97 36.16 65.21 16.27 10-10 46.46 39.59 80- 45 63.75 68. 52 93. 76 91.76 96.64 82.27 20.18 90.23 41.26 99.50 79.52 43.79 98.73 66.50 22.25 59.31 24.12 11-81 32.78 42.79 49-84 90.48 61.98 98.15 85.30 94.36 99.37 100-00 84.62 43-75 79.37 50.46 58.52 91.97 63.23 46.40 57.38 21.73 96.23 5.27 1.94 17.86 27.58 40.14 7.98 19.98 31.53 64.54 6.74 41.86 30-21 28-55 9-54 68.07 38.28 76.96 8.77 12. 75 44.04 38.86 81.20 79.48 72.11 86.80 95.68 91.42 79.45 23.13 99.10 52.17 .04 .17 .18 .31 .36 1.51 .55 97.23 65.38 8.03 77.10 39.94 2.54 63.15 99 07 IS 56.39 14 18.76 ■'4 95.35 •>H 42.11 T'O 2 54 4S 33.62 1?6 0.50 .53 .49 .58 .57 54.07 6.85 43.96 50.67 57.30 29.66 14.65 39.86 49.53 56.65 13? 1?? 14.T 143 Wf* 3.51 .88 74., SO 27.71 84 21 61 36 89 W>6 1.06 .12 .85 .35 .35 1.48 1.26 1.79 .82 1.50 .73 .79 1.07 1.46 1.34 .73 2.01 2.55 1.22 1.67 .96 .91 .86 .64 .12 1.93 .73 .40 .78 1.02 .43 .56 .41 1.04 1.24 .33 .76 99.16 88.12 95.60 99.51 100.00 91.19 79.07 94.75 65.92 71.00 96.33 82.58 61.42 86.82 37.87 97.06 19.64 4.58 21.90 29.08 42.78 7.76 34.77 67.68 68.78 9.69 40.84 48.49 25.37 6.32 76.12 45.15 73.80 20.68 14.22 55.74 48,09 99.15 91.23 95. 59 99.65 100-00 90.34 50.79 86.85 57.47 66. .59 94 13 70.73 53.62 65.09 27.37 97.80 6.94 2.55 20.96 34.22 47.59 59.76 23.76 58.85 72.37 8.87 48.95 36.48 35-49 11.65 75. 92 45.14 84.69 10.63 15.89 51.12 45.90 31 ?.\? 88 87 371 315 450 "m 37fi IS? IPS •Jfi 3fi5 337 183 .505 fi3P 306 417 ?3P ?'S ?14 15Q 30 484 184 V) 195 255 108 IRC) 10? ?R0 310 83 IW 100 1.26 ,14 1.41 .97 .20 .64 .31 1.19 .48 .50 65.21 31.04 41.35 90.82 88.16 94.45 66.97 7.85 84.22 13. 58 62.21 10 56.22 112 48.60 77,261 72.78 16.014 91.32 51, 076 85.17 24,815 56.08 94, 535 3.73 38, 371 98.53 39, 667 26 91 81,560 73, 899 65,090 .20 .09 53.25 90.62 52. 05 .82 .36 22.08 85.85 26 41 28, 722 92.68 88.12 12,919 365, 099 1.11 .11 .08 .73 .09 19.30 59.32 32.98 11.77 48.99 32.41 64.65 35.50 20.71 54. 18 1.46 .15 .11 .96 23.36 68.66 40.95 15.18 39.37 72.52 43.44 26.08 37,175 27, 960 242,028 31,141 .39 21.26 28.08 GOVERS-MENT CONTROL OVER PRICES. 407 KEY TO COST CHART OF ANTHRACITE COAL— Continued. Costs. Ad- justed standard per cent sizes. General. Company. Individual. Ton- nage. Re- ported. Ad- justed. Per cent. Re- ported, cum. Ad- justed cum. Per cent. Re- ported cum. Ad- justed cum. Per cent 1 Re- ] ported ! cum. i Ad- justed cum. 163,227 33, 476 S3. 77 5.70 4.31 4.67 3.94 3.74 4.33 3.82 4.22 3.95 4.01 3.87 3.23 3.66 3.46 3.24 5.43 4.69 3.98 4.05 3.97 4.02 4.30 3.36 4.81 3.22 3.20 3.04 3.56 3.66 3.60 3.28 4.68 4.50 3.25 3.93 3.57 3.81 3.42 3.84 2.84 3.29 3.53 4.95 3.36 3.35 3.14 4.48 6.46 4.71 5.14 7.04 5.43 4.32 4.97 6.15 3.16 3.78 3.50 4.79 4.77 3.98 4.74 4.42 4.56 • 4.08 2.60 4.21 1 3.554 3.337 2.93 3.383 2.83 3.63 2.84 3.27 2.51 S3. 73 5.71 4.03 4.16 "i.bi" 4.39 4.18 4.37 4.60 4.29 3.66 3.03 3.50 3.06 3.43 4.93 4.26 3.83 4.22 4.11 4.27 4.22 3.22 5.27 3.02 3.11 2.76 3.37 3.31 3.22 3.11 4.51 3.92 3.27 3.61 3.59 3.52 3.22 3.71 2.79 3.17 3.135 4.202 3.335 3.526 3.44 4.45 6.01 4.71 5.54 6.11 6.37 "i'n" 5.17 'Toe'" 3.85 4.62 4.92 4.15 4.94 4.71 4.65 4.20 3.14 4.72 3.651 3.591 3.241 4.057 3.41 4.05 3.09 3,58 3.18 - 1.6 + 0.1 - 6.36 - 8.9 + 2.1 + 6.51 + 2.08 + 7.8 + 2.3 +14.81 + 5.75 - 6.0 - 4.81 - 6.11 -13.8 + 4.75 - 4.41 - 7.21 - 3.88 + 4.33 + 3.45 + 5.42 - 4.45 - 6.1 + 8.48 - 8.06 - 6.20 -11.44 - 5.81 - 9.43 -10.54 - 7.01 - 3.46 -12. 86 - 3.43 - 8.14 - 1.66 - 9.48 - 9.55 - 6.1 - 9.3 - 6.56 - 6.91 -11. 84 - 4.25 - .93 + 4.3 - 1.6 - 2.7 .49 .10 1.20 .25 46.21 97.82 70.98 80.74 42.35 99.49 66.27 62.63 2.05 .42 4.99 1.04 16.61 97. 19 ; 49. 63 66.42 18. 53 99.03 386,962 82,638 55, 156 33.07 39.57 335, 330 1.01 1.23 1.16 .52 .66 .55 .46 .33 .45 .08 .38 .27 .30 .63 .49 .57 .59 .48 .48 .22 .69 .34 .86 .56 .61 .20 .30 .28 .32 .16 .40 .74 .74 .44 .48 .94 .83 .54 .30 .50 .35 .91 .41 .13 .24 .25 .09 .47 45.29 73.41 51.89 68.18 56.05 59.96 52.64 22.13 42.15 34.89 22.61 97.38 79.96 58.83 63.62 57.72 61.88 75.35 29.08 85.66 21.80 20.62 13.95 39.01 42.76 40.86 25.70 82.19 78.15 22.67 64.80 40.66 50.73 34.81 52.18 11.04 26.53 37.61 87.26 29.58 28.60 17.26 77.53 99. 63 82.89 91.43 100.00 97.11 54.09 74.77 64.39 72.83 82.45 70.95 37.86 13.16 29.91 12.83 27.96 92.95 68.78 47.03 67.47 61.77 69.80 66.98 17.69 96.87 11.41 14.31 2.80 25.18 23. 74 17.89 13.97 80. 52 31.85 21. S9 35.90 35.42 31.30 18.33 40.62 3.74 15.93 14.85 65.76 24.62 30.56 29.46 77.37 99.63 86.06 98.73 99.72 97.34 1.34 1.63 1.52 .69 .87 .72 .61 .43 .59 .11 .49 .35 .39 .83 .64 .75 .78 .63 .63 .29 .91 .45 1.14 .73 .80 .26 .51 .36 .42 .21 .53 .97 .97 .58 .63 1.24 1.09 .71 .39 .66 .46 55.41 80.70 60.35 77.2fl 65.10 69.50 62.06 26.71 51.26 43.47 27.20 97.76 85:36 68.51 73.39 67.04 72.32 83,21 35.87 88.41 26.28 24.50 17.63 47.33 62.06 49.72 31.41 87.18 84.59 27.41 63.73 ■ 49.46 58. S3 43.36 62.05 12.98 32.50 46.60 89.71 36.53 35.23 62.46 82.80 72.25 80.23 88.86 78.83 44.58 16.43 36.08 16.20 34.71 94.48 76.85 54.45 75.49 69.94 77.63 74.85 22.06 98.09 14.12 17.94 3.69 31.05 29.16 22.32 17.49 87.21 60.18 27.58 43.97 43.33 37.91 22.90 48.22 4.93 19.74 18.65 73.52 30.32 36.94 407, 650 382, 336 172, 128 1 217, 662 181,620 153, 522 1 108, 589 j 147,428 i i 26,906 i 1 124, 125 1 88,528 ■" ! 97,634 i 1 208, 745 t 1 ■ " 161, 504 1 1 187,028 i i 195,007 i 1 157,978 [ 1 159,271 I 72,448 1 227,685 ! 113,817 ! j 284,953 1 1 184,286 200, 475 64,892 128,959 91,027 . -- 104,168 1 53,842 132, 154 243,729 244,470 145,581 1 158,148 t 312,131 1 , 274, 155 176,881 98,414 166,047 116,247 ! 300, 277 3.77 1.72 .55 1.00 1.05 .38 1.97 6.66 58.06 99.62 69.54 87.96 99.62 96.42 7.50 54 27 136, 586 44,074 99 62 79,355 69.63 96 99 83, 152 + 7.84 + 4.05 + 8.42 + 4.67 - 5.3 30,582 99 62 156,819 95 05 133,820 170,527 .52 88.24 85.82 2.14 83.74 68 68 65,989 118,130 - 4.32 + 2.87 + 10. 1 - 2.3 + 7.6 + 4.3 + 4.3 + 6.5 + 0.8 + 2.9 +10.6 +16.1 + 2.7 - 4.81 - 6.81 + 2.44 + 0.21 - 0.98 - 8.65 - 3.5 - 0.92 10,252 .31 .35 .14 .15 38 .18 .51 .09 .34 .25 .30 .84 1.07 .96 .98 1.14 .28 .42 .83 .35 46.77 36.51 85.34 85.01 59.21 83.31 77.00 79.15 64.99 3.72 67.27 38.45 27.60 13.09 31.62 8.74 41.14 9.16 24.76 1.53 60.96 49.22 82.97 92.37 62.38 93.13 86.57 83.31 65.46 15.10 87.10 37.40 34.68 19.98 60.29 26.32 58.80 13.58 33.61 17.21 1.28 1.45 1.57 .63 .59 . 75 2.13 .37 1.42 i.as 1.23 3.50 1&67 9.48 30.11 75.43 76.79 71.29 55.82 61.01 34.60 35 0' 115, 107 24. 70 46,963 38.53 86 83 50,414 125, 122 64 37 59, 541 88 87 169,394 71 81 29,577 65 77 112,689 41 23 81,969 97,579 39, 58 12.98 74 01 278,410 13 72 353, 711 1.41 1.31 1.30 1.50 .37 .55 L09 .47 33.91 16.49 39.17 11.19 50.09 11.74 30.17 2.03 42.36 25.07 69.19 32.55 06. 96 16.98 40. 95 21.43 328, 971 32.5, 004 375,596 92,113 138, 344 272,981 116.842 408 HISTORY OF PRICES DURING THE WAR. KEY TO roST CHART OF ANTHRACITE COAL— Continued. Ton- nage. 390,540 180, 871 90,599 160, 034 52, 709 186,552 219,333 92, 918 184, 978 97, 621 204,465 126,562 157, 015 182, 768 140,385 95, 808 178,191 134,340 153, 685 248, 895 218,248 134, 502 93, 589 120, 120 197, 200 174, 447 236, 856 101, 304 273, ISO 141, 801 138, 540 161, 074 126,417 63,122 6,190 27, 844 216, 696 37, 140 74, 055 61, 490 54, 941 170, 018 61, 980 195, 548 37, 719 36, 092 60, 196 4,164 30, 585 98, 443 108, 625 84,361 2,219 81, 621 8,284 41, 100 234, 630 223, 779 140,087 142,391 84, 102 100, 691 81, 865 175, 310 124, 792 61,877 95, 610 132, 657 27, 681 154, 153 79,014 79, 168 128, 612 107, 283 75,272 78,054 65,957 Re- ported. $2.06 Ad- justed. S2.99 Ad- justed standard per cent sizes. General. Per cent. 2.63 2.89 4.55 4.22 3.69 3.84 5.37 4.59 3.52 3.90 3.42 3.80 5.14 4.78 5.04 5.13 4.21 4.43 4.76 4.38 3.95 4.05 3.47 4.02 3.28 3.67 3.80 3.70 4.52 4.69 4.19 4.33 4.02 4.25 4.23 4.19 3.79 3.86 3.70 4.79 3. 87 4.03 3.97 4.45 4.13 4.28 4.88 4.83 4.168 4.213 3. 384 4.003 5.117 5.144 4.334 4.412 4.407 4.570 4.702 5.070 4. 573 4. 523 4.012 3.863 6.019 5.692 3.095 3.828 4.082 3.630 4.521 4.803 4.916 4.9?1 4.791 4. 6 -."^ 5.875 4.046 4.420 3.769 4.008 3.170 3.273 6.184 5.410 5.305 4.851 5.031 4.950 14. 499 5.00 4.923 4.381 4.601 4.669 4.037 4.057 5.452 5.036 5.363 5.205 4.088 4.637 3.561 3.901 4.470 4.210 4.400 4.50 3.930 3.71 6.07 5.27 4.24 4.27 5.12 5.59 5.07 4.73 5.35 4.92 3.80 3.84 4.70 4.61 5.78 5.51 7.91 7.06 5.65 5.97 5.51 5.02 3.93 3.81 4.33 4.07 4.73 4.28 5.20 4.75 5.40 4.97 4.52 4.77 3.77 4.40 3.97 4.36 -t- 5.62 - 7.71 -7.2 - 3.26 -12.9 + 4.86 + 3.33 - 3.91 - 2.79 - 0.76 -5.2 4- 2.90 + 6.63 -f 8.24 - 5.73 -t- 1.1 - 0.92 - 0.47 -0.88 - 3.71 - 5.38 - 0.85 -f- 4.51 - 2.49 - 3.71 - 5.71 + 8.65 + 2.56 + 0.69 4- 1.81 + 1.50 + 2.88 - 1.1 -1.9 + 1.3 -h23.7 -7.2 -1-10.9 -0.5 -0.9 + 0.3 +12.0 -4.4 - 3.64 -12.55 - 8.56 - 1.60 -12.47 -11.0 + 5.6 -0.2 - 7.63 + 1.6 + 10.2 + 5.7 + 14.9 + 2.23 -5.6 -11.78 + 0.55 + 9.03 - 6.67 - 5.40 + 1.05 - 1.90 - 4.62 - 6.81 + 6.77 - 8.38 - 5.52 -6.00 - 8.02 - 8.63 - 8.00 + 5.6 + 16.8 + 9.8 1. IS .55 .27 .48 .16 .56 .66 .28 .56 .30 .62 .38 .48 .55 .42 .29 .54 .41 .47 .75 .66 .41 .28 .36 .60 .53 .72 .31 .83 .49 Re- ported cum. 1. IS 4.27 79.06 43.24 96.17 37.07 33.64 91.71 90.11 67.57 83.93 55.18 35.74 25.31 48.90 78.79 66.64 62.29 69.09 47.52 43.90 53.05 57.15 65.57 86.24 66.10 32.34 91.18 74.24 76.49 Ad- justed cum. .38 .19 .02 .08 .47 .24 .24 .33 .32 .23 .24 .20 79.53 60.15 98.66 16.35 64.65 78.50 86.46 85.20 63. 13 45.72 19.89 99.49 95.75 89.55 89.37 86.55 77.83 62.62 97.64 96.01 64.90 39.62 77.12 76.06 54. 40 99.37 69.42 90.87 90.53 96.00 48. 05 82.65 97.72 53.72 72.18 83. 13 93. 53 96.49 78.39 45. .53 56.87 10.72 7.29 67.74 48.12 81.79 51.05 45.12 88.43 95.31 76.65 73.45 59.18 54.66 39.41 44.46 85.21 71.77 68.48 65.12 48.87 89.53 55.07 78.01 70.16 91.08 66.41 52.89 95.62 75.84 81.63 Company. Per cent. 1.56 80.90 49.41 99.39 47.11 36.56 89.64 92.59 83.50 76.35 53. 08 22.84 98.34 91.27 93.31 93.64 73.54 84.92 60.62 94.62 95.63 83.22 50.49 65.88 80. 23 41.30 96.65 69.21 98.98 87.40 92.22 47.64 82.83 .64 .21 .74 .87 .37 .74 .39 .82 .50 .63 .73 .56 .38 .71 .54 .61 .99 .87 .54 .37 .48 .79 .70 .94 .40 1.09 .57 Re- ported cum. 1.56 5.30 .78 .15 .14 .24 .02 .12 .39 .43 .34 93.72 45. 59 61.20 70.40 87. 73 93. 63 ,88. 15 75.01 72.31 52.70 97.41 45.89 41.82 92.96 92.19 76.51 88.00 64.23 44.59 30.90 57.86 84.97 75.69 71.54 77.81 56.73 53.57 63.20 66.29 74.28 89.20 74.98 40.11 92.59 81.79 83.78 Ad- justed cum. 13.21 9.59 Individual. Per cent. Re- ported cum. 24.14 99.66 97.20 91.45 01.21 89.32 84.17 72.75 98". 10 55.09 87.99 58.21 52. 55 91.60 96.67 84.28 81.05 67.46 63.09 46.63 51.68 91.11 79.54 76.46 73.13 56.08 92.47 63.66 85.06 78.11 93.26 74.22 61.12 97.07 83.89 87.78 28.36 99.30 93.40 84.72 94.74 81.17 90.73 67.89 95.93 1.14 60.64 1.59 .79 .08 .35 2.72 .47 .93 .77 2.14 .78 .03 1.03 .10 .52 2.95 2.81 1.76 1.79 1.06 1.27 1.03 2.20 1.57 .35 2.81 .99 1.00 1.37 1.35 .95 .98 .83 68.50 30.90 97.31 2.89 37. 32 69. 50 78.03 76.20 33.18 17.39 92,46 13.08 66. 34 53.69 26.83 97.31 43.14 86. 91 85.49 92.43 20.87 68.54 96.77 26.83 50.62 70. 54 89. 85 93.81 59.03 14.56 28.64 GOVERISTMENT CONTROL OVER PRICES. 409 KEY TO COST CHART OF ANTHRACITE COAL— Continued. Costs. Ad- justed standard per cent sizes. General. Company. Individual. Ton- nage. Re- ported. Ad- justed. Per ^®- ^l^\ ported ^^°-^- \ cum. j Ad- justed cum. Per cent. Re- Ad- ported justed cum. cum. Per cent. Re- ported cum. Ad- justed cum. 64,023 41,316 238, 729 25, 565 S4.62 4.94 4.86 5.16 4.94 4.67 S4.76 5.13 4.97 4.83 4.31 4.18 + 3.2 -t- 3.8 + 6.2 + 6.0 . -10.9 -10.6 . 19 80. 15 . 13 86. 96 87.92 94.75 .80 .52 63.95 78.55 77 45 91.09 .08 i 91.84 .28 86.83 .06 ! 81.91 91. 16 71.23 64. 45 .32 1.15 .24 88.48 79.70 66.66 84 53 91, 747 47.19 19, 338 39.81 It may be repeated that the price-fixing committee gave frank recognition to the fact that a determination to fix prices at the " bulk line " would give the lowest-cost producers enormouslj^ large profits. They relied, however, upon the Government getting those profits through the operation of the excess-profits tax. Chairman Brookings gave voice to the sentiment that it made no especial difference to the Government whether these profits were held in check by the com- mittee or taken by tax. A considerable tax upon excess profits was already being collected in 1918, under the revenue act of 1917, upon the incomes of 1917, and one still higher was in prospect for the incomes of 1918.^ (6) THE INTERPRETATION OF A "REASONABLE PROFIT." Once the " bulk line '' of production had been found and the cost necessary to protect enough producers to supply tli^t amount, the technical difficulties of fixing any price were over. There remained then simply the allowance of a " reasonable " margin for profit above the " bulk-line " cost and the announcement of the price. The " bulk line '' for coal, in the Fuel Administration, was located by a committee of technical experts who left, as a matter of policy, the determination of the fixed price above the " bulk line " to the Fuel Administrator in person. The price-fixing committee, which had no su ch_ technical assistance, roughly Gstiiiiated their own "' bulk lines-ILancl fixed their own prices after .conferences with the industry. The whole body of price-control boards at Washington, either care- fully or roughly, figured that the producer should have a " reasonable profit," though they were not in agreement as to what that profit should be. The President in his address to the mine operators and manu- facturers of the United States, on Julj^ 12, 1917. had said: A just price must, of course, be paid for everytliiug the Government buys. By a just price I mean a price wbicli will sustain tlie industries concerned 1 See " PriceyFixing as sgen by a Price-Fixer,*' ty F. W. Taussig in the Quarterly Journal of Economics, February, 1919. 410 HISTORY OF PRICES DURING THE VV^AR. in a high state of eflicienoy, provide a living for those who conduct them, enable them to pay good wages, and make possible expansions of their enter- prises which will from time to time become necessary- as the stupendous under- takings of the great war develop. It was left to each board, however, to determine upon the inter- pretation of their general principle and its application to specific controls. The price-fixing committee tried in a rough way to measure the prewar profits and, with that weapon in hand, they fought in con- ference for the opportunist policy most favorable to the Govern- ment upon which they and the industry could agree. They were compelled, for want of adequate legal powers, to accomplish their ends by resort to indirect methods and did not have the same relative success with all industries. There was not, therefore, established by the price-fixing conunittee, and given out to the public as their formal policy, any resolute or general rule with respect to what they considered a " reasonable profit." It was, indeed, not possible for them to formulate any such general policy by reason of various cojnplications within certain industries. It has already heen noted, for example, that the difiiculties of negotiation made finally man- datory the apx^roval of particular cotton-goods prices at figures more than 25 per cent above cost. A considerable emphasis has already been given to the noteworthy work done by the Food Administration with respect to determining their " reasonable margin of profit." Mr. Herbert Hoover said over and again that no person was entitled to make more profit from any employment than he could have made under prewar conditions. He did not interpret this policy to mean, of course, that no licensee could charge more than a prewar price. The administration of his general policy gave form to three important aspects of rule: That the " reasonable margin of x>i'ofit " must be figured upon a cost basis, the fixing of maximum margins of profit above that basis, and the disregard of replacement value in fixing margins. 12. THE LIFTING OF GOVERNMENT CONTROL OVER PRICES. The Government iDegan lifting its war-time control over prices immediately after the signing of the armistice, and had. in fact, virtually restored prices to free competition by the end of 1918. Some controls were continued a short while beyond November 11, 1918, at requests from the industries to allow for gradual readjust- ment, or where it was required ALL CONIMODITIES CXINTP-OLLED AND UNCONTPOLIH) AUCa5T.19i7 T0MAY,I919 that particular transactions al- i^ady underway be completed. The War Industries Board told its commodity chiefs after the armistice was signed that the war was-'OTer, and repeatedly refused to enter into new regu- lations. It closed its doors to new business officially on Decem- ber 31. 1918. The price-fixing committee refused numerous re- quests to continue price fixing, in the maixu and disbanded on March 1, 1919. The Fuel Ad- ministration relinquished its control over fuels and closed offi- cially all price control on Janu- ary *31. 1919. The Food Ad- ministration, though obliged to continue certain controls, such as wheat and sugar, lifted most of its regulations soon after the armistice. The TTar Trade Board continued its license con- trol over exports and imports somewhat longer than other boards continued price control, but closed its official work on June 30, 1919, and went into the State Department for liquidation. (i) THE EFFECT OF LIFTING CONTROL UPON PRICES. It is of especial significance, since most of the Government regu- lations over prices had been lifted by January 1. 1919, to inquire 411 The Bareaa of Labor Statii-tiCi index numbers. — "' AU commodities "' sepa- rated into controlled and Jiacoatrolied. — By montlis, Aagnst, 1017, to ilav, 1919 (1913=100^ 412 HISTORY OF PPJCES DUEING THE WAR. what then happened to prices. A succinct presentation of the effects of lifting control upon the "All Con;imoclities " index number of the Tiureau of Labor Statistics is given here. There follows a separa- tion, extending from August, 1917, when control began, to May, 1919. of the series carried by the Bureau of Labor Statistics into con- trolled and uncontrolled commodities.^ Beginning with August, 1917, all commodities carried by the Bureau of Labor Statistics were divided into two groups — one of commodities over which price control was exercised at some time during the war, and one of those over which no control was exercised. An index number for August, 1917, was figured for each series on a 1913 base, and subsequently the per cent of change each month from the preceding month was found and multiplied by the index number for the month used as a base. Thus, two new index numbers, one for controlled and one for uncontrolled commodities, were made from the Bureau of Labor Statistics "All Commodities " index num- ber, and by the same method. The fact that the Bureau of Labor Statistics index number in July, 1917, was 185, and that the new con- trolled index number for August stood at 191 and the uncontrolled at 162. does not, of course, mean that controlled prices rose that month or that uncontrolled prices fell. The behavior of the index number of controlled commodities, after control had been lifted in January, 1919, would seem to indi- cate that regulation had held it in check. Once the regulations wer© removed, and in spite of the fact that war pressure had ceased, the index started upAvard and continued rising throughout the spring. The index number of uncontrolled commodities, which showed less stability during the war, underwent no such fluctuation or rise dur- ing the first half of 1919 as characterized the controlled index. There were so many new influences tending to determine the course of prices after control was lifted that no further generalization upon the effectiveness of war-time regulation can hfere be made. ' Tlie basis for determining which commodities were controlled and which were un- controUed was precisely that used in the making of controlled and uncontrolled indexes from the price section index number. It is easily possible, therefoi'e, to check the com- modities carried by the Bureau of Labor Statistics against the list of commodities counted as controlled and uncontrolled in the following chapter and. discover the separa- tion that is made here, GOVERISTMENT CONTROL OVEE PRICES. 413 THE BUREAU OF LABOR STATISTICS INDEX NUMBERS OP "ALL COMMODITIES " SEPARATED INTO CONTROLLED AND UNCONTROLLED COMMODITIES FROM JANUARY, 1914, TO MAY, 1919. [1913=100.] Uncontrolled Januarv, 1914, to August, 1917. 1915 1916 98 110 100 111 99 114 99 116 100 118 99 118 101 119 100 123 98 127- 101 133 102 143 105 146 January... February . March April May June July August . . . September October... November December. 100 99 99 99 102 103 99 98 97 150 155 160 171 181 184 185 184 1917 1918 1919 Con- Uncon- trolled, trolled. Con- trolled. Uncon- trolled. Con- trolled. Uncon- trolled. 1 185 186 185 189 189 188 194 198 201 198 201 194 182 184 190 194 192 201 205 209 216 211 213 211 198 192 197 202 205 204 February ... 1 200 March 201 April 197 Mav 202 June . . July .. 191 189 182 183 181 162 158 168 173 176 :::::::::::::::;::: October December. . (2) THE PURPOSE OF THE INDUSTRIAL CONFERENCE BOARD. Considerable anxiety arose within the Government and out, following the lifting of war-time control over prices, lest prices become unstable while readjusting themselves to peace-time condi- tions. The informal discussion held at Washington between high officials following the signing of the armistice developed a belief that the agreements relied upon during the war to hold prices down could be modified to meet the peace-time situation. The Cabinet was called into special meeting on February 5^ 1919, and made plans for the creation of an industrial board. The industrial board, under the plan approved by the President, was to meet the representatives of industry and determine with them " fair prices " for the basic raw materials. These prices, it was thought, could be found by a study of cost and marketing data and could be agreed upon as during war time without resort to compul- sion. The personnel of the new board was announced by the Secre- tary of Commerce on March 10, 1919, and its seven members began work immediately. 414 HISTORY OF PRICES DURING THE WAR. The new board held numerous conferences during March with rep- resentatives of tlie more important industries and discussed the low- ering of prices. In several cases agreements were reached and the agreed " fair prices "' announced. The strength of the board lay in part in the hope that it and offi- cials of the Government responsible for large purchases might work in absolute understanding. But on April 1, 1919, there arose a seri- ous difficulty in the refusal of the Eailroad Administration to ac- cept the " agreed upon " pripes set by the board for steel rails. There seemed no way of reaching an agreement between the Railroad Administration and the industrial board. The Attorney General announced, as his opinion, that the plan developed had no legal authority. The difficulties of various kinds, aggravated by the lack of statutory power, accumulated and the members of the board resigned as of May 12, 1919. The informal method of fixing i)rices had not proved as efficacious in peace time as during war. Part III. STATISTICAL DEVICES FOR MEASURING THE EFFECTS OF PRICE CONTROL. INTRODnCTION. A study of the extraordinary heights to which prices rose by August, 1917, and of the actions then begun by the Government to arrest them, prompts the inquiry how those actions affected prices. The search for a full answer leads into wide fields of study, depending upon the individual urge, and leaves the investigator at last with little more than opinion. Men differ in the objective points by which they judge whether price control w^as effective, and seek nothing so much as facts with which to support their own theories. This monograph nowhere ventures to establish or contest any theory of Government regulation. It presents simply the f>ertinent facts. There have been set up in the present chapter various statistical devices with •which each person may for himself measure the effects of Govern- ment price control. It should be understood at the outset that no one can hope ever to measure precisely the effects of price control upon the general level of prices. The better price index numbers of commodities at wholesale, made from selected samples which are weighted to allow each commodity its proper influence upon the index, give an accurate enough record of the general price level. They show how wholesale prices actually moved during the war. But it can not be said, of course, to what further heights the prices would have carried these index numbers had there been no Government interference. It is possible only to look backward and analyze what did happen. The most useful analysis for students anxious to know the effects of con- trol is had by separating the controlled and uncontrolled commodi- ties in a general index number of prices and recomputing nev/ in- dexes for each. The resulting devices make reliable measures of past relative rises of controlled and uncontrolled prices and at least suggest probable rises under free competition. 415 416 HISTORY OF PRICES DURING THE WAR. There have been made, and put into this chapter for each student to use as he will, the follo^^^lng statistical devices for measuring the effects of price control: A tabulation of the commodities controlled and uncontrolled each month showing the gi'adual extension of con- trol by an arrangement of the series in the Price Section index num- ber; mdex numbers of controlled and uncontrolled prices for "all commodities," the 7 major groups and the 50 subclasses, rmming by- months from 1913 to 1918, and showing then' relative movements away from prewar levels; chain indexes of controlled and uncon- trolled prices for "all commodities," 7 major groups and selected iiubclasses, running by months from April, 1917, to the end of 1918, and showing in each month the rise or fall from the month preceding; the relative points below which 50 selected basic commodities were pegged; a comparison of controlled raw-material prices with their uncontrolled manufactures; a comparison of controlled prices of manufactured goods with their uncontrolled raw materials; a com- parison of controlled raw material prices with their controlled manufactures; a comparison of controlled wholesale prices with corresponding controlled retail prices^ and finally a comparison of war prices in the United States, England, France, and Canada. 1. THE GRADUAL EXTENSION OF PRICE CONTROL. It is of value, before attempting any measure of the effects of price control, to note the extent to which the Government brought com- modities under control. An analysis of the 1,366 typical commodi- ties at wholesale, which are included in the .Price Section index number, shows that in September, 1917, only 3.66 per cent of them were controlled and the remaming 96.34 per cent uncontrolled. But by the time the armistice was signed the Government had brought 41.95 per cent of these commodities under price control, while 58.05 per cent of them were still uncontrolled. The table which follows shows the commodities that were brought under con- trol each month during the war and the rate at which the list of controlled commodities increased and that of uncontrolled commodi- ties decreased. GOVERNMENT CONTROL OVER PRICES. 417 "ALL COMMODITIES." (1366 series=100 per cent.) Control began. 1917. September. October . November. December . ^ . . . 1918. January . . Commodities. February. March . April . . June. July. August September. October . . . November. December . , Coal, coke, copper, wheat, iron ore, pig iron, steel bars, steel shapes, steel plates Steel blooms and biUets, sheet bars, wire rods, skelp, sugar Steel sheets, pipe, steel scrap, tinplate, lead, corn, oats, barley, fresh fruits and vegetables, live stock, poultry, fish, vegetable oils, southern or yellow pine, ammonia, smoke- less cannon powder Douglas fir, wood chemicals, Portland cement, remainder of iron and steel class Number of series. Con- trolled. Uncon- trolled. Nitrate of soda, fertilizers, except sulphur and sulphuric acid Zinc, formaldehyde, toluol, arsenic, animal feeds, coffee Aluminum, binder twine, manUa fiber Spruce, hemlock, nickel, quicksilver, silver, paper, caustic soda, soda ash, bleaching powder, carbon, tetrachloride Wool, hides and skins, rubber, platinum, manganese, cotton, linters, quebracho Sulphuric and nitric acids, sulphur, harness leather Cotton goods and cotton yarns, brick, build- iag tile, sand and gravel, crushed stone Woolen rags, glycerin, sole and belting leather, crude petroleum, kapoc Silk waste Burlap 266 294 352 362 387 469 481 545 570 572 573 573 573 1316 1300 1100 1072 1048 1014 1004 979 897 885 821 796 794 793 793 793 Percentage of series. Con- trolled. 3.66 4.83 19.47 21.54 23.28 25.77 26.50 28.34 34.33 35.22 60.10 41.73 41.87 41.95 41.95 41.95 Uncon- trolled. 96.34 95.17 80.53 78.46 76.72 74.23 73.50 65.67 64.78 39.90 58.27 58.13 58.05 58.05 58.05 The queries which press most persistently, on one seeking to measure effects of price control, are whether the commodities that were brought finally under regulation had risen relatively higher than others, whether the controlled commodities afterwards became more stable than the uncontrolled, and, finally, to what heights prices were allowed to rise before the Government began regulating them. These moot points can scarcely be settled in a manner that will permit of generalization upon the effects of control as a whole, except by the construction of a weighted index number for commodities that came under control some time during the war and another for those which did not. It is true that none of the commodities in such a controlled list would have come under price control before the summer of 3 917, and some of them not until 1918. But, if one object of the inquiry is to determine whether the precontrol rises of commodities afterwards controlled were more threatening than rises of other commodities, this is the proper method to pursue. The index numbers presented here by months from January, 1913, to December, 1918, are not then strictly speaking for controlled and uncontrolled commodities as it is proposed to call them. They are, more specifically, an index number of representative commodities which were brought under price control some time before the signing of the armistice and an index number of other commodities equally representative which were not. 125547°— 20 27 418 HISTORY OF PRICES DURING THE WAR. 2. THE PRICE SECTION WEIGHTED INDEX NUMBER SEP- ARATED INTO CONTROLLED AND UNCONTROLLED PRICES. The index number of wholesale prices made by the Price Section of the War Industries Board is, by all odds, the most comprehensive and best device for measuring war prices that has been used in this country. This index number contained prices for 1,366 of the most important individual commodities that were dealt in at wholesale during the war, classified into 7 major groups and 50 subclasses. These 1,366 commodities, for which the index number contains monthly, quarterly, and yearly prices from January, 1913, to Decem- ber, 1918, fall under one or another of the following 7 groups and 50 classes : I. Foop Group. 1. Feed and forage. 2. Wheat and wheat products. 3. Com and corn products. 4. Oats, rice, buckwheat, and their products. 5. Barley, hops, rye, and their products. 6. Sugar and related products. 7. Vegetables and truck. 8.- Edible vegetable oils. 9. Fruits, nuts, and wine. 10. Spices and condiments. 11. Tea, coffee, and cocoa. 12. Tobacco and tobacco products. 13. Live stock, meats, and fats. 14. Poultiy and dairy products. 15. Fish and oysters. II. Clothinc". Group. Ifi. Cotton and cotton products. 17. Wool and wool products. 18. Silk and silk products. 19. Hides and skins and their products. 20. Hatters' fur and fur felt hats. 21. Hair, bristles, and feathers. 22. Butt'ons. III. Rubber, Paper, and Fibers Group. 23. Rubber and rubber products. 24. Paper. 25. Fibers and fiber prodiicts. IV. Metals Group. 26. Iron, steel, and their products. 27. Ferroalloys, nonferrous and metals. rare V. Fuels Group. 28. Coal and coke. 29. Petroleum and its products. 30. Matches. VI. Building Materials Group. r 31. Clay products. 32. Sand and gravel. 33. Quarry products. . 34. Cement. 35. Glass. 36. Lumber. 37. Paints and varnishes. VII. Chemicals Group, 38. Mineral acids. 39. Heavy chemicals. 40. Miscellaneous inorganic chemicals. 41. Fertilizers. 42. Soaps and glycerin. 43. Essential oils, flavoring, and per- fumery materials. 44 . Wood distillation products and naval stores. 45. Natural dyestuffs and tanning chemi- cals. 46. Coal-tar crudes, intermediates, and dyes. 47. Drugs and pharmaceuticals. 48. Proprietary preparations. 49. Explosives. 50. Miscellaneous organic chemica-ls. GOVERNMEISTT CONTROL OVER PRICES. 419 The price series were, so to speak, laid upon a table and separated into those which some time came under price control and those which did not. The field of prices formally or informally controlled by the Government is infinitely wider and more indefinite than that covering simply the prices fixed. But an adequte measurement, covering all price regulations undertaken by the Government, requires that the broader interpretation of control be chosen. There was involved, therefore, considerable arbitrary judgment in determining whether certain prices were controlled. The use of the word control at any rate is consistent throughout this inquiry and it is doubtful whether the few exceptions which may be taken to the division made would materially affect the result. The 1,366 commodities were, as indicated, then separated into 573 controlled and 793 uncon- trolled commodities. (1) TABLES OF INDEX NUMBERS OF PRICES OF CONTROLLED AND UNCONTROLLED COMMODITIES. These 573 series of controlled wholesale prices and the 793 series of those uncontrolled, after classification under their proper groups and subclasses, were weighted by multiplying each individual series by the quantity of its 1917 production plus imports. That operation, designed to assign each commodity an influence upon the final index in proportion to its importance, gave 12 monthly, 4 quarterly and 1 yearly aggregate for each of the 1,366 series for each of the 6 years. These aggregates were then turned into relatives by allowing the average prewar aggregate (July 1, 1913, to June 30, 1914,) to equal 100. There was thus made an index number for controlled and another for uncontrolled prices upon a prewar base. The slight dis- crepancy between the Price Section " all commodities" index number listed here as "all," and the controlled and uncontrolled indexes occurs because class weights were not used in making the latter.^ It is of especial significance that the 573 series of the " all commod- ities" index, which the Government filially put under control, had risen much higher when control began than the remaining 793 uncon- trolled series. Indeed, just before the Government began control of them the index of these so-caUed controlled series reached 209, while the index for the uncontrolled series during the same month was only 160. But immediately after the beginning of control the index for the controlled series began to drop until by June, 1918, it was down to 189. The index of the uncontrolled series, on the other hand, continued steadily upward until October, 1918, when it reached 201. The controlled series likewise rose after June but never again reached the higher point to which they had climbed before control began. 1 On the use of class weights, see War Industries Board Price Bulletin No. 1, " Summary," by Wes- ley C. Mitchell. 420 HISTORY OF PRICES DURING THE WAR. The food prices that came finally under control during the war had risen to 194 when price control really set in, while the uncontrolled lot during that month had risen only to 150. The controlled food prices, which reached a peak of 200 in November, 1917, began droppmg as control w^as extended until they were as low as 179 in June, 1918. They then started upward again during the latter half of 1918. The uncontrolled food prices, while at a lower level when food control set in, continued rising during the wdiole time that the controlled food prices were falling. Control within the clothing group began relatively late and the behavior of the controlled and uncon- trolled indexes is not greatly different. The effect of the controlled wool prices upon their uncontrolled manufactures, and that of con- trolled cotton manufactures upon their raw material are studies, of course, which can be made only by use of the class indexes for wool and cotton. The effect of control within the rubber, paper, and fiber group does not show in the controlled index until during the latter half of 1918. There are few groups in which the effect of control upon market prices shows so immediately and clearly as in metals. The index of metals which the Government finally controlled reached an extraordinary peak of 350 in July, 1917, when talk of regulation began. The other metals, which never did come under control, had risen only to 205 in that month. Metal prices started downward before actual Government regulation began, and were brought by regulation down to 212 by November, 1917. It is noteworthy that the index of controlled metals was held within a few points of that stable level throughout the war. The rise within the controlled fuels, ^ ' following Government regulation of coal, would seem to indicate that coal control did not hold prices down. The rise, however, is explained in a large way by increases which were from time to time allowed by ^ the Fuel Administration. It is difficult to measure the effects of control within the building materials group because of the somewhat similar behavior of the controlled and uncontrolled groups, and the fact that building materials prices were so largely influenced by war buying. The controlled series within the chemical group began a decline in April, 1918, which continued throughout the year. They had fallen from 224 in April to 174 by December. The uncontrolled series during the same months rose gradually. GOVERIsrMENT CONTROL OVEE PRICES. 421 422 HISTORY OF PRICES DURING THE WAR. gover:n^ment control over prices. 423 o i ^ C J S ^d: r . December. Quarters- First Second Third Fourth.,. - Fear 1914— Months- January... February . March April May June July August September October... November. December. Quarters- First Second Third Fourth.... Ycai- 1915— Months- January... February . March April May June July August September October... November December. Quarters- First Second Third Fourth.... Yrar The food group. Sugar and related prod- ucts class. Con- trolled. (9) 105 100 101 99 99 99 105 110 109 103 104 99 102 99 108 102 103 97 91 90 96 100 100 151 161 136 116 115 95 95 137 122 117 131 136 136 138 139 138 133 123 lis 132 13S Un- con- trolled. (1) 103 103 103 103 103 107 107 107 107 107 107 107 103 104 107 107 105 107 95 85 87 91 95 95 99 99 99 99 132 12S 96 138 95 132 97 129 99 All. (10) 105 100 101 99 99 99 105 110 109 103 104 99 102 99 108 102 103 96 97 91 90 96 100 99 150 160 136 115 115 95 95 137 122 117 131 135 136 138 139 138 133 123 117 132 138 128 138 131 129 Vege- tables and truck class. All con- trolled. (15) 90 102 104 102 97 98 98 100 101 102 104 104 113 115 104 93 83 81 100 103 111 85 100 Edible vegetable oils class. Con- trolled. (13) 105 106 102 96 104 97 98 98 99 101 99 98 98 100 92 81 93 90 98 96 93 90 87 84 81 89 111 115 125 94 90 84 117 96 Un- con- trolled. (1) 109 111 114 110 112 112 108 106 106 106 108 104 111 111 107 106 109 101 99 90 87 102 82 81 87 120 SO 93 115 144 145 140 115 114 112 120 120 131 149 131 135 123 118 137 All. (14) 91 91 95 95 9;8 105 106 102 98 99 90 96 105 98 99 100 99 90 99 97 94 90 87 84 82 89 112 115 125 95 91 85 117 Fruits, nuts, and wine class. Con- Un- trolled. troUed. (10) (7) 71 96 71 97 74 97 75 99 88 100 102 102 96 103 89 103 86 104 83 105 88 103 90 102 72 97 88 101 90 103 87 103 84 101 99 101 110 98 117 96 116 96 114 95 113 94 92 94 79 95 69 97 60 97 60 97 61 96 108 QS 115 95 80 95 CO 97 90 96 63 94 66 95 66 95 76 95 82 94 90 90 85 90 74 89 72 89 70 82 67 84 68 87 65 95 82 93 77 89 69 84 73 90 GOVERNMENT CONTROL OVER PRICES. 435 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices, July, 1913, to June, 1914=100.] The food group. Sugar and related prod- ucts class. Con- trolled. (9) Un- con- trolled. (1) All. (10) Vege- tables and truck class. All con- trolled. (15) Edible vegetable oils class. Con- trolled. (13) Un- con- trolled. (1) All. (14) Fruits, nuts, and wines class. Con- Un- trolled. (10) (7) 72 86 75 86 75 83 75 84 77 85 89 85 83 88 84 89 80 92 82 99 89 102 89 102 74 85 81 85 84 90 87 101 81 90 92 104 105 104 114 101 114 101 114 100 lis 110 116 106 109 108 103 108 106 120 1116 126 121 127 104 103 116 104 109 108 115 124 111 109 124 129 1.30 130 138 134 144 134 164 137 168 139 155 138 139 141 136 143 140 153 140 175 137 184 130 131 159 137 144 141 139 171 143 145 All. (17) 1916— Months- January... February . March. .L. April May June July August September October... November December. Quarters- First... Second. Third.. Fourth. Year. 1917-Months— Januarjr — February . . March April May June , July August September . October November. December.. Quarters- First Second Third Fourth Year 1918— Months- January.. February . March April June July August September . October November . December.. Quarters — First Second Third Fourth..... Year 134 140 155 167 176 174 175 163 153 170 175 159 143 173 164 168 162 155 156 164 184 185 181 189 206 204 1201 200 192 159 184 200 198 182 181 181 181 180 180 181 182 203 212 212 213 181 180 188 212 191 99 91 87 87 87 95 95 103 95 95 95 95 99 99 103 103 134 142 90 91 100 127 102 147 158 158 162 162 166 166 170 193 193 221 221 154 163 177 212 134 139 154 166 175 173 174 162 152 169 174 159 142 172 163 167 161 154 156 163 183 184 180 188 204 202 200 199 192 101 115 121 124 .123 128 135 130 138 139 166 177 112 125 134 161 133 212 272 275 314 307 276 215 186 174 1182 178 158 222 182 299 199 226 197 178 184 232 i 181 184 181- 188 181 186 ISl 169 ISO 159 180 150 181 165 182 201 202 207 212 196 212 181 213 171 181 186 180 159 188 191 212 183 191 ISO 1 129 132 141 147 149 146 138 151 145 163 181 180 134 147 145 175 150 175 175 1,83 199 209 211 199 199 208 233 1246 248 177 206 202 242 252 255 255 256 256 252 251 249 255 255 255 255 2.54 254 252 255 25J ' 132 120 124 120 120 116 112 124 108 97 105 96 126 119 115 100 115 103 101 89 97 91 91 93 87 88 104 112 105 102 96 105 105 97 103 104 120 101 101 102 109 103 129 131 140 146 148 145 138 151 144 162 179 178 134 147 144 173 150 173 173 181 196 206 208 197 197 205 230 243 244 176 204 200 238 249 252 .252 252 252 248 248 246 251 252 251 252 251 251 249 252 250 Price control began during month. 436 HISTORY OF PRICES DURING THE WAR. TRICE SECTION WEKMITEP INDEX NXTMRER SEPARATED INTO CONTROLLED AND UNCONTROLLED I'RICES, 1913-1915. [Base: Average prices, July, 1913, to June, 1915= 100.] The food group. Spices and condi- ments class. Tobac- Live- Poul- co and ftock, try and Tea, coffee, and cocoa class. tobac- co prod- meats, and dairy prod- Fish a nd oyster class. ucts fats ucts class. class. class. All Con- trolled. Un- All All All Con- trolled. Un- uncon- con- AH. uncon- con- con- con- All. trolled. trolled. trolled. trolled. trolled. trolled. (10) (9) (11) (20) (15) (48) (43) (14) (1) (15) 1913— Months- January 103 129 103 124 103 97 104 104 105 105 February . . . 103 123 104 120 103 95 103 117 105 111 March 101 115 106 113 99 101 100 99 105 102 April 101 110 103 109 • 97 103 98 99 105 102 May 102 109 104 108 97 99 89 83 105 95 June 101 lOl 104 102 98 101 86 85 105 96 July 99 96 103 • 97 99 101 91 84 92 88 August 100 96 101 97 99 100 90 91 92 91 September . . 99 98 102 98 101 100 102 93 99 96 October 100 108 102 107 102 100 107 92 102 97 November . . 100 106 102 106 102 97 114 96 102 99 December. . . 100 101 101 101 102 97 115 115 102 108 Quarters- First 102 122 104 119 101 97 102 107 105 106 Second 101 107 103 106 97 101 91 89 105 98 Third 100 97 102 97 100 100 96 89 94 92 Fourth 100 105 102 105 102 98 112 101 102 102 Year 101 107 103 107 100 99 100 96 102 99 1914— Months- January 100 99 99 99 100 99 112 116 102 109 February . . . 101 102 99 102 100 101 105 107 102 104 March 101 98 98 98 99 101 99 112 102 107 April 101 98 98 98 99 lOl 90 101 102 102 May 99 96 99 97 99 101 84 96 102 99 June 99 101 98 100 - 99 101 84 96 102 99 July 99 98 98 98 99 103 90 99 102 101 August 110 102 107 103 100 105 90 101 102 101 September.. 109 92 103 94 100 108 100 105 102 103 October 106 80 100 84 100 102 106 122 102 112 November . . 105 81 101 84 100 ■ 100 112 112 102 107 December. . . 105 80 HI 86 100 100 113 110 102 106 Quarters- First 101 100 99 100 100 100 105 112 102 107 Second 100 98 98 98 99 101 86 98 102 100 Third 106 97 103 98 100 105 95 102 102 102 Fourth 105 80 104 84 100 101 110 115 102 108 Year 103 94 101 95 99 102 99 106 102 104 1915— Months- January 107 82 103 86 101 95 112 113 102 107 February . . . 112 85 120 91 101 92 106 116 102 109 March 115 83 120 89 101 92 100 121 102 111 April 116 85 119 91 101 92 91 109 102 105 May 114 83 115 89 101 95 84 101 102 102 June 114 79 113 85 101 96 82 95 102 99 July 115 80 119 87 101 98 89 97 87 92 August 114 80 121 87 101 96 91 99 87 92 September . . 114 76 118 83 101 96 96 96 87 91 October 117 77 119 84 101 98 101 92 87 89 November. . 123 81 126 89 101 94 109 108 87 97 December. . . 124 h2 121 88 101 92 HI 98 87 92 Quarters- First 111 83 11" 89 101 93 106 117 102 109 Second 114 82 116 88 lOl 94 86 102 102 102 Third 115 79 120 S6 101 97 92 97 87 92 Fourth 121 80 122 87 101 95 97 99 87 93 Year 110 81 119 87 101 95 98 104 94 99 GOVERNMENT CONTROL OVER PRICES. 437 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices, July, 1913, to June, 1914=100.] 1916— Months- January... February . March April May June July August September October... November December. Quarters- First Second Third Fourth.... Year 1917— Months- January... February . March April May June July August September October . . . November, December. Quarters- First Second. . . '. Third Fourth.... Year 1918— Months- January... February . March April May June July August September October... November December. Quarters- First Second Tiiird Fourth Year The food group. Spices and condi- ments class. All uncon- trolled. (10) 129 132 144 141 137 135 135 132 132 132 132 140 135 138 133 135 135 148 155 158 164 169 171 171 170 172 175 178 177 154 168 171 177 167 176 182 187 204 209 211 210 208 209 206 206 201 182 207 209 204 200 Tea, coffee, and cocoa class. Con- Uu- trolled. trolled. (9)' (11) 81 120 85 118 91 118 92 118 93 118 92 116 89 117 90 118 94 117 92 116 91 112 89 111 86 119 92 118 91 117 91 113 90 116 93 114 92 118 87 117 88 125 90 132 90 132 87 130 85 133 83 133 81 133 80 132 81 134 91 116 89 129 85 132 80 133 87 127 89 135 189 139 93 140 95 139 93 138 90 138 92 143 92 145 100 148 111 149 118 150 177 154 90 138 93 139 94 145 129 151 99 143 All. (20) 97 96 97 101 102 100 98 101 101 108 118 123 173 100 103 133 107 Tobac- Live- Poul- co and stock, try and tobac- meats. dairy co prod- and prod- ucts fats ucts class. class. class. All All All uncon- con- con- trolled. trolled. trolled. (15) (48) (43) 101 94 109 99 97 105 99 104 101 100 106 100 100 109 95 100 114 90 100 114 96 100 113 103 100 116 108 100 114 124 100 114 131 105 116 134 100 98 105 100 109 95 100 114 102 102 114 129 100 109 108 107 120 133 109 127 132 109 138 124 110 150 137 110 156 130 119 156 122 129 152 130 134 156 142 135 169 151 138 1167 1171 155 168 174 158 167 177 109 128 130 113 154 130 133 159 141 150 167 174 125 152 144 154 167 193 156 168 188 161 171 172 167 184 157 171 185 149 185 185 137 195 190 154 200 189 168 202 198 182 203 191 203 203 182 218 200 193 227 157 168 184 175 185 147 199 192 168 202 189 216 183 183 179 Fish and oyster class. Con- Un- trolled. (14) (1) 106 88 115 82 133 95 115 102 104 102 109 97 114 100 115 100 119 100 134 100 142 100 153 100 118 88 109 100 116 100 143 100 122 97 169 105 166 105 181 105 199 105 198 105 189 105 189 109 189 109 210 126 1221 126 235 126 224 126 172 105 195 105 196 114 227 126 198 113 247 126 239 126 229 126 220 126 218 146 225 146 226 146 231 146 233 146 251 156 260 160 264 174 239 126 222 139 230 146 258 163 237 144 All. (15) 97 97 113 108 103 103 107 107 109 116 120 125 102 105 108 120 109 135 134 141 150 150 145 147 147 166 171 178 172 137 148 153 174 153 183 180 175 171 180 184 184 186 188 201 207 217 179 178 186 208 188 ' Price control began during month. 138 HISTORY OF PRICES DURING THE WAE. PKICj- section weighted INDEX NLMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 19ia-1915. [Base: Average prices July, 1913, to June, 1914=100.] The clothing group. Cotton and cotton products class. Wool and woolen products class. Silk and silk products class. Con- trolled. (57) Uncon- trolled. (24) All. (81) Con- troUcd. (21) Uncon- trolled. (45) All. (66) Con- trolled. (2) Uncon- trolled. (52) All. (54) 1913— Months- 103 103 103 102 101 100 99 100 100 102 102 102 103 101 100 102 101 100 100 99 99 99 99 99 97 94 89 85 84 100 99 97 86 95 83 84 85 87 89 89 91 92 94 99 102 104 84 89 93 102 92 100 98 97 97 95 95 95 95 97 110 107 100 98 96 96 105 99 90 98 103 98 100 102 102 102 72 64 52 56 99 100 92 57 87 54 61 61 67 75 71 71 67 70 92 95 93 59 71 69 93 73 102 101 101 100 99 98 98 98 99 105 104 101 101 99 98 103 100 98 99 101 98 99 100 100 99 86 79 72 73 99 99 95 75 92 72 75 76 79 84 82 83 82 85 97 99 100 74 82 83 99 84 122 122 118 114 110 no 109 108 107 105 102 96 121 111 108 101 110 92 92 94 97 99 101 102 103 105 106 111 114 92 99 103 110 101 122 133 138 136 136 136 139 143 145 146 349 153 131 136 143 149 140 106* 106 100 106 105 105 104 103 102 102 101 99 106 105 103 101 104 98 98 98 98 98 98 99 100 100 100 101 101 98 98 100 101 90 103 104 107 107 107 108 109 111 112 113 115 116 105 107 111 114 109 108 108 108 107 106 105 105 103 103 102 101 99 108 106 104 101 105 97 97 98 97 98 99 99 100 100 101 102 103 98 98 100 102 99 105 107 110 110 111 111 112 114 116 116 118 120 108 111 114 118 113 91 90 89 91 91 91 97 96 103 98 98 99 90 91 98 98 94 101 102 103 103 102 99 103 99 91 88 82 88 102 101 98 85 96 85 85 84 84 84 85 84 85 88 89 88 95 85 84 85 01 86 96 100 96 95 95 97 96 100 101 100 99 99 97 95 99 100 98 100 101 100 100 100 103 100 96 94 93 90 91 100 101 96 91 97 92 92 92 93 92 91 91 92 93 97 103 107 92 92 92 102 95 96 100 March . .' 96 95 May 95 June 96 July 96 August 100 Septeni1:)er. 101 October 100 November 99 December 99 Quarters- First 97 Second 95 Third 99 Fourth 100 Year 98 1914— Months- January 100 February 101 March 100 Aprl 100 100 June 103 July 100 August 96 September 94 October 93 Nnv«Tn her . 90 December 91 Quarters- First 100 Second 101 Third % Fourth 91 Year 97 1915— Months- 92 February 92 March 92 April 92 92 June 91 July 91 Aupust 92 September 93 October 97 103 December 107 Quarters- First 92 Second 92 Third 91 Fourth 102 Year 94 GOVERNMENT CONTEOL OVER PRICES. 439 PRICE SECTION WEIGHTED INDEX NUMBER SEPARxlTED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices Julj', 1913, to June, 1914=100.] The clothing group. Cotton and cotton products class. Wool and woolen products class. Silk and silk products class. Con- trolled. (57) Uncon- trolled. (24) All. (81) Con- trolled. (21) Uncon- trolled. (45) AU. (66) Con- trolled. (2) Uncon- trolled. (52) All. (54) 1916— Months- 106 109 110 112 114 116 119 124 128 140 153 160 108 114 124 151 124 158 157 161 169 172 184 193 194 200 206 206 211 159 175 196 208 184 225 233 246 268 1270 275 279 283 269 270 270 267 235 271 277 269 263 94 95 91 95 95 100 103 104 120 128 148 161 93 97 109 145 111 141 138 131 148 156 167 203 200 192 192 224 228 136 157 198 215 176 238 244 248 261 234 225 235 229 264 261 240 227 243 240 243 243 242 101 103 103 105 107 110 112 116 125 135 151 160 102 107 118 149 119 151 150 149 161 166 177 197 196 197 200 213 218 150 168 197 210 181 230 237 247 265 256 256 262 262 267 267 258 251 238 259 264 259 255 157 161 161 160 161 162 163 164 166 169 179 ■ 187 160 161 164 178 166 194 203 215 217 230 265 268 273 273 283 285 286 202 234 272 285 248 288 286 290 289 1288 290 298 297 299 299 298 287 283 289 298 294 292 121 125 128 130 132 133 136 138 141 142 147 155 125 131 138 148 136 164 170 175 182 188 197 206 218 223 227 237 244 170 189 216 236 202 248 252 259 266 270 272 279 281 285 289 285 281 253 269 282 285 272 125 129 132 133 135 136 139 141 144 145 151 158 129 135 141 152 139 167 174 179 186 193 203 213 225 228 234 243 248 173 194 222 242 208 253 256 262 268 272 274 281 283 286 290 286 282 257 272 233 286 274 95 92 101 103 109 111 111 120 124 124 123 121 9S 107 118 122 111 119 110 112 113 115 137 164 173 161 152 142 152 114 122 166 149 138 152 157 163 185 202 221 235 2-15 1250 235 224 220 157 203 244 226 208 109 116 122 121 120 121 122 128 125 128 134 134 116 121 125 132 124 132 135 134 136 136 i41 147 153 151 145 147 147 133 138 150 147 142 150 151 153 159 162 .171 172 174 179 181 184 181 151 164 175 182 168 109 115 122 121 120 June 121 July 122 128 September 125 October 128 134 December 134 Quarters- First ■- 116 Second 121 Third... 125 Fourth 132 Year 123 1917— Months- 132 134 March 133 April 136 Mav 136 June 141 July 147 153 September 151 October 146 November 147 December 147 Quarters- First.. 133 Second 138 Third ^ Fourth 150 147 Year 142 1918— Months- January 150 February 151 March April 153 159 May 162 June 171 July 172 August 175 September 180 October 181 November 184 December 182 Quarters— Fii-st.... 151 Second 164 Third 176 Fourth 182 Year 168 1 Price control began during month. 440 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The clothing group. Hides and sidns and their products class. Con- trolled. (60) Uncon- trolled. (96) All. (156) Hatters' fur class and fur felt hats. All un controlled. (10) Hair, bristles, and feathers class. All un- controlled (22) Buttons class. All im- con trolled. 1913— Months- January... February . March April May June July August September October. . . November December. Quarters — First Second Third Fourth.... Year 1914— Months- January... February . March April May June July August September October... November December. Quarters- First Second Third Fourth.... Year— 1915— Months- January. . . February . March April May June July August September October... November December. Quarters- First Second Tliird Fourth.... Year 97 97 96 95 95 95 95 97 98 101 101 100 97 95 97 100 99 102 102 102 102 102 101 102 104 103 105 109 101 102 10? 105 103 99 99 100 100 100 100 99 99 99 100 100 100 100 101 100 100 101 101 101 101 101 102 100 100 101 102 101 99 99 100 100 100 97 99 100 100 101 101 101 101 101 101 101 102 102 102 105 101 101 101 103 101 112 104 107 113 104 107 112 104 107 105 104 104 107 104 105 108 104 106 112 105 107 115 105 109 115 105 109 116 105 109 117 106 110 118 106 110 112 104 107 107 104 105 114 105 108 117 106 110 105 105 105 105 105 105 104 104 103 103 101 «9 105 105 104 101 104 97 97 100 100 99 101 101 101 101 101 100 100 100 99 99 99 99 101 101 100 99 100 101 101 101 101 100 100 100 100 100 104 103 101 101 100 100 103 101 113 105 108 97 100 97 100 97 100 97 99 97 98 97 98 97 98 97 98 97 97 97 96 98 100 99 100 97 100 97 98 97 98 98 99 97 99 GO^^RNMEISTT CONTROL OVER PRICES. 441 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1916=100.] The clothing group. Hides and skins and their products class. Hatters' fur class and fur felt hats. Hair, bristles, and feathers class. Buttons class. • Con- trolled. (60) Uncon- trolled. (96) All. (156) All un- controlled. (10) All un- controlled. (22) All un- controlled. (20) 1916— Months- 117 122 125 130 134 137 135 135 134 143 165 189 122 134 135 166 139 189 184 185 182 186 182 180 176 168 168 175 ■ 177 186 1S3 175 173 179 170 160 153 150 1 166 168 166 104 165 166 166 165 101 163 165 166 164 113 113 115 116 118 119 123 122 123 125 132 136 114 lis 1?3 131 121 159 158 158 158 157 158 168 168 167 167 168 168 158 158 168 168. 163 176 175 175 175 177 178 183 183 183 183 185 185 175 177 183 184 180 114 116 118 120 123 125 127 127 127 131 143 154 116 123 127 143 127 169 167 167 166 167 166 172 171 • 165 168 170 171 168 166 170 170 168 174 170 168 168 173 175 177 177 177 177 178 178 171 » 172 177 178 174 101 101 103 103 105 105 106 106 110 111 115 118 101 104 107 114 107 121 125 130 130 131 131 132 132 135 136 1.55 1.59 125 131 133 150 135 164 179 177 183 189 192 218 219 221 221 221 220 173 188 219 221 200 99 100 100 100 100 100 99 100 99 101 103 104 100 100 99 103 100 106 106 107 107 106 109 110 112 114 113 112 115 106 108 112 113 110 121 121 125 131 131 131 137 146 145 147 147 146 122 131 143 147 136 96 95 S8 97 102 101 July 104 104 102 102 102 102 Quarters- First 96 100 Third 103 Fourth 102 Year 101 1917— Months- 107 108 107 April 107 109 109 July 707 101 107 107 107 109 Quarters- First 108 109 Third 107 Fourth 107 108 1S18— Months— January 123 123 125 April 125 125 127 July 128 128 Sentember 130 130 130 130 Quarters- First 124 126 Third 129 Fourth 130 127 1 Price control began during month. 442 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1913-1915. [Base: Average prices, July, 1913, to June, 1915=100.] 1913— Months- January . . . February.. March April May June July August September October. . . November. Decemlier . Quarters — First Second Third Fourth Year 1914— Months- January . . . February.. March April May June July August September October.. . November - December . Quarters- First Second Third Fourth Year 1915— Months- January . . . February.. March April May June July August September , October . . . November. December . Quarters- First Second Third Fourth Year The rubber, paper, and fibers group. Rubber and rubber products class. Paper class. Con- trolled. (10) 169 161 1-19 13S 127 123 113 111 104 92 93 96 160 129 109 94 123 95 100 99 104 102 91 92 115 100 96 104 125 98 99 104 108 102 126 98 100 98 93 97 99 95 92 94 107 127 108 96 95 109 102 LTneon- trolled. (24) 111 111 111 104 103 104 104 104 104 104 104 111 104 104 102 105 All. (34) Con- trolled. (1) 123 122 119 1 111 108 108 106 105 104 102 102 121 109 105 100 109 96 96 100 98 96 97 102 99 102 84 83 83 82 83 84 83 82 83 85 90 101 101 101 100 101 100 101 101 100 100 100 99 Uncon- trolled (40) 101 98 101 101 101 100 100 100 100 100 100 100 101 100 100 101 100 100 100 100 100 ' 100 101 100 100 100 100 100 100 100 100 99 99 99 100 99 99 100 100 100 100 104 102 102 102 102 100 100 100 99 100 100 101 103 100 100 100 101 99 100 99 100 99 99 99 100 99 100 99 100 99 100 99 100 99 100 99 100 99 101 99 100 99 100 99 100 99 100 99 100 All. (41) 101 99 101 101 101 100 100 101 100 100 100 100 100 100 100 100 100 100 100 100 100 99 100 100 103 102 102 100 99 100 102 100 100 100 100 99 99 100 100 100 100 99 99 100 100 99 100 100 Fibers and fiber products class. Con- trolled. (10) 116 116 116 113 108 105 105 109 111 108 103 99 116 108 109 103 109 05 94 95 94 92 106 106 98 86 80 94 94 103 87 94 82 86 89 93 97 100 Uncon- trolled. (31) 97 99 99 99 101 101 102 102 102 102 97 99 101 102 100 100 98 97 99 101 95 102 103 97 94 92 98 99 100 98 96 96 101 106 102 106 99 108 98 108 97 108 98 108 101 111 107 111 86 98 93 97 105 102 98 108 104 102 110 107 96 105 101 GOVERNMENT GONTROL OVER PRICES. 443 V-RXrv SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND PRICE faEOlION ^^^^^^^^^j^CONYROLLED PRICES 1916-1918. [Base: Average prices, July, 1913, to June, 1910=100.] The rubber, paper, and fibers group. Rubber and rubber products class. Paper class. Fibars and fiber products class. Con- troUed. 1 (10) Uncon- rolled. (24) All. (34) Con- ; Uncon- Tolled. trolled. (1) (40) . „ Con- Uncon- ^^^- trolled, trolled. (41) (10) (34) All. (44) 1916— Months— 146 127 140 131 116 101 92 92 93 97 104 119 138 116 92 107 113 121 125 132 127 129 118 104 103 105 100 95 S8 126 124 104 94 112 96 83 88 93 198 98 98 98 98 98 96 96 89 97 98 97 95 87 87 87 88 88 88 89 89 89 90 92 93 87 88 89 92 89 102 102 103 108 109 110 110 111 119 121 121 121 102 109 113 121 111 123 125 125 131 139 140 140 141 141 141 141 141 125 137 140 141 136 99 95 98 97 94 91 89 90 90 92 95 98 97 94 90 95 94 106 107 109 112 113 112 109 109 116 117 115 114 107 112 111 115 112 117 117 118 123 131 131 131 132 132 132 131 131 117 128 131 131 127 1 100 99 99 101 102 104 108 112 115 118 116 126 99 102 111 120 108 149 162 169 168 168 168 166 166 170 166 164 161 160 168 168 164 165 170 169 170 1 173 191 191 195 195 195 196 196 196 170 185 195 196 187 108 116 131 147 153 158 162 169 178 187 194 202 118 153 169 194 159 208 209 208 208 202 196 186 182 187 175 171 166 209 202 185 170 192 165 168 170 177 181 194 191 195 198 199 199 199 168 184 195 199 186 106 112 122 134 139 143 147 153 160 168 173 181 113 139 153 174 145 192 196 197 197 192 188 195 177 183 172 169 165 195 192 ISO i-39 184 166 168 170 ■ 176 184 193 192 194 197 199 199 198 168 184 195 198 1S7 121 128 129 126 119 118 117 119 118 121 127 141 127 121 118 129 124 151 155 155 163 194 209 215 217 219 222 235 258 164 188 217 238 199 266 270 1272 280 281 280 281 275 266 233 224 206 270 280 274 221 261 116 132 138 139 143 145 150 153 153 156 156 169 129 142 152 161 146 ISO 189 192 207 216 224 230 230 231 239 241 240 187 215 231 240 218 239 238 238 240 244 247 243 244 244 245 244 232 238 244 244 240 241 118 131 134 \pril 133 133 134 July 137 139 Septemlier October 139 142 144 December 158 Quai-ters- First , 128 133 Third 138 Fourth 118 Year 137 1917— Months- 168 175 177 April 189 206 June 218 July 224 225 September 226 October 232 November 239 December 248 Quarters- First 173 204 Thi^-d 225 FourtS. 239 210 1918— Months- 250 251 March 252 256 260 June... July 251 259 256 September October .- 253 240 236 December 221 Quarters- First 251 Second 259 Third 256 Year 249 1 Price control began during month. 444 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER, SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. (Base: Average prices, July, 1913, to Jime, 1914=100.] The metals group. Iron, steel, and their products class. Forroalloys, nonferrous, and rare metals class. Con- trolled. (36) Uncon- trolled. (52) All. (88) Con- trolled. (13) Uncon- trolled. (15) All. (28) 1913— Months- January 121 121 120 117 115 113 112 111 108 104 98 96 121 115 110 99 111 95 98 98 96 93 92 92 93 95 92 90 89 97 94 93 90 93 89 90 60 91 91 93 97 103 108 111 117 131 90 92 103 120 101 99 99 99 100 100 100 100 100 100 100 101 100 99 100 100 100 100 100 100 100 99 99 99 99 99 99 99 99 99 100 99 99 99 99 99 98 98 97 97 97 97 97 98 100 100 100 98 97 97 100 98 121 120 119 116 115 113 112 111 108 104 98 96 120 114 110 99 111 95 98 97 96 93 92 92 93 95 92 90 89 97 94 93 90 . 93 89 90 90 91 92 93 97 103 108 111 117 131 90 92 103 119 101 111 105 102 105 106 102 101 106 109 108 103 98 106 104 105 103 104 97 98 96 96 95 94 92 92 89 84 85 90 97 95 91 86 92 94 100 102 112 119 131 127 119 122 122 129 138 98 121 122 130 118 121 116 112 111 111 109 106 106 108 106 104 100 116 110 107 103 109 99 98 96 94 93 91 89 100 91 84 86 89 97 98 93 86 92 95 110 123 129 153 175 185 155 155 152 169 174 109 152 165 165 148 115 109 March . .... 107 April 108 May 108 June 105 July 103 August 106 September 109 October 107 November 103 December 99 Quarters- First 110 Second 107 Third 106 Fourth 103 Year 106 1914— Months- January 98 February 98 March 96 April 95 May 94 June 92 July 91 August 95 September 90 October 84 November 85 December 90 Quarters- First 97 94 Third 92 Fourth 86 Year 92 1915— Months- January 94 February 104 March 111 April 119 May 134 June 150 July 152 August 134 September 136 October 135 November 146 December 153 Quarters- First 103 Second 134 Third » 140 Foinrth .■ 145 Year lao GOVERNMENT CONTROL OVER PRICES. 445 PRICE SECTION WEIGHTED INDEX NUMBER, SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. |Base: Average prices, July, 1913, to June, 1914=100.] The metals group. Iron, steel, and their products class. Con- trolled. (36) Uncon- trolled. (52) All. Ferroalloys, nonferrous, and rare metals class. Con- trolled. (13) Uncon- trolled. (15) All. (28) 1916— Months- January. . , February . March April May June July August September . October November . December. . Quarters- First . . . Second. Third . . Fourth. Year 1917— Months- January. . , February . March April May June , July August September . October November . December. . Quarters — First Second. . . Third . . . . Fourth... Year. 1918— Months- January. . , February . March April May , June . July August September . October November . December. . Quarters — First Second. . . Third Fourth... Year . 139 143 161 165 162 163 165 169 171 176 203 222 146 163 200 169 237 241 257 276 297 348 374 349 1313 244 219 218 244 310 346 227 282 218 219 219 218 218 218 218 220 220 222 223 217 219 218 219 221 219 105 106 105 113 119 119 120 120 120 129 130 136 106 117 120 132 119 142 142 145 149 155 160 170 175 189 185 185 185 143 154 178 185 187 184 186 186 191 194 194 194 199 201 205 185 188 194 202 138 143 160 164 161 162 164 168 170 175 202 221 145 162 167 198 168 235 238 254 274 294 344 370 346 310 243 218 217 242 306 342 226 218 218 218 217 217 218 218 219 219 222 222 217 218 217 219 220 218 156 173 178 187 190 177 167 174 180 182 198 207 169 185 174 196 181 193 217 223 211 222 227 212 205 1 197 176 171 172 211 220 205 173 202 175 174 173 174 175 177 188 189 189 189 189 183 174 175 187 181 200 219 217 228 224 210 195 191 192 197 207 213 212 221 192 206 208 215 221 215 217 213 211 201 192 189 191 186 215 214 202 188 205 181 178 183 180 197 209 208 206 201 199 181 187 205 202 194 175 192 194 205 205 191 179 181 185 188 202 209 187 200 182 200 192 200 217 222 213 219 221 212 203 195 181 180 178 213 218 203 180 203 177 176 177, 177 181 183 192 197 197 196 194 190 177 180 195 193 187 1 Price control began during month. 446 HISTOKY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The Tuels group. Coal and coke class. I'etroleum and petroleum products class. ISIatches class. All con- trolled. (27) Con- trolled. (5) Uncon- trolled. (22) All. (27) All uncon- trolled. 0) 1913— Months— 104 101 100 99 99 100 100 101 101 102 102 101 102 99 101 101 101 100 100 100 98 98 98 98 99 99 99 99 99 100 98 99 99 99 99 99 98 95 95 95 95 95 96 96 97 99 99 95 95 98 97 87 93 96 95 % 96 98 102 104 104 105 105 92 95 101 104 OS 105 108 106 101 82 80 79 78 70 64 63 63 106 88 76 63 83 63 63 55 54 54 54 52 58 75 79 81 97 60 54 62 86 G5 104 100 100 107 100 100 105 103 104 103 102 99 105 106 104 101 104 100 99 99 97 95 93 89 87 85 83 83 83 99 95 87 83 91 81 80 77 77 77 77 76 77 79 86 95 103 79 77 77 95 C;2 99 102 103 104 103 103 103 103 103 103 103 101 102 103 103 102 102 101 102 101 98 92 89 86 84 81 78 77 77 102 93 84 77 89 76 75 71 70 70 70 69 71 78 84 91 101 74 70 73 92 77 99 99 99 99 99 99 July 99 99 99 100 100 100 Quarters- 99 99 Third 99 Fourtli 100 100 1914— Months- 101 101 101 101 101 101 July 101 101 101 101 101 101 Quarters- 101 101 Third . 101 101 Year 101 101 101 101 / April 105 105 105 July 105 105 106 106 106 lOG 101 105 105 Fourth . . 106 104 GOVERNMEIsrT CONTROL OVER PRICES. 447 raiCE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] The fuels group. >■ Coal and coke class. Petroleum and petroleum products class. Matches class. All con- trolled. (27) Con- trolled. (5) Uncon- trolled. (22) All. (27) AUnncon* trolled, (9) 191G— Months- January 102 100 99 103 103 103 103 104 106 110 123 122 100 103 104 118 106 127 127 124 177 189 189 180 1181 170 169 174 175 120 185 177 173 165 177 177 178 215 218 213 212 213 215 215 223 223 177 215 214 220 207 114 122 136 142 144 144 142 115 104 106 108 125 124 143 120 113 125 142 163 163 163 164 168 172 172 193 193 193 193 156 165 178 193 173 195 196 200 215 223 223 223 1223 ,227 227 227 227 197 220 224 227 217 111 115 120 120 123 123 123 123 118 117 118 119 115 123 121 118 119 126 132 133 135 136 137 139 139 141 142 143 148 130 136 140 145 138 155 157 159 161 167 169 168 168 169 169 166 166 157 166 168 107 104 112 117 125 127 130 130 128 120 114 114 115 121 118 129 121 117 121 131 141 142 143 144 146 149 149 157 157 158 161 138 145 151 159 148 167 169 171 177 183 185 ,184 184 186 186 184 184 169 182 185 185 ISO 121 February 121 March. 121 121 May 121 .Tnnp 122 July 123 August 124 124 October 127 137 December 148 Quarters- First 121 Second 121 Third 124 Fourth 137 Year 126 1917— Months- January 163 February 164 March 164 April 164 May 164 June 164 July 165 165 September 165 1C6 November 167 168 First 164 165 Third 165 167 Year 165 1918— Months- January 1C8 February 1C8 March 169 169 May 169 June 170 July 171 August 172 173 October 173 November. .-. 173 December 174 Quarters- First 168 Second 1C9 172 Fourth. 174 Year 171 1 Price control began during month. 44-8 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1913-1915. [Base: Average prices July, 1913 to June, 1914=100.] 1913— Months- January February.. March April May June July August September October. . . November . December. Quarters- First Second Third Fourth Year 1914— Months- January... February . March April May June July August September October. . . November. December. Quarters — First Second Third Fourth Year 1915— Months- January... February. March April May June . . July August September October... November December. Quarters — First Second Third Fourth.... Year The building materials group. Clay products class. Con- trolled. (3) 100 100 100 100 101 101 101 101 100 100 100 100 100 101 100 100 101 100 100 99 99 99 100 99 99 99 96 96 97 87 87 97 97 97 97 97 100 100 Uncon- trolled. (13) 97 97 98 100 100 100 100 100 100 100 97 100 100 99 100 100 100 100 100 101 101 102 102 102 101 101 100 100 102 101 101 101 101 101 102 102 102 102 102 102 102 101 103 101 102 102 102 102 All. (10) 99 100 100 100 100 100 100 100 99 99 100 100 99 100 100 100 100 100 100 100 101 101 101 101 100 100 100 100 101 100 100 99 99 100 100 100 100 101 101 100 100 100 102 100 100 101 101 100 Sand and gravel class. Con- trolled. (8) 99 98 98 99 98 99 98 99 99 99 100 98 100 101 102 101 101 100 100 99 100 99 100 101 101 101 99 100 100 105 108 101 103 102 100 100 96 97 99 100 105 105 102 97 102 Uncon- trolled. (1) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 All. (9) 99 98 99 99 99 100 99 100 101 102 101 101 100 100 99 100 99 100 101 101 101 99 ;oo 100 105 108 101 103 102 100 100 96 97 99 100 105 105 102 98 102 Quarry prod- ucts class. All uncon- trolled. (15) 98 98 100 100 100 100 101 101 101 101 101 101 100 101 101 100 101 101 101 98 101 Cement class. Con- Uncon- trolled. trolled. (6) (1) 91 100 94 100 99 100 103 100 104 100 103 100 104 100 104 100 105 100 105 100 102 100 100 100 95 100 103 100 104 100 102 100 101 100 96 100 95 100 99 100 99 100 97 100 97 100 97 100 99 100 99 100 98 100 96 100 87 100 97 100 97 100 98 100 94 100 96 100 85 100 88 100 86 100 85 100 86 100 87 100 91 100 92 100 93 100 94 100 97 100 96 100 86 100 86 100 92 100 96 100 90 100 GOVERlsrMEIsrT CONTEOL OVER PRICES. 449 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1916-1918. [Base: Average prices July, 1913 to June, 1916=100.] The building materials group. Quarry Clay products class. Sand and gravel class. prod- ucts Cement class. class. Con- Uncon- All. Con- Uncon- All. All Con- Uncon- All. trolled. trolled. trolled. trolled. uncon- trolled. trolled. trolled. (3) (13) (16) (8) (1) (9) (15) (6) (1) (7) 1916— Months- January 107 107 107 110 100 109 99 101 120 101 February . . . 109 107 108 110 100 109 103 104 120 104 March 112 105 107 109 100 109 103 110 120 110 April 112 105 107 109 100 109 105 112 120 112 May 113 109 110 108 100 108 105 115 120 115 June 114 109 110 110 100 110 108 115 120 115 July 117 110 112 110 100 110 108 113 120 113 August 118 114 115 110 100 109 108 114 120 114 September. . 119 114 115 110 100 109 108 114 120 114 October 123 116 118 109 100 108 110 115 120 115 November. . 125 118 120 112 100 111 110 117 120 117 December. . . 127 125 126 115 100 114 113 120 120 120 Quarters- First 109 106 107 110 100 109 102 105 120 105 Second 113 107 109 109 100 109 106 114 120 114 Third 118 113 114 110 100 109 108 114 120 114 Fourth 125 120 121 112 100 111 111 117 120 117 Year 117 112 113 110 100 110 107 112 120 112 1917— Months- January 130 133 132 126 121 126 120 125 130 125 February . . . 134 136 136 126 121 126 120 132 130 132 March 136 141 140 117 121 117 120 138 130 138 April 138 146 143 123 121 123 120 146 130 146 May 142 152 149 128 121 127 129 147 130 147 June 146 158 154 128 121 128 133 151 130 151 July 150 159 157 131 121 131 134 151 130 151 August 151 163 159 134 121 134 134 151 130 151 September.. 152 163 160 133 121 132 134 151 130 151 October 152 163 160 131 121 131 143 152 130 152 November. . 154 163 160 155 121 153 144 152 130 152 December... 155 164 161 159 121 157 144 1149 130 149 Quarters- First 134 137 136 123 121 123 120 132 130 132 Second 142 152 149 126 121 126 127 148 130 148 Third 151 162 159 133 121 132 134 151 130 151 Fourth 153 163 160 148 121 146 144 151 130 151 Year 145 153 151 132 121 132 131 146 130 146 1918— Months- January 156 174 169 183 136 181 148 151 170 151 February . . . 163 174 171 181 136 178 148 152 170 153 March 163 179 174 173 136 171 . 148 167 170 167 April 164 184 178 172 136 170 161 167 170 167 May 172 195 188 177 136 175 166 172 170 172 June 177 201 194 185 136 183 172 172 170 172 July 1188 201 197 1182 136 179 172 171 170 171 August 197 206 203 185 136 183 173 174 170 174 September.. 203 211 208 184 136 181 173 173 170 173 October. . .'. . 201 211 208 196 136 192 173 172 170 172 November.,. 201 210 209 199 136 195 192 176 170 176 December. . . 205 200 201 197 136 194 192 173 170 173 Quarters- First 161 176 171 179 136 177 148 157 170 157 Second 171 193 187 178 136 176 167 171 170 171 Third 196 206 203 184 136 181 173 172 170 172 Fourth 203 207 206 197 136 194 186 174 170 174 Year 183 196 192 184 136 182 168 169 170 169 125547°— 20- -29 1 Price control began during month. 450 HISTORY OF PEICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The building materials group. Glass class. Lumber class. Paints and varnishes class. All uncon- trolled. (10) Con- troUed. (24) Uncon- trolled. (38) All. (62) Con- trolled. (1) Uncon- troUed. (29) All. (30) 1913— Months- January 102 102 102 102 102 102 102 102 102 101 101 101 102 102 102 101 102 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 99 91 90 90 90 90 90 90 90 90 90 95 91 90 90 90 91 90 115 115 115 115 115 115 105 105 105 99 99 99 115 115 105 99 108 98 98 98 98 98 98 97 97 97 90 90 90 98 98 97 90 96 90 90 90 91 91 91 92 92 92 109 109 109 90 91 92 109 96 103 103 103 103 103 103 102 102 102 101 101 101 103 103 102 101 102 99 99 99 98 98 98 96 96 96 93 93 93 99 98 96 93 97 93 93 93 91 91 91 90 90 90 95 95 95 93 91 90 95 92 104 104 104 99 99 99 111 111 104 99 105 99 99 99 98 98 98 96 96 96 91 91 91 99 98 96 91 96 91 91 91 91 91 91 91 91 91 104 104 104 91 91 91 104 94 90 88 92 92 94 94 94 102 102 102 100 100 90 94 99 101 96 100 100 100 100 100 98 98 98 106 102 102 83 100 100 101 95 99 82 94 98 100 98 100 96 94 90 96 110 118 92 100 94 108 98 99 100 100 100 99 100 100 100 102 101 100 100 100 100 101 100 100 100 100 99 100 99 99 100 101 102 100 99 99 100 99 101 99 100 99 100 100 103 104 105 120 117 116 117 116 119 100 104 118 117 110 99 February 99 March 100 April 100 May 99 June 99 July 100 August 100 September 102 October 101 November 100 December 100 Quarters- First 99 Second 99 Third 101 Fourth 100 Year 100 1914— Months- January February 100 100 March 99 April 100 May 99 June 99 July 99 August 101 September 102 October 100 November 99 December 98 Quarters- First 100 Second 99 Third 101 Fourth 99 Year 100 1915— Months- January 98 February 100 March 100 April May 103 103 June 105 July 118 August 116 September 115 October 116 November 115 December 119 Quarters- First. . 99 Second 104 Third 116 Fourth 117 Year 109 GOVERNMENT CONTROL OVER PRICES. 451 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.1 The building materials group. Glass class. All uncon- trolled. (10) Lumber class. Con- trolled. (24) Uncon- trolled. (38) All. (62) Paints and varnishes class. Con- trolled. (1) Uncon- trolled. (29) All. (30) 1916— Months- January . . . February . . March April May June July August September October. . . November December. Quarters — First Second Third Fourth Year 1917— Months-- January . . . February . . March April May June July August September October. . . November . December. Quarters- First Second Third Fourth Year 1918— Months- January . . . February.. March April May June July August September October. . . November. December. Quarters — First Second Third Fourth.... Year 105 107 107 111 111 112 112 112 113 114 114 114 106 112 113 114 111 138 138 138 139 139 144 145 145 145 145 155 155 138 141 145 152 144 161 161 168 168 169 170 171 171 178 178 178 179 163 169 173 178 117 117 117 113 113 113 109 109 109 119 119 119 117 113 109 119 115 128 128 128 164 164 164 171 171 171 171 >171 171 128 164 171 171 159 179 179 179 190 190 190 188 188 184 184 184 179 190 188 184 185 99 99 99 99 99 99 100 100 100 103 103 103 99 99 100 103 100 111 111 111 125 125 125 131 131 131 137 137 137 111 125 131 137 125 142 142 142 152 152 152 153 153 153 154 154 154 142 152 153 154 150 111 111 111 108 108 108 106 106 106 113 113 113 111 108 106 113 109 122 122 122 150 150 150 156 156 156 159 159 159 122 150 156 159 146 166 166 166 176 176 176 176 176 176 173 173 173 166 176 176 173 172 121 134 139 153 146 134 121 118 121 146 165 181 132 144 120 163 140 188 188 204 213 228 236 224 200 226 242 1260 271 194 225 217 258 223 276 287 294 307 307 287 283 287 283 287 278 271 299 284 278 287 124 132 137 154 155 152 146 143 144 142 146 150 131 154 144 146 144 154 156 161 165 171 174 180 181 183 176 172 175 157 170 181 174 171 176 176 190 205 207 210 222 228 232 231 227 226 181 207 228 228 211 124 132 137 154 154 152 145 142 142 142 147 151 131 153 143 147 156 157 163 168 174 177 182 182 185 179 177 180 159 173 183 178 173 181 181 195 210 211 214 225 231 235 234 229 228 186 212 230 230 1 Price control began during month. 452 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The chemicals group. Mineral acids class. Heavy chemicals class. Miscellaneous inorganic chemicals class. Ferti- lizers class. Con- trolled. Un- con- trolled. All. Con- trolled. Un- con- trolled. All. Con- trolled. Un- con- trolled. All. All con- trolled. (6) (2) (8) (3) (6) (9) (2) (18) (20) (25) 1913— Months- January 102 100 102 103 97 101 104 102 102 103 February . . . 102 100 102 103 97 101 104 102 102 103 Maich 102 100 102 105 101 104 103 101 101 103 April 102 100 102 105 99 103 102 101 101 104 May 102 100 102 102 101 101 102 101 101 104 June 102 100 102 102 98 100 101 101 101 103 July 102 100 102 102 102 102 101 101 101 103 August 102 100 102 102 102 102 101 101 101 100 September . . 101 100 101 94 102 97 100 101 101 99 October 101 100 101 100 100 100 100 101 101 99 November. - 100 100 100 100 102 101 100 100 100 99 December. . . 99 100 99 100 101- 100 100 100 100 100 Quarters- First 102 100 102 104 98 102 104 102 102 103 Second 102 100 102 103 99 101 102 101 101 104 Third 102 100 101 99 102 100 101 101 101 101 Fourth 100 100 100 100 101 101 100 100 100 100 Year 102 100 104 102 100 101 102 101 • 101 102 1914— Months- January 99 100 99 100 101 101 99 100 100 100 February. .. 99 100 99 100 100 100 100 100 100 100 March 99 100 100 100 100 100 100 100 100 101 April 99 100 99 100 96 99 100 100 100 100 May 99 100 100 100 95 99 100 100 100 100 June 99 100 99 100 97 99 100 98 99 99 July 99 100 99 100 101 100 100 98 99 98 August 98 100 98 100 99 100 99 98 98 98 September . . 99 100 99 100 99 100 104 123 120 99 October 98 100 98 101 98 100 104 117 115 98 November.. 97 100 97 101 99 100 103 114 112 96 December. . . 97 100 97 101 96 99 102 117 115 96 Quarters- First 99 100 99 100 100 100 100 100 100 100 Second 99 100 99 100 96 99 100 99 99 100 Third 98 100 99 100 100 100 101 107 106 99 Fourth 97 100 97 101 98 100 103 116 114 97 Year 98 100 99 100 96 -100 101 105 105 99 1915— Months- January 97 100 97 101 96 99 102 117 115 95 February . . . 97 100 97 99 96 98 102 122 119 98 March 97 100 97 99 95 98 102 121 118 99 April. . . : 99 100 99 105 98 103 102 127 123 102 May 100 100 100 112 96 107 102 129 125 103 June 100 100 100 112 95 107 102 132 127 101 July 123 133 123 138 103 127 102 146 139 104 August 123 133 124 169 102 148 101 152 144 105 September . . 141 152 141 171 102 149 102 151 143 109 October 142 .152 142 202 102 170 101 156 147 116 November. . 145 152 145 219 109 183 101 163 153 134 December. . . 146 152 146 316 111 250 101 178 165 142 Quarters- First 97 100 97 100 96 99 102 119 116 97 Second 100 100 100 110 96 106 102 129 125 102 Third 129 139 129 100 102 141 101 149 142 106 Fourth 144 152 144 245 107 201 101 165 155 130 Year 117 123 118 154 101 137 102 141 134 109 GOVEENMENT CONTKOL OVER PRICES. 453 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] The chemicals group. Mineral acids class. Con- trolled, (6) Un- con- trolled. (2) All. (8) Heavy chemicals class. Con- trolled. (3) Un- con- trolled. (6) All. Miscellaneous taorganic chemicals class. Con- trolled. (2) Un- con- trolled. (18) All. (20) Ferti- lizers class. All con- trolled. (25) 1916— Months- January. . . February . March April May June July August September October... November December. Quarters- First Second Third Foiu-th.... Year 1917— Months- January. . . February . March...'.. April May June July August September October... November. December. Quarters- First Second Third Fourth.... Year 1918— Months- January. . . February . March April May June July August September October.., November. December. Quarters — First Second Third Fourth.... Year 183 194 197 196 181 180 153 139 137 133 132 133 192 186 143 133 163 133 134 144 149 155 148 152 167 170 171 176 186 137 151 163 177 1 181 191 197 202 184 174 154 154 154 142 142 142 190 187 154 142 208 208 208 245 208 170 170 152 152 152 208 220 183 152 137 137 137 138 120 120 138 138 138 148 151 158 137 126 138 152 162 158 158 232 232 195 176 176 162 162 162 162 159 219 171 162 178 183 195 197 196 182 182 154 140 138 134 133 133 192 187 144 133 164 133 134 144 148 154 147 152 166 169 170 175 185 137 150 162 177 180 190 196 203 185 175 155 155 155 143 143 143 189 155 143 169 350 507 498 443 351 367 327 310 330 359 343 371 451 387 322 358 379 351 340 337 352 384 373 381 394 519 471 403 410 342 370 431 427 393 246 263 346 '323 299 293 245 254 301 331 327 278 318 305 267 312 115 117 117 121 120 122 125 123 121 123 120 126 116 121 123 122 166 164 168 "179 185 190 193 196 192 203 215 214 166 185 194 211 189 225 217 217 225 230 226 224 235 227 243 252 239 220 227 229 245 274 381 375 339 276 262 249 262 283 271 292 343 301 258 282 296 291 283 283 296 320 314 321 330 414 384 342 347 286 310 355 358 327 239 316 304 292 276 271 238 248 277 303 303 266 287 280 255 290 103 104 106 108 108 107 107 107 107 106 107 110 104 108 107 108 107 112 117 122 133 135 135 135 151 154 149 1 151 150 117 134 147 150 137 132 149 149 132 133 133 133 133 133 132 132 132 144 133 133 132 218 251 256 281 275 261 243 226 225 232 221 228 242 273 231 227 243 231 212 144 237 218 145 229 211 148 242 224 151 247 229 156 248 230 166 254 235 173 252 236 187 256 239 189 254 237 198 233. 220 193 234 220 202 232 213 146 246 228 158 254 237 183 240 226 198 243 252 235 236 258 261 256 240 240 235 254 251 230 241 258 238 245 199 227 231 253 248 236 221 207 206 211 202 219 246 211 207 226 233 221 222 237 240 236 223 223 218 234 232 214 225 238 221 227 174 179 179 177 159 156 141 135 134 136 138 141 177 164 137 138 1203 215 215 218 206 203 195 197 190 187 187 184 211 209 194 1S6 1 Price control began during month. 454 HISTORY OF PRICES DURING THE WAR. PRICE SECTION "WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base: Average prices July, 1913, to June, 1914=100.] The chemicals group. Essen- tial oils, flavor- ing and Wood distillation prod- Natural dyestuffs and Soaps ana giycenn ucts and naval stores tannine chemicals Class. per- fum- ery mate- rials class. class. class. Con- Uncon- AH. All un- Con- Uncon- All. Con- Uncon- All. trolled. trolled. con- trolled. trolled. trolled. trolled. trolled. (21) (9) (30) (20) (5) (4) (9) (1) (18) (19) 1913— Months- January 96 99 98 90 121 118 119 100 102 102 February . . . 99 99 99 96 121 129 126 100 102 102 March 100 99 99 93 121 133 129 100 102 102 April 101 99 100 94 119 118 118 100 103 103 May 100 99 99 99 99 99 97 102 119 118 105 105 109 110 100 100 103 102 103 June 101 July 99 102 99 100 99 101 100 107 118 116 101 93 107 100 100 100 102 102 101 August 101 September . . 102 100 101 104 116 98 104 100 102 101 October 102 100 101 105 108 92 97 100 101 100 November. . 101 101 101 101 103 98 100 100 99 99 December. . . 101 101 101 99 103 97 99 100 99 99 Quarters- First 98 99 99 93 121 127 125 100 102 102 Second 100 99 99 97 110 109 112 100 103 102 Third 101 100 100 106 117 98 104 100 102 101 Fourth 101 101 101 101 104 96 99 100 100 100 Year 100 100 100 99 115 107 110 100 102 101 1914-Months— January 100 100 100 97 95 103 100 100 99 99 February. . . 100 100 100 97 95 109 104 100 99 99 March 99 100 100 97 87 102 97 100 99 99 April 99 100 99 98 87 100 96 100 99 99 May 99 97 100 100 99 99 96 95 87 87 102 104 97 99 100 100 99 99 99 June 99 July 98 98 100 100 99 99 98 94 87 87 104 103 99 97 100 100 99 99 99 August 99 September . . 114 100 104 102 88 100 96 100 124 119 October 106 99 101 99 89 99 96 100 125 119 November. . 99 99 99 92 93 98 97 100 129 122 December. . . 98 100 99 89 102 96 98 100 127 121 Quarters- First 100 100 100 97 92 105 101 100 99 99 Second 98 100 99 96 87 103 97 100 99 69 Tliird 103 100 101 98 87 103 98 100 107 106 Fourth 101 100 101 93 95 • 98 97 100 127 121 Year 100 100 100 96 90 102 98 100 108 106 1915— Months- January 98 100 99 88 110 93 98 100 122 117 February . . . 102 100 100 76 113 90 97 100 124 118 March...' 102 100 100 77 113 90 98 100 125 119 April 102 100 100 76 128 94 105 100 136 128 May 102 99 100 100 100 99 75 75 128 138 100 90 109 105 100 100 138 148 129 June 136 July 97 98 100 100 99 99 76 72 154 160 94 91 113 113 100 153 152 170 140 August 166 September . . .109 100 102 71 173 87 115 211 182 189 October 125 100 107 72 173 96 121 252 195 208 November . - 1.52 100 115 77 181 128 145 252 209 220 December. . . 158 100 117 80 198 144 161 252 226 233 Quarters- First 101 100 100 80 112 91 98 100 124 118 Second 101 100 100 75 131 94 106 100 140 131 Third 102 100 100 73 162 90 114 155 168 165 Fourth 145 100 113 76 184 122 143 252 210 220 Year 112 100 103 76 147 99 115 152 161 159 GOVERNMENT CONTROL, OVER PRICES. 455 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to June, 1914=100.] 1916— Months- January... February . March April May June July August September October... November December. Quarters- First Second Third Fourth.... Year 1917— Months- January. . . February . March April May June July August September October... November December. Quarters — First Second Third Fourth.... Year 1918— Months- January. . . February. March April May June July August September October... November December. Quarters- First Second Third Fourth.... Year The chemicals group. Soaps and glycerin class. Con- Uncon- trolled. trolled. (21) (9) 154 100 161 100 171 100 187 101 189 101 177 101 164 101 142 101 148 101 166 104 180 108 190 107 162 100 185 101 151 101 179 106 169 102 187 107 193 107 196 107 208 110 238 129 260 144 253 144 238 138 260 136 265 136 1267 140 274 140 192 107 235 127 250 139 269 139 236 128 276 142 277 143 275 147 273 149 269 153 269 155 269 158 274 158 275 160 279 168 275 165 219 172 276 144 271 152 273 159 257 168 269 • 156 All. (30) 116 118 121 126 126 123 119 113 115 122 129 131 118 125 116 127 122 130 132 133 138 161 177 175 167 172. 174 177 179 132 159 171 176 160 181 182 185 185 187 188 190 192 193 201 197 186 182 187 192 194 Essen- tial oils, flavor- ing and per- fum- ery mate- rials class. All un- con- trolled. (20) 83 82 83 81 83 91 91 92 95 105 104 101 82 85 93 104 102 100 100 101 105 104 103 105 112 121 124 124 101 103 107 123 108 Wood distillation prod- ucts and naval stores class. Con- LTncon- trolled. troUed. (5) (4) 228 151 260 156 276 148 275 146 264 117 264 128 263 129 263 145 207 140 170 136 173 139 185 144 254 151 268 131 244 138 176 140 236 140 186 151 193 145 193 142 221 137 226 141 226 135 245 126 247 126 253 139 275 154 282 156 1291 146 191 146 224 137 249 130 282 151 237 141 284 143 293 146 284 138 221 131 .221 141 200 182 201 212 200 212 200 241 200 259 200 266 200 255 288 142 214 152 200 221 200 260 226 194 All. (9) 176 190 189 188 165 173 173 183 162 147 150 158 185 175 173 152 162 161 158 164 168 164 165 166 176 193 197 193 160 166 169 194 189 194 186 161 168 188 208 208 227 240 244 237 189 172 215 241 Natural dyestuffs and tanning chemicals class. Con- Uncon- trolled. trolled. (1) (18) 274 280 295 344 295 360 295 361 295 351 295 350 295 292 ■ 295 259 295 252 295 232 295 228 295 220 288 328 , 295 355 295 268 295 227 294 294 295 221 295 220 295 223 295 222 295 220 295 213 295 210 295 211 295 210 211 217 211 206 211 202 295 222 295 218 295 210 211 209 274 215 189 204 189 208 189 215 252 219 1 252 233 295 236 201 250 201 252 201 253 201 251 201 254 201 255 189 209 266 229 201 252 201 254 213 236 All. (19) 278 333 345 346 338 337 293 268 262 247 244 238 319 341 274 243 294 238 238 240 239 238 232 230 231 230 215 207 204 239 236 230 209 229 201 203 209 227 238 250 238 240 240 239 241 242 204 238 240 241 231 I Price control began during month. 456 HISTORY OF PRICES DURING THE WAR. PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1913-1915. [Base Average prices July, 1913, to July, 1914=100.] The chemicals group. Coal tar crudes, in- termediates, and dyes class. Drugs and phar- ma- ceuti- cals class. Pro- prie- tary prep- ara- tions class. Explosives class. Miscellaneous or- ganic chemicals class. Con- trolled. (1) Un- con- trolled. (18) All. (19) All im- con- trolled. (27) All im- con- troUed. (23) Con- trolled. (9) Un- con- trolled. (10) All. (19) Con- trolled. (2) Un- con- trolled. (12) All. (14) 1913— Months- January February March 83 83 83 100 100 100 100 100 lOO 100 100 100 83 100 100 100 96 100 100 100 100 100 100 117 117 117 117 117 117 100 100 117 117 109 117 117 117 833 833 833 1167 1167 1167 1418 1418 1500 117 833 1167 1445 889 112 112 111 114 113 112 112 107 105 103 103 102 112 113 108 103 109 95 94 95 95 95 94 101 106 195 225 267 233 95 95 134 242 141 255 411 448 554 435 572 628 638 648 663 666 680 371 520 638 667 549 109 109 108 113 112 111 111 106 105 103 103 102 109 112 107 103 108 95 95 95 95 95 95 103 107 187 215 252 222 95 95 132 230 138 242 383 417 581 473 596 679 688 697 735 737 758 347 550 688 741 582 103 103 100 100 100 99 98 99 101 100 99 99 102 100 99 99 100 100 102 101 100 100 101 101 106 136 134 124 118 101 100 114 125 110 117 116 117 122 126 132 132 138 147 152 174 178 116 127 139 168 137 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 101 101 101 101 100 100 100 100 100 100 100 101 101 100 100 101 103 102 104 103 103 103 103 103 103 100 102 102 103 103 103 101 102 98 98 99 99 97 98 95 100 98 96 96 97 98 98 98 96 98 97 98 97 107 109 111 143 142 158 175 181 177 97 109 148 177 133 104 104 104 104 104 104 104 103 103 99 102 103 104 104 103 101 103 98 97 99 99 96 98 94 98 102 101 106 104 98 98 98 104 99 188 187 186 189 188 200 200 198 209 212 217 219 187 193 202 216 199 104 103 104 103 103 104 103 103 103 98 102 102 104 103 103 101 103 98 97 99 99 96 98 94 98 100 99 103 102 98 98 98 102 99 161 161 160 165 165 174 183 181 194 201 207 206 161 108 186 205 180 107 103 103 103 103 101 101 101 101 101 99 99 104 102 101 100 102 99 99 99 99 99 99 99 142 142 137 142 142 99 99 128 140 117 137 125 125 142 148 154 154 148 155 152 166 166 129 148 152 162 148 106 105 105 102 101 101 100 100 101 101 99 98 106 101 100 99 102 99 101 100 100 100 100 98 98 101 103 102 102 100 100 99 102 100 102 100 100 100 100 104 106 108 109 109 117 119 100 101 107 115 106 106 105 105 April 102 May 101 June 101 July 100 August 100 September October November December Quarters- First 101 101 99 98 106 Second 102 Third ■... 100 Fourth 99 Year 102 1914— Months- January February Msrch 99 101 100 100 May 100 June 100 July 98 August 99 September October November December Quarters- First 102 104 103 103 100 Second 100 Third 100 Fourth 103 Year 101 1915— Months- January February March 102 101 100 April 101 May 101 .Tune 105 July 108 August 108 September October November December Quarters- First 110 110 119 120 101 Second 103 Third 108 Fourth 116 Year 107 GOVERNMENT CONTROL OVER PRICES. 457 PRICE SECTION WEIGHTED INDEX NUMBER SEPARATED INTO CONTROLLED AND UNCONTROLLED PRICES, 1916-1918. [Base: Average prices July, 1913, to July, 1914=100.] 1916— Months- January . . February. March April May June July August September. October November. December . Quarters- First Second . . Third.... Fourth. . 1917— Months- January . . February . March April May June July August September. October November. December. . Quarters- First.... Second . Third.. Fourth. Year 1918— Months- January . . February. March April May June July August September. October...: November. December. , Quarters- First... Second . Third... Fourth. Year. The chemicals group. Coal tar crudes, in- termediates, and dyes class. Con- trolled. (1) Un- con- trolled. (18) 1500 1500 1500 1500 1500 1167 1167 1167 667 667 500 500 1500 1389 1000 556 Year 1111 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 652 643 560 560 531 465 306 377 363 363 358 654 551 416 361 495 350 344 329 307 299 301 285 281 280 271 286 297 341 303 282 285 All. (19) 500 303 500 292 1500 291 500 295 500 288 500 276 500 276 500 258 500 255 500 257 - 500 250 500 251 83 244 500 293 500 280. 500 257 360 249 464 270 747 732 724 649 649 591 532 478 405 392 376 371 734 630 471 379 553 364 359 345 325 318 320 305 302 300 293 307 316 356 321 302 305 321 312 311 314 308 297 297 281 278 280 274 275 229 312 301 280 259 Drugs and phar- ma- ceuti- cals class. All un- con- trolled (27) Allun con- trolled. (23) 194 209 216 226 224 209 198 191 192 189 197 196 203 217 195 194 202 192 197 214 222 227 224 223 221 224 230 232 234 Pro- prie- tary prep- ara- tions class. 100 100 102 102 102 102 102 102 1«2 102 102 102 101 102 102 102 102 102 103 103 103 104 105 105 108 110 110 110 Explosives class. Con- trolled, (9) 202 102 225 104 223 106 232 110 220 106 235 112 238 112 240 112 239 112 241 112 243 112 246 113 253 114 2.59 114 274 116 319 117 288 117 238 112 241 112 251 114 294 117 256 114 Un- con- trolled. (10) 179 186 188 190 188 184 171 159 150 151 147 149 184 187 160 149 170 147 147 152 158 165 163 169 169 172 173 1 175 178 166 174 179 183 184 183 179 167 166 166 162 163 141 179 182 166 155 170 211 212 208 201 188 189 186 182 177 171 169 .156 210 192 182 165 140 132 130 128 136 137 133 134 136 136 140 140 149 134 165 134 170 134 175 138 135 138 138 138 135 136 136 135 137 137 136 137 135 138 136 136 136 136 All. (19) Con- trolled. (2) 202 204 202 197 188 187 182 175 169 165 162 154 203 191 175 160 142 137 136 137 145 144 144 144 147 147 151 151 138 143 145 149 149 150 151 149 150 149 145 146 145 144 144 137 150 145 145 142 Miscellaneous or- ganic chemicals class. Un- con- trolled (12) 166 160 160 171 171 199 191 181 175 158 158 160 162 180 182 159 171 175 175 183 184 201 211 211 208 201 201 206 210 177 199 207 206 197 217 1219 217 217 217 210 198 201 280 280 280 280 218 214 226 280 123 128 132 133 134 134 133 123 123 127 132 136 128 134 127 132 130 136 135 135 142 151 152 197 205 210 232 216 212 135 148 204 220 177 202 199 199 198 198 198 199 199 199 198 200 195 200 198 199 198 All. (14) 124 129 133 134 135 135 135 125 125 128 133 137 129 135 128 133 137 136 137 143 153 153 197 205 210 232 216 212 136 149 204 220 177 202 200 200 199 199 198 199 199 3D1 200 202 197 200 198 200 200 200 1 Price control began during month. 458 HISTORY OF PRICES DURING THE WAR. There follows a separation of the 1,366 commodities carried in the Price Section Index Number into those controlled and uncontrolled. The separation indicated forms the basis for all comparisons in this section, for the chain index of controlled and uncontrolled prices and for frequent illustrations in the inquiry. The individual com- modity series counted as controlled are' listed here under their proper classes, as numbered in the "History of Prices During the War," when one or more series of a class came under control. This method was also used to list the uncontrolled series. The class index numbers for the controlled and uncontrolled series run parallel The first of the 50 classes in the Price Section Index Number, for example, is known as "8. Feeds and Forage Class" and the last as "57. Miscellaneous Inorganic Chemical Class." A full count of the series in one of these classes under the controlled list, and of those in the same class under the uncontrolled list, makes up the full number of series carried by the Price Section for that class. GOVERlsrMElSrT CONTROL OVER PRICES. 459 (2) THE SERIES OF THE PRICE SECTION INDEX NUMBER CONSIDERED UNCONTROLLED. Food Group. 10. Com and corn products class (3 series) : Alcohol, grain, 190 proof. Beer, western, light or dark. Whisky, Bourbon, 4 years in bond, 100 proof. 11. Oats, buckwheat, and rice class (1 series): Puffed rice. 12. Barley, hops, rye, and their products class (4 series): Beer, light or dark. Hops, Pacific coast. Hops, prime to choice. New York State. Whisky, rye, straight, 4 years in bond, 100 proof. 13. Sugar and related products class (1 series): Honey, clover, comb, lower grade. 15. Edible vegetable oils class (1 series): Cocoa beans, in bags. 16. Fruits, nuts, and wine class (7 series): Almonds, ne plus ultra, unshelled. Apricots, canned, X standard, 2^ California. Claret, medium grade, California. Nuts, Brazil, medium, unshelled. Peaches, canned, X standard, 2^ California. Pineapple, canned X standard, 2^ Hawaiian, sliced Walnuts, No. 1 soft shelled. 17. Spices and condiments class (10 series): Cassia, China rolls. Cloves, Zanzibar. Ginger, Cochin, A. B. C. Mace, Singapore. Nutmegs, 105s to llOa. Pepper — Black, Lampong. Black, Singapore. Red, Japan. Salt- American, medium. Domestic. 18. Tea, coffee, and cocoa class (11 series): Cocoa — Arriba. Bahia. Trinidad. Tea- Ceylon, Pekoe. Country, green, gunpowder. Country, green, imperial fiirsts. Darzeeling, fancy orange. Formosa, good. Goochow, good. Pingsuey, gunpowder, firsts. Pingsuey, imperial firsts. 460 HISTORY OF PRICES DURING THE WAR. 19. Tobacco and tobacco products class (15 series): Broadleaf, Connecticut, second. Broadleaf, Pennsylvania, B's. Burley, good leaf, bright red. Cigars, little, under 3 pounds. Cigars, little, over 3 pounds. Cut plug. Habana Vuelta Abajo. Habana, remedios fillers. Habana, seed, medium and dark wrappers. Little Dutch, Ohio. Long cut. riug. Scrap. Sumatra. Zimmers Spanish. 22. Fish and oysters class (1 series): Codfish, salt, whole bank medium. Clothing Group. 23. Cotton and cotton products class (24 series): Cotton (raw materials) — Cotton, average in the United States. Egyptian, brown F. G. F. Egyptian, medium. Good, No. 1, Oomra. Long staple, strict middling, IJ-inch. Long staple, strict middling, l-j^g-inch. Long staple, strict middling, l|-inch. Long staple, strict middling, 1 i^-inch. Sea Island, extra choice. Short staple, upland middling, American. Short staple, upland middling. New York. Short staple, upland middling. New Orleans. Cotton manufactures — Hosiery- — * Men's half, 176 needles, 17/1 combed yam. Women's full fashioned, 18/1 combed yarn, 33 gauge. Tire fabric. Sea Island, 17|-ounce, combed. Underwear — Long staple, men's balbriggan, 178E, 5J pounds per dozen, 26 gauge, 22/1 combed yarn. Long staple, merino shirts and drawers, 50 per cent wool, 24 gauge. Long staple, men's shirts and drawers, flat fleece, 12^ to 13 pounds per dozen. Long staple, women's ribbed union suits, 12 pounds per dozen. Velvet, millinery (17 inch, 2.955 ounces per yard). Cotton waste — Dirty card fly, mill run. No. 1 card strips, graded stock. For packing purposes. Dirty picker motes, mill run. GOVEKlSrMEIsrT CONTROL OVER PRICES. 461 24. Wool and woolen products class (45 series): Blankets, all-wool, 5 pounds to the pair. By-products — Noils, tliree-eightlis blood. Waste, card, one-fourth blood. Tops- Australian, 64s. Buenos Aires, 40s. Buenos Aires, 46e. Territory, 50s. Knit goods — Men's shirts and drawers, 50 per cent wool, 24-gauge. Men's half-hose, seamless, wool. Worsted cloths — Dress goods — Sicilian cloth, cotton warp, 50-inch. Serge, botany, 11433, 7-ounce, 54-inch. Serge, 10-ounce, 54-inch. Storm serge, double-warp, 50-inch. Suitings — Clay diagonal, 16-ounce, 56 to 58 inch. Serge, Fulton Mills, 3192, 11-ounce, 56 to 58 inch. Trousering — Cotton warp, worsted-filled, 10 to 11 ounce, 60-inch. Woolen cloths — Carpets — Axminster, 6 2/3 by 7. Body Brussels, 9-wire, 256 pitch. Tapestry, 8-wire, 200 pitch. Broadcloth, dress, botany, 315, 10-ounce, 54 to 56 inch. Felt, upholstery, 11 to 13 ounce. Felt, interlining, 13-ounce. Overcoating — Melton, Worumbo, 30-ounce, 58-inch. Twill, plain soft-faced, black, 24-ounce, 54 to 56 inch. Suits, serge, 5130. Shirtings — All-wool flannel, white Ballard. Black Thibet. Wool, Middlesex. Velour, dress, Worumbo, 829, 11-ounce, 54-irich. Woolen yarn — Carpet yarn, 3-ply velvet, 55 yards to the ounce. Weaving yarn, 12 to 16 run, one-fourth blood. Weaving yarn, 20 to 28 run, three-eighths blood. Worsted yarn — Carpet yarn, white 16s. French system — l/40s, one-half blood. l/50s, domestic. 2/50s, fine territory or domestic. Knitting yarn — 2/5s to 2/lOs, one-fourth blood. 2/lls to 2/20s, one-fourth blood. 462 HISTOEY OF PEICES DURING THE WAR. 24. Wool and woolen products class (45 series) — Continued. Worsted yarn — Continued. Knitting yarn — Continued. 2/16s to 2/20s, three-eighths blood. 2/20s to 2/24S, low, one-fourth blood. 2/26S to 2/30s, one-half blood. Weaving yarns Bradford system — 2/26S to 2/30s, one-fourth blood. 2/36s, three-eighths blood. 2/40s, one-half blood. 2/50s, fine territory or domestic. 25. Silk and silk products class (52 series): Raw silk, Chinese — Canton filature, extra extra A. Steam filature, best chops, first and second choice. Steam filatures, second grade chops. Tsatlee improved, Stars and Stripes, and Red Indian. Tsatlee improved black lion, 1, 2, 3. Tussah, best chops. Raw silk, Japanese — Filature, Kansai, 13 to 15 extra extra. Filature, Shinshu, No. 1, 13 to 15. Silk manufactures — Broad silk — Nos. 1 to 23, inclusive. Japanese Habutai, 6-momme, 36-inch. Japanese Habutai, 3|-momme, 36-inch. Hose — Ladies', all-silk, standard quality. Ladies', medium- priced, all-silk. Ladies', cotton feet, silk- top. Men's half, all-silk. Men's, cotton-top. Plush— Tussah face, cotton back, artificial fur. Millinery, artificial-silk face, cotton back, 17-inch. Cloaking, 1410, Tussah warp, cotton filling. Ribbon — Satin and taffeta. All-silk, satin, and taffeta. Velvet- Millinery, colored silk, spun silk warp, cotton filling. Spun warp, millinery. Semimanufactui'es — Silk thi'ead — Embroidery, No. 1. Embroidery, No. 2. Spun silk yarn — Artificial silk, B quality, 150 denier, unbleached. Domestic, 60/1. Domestic, gray, spun, 60/2-1 Imported, 200/2, gray. Viscose yarn, artificial silk, B quality 360 denier, unbleached. GOVERlSrMElSrT CONTROL OVER PRICES. 463 26. Hides and skins and their products class (96 series): Calf-skin leather — Full grained, bordered, black kip H, second grade. Full grained, bordered, black, L, second grade. Full grained, smooth, black, L, second grade. Full grained, smooth, colored, M, second grade. Snuffed, smooth, black, M, second grade. Cattle hide leather — Case, bag and strap leather: Case, colors, 2J-ounce, B. Strap, colors, 9-ounce, B. Strap, colors, 6-ounce, B. Embossed bag and belt, 4^-0 unce, B. Smooth bag, SJ-ounce, B. Cattle side, upper leather — Chrome, box, 1. m. weight, A quality. Chrome, black, slightly corrected, smooth. Chrome, patent. Sides, black gun metal, 1. m. weight, A quality. Waterproof, H weight, A quality. Offal, heads, bellies, and shoulders — Shoulders — Double-oak belting. Hemlock. Heads — Scoiu'ed oak heads. Union heads. Bellies — Hemlock dry hide bellies. Skirting — • California oak, No. 1. California oak, BB, No. 2 Horsehid^ leather — Glove, buffed, M, second grade. Shoe, upper and patent. Shoe, upper and patent, M, second grade. Shoe, upper and patent, upper, M, second grade. Sheepskin leather — Fancy and other stock — Bag roans. Black, for beading, quarter lining. No. 1. Black, for beading, quarter lining. No. 2. Black, for beading, quarter lining, No. 3. Tops and plain black chrome. White alum. Glove stock — Domestic Napa. Domestic suede. Fleshers. South African cape. Glazed kid leather — Black and colors, export and domestic. 464 HISTORY OF PRICES DURING THE WAR. 2(3. Hides and skins and their products class (96 series) — Continued. Glazed kid leather — Continued. Shoe stock — Black, dull and glazed. Colors. Imitation calf. Leather manufactures — Bags, cowhide, 2^-ounce, 18-inch. Belting — Fii'st quality. Light doubles. Regular quality. Gloves, men's — Unlined, mocha, P. X. M., first grade. One clasp, P. X. M., unlined cape, first grade. Silk lined, P. X. M., cape, first grade. Silk lined, P. X. M., mocha, first quality. Gloves, women's and children's^ — Children's gloves, average grade. One clasp, P. X. M., cape, second grade. One clasp, P. K., cape, first grade. One clasp, P. X. M., first grade. Harness, sets — Standard farm team. Team, all purposes. Single buggy, standard. Horse collars — High grade. Standard imitation Scotch. Saddles — Riding, high grade. Spring seat, standard. Shoes, boys' and youths'— Boys'— Grade I. •^ Grade II. Grade III. Little Gents' — Grade I. Grade II. Grade III. Shoes, men's — Black calf Oxford. Black kid, A-boot. Black, low price. Black, Rumania calf. Bench, combination tan Oxfords. Bench, patent colt. Farmer, mechanic, and laborer, 49-226. Farmer, mechanic, and laborer, 49-307. Handstitched patent kid Oxfords. Rumania calf, high. Steel or black calf A-boot. Tan, low price. Tan, kid, A-boot. Vici kid. GOVEKNMENT CONTEOL OVER PRICES. 465 26. Hides and skins and their products class (96 series) — Continued. Shoes, misses' and children's — Children's gunmetal, button, low heel, sizes 9-11^. Misses', vici patent, button, low heel, sizes 12-2^. Shoes, women's — Black kid, button, dull kid top. Black kid, lace, regular top, classic heel. Boots, McKay. Boots, welt. Brown kid, welt, leather heel, 7^-inch boot. Glazed kid, Oxford, leather heel. Glazed kid, welt, leather heel, 7|-inch boot. Kid Oxford, McKay. Low shoes, patent leather. Oxford, McKay. Oxford, welt. Patent kid, full seam vamp, black cloth top. Patent pump (T. and W.). Black kid (T. and W.). Suit case, cowhide, 2-|-ounce, 24-inch. 27. Hatters' fur and fur felt hats class (10 series): Coney- — Best B. C. B. unpulled. French, best extra. French, best mottled. French, unpulled. Scotch, best B. C. B. Hair, best OOlH. Hats — Fur felt- A. Fur felt No. 1. Knox. Stetson. 28. Hair, bristles, and feather class (22 series): Bristles — ■ Chunking, superior No. 3. Chunking, superior No. 5. i Hankow, superior No. 3. Hankow, superior No. 5. Tiensin, superior No. 3. Tiensin, superior No. 5. Brushes — ■ Hair, prophylactic. No. 500. Hand, prophylactic, No. 400. Tooth, prophylactic. No. 1. Feathers — • Chicken, body, colored, dry picked. Chicken, body, white, dry picked. Duck, white or yellow. Geese, mixed gray. Geese, prime white. Turkey, body, white. Feather articles — • Mattress, 40-pound. Pillow, chicken feather, 18 by 25. 125547°— 20 30 466 HISTORY OF PRICES DURING THE WAR. 28. Hair, bristles, and feather class (22 series) — Contiaued. Hair — Cattle, washed, dotaestic. Hog, processed, domestic. Horse manes. Horse tails. Hair cloth, 50-pick, 24-inch. 29. Button class (20 series): Raw materials — Shells, fresh water pearl, all varieties. Shells, yellow Manila, bold and bold medium, average weight l^^ pounds Ocean, West Australian, bold medium, average weight ^ pound. Pearl, Tahiti, black chickens, average weight -^ pound. Vegetable ivory (Tagua nuts). Manufactures — Buttons — Bone, white, commercial, 22-line. Bone, underwear, Navy prices, 22-line. Glass, jet, 18 line. Metal, Army blouse, 36-line. Metal, trouser, 27-line. Pearl- Ocean and fresh water. Imported, ocean, Trochus Japanese, first grade. Fresh water, all sizes and grades. Ocean, West Australian, fine shirt button, 16-line. Ocean, smoked Panama, 36-line. Ocean, Tahiti, ^ fine, 36-line. Ocean, West Australian, ^ fine, 36-line. Shoe, No. 4 bright black, regular finish. Vegetable ivory, flannel shirt, 24-line. Vegetable ivory, trouser, black, 22-line. Rubber, Paper and Fibers Group. 30. Rubber and rubber products class (24 series): Chemicals — Barytes, domestic. Flowers, sulphur. Lithopone. Magnesite, calcined. Whiting, commercial. Zinc oxide, standard American process. Fabrics- Cotton, 17J-ounce Sea Island, combed. Reclaimed rubber — Mechanical. Truck tires. Rubber products — Clotliing, rubber — Calendered, single texture, western. Calendered, double coated, fire coat. Double texture, bombazine coat. Single texture, woman's coat. GOVEKNMENT CONTROL OVER PRICES. 467 30. Rubber and rubber products class (24 series) — Continued. . Rubber products — Continued. Footwear, rubber — Arctics. Boots. Tires and tubes, rubber — ' Pneumatic plain tread, 30 by 3^ inches. Pneumatic non-skid, 30 by 3J inches. Pneumatic non-skid, 33 by 4 inches. Pneumatic tubes, 33 by 4 inches. Solid rubber tire, 36 by 5 inches. Sundries, druggists' — Ice bags, cloth lined. Water bottles (all rubber). Rubber goods- Conveyor belting, 8-inch, 5-ply. Water hose, ^-inch, 5-ply. 31. Paper class (40 series): Paper — Nos. 1 to 20, inclusive. Boards — Bogus bristol. Chip. News. Plain. Straw. Paper — Blotting. Building, red rosin, sized sheeting. Tissue, Manila. Wrapping, Nos. 1 to 10, inclusive. Writing, bond. No. 4. Writing, coupon bond, No. 1. 32. Fibers and fiber products class (34 series): Raw materials- Fibers— American, Kentucky, double dressed. Flax, New Zealand, good, fair shipment. Istle, Palma. Jute, raw, M, double triangle, shipment. Sisal, Mexican, current shipment. Sisal, Java— A, shipment. Manufactured products- Cordage, jute — Packing, coarse. Papermaker's twine. Rope, No. 1, J-inch and above. Rope, No. 2, J-inch and above. Twine, wool, A quality. Twine, wrapping, 2 to 6 ply. Twine, wrapping, hide rope form. Cord and twine — India, dark color, No. 2. India, dark color, No. 9. 468 HISTORY OF PRICES DURING THE WAR. 32. Fibers and fiber products class (34 series) — Continued. Manufactured products — Continued. Cordage, hard fiber — Manila rope, third-grade basis. Pure manila rope, basis f -inch diameter. New Zealand rope, basis f-inch diameter. Russian, tarred basis. Sisal, rope basis. Hemp and twine — American, mixed. No. 9. American, mixed, No. 12. Pure, No. 9. Pure, No. 12. Oakum — Best. Plumbers'. United States Navy. Navy. Rope, hard fiber — ■ Manila, basis price. Manila, lariat. Oilwell drilling cables. Sisal, basis, f-inch diameter. Transmission. Packing, fine. Metal Group. 33. Iron and steel and their products class (52 series): Manufactures — Adzes, carpenters'. Anvils, American. Augers, regular, 1-inch. Axes, single-bit, base weight, first quality. Braces, common ball. Butts, loose-pin, wrought steel, 3 J by 3^ inch. Carvers, stag handles, 8-inch. Chains, traces, wagon, western standard, straight with ring. Chisels, regular, socket firmer, 1-inch. Files, 8-inch, mill bastard, Nicholson. Gimlets, bits, common double cut. Hammers, Maydole, No. 1|. Hammers, farriers', 2^-pound, turning. Hinges, gate, with latch, western. Hinges, spring, holdback, cast-iron. Hods, coal, galvanized, open, 17-inch. Hooks, bush, light. Hooks, grass, bent shank. Hooks and eyes, group 3, No. 40J. Knives and forks, cocobolo handles, metal bolsters. Knobs, door, steel, bronze plated. Locks, common mortise, knob lock, 3i-inch. Locks, padlocks. Lock sets. GOVER^STMEISTT CONTROL OVER PRICES. 469 33. Iron and steel and their products class (52 series) — Continued. Manufactures — Continued. Pans, dripping, refrigerator, galvanized, IB-inch. Planes, Sargent, No. 414 Jack. Pails, galvanized, light. Punches, saddlers' or drive, good. Rasps, horse, 16-inch, plain. Rings and ringers, hog, gray iron. Rings and ringers, bull rings, steel. Saws, cross-cut, Disston, No. 2, 6-foot, Champion tooth. Saws, hand, Disston, No. 8, 26-inch, skewback. Shaves, spoke, iron. Shovels, Ames, No. 2. Spoons, tinned, iron, table. Springs, carriage, black, 1^-inch and wider. Staples, fence, bright. Swages, 1-inch. Tongs, 18-inch, blacksmiths'. Traps, fly, balloon, glove or Acme. Trowels, Johnson's, brick, lO^-inch. Truck, Avarehouse, hand. Turns, cupboard. Vises, so lid -box, 50-pound. Vises, self-adjusting, jaw vises, Prentiss patent. Washers, cast-iron, ^-inch, barrel lots. Wedges, oil finish. Wheelbarrows, tubular steel, steel tray. Wire, clothes line, No. 20. Wire, cloth and netting, black. Wire, cloth and netting, standard galvanized. 34. Nonferrous metals class (11 peries): Antimony, ordinary brands. Brass — Sheets. Rods. Copper — Casting. Sheets. Wire. Lead — Sheet. . . Solder. Pipe. Tin, pig, straits. Zinc, prime western. 35. Rare metals c]ass (4 series): Chromite, 40 per cent and over Ferro vanadium. Spiegeleissen, 20 per cent. Tung.sten ore, 60 per cent. 470 HISTORY OF PRICES DURING THE WAR. Fuels Group. 36. Petroleum and petroleum products class (22 series): Fuel oil, wholesale markets — Tulsa, Okla. Vinton, La. Houston, Tex. San Francisco. Los Angeles, Calif, Gasoline, tank wagon — Baltimore. Chicago. Kansas City. New York. San Francisco. Kerosene, standard white, 110 test. Kerosene, tank wagon — Baltimore. Chicago. Kansas City. New York. San Francisco. Lubricating oil — Dark, steam refined. Red paraffin. Paraffin, 903 sp. Spindle No. 150. Spindle No. 200. Paraffin, crude, 118 to 1,220. 37. Matches class (9 series) : Best and cheapest. Japanese safety, extra quality, "Namco" brand. Nitedal brand, safety. Standard, No. 1. Standard, No. 2. Standard, No. 5. Safe home. Searchlight. Strike-on-the-box. Building Materials Group.* 38. Clay products class (13 series): Brick- Face, building. No. 1, color gray. Fire, high-grade. Paving, No. 1. Dinner sets, china, commercial grade. China, decorated in cheap standard treatments. Ground plastic. Kaolin, refined white. Pipe, sewer, salt-glazed, fire-clay-. ' This group includes a few materials whichare not strictly building materials, such as china, etc., but which are included in the group because of convenience in classification. The aggregate importance of these materials is so small, however, that their inclusion has a negligible influence on the index number. GOVERNMENT CONTROL OVER PRICES. 471 38. Clay products class (13 series) — Continued. Pipe, sewer, vitrified, salt-glazed, 4-inch. Sanitary ware, white, with glazed finish. Sinks, kitchen, porcelain. Stoneware, Ohio standard, white and black. Tile, drain, 4-inch. ^ 39. Sand and gravel class (1 series): Railway ballast. 40. Quarry products class (15 series): Granite — Dark, monumental. Light, building, light blue. Building, red, white, and blue. Crushed, No. 3^, J inch to ^ inch. Monumental, red and gray Paving blocks. Limestone — Crushed, for furnace flux. Crushed, railway ballast. Indiana building, buff, rough block. Lime, in bulk. Marble, sawn. Slate, green roofing. No. 1 grade, 20 by 10. Stone — Building, gray blockstone. Curbing, 4-inch and under. Flagging, sawed. 41. Cement class (1 series): Natural rock cement. 42. Glass class (10 series): Glass — ■ Plate, polished, glazing area 3 to 5 square feet. Plate, polished, glazing area 5 to 10 square feet. Window, single, 40-A. Window, double, 40-A. Window, single, 40-B. Window, double, 40-B. Glassware — ■ Milk bottles, glass. Nappies, 4-inch, common. Pitchers, ^gallon, common. Tumblers, table, J-pint. 43. Lumber class (38 series): Ash- Firsts and seconds, 4/4. No. 1 common, 4/4. No. 2 common, 4/4. Birch — Firsts and seconds, 4/4. No. 1 common, 4/4. No. 2 common, 4/4. No. 3 common, 4/4. 472 HISTORY OF PRICES DURING THE WAR. 43. Lumber class (38 series)— Continued. Chestnut^ Firsts and seconds, 4/4. No. 1 common, 4/4. No. 3 common, 4/4. Sound, wormy, 4/4. Gum — Firsts and seconds, 4/4, red. Firsts and seconds, 4/4, sap. No. 1 common, 4/4, red. No. 1 common, 4/4, sap. No. 2 common, 4/4. Hickory — No. 2 common, 8/4. Maple, hai'd — Firsts and seconds, 4/4. No. ] common, 4/4. No. 3 comimon, 4/4. Oak, plain — Firsts and seconds, 4/4. No. 1 common, 4/4. No. 1 common. No. 3 common, 4/4. Poplar, yellow — Firsts and seconds, 4/4. No. 1 common, 4/4. No. 2 common, 4/4. No. 1 common, 8/4. Saps or selects, 4/4. Pine, eastern white — Dimension: No. 1, S-l-S-L, 2 by 4 inches by 16 feet. Dimension: No. 1, S-l-S-lL, 2 by 10 inches by 16 feet. Inch finish, select, 1-inch. No. 2 boards, 1 by 8 inches by 12 feet. No. 3 boards, 12 by 10 inches by 20 fe'et. No. 4 boards, mixed widths, 10 to 20 feet. Selects, C and better, 5/4 M-L. Shop, No. 1, 8/4 M-L. Shingles, red cedar. ■14. Paints and varnish class (29 series): Paint pigments — Bone black. Lamp black. Prussian blue. Chrome green. Paris green. Ochre. Venetian red. Ultramarine. Umber. Chrome yellow. Paints and pigments — Barytes, domestic, floated. Blanc fixe, pulp. GOVERlsrMElSrT CONTROL OVER PRICES. 473 44. Paints and varnish class (29 series) — Continued. Paints and pigments— Continued. Lead — Basic, sulphate. Basic, carbonate, dry. Red. Litharge. Lithophone. Paint, outside white. Whiting. Zinc oxide. Paint and varnish, raw materials- Casein. Carnauba wax. Copal gum, Manila Kauri gum, ordinary chips. Oil, china wood. Oil, linseed. Shellac, T-N. Turpentine, spirits of. Varnish, inside, oil. The Chemicals GROtrp. 45. Mineral acids class (2 series): Hydrocholoric acid (muriatic), 20° Baume. Rock salt, crushed, f. o. b. car, mines. 46. Heavy chemicals class (6 series): Bicarbonate of soda, commercial, 99.9 per cent pure. Caustic potash (potassium hydroxide), 88-92 per cent. Lime, burnt, in bulk. Rock salt, crushed. Salt cake (sodium sulphate), unground, spot. Sodium sulphide, 60 per cent. 47. Miscellaneous inorganic chemicals class (18 series): Alluminiim sulphate, commercial. Barium chloride, white crystals. Borax (sodium tetraborate), crystals and granulated. Bromine. Calcium carbide. Calcium chloride. Copper sulphate (blue vitriol). Ferrous sulphate (copperas, sulphate of iron). Lead acetate (sugar of lead), brown, broken. Magnesium sulphate (epsom salts), technical. Mercuric chloride (bichloride of mercury, corrosive sublimate). Phosphorous, yellow. Potassium chlorate crystals. Potassium permanganate. Silver nitrate (lunar caustic). Sodium silicate (water glass, 40° Baurn^). Sodium trio-sulphate (hypo). Zinc chloride. 474 HISTORY OF PRICES DURING THE WAR. 49. Soaps and glycerin class (9 series): Rosin, grade F, 280-pound barrel. Soap — Toilet, average of two leading brands. White floating, Flotilla. White floating, Ivory. White laundry. Proctor & Gamble white naphtha. White laundry, crystal white. Octagon. Yellow rosin laundry, Lenox. Sodium silicate. 50. Essential oils, flavoring and perfumery materials class (20 series): Balsam, Peru. Benzoin gum, Siam. Musk, natural. Oils of— Cassia. Bergamot. - Cedar leaf. Cedar wood. Eucalyptus, Australia. Lavender flowers. Lemon. Neroli, petale. Orange, sweet, Italian. Peppermint. Rose. Sassafras. Wintergreen (sweet birch). Wormwood. Orris root, Florentine. Vanilla beans. Vanillin. 51. Wood distillation products and naval stores class (4 series): Acetic acid, 28 per cent, in barrels. Acetone oil. Rosin, grade F. Turpentine, spirits of. 52. Natural dyestuffs and tanning chemicals class (18 series): Raw materials — Divi-divi. Fustic sticks. Gambier, common or spot, ex-store. Hemlock bark. Logwood sticks. Oak bark. Sumac, Sicily, 29 per cent tannin. Quercitron bark. Manufactured materials — Chestnut extract. Dextrine, domestic potato. Fustic extract, solid. Hemlock bark, extract, 25 per cent tannin. Indigo, Bengal. Logwood extract, solid. GOVERNMEISTT CONTROL OVER PRICES. 475 52. Natxiral dyeatuffs and tanning chemicals claas (18 series) — Continued. Manufactured materials — Continued . Oak bark extract. Quercitron extract, 51°. Sodium bichromate. Turkey red oil. 53. Coal tar crudes, dyes and intermediates class (18 series): Coal tar crudes — Creosote oil. Benzol, pure white. Napthaline, refined flakes. Solvent naptha. Coal tar intermediates — Aniline oil. Beta-napthol. Paranitraniline . Phenol, U. S. P. crystals (carbolic acid). Salicylic acid. Coal tar dyes— Bismark brown (2R) No. 284. Chrysoidine R (No. 34). Chrysoidine Y (No. 33). Direct black. No. 462. Indigo, synthetic, No. 874. Nigrosine, spiiit soluble, blue shade, No. 698. Nigrosine, water soluble, blue shade. No. 700. Orange II (No. 145). Scarlet,. 2 R (No. 82). 54. Drugs and pharmaceuticals class (27 series) : Aspii-in, Bayer. Antipirine. Aloes, cape. Acetphenitidin. Acetanilid, C. P. Belladonna root. Bismuth subnitrate. Castor oil, 1, or AA. Cream of tartar crystals. Cocaine hydrochloride, large crystals. Citric acid crystals. Camphor, Japanese refined. Calomel, U. S. P. (mercurous chloride). Digitalis, domestic. Iodine, resublimed. Lanolin, anhydrous. Licorice root. Menthol. Morphine sulphate. Nux Vomica. Opium gum. Quinine sulphate. Salol. Sodium bromide, granular. Strychnine sulphate. Tartaric acid, crystals. Thymol. 476 HISTOKY OF PRICES DURING THE WAR. 55. Proprietary preparations class (23 series): An antiseptic wash. An ant-acid. A disinfectant. A cathartic. A digestive remedy. Cough remedy No. 1. Cough remedy No. 2. A facial cream. A hair tonic. A headache remedy. Laxative — No. 1. No. 2. No. 3. Liniment — No. 1. No. 2. Mouth wash. Prepared food. Pm'gative. Salve. Talcum powder. Tonic- No. 1. No. 2. Tea. 56. Explosives class (10 series): Commercial explosives — Dynamite, 40 per cent N. G. Dynamite, 40 per cent L. F. Am. Powder F. F. F., black. Military explosives — Ammonium nitrate. Picric acid. Powder — • Smokeless, foreign cannon (water dried). Smokeless, United States military rifle (air dried). Phenol. Trinitrotoluol, crude, melting point 76°. Trinitrotoluol, refined, melting point 79.6° to 80°. 57. Miscellaneous organic chemicals class (12 series): Ether. Hexamethylenetetramine. Hydroquinone. Lactic acid, 22 per cent. Oxalic acid. Pyrogallic acid. Solvents — Alcohol, denatured. Alcohol, grain, 190 proof. Amyl acetate. Carbon bisulphide. Chloroform. Fusel oil, amyl alcohol. GOVERN" MENT CONTROL OVER PRICES. 477 (3) THE SERIES OF THE PRICE SECTION INDEX NUMBER CONSIDERED CONTROLLED. Food Group. 8. Feed and forage class (22 series): Com chop. Com^ Kafir, No. 3, white. Mixed, cash. No. 3. Feed, molasses alfalfa. Meal — Alfalfa, new choice. Cottonseed. . Linseed. Molasses, black strap. Hay- Alfalfa, No. 2. Clover, No. 1. Clover, mixed, No. 1. Johnson grass. No. 2. Prairie, No. 2. Wild oat. Choice, tame oat. Timothy, No. 2. Fancy wheat. Hulls, cottonseed, looee. Oats, cash, No. 3, white. Straw — Oat. Rye. Wheat. 9. Wheat and wheat products class (12 series): Biscuit, social tea. *" Bread, loaf, before baking. Cake, Regina, pound, raisin, and plain. Crackers — • Graham. Soda, in boxes. Cream of wheat. Flour, wheat, standard patents. Macaroni. Mill feeds- Bran. Middling, standard, 100-pound jute sacks. Shorts, mixed. Wheat, No. 2, red winter, cash. 10. Corn and corn products class (6 series) : Corn, yellow, cash. No. 3. Corn meal, white, in bulk. Corn oil, crude, in 400-pound barrels. Cornstarch, powdered, in bags. Corn sirup, 43° crystal, in 100-pound barrels. Hominy grits, in bulk, carload lots. 478 HISTORY OF PRICES DURING THE WAR. 11. Oats, buckwheat, and rice class (9 series): Buckwheat. Flour — Aunt Jemima pancake. Buckwheat. Gold medal. Teco pancake. Oats, No. 3, white, cash. Oatmeal, carload lots. Rice — Honduras head, domestic, clean. Japanese head, domestic, clean. 12. Barley, hops, rye, and their products class (4 series): Barley, fair to good. Malt, western grade, standard. Rye, No. 2, Minneapolis. Rye flour, pure, medium straight. 13. Sugar and related products class (9 series): Corn, No. 3, yellow. Glucose, 42° mixing. Molasses, fancy, blended, in barrels. Sugar — Beet, refined, standard granulated. Cane, raw, 90° centrifugal. Cane, refined, fine granulated, in bags or liarrels. Cane, refined, granulated, in cartons, cased. Cane, refined, cubes, in barrels. Cane, refined, No. 7, soft, brown, in barrels. 14. Vegetables and truck class (15 series): Beans — Navy, or pea, dried. Pinto, dried. Dried, unclassified. Cabbage — Fresh, unclassified. Fresh, white, Danish. Corn, New York standard, canned. Onions, fresh, unclassified. Peas — Fresh, shelled. Canned, No. 3 sieve. Peanuts — Dried, unclassified. Dried, shelling stock, or grade No. 3. Potatoes — Fresh, white, unclassified. Fresh, sweet, unclassified. Tomatoes — Fresh, canners' stock. Canned, standard. 15. Edible vegetable oils class (13 series): Beans, soya. Butter, cocoa, in bulk. GOVERNMENT CONTROL OVER PRICES. 479 15. Edible vegetable oila class (13 series) — Continued. Cottonseed. Copra, in bags. Lard substitutes, in barrels. Oil- Coconut, crude, in tank cars. Cottonseed, crude, in tank cars. Cottonseed, prime, summer yellow, in barrels. Corn, crude, in barrels. Corn, refined, in barrels. Palm kernel, crude. Soya bean, crude, in barrels. Olive, edible. 16. Fruits, nuts and wine class (10 series): Apples — Average of all varieties. Baldwin. Ben Davis. Dried. Bananas, Jamaica. Lemons, California. Oranges, California— Valencias and navels. Peaches, dried, California, choice. Prunes, dried, California, 60-70. Raisins, dried, choice, seeded. 18. Tea, coffee, and cocoa class (9 series) : Coffee- Caracas, washed. Colombian, Bogotas. Costa Rica, fair to good. Cucuta, fair to good. Hayti, unwashed. Mocha, small. Padang, interior. Rio, No. 7. Santos, No. 4. 20. Live stock, meats and fats class (48 series): Bacon — Short, clear sides, smoked, loose. Rough sides, smoked, loose. Breakfast, loose. Beef— ^ Fresh native sides. No. 1 plate. Salt, extra mess. Cows, choice to prime. Hams, smoked, loose. Heifers, choice to prime. Hogs — Dressed. Live, bulk of sales. Live, carload lots. Live, light to heavy. Heavy fair to choice heavy shipping and heavy butcher. Common to choice light bacon, and fair to fancy select butchers. 480 HISTORY OF PRICES DURING THE WAR. 20. Live stock, meats and fats class (48 series) — Continued. Lambs — Good to prime. Carload lots. Lamb, dressed, round. Lard — Compound, in tierces. Leaf. Pure leaf, kettle rendered, tierces. Prime, steam, loose. Prime, contract. Stearine. Margarine, standard, high-grade. Meat, mutton, dressed. Mutton, legs. Pork loins. Pork, salt mess. Sheep — Prime. Carload lots. Ewes. Wethers. Oleomargarine, standard, uncolored, pound carton. Oleo oil, extra. Steers — / Feeding, 790 to 839 pounds. Feeding, 940 to 989 pounds. Choice to prime, heavy beeves. Good to choice, corn-fed. Native beef. 1,180 to 1,229 pounds. Good native, fresh carcass. Steer — Chucks, No. 1. Loins, No. 1. Rounds, No. 1. Tallow, packers' prime. Veal calves, prime, live. Veal, city dressed, good to prime. 21. Poultry and dairy products class (43 series): Butter: Creamery — Extra, San Francisco. Extra, Philadelphia. Seconds, New York. Firsts, New York. Fancy, New Orleans. Extra, New York. Elgin. Centralized firsts, Cincinnati. Firsts, Chicago. Extra, firsts. Extra, Chicago. Seconds, Boston. Extra, Boston. GOVERNMENT CONTROL OVER PRICES. 481 21. Poultry and dairy products class (43 series)— Continued. Butter — Continued. Whole milk, extra, at Cincinnati. Cheese — Whole milk, American twins. New York State, full cream, large colored. Colored. California, flats, fancy. Flats, average and fancy. Long horn. Chickens, broilers, western, combed. Ducks. Eggs- Average, fresh, best, St. Louis. Average, best, fresh, New York. Candled, western. New Orleans. Firsts — Western, Boston. Fresh, Chicago. Fresh, Cincinnati. Fresh gathered. New York. Extra, western, Philadelphia. Selected, pullets. Fowls — Live, Chicago. Live, choice, New York. Dressed, western killed, corn fed. Dressed, western, dry picked, and packed. Turkeys — Dressed, iced. Live. Milk- Fresh, Chicago. Grade B, New York. Fresh, San Francisco. Evaporated. Sweetened, condensed. Oleomargarine. 22. Fish and oysters class (14 series): Bluefish. Carp. Cod. Flounder. Haddock. Hake. Halibut, western white. Herring, lake. Mackerel, Spanish Salmon. Salmon, mild cured. Salmon, pink, No. 1 tails, canned. Sardines, l-oils, keyless, canned. Trout, lake. 125547''— 20 31 482 HISTORY OF PRICES DURING THE WAR. Clothing Group. 23. Cotton and cotton products class (57 series): Cotton goods: Damask, l)leached, G4-inch. Denim, Amoskeag, 2S-inch, 2.20-yard. Drilling, Massachusetts D standard, 30-inch, 2.85-ounce. Duck- Sail, numbered, firsts, 22-inch, No. 6. Standard, United States Army, firsts, 28.2-inch, 8-ounce. Shelter tent, first quality, 35|-inch, 1.90-yard. Wide, numbered, firsts, 60-inch, No. 8. ■ Cotton linters — Grade A, cut 25-40, Grade B, cut 45-75. Grade C, cut 80-125. Grade D, cut 130-175. Cotton manufactures — Bags, 2 bushel, Amoskeag, 16-ounce. Blankets, 90-inch, colored, 2 pounds to pair, 54 by 74. Calico, American standard, 28-inch, 64 by 64. Cambric, Lonsdale. Cashmere, cotton warp, 36-inch. Cotton, absorbent, Maplewood grade. Flannels, unbleached, 31.|-inch, 3 J yards. Gauze, bandage, bleached, 36-inch, 20 by 12. Gauze, Brunswick, bleached, 36-inch, 20 by 12. Gingham, Lancaster, 26J-inch, 6.5 yards. Lawn, 40-inch, 88 by 80, 8.5 yards. Mattress, Anchor, from linters, 4/6 by 6/4, 45 pounds. Percale, 36 inches, 5.35 yards. Print cloths — 39-inch, 72 by 76, 4.25 yards. 27-inch, 64 by 60, 7.60 yards. Sateen, 39-iiich, 72 by 120, 3.50 yards. Sheeting — Brown, 36-iiich, 44 by 48, 2.85 yards. Brown, 36-inch, Ware Shoala LL, 4. yards. Bleached, 90-inch, Wamsutta, S. T. Shirting — Bleached, 36-inch, 76 by 84, 3.90 yards, in gray. Muslin, 36-inch, Rough Pdder, 4 yards. Rope, first grade, IJ-inch. Tape, No. 7118, 60 by 38. Ticking, Amoskeag, A. C. A. 32-inch, 2.05 yards. Tire fabric, 17|-ounce, Egyptian, carded. Thread, cotton, 6-cord, white, 200-yard spool. Towels, Terry, 22 by 44 and 83 by 32. rwill, 29.5-inch, 104 by 48, 2.15 yards, fwine, wrapping, first grade. . Seed, cotton. Waste, cotton, Osnaburg. GOVERNMENT CONTROL OVER PRICES. 483 23. Cotton and cotton products class (57 series) — Continued. Cotton manufactures— Continued , Yarns — Carded, white, northern mule spun, 22/1, cones. Carpet, short staple, 8/3 warp, twist slack. Hosiery — Long staple, 10/1, combed, C. C. hosiery, twist, cones. Short staple, 30/1, northern carded, double roving mule spun. Weaving — Short staple — 10/1 carded, white, northern mule spun, cones. 16/2, southern 2 ply skein. Long staple — 24/1, eastern peeler cones, carded. 36/1, eastern peeler cones, combed. 50/2, eastern peeler cones, combed. 60/2, eastern peeler cones, combed. 70/2, eastern peeler cones, combed. 80/2, eastern peeler cones, combed. Egyptian twist, 60/1. Egyptian, single, 70/1, skeins, combed. Sea Island, 80/1, combed. 24. Wool and woolen products class (21 series): Kaw materials — Domestic wool — Ohio, fine, unwashed, delaine. Ohio, three-eighths blood, unwashed. Ohio, one-fourth blood, unwashed. Territory, staple, F. and F. M., scoured basis. Territory, combing, one-half blood. Imported wool — Australian, choice Sydney and Geelong, merinos, 64s, scoured basis. Australian, choice Sydney and Geelong, merinos 70s, scoured basis. Chinese, China ball. No. 2, open grain basis. South American — Buenos Aires — 36s, grain basis, 28 per cent shrinkage. 40/44 grain basis, 30 per cent shrinkage. 468, grain basis, 34 per cent shrinkage. Montevideo — 50s, grain basis, 35 per cent shrinkage. South African — 58/60s, scoured basis. 60/64s, scoured basis. 708, scoured basis. Substitutes — Clips- Blue worsted. Reworked blue serge. Kags, graded — Blue serge. Light skirted cloth. Light worsted. 3, A shoddy, reworked blue serge. 484 HISTORY OF PRI^E.S DURING THE WAR. 25. Silk and silk products class (2 series): Waste silk — Japan, best white Prisons. Japan, pierced cocoons, 2(J. Hides and skins and their products class ((10 series): Cattle hides — Oountry — Branded. Cows, heavy. Steers, No. 1, (iO pounds, and up. Imported — Bogota. Vera Cruz. Imported dry — Packer. Puerto Cabella, 21 to 2.3 pounds, selected. Tuxpam, 20 to 27 pounds, selected . Vera Cruz, 18 to 19 pounds, selected. Packer — Cows — Branded. Light native. Native, over 55 pounds. Steers — Butt branded. Extreme light Texas. HesLYj native. Light Texas. Spready. Calfskins — Country. Country kips — Kips No. 1, 15 to 25 pounds. Selected, 5 to 7 pounds. Selected, 7 to 9 pound.s. Selected, 9 to 12 pounds. Green, trimmed to butchers — No. 1. No. 2. New England - 4 to 5 jjounds. 5 to 7 pounds. 7 to 9 pounds. 9 to 12 pounds. 12 to IT) pounds. 16 pounds and up. Selected — 5 to 7 pounds. 7 to 9 pounds. 9 to 12 pounds. Goatskins — Amritsars — 1,000 pounds to 500 skins. 1,110 pounds to 500 skins. 1,200 pounds to 500 skins. GOVERNMENT CONTROL OVER PRICES. 485 26. Hides and skins and their products class (60 series)— Continued. Goatskins — Continued. Brazil, first selection. Rio Hache. San Luis Zacatecas. Sheep and lambskins — Country — Lambs. Sheep and shearlings. Imported — Capeskins, glove. Lambs, Greek and Macedonian. Lambskins, Spanish. Mochas. Packer — '' Lambs. Sheep and shearlings. Horsehides, country. Leather, cattle hide — Belting butts — Light standard tannages. Heavy standard tannages. Medium standard tannages. No. 1 heavy. Harness leather — Grade B. California oak. Grade 2. Sole leather — Buenos Aires, dry hide, hemlock. M. W., reject second grade. Buenos Aires, dry hide, hemlock, O. W., 2d grade. Hemlock packer slaughter. No. 1. Hemlock slaughter, No. 1, best tannages. No. 1 scoured oak bends, all weights. No. 1 scoured oak backs, all weights. Rubber, Paper, and Fibers Group. 30. Rubber and rubber products class (10 series): Rubber, crude — African, Niger flake. Brazilian Para — Cameta. Upper Caucho Ball. Upriver, coarse. Upriver, fine. Centrals, Guayule — Corinto scrap. 20 per cent, guaranteed. Plantation Hevea — First latex crepe. Fine smoked sheets, ribbed. Rubber substitute — Gutta joolatong. 31. Paper class (1 series) : News print rolls, car lots. 486 HISTOEY OF PRTCJES DURING THE WAR. 32. Fibers and fiber products class (10 series): Raw materials — Kapok, prime .Tapara. Manila — ^air, current shipment. Good, current shipment. Midway, shipment. Manufactured product — Binder twine — Manila, 600 feet to the pound. Pure manila, 650 feet to the pound. Standard manila or extra, 550 feet to the pound. Standard, 500 feet to the pound. White sisal, 500 feet to the pound. Burlap, 40-inch, lOJ-ounce, Calcutta. Metals Group. 33. Iron and steel and their products class (36 series): Raw materials and slightly manufactured products — • Iron ore — Mesabi Bessemer, 55 per cent. Mesabi non-Bessemer, 51| per cent. Coke, Connellsville furnace, f. o. b. ovens. Pig iron—^ Basic. Bessemer. Foundry, No. 2 southern. Scrap, steel — Heavy melting. No. 1 railroad wrought. Billets, steel — Bessemer. Open-hearth. Bars — Iron, common, from mill, Pittsburgh. Sheet steel, Bessemer. Sheet steel, open-hearth. Steel. Shapes, steel, structural. Plates, steel, tank. Manufactured products — Rails, steel — Bessemer, standard. Open-hearth, standard. Spikes, steel — Standard railroad. Skelp, grooved. Pipe, cast iron, 0-inch. Hoops, steel. Sheets — Black, No. 28. Blue annealed. No. 10. Galvanized, No. 28. GOVERNMENT CONTROL OVER PRICES. 48 T 33. Iron and steel and their products class (36 series) — Continued. Manufactured products — ^Continued. Tin plate, domestic coke, 14 by 20 inches. Wire rods, Bessemer. Wire fence — Plain, annealed, Nos. to 9. Barbed, galvanized. Calk, toe, blunt and medium, 1 prong. Chains, American coil. Nails- Cut, eightpenny, fence and common. Wire, eightpenny, fence and common.. Rivets, button head, structural. Screws, wood, 1-inch, No. 10, fiat head. Shoes, horse and mule. 34. Ferro-alloys, nonferrous and rare metals class (13 series): Aluminum — 98 to 99 per cent, contract price. 98 to 99 per cent, open market. Copper — Electrolytic. Lake. Lead, pig. Nickel, ingot. Nickel, shot and ingot. Zinc, sheet. Quicksilver. Ferromanganese, 80 per cent. Manganese ore, 49 per cent. Platinum, refined ingots. Silver, fine. Fuels Group. 35. Coal and coke class (27 series): Coal- Anthracite, f. o. b. New York — Chestnut. Egg. Pea. Steam. Stove. Bituminous (districts in which produced) — Cartersville and Franklin, 111. (2 series). * Clinton, 111. (2 series). Eastern Kentucky (2 series). Georges Creek, Md. (2 series )v- ■ Hocking, Ohio (2 series). Mount Olive, 111. (2 series). Pittsburgh, No. 8, Ohio (2 series). Springfield, 111. (2 series). Standard, 111. (2 series). Western Kentucky (2 series). Coke- Birmingham. Connellsville. 488 HISTORY OF PRICES DURING THE WAR. 36. Petroleum and petroleum products class (5 series): Crude petroleum — California, at wells. Gulf, barrel, 42-gallon, at wells. Illinois. Mid-continent. Pennsylvania. BuiLDiNCi Materials Crottp, 3S. Clay products class (3 series): Brick, common. Tile— . ' Hollow, building. Hollow blocks, standard size. 39. Sand and gravel class (8 series): Sand- Building. Building, coke and engine. Fine building. Foundry. Fire and furnace. Glass. Molding. Gravel. 41. Cement class (G series): Cement, Portland (markets) — New York. New England and Middle States. Hlinois. Indiana. Ohio, Indiana, Illinois, and IMichigan. Western Washington. 43. Lumber class (24 series) : Douglas fir — Is and 2s, 1-inch. No. 2 and better, drop siding, 1/6. No. 1 common, SIS, 1 by 8 inch and 10-inch. Is and 2s, 2-inch. Hemlock, eastern — No. 1 boards, SIS, 1 by 8 inch by 16 feet. No. 1 fencing, SIS, 1 by 16 inch. No. 1 piece stuff, SlSlE, 2 by 4 inch by 16 feet. Timbers, rough, 4 by 4 inch to 8 by 8 inch by 16 feet. Pine, southern yellow — Finish B and better, 6-inch and wider. Common boards, No. 1, S2S, 1 by 10 inch. Common boards. No. 2, S2S, 1 by 8 inch. No. 1, SlSlE, 2 by 8 inch by 16 feet. Timbers, SlSlE, 6 by 8 inch by 16 feet. Spruce — Boards — Covered, 5-inch and up. Matched. GOVERNMENT CONTROL OVER PRICES. 489 43. Lumber class (24 series) — Continued. Spruce — Continued. Bundled furring, 2-inch. Frames — 8-incli and under. 9-inch and under. 10-inch. 11 or 12 inch. Random^ 2 by 3; 2 by 4. 2 by 8. 2 by 10. 2 by 12. . ' 44. Paints and varnishes class (1 series) : Soya bean oil . Chemicals Group. 45. Mineral acids class (6 series) : Nitrate of soda, 95 per cent. Nitric acid, 42° Baume. Pyrites, urn size, lump ore wash. Sulphuric acid — 60° Baume. 66°. Sulphur, brimstone, stick, crude. 46. Heavy chemicals class (3 series): Bleaching powder, 35 per cent chlorine. Caustic soda, 76 per cent, spot. Soda ash, light, 58 per cent, spot. 47. Miscellaneous inorganic chemicals class (2 series): Ammonia, liquid anhydrous, in cylinders. Arsenic, white. 48 . Fertilizers class (25 series) : Acid phosphate, 16 per cent phosphoric acid. Bones — Raw ground, 4 per cent ammonia and 50 per cent bone phosphate. Ground, steamed, 1^ per cent ammonia and 60 per cent bone phosphate. Carbonate of potash, calcined, 80 to 85 per cent. Cottonseed meal. Cyanamid, 22 per cent ammonia. Dried blood, 12 to 13 per cent ammonia. Fish scrap, dried, 11 per cent ammonia, and 14 per cent bone phosphate. Hoofmeal. Kainit. Manure salt. Manure salt, double, 48 to 53 per cent basis. Muriate of potash, 80 to 85 per cent. Nitrate of soda, 95 per cent. Sulphate of ammonia. Sulphate of potash, 90 to 95 per cent. Tankage — Garbage. Slaughterhouse, concentrated, 14 to 15 per cent ammonia. Slaughterhouse, crushed, 9 and 20 per cent. 490 HISTORY OF PRICES DURING THE WAR. 48. Fertilizers class (25 series) — (Continued. Phosphate rock — Florida, high grade, hard, 77 per cent. Florida land pebble, 68 per cent. Tennessee, domestic, 78 to 80 per cent. Pyrites, urn size, lump ore wash. Sulphuric acid, 60°. Sulphur, brimstone, stick, crude. 49. Soaps and glycerin class (21 series): Fats and oils — Degras, American. Grease — Brown. House. Oil- Coconut, domestic, in tanks. Com, crude, in barrels. Cottonseed, crude, in tank cars. Menhaden, southern. Palm, Images. Red. Soya bean. Whale, natural, winter. Olive. Soapstock, cottonseed oil, loose — 65 per cent f. a. 50 per cent f. a. Stearine — • White grease, loose. Yellow grease, loose. Tallow- Packers', No. 1. Packers', No. 2. Other materials — Caustic soda. Glycerine — Dynamite, carload lots, drums included. C. P., in bulk. 51. Wood distillation products and naval stores class (5 series): Acetone. Acetate of lime. Alcohol, wood, refined, 95 per cent. Methyl acetone. Ethyl methyl ketone. 52. Natural dyestuffs and tanning chemicals class (1 series): Quebracho, extract, solid. 53. Coal tar crudes, intermediates and dyes class (1 series): Toluol, pure. 56. Explosives class (9 series): Aqua ammonia, 20 per cent. Cotton linters. Glycerine, dynamite. Nitrate of soda, 95 per cent. GOVBRNMElSrT CONTROL, OVER PRICES. 491 56. Explosives class (9 series)— Continued . Nitric acid, 42° Baume. Powder, smokeless, Army and Navy, cannon, air dried. Powder, smokeless, American, cannon, water dried. Sulphuric acid, 66° Baume. Toluol. 57. Miscellaneous organic chemicals class (2 series): Carbon tetrachloride. Formaldehyde. 3. THE CHAIN INDEXES OF CONTROLLED AND UNCON- TROLLED PRICES. Perhaps no statistical measure is more significant for making broad economic interpretations of the effects of price control upon war-time prices than a series of controlled and uncontrolled price index numbers. The outstanding shortcoming of such index num- bers is, however, that no single device can be made to answer sev- eral general queries with accuracy. The so-called controlled index number for the period 1913-1918 by necessity includes commodities as controlled from the begiuning of 1913, while none were actually controlled until August, 1917, and while all did not come under con- trol until the signing of the armistice. It is, therefore, an excellent measure of the war-time price movement of the so-called controlled commodities or the uncontrolled commodities, but a crude measure of the immediate effects of each regulation as it came on. To show these effects more accurately, there has been devised a chain index of controlled prices showing each month, for all prices under control by the end of the month, the per cent of rise or fall from the prices of the identical commodities in the month preceding. There has been made, too, a like chain of uncontrolled prices. This schedule permits, by reason of its changing base, the gradual transfer of com- modities from the uncontrolled list to the controlled list. The con- trolled list, which increases from month to month, and the uncon- trolled list, which decreases in exact degree, are thus strictly accu- rate for each month. There is, so far as known, no more precise statistical measure of the immediate effects of regulation upon prices than the chain index of controlled and uncontrolled commodi- ties constructed here.^ 1 The task of constructing a chain index of 1,366 commodities from April, 1917, to December, 1918, in view of the volume of transfers from the uncontrolled to the controlled list after September, 1917, was a prodigious one. It involved the separate handling of thousands of 8 and 9 figure aggregates, which do not show in the completed index, anew each month. Some few liberties were necessarily taken, and com- binations of series were sometimes entered together during the same month in order to reduce the calcu- lations involved. Thesef ew eases were considered with care, however, audit is believed that the general result is as satisfactory as any that could be made. The chronological order in which commodities were transferred from the uncontrolled to the controlled list follows: 1917. September. — Coal, coke, copper, wheat, iron ore, pig iron, steel bars, steel shapes, steel plates. Orfo6er.— Steel blooms and billets , sheet bars ,wire rods, skelp, sugar. iVovemfter.— Steel sheets, pipe, steel scrap, tinplate, lead, com, oats, barley, fresh vegetables, vegetable nils, live stock, poultry, fish, fresh fruits, southern or yellow pine, ammonia, smokeless cannon powder. December. — Douglas fir, wood distillation products, cement, remainder of iron and steel class. 492 HISTORY OF PRICES DURING THE WAR. The chain index, which was made simply to find whether Govern- ment regulation affected current war prices, was made to begin in April, 1917. The "all WQGMTED Q1A1N INDEX TOR PRICES Of ALL COMMODITIES 1SS6 SEBIES' CONTROLLED d, UNCONTRIXLED DURING THE WAR SHOWING CliANGE5 A5 CONTROL 15 EXTCNDrD o-™575 5nracs 1566 ■'° 733 SCRIES commodities" chain index, and that for each group and class figured, contains its full lot of commodi- ties from the month of our entrance into war until the first month of regulation. The whole lot of com- modities were then separated, more and more each month as regulation was ex- tended, into those controlled and un- controlled. The "all commodities ' ' chain index in April, 1917, for example, contains 1,366 commodities. But regulation soon began and in Sep- tember the commodi- ties were separated into 50 controlled and 1,316 uncontrolled. Each month there- after, until the cessa- tion of hositilities, the extension of regulations necessitated the transfer of certain series from the uncontrolled list to the controlled list. By October, 1918, the original 1,366 uncontrolled commodities had been separated into 573 controlled series and 793 uncontrolled prices. Weighted chain index for prices.— "All commodities'' (1,366 series') controlled and uncontrolled during the war, showing changes as control is extended. (Controlled, 0-573 series; uncontrolled, 1,366- 793 series.) Jamiary.— Nitrate of soda, all fertilizers excepting sulphur and sulphuric acid. February.— Zinc, formaldehyde, toluol, arsenic, animal feeds, coffee. March. — Aluminum, binder twine, mamla fiber. April. — Spruce, hemlock, nickel, quicksilver, silver, newsprint paper, caustic soda, soda ash, bleaching powder, carbon tetrachloride. May. — Wool, hides and skins, rubber, platinum metals, manganese ore, cotton linters, quebracho. June. — Sulphuric acid, nitric acid, sulphur, harness leather. July.— Cotton goods and cotton yarns, brick, building tile, sand and gravel. August.— Woolen rags, glycerin, sole and belting leather, crude petroleum, kapok. September .—Sm waste. October. — Burlap. GOVERNMENT CONTROL OVER PRICES. 493 To repeat, the chain index of controlled and that of uncontrolled commodities for each class figured, each group, and "all commodi- ties," represents a series of percentages of the aggregate rise or fall each month by comparison with prices of the identical commodities during the preceding month. For example, when 16 additional series were brought under control in October, 1917, they were not compared simply with the 50 series that made up the list of controlled commodi- ties for September. But, in order to be strictly accurate, new Sep- tember aggregates were figured for September using the whole 66 series which by the end of October were under control. It was thus found that the weighted prices of the 66 series under control during October, by reason presumably of extended regulation, fell 14.78 per cent below the corresponding 66 price series for September, when only 50 of them were regulated. And, by the same process, it was found that the remaining 1,300 series still uncontrolled in October, rose 1.11 per cent above their own level for September. Each con- trolled commodity was taken out of the uncontrolled list and put into the controlled list in the month when control began. The chain index of controlled commodities throughout, therefore, is a comparison of prices during the month when regulation began with the prices of identical commodities in the month before, and the uncontrolled index is a comparison of prices stOl uncontrolled by the end of each month with identical series for the month preceding.^ The 1,366 commodities, which went into the "all comjuodities " chain index, each month rose steadily higher than their level of the month before until August, 1917. And from September on until the signing of the armistice the commodities that were not under control moved steadily upward in price. But each month some of these un- controlled commodities were put under regulation and there is a marked difference in the behavior of the chain index of controlled commodities. The Government had begun to control prices in earnest by September, and the September controlled prices fell 8.05 per cent below their own August level while those under control in October fell 14.78 per cent below their own September level. It is of especial note that while the uncontrolled index continued upward from our declaration of war to the signing of the armistice, the controlled index made an enormous drop at the beginning of control, and from No- vember, 1917, held relatively stable. The behavior of the food group chain index, significantly, is very like that of "all commodities " in which it has a large weighting. The clothing group chain index shows that the controlled series went somewhat higher in their monthly rises between May and September, 1 A fuller commercial description of each of the above series of commodities, which were all taken from the Price Section index number, may be had by a study of the list of controlled commodities selected previously for the controlled index number. 494 HISTORY OF PRICES DURING THE WAR. 1918, than those not under control, and then fell below. The out- standing features of the chain index for the metals group are the extent to which prices were scaled from previous heights and the strength with which they were held afterward. Metal prices, in September, 1917, were brought 9.32 per cent below their August level; in October they were brought 24.82 per cent below their September level; and in November they were brought 9.68 per cent below their October level. Metal prices, once reduced to this lower level, show scarcely the variation of 1 per cent up to the signing of the armistice. The fuels group chain index shows a fairly stable price movement except for the enormous increase of 20.9 per cent in April, 1918, the beginning of the new "coal year" when the annual contracts, under which a very large proportion of aU coal mined is sold, were reversed. GOVERNMENT CONTROL OVER PRICES. 495 D h 9 2 = 2 °z 5 < J F— ' J n ^ ob s § 1 con (OiO c oQ Off) i If < ■~~~ i< c „; 8^1 "1 — ^ -1 )3a [SIS tnSLQ Ntir'" III 33] — r _ ^0N IDO LQC * unr ~ "I'l iV — '-^jil'T? "~r _ — "~r '*> _ 2-3 2 — ) _ ^^ '\ am S M Sii. \ - NUI - 130 LdsJ TBI mi MI. — ' 1 _ V _ -ML 03a — ^ _ ~" \ IOC ini Ml ~ g^l "~ 5 _ _, at ~ ~ ^4 "" \ ~ S. 1, aJT3 3 — '^* _^ i:St5 \ VH 13C 4 j TO \ y/ ^ "~ \ ne ~ \ ■"" .,- (It S M ' r =Oc ''»•« 3dl " " is— /y 75— TT-Ji O M IIQ O BO h *-• C r1 M|g fa ".. I. S.2 g (B "" (1 Ml 3,2 «i .g-gS .a p o 49G liLSTOKY OF PRICES DURING THE WAll. X, B • Q E O lOOOOiOin -o*) lO'O'O'O 2 mM 3 . . fa t- tn "1 <) «q "? l» 7 -'? L^^ - !/■ 'uj 1 ij L._e t_2j 11 Q _!j L_B eg s 2 AOM mo J 1^ s 's onv Mm l.*M JDU \ mi ■'+J. idb ^ ' 4VU D3t , K / 030 AOW 100 f" y x^ i+*. ^ "' "^ 1> *>* .^* ini \ *'V4- -^ S "\ .0 l' 1 O n " " " ' ) 1 " ' 1 1 " bJD JS <3 GOVERNMENT CONTEOL OVER PRICES. 497 Fa III f? SEEiRz*' oQ 2 3X1 \ 2 • WW ^nf Nnr WW LDO kfiS / s ' \ 93: 1 \ MVC nnr ) 2 / J /^ i ini f^*^ •■ix. x». *»!, "«. ■"I* "fir, K>'0«1>0'0«)io")«)niOin. 'Oiflio'O'Oioioinio'oioo "JlOlOlfl lOloWlH^lin HKIolo 'r »>H '0»><0'0.I>1V) BO o^l i^ IS g si 5 ^ " 2 330 ftON > i < ^ mi \ 'i \ iju ^ VN aaj A a3d uvr 02a 1X3 d3S LX \ 5 f >, nnr \ % **» <•*>., «1.0")"l")")'"">'>«>«>" ) >) V) 10 "> V) u 1 ") >« 10 4 ^-^-o 125547°— 20 32 498 HISTORY OF PRICES DURING THE WAR. Dlr-^ li ■< QO 2 331 / f' . ■ c 2 2 1 mil ini NfU ' \ 1 uo Ids mi ". I "? 1 s 1 \ 5 J '^ tUU UK \ ax m. 330 i \ \ 130 ini Nni : \ %■ V ini »< V *: V, ' i'^ if, " ;■ oiooinoiD^ooiOrirtoootflinOinrfioorfi o WEIGHTED CHAIN INDEX TOO. PR1CE3 OP COTTON § COTTON PRODUCTS SI 5CR1E3' CONTROLLCD ^ UNCONTROLLED DURING TME VAH. SHOWING CHANGE 5 A5 CONTROL 13 EXTENDPn — CONTROLLED O "57 SERIES x'x UNCONTROLLED. 0|-">24 SERIES ■0 031 das / ■' •D3a no d3S wv unr ivu iVU uw 330 L30 d3S .++■** / "f** y r V wrtr \ f< / *<•-. '+, »•, \ \ '\ J.M '■> v^. \ onv ; "++ x- 1 s *v^^ *VW ^ »vu ■^4 k to in «0 «) ^' GOVERIS^MENT CONTROL OVER PRICES. 499 P f 1 1 2 5 1 aac Km ISO us 330 \ uss xnc a.) 2 2 >^ \ ■». -" •*iH ^ lUL S3J NHI AON ISO anv ■mi tlQ£ 130 / ■; Nni / \ ^■a "•" xao x« )<«( "■lOr V " w ) « «r ■0 "1 ■O « u ) V) V U) « 1 U ■) V) lO o 53C V / 1 A3N J.30 da? a ^ el 05 s -5 ^ t>> ^ i2 3 y i<=i s s T-! c-gg IT & « » 1913 1916 1917 i9ia J Relative prices.— Anthracite coal, chestnut.— By months, January, 1913, to December, 1918. (Aver- age quoted prices, July, 1913, to June, 1914=100.) Relative prices.— Coal, bituminous.— By months, January, 1913, toDecember, 1918. (Average quoted prices, July, 1913, to June, 1914—100.) 512 HISTORY OF PRICES DURING THE WAR. Relative prices. — Coke, Connellsville. — By months, January, 1913, to December, 1918. (Average quoted prices, Julj^ 1913, to June, 1914=100.) Relative prices.— Crude petroleum, mid-continent.— By months, January, 1913, to December, 191S. (Average quoted prices, July, 1913, to June, 1914= 100.) GOVERNMENT CONTROL OVER PRICES. 513 125547°— 20- 514 HISTORY OF PRICES DURING THE WAR. A SUMM-VRY OF ACTUAL AND RELATIVE PRICES BELOW WHICH BASIC COMMODITIES WERE FIXED. Commodity. Prewar price (July, 1913 to June, 1914). Market price when ■ control began. Government initial fixed price. Actual. Relative. Actual. Relative. Actual. Relative. FOODS. 550. 1298 .1297 9. 1022 .0859 .0607 8.3094 .4005 .0526 .0340 .8901 .1984 .1881 .1550 .0205 .2438 .4121 .5042 .0335 .1250 .0606 .2317 .3083 .0780 1.9046 .6123 .1492 3. 3083 .0418 13.3183 38. 8558 1.2600 21.7917 1.2600 1.4600 3. 4375 .0735 3. 7800 1.0900 2. 0625 .9725 1.5800 7.9167 24.8300 13. 8750 24. 2800 . 4558 .0310 .0181 2. 3183 .0085 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 2. Beef 3. Cattle 4 Com . - :::::::::;;;; ;:;: $0.1750 16. 9500 288 204 SO. 1750 15.5000 288 6. Hops, live 187 7. Oats 8. Rice .0938 .0090 2. 7875 .4040 .3110 .3425 .0487 . 7120 .6800 .9700 .1300 .5650 .2300 .7500 .7400 .2731 3.24.50 .6000 ..2545 5.0500 .0625 42. 7500 121.7500 3.8800 55. 2500 7.0500 5.1900 12. OOOO .1800 4.9000 2. 5400 11. 7500 2.2500 2. 5600 IS. 5000 32. 6200 27. 5000 46. 3700 1. 3500 .1600 .0490 4.4938 .0125 178 203- . 313 201 167 221 238 292 165 192 388 452 380 324 240 350 170 98 171 153 150 321 313 308 254 560 355 349 245 130 233 570 231 162 234 131 198 191 296 516 271 194 147 .0913 . 06005 2. 1700 .3400 .3300 .3350 .0467 .6650 .6800 .9000 .1125 .0200 .1750 .7500 .7400 .2600 / 3. 1000 t 3.5000 .6300 .2350 5.0500 .0805 33. OOOO 105. OOOO 2.9000 47. 5000 3. 2500 3.0000 7. 7500 .1500 4. 8000 2.0000 6.0000 174 9. Sugar, raw 176 10. Wheat. 244 V CLOTHING. 11. CalfsldiLS 171 12. Cattle hides 177 13. Cotton duck 216 14. Cotton lintors 228 273 16. Leather, harness 165 17. Leather, bolting . . ... 190 18. Print cloths 336 19. Rags, woolen 490 20. Sheeting 289 324 22. Wool, Buenos Aires 240 BTJBBER, PAPER, AND FIBER. 23. Manila flber 333 24. Paper, newsprint 163 25. Rubber, crude 184 103 METALS. 1.58 27. Iron, ore 153 28. Lead, pig 193 29. Pig iron, basic 248 30. Quicksilver 270 31. Steel bars .• 230 32. Steel billets 218 33. Steel plates 2.58 34. Steel stnactural shapes 205 35. Tinplate 225 36. Zinc sheets 204 FUELS. 37. Coal, anthracite 127 38. Coal, bituminous 183 39. Coke, Connells-villo 291 BUILDING MATERIALS. 41. Cement, Portland 1.8500 18.5000 32. OOOO 24.0000 45.0000 .7900 .0900 .0350 4.2250 .0090 117 42. Douglas fir 234 43. Per.nsylvPi.Tiift, TiRmlnr^lr 129 44. Southern or yellow pine 173 45. New England spruce 185 CHEMICALS. 46. Alcohol, wood 173 47. Arsenic 290 48. Caustic soda 193 49. Nitrate of soda 182 50. Sulphuric acid 106 616 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] - Food group. Cattle, Cotton- Rice, Bacon, rough sides, smoked, loose, Chicago (per lb.). Beef, good. steers. Corn, seed oil, Hogs, Oats, Hon- duras Sugar, Wheat, No. 1 native to prime heavy beeves, Chicago (per cwt.). cash, crude, in barrels, f. 0. b. mill (per lb.). live, No. 3, head, raw. North- steers, No. 3, (bulk of white, domes- 96° cen- ern fresh carcass. yellow, Chicago sales), Chicago cash, Chicago tie, clean, trifugal. New spring, Minne- Chicago (per (per (per New York apoUs (per lb.). bu.). cwt.). bu.). Orleans (per lb.). (per lb.). (per bu.). Prewar base price. . SO. 1298 $0. 1297 $9. 1022 $0.6859 $0.0507 $8. 3094 $0. 4005 $0.0526 $0. 0340 $0.8901 Made equaltc. 100 100 100 100 100 100 100 100 100 100 Market price when control began .1750 16.9500 .0938 .0690 2.7875 Found equal to . 288 .1750 204 15. 5000 178 .0913 203 .06005 313 Government price. . 2. 1700 Found equal to. 288 187 174 176 244 1913— Months- January — S.3 111 99 70 S3 90 S3 90 104 97 Febmary. . 86 99 98 71 86 98 84 90 103 98 March 88 99 98 74 87 110 82 91 104 95 April 92 99 98 81 95 106 87 93 100 99 May 96 99 95 83 97 102 95 92 98 102 June 99 99 96 89 101 103 102 96 98 103 July 10.5 97 99 90 119 109 98 102 104 101 August 101 96 98 108 110 101 105 105 110 99 September . 98 99 100 110 101 101 106 97 109 97 October 97 100 100 102 95 99 99 103 103 94 November. 97 100 98 106 99 94 99 100 • 106 95 December.. 97 100 98 100 92 93 101 95 99 96 Quarters- First 85 103 98 82 85 99 83 91 104 97 Second 96 99 96 84 97 104 94 94 99 101 Third 101 98 99 104 107 104 104 102 108 99 Fourth 97 100 99 102 96 95 100 99 103 95 Year 95 100 98 90 95 101 95 96 103 98 1914— Months- January 98 100 . 101 91 96 98 97 95 98 98 February . . 99 100 101 90 98 103 98 99 101 104 March 97 100 102 95 101 103 98 100 88 104 April May 95 101 102 99 104 102 98 100 88 102 93 102 100 102 102 99 100 101 96 105 June 98 102 101 104 103 97 100 102 98 103 July 105 104 106 104 102 108 93 102 96 101 August 111 109 110 118 89 107 105 105 168 120 September . 110 111 116 115 79 103 123 95 171 128 October 103 111 115 107 67 94 117 90 131 124 November. 97 111 112 100 75 , 92 121 83 115 130 December.. 92 110 107 94 80 87 122 94 116 134 Quarters- First 98 100 101 92 98 102 98 98 96 102 Second 96 102 101 102 103 100 99 101 94 103 Third 109 108 111 114 90 106 107 101 145 116 Fourth 97 111 111 101 74 91 120 88 121 129 Year 100 105 106 102 92 100 106 97 114 113 191&-Months— January — 91 100 101 104 91 82 134 93 119 152 February . . 91 94 94 108 98 80 144 94 138 170 March 86 91 95 105 91 81 144 94 142 165 April 86 91 92 110 91 87 143 94 141 173 May 88 94 95 111 89 89 133 94 142 177 June 90 97 102 109 86 89 122 94 144 144 July 86 101 109 114 85 85 134 92 143 156 August SO 102 108 119 86 83 112 86 140 154 September . 75 104 107 112 88 88 87 80 126 110 October 85 106 106 93 109 93 91 83 121 114 November. 92 106 109 93 113 80 92 90 140 114 December.. 94 106 106 97 120 76 105 87 145 127 Quarters- First 89 95 97 106 93 81 140 94 133 162 Second 88 94 96 110 89 88 133 94 113 165 Third 80 103 108 114 87 86 113 86 136 140 Fourth 90 106 107 94 114 83 96 87 135 118 Year 87 99 102 107 98 85 120 90 137 147 GOVEBNMElirT COIfTEOL. OVER PRICES. 517 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Food group. Bacon, rough sides, smoked, loose, Chicago (per lb.). Beef, good, native steers, fresh carcasS; Chicago (per lb.). Cattle, steers, choice to prime heavy- beeves, Chicago (per cwt.) Com, cash. No. 3, yeUow, Chicago (pe^ bu.). Cotton- seed oil, crude, in barrels f. o. b. mill (per lb.). Hogs, live, (bulk of sales), Chicago (per cwt.) Oats, •No. 3, white, cash, Chicago (per bu.). Rice, Hon- duras head, domes- tic, clean New Orleans (per lb.). Sugar, raw, 96° cen- trifugal. New York (per lb.). Wheat, No. 1 North- em spring, Minne- apoUs (per bu.). Prewar base price. Made equal to. Market price when control began — Found equal to Government price. Found equal to, 1916— Months- January — February . . March April May June .1298 100 3.1297 100 .1022 100 $0. 6859 100 July August September October November, December., Quai'ters- First Second Third Fourth Year , 1917— Months- January... February. . March April May June July August... - September October... November December. Quarters- First Second — Third Fourth Year 191&— Months- January — Febmary . . March , April May , June , July August September . October November. December.. Quarters — First Second Third Fourth Year 104 105 110 111 118 120 123 123 125 121 99 108 120 123 113 123 131 147 164 179 176 183 193 207 236 1234 232 133 173 193 234 184 204 206 203 199 191 180 200 200 206 203 203 216 204 191 202 207 201 106 106 106 106 106 109 109 106 106 106 106 106 106 107 107 106 107 106 109 115 123 123 125 126 132 146 146 1 146 144 110 124 136 146 129 135 135 135 158 173 183 185 187 189 189 189 135 172 187 189 171 104 102 106 107 111 121 118 116 119 120 126 127 104 113 118 125 114 126 130 137 143 146 147 149 160 179 181 1171 156 131 145 163 170 152 151 151 153 177 192 196 199 204 211 211 214 218 152 187 205 214 190 111 108 105 111 109 106 117 125 126 141 143 133 107 109 123 139 123 144 146 164 218 240 252 301 301 301 292 1266 244 152 235 301 265 239 240 243 228 228 216 221 234 242 226 193 189 212 236 221 234 197 .0607 100 .1750 288 .1750 288 130 136 154 168 172 154 148 150 151 175 188 185 140 165 149 182 161 181 178 197 226 242 240 213 221 238 266 282 281 187 236 225 277 231 288 288 288 2 288 288 288 288 $8. 3094 100 16. 9500 204 15. 5000 187 87 99 114 116 120 115 117 123 128 121 115 113 100 117 123 117 114 130 150 172 189 192 182 184 208 219 206 1204 205 151 188 203 205 192 199 203 203 202 198 212 226 233 2 202 2 200 2 205 198 201 224 202 206 .4005 100 121 116 104 no 109 98 101 112 115 123 139 130 114 lO.'i 109 131 115 142 141 154 175 175 169 197 161 149 150 1 163 190 146 173 167 170 164 207 221 230 222 192 191 194 174 180 173 180 179 220 201 182 178 $0. 0526 100 .0938 178 .0913 174 87 87 87 87 86 85 82 85 91 90 87 87 84 89 87 90 90 93 128 133 135 133 135 136 147 1147 151 91 133 135 148 127 151 151 162 171 172 174 il78 176 174 174 174 174 155 172 176 174 .0340 100 .0690 203 . 06005 176 137 144 166 181 189 186 185 164 163 184 183 156 149 185 171 174 170 154 152 161 183 179 178 195 214 205 1203 203 186 156 180 205 198 185 2 177 177 177 177 177 177 178 2 178 205 214 214 214 177 177 186 214 $0. 8901 100 2. 7875 313 2. 1700 244 145 144 128 137 136 125 131 167 181 197 217 198 139 133 160 204 158 125 203 223 268 335 303 290 1313 250 244 244 244 214 302 285 244 261 2 244 244 244 244 244 244 244 250 249 249 249 249 244 244 247 249 246 Government control began during month . 2 Government revised price during month. 518 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices \^'cre, pegged.] Prewar base price Made equal to Market price when control be gan Found equal to Government price Found equal to 1913— Months- January February March April May June July August September October November December Quarters- First Second Third Fourth Year 1914— Months- January February March April May June July August September October November December Quarters- First Second Third Fourth Year 1915— Months- January February March April May June July August September October November December Quarters — First.; Second Third Fourth Year Clothing group. Calfskins, No. 1 country, 8-1 ri lbs., Chicago (per lb.). $0. 1984 100 .4040 204 .3400 171 91 89 87 89 94 93 96 96 97 102 102 105 92 96 103 95 98 103 101 101 101 101 103 110 113 112 121 100 101 107 116 106 113 lis 108 89 96 100 102 IIG 103 113 117 120 113 95 107 119 109 Cattle hides, packer, heavy, native steers, Chiciigo (per lb.). $0. 1861 100 .3110 167 .3300 177 103 97 97 93 89 94 95 100 101 106 106 105 99 92 99 106 97 98 97 97 98 99 104 110 113 114 117 121 97 98 109 117 105 124 126 124 101 111 125 138 147 142 142 141 138 125 112 143 141 130 Cotton duck, Standard, U. S. Army firsts, 28§ in., 8 oz.. Commercial (per yd.). $0. 1550 100 .3425 .0487 .7120 221 238 292 .3350 .0467 .6650 216 228 273 100 122 98 100 110 100 100 122 98 100 110 100 100 110 100 100 117 98 100 117 93 100 117 98 100 110 103 100 112 109 100 112 107 100 110 107 100 100 100 100 100 100 100 100 100 100 100 90 90 90 81 81 100 100 94 84 S3 Cotton linters^ Grade D, cut 130-175, New York (per lb.). $0. 0205 100 Cotton yarn, wea\'ing, carded, white, northern mulcspun 22/1 cones, Boston (per lb.). 118 112 115 111 98 85 85 85 85 85 &5 85 55 55 49 55 89 85 75 53 70 I 08 102 I 103 i 127 ; 127 ! 195 I 77 202 70 84 198 79 84 205 82 90 327 90 90 351 94 90 * 375 98 81 91 75 77 150 77 82 201 79 90 351 94 199 SO. 2438 100 99 100 100 107 Leather harness, Grade B, Calif, oak, Chicago (per lb.). GOVEKJSTMElSrT CONTROL OVER PRICES. 519 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points- below which basic prices were pegged.] Prewar base price Made equal to Market price when control began Found equal to G-overnment price Found equal to 1913— Months- January February March April Clothing group. Leather belting, butts, medium standard tannages, Philadel- phia (per lb.). June July August September . October November . December. . Quarters- First... Second. Third.. Fourth. Year 1914— Months- January. . . February. March April June July August September . October November. December.. Quarters- Fust... Second. Third.. Fourth. Year 1915— Months- January February . . March April ,. May June July August September . October November . December.. Quarters- First... Second. Third.. Fourth. Year .5042 100 .9700 192 ,9600 190 103 103 103 103 101 101 99 99 101 101 103 102 100 101 101 101 99 99 101 101 105 109 109 109 100 100 102 109 103 111 105 111 111 111 111 121 125 135 139 139 149 109 111 127 142 Printcloths, 27 in., 64 by 60, 7.60 yds., Boston (per yd.). .0335 100 .1300 388 .1125 336 112 108 108 102 97 99 98 97 104 108 105 110 99 104 103 80 Rags, woolen, new clips, blue worsted, New York (per lb.). .1250 100 .5650 452 .6200 496 92 92 124 108 108 100 104 104 103 105 87 103 98 104 108 113 104 104 96 92 120 124 120 120 103 107 103 121 109 136 156 192 172 172 172 168 172 196 176 204 216 161 172 179 199 Sheeting, Ware Shoals,L.L. brown. New York (per yd.). .0606 100 .2300 380 . 1750 289 105 103 103 101 97 97 101 103 103 103 104 100 98 103 101 103 101 99 97 97 97 97 95 91 83 74 74 101 97 94 77 92 72 74 76 81 78 78 87 91 99 95 95 95 74 79 92 95 85 Wool, dom., Ohio, Penn., W. Va., Unwashed, fine delaine, Boston (per lb.). .2317 100 .7500 324 .7500 324 122 119 110 110 97 97 97 97 97 97 97 96 117 101 97 97 96 100 100 101 106 114 119 119 114 106 110 110 99 107 117 109 108 114 132 140 127 127 123 127 132 132 132 132 136 129 126 130 133 129 Wool, Buenos Aires 46s, shrinkage 34 per cent, Boston (per lb.). .3083 100 .7400 240 ,7400 240 123 122 120 118 117 120 122 123 120 117 110 97 122 118 122 108 117 78 81 88 89 91 94 95 96 97 99 101 110 114 117 120 122 123 127 128 130 131 133 136 114 122 128 134 124 620 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Clothing group. Calfskins, No. 1 countrv, 8-15 lbs., Chicago (per lb.). Cattle hides, packer, heavy, native steers, Chicago (per lb.). Cotton duck, standard, U.S. Army firsts, 28i in., 8oz., Commercial (per yd.). Cotton linters. Grade D, cut 130-175, New York (per lb.). Cotton yarn, wea\'ing, carded, white, northern mulespun 22/1 cones, Boston (per lb.). Leather harness, Grade B, Calif, oak, Chicago (per lb.). Prewar base price Made equal to Market price when control be- 50. 1984 100 .4040 204 .3400 171 129 125 139 141 164 164 171 164 166 181 227 271 131 156 167 226 170 239 208 202 214 232 214 227 202 174 176 202 166 216 220 201 181 205 161 163 156 181 1204 197 197 197 197 197 197 197 160 194 197 197 $0. 1861 100 .3110 167 .3300 177 124 128 122 120 133 144 145 141 140 143 109 180 125 132 142 164 141 180 171 164 164 169 177 177 172 177 181 189 188 172 170 176 186 176 176 157 141 146 1 167 177 174 2 161 161 161 2 156 156 160 164 166 158 161 $0. 1550 100 .3425 221 .3350 216 94 94 94 94 103 103 116 116 123 129 137 129 94 100 118 132 111 129 129 137 161 161 177 194 194 194 194 221 221 132 167- 194 212 176 221 221 221 221 221 221 1 216 216 216 216 221 221 221 221 216 219 219 $0. 0205 100 .0487 238 .0467 228 341 366 341 341 341 390 390 390 307 341 378 378 350 358 362 366 359 378 378 378 378 322 322 322 256 256 256 238 238 378 340 278 244 310 238 238 238 238 1228 228 228 228 228 228 228 228 238 231 228 228 231 $0. 2438 100 .7120 292 .6650 273 105 105 104 110 112 115 116 118 125 135 149 170 104 112 120 151 122 160 152 148 168 174 180 205 205 238 197 205 217 153 174 216 206 187 238 249 257 281 289 292 I 288 287 285 285 273 242 248 287 287 267 272 $0. 4121 100 .6800 165 .6800 165 1916— Months- 112 112 112 114 114 June July 119 119 119 121 121 131 155 Quarters- First 112 116 Third 120 Fourth 136 121 1917— Months— 163 163 163 163 163 163 July 163 163 September 163 163 November 163 December 163 Quarters- First 163 Second 163 Third 163 Fourih 163 Year 163 1918— Months- January 165 165 165 165 May 165 June 1 165 July 165 August 165 165 October 165 165 December 165 Quarters- First 165 165 Third 165 Fourth. 165 Year . . 165 — 1 Government control began during month. 3 Government revised price during month. GOVERNMENT CONTROL OVER PRICES. 521 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Clothing group. Leather belting, butts, medium standard tannages, Philadel- phia (per lb.). Printcloths, 27in., 64 by CO, 7.60 yds., Boston (per yd.). Rags, woolen, new clips, blue worsted. New York (per lb.). Sheeting, Ware Shoals, L.L.; brown. New York (per j^d.). Wool, dom., Ohio, Penn., W. Va., unwashed, fine delaine, Boston (per lb.). Wool, Buenos Aires 46s, shrinkage 34 per cent, Boston (per lb.). Prewar base price Made equal to Market price when control began : Found equal to Government price Found equal to 1916— Months- January February March April May June July August September . October November . December. , Quarters- First... Second. Third.. Fourth. Year 1917— Months- January... February . March. . . ; . April May June '. . July August September . October November . December., Quarters — First , Second Third , Fourth Year , 1918— Months- January. . , February . March April Jxme July August September . October.... November . December.. Quarters- First... Second. Third . . Fourth. Year 0. 5042 100 .9700 192 .9600 190 149 149 155 149 157 159 159 159 157 157 169 169 151 155 158 165 175 175 182 182 188 188 188 188 188 188 188 188 177 186 188 188 185 188 190 188 188 186 188 192 1190 190 190 190 190 189 188 191 190 0. 0333 100 ,1125 335 101 104 106 113 117 115 115 120 134 149 164 162 104 115 123 158 125 161 152 152 159 ISO 207 216 213 205 222 239 254 155 187 211 239 198 265 308 355 390 382 388 1388 371 336 336 336 287 313 387 362 316 0. 1250 100 .5650 452 .6200 496 248 276 248 236 224 224 224 220 212 188 256 252 257 228 219 232 234 276 252 254 252 250 258 258 202 256 256 296 296 261 253 259 283 264 340 340 332 332 344 360 452 1488 496 496 496 488 337 345 479 493 .0606 100 321 SO. 2317 100 2300 .7500 380 324 1750 .7500 289 324 97 140 99 140 99 145 103 145 109 145 109 145 109 149 120 161 128 155 140 158 153 170 163 186 98 142 107 145 119 152 152 171 119 152 163 196 163 211 169 220 173 231 182 240 194 304 198 317 202 322 202 326 223 324 231 324 243 324 165 209 IK^ 258 201 322 232 324 195 278 272 324 289 324 309 324 371 324 380 1324 380 319 380 324 289 324 297 319 297 319 297 319 297 293 290 324 377 322 322 322 297 311 $0. 3083 lOO .7400 240 .7400 240 136 139 143 146 149 151 152 156 162 165 169 175 139 149 157 170 154 175 178 185 190 211 227 343 343 242 240 237 240 179 211 243 239 • 217 240 240 240 240 "240 240 240 240 240 240 240 257 240 240 240 246 241- 1 Government control began during month. 622 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below whicli basic prices were pegged.] Prewar base price Made equal to j Market price when control began Found equal to Government price Found equal to 1913— Months— Januar J' February March April - May June July August September October November December Quarters- First Second Third Fourth Year 1914— Months- January February March April May June July August September October November December Quarters- First Second Third Fourth Year 1915— Months- January February , March April May June July August September October November December Quarters- First Second Third ._ Fourth Year Rubber, paper, fiber group. Manila liber, fair current shipment, New York (per lb.) SO. 0780 100 .2731 350 .2600 333 143 143 138 132 122 112 109 115 115 109 97 91 141 122 113 99 119 120 Paper, newsprint, rolls, car lots United States average (per c\Yt.) $V.9046 100 3. 2450 170 3. 1000 163 3.5000 184 101 101 101 100 101 100 101 101 100 100 100 99 101 100 100 100 100 87 100 99 100 93 100 90 100 98 100 95 99 95 100 9.5 100 03 100 95 100 S3 102 90 102 93 100 94 100 97 100 89 101 99 100 113 99 123 99 131 99 125 99 124 99 119 99 122 99 116 99 115 99 127 99 129 99 112 100 127 99 119 99 123 99 99 Rubber, crude, Hevea, first latex, crepe New York (per lb.) GOVERNMENT CONTROIi OVEK PRICES. 523 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which, basic prices were pegged.] Prewar base price Made equal to Market price when control began. Found equal to Government price. . Found equal to. 1916— Months- January . . February. March April May Jime. July. August — September. October . . . November. December. Quarters- First... Second . Third... Fourth. Year 1917— Months- January . . February. March April May June July August September. October . . . November. December . Quarters- First Second . . Third.... Fourth. . Year 1918— Months- January . . February. March April May June July August September. October . . . November. December . Quarters- First Second Third Foiuth Year Rubber, paper, fiber group. Manila liber, fair current shipment, New York (per lb.) $0.0780 100 .2731 350 .2600 333 149 175 172 166 166 159 160 156 148 143 139 173 166 164 155 152 202 205 203 235 256 308 327 329 321 321 314 349 203 266 325 328 366 350 1333 333 333 333 2 333 305 293 280 240 199 350 333 311 240 Paper, newsprint, rolls, car lots United States average (percwt.) $1.9046 100 3.2450 170 3. 1000 163 3.5000 184 100 99 100 101 102 105 108 112 115 118 116 128 100 103 111 120 108 150 162 169 168 168 167 167 167 170 167 164 162 160 168 168 164 165 170 169 170 1173 2 191 191 2 195 193 196 197 197 197 170 185 195 197 Rubber, crude, Hevea, first latex, crepe New York (per lb.) SO. 6123 100 .6000 93 .6300 103 146 140 147 136 117 105 95 95 98 102 112 129 •145 119 96 114 191 127 140 139 134 135 118 111 106 109 104 98 91 135 129 109 98 118 100 86 91 98 1103 103 103 103 103 103 100 100 92 101 103 101 99 1 Government control began, during, month. 2 Government revised price durisg month. 524 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] ' 1 Metal group. Copper, electro- lytic. New York (per lb.). Iron ore, Mcsalii, non-Bcs- scmer, 51i per cent lower lake ports (per gr. ton). Lead, pig, New York (perlb.). Pig iron, basic, Ma- honing or Shcnango Valley furnace (per gr. ton). Quick- silver, New York (per flask of 75 lbs.). $0. 1492 100 .2545 171 .2350 158 112 102 100 104 105 100 98 105 111 111 104 97 105 103 105 104 104 97 98 96 96 95 93 90 83 81 76 79 87 97 95 85 81 89 92 98 100 115 125 132 128 115 119 120 126 136 97 124 121 127 117 $3. 3083 100 5.0500 153 5.0500 153 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 103 1Q3 103 103 103 86 86 86 86 86 86 86 86 103 92 86 86 92 86 86 86 86 86 86 85 85 85 85 85 85 86 86 85 85 85 $0.0418 100 .0625 150 .0805 193 103 104 104 105 104 104 104 111 112 105 103 97 103 104 109 102 105 98 97 95 91 93 93 93 93 92 84 88 91 97 93 92 88 92 89 92 97 101 102 142 135 111 110 110 123 128 93 115 119 121 112 $13.3183 100 42.7500 321 33. OOOO 248 123 122 121 119 114 109 108 106 105 104 98 95 122 114 106 99 110 94 99 98 98 98 98 98 98 98 96 94 94 97 98 98 95 97 94 94 94 94 94 95 96 106 111 113 118 131 94 94 104 121 103 $38. 8558 Made equal to 100 121.7500 313 105.0000 Found equal to 270 1913— Months- 103 February 103 March 102 April 101 May 102 Jline. 103 July. 103 August 103 September October 101 99 November 100 December . . . 102 Quarters — First 103 Second 102 Third 102 Fourth 100 Year 102 1914— Months- 100 February Marcli . 100 99 April 98 98 June 98 July 95 August 214 September 191 October 138 November 129 December 132 Quarters- First 100 Second 98 Third 167 Fourth 133 Year 124 1915— Months- 133 February 153 March 188 April 184 May 199 246 July 249 August 236 September 230 October 244 November 278 December 347 Quarters- First 158 Second 210 Third 238 Fourth 290 Year 224 GOVEENMENT COFTEOL OVER PRICES. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below wtiich basic prices were pegged.] 525 Prewar base price , Made equal to , Market price when control began. Foimd equal to Government price Found equal to ..[. 1916- -Months — January.. February. March..".. April May June July August September. October November. . December.. Quarters- First Second Third Fourth Year 1917— Months- January February. . . March April May June July August September. October November. December.. Quarters- First Second.. . Third Fourth... Year 191S— Months- January . . February. March April June July August September. October November.. December.. Quarters- First . . . Second . Third... Fourth. Year. Metal group. Copper, electro- lytic, New York (per lb.). $0. 1492 100 .2545 171 .2350 158 162 184 184 196 200 184 172 183 189 192 216 227 176 193 182 212 191 203 236 240 216 217 218 194 182 1171 158 158 158 226 217 182 158 196 •158 158 158 158 158 158 2 174 174 174 174 174 170 158 158 174 173 Iron ore, Mesabi, non-Bes- semer, 511 per cent lower lake ports (per gr. ton). S3. 3083 100 5.0500 153 5.0500 153 107 107 107 107 107 107 107 107 107 107 107 153 107 107 107 122 111 153 153 153 153 153 153 153 153 1153 153 153 153 153 153 153 153 153 153 153 153 153 153 153 2 153 166 166 2 174 174 174 153 153 162 i 174 I 160 i Lead, pig, New York (perlb.). Pig iron, basic, Ma- honing or Shenango Valley furnace (per gr. ton). D.0418 100 .0625 150 .0805 193 142 150 171 183 178 166 152 149 163 167 168 ISO 154 176 155 172 164 183 207 220 222 244 267 256 253 208 161 1150 153 203 244 239 154 210 162 167 172 162 163 182 192 193 193 193 193 157 167 169 192 181 177 $13.3183 100 42.7500 321 33.0000 248 134 133 137 136 135 135 135 135 137 149 ISS 225 134 135 136 188 148 225 225 242 291 312 366 394 384 1321 248 248 248 230 322 368 248 248 248 248 2 240 210 240 240 240 240 2 248 248 248 248 240 240 248 244 Quick- silver, New York (per flask of 75 lbs.). $38.8558 100 121.7500 313 105.0000 270 596 730 550 361 245 188 205 192 194 204 204 206 625 265 197 205 323 209 311 292 298 273 217 277 296 289 260 264 298 270 262 287 274 274 332 309 312 1313 308 313 326 323 329 328 323 305 319 311 326 319' 319 1 Government control began during month. 2 Government revised price during month. 526 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Metal group. Steel bars, base, Pittsburgh (percwt.). Steel bil- lets, open- hearth, Pittsburgh (per gr. ton). Steel plates, tank, Pittsburgh (percwt.). Steel, structviral shapes, Chicago (percwt.). Tin plate, dom. coke, 14 by 20 in. Pittsburgh per 100-lb. base box). Zinc sheets, f. 0. b. La Salle or Peru, in. (per lb.). $1.2600 100 3. 8800 308 2.9000 230 111 111 111 111 111 111 111 111 111 110 103 97 111 111 111 103 110 95 97 95 91 90 89 89 94 94 91 88 83 96 90 92 88 91 87 87 91 95 95 95 101 103 107 113 129 139 89 95 104 127 104 $21.7917 100 55. 2500 254 47.5000 218 131 133 133 126 124 122 122 lis 110 103 94 92 132 124 117 96 117 92 96 96 95 92 89 89 93 95 92 88 87 95 92 92 89 92 87 88 89 89 89 93 103 112 123 124 125 151 88 91 113 133 106 $1.2600 100 7.0500 560 3. 2500 258 119 115 115 115 115 115 115 114 111 108 102 95 116 115 113 102 112 95 96 94 91 90 87 88 94 94 90 87 83 9o 90 92 87 90 87 87 91 95 93 91 97 100 106 113 129 139 89 93 101 127 102 1 SI. 4500 100 5. 1900 355 3. 0000 205 112 112 112 112 112 112 112 112 112 109 108 97 112 112 112 105 110 92 95 95 91 88 88 88 94 95 92 87 82 94 89 92 87 90 88 88 91 92 94 95 98 102 105 108 123 134 89 94 102 121 101 1 $3.4375 100 12.0000 349 7.7500 225 105 105 105 105 105 105 105 105 102 102 102 99 105 105 104 101 104 99 97 97 97 97 97 97 97 107 100 93 95 98 97 101 96 98 92 92 92 96 96 96 92 92 92 92 92 105 92 96 92 96 94 $0. 0735 100 Market price when control .1800 245 .1500 204 1913— Months- 122 117 112 107 104 99 July 109 109 104 102 99 Quarters— piist 117 103 Third 104 102 Year 107 1914— Months- 101 99 97 95 95 95 July 95 100 116 October 110 109 116 Quarters— Fhst 99 95 Third 104 Fourth 112 Year 102 1915— Months- January 126 Febriiary 168 March 184 192 May 260 June 398 July 367 256 September . . . 218 October 218 No vember 272 299 Quarters- First 159 Second 284 Third 280 Fourth 263 247 GOVERNMENT CONTEOL OVER PRICES. 527 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Prewar base price Made equal to Market price when control began ." Found equal to Government price Found equal to 1916— Months- January ■-.... February March April May June July August September October Norember December Quarters— Fhst Second Third Fourth Year , 1917— Months- January , February , March , April May June July August September October , November , December Quarters- First Second Third Fourth Year 1918— Months- January February March April May June July ; August September October November December Q.uarters — First Second Third Fourth . Year Metal group. Steel bars, base, Pittsburgh (percwt.) SI. 2600 100 3. 8800 308 2. 9000 230 148 163 187 198 198 l86 203 206 208 219 233 166 198 203 220 238 238 260 269 289 317 357 357 '308 230 230 230 245 292 341 230 27-7 230 230 230 230 230 230 230 230 230 230 230 221 230 230 230 227 229 Steel bil- lets, open- hearth, Pittsburgh (per gr. ton). S21.7917 100 55. 2500 254 47. 5000 218 103 170 190 206 197 195 204 213 216 220 242 262 174 20O 211 241 207 291 298 312 344 404 436 436 385 321 1254 218 218 301 395 381 230 218 218 218 218 218 218 218 218 218 218 218 207 21S 218 218 214 Steel 1 Steel, plates, structural tank, ! shapes, Pittsburgh ! Cliicago (percwt.). j (percwt.). $1.2600 100 7. 0500 560 3.2500 258 151 171 201 218 225 230 230 233 238 244 264 280 174 224 234 263 224 287 298 344 357 357 563 714 711 1560 258 258 258 426 662 258 413 258 258 258 258 258 258 258 258 258 258 258 246 258 258 258 254 $1.4600 100 5. 1900 355 3. 0000 205 163 167 177 188 191 191 191 198 201 201 218 236 169 190 197 218 236 244 255 260 316 397 424 424 1355 205 205 205 245 324 401 205 294 205 205 205 205 205 205 205 205 205 205 ' 205 197 205 205 205 203 205 Tin plate, dom. coke, 14 by 20 in. Pittsburgh (per 100-lb. base box). $3.4375 100 12. 0000 349 7. 7500 225 107 111 116 131 131 167 171 171 171 171 171 171 112 143 171 171 204 204 218 233 233 247 349 349 349 349 1225 225 208 238 349 267 265 225 225 225 225 225 225 225 225 225 225 225 218 22s 225 225 223 Zinc sheets, f. o. b. La Salle or Peru, 111. (per lb.). $0.0735 100 .1800 245 .1500 204 318 333 340 343 327 265 212 204 204 207 248 2£6 331 312 207 24 274 286 286 2S6 278 259 259 259 259 259 259 259 259 286 265 259 259 259 245 204 204 204 204 204 204 204 204 204 204 236 204 204 204 212 'Government control began during month. 628 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Fuel Group. Building Materials Group. Coal, anth- racite, chest- nut, New York (per long ton.) Coal, bitumi' nous, Pitts- burgh, No. 8 Ohio, Colum- bus and Detroit (per short ton). Coke, Con- nells- ville furnace f. o. b. ovens (per short ton). Petro- leum, Cement, Doug- las flr crude, Port- Mid- land, No. 1, IbyS by 10 Wash- ington mills (perM bd. ft.) conti- nent (Kans.- Okla.) at wells (per bbl.) domes- tic. New York (per bbl.) $0.9725 $1.5800 $7.9167 100 100 100 2.2500 2.5600 18.5000 231 162 234 1.8500 18. 5000 117 234 8.5 100 120 90 100 133 90 100 133 90 100 139 90 100 133 90 100 120 *94 100 107 102 100 107 105 100 101 105 100 101 105 100 101 105 ]00 101 89 100 128 90 100 131 101 100 105 105 100 101 97 100 116 105 100 101 107 100 101 107 100 107 102 100 101 76 100 101 76 100 101 76 100 101 76 100 107 66 100 101 56 100 95 56 100 95 56 .100 88 107 100 103 86 100 101 74 100 103 56 100 93 81 100 100 56 100 95 56 100 95 41 91 101 41 89 95 41 89 95 41 85 95 41 85 95 51 85 95 76 90 101 82 90 101 82 90 107 102 111 120 51 .97 97 41 87 95 57 86 97 89 97 109 60 92 99 Penna. hem- lock, No. 1 boards, Iby 10-16 f. 0. b. mill (per M bd. ft.) South- ern or yellow pine, com- mon boards, No. 1, S-2-S 1 by 10 inches Ark. (per M bd. ft.) New Eng- land Spruce, ran- dom, 2 by 10 Boston (per M bd. ft.) Prewar base price Made equal to Market price when control began Found equal to Government price Found equal to 1913— Months- January February March April May June July August September. October . . . NovemI)er. December . Quarters- First Second Third Fourth Year 1914— Months — January.. February. March April June July August September. October . . . November. December . Quarters— Furst... Second . Third... Fourth. Year 191.5 — Months — January . . February. March April May June , July August September. October . . . November. December . Quarters- First Second . . Third.... Fourth.. Year S3. 7800 100 4. 9000 130 4. 8000 127 107 101 101 90 92 94 96 100 103 103 103 103 104 92 99 103 103 103 103 93 95 97 99 112 105 105 105 105 103 102 105 101 105 105 104 93 94 96 99 102 104 105 106 106 104 94 102 105 102 $1. 0900 100 2. 5400 233 2. 0000 183 113 98 93 97 96 94 92 99 100 106 115 100 101 96 97 107 100 99 99 99 97 97 95 91 91 96 102 102 99 98 92 100 97 103 105 95 94 88 90 89 94 95 98 97 100 101 91 92 99 $2. 0625 100 11.7500 570 6. 0000 291 178 149 124 113 104 107 115 121 119 105 93 91 1.50 108 118 97 118 93 93 91 93 93 91 91 87 84 81 75 79 $24. 8300 $13. 8750 $24. 2600 100 79 76 76 79 79 79 85 81 81 97 115 112 77 79 82 108 100 'lOO 32.6200 27.5000 . 131 1980 32.0000 24.000 129 173 95 96 100 101 101 101 101 105 101 105 101 105 100 97 100 97 100 97 97 101 101 105 100 97 100 101 100 101 101 101 101 101 101 97 102 97 94 97 94 94 94 94 94 94 94 101 94 101 93 101 100 101 99 97 94 94 94 101 97 98 93 97 S9 97 89 97 90 101 90 101 90 101 89 101 89 101 89 101 90 130 94 130 98 130 91 97 90 101 89 101 94 130 91 107 GOVERNMENT CONTROL OVER PRICES. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged. ] 529 Prewar base price Made equal to Market price when control began Found equal to Government price Found equal to , 1916— Months- January February March April May June July August September. October . . . November. December.. Quarters - First Second Third Fourth 5rear 1917— Months- January February... March April M^y June July August September. October November. , December.. Quarters- First Second Third Fourth Year 1918— Months- January.. February. March April June. July August September. October . . . November. December . , Quarters — First Second Third Fourth Year Fuel Group. Coal anth- racite, chest- nut, New York (per long ton.) $3. 7800 100 4.9000 Coal, bitumi- nous, Pitts- burgh, No. 8 Ohio, Colum- bus and Detroit (per short ton). $1.0900 100 2.5400 109 122 115 119 140 128 106 107 112 129 113 129 129 122 106 128 122 124 130 »132 132 132 141 126 119 128 135 127 141 141 141 133 133 133 133 133 141 2 141 169 169 141 133 136 160 143 103 103 123 228 425 366 102 109 340 162 442 438 335 248 374 392 269 1269 184 184 224 224 405 338 240 211 299 224 224 224 224 2 224 2 215 219 219 219 219 219 219 224 222 219 219 221 Coke, Con- nells- viQe furnace f. o. b. ovens (per short ton). 130 233 4. 8000 2.0000 127 183 106 96 106 97 106 95 109 102 105 102 107 103 $2. 0625 100 11.7500 570 6.0000 291 139 127 145 137 115 127 127 127 133 152 279 279 137 126 129 236 157 352 364 412 352 339 461 594 485 «570 291 291 291 376 384 549 291 400 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 Petro- leum, crude, Mid- conti- nent (Kans. Okla.) at wells (per bbl.) Building Materials Group. Cement Port- land, domes- tic, New York (per bbl.) SO. 9725 100 2.2500 125 133 151 158 158 158 155 106 92 92 93 117 137 158 119 101 129 143 173 173 173 173 173 173 173 204 204 204 204 165 173 184 204 182 204 204 204 229 3 229 229 229 J 229 229 229 229 229 204 229 229 229 224 Doug- las fir com- mon. No. 1, IbyS by 10 Wash- ington mills (per M bd. ft.) 162 1.8500 117 106 106 106 106 106 106 106 106 106 106 106 120 106 106 106 110 107 122 128 128 136 136 136 134 134 134 134 134 >134 126 136 134 134 133 136 136 136 149 2 162 164 165 165 184 203 203 203 Penna. hem- lock, No. 1 boards, Iby 10-16 f. o. b. mill (perM bd. ft.) $1.5800 $7.9167 $24.8300 100 100 100 2.5600 18.5000 32.6200 234 131 18.5000 32.0000 234 129 126 133 145 145 145 139 126 120 114 114 126 139 135 143 120 126 131 145 152 152 164 208 234 234 234 234 203 208 1234 149 202 234 217 .201 234 234 234 234 234 2 234 246 246 2 246 208 208 208 136 234 159 234 170 246 203 208 167 231 99 99 100 100 100 103 103 99 100 102 100 South- em or yeUow pine, com- mon boards, No. 1, S-2-S Iby 10 inches Ark. (per M bd. ft.) $13.8750 100 27. 5000 198 24. 0000 173 130 130 130 117 117 117 123 123 123 133 133 133 130 117 123 133 126 New Eng- land spruce, ran- dom, 2 by 10 Boston (per M bd.ft.) 106 119 129 129 121 132 132 131 1131 129 129 129 2 129 137 137 137 137 131 130 132 137 132 103 137 107 137 107 137 111 191 116 191 130 191 130 184 129 184 129 184 l59 198 129 1198 128 198 137 191 184 198 177 2 202 202 202 205 205 2 205 213 213 213 213 213 213 202 205 213 213 208 $24. 2600 100 46. 3700 191 45.0000 185 107 110 110 110 110 108 107 108 113 114 118 ' 130 109 109 109 121 112 130 137 144 146 146 142 138 136 151 166 164 145 137 142 165 146 163 168 181 1191 190 188 188 188 172 190 188 188 184 1 Government control began during month 2 Government revised price during month. 125547—19 34 •■ Prices fixed Au^st lO, 1918, retroactive to May, 1918. 530 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegsed-] Prewar base price Made equal to Market price when control began Found equal to Government price Found equal to 1913— Months- January February March April May • June July August September October November December Quarters- First Second Third Fourth Year 1914— Months- January February March April May Jime July August September October November December Quarters — First Second Third Fourth Year 1915— Months- January February March April May June July August September October November December Quarters — First Second Third Fourth Year Chemicals group. Alcohol, wood, refined, 95 per cent, New York (per gal ). $0.4558 100 1.3500 296 .7900 173 110 110 110 108 108 108 108 99 99 101 101 101 110 108 102 101 105 99 110 110 99 99 99 106 101 Arsenic, white. New York (per lb.). 1.0310 100 .1600 516 «0900 290 161 153 137 133 129 113 109 109 103 103 97 101 151 125 107 100 121 93 97 97 97 97 97 97 90 161 161 145 129 95 97 116 145 129 129 129 129 129 121 121 113 121 113 113 113 129 126 118 113 Caustic soda, 76 per cent spot. New York (per lb.). i.0181 100 .0490 271 .0350 193 100 100 105 105 103 103 103 103 96 100 100 100 102 104 101 100 102 100 100 100 100 100 100 100 100 100 102 102 102 100 100 100 102 102 112 129 129 192 262 262 290 290 290 99 124 239 290 Nitrate of soda, 95 per cent. New York (percwt.). $2.3183 100 4.4938 194 4.2250 182 112 112 113 113 113 113 110 110 106 104 101 95 113 113 109 100 109 95 82 82 82 95 99 99 101 106 101 110 125 125 82 103 120 Sulphuric acid, 60° Be., New York (per lb.). GOVERNMENT CONTROL OVER PRICES. 531 RELATIVE PRICES OF FIFTY IMPORTANT COMMODITIES. [Arranged to show relative points below which basic prices were pegged.] Prewar base price Made equal to Market price when control began . Found equal to Government price Found equal to.... 1916— Months- January . . February. March April Jime. July August September. October . . . November. December . . Quarters- First... Second . Third... Fourth. Year -Months — January . . February. March April May June July August September. October November. December . . Quarters- First Second Third Fourth Year 1918— Months- January February... March April May June July August September. October November. December.. Quarters — First Second . . . Third Fourth... Chemicals group. Alcohol, wood, refined, 95 per cent, New York (per gal.). Year. $0.4558 100 1.3500 296 .7900 173 121 132 143 143 143 143 143 143 143 154 165 197 132 143 143 172 147 197 219 219 219 219 219 219 219 219 241 263 1296 212 219 219 267 229 296 296 296 199 199 199 202 201 201 201 201 201 296 199 201 201 Arsenic, white. New York (per lb.). Caustic soda, 76 per cent spot, New York (per lb.). $0.0310 100 .1600 516 .0900 290 145 161 177 210 210 202 198 194 194 185 194 234 161 207 195 204 192 266 339 403 548 581 581 581 548 681 516 548 532 336 570 570 532 502 290 516 1516 290 298 298 298 298 298 290 290 290 441 296 298 290 S0.0181 100 .0490 271 .0350 193 290 845 352 339 304 276 249 193 193 214 221 262 329 306 212 233 270 242 235 235 242 318 345 387 398 497 470 428 428 237 302 427 442 352 199 320 271 1271 249 262 214 215 235 249 235 229 264 261 222 238 Nitrate of soda, 95 per cent. New York (percwt.). Sulphuric acid, 60° Be., New York (per lb.). $2.3183 100 4.4938 194 4.2250 182 140 147 155 147 147 134 134 134 129 125 125 129 147 142 132 127 137 139 143 158 162 164 172 179 183 198 204 201 196 148 166 185 200 175 1194 191 194 221 222 194 2 213 2 216 2 208 2 187 2 190 2 190 193 213 213 $0.0085 100 .0125 147 .0090 106 235 235 235 235 176 176 118 118 118 118 118 118 235 196 118 118 167 118 118 118 118 118 118 118 147 147 147 147 176 118 118 138 156 176 206 206 206 147 1147 106 106 106 294 94 94 196 167 106 I Government control began during month. 2 Government revised price during month. 532 HISTORY OF PRICES DURING THE WAR. 5. A COMPARISON OF CONTROLLED RAW-MATERIAL PRICES WITH THE PRICES OF THEIR UNCONTROLLED MANUFACTURED PRODUCTS. The theory underlying practically all of our Government regulation over prices was that stabilization among the prices of manufactures would result from a control simply of the basic raw materials. It was appreciated, of course, that for a rigid exercise of control, regula- tion must also be extended over the products of manufactures. But, by and large, the Government was content to fix maximum prices for the basic raw materials and leave their finished products to adjust themselves in price as they would. ^ It is of especial interest, in view of this prevailing method of price fixing, to note whether the price control of raw materials actually did operate to stabilize the prices of their primary finished products. Significant bases for that sort of inquiry may be had from a compari- son of the raw-material prices for copper, iron and steel, lead, wool, rubber, hides and skins, lumber, and crude petroleum, ^ which were controlled, with certain of their manufactures which were not. Such a comparison here has been facilitated by turning the actual prices for several controlled raw materials, and their corresponding imcontrolled products, into relative prices by making their respective prewar actual prices (July 1, 1913, to June 30, 1914) equal 100. The fluctuations of copper wire followed closely those of the highly controlled electrolytic copper. The prices of chains and saws did not rise as high as those of pig iron, but those of chains especially became more stable after control of pig iron began. The fluctuations of lead pipe were almost identical with those of lead. Woolen yarn and suiting prices followed the general rise in wool prices but seem to have been stabilized after control of wool set in. The effect of a control of calfskins upon the prices of shoes can scarcely be made out from a comparison of their respective market prices. 1 The most notable exceptions to this common practice were wheat and iron and steel, the products of which were controlled in large part as well as the raw materials. 3 Crude petroleum was stabilized informally by the industry but not fixed in the same sense that the other raw materials were. GOVERl^MElSrT CONTROL OVER PRICES. 533 534 HISTORY OF PRK'ES DURING THE WAR. •lag? 536 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Prewar base price. Made equal to . 1913— Months- January . . . February. . March April May June July August September. October . . . November. December . Quarters- First... Second . Third.. Fourth . Year. 1914— Months- January . . February. March April May June July August September. October . . . November. December . Quarters — First Second Third Fourth Year 1915— Months- January . . February. March — April May June July August September.. October November. . December . . Quarters — First Second Third Fourth Year Copper. Copj)er, electro- lytic, New York (per lb.). $0. 1492 100 112 102 100 104 105 100 105 111 111 104 97 105 103 105 104 92 98 100 115 125 132 128 115 119 120 126 136 97 124 121 127 117 Copper ware, base prices, New York (per lb.). Iron and steel. Pig iron, Mahon- ing or She- nango VaUey furnace (per gr. ton). Chains, traces, wagon, western standard straight, with ring, 6*^8-2, New York (per 100 pr.). Saws, crosscut, Diston No. 2, C-foot champion tooth, Phila. (per saw) $0. 1618 $13.3183 100 100 114 123 108 122 99 121 99 119 103 114 103 109 99 108 99 106 103 105 no 104 110 98 99 95 107 122 102 114 100 106 106 99 104 110 99 94 99 99 97 98 96 98 96 98 94 98 90 98 90 98 83 98 80 96 77 94 86 94 98 97 95 98 88 98 81 95 91 97 90 94 97 94 97 94 103 94 124 94 124 95 130 96 124 106 117 HI 117 113 117 118 130 131 95 94 117 94 124 104 121 121 114 103 $32.00 100 100 100 100 ICO 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 "100 100 100 100 100 100 100 100 100 109 109 109 109 109 97 97 97 100 106 109 97 $1.7820 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Lead. Lead, pig, New York (per lb.). $0.0418 100 103 104 104 105 104 104 104 111 112 105 103 97 103 104 109 102 105 92 97 101 102 142 135 111 110 110 123 128 93 115 119 121 112 Lead pipe. New York (per cwt.). $4.8725 100 101 101 101 103 106 106 106 108 111 108 103 97 101 105 108 103 93 92 96 102 131 136 124 116 111 116 123 110 125 116 GOVERNMENT CONTROL OVER PRICES. 537 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Copper. Copper, electro- lytic, New York (per lb.). Copper wire, base prices. New York (per lb.). Iron and steel. Pig iron, Mahon- ing or She- nango Valley furnace (per gr. ton). Chains, traces, wagon, western standard, straight, with ring, 6J-8-2, New York (per 100 pr-). Saws, crosscut, Diston No. 2, 6-foot champion tooth, Phila. (per saw) Lead. Lead, pig, New York (per lb.), Lead pipe. New York (per cwt.) Prewar base price. Made equal to. -Months- January . . February. March April May June July August September. October . . . November. December . Quarters — First Second . . Third . . . . Fourth . . , Year 1917— Months- January - - February. March April May June 1918- July August September. October. .. November. December . Quarters — First Second Third Fourth.... Year -Months- January February. . March April May , June July August September. October . . . November. December . Quarters — First Second . . Third.... r ourth . . , Year $.0. 1492 100 162 184 184 196 200 184 172 183 189 192 216 227 176 193 182 212 191 203 236 240 216 217 218 194 182 1 171 158 158 158 226 217 182 158 158 158 158 158 158 158 174 174 174 174 174 170 158 158 174 173 $0. 1618 100 145 168 181 176 195 201 201 188 190 196 196 221 165 190 193 204 188 227 227 227 227 215 202 208 196 184 184 178 171 227 215 196 178 204 167 167 167 164 164 162 175 181 181 178 178 178 167 163 179 178 172 $13.3183 100 134 133 137 136 135 135 135 135 137 149 188 225 134 135 136 188 148 225 225 242 291 312 366 394 384 1321 248 248 248 230 322 368 248 292 248 248 248 240 240 240 240 240 240 248 248 248 248 240 240 248 244 $32.00 100 100 106 119 119 134 134 134 188 188 188 188 108 129 170 188 149 188 188 188 188 188 188 188 188 238 238 238 238 188 188 204 238 204 238 238 238 238 238 238 238 238 238 238 238 238 238 238 238 238 $1.7820 100 100 100 106 106 106 106 116 116 116 116 128 128 102 109 116 124 128 141 141 141 155 155 155 172 172 172 172 172 137 150 166 172 172 172 172 172 172 202 202 202 202 202 202 202 172 182 202 202 .0418 100 142 150 171 183 178 166 152 149 163 167 168 180 164 176 155 172 183 207 220 222 244 267 256 253 208 161 1 150 153 203 244 239 154 210 162 167 172 162 163 182 192 193 193 193 193 157 167 169 192 181 177 $4.8725 100 133 143 162 181 174 163 156 146 151 156 158 166 146 173 151 160 157 176 191 206 211 230 257 257 246 226 181 156 156 191 232 243 164 161 171 176 176 176 183 191 191 191 191 191 191 169 178 191 191 182 1 Government control of price began during month. 538 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. Wool. Rubber. Hides and skins. Petroleum. Wool, Woolen Woolen Rubber Petro- dom.. cloths, Rubber tires. Cattle leum, Ohio, yarn. suit- crude, pneu- hides. Men's crude. Kero- Pa., weav- ings Ilevea, matic. packer. shoes Mid- Fuel sene, W. Va., ing, 12-10 cut, J blood grade Boston, (per lb.). Middle- first plain heavy viei conti- oU, refined un- sex, latex tread, native calf, ucnt TiUsa, for washed, 15 oz. crepe. 30 by 3i steers. blu- (Kans., Okla., export. New York, (per gal.). fine 55-56 New in.. Chi- cher. Okla.) (per delaine, Boston, m.,New York, York, (per Akron, Ohio, cago, (per (per pair). at wells, bbl.). (per (per lb.). (per lb.). (per lb.). yd.). tire). bbl.). Prewar base price.. $0.2317 $0. 5725 $1.4813 $0.6123 $13.0900 $0. 1861 $3. 1375 $0. 9725 $0. 7979 $0. 0871 Made equalto... 100 100 100 100 100 100 100 100 100 100 1913-Months— ' January 122 103 106 175 115 103 99 85 135 98 February . . . 119 103 106 164 115 97 99 90 135 98 March 110 103 106 149 115 97 99 90 135 98 April 110 103 106 135 104 93 99 90 135 98 May 97 97 103 103 106 106 132 121 104 104 89 94 99 99 90 90 110 110 98 June 100 July 97 97 103 103 106 106 114 112 104 104 95 100 99 99 94 102 110 94 100 August 100 September . . 97 103 100 96 104 101 99 105 94 100 October 97 103 100 87 104 106 100 105 100 100 November. . 97 103 100 93 104 106 100 105 100 100 December. . . 96 103 100 91 97 105 100 105 100 100 Quarters- First 117 103 106 163 115 99 99 89 135 98 Second 101 103 106 129 104 92 99 90 118 98 Third 97 103 104 107 104 99 99 101 99 100 Fourth 97 103 100 90 102 106 100 105 100 100 Year 103 103 104 122 106 99 99 97 113 99 1914 Months - January 9« 103 100 97 97 97 100 105 100 100 February . . . 100 103 97 102 97 98 100 107 100 100 March 100 107 97 102 97 97 100 107 100 100 April May 101 90 97 112 97 97 100 102 100 100 106 90 97 101 97 98 100 76 100 100 June 114 90 97 93 97 99 100 76 100 98 July 119 90 97 91 97 104 100 76 72 98 August 119 90 97 139 97 110 100 76 72 95 September.. 114 90 100 96 97 113 102 66 72 95 October 106 90 100 95 97 114 102 56 60 95 November. . 110 90 100 109 97 117 104 56 60 92 December. . . 110 90 100 130 97 121 104 66 GO 92 Quarters- First 99 104 98 101 97 •97 100 107 100 100 Second 107 90 97 102 97 98 100 86 100 100 Third 117 90 98 109 97 109 101 74 72 96 Fourth 109 90 100 111 97 117 103 56 CO 93 Year 108 93 98 106 97 105 101 81 83 97 191.5— Months- January 114 90 100 119 97 124 104 56 56 92 February . . . 132 90 100 100 70 126 104 56 56 89 March 140 94 106 105 70 124 104 41 44 89 April Mav 127 94 106 99 70 101 104 41 47 87 127 123 94 94 106 106 98 102 70 70 111 125 104 104 41 41 47 47 87 tp J^ June 87 July 127 94 106 105 70 138 104 41 47 86 August 132 111 106 100 70 147 104 51 66 86 Setember 132 111 106 97 70 142 104 76 66 86 October 182 111 106 101 70 142 104 82 78 86 November. . 132 111 100 122 70 141 104 82 97 89 December. . . 136 111 109 143 70 138 105 102 119 94 Quarters- First 129 91 102 108 79 125 104 51 52 90 Second 126 94 106 99 70 112 104 41 47 87 Third 130 106 106 101 70 143 104 57 60 86 Fourth 133 111 107 122 70 141 104 89 98 90 Year 129 100 106 108 72 130 104 60 64 88 GOVERl^MENT CONTROL OVER PRICES. 539 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR UNCONTROLLED MANUFACTURES. WooL Rubber. Prewar base price. Made equal to. 1916— Months- January... February. March April May June July August September October... November. December. Quarters- First... Second. Third.. Fourth. Year Wool, dom., Ohio, Pa., W. Va., un- washed, fine delaine, Boston, (per lb.). 1917- -Months — January February . . March April MTay Jime July August September . October November . December. . Quarters — First Second Third Fourth Year 1918— Months- January February . . March April May June July........ August September . October.... November. December. . Quarters- First Second Third Fourth Year $0.2317 100 140 140 145 145 145 145 149 151 155 158 170 186 142 145 152 171 152 196 211 ■220 231 240 304 317 322 326 324 324 324 209 258 322 324 278 324 324 324 324 1324 319 324 324 319 319 319 293 324 322 322 311 320 Woolen yam, weav- ing, 12-16 cut, 1 blood grade Boston, (per lb.). $0. 5725 100 111 111 116 116 116 116 116 116 121 121 121 129 113 116 118 123 118 135 155 172 177 181 181 190 199 199 199 225 234 154 180 196 219 187 234 242 284 301 301 301 301 301 301 301 301 301 253 301 301 301 289 Woolen Cloths, suit- ings Middle, sex, 15 oz. 55-56 in. ,New York, (per yd.). $1.4813 100 109 122 129 129 129 129 132 137 141 141 147 153 120 129 137 147 133 158 173 173 182 197 213 228 243 243 243 252 252 168 197 238 249 213 255 258 258 258 276 283 283 283 283 283 283 283 257 272 283 283 274 Rubber crude, Hevea, first latex crepe, New York, (per lb.). $0.6123 100 146 140 147 136 117 105 95 95 98 102 112 129 145 119 114 119 127 140 139 134 135 118 111 106 109 104 98 91 135 129 109 98 118 100 86 91 98 1103 103 103 103 103 103 100 100 92 101 103 101 99 Rubber tires, pneu- matic, plain tread, 30 by 3i in., Akron, Ohio, (per tire). $13.0900 100 Hides and skins. 105 105 105 105 85 96 99 105 96 105 105 105 116 116 116 116 116 116 116 116 116 105 116 116 116 113 Cattle hides, packer, heavy native steers, Chi- cago, (per lb.). $0. 1861 100 124 128 122 120 113 144 145 141 140 143 169 180 125 132 142 164 141 180 171 164 164 169 177 177 172 177 181 189 188 172 170 176 186 176 176 157 141 146 1167 177 174 161 161 161 156 156 160 164 166 158 161 Men's shoes vici calf, bluch- er, (per pair). Petroleum. $3. 1375 100 107 108 110 112 115 120 120 120 120 127 127 135 108 115 120 130 118 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 151 159 159 159 174 180 191 205 207 207 207 154 164 192 207 179 Petro- leum, crude. Mid- conti- nent (Kans., Okla.) at wells, (per bbl.). 3. 9725 100 125 133 151 158 158 158 155 106 92 92 93 117 137 158 119 101 129 143 173 173 173 173 173 173 173 204 204 204 204 165 173 184 204 182 204 204 204 229 229 229 229 1229 229 229 229 229 204 229 229 229 224 Fuel oU, Tulsa, Okla., (per bbl.). $0. 7979 100 128 135 144 113 81 81 81 88 141 141 136 96 81 123 109 188 188 188 188 188 172 172 172 172 226 219 219 183 172 221 191 219 219 219 251 251 251 251 235 235 235 235 235 219 251 240 235 236 Kero- sene, refined for export. New York, (per gal.). $0. 0871 100 99 102 102 103 103 103 103 104 102 96 96 96 101 103 103 96 101 99 105 112 118 118 118 lis 119 119 119 128 139 105 118 118 129 118 144 144 146 152 153 173 174 175 178 178 194 194 144 160 175 189 167 Government control of price began during month. 540 HISTORY OF PRICES DURING THE WAR. 6. A COMPARISON OF THE PRICES OF CONTROLLED MANUFACTURED GOODS WITH THE PRICES OF THEIR UNCONTROLLED RAW-MATERIALS. It was exceptional for the Government to initiate control within any family of commodities by a regulation of the finished-product prices only. Since raw-material prices, in the main, fluctuate more violently, the common practice was to begin control by regulating the raw material. The outstanding departure from this procedure dm-ing the war was the extension of price control over cotton goods, while at no time was any control exercised over raw cotton. There are given here relative prices for cotton, upland middling, comparable with others for cotton yarn, carded, white, Northern, mule spun, 22/1 cones. The actual prewar price (July 1, 1913, to June 30, 1914) for each was made equal to 100, and the monthly actual prices from January, 1913, through December, 1918, turned into relatives upon that base. COTTON YARN, CARDED, WHITE, NORTHERN MULE SPUN, 22/1 CONES. [Controlled.] [Prewar price of $0.2438 made equal to 100.] 1913 1914 1915 1916 1917 1918 98 100 98 100 100 98 98 98 103 109 107 107 99 100 100 107 102 98 98 98 98 94 90 94 90 82 82 72 74 98 94 89 76 89" 78 78 70 78 76 76 76 79 82 90 94 98 75 77 79 94 81 105 105 104 110 112 115 116 118 125 135 149 170 104 112 120 151 122 160 152 148 168 174 180 205 205 238 197 205 217 153 174 216 206 187 238 249 257 281 289 292 July 1288 287 285 285 273 242 248 287 287 267 Year 272 1 Government control began. GOVERNMENT CONTROL OVER PRICES. 541 COTTON, UPLAND MIDDLING. [Uncontrolled.] [Prewar price of $0.1312 made equal to 100.] January.., February. March April June July August September. October November., December.. First quarter. . . Second quarter. Third quarter.. Fourth quarter. Year 1913 94 91 93 94 92 103 107 104 1914 97 98 101 100 103 103 100 91 64 53 58 58 98 102 96 58 92 1915 95 89 91 92 98 99 99 111 121 138 153 139 92 96 110 143 110 1917 134 124 142 155 158 194 199 197 173 214 228 233 134 168 190 224 1918 247 243 258 242 210 232 238 263 273 248 225 232 249 229 256 236 242 The basis for a wider generalization, perhaps, may be had from the weighted index numbers representing 57 series of controlled cot- ton goods and 24 series of uncontrolled cotton in the raw-materials stage, which also follow as made up earlier in this chapter. WEIGHTED INDEX NUMBERS OF CONTROLLED COTTON MANUFACTURES AND UNCONTROLLED COTTON RAW MATERIALS. [Prewar average aggregates made equal to 100.] Month. CONTROLLED. January February. . March April May June July August September . October November . December.. First quarter... Second quarter. Third quarter.. Fourth quarter. Year. UNCONTROLLED. January February.. March April May .... June July August September . October November . December.. First quarter... Second quarter. Third quarter.. Fourth quarter. Year . 1913 1914 1915 1916 1917 1918 103 100 83 106 158 225 103 100 84 109 157 233 103 99 85 110 161 246 102 99 87 112 169 268 101 99 89 114 172 270 100 99 89 116 184 275 99 99 91 119 193 1279 100 97 92 124 194 283 100 94 94. 128 200 269 102 89 99 140 206 270 102 85 102 153 206 270 102 84 104 160 211 267 103 100 84 108 159 235 101 99 89 114 175 271 100 97 93 124 196 277 102 86 102 151 208 269 101 95 92 124 184 263 100 96 54 94 141 238 98 98 61 95 138 244 97 103 61 91 131 248 97 98 67 95 148 261 95 100 75 95 156 234 95 102 71 100 167 225 95 102 71 103 203 235 95 102 67 104 200 229 97 72 70 120 192 264 110 64 92 128 192 261 107 52 95 148 224 240 100 56 93 161 228 227 98 99 59 93 136 243 96 100 71 97 157 240 96 92 69 109 198 243 105 57 93 145 215 243 99 87 73 111 176 242 1 Government control began. 542 HISTORY OF PRICES DURING THE WAR. 7. A COMPARISON OF CONTROLLED RAW-MATERIAL PRICES WITH THE PRICES OF THEIR CONTROLLED MANUFACTURED PRODUCTS. A study of the relative movements of important basic commodities which were regulated both in the raw-material and finished-product stages, shows the results of the more rigid controls. The important basic commodities so controlled were wheat, iron and steel, hides and skins, corn, sugar, cattle, and coal. There have bieen made ready for comparison the following combinations of raw materials and finished products of which all series were controlled: (1) No. 2 red winter wheat; standard patents wheat flour; and loaf bread; (2) iron ore, Mesabi, non-Bessemer, 51^ P^r cent; pig iron, basic, Mahoning or Shenango Valley Furnace; steel bars, steel sheets, Bessemer; and pipe, cast iron 6 inches; (3) cattle hides, heavy native steers; and, cattle hide leather, sole leather, hemlock packer slaughter, No. 1; (4) corn, yellow cash. No. 3; and corn meal, white, in bulk; (5) raw cane sugar, 96° centrifugal, duty paid; refined cane sugar, fine granu- lated; beet sugar granulated; (6) steers, choice to prime, heavy beeves; and steer rounds, No. 1 ; (7) bituminous coal, Pittsburgh No. 8 Ohio; and Connellsville coke. The relative prices of wheat and flour held close together save during 1918. Bread prices did not rise relatively as high either as wheat or flour prices, but behaved more like flour prices than wheat prices. Government control did not bring the pronounced drop in iron ore prices that it brought in pig iron prices, since iron ore prices were fixed near their market level and pig iron prices much below. The behavior of controlled raw and refined sugar prices was nearly identical. GOVERNMENT CONTROL OVER PRICES. 543 544 HISTORY OF PRICES DURING THE WAR. 1917 1 1916 1 ^ L4J Xu-. 100 - — S60 MO tJCLATlVC PRtCfiS or S20 IRON ORE PIG >«x OIPC 500 ;* J 280 260 240 JANUARY. 1SI3 "DCCCMBeRlSlO AVCCAGC QUarCD PQICU JULY 1915 "JUNC.lSl^-IO 1 r r F A r 1913 1 1914 1915 1916 1 240 uU44 444^ iiiv. 444^ -j 220 1 220 .:^ r 1 r / 120 100 ^1 i ifn —1 / i j iop_ I'— X.. -+>' • — _- 80 ao 60 krr itrmtr Wm rtt w 60 1 1915 1 ID14 1 1013 1 1046 I 1917 1910 L_ Relative prices.— Iron: Ore, Pig, and Pipe.— By months, January, 1913, to December, 1918. (Aver- age quoted prices, July, 1913, to June, 1914=100.) Relative prices. — Coal and Coke.— By months, January, 1913, to December, 1918. (Average quoted prices, July, 1913, to June, 1914=100.) GOVEENMENT CONTROL OVER PRICES. 545 SflJ,-lgP 125547°— 20- -35 546 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF CONTROLLED R.VW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Wheat, lour, and bread. Iron ore, pig iron, steel bars, sheet steel, and pipe. Cattle, hides, and sole leather. Iron Wheat, No. 2, red, winter, Chicago (per bu.). Wheat flour, stand- ard pat- ents, Minne- apolis (per bbl.). Bread, loaf. New York (per 16-oz.). ore, Mesabi, non- Bes- semer 5U per cent, lower lake ports (per gr.ton). Pig iron, basic, Ma- honing or She- nango Valley furnace (per gr. ton). Sheet bars, Bes- semer Pitts- burgh (per gr. ton). Steel, blue, an- nealed sheets, 10- gange, Pitts- burgh (per cwt.). Pipe, cast- iron, 6-inch, New York (per sh. ton). Cattle hides, packer, heavy, native steers, Chicago (per lb.). Sole leather, hem- lock, packer, slaugh- ter. No. 1, Clucago (per lb.). Prewar base price $0.9321 $4.5699 $0.0412 $3. 3083 $13.3183 $22.6750 $1.4983 $22.2258 $0.1861 $0. 3192 Madeeaualto 100 100 100 100 100 100 100 100 100 100 1913— Months- January.. 120 98 103 103 123 128 113 112 103 94 February 116 99 103 103 122 132 117 111 97 94 March 111 96 103 103 121 132 117 107 97 94 April 114 101 103 103 119 125 117 106 93 94 May 113 102 103 103 114 121 117 103 89 94 June 109 106 103 103 109 119 117 103 94 91 July 95 104 103 103 108 121 117 103 95 91 August... 93 103 103 103 106 116 113 103 100 94 Septem- ber 99 100 103 103 105 110 109 103 101 94 October.. 99 98 103 103 104 101 105 103 106 100 Novem- ber 101 98 103 103 98 95 101 103 106 100 Decem- ber...,. 103 98 103 103 95 93 100 100 105 103 Quarters- First 116 98 103 103 122 131 116 110 99 94 Second. . . 112 103 103 103 114 122 117 104 92 93 Third.... 96 102 103 103 106 116 113 103 99 93 Fourth... 101 98 103 103 99 ■ 96 102 102 106 101 Year 106 100 103 103 110 116 112 105 99 95 1914— Months- January.. 104 98 105 103 94 91 93 99 97 103 February 103 100 104 103 99 97 93 99 98 103 March 102 101 104 103 98 97 93 99 97 103 April 101 100 104 103 98 96 93 99 97 103 May 105 101 104 86 98 93 91 94 98 102 Jime 96 98 109 86 98 90 90 92 99 102 July 88 101 107 86 98 88 90 92 104 100 August... 103 121 107 86 98 93 91 92 110 100 Septem- ber 119 130 107 86 98 96 93 92 113 101 October.. 119 126 109 86 96 91 95 90 114 101 Novem- ber ' 123 129 109 86 94 87 93 90 117 102 Decem- ber 129 130 109 86 94 86 89 90 121 102 Quarters— Fu-st 103 100 104 103 97 . 95 93 99 97 103 Second. . . 100 100 105 92 98 93 92 95 98 102 Third.... 103 117 107 86 98 92 91 92 109 100 Fourth... 124 128 109 86 95 88 93 90 117 102 Year 108 112 106 92 97 92 92 94 105 102 1915— Months- January.. 149 150 115 86 94 87 87 90 124 105 February 173 169 102 86 94 87 87 90 126 105 March 164 164 141 86 94 87 87 90 124 105 April 171 169 113 86 94 88 89 97 101 102 May 168 172 115 86 94 88 90 99 111 100 June 132 144 117 86 95 90 89 100 125 100 July 125 154 119 85 96 97 88 101 138 103 August... lis 138 119 85 106 106 91 105 147 108 Septem- ber 115 117 109 85 111 112 101 110 142 110 October.. 121 121 109 85 113 115 107 114 142 114 Novem- ber 121 120 109 85 118 117 127 119 141 114 Decem- ber 132 136 115 85 131 135 151 124 138 114 Quarters- First 162 161 119 86 94 87 87 90 125 105 Second... 157 162 115 86 94 89 89 99 112 101 Third.... 119 136 115 85 104 105 93 105 143 107 Fourth... 125 126 111 85 121 122 128 119 141 114 Year 141 146 115 85 103 101 99 103 130 107 GOVEKNMENT CONTROL OVER PRICES. 547 RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Wheat, flour, and bread. Wheat, No. 2, red, winter, Chicago (per bu.). Prewar base price Made equal to 1916— Months- January.. February March April May June July August... Septem ber October.. Novem- ber Decem- ber Quarters — First Second. . . Third... Fourth.. Year 1917— Months- January.. February March. April May June July.... August.. Septem- ber October. Novem- ber Decem- ber Quarters- First.... Second. . Third.... Fourth... 1918— Months— ' January. February. March. . . April June July August.. Septem- ber October., Novem- ber Decem- ber Quarters — First Second. . . Third.... Fourth... Year $0.9321 100 138 135 122 130 124 112 124 158 165 180 194 185 132 122 149 187 147 204 193 212 265 319 283 250 242 234 233 233 205 291 243 233 244 233 233 233 233 233 233 241 240 240 240 240 248 233 233 240 242 237 Wheat flour, stand- ard pat- ents, Minne- apolis (per bbl.). $4.5699 100 145 141 129 136 135 126 133 166 184 203 215 190 138 133 161 203 159 202 198 211 254 326 304 279 232 Bread, loaf. New York (per 16-oz.). Iron ore, pig iron, steel bars, sheet steel, and pipe. Iron ore, Mesabi, non- Bes- semer 51J per cent, lower lake ports (per gr. ton). $0.0412 $3.3083 100 100 222 203 297 271 226 249 221 225 221 219 208 215 234 223 223 223 222 214 228 223 222 109 109 109 109 109 111 111 109 111 129 132 141 109 109 110 134 115 139 141 152 155 179 183 183 183 183 183 183 1155 144 172 183 173 168 155 155 155 189 189 189 189 189 185 185 185 155 189 187 185 179 107 107 107 107 107 107 107 107 107 107 107 153 107 107 107 122 111 153 153 153 153 153 153 153 153 1153 153 153 153 153 153 153 153 153 153 153 153 153 153 153 166 166 174 174 174 153 153 162 174 160 Pig iron, basic, Ma- honing or She- nango VaUey furnace (per gr. ton). $13.3183 100 134 133 137 136 135 135 135 135 137 149 188 225 134 135 136 188 148 225 225 242 291 312 366 394 384 1321 248 248 230 322 368 248 292 248 248 248 240 240 240 240 240 240 248 248 248 248 240 240 248 244 Sheet bars, Bes- semer Pitts- burgh (per gr. ton). $22.6750 100 143 150 181 198 190 185 187 203 198 212 238 259 158 191 196 236 195 280 287 300 , 331 414 463 463 414 1353 260 225 289 403 410 237 335 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 225 Steel, blue, an- nealed sheets, 10- gauge, Pitts- burgh (per cwt.). $1.4983 100 170 177 190 197 200 200 194 194 194 210 225 244 179 199 194 226 200 284 300 314 360 447 534 551 534 534 501 1296 284 299 447 539 360 410 284 284 284 284 284 284 284 284 284 284 284 270 284 284 284 279 283 Pipe, cast- iron, 6-inch, New York (per sh. ton) Cattle, hides, and sole leather. $22.2258 100 130 132 134 137 137 137 137 137 139 142 160 184 132 137 138 162 142 187 187 196 233 250 273 295 295 295 270 254 1254 189 252 295 260 249 249 249 249 249 256 276 278 278 278 305 305 305 249 260 278 305 273 Cattle hides, packer, heavy, native steers, Chicago (per 15.). $0. 1861 100 124 128 122 120 133 144 145 141 140 143 169 180 125 132 142 164 141 180 171 164 164 169 177 177 172 177 181 188 172 170 176 186 176 176 157 141 146 ^167 177 174 161 161 161 156 156 160 164 166 158 161 Sole leather, hem- lock, packer, slaugh- ter. No. 1, Chicago (per lb.). $0.3192 100 111 114 114 117 122 122 122 122 122 127 174 188 113 121 122 163 130 190 189 188 188 187 185 185 172 166 157 160 160 189 187 174 159 177 156 152 149 149 157 165 169 1169 171 172 174 175 149 157 170 174 163 1 Government control of price began during month. 548 HISTORY OF PRICES DURING THE WAR. RELATIVE PRICES OF CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Com and com- mcal. Raw cane sugar sugar, refined sugar, beet granulated. Steers and st«er rounds. Bitmninous coal and coke. Corn, cash, No. 3 yellow, Chi- cago bu.). Corn- meal, white, in bulk, Terre Haute (per cwt.). Sugar, raw, 96° centri- fugal, New York (per lb.). Sugar, refined, granu- lated, New York Sugar, stand- ard, beet, granu- lated, Chi- cago (per l6.). Steers, choice to prime, heavy beeves, Chi- cago (per cwt.). Steer rounds, No. 1, Chi- cago (per lb.). Coal, bitu- minous, Pitts- burgh, No. 8, Ohio, Colum- bus, and De- troit (persh. ion). Coke, Con- nells- ville furnace, f.o.b. ovens $0.6859 100 70 71 74 81 83 89 90 108 110 102 106 100 72 ■ 84 104 102 90 91 90 95 99 102 104 104 118 115 107 100 94 92 102 114 101 102 104 108 105 110 111 109 114 119 112 93 93 97 106 110 114 94 107 $1.6962 100 74 75 83 94 94 97 100 107 111 102 97 98 78 95 106 99 94 95 97 96 96 97 106 105 118 115 104 99 97 96 100 113 101 102 95 100 98 100 101 96 103 100 93 84 82 90 98 99 99 86 95 $0. 0340 100 104 102 104 100 98 98 104 109 109 102 106 99 104 99 108 103 103 99 101 88 87 94 99 97 154 170 131 115 117 96 94 141 122 113 119 139 143 139 142 144 143 140 126 122 143 146 133 142 137 136 137 $0.0413 100 109 101 101 99 99 100 108 112 110 101 102 99 104 100 110 101 104 95 95 92 90 96 101 102 157 165 144 119 117 94 96 141 127 114 lis 134 138 140 142 142 141 133 123 120 138 143 130 142 132 1.34 135 $0.0426 100 109 101 101 99 99 100 108 110 109 100 101 98 103 99 109 100 103 96 96 93 91 96 101 102 156 162 143 118 117 95 96 140 125 114 118 133 138 139 140 141 140 131 122 118 129 127 130 140 131 127 132 $9. 1022 100 99 98 98 98 95 96 99 98 100 100 98 98 98 96 99 99 98 101 101 102 102 100 101 106 110 116 115 112 107 101 101 111 111 106 101 94 95 92 95 102 109 108 107 106 109 106 97 96 108 107 102 $0. 1295 100 97 97 95 99 103 104 108 108 104 104 99 97 96 102 107 100 101 93 90 96 93 101 108 114 117 115 107 100 98 93 101 116 102 97 90 89 89 86 96 102 104 106 105 97 98 93 89 95 105 96 96 $1.0900 100 113 98 93 97 96 94 92 99 100 106 115 100 101 96 97 107 100 98 99 99 99 97 97 95 91 91 96 102 102 99 98 92 100 97 103 105 95 94 88 90 89 94 95 98 97 100 101 91 92 99 96 $2.0625 100 1913— Months— 178 149 124 113 104 107 July 115 121 September 119 October 105 November 93 91 Quarters- First 150 108 Third 118 Fourth 97 Vear 118 1914— Months- January 93 February 93 91 A^ril 93 May 93 June 91 July 91 August 87 September 84 October 81 75 December 79 Quarters- First 93 93 Third 87 Fourth 78 Year 88 1915— Months- 79 February 76 76 79 May - - - 79 79 July 85 81 September 81 October 97 115 112 Quarters- First 77 79 Third 82 Fourth 108 Year 87 GOVERlsTMENT COE-TROL OVER PRICES. 549 RELATIVE PRICES OP CONTROLLED RAW MATERIALS AND THEIR CONTROLLED MANUFACTURES. Com and com- meal. Raw ' sugar, refined cane sugar, beet sugar, granulated. Com, cash, No. 3, yellow, Chi- cago (per bu.). Com- Sugar, meal. raw. white. 9G° in centri- bulk. fugal, Terre New Haute York (per (per cwt.). Ib.j. Sugar, refined, granu- lated. New York (per lb.). Sugar, stand- ard, beet, granu- lated, Chi- cago (per lb.). Steers and steer rounds. Steers, choice to prime, heavy beeves, Chi- cago (per cwt.). Steer rounds. No. 1, Chi- cago (per lb.). Bituminous coal and coke. Coal, bitu- minous, Pitts- burgh, No. 8, Ohio, Colum- bus, and De- troit (per sh, ton). Coke, Con- nells- ville furnace, f.o.b. ovens (per sh. ton). Prewar base price. Made equal to. 1016— Months- January... February.. March April May June July August September. October. . . November. December. Quarters- First... Second. Third.. Fourth . Year 1917— Months- January.. February. March April May June July August September. October. . . November. December. Quarters — First Second.. Third... Fourth.. Year 191S -Months- January.. February. March April May June July , August September. October November. December. Quarters- First . . - Second. Third.. Fourth. Year 3. 6859 100 111 108 105 111 109 106 117 125 126 141 143 133 107 109 123 139 123 144 146 164 218 240 252 301 301 301 292 1266 244 152 235 301 265 239 240 243 228 228 216 221 234 242 226 193 189 212 236 221 234 197 222 .6962 100 101 102 109 104 106 117 123 123 131 148 141 100 107 121 140 117 147 149 164 221 243 243 288 328 313 302 1299 287 154 237 310 296 248 285 321 304 315 270 262 284 262 235 200 178 191 303 281 261 189 259 .0340 100 137 145 164 180 189 185 186 169 159 186 186 158 148 184 172 175 170 154 149 162 184 179 177 196 216 205 1203 203 189 156 180 205 198 185 177 177 177 177 177 177 178 178 205 214 214 214 177 17/ 186 214 $0.0413 100 139 145 160 171 181 178 182 169 154 171 178 168 148 177 169 172 .0426 100 127 141 157 169 178 179 178 165 149 166 174 164 144 176 164 168 $9. 1022 100 104 102 106 107 111 121 118 115 119 120 126 126 16/ 160 163 156 166 162 171 176 197 187 192 187 183 176 180 183 198 187 199 191 198 1 173 198 173 195 175 166 165 191 184 193 186 197 174 187 176 180 177 177 178 177 177 177 177 177 177 177 178 178 183 178 183 205 209 214 217 214 217 214 217 178 177 177 177 186 191 214 217 189 191 $0. 1295 100 97 103 106 117 116 118 119 111 106 102 104 91 113 108 118 117 124 105 115 106 126 100 130 106 137 113 14^^ 126 145 129 147 133 149 135 159 134 179 154 181 154 171 1146 156 139 131 107 144 130 162 142 170 146 152 131 151 135 151 132 Iflli 138 177 146 192 177 196 198 199 203 204 209 211 209 211 203 214 188 218 178 151 135 187 175 205 207 214 189 190 177 $1.0900 100 96 97 95 102 102 103 103 103 123 228 425 366 102 109 340 162 442 438 335 248 374 392 269 1269 184 184 224 224 405 338 240 211 299 224 224 224 224 224 215 219 219 219 219 219 219 224 222 219 219 221 $2.0625 100 139 127 145 137 115 127 127 127 133 152 279 279 137 126 129 236 157 352 364 412 352 339 461 594 485 1570 291 291 291 376 384 549 291 a 400 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 291 1 Government control of price began during month- 550 HISTORY OF PRICES DURING THE WAR. 8. A COMPARISON OF CONTROLLED PRICES AT WHOLE- SALE WITH CORRESPONDING CONTROLLED PRICES AT RETAIL. The great bulk of regulation over prices administered b}'' the Fed- eral Government during the war pertained to producer or wholesale prices. There was no real attempt, save in food and fuel, to control prices at retail. The task of controlling retail prices, infinitely more difficult than that of controlling wholesale prices, was undertaken in a comprehensive manner by the Food Administration after its whole- sale control was well underway. Since the consumer was more directly concerned with the effects of retail control, there attaches peculiar interest to the relative prices at which foods at wholesale and those at retail were held after control began late in 1917. There follows a tabulation of relative prices for 25 leading food commodities at wholesale and at retail, which were made strictly comparable by letting their respective prewar basis (average actual price for 1913) equal 100.^ 1 These relative prices were made from representative actual retail prices, quoted at various cities through- out the United States, as compiled by the Bureau of Labor Statistics. GOVERNMENT CONTROL OVER PRICES. 551 Ort cob- •>o coio 00O5 oog; ^ g; fc!:i fs9S ?3S ^!9 !SSS St; S£; :t; St; SS S2 c5S i^S SS ?5S ^?3 SS (N-* COO O CO t^ t- o T* CO Ot^ (M CO 00 00 C oo> cocg o; 00 j-00 CO C<» t— Oi 00 CO GO O C<1 0000 (MOO w lo r-.-i (MO COOT ot:- ooco jg-n COOT OTOT —10 CO-^ rfO (NO OTt-- 003 S5P^ ;i OiiO OO 03»0 IMCO OOT ^OT ^^^ ^^ )« Oth coco ri'^; 2fc; rfO (MO rp»H COCO C3» (X) )(M (NC5 CSI(M T-Hi-H i-Ht-I (M (M OTO b-i-H (M(3> OCO 05I^ oco (MCO (NrH ,-(T-l ^r-i C^,-l CON (Mt-H 00»0 C0»0 (O (M N lO NCO rl ^ 2^ Sot r-(F- S<3 ^.-H (MO 002 T(;.-i coc5 oo c3tM (MtH (M(M (MCd C<1(M (M.-I -l "-H .-I rHCO OTCO t^O T-ICO 10C<1 >Or~ T-Ht- COCO '-I'S OOt^ ooq SJ.S SS ti-ai t~r- COOT OTt^ OOT OOT th OT (»OT cog OOT oo T-Hi— I t-HtH t— (I— t Cni-h t— ii-H tHt— I C^r-4 C^r-t i-Ht"^ CSC*! C«1t-4 i— (i— t i-^ »o i-H .-) OOT »ot^ »o ■* COO ":> -^ f-< o t^t>- TT* CO oiOi i2 S fc CO-'* -^lO -^--i* CO-^ COiO CO^ 05t^ OTCO 'lit^ OTt>- cQm 22s 2 oo coio r^ o o COiO i-H CO "<^0 T— (CO (MCO IMCO -^CO -^"^ LOCO OTCO b-O t-O Ot-( tJH CO 1-4 lO -^cs coco OTO (MO CO »0 CO»C (M-H -"HrH 0 iS O ■<}( -*iO OOt:^ t^ -* COCO jO OTrv ^^ oco O t^ (M -^ tH O Utlb- N -* CO"^ »0 -^ OTCO cot* IN thm con nn ^(m con oS 10-* r-co •*■* o o thco -«" ^N <>-H (Ort Oi-H i-( T-l O-H OO .-HO NtH -*t~ CO r-l-H .-I-H (MO T-l N TfCO COrH (MN N T-l T-l O T-4 tv r^ -rti OO O T-l T-l ^ OO ION -^-H -^ »0 OTt- OTO NN tHt— I T-l-H NrH N-^ tHt-H -Ht-I OtH N-H -HCO NO Ni-I tHN »0 rH OCO NO OTO NO O Ttl t-i O tH O O t- OTCO CO -"4* CO^ ON O -H O T-1 OO OO -HO OO OO OO OTO ON t- O NO OO -T^N T-^IO lOO OO (MOT OCO T-lt- t-O OOT lOt* »OOT -^^It-I COCO O-H --I -H OO T-l O — O oc lO oo oo ON OO T-lT-1 oo oo OQ OO oo Qo oo OQ OO OO OO oo oo oo oo oo oo oo oo o 8QO oo oo oo oo OQ So !:>& OO OO OO OO ^rt ^« ^« ^« ^rt ^« ^« ^p? ^« ^« ^tf ^rt ^rt o (3 o C ?-■ n ;~> ,c o n ^ o ^' O^O So 2 §^-S fa 03 60>iC» HJ O SWM a"MMT3PHPH'SQH2sQft m p^ m w 552 HISTORY OF PRICES DURING THE WAR. en 00 05 0J ss 1 3 SS 8 s s 00 3 r- CO 1 g§ i <; -* t- RS t^ IM 000 10 CO c M-O or- 10 CM 1^ t~ .0 sa o> Ol -HOO 00 IN 00 I^ « OO! occ 00 mCM IK "^ -^ 10 U5 ;?is S^i:: as -^ s;i SS 000 or- 00 r-g 00 S8 a SJ'> o> 3 Hi or- 8SS .-(-^ ■*o OM 01 00 oco 2S Oh ^ 000 S5 SE^ 000 a 1-3 ?i,i; 10 .H 1-1 -^ Ttt^ .H 00 (MCO ^ir mm -HOO U ■^CO COCO OJ CO U5 (N I— ( r-^ OIQ co(N 1-1.-1 ^10 00 t^cn .-1 05 ,-10 05-H CMrf 1-3 r^ 1—1 1—1 02 ^^ (MiO 0^ •002 cot- ss r-(M oOTft 00 00 ^ y-^ 1-4 iH *H W r-i ^CO f-( I— ( -< IMO oo>ra to 1-1 t^p 100 CO 00 (NOl r^ Tf ooS COr-H 03 t-5 T— 1 1—4 1— ( rH tH f- CM CM »— « T-l 01 P COO tO-H or- o^H ••^<-* 0000 CT> 01 1 ss ■^00 5!S 020 too 000 SS t~oo ss SS3 • r- 000 • «ot^ CO CM >. s 1*" !-!,-( 3 >— ' >-5 ix>p 000 ss OrH ■*r- r-C5 00^ Ttl coco 00 00 ^- 00 05 «:ii o> S,: §8 gg §S 00 00 ss ss ss ss SS SS ss ss oS '"' "^ 1-1 .-I tH i-l rtrt ,-> '^A ^!^. ^!^ ^ ^ ^ tf ^ tf ^ d ^ rt ^ p: ?:« ^ e (U a> • > > -) ! ' S3 =3 • " 3 C9 o3 " C3 C3 x) •0 bo Ui u ahis -ri" -d" i?; •a i 1 60 .. • • • - 3 WiP 'X> ^ c3 >. >7r >. >->H >, >-. ?„ X ^•3 gog-c ^l1 .s .2 .>-i a 3 3 3 ao bO 50 3 m P3 « ^ % 5 w w ^ a Pi ra 1 GOVERNMENT CONTROL OVER PRICES. 553 9. A COMPARISON OF WAR PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA. The world price revolution which followed close upon the heels of the war in Europe, and the widespread control over prices which the Governments exercised, make the price student eager to measure the relative successes of our Government and foreign Governments in stabilizing prices. There are many reasons why caution must be exercised while measuring the effects of regulation upon domestic and European prices. The paramount difficulty, which can never be entirely overcome or discounted, is that Europe went to war and began her control nearly tliree years ahead of the United States. The United States, which did not set maximum prices until the price level had reached a high point, had by far the easier control problem. There are, despite these difficulties, certain devices which help to measure the relative rises of prices here and abroad during their various control periods. It is not permissible statistically to judge the relative degrees of stabilization that were brought to various price levels, except by a comparison of identical prices. The difficulty of finding foreign quotations, not to mention that of weighting the few available, makes expedient the rejection of the Price Section index number for this country and the maldng anew of one to match each foreign index number constructed. There were compiled, as the basis for making American index nmnbers, 150 commodity prices for England; 44 for France; 36 for Italy; and 270 for Canada. These actual prices, after reducing them to their smallest monetary unit but without assigning weights, were turned into relative prices by letting the average pre- war (July 1, 1913, to June 30, 1914) actual price of each series equal 100. They were then matched by a like number of corresponding price series for the United States which also were turned into relatives. The resulting set of index numbers for each country, made from the medians of relative prices, is strictly comparable with the corre- sponding set of index numbers made from corresponding prices in the United States. The comparison of prices in England and the United States, made more in detail by the separation of food, iron and steel, clothing, and chemical prices from the two index numbers, is much the most significant of these studies: 554 HISTORY OF PRICES DURING THE WAR. Listing in Detail of Each Series op Foreign Prices from Which Various Foreign Index Numbers Were Made, and for Which Identical Series of Domestic Prices Were Chosen to Make Strictly Comparable Index Numbers FOR THE United States. united kingdom. [150 commodities.] Acetone. Acid, muriatic Tw. Acid, acetic, 60 per cent. Acid, carbolic, crystals, 34/35°. Acid, nitric, 80°. Acid, oxalic. Acid, sulphuric, 168°. Acid, tartaric, powder. Alumina, sulphate of, pure. Ammonia, anhydrous. Ammonia, sulphate of. Aniline oil, pure. Arsenic, white, powdered. Bacon, Canadian, green sides. Barley, British Gazette price. Barium, sulphate of, native levigated. Beans, English. Beef, British. Benzol, 50/90 per cent. Bleaching powder. Brass sheets. Burlap, bags, Chilean oats and barley. Butter, British, first quality. Cabbages. Calcium, chloride of. Casein. Cattle, store, shorthorns, yearling. Cement, Portland. Cheese, Canadian. Coal, anthracite, best malting. Coal, Lancashire, best house. Coal, steam, best Lancashire. Coal, steam, smalls, best Cardiff. Cocoa, Grenada, good to fine. Coffee, Costa Rica, good to fine. Coke, furnace, best. South Wales. Copper, English selected. Copper, standard. Copper sheets, sheathing and rods. Copper, sulphate of. Copper wire. Copperas, gi-een, in bulk. Cotton, American, middling. Cotton, cloth, 32-inch printed, 116 yards, 16 by 16, 32/50. Cotton cloth, 32-inch shirtings, 76 yards, 19 by 19, 32's/40's. Cotton yarn, 60's twist, Egyptian. Cotton yarn, 40's weft. Creosote, ordinary good liquid. Ducks, London, live. Eggs, British, first quality. Flour, wheat. Town Household. Fowls, live. Fustic, Jamaica. Gambier. Glue, best bone (bone liquid glue). Glycerin, industrial, S. C, 1,260°. Hams, American, green, long cut. Hay, best. Hemp, manila. Hides, cattle, 50/59. Hides, cattle, 60/69. Hides, cattle, 70/79. Hides, cattle, dry and dry salted. Central American. Hides, cattle, salted, Australian. Hogs, porkers. Indigo, Bengal, good red violet. Iron, bars, unmarked, South Stafford- shire. Iron bars, Welsh ports. Iron hoops, ordinary bedstead. Iron, pig, Middlesborough, good marked bars. Lamb, Argentine. Lard, American, boxes. Lead, acetate of, white. Lead, carbonate of (white lead), pure. Lead, nitrate of. Lead, red. Lead, soft, foreign. Lime. Lime, acetate of, gray, 80 per cent. Logwood, Campeche. Lumber, Dantzig and Memel. Magnesium, sulphate of. Mutton, Argentine, frozen. Mutton, English. Oatmeal, Aberdeen. Oats, British Gazette price. Oil, coconut, crude. Oil, cottonseed. Oil, linseed. GOVERNMENT CONTROL OVER PRICES. 555 Onions, Valencia. Petroleum, American. Pork, British. Potassium, bichromate of. Potassium, chlorate of. Potassium, muriate of. Potassium, nitrate of. Potassium, permanganate of. Potassium, sulphate of, 90 per cent. Potatoes, English. Rice, Bassein. Rubber, Para, fine hard. Sheep, fat stock, Welsh. Shellac, T. N. orange, fair. Silk, Cossimbuzzar, raw. Silk, Italian. Silk, Japan. Silver, metal. Skins, calf, 12/16. Skins, calf, light. Skins, kip, first quality. Soda, ash, carbonated, 58 per cent (am- monia alkali) . Sodium, bicarbonate of, crystals. Sodium, borate of (borax), crystals. Sodium, hydrate of (75 per cent C. soda). Sodium, nitrate of, 95 per cent. Sodium, silicate of (liquid 100° Tw.). Sodium, sulphate of (salt cake). Sodium, sulphide of, cone. Steel, rails, heavy. Steel, sheets, doubles. Steel, sheets, galvanized, flat, annealed, 18 g.. South Wales. Steel, strip, mild Siemens, for nails, hinges, etc. Sugar, cane (West Indian sirups). Sulphur, brimstone, best thirds. Tallow, imported. Tea, Congow. Tin, English ingots. Tin plates, Bessemer steel coke or Sie- mens (coke finish). Tobacco, Virginia leaf (in bond). Turpentine, American. Veal, British, first quality. Wheat, British Gazette price. Wood pulp, chemical, soda unbleached. Wood pulp, chemical, sulphite, bleached, good quality. Wood pulp, mechanical, 50 per cent moist, unwrapped. Wool, Cape firsts. Wool, good Victoria. Wool, domestic, Lincoln hogs. Wool, domestic, Scotch blackface. Wool, Shropshire hogs. Wool, tops, colonial, 40's prepared. Wool, tops, colonial, 50's. Wool, tops, colonial, 60's, super. Wool, tops, colonial, 70's. Wool, yarns, 2/48 white botany. Wool, yarns, 3/12 white scoured hosiery (40's). Wool, yams, 2/32's, worsted crossbred. Wool, yarns, 2/40's, worsted crossbred. Zinc, pig (spelter), ordinary foreign. Zinc, sulphate of. [44 commodities.] Acid, hydrochloric. Acid, sulphiu-ic. Ammonia, sulphate of. Barley. Beef, first to third quality, dressed. Butter, from all sources. Cocoa, Haiti. Coffee, Santos, Copper, ingots, for manufacturing of brass. Cotton, Louisiana ordinary. Flour, Corbell brand. Gasoline, mineral. Glycerin, lixivation. Glycerin, saponification.' Hay. Lard, American. Lead, various origins. Lime, chloride of. Mutton, first to third quality, dressed. Oats, black (or gray). Oil, colza. Oil, linseed. Oil, palm. Petroleum, refined. Pork, first to third quality, dressed. Potatoes. Rice, Saigon, importation. Rubber, fine, Para. Rye. Silk, raw, Cevennes, second class, 12/16. Soap, white, pure, olive oil. Soda, carbonate of. 556 HISTORY OF PRICES DURING THE WAR. Soda, caustic, salts of (for manufacturing). Soda, nitrate of. Straw. Sugar, refined, beet, first quality. Superphosphate. Tallow, native, fresh melted. Tin, English, from Cornwall. Tin, Sti-aits Settlements. Wheat, national. Wine, Rousillon, 10-11°. Wool, Buenos Aires. Zinc, of Silesia. [270 commodities.] A listing of the specific series which went into the making of this index niunber, which is of less importance for the purposes of this inquiry than those previous, may be had ])y reference to the index number made by the Canadian Department of Labor. The medians of relative prices of 150 identical commodities in England and the United States, show that English prices rose earlier and higher than American prices. While England had a more difficult control problem, because she started regulation before prices had adjusted themselves to the war pressure, the general rise of English prices was not stopped by regulatory measures. The level of American prices, after this country began control, shows a marked stability by comparison with the continued British rises. Food prices were held relatively much lower in the United States than in England, as were chemical prices. The prices of iron and steel, on the other hand, were stabilized on a somewhat lower level relatively in England than in the United States. The prices of clothing rose and fell relatively about the same in England and the United States though the rise and fall were both slightly earlier in this country than in England. The medians of relative prices of 44 identical commodities in France and the United States, show that French prices rose earlier and much higher than American prices. The American prices of these selected commodities, unlike those of the corresponding prices for France, turned downward early in 1918. The behavior of Cana- dian and American prices was curiously sijnilar, though Canadian prices rose slightly higher. GOVERNMENT GONTKOL OVER PEIOES. 557 |gi Mb. :^ 558 HISTORY OF PRICES DURING THE WAR. 8 S "~i: -a <8 n fl «§ o 2 M " \S o2 .2 _ CO >" it Si »-< ca-^ ^ 4) m"o lO R H (9 GOVERNMENT CONTROL OVER PRICES. 559 560 HISTOKY OF PRICES DURING THE WAR. ACOMrARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA. [Medians of relative prices of identical lists of commodities figured by makins the price from July 1, 1913, to June 30, 1914=100.] ::^lass and series. Ml commodities. Food. Iron and steel. Clothing. Chemicals. Date. (150) (34) (9) (29) (55) Eng- United Eng- United Eng- United Eng- United Eng- United land. States. land. States. land. States. land. States. land. States. 1913— Months- January 101 101 102 94 113 114 99 105 100 100 February.. . 102 101 103 99 113 115 99 105 100 100 March 101 101 105 99 112 115 99 105 100 100 April 101 101 105 100 112 113 99 102 100 ion May 101 101 100 100 103 103 98 97 112 111 111 111 100 101 99 99 100 100 100 June 100 July 101 100 100 101 102 102 100 99 109 105 111 109 101 100 98 98 100 100 100 August 100 September.. 101 101 102 101 106 103 100 100 100 100 October 101 101 101 101 101 103 101 103 100 100 November. . 100 100 100 100 99 100 100 102 100 100 December. . . 100 100 100 99 98 97 98 99 100 100 Quarters- First 101 101 103 97 113 115 99 105 100 100 Second 101 100 104 98 112 112 100 100 100 100 Third 101 101 102 100 107 108 100 99 100 100 Fourth 100 100 100 100 99 100 100 101 100 100 Year 101 101 102 99 108 109 100 101 100 100 1914— Months- January 100 99 100 100 98 ■ 95 98 97 100 100 February. . . 100 99 100 100 98 98 98 99 100 100 March 100 100 100 100 96 98 101 101 100 100 April 99 99 98 98 98 96 101 100 100 100 May 99 99 99 99 97 98 99 . 98 98 96 93 92 101 102 99 100 100 100 100 June 100 July 98 100 99 100 96 102 98 102 97 97 91 95 100 99 100 100 100 100 100 August 100 September . . 100 100 105 103 103 95 98 100 109 100 October 102 100 103 102 104 93 101 97 119 101 November. . 102 100 104 103 104 93 96 100 114 lOL December. . . 105 100 105 101 104 90 92 100 117 102 Quarters- First 100 99 100 100 97 97 99 99 100 ion Second 99 99 9? 98 97 94 101 100 100 10( Third 99 100 101 101 99 94 99 100 103 IOC Fourth 103 100 104 102 104 92 96 99 117 101 Year 100 100 101 100 99 94 99 99 105 IOC 1915— Months- January 107 100 110 100 104 89 90 103 121 lOi February... 111 100 113 103 112 90 99 107 123 101 March 117 101 110 104 117 91 103 112 126 lor April 119 102 126 100 127 91 106 104 130 111 Mav 124 131 102 105 123 125 99 97 127 140 91 92 106 108 108 110 137 145 115 T "^ .... June lU Juiy 130 133 111 112 120 123 99 101 143 145 93 99 116 117 115 116 150 155 12" August 13 September . . 137 110 127 97 141 103 116 117 158 14; October 137 113 128 100 140 110 117 118 168 14' November . . 137 116 130 99 152 120 114 119 187 16( December. . 147 123 133 102 180 129 114 120 201 16" Quarters- First 112 100 114 102 111 90 97 107 123 10. Second 125 103 125 99 131 91 107 107 137 11' Third 133 111 123 99 143 98 116 116 154 IS Fourth 140 117 130 100 157 120 115 119 185 15; Year 128 108 123 100 13R 100 100 112 150 12- GOVERISTMEI^T CONTROL OVER PRICES. 561 A COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA— Continued. [Medians of relative prices of identical lists of commodities figured by making the price from July 1, 1913, to June 30, 1914=100.] Date. Class and series. Allcommodities. (150) Eng- United land. States. Food. (34) Eng- land. United States. Iron and steel. (9) Clothing. (29) Eng- land. United Eng- States land. 147 124 15S 126 165 127 167 128 167 130 167 139 171 139 171 138 171 148 171 153 188 161 218 167 157 126 167 132 171 142 192 160 172 140 222 168 226 168 243 170 261 175 289 184 325 190 357 196 357 200 349 201 289 206 250 212 250 230 230 169 292 183 354 199 263 213 285 191 250 236 250 242 250 245 250 249 250 243 250 243 251 258 251 223 251 223 251 230 251 205 251 205 250 241 250 245 251 235 251 213 251 234 United States. Chemicals. (55) Eng- land. United States. 1916— Months- January. . . February . March April May Jiuie July August September October. . . November . December. Quarters- First Second Third Fourth Year 1917— Months- January... February. March April May June July August September October... November December. Quarters — First Second Third Fourth Year 1918— Months- January. . . February. March April May....... June July August September October... November , December. Quarters — First Second Third Fourth.... Year 125547°— 20- 151 158 164 166 171 172 167 167 173 177 186 196 158 170 169 186 171 198 198 206 206 214 216 214 211 215 222 226 237 201 212 213 228 214 ■ 238 239 239 241 241 241 242 239 245 249 245 245 239 241 242 246 242 128 132 139 145 146 145 144 149 148 154 164 176 133 145 147 165 148 181 187 195 202 206 206 205 206 206 204 207 209 205 206 207 202 209 211 207 213 208 199 202 209 209 210 210 207 209 207 207 209 208 139 137 141 150 155 153 148 151 155 157 158 166 139 153 151 160 151 172 186 188 193 203 202 198 197 197 194 201 199 182 199 197 198 204 204 203 220 216 225 226 232 234 234 227 231 204 220 231 231 108 113 111 115 114 113 115 117 123 124 129 127 111 114 118 127 117 137 146 149 165 178 169 157 155 164 170 173 187 144 171 159 177 182 195 192 199 190 186 187 200 201 206 209 208 190 192 210 219 231 225 225 225 225 225 227 234 199 225 225 229 219 240 240 210 206 218 241 241 231 231 222 222 222 230 222 234 222 222 222 222 222 222 222 222 220 218 216 216 216 222 222 220 216 123 126 132 134 136 141 142 142 143 147 160 175 127 137 142 161 179 185 189 187 194 210 216 212 209 218 240 246 184 197 212 235 207 247 250 251 239 212 232 225 203 203 203 190 185 249 228 210 193 204 207 226 230 235 255 255 261 261 255 264 255 212 240 259 258 242 255 262 286 286 293 293 289 288 289 296 302 302 268 291 289 300 202 314 312 312 326 326 326 307 321 336 300 283 309 321 318 306 314 183 208 208 250 250 250 233 216 200 190 193 192 200 250 216 192 214 192 192 205 235 240 235 229 239 239 247 244 237 196 237 236 243 240 240 240 236 247 247 213 228 230 250 251 233 240 243 224 245 238 -36 562 HISTOEY OF PEICES DUEIXG THE WAE. ACOMP.VKISON OF INDEX NUMBERS OF WHOLESALE PIUCES IN THE UNITED STATES, ENGLAND, FIIANCE. AND CANADA— Contiaued. [ileliaus of relative prices of identical lists of commodities fiinared by making tlic price from July 1, 1013, to June 30, 1914=100.] All commodities class. Series 41. Series 270. France. United States. Canada. United States. 1913— MoBths— 102 102 101 102 102 102 100 102 102 101 100 100 102 102 101 100 101 100 100 100 98 100 100 100 98 98 99 99 104 100 99 99 101 100 105 106 113 111 107 106 114 118 127 130 141 153 108 108 120 141 119 100 100 100 100 100 100 100 101 103 103 101 99 100 100 101 101 101 99 100 100 99 100 99 97 99 108 99 97 99 100 99 101 98 100 100 100 103 101 99 100 102 102 96 98 102 116 101 100 100 105 102 101 100 100 100 100 100 99 99 99 99 100 101 100 100 99 100 100 101 101 101 101 100 100 99 100 104 102 101 101 101 100 101 102 101 102 105 107 106 109 110 111 112 111 112 117 119 105 109 111 = 116 110 103 102 102 101 May 100 100 July - 100 101 102 102 102 101 Quarters- First. 102 100 Tliird 101 Fourth . - 102 101 191d— Months— 100 100 99 April 98 97 June — July 97 97 101 101 99 November . 98 98 First ... 100 97 Third Fourth. . . 100 98 99 100 100 March 100 100 May - 100 100 102 102 September . 102 104 107 December. . 111 Quarters- 100 100 102 Fourth 107 102 GOVEENMEISTT CONTROL OVER PRICES. 563 ^ COMPARISON OF INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ENGLAND, FRANCE, AND CANADA— Continued. [Medians of relative prices of identical lists of commodities fisured by maldng the price from July 1, 1913, to June 30, 1914=100.] All commodities class. Series 44. France. United States. Series 270. Canada. United States. 1916— Months- January.. . February . .March..".. April May Juno July August September October... November December. Quarters — First Second Third Fourth.... Year 1917— Months- January. . . February. March April May June July August September October... November . December. Quarters- First Second Thu-d Fourth.... Year 191S— Months- January... February . . March April May June July August September, October November . December. . Quarters — First Second Third Fourth Year 160 162 165 167 170 170 161 163 172 177 183 189 162 169 165 183 170 226 127 128 129 132 134 123 125 132 134 138 151 150 128 130 130 146 134 176 238 201 191 238 212 194 247' 219 198 265 223 198 251 210 203 257 194 207 255 209 209 293 187 209 297 206 210 297 178 213 266 179 214 297 188 213 241 211 194 261 209 203 282 201 209 287 182 213 201 127 130 131 133 135 135 133 133 135 139 148 153 129 134 134 146 136 186 150 157 187 150 162 184 165 166 208 171 170 229 179 180 238 172 182 265 179 183 256 186 182 255 174 181 227 192 180 227 195 186 245 200 189 186 155 161 225 174 177 259 180 182 233 196 185 176 205 115 118 121 123 123 122 123 125 127 132 141 144 118 123 125 139 126 148 151 156 170 178 183 189 187 186 182 183 •182 152 177 187 182 185 187 188 191 190 189 193 196 201 201 201 203 187 190 197 202 BOOK II GOVERNMENT REGULATIONS RELATING TO PRICES 565 1. INTRODUCTION. The substance of all known formal and informal regulations relating to prices, tliat were issued by the Government during the war, has been put here into compact form. The regulations compiled and digested make up Book II of the study on " Government Control Over Prices," The Government issued thousands of regulations during the war relating to production, conservation, curtailment, priority, transportation, and pur- chase which affected prices indirectly but are not here recorded. This digest does not comprehend other controls than those which pertain strictly to prices. An endeavor has been made even to cut away parts of regulations, where the whole regulation was not relevant to price control. The body of separate regulations that appear are classified alphabetically, under one or another of the following main commodity groups : Foods ; fuels ; metals and metal products ; textiles and fibers ; hides, skins and leather ; lumlier ; building materials ; chemicals ; rubber ; and paper. There remained two alterna- tive methods of arrangement each with its advantages — a classification of regu- lations under the Government agencies exercising them, and a classification chronologically by the dates of their issue. The former alternative proved not feasible since frequently the same commodity was controlled by various boards at different times. Its advantages, moreover, can be had by reference to the main part of this investigation where the commodity controls are discussed under the boards exercising them at the signing of the armistice. The latter alternative had only a slight advantage to recommend it. It should be noted that, although the regulations are listed alphabetically, it is possible to find quickly the date of each regulation and the Government agent exercising it. The Government has not heretofore attempted any compilation of war- time regulations over prices, and it is inevitable that this one will present slight omissions. The most serious of these are the many informal agreements per- taining to prices which commodity chiefs made with their industry, and of Avhich no records remain. The Government regulations which are printed here include all that were found in the official sources of price regulation, and many others that were discovered by correspondence and by searching through the files left over from the war. The compilers have not felt obliged to include all differential prices, which the industry calculated and printed with Government approval. These differ- entials represent simply prices figured to make various grades of goods sell in scale with the base prices fixed by the Government, 567 2. FOODS. The Congress passed the food and fuel control act (Public, No. 41, 65th Cong.) on August 10, 1917, and thereby gave the President power to bring under license control virtually all large dealers in foodstuffs.^ The President, by a * There follows in full a copy of the provisions of the food and fuel act of Aug. 10, 1917 (Public, No. 41, 65th Cong., H. R. 4961), which relate to food control. An Act To provide further for the national security and defense by encouraging the production, conserving the supply-, and controlling the distribution of food products and fuel. Be it enacted ty the Senate and House of Representatives of the United States of America- in Conoress a^semhled, That by reason of the existence of a state of war, it is essential to the national security and defense, for the successful prosecution of the war, and for the support and maintenance of the Army and Navy, to assure an adequate supply and equitable distribution, and to facilitate the movement, of foods, feeds, fuel including fuel oil and natural gas, and fertilizer and fertilizer ingredients, tools, utensils, imple- ments, machinery, and equipment required for the actual production of foods, feeds, and fuel, hereafter in this Act called necessaries ; to prevent, locally or generally, scarcity, monopolization, hoarding, injurious speculation, manipulations, and private controls, affecting such supply, distribution, and movement ; and to establish and maintain govern- mental control of such necessaries during the war. For such purposes the instrumen- talities, means, methods, powers, authorities, duties, obligations, and prohibitions herein- after set forth are created, established, conferred, and prescribed. The President is authorized to make such regulations and to issue such orders as are essential effectively to carry out the provisions of this Act. Sec. 2. That in carrying, out the purposes of this Act the President is authorized to enter into any voluntary arrangements or agreements, to create and use any agency or agencies, to accept the services of any person without compensation, to cooperate with any agency or person, to utilize any department or agency of the Government, and to coordi- nate their activities so as to avoid any preventable loss or duplication of efforts or funds. Sec. 3. That no person acting either as a voluntary ur paid agent or employee of the United States in any capacity, including an advisory capacity, shall solicit, induce, or attempt to induce any person or officer authorized to execute or to direct the execution of contracts on behalf of the United States to make any conrtaet or give any order for the furnishing to the United States of work, labor, or services, or of materials, supplies, or other property of any kind or character, if such agent or employee has any pecuniary interest in such contract or order, or if he or any firm of which he is a member, or cor- poration, joint-stock company, or association of which he is an officer or stockholder, or in the pecuniary profits of which he is directly or indirectly interested, shall be a party thereto. Nor shall any agent or employee make, or permit any committee or other body of which he is a member to make, or participate in making, any recommendation concerning such contract or order to any council, board, or commission of the United States or any member or subordinate thereof, without making to the best of his knowledge and belief a full and complete disclosure in writing to such council, board, commission, or subordinate of any and every pecuniary interest which he may have in such contract or order and of his interest in any firm, corporation, company, or association being a party thereto. Nor .shall he participate in the awarding of such contract or giving such order. Any willful violation of any of the provisions of this section shall be punishable by a fine of not more than $10,000, or by imprisonment of not more than five years, or both : Provided, That the provisions of this section shall not change, alter or repeal section forty-one of chapter three hundred and twenty-one. Thirty-fifth Statutes at Large. Sec. 4. That it is hereby made unlawful for any person willfully to destroy any necessaries for the purpose of enhancing the price or restricting the supply thereof ; knowingly to commit waste or willfully to permit preventable deterioration of any neces- saries in or in connection with their production, manufacture, or distribution ; to hoard, as defined in section six of this Act, any necessaries ; to monopolize or attempt to monopo- lize, either locally or generally, any necessaries ; to engage in any discriminatory and unfair, or any deceptive or wasteful practice or device, or to make any unjust or unrea- sonable rate or charge, in handling or dealing in or with any necessaries ; to conspire, combine, agree, or arrange with any other person, (a) to limit the facilities for trans- porting, producing, harvesting, manufacturing, supplying, storing, or dealing in any necessaries; (b) to restrict the supply of any necessaries; (c) to restrict distribution 568 GOVERNMENT REGULATIONS RELATING TO PRICES. 569 series of Executive orders and proclamations, put entire responsibility for food control under the United States Food Administrator, Herbert O. Hoover, and extended the list of foods requiring licenses from the Food Administration.^ 1 There follow the Executive orders and proclamations issued from time to time, and which were the immediate authority from the President for the administration of control : EXECUTIVE ORDERS. Providing for organization of the United States Food Administrators, Aug. 10, 1917. Providing for organization of the Food Administration Grain Corporation, Aug. 14, 1917. Directing Treasury Department to enforce sections 15 and 16 of food-control act, Sept. 2, 1917. Providing for appointment of secretaries to Federal Food Administration without civil- service examination, Sept. 27, 1917. Providing for requisitioning of foods and feeds, Oct. 23, 1917. Amending civil-service regulations, Nov. 10, 1917. Authorizing United States Food Administration to find that fair profit is normal average prewar profit, Nov. 27, 1917. Designating Food Administration Grain Corporation as agency of United States to pur- chase wheat, and directing that capital stock be increased, June 21, 1918. Note regarding formation of the United States Sugar Equalization Board (Inc.), formed July 13, 1918. ■ PROCLAMATIONS. License of wheat and rye elevators and millers, Aug. 14, 1917. License of importers, manufacturers, and refiners of sugar, sugar sirups, and molasses, Sept. 7, 1917. License of manufacturers and distributors of certain food commodities, Oct. 8, 1917. Licensing bakers, Nov. 7, 1917. License of arsenic industry, Nov. 15, 1917. Limiting alcoholic content of malt liquor, Dec. S, 1917. License of ammonia industry, Jan. 3, 1918. Licensing the importation, manufacture, storage, and distribution of feeds and certain other food commodities, Jan. 10, 1918. Conservation of wheat, Jan. 18, 1918. Licensing bakers not already licensed, and importers and distributors of green coffee, Jan. 30, 1918. Fixing guaranteed prices for 1918 wheat crop, Feb. 21, 1918. License of fertilizer industry, Feb. 25, 1918. Licensing packers of canned tuna and others. May 14, 1918. License of farm-equipment industry. May 14, 1918. License of stockyards, June 18, 1918. Fixing guaranteed prices for 1919 wheat crop, Sept. 2, 1918. License of dealers in live or dead cattle, sheep, swine, or goats, Sept. 6, 1918. Prohibiting manufacture of malt liquors, Sept. 16, 1918. Licensing operators of warehouses storing foods and feeds for hire, and others, Nov. 2, 1918, of any necessaries; (d) to prevent, limit, or lesson the manufacture or production of any necessaries in order to enhance the price thereof, or (e) to exact excessive prices for any necessaries ; or to aid or abet the doing of any act made unlawful by this section. Sec. 5. That, from time to time, whenever the President shall find it essential to license the importation, manufacture, storage, mining, or distribution of any necessaries, in order to carry into effect any of the purposes of this Act, and shall publicly so announce, no person shall, after a date fixed in the announcement, engage in or carry on any such business specified in the announcement of importation, manufacture, storage, mining, or distribution of any necessaries as set forth in such announcement, unless he shall secure and hold a license issued pursuant to this section. The President is author- ized to issue such licenses and to prescribe regulations for the issuance of licenses and requirements for systems of accounts and auditing of accounts to be kept by licensees, submission of reports by them, with or without oath or affirmation, and the entry and inspection by the President's duly authorized agents of the places of business of licensees. Whenever the President shall find that any storage charge, commission, profit, or practice of any licensee is unjust, or unreasonable, or discriminatory and unfair, or wasteful, and shall order such licensee, within a reasonable time fixed in the 570 HISTORY or PRICES DURING THE WAR. The whole body of regiUatious pertaining to foods issued by tlie Food Admin- istration fall under general license regulations (No. I) or special license regula- order, to discontinue the same, unless such order, which shall recite the facts found, is revoked or suspended, such licensee shall, within the time prescribed in the order, dis- continue such unjust, unreasonable, discriminatory and unfair storage charge, com- mission, profit, or practice. The President may, in lieu of any such unjust, unreasonable, discriminatory, and unfair storage charge, commission, profit, or practice, find what is a just, reasonable, nondiscriminatory and fair storage charge, commission, profit, or practice, and in any proceeding brought in any court such order of the President shall be prima facie evidence. Any person who, without a license issued pursuant to this sec- tion, or whose license shall have been revolted, knowingly engages in or carries on any business for which a license is required under this section, or willfully fails or refuses to discontinue any unjust, unreasonable, discriminatory and unfair storage charge, com.mission, profit, or practice, in accordance with the requirement of an order issued under this section, or any regulation prescribed under this section, shall, upon conviction thereof, be punished by a fine not exceeding $5,000, or by imprisonment for not more than two years, or both : Provided, That this section shall not apply to any farmer, gardener, cooperative association of farmers or gardeners, including live-stock farmers, or other persons with respect to the products of any farm, garden, or other land owned, leased, or cultivated by him, nor to any retailer with respect to the retail business actually conducted by him, nor to any common carrier, nor shall anything in this section be construed to authorize the fixing or imposition of a duty or tax upon any article imported into or exported from the United States or any State, Territory, or the District of Columbia : Provided further. That for the purposes of this Act a retailer shall be deemed to be a person, copartnership, firm, corporation, or association not engaging in the wholesale business whose gross sales do not exceed $100,000 per annum. Sec. 6. That any person who willfully hoards any necessaries shall upon conviction thereof be fined not exceeding $5,000 or be imprisoned for not more than two years, or both. Necessaries shall be deemed to be hoarded within the meaning of this Act when either (a) held, contracted for, or arranged for by any person in a quantity in excess of his reasonable requirements for use or consumption by himself and dependents for a rea- Bonable time ; (b) held, contracted for, or arranged for by any manufacturer, wholesaler, retailer, or other dealer in a quantity in excess of the reasonable requirements of his busi- ness for use or sale by him' for a reasonable time, or reasonably required to furnish neces- saries produced in surplus quantities seasonally throughout the period of scant or no pro- duction ; or (c) withheld, whether by possession or under any contract or arrangement, from the market by any person for the purpose of unreasonably increasing or diminish- ing the price : Provided, That this section shall not include or relate to transactions on any exchange, board of trade, or similar institution or place of business as described in section thirteen of this Act that may be permitted by the President under the authority conferred upon him by said section thirteen : Provided, however. That any accumulating or withholding by any farmer or gardener-, cooperative association of farmers or gardeners, including live-stock farmers, or any other person, of the products of any farm, garden, or other land owned, leased, or cultivated by him shall not be deemed to be hoarding within the meaning of this Act. Sec. 7. That whenever any necessaries shall be hoarded as defined in section six they fchall be liable to be proceeded against in any district court of the United States within the district where the same are found and seized by a process of libel for condemnation, and if such necessaries shall be adjudged to be hoarded they shall be disposed of by sale in such manner as to provide the most equitable distribution thereof as the court may direct, and the proceeds thereof, less the legal costs and charges, shall be paid to the party entitled thereto. The proceedings of such libel cases shall conform as near as may be to the pro- ceedings in admiralty, except that either party may demand trial by jury of any issue of fact joined in any such case, and all such proceedings shall be at the suit of and in the name of the United States. It shall be the duty of the United States attorney for the proper district to institute and prosecute any such action upon presentation to him of satisfactory evidence to sustain the same. Sec. 8. That any person who willfully destroys any necessaries for the purpose of en- hancing the price or restricting the supply thereof shall, upon conviction thereof, be fined not exceeding $5,000 or imprisoned for not more than two years, or both. Sec. 9. That any person who conspires, combines, agrees, or arranges with any other person (a) to limit the facilities for transporting, producing, manufacturing, supplying, storing, or dealing in any necessaries; (b) to restrict the supply of any necessaries; (c) to i-estrict the distribution of any necessaries ; (d) to prevent, limit, or lessen the manu- facture or production of any necessaries in order to enhance the price thereof shall, upon GOVERlSrMElSrT KEGULATIOIsrS RELATING TO PRICES. 571 tions (Nos. II to XXVIII) / Tliese regulations, issued during the war in mimeo- graplied and printed loose-leaf form, i>ertain to prices, specifications, contracts, 1 There follows a list showing dates of the various general and special license regulations issiaed by the Food Administration ; No. T. General license regulations : GoTerning all licenses for the importation, manufac- ture, storage, and distrihution of food commodities and feeds. SPECIAL, LICENSE REGULATIONS. No. II. Wheat millers and manufactureTS of mixed flotirs, effective July 22, 1918. No. III. A. Elevators and dealers handling wlieat, rye, corn, oats, and barley. B. Corn, oats, rye, and barley millers. Effective September 23, 1918. No. IV. A. Malsters. B. Near-beer manufacturers, effective September 23, 1918. No. V. A. Special xegtilations governing dealers in rongh rice. B. Special regulations governing rice millers and mamifacturers of rice flonr, effective July 29, 1918. No. VE. Manufacturers and xefiners of sugar, effective June 15, 1918. No. "^m. Canners of peas, tomatoes, corn, dried beans, salmon, sardines and tuna, and manufacturers of tomato catsup, tomato soup, and other tomato products, manufacturer.^ of condensed, evaporated, or powdered milk, effective June 15, 1918. No. VIII. Packers of dried fruits, effective June 15, 1918. No. IX. Dealers and brokers in cotton seed and peanuts and cotton ginners, crushers of cotton seed, peanuts, soya beans, palm kernel, and copra. Importers of peanuts, peanut oil, soya beans, soya-bean oil, palm kernels, palm-kernel oil, copra, copra oil, and palm oil, and dealers and brokers in such imported products. Refiners of and dealers and brokers in cottonseed oil, peanut oil, soya-bean oil, palm-kernel oil, and copra oil, effective July 1, 1918. No. X. Special regulations governing manufacture of oleomargarine and other butter substitutes, effective December 4, 1918. No. XI. Wholesalers, jobbers, importers, retailers: Special rules applying to licensed nonperishable food commodities, effective June 15, 1918. No. XII. Brokers and auctioneers of licensed nonperishable food commodities, effective June 15, 1918. No. XIII. Manufacturers of bakery products, effective September 1, 1918. No. XIV. Dealers in glucose, refineiV sirups, maple sirup, sorghum, cane-juice sirup, centrifugal molasses, open-kettle molasses, West India molasses and blackstrap molasses, and manufacturers and misers of mixed molasses, effective November 7, 1918. No. XV. Distributors of fresh fruits and vegetables. No. XVI. Distributors of fresh fish and frozen fish. No. XVII. Salt-water fishermen. No. XVIII. Distributors of poultry, effective December 9, 1918. No. XIX. Distributors of eggs, effective November 11, 1918. No. XX. Manufacturers and distributors of butter, effective December 23, 1918. No. XXI. Manufacturers and distributors of cheese, effective June 12, 1918. No. XXII. Distributors of milk and cream. No. XXIII. Meat packers and manufacturers of lard, distributors of fresh meat. No. XXIV. Cold-storage warehousemen, effective August 26, 1918. No. XXV. Feeding stuffs, effective August 1, 1918. No. XXVI. Directions regarding the use of tin and other containers adopted by the United States Food Administration and the War Industries Board applying to manufac- turers and packers of baking powder, ground spice, powdered cocoa, chocolate, candy, cof- fee, coffee substitutes, tea, s-paghetti, pickles, hominy, condensed milk, salt, lard, and lard substitutes, macaroni, sirups, and molasses, effective October 1, 1918. No. XXVII. All public eating places, effective December 17, 1918. No. XXVIII. Special regulations governing licensees engaged in busines.s a« general stor- age warehousemen, effective December 1, 1918. conviction thereof, be fined not exceeding $10,000 or be imprisoned for not more than two years, or both. Sue. 10. That the President is authorized, from time to time, to requisition foods, feeds, fuels, and other supplies necessary to the support of the Army or the main- tenance of the Navy, or any other public use connected with the common defense, and to requisition, or otherwise provide, storage facilities for such supplies ; and he shall ascertain and pay a just compensation therefor. If the compensation so determined be not satisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined by the President, and shall be 572 HISTORY or prices during the war. conservation, and distribution. An endeavor lias been made in this digest, made entitled to sue the United States to recover such further sum as, added to said seventy- five per centum will make up such amount as will be just compensation for such neces- saries or fiitorage space, and jurisdiction is hereby conferred on the United States Dis- trict Courts to hear and determine all such controversies : Provided, That nothing In this section, or in the section that follows, shall be construed to require any natural person to furnish to the Government any necessaries held by him and reasonably required for consumption or use by himself and dependents, nor shall any person, firm, corporation, or association be required to furnish to the Government any seed necessary for the seeding of land owned, leased, or cultivated by them. Sec. 11. That the President is authorized from time to time to purchase, to store, to provide storage facilities for, and to sell for cash at reasonable prices, wheat, flour, meal, beans, and potatoes : Provided, That if any minimum price shall have been theretofore fixed, pursuant to the provisions of section fourteen of this Act, then the price paid for any such articles so purchased shall not be less than such minimum price. Any moneys received by the United States from or in connection with the disposal by the United States of necessaries under this section may, in the discretion of the Presi- defit, be used as a revolving fund for further carrying out the purposes of this section. Any balance of such moneys not used as part of such revolving fund shall be covered into the Treasury as miscellaneous receipts. Sec. 12. That whenever the President shall find it necessary to secure an adequate supply of necessaries for the support of the Army or the maintenance of the Navy, or for any other public use connected with the common defense, he is authorized to requisition and take over, for use or operation by the Government, any factory, packing house, oil pipe line, mine, or other plant, or any part thereof, in or through which any necessaries are or may be manufactured, produced, prepared, or mined, and to operate the same. Whenever the President shall determine that the further use or operation by the Government of any such factory, mine, or plant, or part thereof, is not essential for the national security or defense, the same shall be restored to the person entitled to the possession thereof. The United States shall make just compensation, to be determined by the President, for the taking over, use, occupation, and operation by the Government of any sucli factory, mine, or plant, or part thereof. If the compensation so determined be unsatisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined by the President, and shall be entitled to sue the United States to recover such further sum as, added to said seventy-five per centum, will make x\p such amount as will be just compensation, in the manner provided by section twenty- four, pai-agraph twenty, and section one hundred and forty-five of the Judicial Code. The President is authorized to prescribe such regulations as he may deem essential for carrying out the purposes of this section, including the operation of any such factory, mine, or plant, or part thereof, the purchase, sale, or other disposition of articles used, manufac- tured, produced, prepared, or mined therein, and the employment, control, and compensa- tion of employees. Any moneys received by the United States from or in connection with the use or operation of any such factory, mine, or plant, or part thereof, may, in the discretion of the President, be used as a revolving fund for the purpose of the continued use or operation of any such factory, mine, or plant, or part thereof, and the accounts of each such factory, mine, plant, or part thereof, shall be kept separate and distinct. Any balance of such moneys not used as part of such revolving fund shall be paid into the Treasury as miscellaneous receipts. Sec. 13. That whenever the President finds it essential in order to prevent undue en- hancement, depression, or fluctuation of prices of, or in order to prevent injurious specu- lation in, or in order to prevent unjust market manipulation or unfair and misleading market quotations of the prices of necessaries, hereafter in this section called evil prac- tices, he is authorized to prescribe such regulations governing, or may either wholly or partly prohibit, operations, practices, and transactions at, on, in, or under the rules of any exchange, board of trade, or similar institution or place of business as he may find essential in order to prevent, correct, or remove such evil practices. Such regulations may require all persons coming within their provisions to keep such records and state- ments of account, and may require such persons to make such returns, verified under oath or otherwise, as will fully and correctly disclose all transactions at, in, or on, or under the rules of any such exchange, board of trade, or similar institution or place of business, including the making, execution, settlement, and fulfillment thereof. He may also require all persons acting in the capacity of a clearing house, clearing association, or similar insti- tution, for the purpose of clearing, settling, or adjusting transactions at, in, or on, or under the rules of any such exchange, board of trade, or similar institution or place of business, to keep such records and to make such returns as will fully and correctly dis- close all facts in their possession relating to such transactions, and he may appoint agents GOVEENMENT EEGULATIOJSTS RELATING TO PEICES. 573 possible and approved by Mr. W. 0. Mullendore, of the legal section of the Food to conduct the investigations necessary to enforce the provisions of this section and all rules and regulations made by him in pursuance thereof, and may fix and pay the com- pensation Gl such agents. Any person who willfully violates any regulation made pur- suant to this section, or who knowingly engages in any operation, practice, or transaction prohibited pursuant to this section, or who willfully aids or abets any such violation or any such prohibited operation, practice, or transaction, shall, upon conviction thereof, be punished by a fine not exceeding $30,000 or by imprisonment for not more than four years, or both. Sec. 14. That whenever the President shall find that an emergency exists requiring stimulation of the production of wheat and that it is essential that the producers of wheat, produced within the United States, shall have the benefits of the guaranty pro- vided for in this section, he is authorized, from time to time, seasonably and as far iu advance of seeding time as practicable, to determine and fix and to give public notice of what, under specified conditions, is a reasonable guaranteed price for wheat, in order to assure such producers a reasonable profit. The President shall thereupon fix such guar- anteed price for each of the official grain standards for wheat as established under the United States grain standards Act, approved August eleventh, nineteen hundred and six- teen. The President shall from time to time establish and promulgate such regulations as he shall deem wise in connection with such guaranteed prices, and in particular gov- erning conditions of delivery and payment, and differences in price for the several stand- ard grades in the principal primary marliets of the United States, adopting number one northern spring or its equivalent at the principal interior primary markets as the basis. Thereupon, the Government of the United States hereby guarantees every producer of wheat produced within the United States, that, upon compliance by him with the regula- tions prescribed, he shall receive for any wheat produced in reliance upon this guarantee within the period, not exceeding eighteen months, prescribed in the notice, a price not less than the guaranteed price therefor as fixed pursuant to this section. In such regula- tions the President shall prescribe the terms and conditions upon which any such pro- ducer shall be entitled to the benefits of such guaranty. The guaranteed prices for the several standard grades of wheat for the crop of nineteen hundred and eighteen, shall be based upon number one northern spring or its equivalent at not less than $2 per bushel at the principal interior primary markets. This guaranty shall not be dependent upon the action of the President under the first part of this section, but is hereby made absolute and shall be binding until May first, nineteen hundred and nineteen. When the President finds that the importation into the United States of any wheat produced outside of the United States materially enhances or is likely materially to enhance the liabilities of the United States under guaranties of prices therefor made pursuant to this section, and ascertains what rate of duty, added to the then existing rate of duty on wheat and to the value of wheat at the time of importation, would be sufficient to bring the price thereof at which imported up to the price fixed therefor pursuant to the foregoing pro- visions of this section, he shall proclaim such facts, and thereafter there shall be levied, collected, and paid upon wheat when imported in addition to the then existing rate of duty, the rate of duty so ascertained ; but in no case shall any such rate of duty be fixed at an amount which will effect a reduction of the rate of duty upon wheat under any then existing tariff law of the United States. For the purpose of making any guaranteed price effective under this section, or whenever he deems it essential in order to protect the Government of the United States against material enhancement of its liabilities arising out of any guaranty under this section, the President is authorized also, in his discretion, to purchase any wheat for which a guaranteed price shall be fixed under this section, and to hold, transport, or store it, or to sell, dispose of, and deliver the same to any citizen of the United States or to any Government engaged in war with any country with which the Government of the United States is or may toe at war or to use the same as supplies for any department or agency of the Government of the United States. Any moneys received by the United States from or in connection with the sale or disposal of wheat under this section may, in the discretion of the President, be used as a revolving fund for further carrying out the purposes of this section. Any balance of such moneys not used as part of such revolving fund shall be covered into the Treasury as miscel- laneous receipts. SBC. 15. That from and after thirty days from the date of the approval of this Act no foods, fruits, food materials, or feeds shall be used in the production of distilled spirits for beverage purposes : Provided, That under such rules, regulations, and bonds as the Presi- dent may prescribe, such materials may be used in the production of distilled spirits exclusively for other than beverage purposes, or for the fortification of pure sweet wines as defined by the Act entitled "An Act to increase the revenue, and for other purposes," a-pproved September eighth, nineteen hundred and sixteen. Nor shall there be imported 574 HISTORY OF PPaCES DUPiING THE WAR. Admiuistration, to show simply the rules relating directly to food prices. The into the United States any distilled spirits. T\''henever the President shall find that limi- tation, regulation, or prohibition of the use of foods, fruits, food materials, or feeds in the production of malt or vinous liquors for beverage purposes, or that rodiiction of th.- alco- holic content of any such malt or vinous liquor, is essential, in order to assure an adequate and continuous supply of food, or that the national security and defense -will'be subserved thereby, he is authorized, from time to time, to prescribe and give public notice of the extent of the limitation, regulation, prohibition, or reduction so necessitated. Whenever such notice shall have been given aJid shall remain unrevoked no person shall, after a reasonable time prescribed in such notice, use any foods, fruits, food materials, or feeds lu the production of malt or vinous liquors, or import any such liquors except under licens.- issued by the President and in compliance vrith rules and regulations determined by hir.i governing the production and importation of such liquors and the alcoholic content thereof. Any person who willfully violates the provisions of this section, or who shall use any foods, fruits, food materials, or feeds in the production of malt or vinous liquors, or who shall import any such liquors, without first obtaining a license so to do when a license is required under this section, or who shall violate any rule or regulation made under this section, shall be punished by a fine not exceeding $.5,000, or by imprisonment for not more than two years, or both ; Provided further. That nothing in this section shall be con- strued to authorize the licensing of the manufacture of vinous or malt liquors in any State, Territory, or the District of Columbia, or any civil subdivision thereof, where the manufacture of such vinous or malt liquor is prohibited. Sec. 16. That the President is authorized and directed to commandeer any or all dis- tilled spirits in bond or in stock at the date of the approval of this Act for redistilla- tion, in so far as such redistillation may be necessary to meet the requirements of the Government in the manufacture of munitions and other military and hospital supplies, or in so far as such redistillation would dispense with the necessity of utilizing products and matei-ials suitable for foods and feeds in the future manufacture of distilled spirits for the purposes herein enumerated. The President shall determine and pay a just compensation for the distilled spirits so commandeered ; and if the compensation so determined be not satisfactory to the person entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined by the President and shall be entitled to sue the United States to recover such further sum as, added to said seventy-five per centum, will make up such amount as will be just compensation for such spirits, in the manner provided by section twenty-four, paiagraph twenty, and section one hundred and forty-five of the Judicial Code. Sec. 17. That every person who willfully assaults, resists, impedes, or interferes with any officer, employee, or agent of the United States in the execution of any duty authorized to be performed by or pursuant to this Act shall upon conviction thereof be fined not exceeding $1,000 or be imprisoned for not more than one year, or both. Sec. 18. That the sum of $2,500,000 is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, to be available until June thirtieth, nineteen hundred and eighteen, for the payment of such rent, the expense, mcludiug postage, of such printing and publications, the purchase of such material and equipment, ana tne employment of such persons and m.eans, in the city of "Washington and elsewhere, as tho President may deem essential. Sec. 19. That for the purposes of this Act the sum of $1.50,000,000 is herebj appropri- ated, out of any moneys in the Treasury not otherwise appropriated, to be available during the time this Act is in effect: Provided, That no part of this appropriation shall be expended for the purposes described In the preceding section : Provided further. That itemized statements covering all purchases and disbursements under this and the pre- ceding section shall be filed with the Secretary of the Senate and the Clerk of the' House of Representatives on or before the twenty-fifth day of each month after the taking effect of this Act, covering the business of the preceding month, and said state- ments shall be subject to public inspection. Sec. 20. That the employment of any person under the provisions of this Act shall not exempt any such person from military service under the provisions of the selective draft law approved May eighteenth, nineteen hundred and seventeen. Sec. 21. The President shall cause a detailed report to be made to the Congress on the first day of January each year of all proceedings had under this Act during the year preceding. Such report shall, in addition to other matters, contain an account of all persons appointed or employed, the salary or compensation paid or allowed each, the aggregate amount of the different kinds of property purchased or requisitioned, the use GOVEEI^MEirT EEGULATIOISrS EELATIIffG TO PRICES. 575 original issue numbers of all rules, and tlieir exact lieadings, liave been retained, but parts not relevant to prices are omitted. and disposition made of such property, and a ■statement of all receipts, payments, and exipeiiditures, together with a statement showing the general character, and estimated value of all property then on hand, and the Aggregate arncunt and cltaraeter ^of ail claims against the "United States growing out of this Act. Sec. 22. That if anj^ clause, sentence, pai'agraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdictioii to be invalid, sueh judgment shall not afEect, impair, or invalidate the remainder thereof, but shall be confined in its oporatiou to the clause, sentence, paragraph, or part thereof, dii-ectly involved in the eontrovorsy an which such judgment shall have been rendered. Sec. 23. That words used in this Act shall fee construed to import the plural or the singular, as the case demands. The word "person," wherever used in this Act, shall include individuals, partnerships, associations, and corporations. When construing and enforcing the provisions of this Act, the act, omission, or failure of any ofBeial. agent, or other person acting for or employed by any partnership, association, or corporatioia within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such partnership, association, or corporation a.s well as that of the person. Seo. 24. That the provisions of this Act shall cease to be in effect when the existing state of war between tlie United States and Germany shall have terminated, and the fact and date of such termination shall be ascertained and proclaimed by the President; but the termination of tliis Act shall not affect any act done, or any right or obligation accru- ing or accrued, or any suit or proceeding had or commenced in any civil case before the said termination pursuant to this Act ; but all rights and liabilities under this Act arising before its termination shall continue and may be enforced in the same manner as if the Act had not terminated. Any offense committed and all penalties, forfeitures, or liabilities incurred prior to such termination may be prosecuted or punished in the same manner and with the same effect as if this Act had not been terminated. Sec. 26. That any person carrying on or employed in oommerce among the several States, or with foreign nations, or with or in tlie Territories or other possessions of the United States in any article suitable for human food, fuel, or other necessaries of life, wTio, either in his individual capacity or as an officer, agent, or employee of a corporation or member of a partnership carrying on or employed in such trade, shall store, acquire, or hold, or who shall destroy or make away witii any such article for the purpose of limiting the supply thereof to the public or affecting the market price thereof in such cojnjnerce, whether temporarily or otherwise, shall be deemed guilty of a felony and, upon conviction thereof, shall be punished by a fine of not more than |5,000 or by imprisonment for not more than two years, or botli : Provided, That any storing or holding by any farmer, gardner, or other person of the products of any farm, garden, or other land cultivated by him shall not be deemed to be a storing or holding within the meaning of this Act : Provided further, That farmers and fruit growers, cooperative and other exchanges, or societies of a similar character shall not be included within the provisions of this section : Provided further, Tliat this section shall not be construed to proliibit the holding or accumulating of any such article by any such person in a quantity not in excess of the reasonable requirements of his business for a reasonable time or in a ry / Destination ?e^°^f~pay^iSiT::::::::::::::::::::::::::::::"--------r^t:t^ .Bank of- Prices named in this contract are based sale," (0) freight charge, and (d) package on (a) effective price schedule charge, as specified below : , (h) " class of Number packages. Size. Kind. Brand. Bulk price f. o. b. mill. Delivered price In packages. METHOD OP CALCULATING MAXIMUM DELIVERED FAIR PRICE. [Flour in 98-pound cotton sacks.] (o) Maximum fair price bulk mill as per schedule No. ■ (b) Maximum diflerential, if any, on sale of class — . . . . (c) Freight charge (including freight tax) Id) Cost of sacks (98-pound cotton for flour) Total. Flour per barrel. Feed per ton. fThe schedules note, and detailed terms and conditions below may be placed on reverse ^ of contract form if desired.) MAXIMUM PERMISSIBLE MARGINS OVER BASIS ON VARIOUS CLASSES OF SALES. Class of sale. Mill sale to— How sold. Flour, per barrel. Feed, per ton. j^ Carload lots, bulk mill, cash or draft at- tached to B/L. None. None. B Mixed carloads of wheat flour, mixed flour, wheat flour substitutes and feeds . $0.25 $0.5Ci C From cars or docks, car lots (not delivered) where flour has been forwarded "on con- signment." .25 D From ears or docks, less than carload (not delivered) where flour has been forwarded "on consigimient." .35 E Anyone other than con- sumer. Less carloads (except class C or D sales) (not deUvered). .50 Individual consumers (ex- cept bakers and public eat- ing places) . Less carloads 1.20 F G Wholesale feed dealers Less carloads and 2,000 pounds or over 1.00 H Less carloads and 2,000 pounds or over 2.00 I Less than 1 ton 3.00 GOVEKlSrMEISrT REGULATION'S RELATING TO PRICES. 583 Credit and delivery on flour.— Not more than 25 cents per barrel may be charged in addition to the above margins where flour is delivered to the buyer's dobr, including all charges for credit if credit is extended. Where credit is extended without delivery onlv the actual interest may be added. vicuvcLj- uuiy feed'°''^™^^'~"^^°'^^^'^^'^ ™^^' ^'^^ ^'^ ^^^^ *° ^^^ fair-price schedule either on flour or Credit and delivery on feed. — Not more than a reasonable cartage or truckine chare-.^ may be made where mill feed is delivered to the buyer's door. Whire credit is extendfd only the actual interest may be added. ^leuit is extenaea +nf ^'"i'^i?^-~;^° charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. Sales of teed to consumers must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or warehouse is located will indicate what margin will be considered reasonable wTt1i*fs*^ctifct*'^* "" "^^"* "^^ -^--^tative has authUi°t^ shorter time is expressly orovided. -^ fceuer uniess a wise Uated'in'thii^coVtract!"^'' ^^""^ ^^^^ *^^ "^^* *"" ''°''*® ^" shipments unless other- (Q) Nonextension of time.— That there shall be no extension of the time of shinments or delivery under this contract except as herein specified snipments e iC^^ Jiuyers nonfulfillment of contract.— That if the buyer shall fail to file with the seller within 30 days of the date of confirmation of this contract shipping instructions permitting the seller to ship at his option within the remaining period of the contract then the seller may cancel thi.s contract and the buyer shall pay to the seller an entry charge of. 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difterence, provided that if such shipping instructions are received before the expiration of 60 days from the date of confirmation of this contract, and prior to any cancellation being sent, the seller's right to cancel shall cease. If the buyer shal! refuse to accept any shipment or delivery as specified hereunder or fail to perform any of the other terms of this agreement, then the seller may cancel this contract and the S.^'on^f" ?^'^ ^r,%l^^ ^fl^^'" tbe entry charge above provided, plus or minus the market difference. In addition thereto the seller may pursue such further remedies as the law (8) Seller's nonfulfillment of contract. — That if the seller shall fail except for the reasons specified in paragraph 9 of this contract to make any shipment or delivery as specified then the buyer may, at his option, cancel this contract at any time before actual shipment, and the seller shall pay to the buyer the sum of 25 cents per barrel on flour and 50 cents per ton on feed, plus or minus the market difference. The buyer may pursue such further remedies as the law may provide. puisue (9) Exceptions to seller's responsimUties.—Th&t if this contract can not be performed by the seller within the time specified, because of Government contracts not in contem- plation at the time of the^ contract, or because of fires, strikes, labor difficulties acts of carriers or other causes beyond the control of the seller, and if the seller notifies the buyer of such inability, stating the specific cause, as soon as he knows that such inability will prevent performance, and in any event on or before the date of shipment or delivery the seller shall not be responsible for failure to perform. In such event the buyer shall have the option of canceling the contract at the market difference, provided he exercises ^V?,^ option withm 24 hours from the time when he receives notice of the seller's In- Tl'i} L ^'^ i,P1?*^^°^- ^.^^Z^*^^ ^P,*^^"^ 1^ °^* exercised, the contract time of shipment or delivery shall be extended until a reasonable time after the termination of seller's in- deilvp^.v ^ "Tf ?r*^' ^'^^ /'°* t° ^I^^""-"^ ^? o^.^y^ ^'^,y«"'> ^^^ original date of shipment or ^fii,^ l^' ^^ }^^ ^^^ ^* such additional 30 days' period the buyer shall again have the ^^^J'-^J'^ ^^^^'^} ^^ ^'^°^e provided, or the contract shall be similarly extended i-y.i}2L tK^ A^^??"^^^i^^*F f*^^ final paryrfie^it.— That where buyer specifies the bank through which draft is to be presented and to whom payment is to be made bv the ''"•y?^'^ ^^r^ '',"y"^'' ^^^" ^"^ responsible for final payment to the seller. ^ (11) Package differentials.— That both buyer and seller agree to the.saipment or de- i&y„*i- i'T"'?^'^^'^^ °'^™*'*^ \" t'^'l contract on the basis of the package differentials In effect at date of sale as promulgated by the United States Food Administration. Seiferr By Bu\er. By 584 HISTORY OF PRICES DURING THE WAR. Rule M. S. 22. ITniforni invoice prescribed. — The wheat miller shall invoice all wheat flour and wheat mill feed, except sales to individual consumers, and except sales of 15 harrels or less of flour and 3 tons or less of mill feed, on an invoice form on the front or back of which shall be printed all information shown in this ruU' and in the form prescribeil, the schedule^ of " reasonable prices " to be in accordance with schedule which will be furnished any miller. He shall till out in every such invoice covering flour, the tlour charge items ap- pearing under " Method of calculating invoice price," and in every invoice cover- ing feed the feed charge items under such heading. The following items shall appear on front or back of every invoice : REASONABLE PRICE SCHEDULE (BULK MILL). (Here insert figures furnished you by Food Administration.) 1 I I ^oft wheat feeds. — The Food Administration will regard as reasonable the sale of wheat mill foods fontaining not less than 90 per cent soft winter wheat at a price not more than $2 in excess of the maximum fair-price schedule for other wheat mill feeds ; provided that nil shipments or deliveries of such mill feeds are made in packages which are plainly marked " Manufactured from soft winter wheat." Note. — The schedule of prices indicated above is based upon a determined wheat value as indicated by the Government reasonable price guarantee and a maximum permissible miller's charge. Any price in excess of that based on the schedules printed in this con- tract should be reported to the Federal food administrator for your State. (Issued .Tuly 22, 1918 ; repealed Dec. 19, 1918.) MAXIMUM PERMISSIBLE MARGINS OVER BASIS ON VARIOUS CLASSES OF SALES. Class of sale. Mill sale to— How sold. • barrel. |perton. A . . An' e Carload lots, bulk mill, cash or draft attached to B/L. 1 None. 1 None. B Mixed carloads of wheat flour, mixed flour, wheat-flour substitutes, and feeds. 1 $0.25 j $0.50 C Wholesale dealers From cars or docks, car lots (not delivered), where floar has been forwarded "on con- signment." .25 { i 1 ]■> Wholesale dealers From cars or docks, less than carload (not delivered), where flour has been for\varded "on consignment." .35 E Anyone other than consumer Less carloads (except class C or D sales) (not delivered). .50 F . . Individual consumers (ex- cept bakers and public eating places). Less carloads 1.20 Wholesale feed dealers Less carloads and 2,000 pounds or over 1.00 H Less carloads and 2,000 pounds or over 2.00 I Less than 1 ton 3.00 Sales of feed to consume)-s must be made at not more than a reasonable margin over basis. The Federal food administrator of the State where the mill or warehouse is located will indicate what margin will be considered reasonable. Onli/ one margin over carload basis permitted. — Not more than one of the margins over carload basis, as indicated above, shall be added by the wheat miller on the sale of any lot of flour or feed. GOVERNMENT REGULATIONS RELATING TO PRICES. 585 Credit and- delhvei-y on, -flour. — Not more than 25 cents per barrel may be charged in addition to the above margins where flour is delivered to the buyer's door, including all charges for credit if credit is extended. Where credit is extended without delivery only the actual interest may be added. , ^ . . ^ , , -^v. Brokerage. — Brokerage may not be added to the fair price schedule either on flour or feed. Credit and delivery charges on feed. — Not hiore than a reasonable cartage or trucking charge may be made where mill feed is delivered to the buyer's door. Where credit is extended only the actual interest may be added. Cartage. — No charge for cartage or trucking on flour or feed to a station or dock at the town where the mill is located may be made. METHOD OF CALCULATING MAXIMUM FAIR INVOICE PRICE. [Flour, basis 98-pound cotton sacks.] Flour per barrel. Feed, per ton. (a) Maximum fair price bulk mill as per Schedule No. ■ Oa) Maximum differential, if any, onsaleofclass — - . (c) Freight charge (including fi'eight tax) (d) Cost of sacks (98-pound cotton for flour) Total Millars who have had their contract and invoice forms printed in accordance with the regulations issued on July 22, 1918, may use such contracts and invoices until exhausted, conforming in their charges to the minor changes now made. Rule M. S. 23. Change in destination or point of shipment. — Tlie wheat miller, in invoicing where change in destination is made at the request of the buyer and such change results in a freight rate other than that specitied in the original contract, sliall charge to the buyer any additional freight charge over, and credit to the buyer any lesser freight charge under, that specified in the contract. If the wheat miller makes a change in point of shipment from that originally named in the contract, such change of point of shipment shall not result in change of delivered cost to buyei*. In such case the bulk mill price and freight charge shown on the invoice must be identical with similar prices and charges shown in the original contract. (Issued July 22, 1918; repealed Dec. 19, 1918.) Rule M. S. 30 (as amended Nov. 12, 1918). Contracts must provide for delivery in 60 days. — The wheat hiiller shall not make any contract for the sale or delivery of wheat flour, mixed flour, or wheat mill feed for shipment or delivery more than 60 days after the making of such contract, provided that this rule shall not apply to contracts with the Federal, State, county, or municipal Govern- ments or with the Government of any nation at war with Germany. (Rule of Sept. 1, 1917, limited contracts for wheat flour to 30 days. Changed Sept. 1, 1918, to 30 days' supply of wheat flour or mixed flour. Changed Sept. 20, 1918, to include wheat mill feed. Changed to 60 days as noted here Nov. 12, 1918 ; re- pealed Dec. 19, 1918.) III. WHEAT, CORN, OATS, RYE, AND BARLEY. A, SPECIAL LICENSE REGULATIONS GOVERNING OPERATORS OF ELE- VATORS WAREHOUSES, OR OTHER PLACES FOR THE STORAGE OF WHEAT, RYE, CORN, OATS, AND BARLEY, AND DEALERS IN WHEAT, RYE, CORN, OATS, AND BARLEY. Rules 1 to 3 relate to storage only. Rules 4 to 8 relate to dealings in wheat only. Rules 9 to 13 relate to dealings in corn, oats, barley, and rye. Rule 9. Grain to be sold at reasonable advance over cost, hedging considered. — The licensee shall sell corn, oats, rye, and barley at not more than a reasonable advance over the average cost of the stock of such commodity on hand or under the control of the licensee not at that time contracted to be sold. In arriving at the cost thereof he shall take into consideration the gain or loss from any hedg- ing transaction on any recognized grain exchange. (Issued Jan. 28, 1918.) 686 HISTORY or prices during the war. B. -SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES EN- GAGED IN THE BUSINESS OF MANUFACTURING CORN, OATS, RYE, OR BARLEY PRODUCTS. The manufacture and distribution of the following corn, oats, rye, and barley products are licensed : Bai-ley flour. Cerealine flakes. Rye Hour. Corn oil. Oatmeal. Corn sirup. Rolled oats. Glucose. Hominy. Corn sugar. Corn grits. Products and by-px'oducts of shelled Corn meal. corn, ear corn, oats, rye, and barley Corn flour. for use as feed, including grain Starch from corn. screenings. Oat flour. Note. — Any corn, oats, or l)arley millers who resell corn, oats, or barley without railling them must have a license to deal in these commodities and are subject to rules governing dealers therein. Any corn, oats, or barley miller buyini; any products of corn, oats, or barley and reselling them must have a license to deal therein, and are subject to the rules governing jobbers in such commodities. Rule 4. Unreasonable profits prohibited. — The licensee shall sell edible prod- ucts of corn, oats, rye, and barley at not more than a reasonable margin over the average cost to him of the corn, oats, rye, or barley from which such edible products are manufactured. In estimating such average cost he shall include all grain in his possession or under his control by contract or other arrangement, but he shall not include any grain which he has contracted to sell or the products of which he has contracted to sell. Provided, that in determining the cost of such grain he shall — (1) Add to the average purchase price the loss, and deduct from the average purchase price the gain, resulting from any hedging transactions on an estab- lished grain exchange in which the transaction is finally closed. The loss or gain on such transaction shall be calculated on the average price of all outstanding' hedging sales or purchases. (2) He shall deduct from the average purchase price the proceeds from the sale of feed or offal created in the milling oi^eration, or, if not sold, he shall deduct its current market value. Any average once calculated shall be taken as the basis for such averaged grain in all subsequent calculations. He shall keep records in such manner as to show how all averages and selling prices have been determined. (Rule issued Sept. 1, 1917, provided rye or rye products should not be handled on unjust or unreasonable profit. Rule of Nov. 1, 1917. provided rye flour should be sold at not more than reasonable advance over cost. Issued July 20, 1918, as noted here ; repealed Feb. 1, 1919. ) Semmnniial profits. — The Food Administration will consider a net earning of more than 6 per cent upon the gross sales of any edible products of corn, oats, rye, or barley as shown at the end of any semiannual period, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule 5). This limitation does not modify or abrogate the general principle contained in the Pood Admin- istration regulations that a licensee should not earn more than a reasonable net profit on his capital invested, nor does it change in any way the maximum margins which have been prescribed on individual sales. (Issued Sept. 1, 1918.) (New, Nov. 7, 1918.) Semiannual profits of wet corn millers. — The Food Administra- tion will consider a net earning of more than 6 per cent upon the gross sales of all prod- ucts or by-products of corn, whether such products or by-products are sold, pure or mixed with other commodities, by any licensee engaged in the milling of corn for the production of starch or glucose and other products from the manufacture of starch, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule I — A — 5). This percentage will be calculated for each of the two semi- annual periods making up the licensee's fiscal year. The Federal income and excess-profits taxes may not be deducted as expenses or otherwise, but all other taxes may be consid- ered as expenses. This limitation does not modify or abrogate the general principle con- tained in the Food Administration regulations that a licensee should not earn more than a reasonable net profit on its capital invested. GOVEEISTME^^T REGULATIONS RELATING TO PRICES. 587 Rule 5 (as amended Nov. 1, 1918). Profits on feeds. — The licensee shall not sell hominy feed, hominy meal, hominy chop, gluten feed, oil-cake meal, or other feed by-product of corn, hominy feed, rye feed, or oat feed, produced as a by- product of the manufacture of corn, barley, rye, or oat products at a price per pound in excess of the purchase price per pound of the grain from which it is manufactured. (Rule issued July 20, 1918, applied to hominy feed, hominy meal, hominy chop, barley feed, rye feed, or oat feed. Nov. 1, 1918, commodities added as noted here. Repealed Dec. 17, 1918. ) Rule 8. Package differentials on corn meal. — The licensee shall not sell corn meal, corn grits, hominy, corn flour, barley flour, or rye flour, except on the basis of the following differentials : Package differentials. — The following package differentials apply to all sales of buck- wheat flour : Basis of 100 pounds cotton or jute tags. Cents per 100 pounds. 50 pounds cotton over basis — 10 25 pounds cotton do 20 10 pounds cotton do 50 5 pounds cotton do 75 50 pounds paper under basis — 10 25 pounds paper do 5 10 pounds paper over basis — 15 5 pounds paper do 30 3 pounds paper do 45 Extra charge for burlapping, baling, or double sacking, 35 cents per 100 pounds. (Rule issued May 22, 1918, fixed differentials for corn meal, corn grits, hominy. July 20, 1918, corn, barley, and rye flour added and differentials changed as noted here. Repealed Dec. 17, 1918.) C. SPECIAL LICENSE REGULATIONS GOVERNING LICENSEES EN- GAGED IN THE BUSINESS OF MANUFACTURING BUCKWHEAT PRODUCTS. (Effective Nov. 15, 1918.) Rule 1. Unreasonable profits prohibited. — The licensee shall sell buckwheat flour at not more than a reasonable margin over the average cost to him of the buckwheat from which such flour is manufactured. In estimating such average cost he shall include all grain in his possession or under his control by contract or other arrangement, but he shall not include any grain which he has contracted to sell or the products of which he has contracted to sell; provided, That in determining the cost of such grain he shall deduct from the average purchase price the proceeds from the sale of feed or offal created in the milling operation ; or if not sold, he shall deduct its current market value. Any average once calculated shall be taken as the basis for such averaged grain in all subsequent calculations. He shall keep records in such manner as to show how all averages and selling prices have been determined. (Repealed Jan. 10, 1919.) Note. — The Food Administration has determined that the sale of buckwheat flour at a gross margin in excess of $1.25 per 100 pounds bulk product over the cost of the buckwheat is unreasonable and excessive under the foregoing rule. These margins may therefore be regarded as maximum margins, but they do not in any way abrogate or modify the general rule that profits must not be excessive. The Pood Administration will further consider a net earning of more than 10 per cent on the first $25,000 of gross sales of buckwheat products and 8 per cent on all gross sales over $25,000 as prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule 5). This limitation does not modify or abrogate the general principle that a licensee should not earn more than a reasonable net profit on capital invested. Differentials on less than car-lot sales. — The following additional margins over the $1.25 maximum will be considered reasonable by the Food Administration on less than car-lot sales, but this does not modify in any way the 10 per cent and 8 per cent limitation of net profits. The additional margin should be calculated on car-lot price in sacks : (a) Less than car lots to wholesalers or flour mixers, not more than 4 per cent. (b) Less than car lots to bakers, hotels, or retailers, not to exceed 10 to 12 1 per cent in packages of 25 pounds or over; not to exceed 12 to 15 per cent in packages less' than 25 pounds. (Only one of the three foregoing additional margins may be added on any lot.) 588 HISTORY OF PRICES DURING THE WAR. V. RICE. A. SPECIAL REGULATIONS GOVERNING DEALERS IN ROUGH RICE. Hule 1. Maximum margin over cost fixed, — The licensee shall not sell rough rice, except for seed, at an advance over the actual purchase price of tlie par- ticular rice sold in excess of 1 per cent of such purchase price plus the storage charge, insurance, and interest on the investment at the rate of 6 per cent per jiinuim. (Issued Nov. 1. 1917; repealed Jan. 10, 1919.) Rule 2 (as amended Oct. 31, 1918). Brokers and commission merchants' charges limited.— The licensee in acting as a broker in rough rice, or in receiving rough rice on consignment, shall not charge a commission of more than 1 per cent for selling such rice to any person except for seed purposes. If the licensee performs additional services these shall be included as separate items on the account sales, and a separate charge shall be made therefor, in no case to exceed an additional 11 per cent. (Issued July 29, 1918; amended Oct. 31. 1918; repealed Jan. 10, 1919.) Rule 3. Resales prohibited. — The licensee shall not sell rough rice, except for seed, to any person other than a rice miller. (Issued July 29. 1918; repealed Jan. 6, 1919.) Rule 4. Amount of rough rice under control limited to 60 days' supply. — The licensee shall not keep on hand or have in possession or under control by con- tract or other arrangement any rough rice, except for seed purposes, in a quan- tity in excess of his reasonable requirements during the period of 60 days. (Issued Nov. 1, 1917, as to " any food commodities " ; repealed Jan. 6, 1919.) Rule 5. Contracts must provide for shipment within 60 days. — The licensee shall not make any contract for rough rice for delivery mOre than 60 days after the making of the contract, except for seed. (Issued Nov. 1, 1917, as to "any food commodities " ; repealed Jan. 6, 1919. ) B SPECIAL REGULATIONS GOVERNING RICE MILLERS AND MANU- FACTURERS OF RICE FLOUR. Rule 3. Clean rice not to be sold at more than reasonable advance over cost. — Any licensee engaged in the business of milling rice shall sell cleaned rice at not more than a reasonable advance over the cost of such rice without regard to the market or replacement value at the time of sale. (Issued Nov. 1, 1917; repealed June 16, 1919.) Note Brokers' commissions. — Brokers -will be considered by the Food Administration as making an unreasonable and exorbitant charge for negotiating the sale of rice or rice products in any case where the brokerage exceeds — ,^ . ., (a) Seven cents per 100 pounds on carload orders, except brewer s rice, sold m the followin<^ cities • New York ; San Francisco ; Charleston ; Savannah ; Jacksonville, Fla. ; St Louis; Chicago; Kansas City, Mo.; Galveston and Houston, Tex. ,^ . v, (6) Six cents per 100 pounds on any quantity of rice, except brewer's rice, sold in New (0) Eight cents per 100 pounds for carload orders, except brewer's rice, sold at any othei point except those designated in (a) and (ft). (fi) Six cents per 100 pounds on brewer's rice sold at any point and in any quantity, (e) Twenty-five cents per ton on rice bran or rice .polish at any point and in any (/) Six cents per 100 pounds on rice flour sold at any point and in any quantity. Rule 7. Maximum margins governing manufacturers of rice flour. — The licensee shall not sell rice flour at an advance of more than 75 cents per 100 pounds over the purchase price of brev^^er's rice or screenings delivered at the mill. (Issued July 29, 1918; repealed June 16, 1919.) VI. SUGAR. A SPECIAL REGULATIONS APPLYING TO ALL MANUFACTURERS AND REFINERS OF CANE SUGAR AND BEET SUGAR. Rule 3. Prices shall conform to price list furnished.— The manufacturer shall furnish to the United States Food Administrator, Washington, D. C, and deliver to the trade a price list showing his selling price and all selling terms and differentials in force. After such price list or any subsequent price list is issued the manufacturer shall make no sales of suger except at the price, dif- ferentials, and terms shown in the price list then in force until he has mailed to the United States Food Administrator a new price list showing any change made GOVERNMENT REGULATIONS RELATING TO PRICES. 589 in said price, differentials, or terms and has received tlie written approval of the United States Food Adnainistrator to any change in differentials and to any addition to the list of new types of sugar or styles of packages: Provided, That every price list and contract to sell sugar shall include a stipulation that in case a change in the United States Food Administration regulations authorizes a higher price than that named in the contract or price list before the arrival of the sugar at destination, the refiner shall have the right to raise his price to such higher price, and that in case such change requires sales at a lower price than that named in the price list or contract before the arrival of the sugar at destination, the refiner shall be required to reduce his price to such lower price. (Issued Oct. 1, 1937 ; added to July 1, 1918 ; repealed Jan. 26, 1919.) Note.- — The issuance of price lists by manufacturers of beet sugar will not be necessary until August 1, 1918, and after that date it will be dispensed with in cases in which ihe manufacturer shall have entered into a proposed voluntary agreement with the United States Food Administrator prescribing other methods of supplying such infor- mation. Rule 4. Maximum brokerage fixed. — The manufacturer shall not pay any broker commissions in excess of one-fourth of 1 per cent on the value of raw sugar bought, or in the case of refined or semirefined sugar sold in excess of 5 cents per hundred pounds, excepting, however that a higher commission may be paid for any special service if first approved by the United States Food Ad- ministrator. (Rules issued Oct. 1, 1917 ; limited brokerage on beet sugar to 5 cents per 100 pounds cane sugar as noted here. Combined June 15, 1918, as noted here; repealed Jan. 26, 1919.) Rule 5. Double brokerage prohibited. — The manufacturer shall not allow or pay to any person any brokerage or commission on sugar or its by-products on which he knows a commission or brokerage to have already been paid. ( Issued Oct. 1, 1917; repealed Jan. 26, 1919.) B. SPECIAL REGULATIONS APPLYING TO REFINERS OF CANE SUGAR. Rule 2. Sugar to be sold at reasonable advance over cost. — The manufacturer shall sell his sugar at not more than a fair and reasonable advance over cost. (Issued Oct. 1, 1917; repealed Jan. 26, 1919.) Note. — The United States Food Administration will announce from time to time what advance it considers fair. Rule 3. Price of sirups and molasses. — The licensee shall not sell the follow- ing products, when manufactured from imported raw cane sugar, at prices to exceed those named below, which are based on the cost of imported raw sugar to the refiner. (Issued June 15, 1918; repealed Jan. 26, 1919.) Per gallon, in barrels. Per gallon, in bulk. Refiner's sirups, highest grade (fancy filtered) Refiner's sirups, medium grade (filtered) Refiner's sirups, low grade (unflltered) Blackstrap molasses Cents. Cents. The prices named are f. o. b. cars at primary markets or port of entry, for point of production if carrying same freight rate as from primary markets, net cash in 10 days without discount, and shall include brokerage and any profit taken by a distributor in tank cars direct from the refinery, but shall not include freight or tank-car charges. Note. — Any questions in regard to the grading of fancy, medium, and low-grade sinips ■will be determined by the United States Food Administration committee on sirup valuations. Preference to domestic orders for sirup. — The Food Administration urgently requests that in accepting and filling orders for refiners' sirups preference be given domestic- customers over exporters. If this is not done voluntarily, it will be necessary to considei- regulations limiting the export of such shipments. 590 HISTORY OF PRICES DURING THE WAR. C. SPECIAL REGULATIONS APPLYING TO PRODUCERS OF BEET SUGAR. Rule 2. Unreasonable profit prohibited. — The manufacturer shall sell beet sugar, beet molasses, ami beet pulp at not more than a fair and reasonable ad- vance over cost. (Issued June 15, 191S ; repealed Jan. 26, 1919.) NOTE.^ — ThP United States Food Administration will announce from time to time what advance it considers fair. Until further notice any sales of beet sugar at a price in excess of the selling price, at the same time and place of standard granulated sugar made from cane produced in the United States (including insular territories), will be considered evi- dence of a violation of this rule. Beet molasses. — Until further notice any sales of heet molasses at a price in excess of 18 cents a gallon in bulk or 23 cents a gallon in barrels, f. o. b. factory net cash in 10 days without discount will be considered evidence of a violation of this rule. This price shall inclucie brokerage and any profit taken by a distributor in tank cars direct from fac- tory, but shall not include freight or tank-car charges. Beet pulp. — The Food Administration will regard any sales of beet pulp at prices greater than those named below as a violation of the above rule : Beet pulp wet from factory or from silo within first 30 days after manufacture, 80 cents per ton. Beet pulp out of silo after 30 days therein, $1.25 per ton. Dried pulp sacked, f. o. b. factory, $40 per ton. D. SPECIAL LICENSE REGULATIONS APPLYING TO MANUFACTURERS OF REFINED, SEMIREFINED, AND RAW SUGAR PRODUCED FROM SUGAR CANE GROWN ON THE MAINLAND OF THE UNITED STATES AND SOLD FOR DIRECT CONSUMPTION. Rule 2. IJnreasonable profits prohibited. — The manufacturer shall sell his sugar at not more than a fair and reasonable advance over cost. (Issued July 31, 1918; added to Oct. 21, 1918; repealed Jan. 26, 1919.) Note. — The United States Food Administration will consider as a violation of the above rule any sale of direct consumption sugar at a price in excess of $9 per 100 pounds f. o. b. seaboard points or points of production carrying the same freight rate as seaboard points, with the customary discounts, terms, and conditions, less the following differentials : Plantation granulated No differential. White clarified 10 cents per hundredweight. Off plantation granulated 10 cents per hundredweight. Off white 15 cents per hundredweight. Choice yellow clarified 15 cents per hundredweight. Prime yellow clarified 20 cents per hundredweight. Kettle 20 cents per hundredweight. Off yellow clarified ^ 30 cents per hundredweight. Seconds and thirds (first group) 80 cents per hundredweight. Seconds and thirds (second group) 90 cents per hundredweight. Seconds and thirds (third group) $1 per hundredweight. Seconds and thirds (fourth group) $1.10 per hundredweight. Seconds and thirds (fifth group) $1.20 per hundredweight. The differential on all grades of semirefined direct-consumption sugars not listed above shall be the differential indicated for sugars of equal grade ; or if of an inter- mediate gi-ade, at the differential of the listed grade next below ; and the differential on sugars, the grade and price of which can not be thus determined, shall be fixed by the said sugar committee. The above grades shall be determined with reference to the standard samples thereof as fixed by the New Orleans Sugar and Rice Exchange, with the approval of the United States Food Administration, and now on file with said ex- change In case of dispute regarding the grade, the final decision shall be made by the Louisiana sugar committee. The Food Administration will further consider as a viola- tion of the above rule any sale of raw sugar at a price delivered at customary Louisiana refining points in excess of $7.28 per 100 pounds for 96° test, and any sale of washed sugar (which is defined as any first sugar above the grade of raw sugar and below the grade of off yellow clarified, and having a color test of not less than 22 Dutch standard) at a price in excess of $7.68 per 100 pounds, with an addition of one-sixteenth cent per pound for ever.y degree or fraction thereof above 96° and a reduction of one-tenth cent per pound for every degree or fraction thereof below 96°. GOVERNMENT EEGULATIOlSrS EELATIlsTG TO PRICES. 591 VII. CANNERS OF PEAS, TOMATOES, CORN, DRIED BEANS, SAL- MON, SARDINES, AND TUNA, AND MANUFACTURERS OF TOMATO CATSUP, TOMATO SOUP, AND OTHER TOMATO PRODUCTS; CON- DENSED, EVAPORATED, OR POWDERED MILK. A. SPECIAL REGULATIONS GOVERNING LICENSEES ENGAGED IN THE BUSINESS OP CANNING PEAS, CORN, TOMATOES, DRIED BEANS, SALMON, Sardines, or tuna, or manufacturing tomato SOUP, TOMATO CATSUP, OR OTHER TOMATO PRODUCTS. (The following special rules correspond to series B, and in so far as they apply to the canning of peas, corn, tomatoes, dried beans, salmon, or sardines became effective Nov. 1, 1917, unless otherwise noted. They became effective as to tomato catsup and other tomato products other than canned tomatoes on Feb. 28, 1918. They became effective as to canned tuna on June 15, 1918.) Rule 2. Manufactured products must be sold at not more than reasonable ad- vance over average cost. — The licensee shall sell goods manufactured and on hand for not more than a reasonable advance over the average cost of the sea- son's pack, without regard to the market or replacement value at the time of such sale. ( Issued Nov. 1, 1917, providing for sale at " not more than reasonable advance over cost of such goods"; changed Jan. 28, 1918, to present form; repealed Jan. 10, 1919.) The canned-goods division, under date of September 7, 1918, issued the fol- lowing announcement : TO CANNERS AND DISTRIBUTORS OF LICENSED CANNED VEGETABLES. \ In order to make clear the attitude of the Food Administration in regard to the rules and regulations governing canners and distributors of licensed canned vegetables, the following announcement is made in regard to canned corn, canned tomatoes, and canned peas: 1. Future sales. — Before invoicing goods which were sold for future delivery, canners have been instructed to review their estimate of cost, and if it is determined at the time of shipment that the actual cost is lower than the estimated cost, prices must be revised by the canner so that the margin of profit will not exceed the maximums announced as reasonable. 2. Revision of prices. — Revision of prices must occur before invoicing. It "would be impracticable to rebate throughout the channels of distribution in order to give the con- sumer the benefit of low^er prices ; therefore the canner's invoice price is the final price, and no revision after invoicing wilk be permitted, with this exception : If the direct customer of a canner will agree to accept delivery and withhold the goods from distribution, the canner will be permitted to bill at the time of shipment at the future contract price, pending the final determination of his cost at the end of his pack. In this case the purchaser must make payment on the basis of this invoice and in accord- ance with its terms permitting the canner to make final adjustment, if any, in the form of a rebate. The purchaser must in such cases await the canner's final price before invoicing these goods. 3. Spot sales. — Canners who have made delivery in good faith at future contract prices and later find their costs are lower than anticipated must sell the balance of their pack at such prices as to insure their making no more than the maximum margins on the entire season's output. In these cases purchasers who have already received shipments at the contract price must be given the opportunity of purchasing such surplus at the lower price. This surplus must be offered to such purchasers pro rata up to a quantity equal to their future purchases. 592 HISTORY OF PRICES DURING THE WAR. The canned foods and distribution division issued the following announcement, under date of October 22, 1918 : TO CANNERS AND DISTRIBUTORS OF LICENSED CANNED VEGETABLES. (Statement supplementing announcement of Sept. 9, 1918 — Revision of contract prices.) As many inquiries have been received with reference to the proper construction of the announcement made September 9, 1918, as to the revision of contract prices of canned corn, canned tomatoes, and canned peas, it is deemed advisable to make the following general statement : Where the packer's profits prove to be greater than those permitted by the rules of the Food Administration, he shall remit the excess to the purchaser, who shall credit the amount received by him upon the average cost of goods of the same grade and size of the same commodity then in his possession or invoiced to him. Attention is called to the fact that the rules permit, but do not require, that goods of dififerent brands be averaged. In a spirit of fairness to the packer, therefore, the pur- chaser should apply the reduction in cost first to goods then in his possession under packers's label, up to an amount in cents per dozen equal to the rebate, before applying the reduction in cost to goods under other labels. If the purchaser's stock of such goods is so small as to make this impracticable or the price ridiculous, he shall apply to the wholesale .section of the Food Administration for instructions. The packer shall make to the canned foods division of the Food Administration a state- ment giving the names of the purchasers to whom such payments are made, the amount of each payment, and stating the grade and size of the canned goods on account of which each payment is made. The purchaser shall also make a written statement to the wholesale section of the Pood Administration showing the amounts so received, from whom received, and how the same were credited. The wholesaler will not be permitted to make any rebate to the retailer on the price of any goods already delivered to the retailer. In this connection attention is called to the fact that the wholesaler can not sell at a price which will enable him to realize more than the prescribed margin of profit over the average cost, reduced as above provided for. The average cost is to be determined in the manner required by the rules and regulations. (Rules 6 to 11 apply to the canning of fresh vegetables and fish only.) Utile 6. ftuotations or sales before February 1 prohibited.— The licensee shall not quote for future packing or delivery or sell any canned peas, canned corn, canned tomatoes, tomato soup, tomato catsup, or other tomato products, canned salmon, canned sardines, or canned tuna before February 1 of the year in which such products are to be canned : Provided, That this rule shall not apply to sales to the Government of the United States. (Issuetl Nov. 1, 1917 ; repealed Jan. 10. 1919. ) Note — This rule corresponds to special rule 1, series B, governing canners. It was amended to its present form January 28, 1918. " Shall not quote for future packing or delivery or sell " includes acceptance of orders subject to approval of price when named. This rule prohibits the acceptance of conditional orders or commitments of every kind. Rule 9. licensee must not buy commodities already sold.— No licensee shall buy or contract to buy any of the vegetables or fish required for the above- mentioned products if he has reason to believe that the seller has already con- tracted to sell the said materials to other persons. In buying vegetables or fish for such products he shall require the seller to state in writing, in the contract or otherwise, that he has not contracted to sell said vegetables or fish to others. (Issued Nov. 1, 1917; repealed Dec. 3, 1918.) Note. — This rule corresponds to special rule 5, series B, governing canners. The canned goods division issued the following announcement on November 1, 3918: The Food Administration has been able to arrange for a sulficient quantity of tin plate to permit the packing of beans. Permission is herewith granted to canners of beans to pack during the months of November, December, and January a total quantity not in excess of a normal pack for these three months. Canners may use up all odd-sized tins now on hand, but additional purchases of tins smaller than No. 2 size will not be permitted. It is still necessary for all shippers selling beans to canners to secure permits before making sales. Canneis may not, however, contract for more than a three months' supply of cans or beans. GOVERNMENT REGULATIONS RELATING TO PRICES. 593 ESTABLISHED PRICES— CANNED GOODS DIVISION. The canned goods division has prepared the following, which shows what has been done in establishing prices on commodities under its supervision : CANNED SALMON. Conferences were held with the State food administrators and fishermen on the coast and maximum prices were adopted which were as follows : RAW FISH. Alaska section. Kings (each). Reds (per fish). Cohoes (each). Dogs (each). PinJ:s (each). Bristol Bay Ilerendeen Bay Central Alaska Yukutat: Over 15 pounds.. . Under 15 pounds. Southeast Alaska S50.40 .25 .50 .40 .15 1.09 SO. 07 M2 .12 .32 mo4 .08 .05 .09 110.02 .04 .04 .OU .06' Oregon : Columbia River- Chums Chinooks Then Silvevsides . Steelheads Rogue River — All grades . Chinooks _. 1 Per pound. Cents. SI (1 3* \2 5" 6J 9i Washington coast streams. Grays Harbor .. Willapa Harbor Toholaa Noclips Queets River . . . Prices per pound. Chinooks. Cohoes. Chums. Cents. 6i 6} 5f 6i 44 Cents. 6i 6i 44 After reaching a basis for maximum prices to be paid to the fishermen, a committeee consisting of three State food administrators, Mr. Deming, who represented the division of coordination of purchase, and Mr. Warren, who represented the canned foods division, investigated packing costs in Alaska and the following maximum prices on the different grades were established. CANNED SALMON. Alaska salmon. No. 1 tails (per dozen). No. 1 flats (per dozen). Halves- flat (per dozen). Reds .12. 35 2.25 1.65 1.60 S2. 50 2.40 1.80 1.75 .«. 65 1.65 1.10 1.10 Medium reds Pinks Chums iTo Sept. 10. ^To Sept. 20. 3 80 cents per box to be paid for hauling to Noclips, including return of empty boxes. 12.5547°— 20 38 594 HISTORY OF PRICES DURING THE WAR. Since the Alaska prices were established the following maximum prices have been estab- lished for salmon caught in Oregon waters and salmon caught in Washington waters : COLUMBIA RIVER AND OREGON COAST STREAMS. No. 1 tails (per dozen). No. 1 flats (per dozen). Halves (per dozen). Fancy ."spring chinooks Standard spring and No. 1 fall chinooks. Blue backs No. 2 fall chinooks Silver sides No. 3 chinooks and chums $3.15 2.75 2.30 2.40 1.75 $3.25 2.85 2.40 2.50 1.85 $2.00 1.75 2.00 1.50 1.60 1.10 rUGET SOUND AND WASHINGTON COAST STREAMS. Tails (per dozen). Flats (per dozen). Halves (per dozen). Fancy springs or chinooks . . . Standard springs or chinooks Cohoes Chums $3.15 2.75 2.40 1.75 $3.25 2.85 2.50 1.85 $2.00 1.75 1.60 1.10 CANNED SARDINES. Eastern. — The Maine State food administrator early in this year called a conference of the fishermen heavily interested, and a price of $25 per hogshead for raw fish was estab- lished as the maximum price to be paid by the packers. A little later a committee representing a very large proportion of the Maine sardine packers appeared before Mr. Munn and a voluntary maximum price was established of $6.50 per case for one-quarter oil canned sardine. Later the Canadian authorities adopted the American prices as maximum. Western.— The sardine situation has recently been handled in California by Mr. Munn in conferences held with the fishermen and packers, and the basis is as follows : Maximum prices for raw sardines : Per ton. Under 71 inches r $30 Over 7i inches 15 Based on these raw-fish prices, the following maximum canned sardine prices were approved : Oil (per case). Quarter round. One-half round Ones round . . . Ones oval One-half oval.. CANNED TUNA. The tuna situation was handled by conferences with the fishermen at which the maxi- mum prices for raw tuna were established as follows : One hundred and ten dollars per ton for Albacore and blue-fin tuna, and $100 per ton for all other tuna. Later the canners were gotten together and the prices on canned tuna were established as follows : Per doz. 48/1's $3. 375 48/Vs 1.90 48/rs 1. 25 GOVEKNMEIsTT KEGULATIOFS EELATING TO PKICES. 595 CAN^-ED CORN, PEAS, AXD TOMATOES. It has been impossible to reach the grower. The canner, however, has been on the basis of maximum margins of profit as announced in Bulletin No. 38. issued by the canned goocis division on Mny 1, IQIS, which reads as follows : Based on the views of the Federal Trade Commission of reasonable profit and the Food Administration's valuation of reasonable crop hazard insurance, the following maximum margins in cents per dozen cans are announced for licensed canners between cost and selling price. Excess of these margins will be considered unreasonable under the food-control act. Cost shall not include income and excess profits taxes, interest on investment, interest on long-term notes, or crop hazards. Corn (per dozen cans) : ^^^. No. 2, standard jg No. 2, extra standard- 2o No. 2, fancy 1111111111111 30 Peas (per dozen cans) : No. 2, substandard (average all sizes) ^- No. 2, standard (average all sizes) IZl 22 No. 2, fancy (average all sizes) ~ oi _ NoTE.--Greater niargins on smaller sizes of peas, offsetting less margins on larp-Pi- sizes, will be allowed, provided the average does not exceed margin annoufced. ^ Tomatoes (per dozen cans) : p No. 2, standard ■_ ' No. 2J, standard I—ZIIIIIIIIIII 22 No. 3, standard „„ No. 3, fancy ^ -IIIIIIIIIZIIIIIIII 31 No. 10, standard " No. 10, fancy -------------II"IIiriII"]III"I 100 XT ^'"J'^oT'''o™™ i^f margins on standard tomatoes a deduction of 5 cents oer do7en on ^''^^■\^" h^^'^^'^H ^''''*''' per dozen on No. 10 shall be made for the subltandard |?ade - While profits shall be reasonable, the Food Administration adopts the gaieral princiDle' produc^t^on ^PO^'tant producing agencies, that profits must be sUcim to encourage These margins are believed to be ample to provide a fair stimulative profit to the can tSiellnc^dTnt'^^trtil'^as^^.;''"' '''^^""""' ""^' '^^^^^•'^^' ^'^^ '"^^ Peculfai^^L^cl^- as^uMeToS'^T'^V'do ^of clV^ng^^^ig^^ife^^ ""^'""" "^^'^-^^^ ^°^ --* ^^ --ire May 1. Changed to June 1 on Apr. 30, 1918 ; changed to July 15 on May 24. 1918 ; repealed Jan. 10, 1919. ) Rule 4. Dried fruits must be sold at not more than a reasonable advance over cost. — The licensee shall sell his products for not more than a reasonable ad- vance over the cost of said products and without regard to market or replace- ment value at the time of said sale. (Issued Mar. 30, 1918; repealed Jan. 10, 1919.) DRIED FRUITS. Rule VIII-A-2. — The canned goods and dried fuuits division has prepared the following, which shows what has been done in establishing prices on dried fruits. The dried fruit situation has been handled largely by Mr. Merritt, State food administrator for California, and his conferees. In each instance a large majority of the representative growers have been brought together and voluntary agreements have been reached covering the maximum prices. The dried fruit packers were then handled in the same way and adopted a maximum of profit of 4 per cent. The prices for dried fruits in California are as follows : PEACHES. Maximum price to grower, 11 cents, which includes 8 per cent gain in dip already agreed upon. Maximum price to trade. Cents. Choice yellow, bulk basis 113 Fancy yellow, bulk basis 12J Choice muir, bulk basis _ 111 Fancy muir, bulk basis 121 (Add 1 cent per pound for 50's and IJ cents for 25's.) KATSINS. Bnyin-i price to (jroiccr. Cents. Muscat 5i celling price to trade. Faucy seeded ' $0. 0962 Choice seeded ■ 09125 Bulk seeded ^ . 08 Loose 2 crown ^.075 Loose 3 crown ^.08 I'RUNES. Cents. 40-50 bulk basis 1 10 50-60 bulk basis 9 70-80 bulk basis 81 The Orpgon situation was handled by Mr. Ayer. The Oregon prices on prunes are as follows : Cents. 40-50 bulk basis 10 50-60 bulk basis 9 60-70 bulk basis 9 70-80 bulk basis 8| V DRIED APPLES. While dried apples are licensed, it has been found impossible to reach any general vol- untary agreement with the growers owing to the peculiar production feature, in that they are produced practically everywhere. We are, however, attempting to regulate the prof- its of packers on the 4 per cent maximum basis. 1 Per lb. in 25-lb. boxes. GOVERNMENT REGULATIONS RELATING TO PRICES. 597 Rule VIII-A-2 is not to be construed as prohibiting the making of a contract whereby a pacljer or association agrees with a grower to market the grower's crop at the price pre- . vailing when the crop is marketed ; nor is the rule to be construed as affecting any such contracts that are already outstanding. (Opinion A-106, July 22, 1918.) Rule 5. Price lists and circulars to be mailed Food Administration. — Licensees quoting dried fruits for shipment in carload lots shall mail promptly to the dried-fruit division of the United States Food Administration, Washington D C all price lists and circulars relating to prices on dried peaches, apples, prunes! orraisms. (Issued Mar. 30, 1918; repealed Dec. 3, 1918.) ^^'To""^^^^ ^' ^' *' ^^^ ^ correspond to special rules 1, 2, 3, and 4 series B suddIp- May 2I llm ^'^^^ "^"^ ^^' i''^^- ^""'^^ ^ ^°^ ^ ^''^ amended to iheh"^-esent form IX. DEALERS AND BROKERS IN, AND IMPORTERS OF CERTAIN VEGETABLE OILS AND THEIR RAW MATERIALS. A SPECL\L REGULATIONS GOVERNING LICENSEES DEALING IN COT- COTTO?f GINNERS^^'^^^^^' ^^^^^^^ ^^ SUCH COMMODITIES, AND Rule 3. Licensee must not pay higher prices for cotton seed' or peanuts' in one market than in another.— No licensee shall pay or offer to pay higher prices for cotton seed or peanuts in one market than he pays or offers to pay for cotton seed or peanuts of the same quality in any other market: Provided, Jwwever Ihat when zones are established as mentioned in the note to Rule B-8, he may pay varying prices in the several zones, but must pay the same price at all points in the same zone on the same day for cotton seed or peanuts of the same quality. (Issued July 1, 1918.) Rule 5. Cotton seed' or peanuts => to be sold at not more than reasonable advance over cost.— The licensee shall sell cotton seed and peanuts at not more than a reasonable advance over the actual cost to him of the particular cotton seed or peanuts, sold without regard to the market or replacement value at the time of sale. (Issued Nov. 1, 1917, making exception for licensees who could r^riuL? oTr ^ ?.■ P^^^^'^«^. ^°d manufacturing costs of particular com- licensee ) forbidding averaging costs, etc., of separate mills operated by a .'^PJ^-—-^fi(^ctyve July 1, 1918, and until further notice the United States; Food \r\ ministration will regard any sale of cotton seed at advances greater than those indlcafpri" ^ rn ^'p,^^ l^^ P^^^^f P^ '^ *^' «"^^ ^«"°° seed as a violation of the above rule Z''*^''^^*"'^ f«HU,v«".*n^.f^^ ^^A ^^K""^ '^''"l^ ^^^'^ ^l»ere the licensee provider the necessary facilities and capita , and bears the expenses and risks incident to the business ^^ P" o?V'°'^i''*^'"^ ^ili^ery and loading of seed into cars at mills) business, ?3 (2) Purchase and sale of cotton seed where the licensee onerates as iirinpin«i h,i<- (3) Any margin or commission in excess of 25 cents per ton to a licensee oneratin? a«*^,n'"rl\^a^?'' *'''a^' dealer, who buys and sells cotton seed in car lots wfll beTegarded as unreasonable. Any commission must be paid by either the seller or final buver ont of his spread or margin, and if any dealer in car loti takes a margin for such hand in^thP person who buys from him shall deduct such margin from his own perSibllsDrefdo? margin unless it has already been deducted by the original seller P^^^iissiDie spread or Rule 8. Unreasonable charges by ginners prohibited.— No licensee owning controlling, or operating a ginnery shall make any unreasonable charge for the service of cleaning seed cotton or separating the seed from the lint. (Issued Nov. 1, 1917 ; repealed May 31, 1919.) Note.- The Uriited States Food Administration may determine and announce a maxi mum charge that may be made by licensees for performing the service known as linnine Ginners shall keep a correct record showing the nami and address of ?ach oaftv for Z^T f^^""^ ^'^ ^•'"?°' tl»e amount of cotton ginned in each case and the Ictual charse made for each service. They must also keep a careful record showing the name and «^^''?.l-.o^^*'.'^'i^/^''iy ^'■"'^ ^^S,?" t^-^y purchased cotton seed^ogethT with the aimnt^v 1 Repealed May 31, 1919. 2 Repealed Nov. 13, 1918. 598 HISTORY OF PRICES DURING THE WAR. The charge for ginning should be the same whether or not the cotton or the cotton seed is purchased by the ginner. Ginners should gin as rapidly as possible consistent with good work all dry seed cotton tendered them, and upon demand they should return to the owner the cotton and cotton seed ginned by them. If cotton seed is purchased by the ginner, he becomes a dealer therein, and must be guided by the margins indicated under Rule 5, above. Rule 9. Maximum buying margin below carload market price prescribed. — A licensee who buys cotton seed in less than carload quantities for sale or ship- ment in carload quantities shall buy at a gross margin below the carload market price at railroad points, not to exceed $3 per ton. The cost of hauling from distant points to the railroad may also be deducted. (Rule issued Dec. 7, 1917, provided " No licensee shall sell any cotton seed in car lots at more than $2 per ton, exclusive of customary loading charge, over price paid for said cotton seed." Rule governing 1918 crop issued July 1, 1918, given here ; repealed May 31, 1919. ) B. SPECIAL REGULATIONS GOVERNING LICIDNSEES CRUSHING COT- TON SEED, PEANUTS, SOYA BEANS, PALM KERNELS, OR COPRA, AND DEALERS AND BROKERS IN THE RESULTING OILS. Rule 8. Commodities must be sold at not more than reasonable advance over cost. — The licensee shall sell the products of cotton seed, peanuts, and soya beans at not more than a reasonable advance over the average cost to the licensee of the cotton seed, peanuts, or soya beans from v^'hich such products are manufactured. A licensee who operates one or more cotton ginneries or crushing mills shall keep separate accounts and make reports to show separately the operations of each ; for the purpose of this rule each cotton ginnery or crushing mill shall be considered as a unit and the licensee shall not be permitted to average any costs, profits, or losses between such units. Note. — The United States Food Administration will divide the cotton-producing terri- tory of the United States into zones, and it will determine and announce basic yfelds of oil, meal, linters, and hulls from cotton seed for each zone, and differentials or spreads to represent the difference between the price paid for cotton seed and the total amount any licensee engaged in the business of crushing cotton seed may receive from the sale of the manufactured products of the cotton seed. The licensee will be permitted to sell all manufactured products in excess of the basic yields without reference to the established margin, provided that the price charged for such excess products shall not exceed the average price that will be indicated for the other products in said yield. (Issued Nov. 1, 1917; repealed May 31, 1919.) D. SPECIAL REGULATIONS GOVERNING REFINERS OF COTTONSEED OIL, PEANUT OIL, SOYA-BEAN OIL, PALM-KERNEL OIL, PALM OIL, AND COPRA OIL, AND DEALERS AND BROKERS IN SUCH REFINED OIL. Rule 5. Domestic oil to be sold at reasonable advance over cost. — The licensee shall sell cottonseed oil, peanut oil manufactured from domestic peanuts, and soya-bean oil manufactured from domestic soya beans at not more than a reasonable advance over the average cost to licensee of the crude oil from which such oil was refined.^ (The licensee may consider all refining plants operated by or controlled by such licensees as a single unit.' Licensees who control mills crushing oleaginous materials must credit all raw materials obtained from such crushing mills at the same price at which, they could purchase the same products in the open market at the time of transfer.) (Issued Jan. 28, 1918; repealed May 31, 1919.) Note. — The United States Food Administration will indicate from time to time what margins it considers fair. E. MANUFACTURERS AND DEALERS IN LARD SUBSTITUTES. (Issued Jan. 28, 1918; repealed May 31, 1919.) Rule 2. Licensees engaged in the manufacture and distribution of lard substi- tutes may consider all plants for the manufacture of lard substitutes operated by, belonging to, or controlled by the licensee as one unit for the purpose of deter- mining costs and profits. Rule 3. Licensees engaged in the manufacture of lard substitutes who own or control mills crushing cotton seed, peanuts, or other oleaginous materials must * Issued July 1, 1918 ; repealed as to all except " cotton seed " Feb. 1, 1919. GOVEENMEISTT KEGULATIONS RELATIllirG TO PEICES. 599 credit all raw material obtained from such crushing mills at the same price'art which they could purchase the same products in the open market at the time of transfer. Rule 4. Licensees engaged in the manufacture of lard substitutes who own or control plants for the refining of vegetable oils must credit the refined oil received from said refining plants at the same price at which they could obtain the same product in the open market at the time of the transfer. Rule 5. Every licensee who owns or controls a plant for the manufacturing of lard substitutes shall be subject to such differentials and spreads for the cost of manufacture of crude material Into a finished product as may from time to time be determined and announced by the United States Food Administrator to return a fair profit to the licensee. Rule 6. No manufacturer engaged in the manufacture of lard substitutes shall without the written permission of the United States Food Administrator sell or offer to sell lard substitutes at higher prices in one market than he is selling or offering to sell the same quality or brand in any other market on the same day The price for sales in lots of 5,000 pounds or more, tierce basis for delivery at one time, net after deducting all discoiyits and allowances, shall be taken as the basis m making comparisons for the purpose of this rule. In comparing with this the selling price of lots of less than 5,000 pounds, tierce basis, for delivery at one time, li cents per pound will be deducted from the price actually charged In comparing the price of package and case goods, stated differentials will be determined by the United States Food Administrator from time to time for all manufacturers of lard substitutes. (Issued Mar. 23, 1918.) X. SPECIAL REGULATIONS GOVERNING MANUFACTURERS OF OLEOMARGARINE AND OTHER BUTTER SUBSTITUTES. Rule 1 (effective Dec. 4, 1918), Maximum margins for manufacturers. — The manufacturer shall not sell oleomargarine or other butter substitutes at a greater average advance over the cost of the raw material (in any period of two months beginning Dec. 1) than the sum of his actual manufacturing cost plus a profit not to exceed 10 per cent of the selling price to the wholesale trade. In no case shall the manufacturing cost be figured in excess of $6.30 per hundred pounds (Repealed Jan. 26, 1919.) Manufacturing costs shall include : 1. Labor. 2. Selling expenses. 3. Advertising. 4. Administrative expenses. 5. Depreciation. 6. Taxes, not including excess-profits tax and income tax. 7. Miscellaneous manufacturing expenses, not including interest charges The cost of raw materials shall mean the cost, delivered, at plant of following • (a) Oils. (b) Milk. (c) Salt. (d) Package. (e) Color. if) Stamps. (g) Cartons and paper. (h) Supplies. Note. — The Food Administration does not recognize $6.30 per hundred Dounds a<4 a normal reasonable cost of manufacture, nor 10 per cent net profit as a normal reasonable net profit. These are maximum margins to cover the most expensive legitimate methods or opcraLioii. XL WHOLESALERS, JOBBERS, IMPORTERS, RETAILERS. A. SPECIAL RULES APPLYING TO LICENSED NONPERISHABLE FOOD COMMODITIES. Rule 5 (as amended Dec. 31, 1918). Must sell at reasonable advance over average purchase price.— The licensee, without regard to market or replace- ment value at the time of such sale, shall sell the following commodities at not more than a reasonable advance over the average purchase price of all lots of 600 HISTORY OF PRICES DURING THE WAR. the same grade and size of the same commodity in liis possession or invoiced to him not contracted to be sold : Self-rising flour. ' Dried raisins. ^ Cleaned rice. ^ Dried beans. ^ Rice flour. ^ Dried peas. ^ Oleomargarine. ^ Rye flour. ^ Lard. * Barley flour. * Lard substitutes. ^ Oatmeal. *01eo oil. 'Rolled oats. * Cooking fats. 'Corn grits. ' Condensed, evaporated, or powdered ' Corn meal. milk. ' ' Hominy. ' Canne per cent in packages. C. Where cornstarch is sold to a smaller wholesale grocer under the resale provisions given alx)ve in less than car lots, not to exceed 7i per cent in bulk. D. Where the dealer breaks original packages he may add to his cost the cost of the new package plus actual cost of repacking, in no case to exceed 5 per cent. Sale of lard substitutes. — The following ruling has been made by the law department in reply to an inquiry regarding jobbers' margins on lard substitute: " We }>eg to acknowledge your letter of September 28 in which you inquire whether it is against the Food Administration regulations for a wholesale jobber to sell lard sub- stitute at less than 24 J cents, tierce basis, which under the stabilized program he pur- chases at 23 cents. The Food Administration regulations provide a maximum margin for the wholesaler of li to 2 cents per pound over the purchase price delivered at rail- road station. A general stabilization program affecting lard substitutes and other cotton- seed products has now been adopted by the Food Administration for the purpose of eliminating speculation and reducing the margin between the producer of cotton seed and the consumer of lard substitutes, and this program has been approved by representalives of all interests concerned, who have expressed their desire to cooperate. In view of the circumstances surrounding this program, it will hereafter be considered an unfair practice for any jobber to sell lard substitutes or lard compound in lots of less than .5,000 pounds at a margin over his delivered purchase price less than IJ cents or IJ cents where the jobber purchases in lots of 30,000 pounds or more and receives a concession of J cent. " It should be pointed out that this action rests solely on the peculiar circumstances surrounding the cottonseed program. The reasons applying to lard substitutes do not apply to any other commodity handled by wholesale grocers ; and the policy of the Food Administration and its distribution division is decidedly opposed to the application of any similar principle to other commodities. " It should further be pointed out that the 2 cent maximum margin for jobbers applies on the actual purchase price. The jobber who purchases in lots of 30,000 pounds at 225 cents must sell at not to exceed 241 cents." The maximum margins permitted on sales of nonperishables by wholesalers to retailers prescribed in the announcement of June 6, 1918, and in the note to Rule XI— A— 5 include local cartage, but does not include delivery charges incurred by the wholesaler in de- livering by truck to points to which shipment might be made by rail. The actual ex- pense of making such deliveries by truck may be charged by the seller to the parties to whom the sale is made after the price has been fixed by the seller in conformity with said rule A— 5 and announcement of June 6. In no case, however, shall the added charge be in excess of the freight charge. (Opinion A-113, July 26, 1918.) A brokerage may be paid to a broker in a permissible resale from one jobber or wholesaler to anothei- ; the brokerage must, however, be deducted from the profit of either the buyer or seller so that the price of goods in the course of further distribution shall not bear such brokerage. (Opinion A-118, Aug. 26, 1918.) MAXIMUM MARGINS ON SALES BY RETAILERS TO CONSUMERS. (Issued Nov. T, 1918.) The Food Administration has determined that any sales of food commodities at a gross margin above delivered cost in excess of those indicated below are unreasonable, and will be regarded as prima facie evidence of a violation of the statute and of the above regulation. Percentage may be calculated on the selling price. Delivered cost shall mean the cost at the railroad, steamboat, or other terminal in the retailer's town. Where the retailer is not located in a railroad or steamboat town he may include any hauling charge in the delivered cost. Tlie lesser margin indicated is not a minimum margin, but is a maximum margin for those whose cost of doing business is less, such as stores which do not perform the services of credit and delivery. Any change from the prewar practice in cash discount terms or other changes which tend to or result in increasing the margin of profit allowed will be dealt with as an unfair practice. The retailer may have the benefit of fractional costs on each transaction ; that is, he may calculate the total charge to a customer on any transaction as if fractional costs were not allowed, and if the result is a fraction, he may add thereto such fraction of a cent as may be necessary to make a price in even cents. The following table gives an example in the case of eggs, using the cash and carry margin of 7 cents per dozen : GOVEENMENT REGULATIONS EELATIISTG TO PRICES. 605 Amount of sale. Cost. Margin (cents). Total. Fraction added. Maximum selling price. $0.46i 1.38J 7 14 21 $0. 53i 1.06i 1.59a 4 1 $0.54 2 dozen 1.07 1.60 MAXIMUM MARGINS. Barley flour, original mill packages 18 to 22 per cent. Barley flour, broken mill packages O.OIJ per pound. Rye flour, original mill packages 18 to 22 per cent. Rye flour, broken mill packages O.OIJ per pound._ Corn flour, original mill packages IS to 22 per cent. Corn flour, broken mill packages 0.011 per pound. Rice flour 18 to 22 per cent. Corn meal, bulk 0.011 per pound. Corn meal, original mill packages 18 to 22 per cent. Hominy 18 to 22 per cent. Sugar, all kinds in bulk O.Oli per pound. Sugar, all kinds in refiners' original packages 0.01 per pound. Evaporated milk, unsweetened 18 to 22 per cent. Oatmeal and rolled oats, bulk O.Oli per pound. Oatmeal and rolled oats, original mill packages 20 to 25 per cent. Rice 20 to 25 per cent. Beans,, white or^ colored 20 to 25 per cent. Starch, edible ^ 1 20 to 25 per cent. Corn sirup, tins 20 to 25 per cent. Canned corn, peas, and tomatoes, standard grades 25 to 30 per cent. Canned salmon chums, pink, and red 25 to 30 per cent. Canned sardines, domestic 25 to 30 per cent. Dried fruit, raisins, prunes, and peaches 25 to 30 per cent. Lard, pure leaf, bulk 5 to 6 cents per pound. Lard, pure leaf, tins 18 to 22 per cent. Lard, substitutes, bulk 5 ta 6 cents per pound. Lard, substitutes, tins 18 to 22 per cent. Breakfast bacon, whole pieces 6 to 7 cents per pound. Heavy bacon, whole pieces 5 to 6 cents per pound. Hams, smoked, whole , 6 to 7 cents per pound. In quoting sliced ham and bacon add usual differential to cover actual shrinkage. " Original mill packages "' as used above means where retailer sells product in the same mill container as received by him. " Broken mill packages " means when retailer removes contents from original pack- ages and sells in smaller quantities. By other special regulations the retailer's maximum margins have also been fixed in accordance with the following list : Potatoes, white or Irish . 25 to 30 per cent. Onions 25 to 30 per cent. Eggs (whether sold in carton or not) 1- 7 to 8 cents per dozen. Cold-storage butter ^.-^ 6 to 7 cents per pound. Butter substitutes, oleomargerine, nutmargerine, etc 5 to 6 cents per pound. Note. — The maximum margins on wheat flour and mixed flour were removed December 31, 1918. B. REFINED SUGAPv. Rule 1. Profit on sugar purchased from refiner. — No wholesale dealer in refined sugar who purchases such sugar from the producer or reflnej, direct or through a broker, shall sell such sugar at an advance over the refiner's list price at which he purchased sugar greater than the normal margin charged by wholesale dealers in refined sugar in the same locality, or such margin as may hereafter be established by the Food Adniinistration. (Issued Nov. 1, 3917; repealed Feb. 1, 1919.) (This rule corresponds to special rule 1, series B, Governing Wholesale Dealers in Sugar.) Note. — This rule applies to plantation granulated sugar. 606 HISTORY or PRICES DURING THE WAE. Rule 2. Profit on sugar obtained from other than refiner. — It will be con- sidered an unreasonable practice if two or more wholesale dealers handle the same sugar at a greater total margin than that prescribed by rule 1. No whole- sale dealer or other licensee who purchases refined sugar from any person other than the producer or refiner shall sell such sugar to a retailer or to a i^erson Tising such sugar in manufacturing at a price representing an advance over the producer's or refiner's list price on the day of such sale greater than the advance allowed by the preceding rule to a wholesale dealer in the locality where such sale occurs. (Issued Nov. 1, 1917; added to June 15, 1918; re- pealed Feb. 1, 1919.) (This rule corresponds to special rule 2, series B, Governing Wholesale Dealers In Sugar.) Rule 3. Retail sales must be made at not more than reasonable advance over cost. — The licensee shall sell sugar at retail at not more than a reasonable advance over the actual purchase price of the particular goods sold, without regard to the market or replacement value at the time of such sale. (Issued Nov. 1, 1917; repealed Feb. 1, 1919.) E. DRIED BEANS AND DRIED PEAS. " Rule 1 (as amended July 24, 1918). Future dealing in new crop beans prohibited. — The licensee shall not buy or sell new crop dried beans except for seed, or for the Federal, State, county, or municipal governments or for the Government of any nation at war with Germany, before September 1 of the year covering such new crop if grown in the United States of America, Japan, Manchuria, China, or Asiatic countries, or before June 1 if grown in South America, Porto Rico, or Mexico, (Rule issued Nov. 1, 1917, limited dealing in beans grown in the United States changed July 24, 1918, to include beans grown in countries noted here; repealed Dec. 3, 1918.) Note.— This rule does not prohibit a licensee fi-om guaranteeing a certain price for a crop to be planted ; however, sales against such an arrangement can not be made before September 1. Rule 2 (as amended July 24, 1918). Future dealing in new crop peas pro- hibited. — The licensee shall not buy or sell new crop dried peas grown in the United States of America, Japan. Manchuria, China, or Asiatic countries, except for seed, or for the Federal, State, county, or municipal governments or for the Government of any nation at war with Germany, before July 1 of the year covering such new crop. If grown in South America, Porto Rico, or Mexico such new crop shall not be sold before April 1. (Rule issued Nov. 1, 1917, limited dealing in peas grown in the United States, changed July 24, 1918, to include peas grown in countries noted here ; repealed Dec. 3, 1918. ) Note. — While this rule permits the guaranteeing of a price for a crop, no sales can be made by the licensee before July 1. MAXIMUM MARGINS. . Under Special Rule XI-A-5 speculation in dried beans or dried peas is prohibited. (Eflfective Aug. 20, 1918.) The Food Administration will regard any sales of dried beans or dried peas at a gross margin above delivered cost (purchase price plus freight) in excess of the margins indicated in the following table as prima facie evidence of a violation of the statute and the rules. These margins are guides only. They do not change the rule's. The margins of profit are still limited to a reasonable advance over the average purchase price of the goods sold without regard to the market or replacement value, and a smaller margin may be considered reasonable where the licensee has a lower cost than customary by reason of his failure to perform any part of the services customarily performed by dealers of that class. High margins, even if customary during prewar periods, are not justifiable now. Unreasonable margins are not excused by lower margins on other transactions in the same commodity or in other commodities. GOVERNMENT REGULATIONS RELATING TO PRICES. 607 Class. Services rendered. Maxi- mum margin. Interpretations. 1. Importer. 2. Elevator or clean- ing warehouse. 3. Bean factor. Furnishes letter of credit and buys direct for import. Buys from grower, elevates, cleans, handpicks, and sacks. Buys from grower, elevates, re- cleans and sacks; does not handpick. Buys from retail elevator (or importer) and finances to destination. Buys from grower and has re- cleaned by railroad or public warehouse. Per cent. 10 12 Importers who buy on c. i. f. terms or bank guarantee of payment after arrival of shipment, or who do not assume the direct risk of buying in foreign countries, fall in class 3 and are entitled only to maximum margin of profit lor that class.. The difference between the selling price and the actual cost on a handpicked or recleaned basis should be used in arriving at these margins. These margins have been determined by taking the average cost and ex- pense of operating in different sec- tions of the country. Elevators and warehouses which buy as agents for larger concerns and do not prepare for the market, are not I entitled to more than a reasonable commission for the services rendered, which must be included in the allowed margin of his principal. WHAT RESALES ARE JUSTIFIABLE. General rule 6. — The licensee in selling food commodities, shall keep such commodities moving to the consumer in as direct line as practicable and with- out unreasonable delay. Resales within the same trade without reasonable .iustification, especially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice. Service. — Any transactions that savor of trading in which a profit accrues to the dealer without corresponding service are clear violations of the rule and will subject the offender to revocation of this license and to such other penalty as the law provides. The handling of dried beans and dried peas by wholesale grocers, including those sometimes referred to as " bean jobbers " when such jobbers are not lo- cated in the bean-producing sections, and do not buy from or finance retail ele- vators, is dealt with in the circular of June 6, 1918, on " Maximum margins on sales by wholesalers to retailers and by merchandise brokers ; and justifiable resales for such dealers." The contents of this circular are also to be found in the note to Rule XI-A-5, effective June 15. The provisions regarding importers of beans in the circular of June 6 are superseded by this circular. Resales between bean factors, commonly known as bean jobbers, located in the bean-producing sections who buy from the retail elevators and finance such stock to destination are prohibited unless the sum of the gross profits obtained by such factors does not exceed the maximum reasonable profit for that group. Resales between elevators or cleaning warehouses are also prohibited unless the sum of the gross profits obtained by such warehouse does not exceed the maximum reasonable profit for that group. Elevators and importers may resell to bean factors, but the effect of the re- sale rule is : " (1) That imported beans shall in no event reach the wholesaler or mer- chandise broker class dealt with in the circular of June 6 at an advance of more than 5 per cent over the price received by the importer, plus freight. (2) That domestic beans shall reach ,the wholesaler or merchandise broker class dealt with in the circular of June 6 at an advance of not more than 5 per cent (or 7 per cent as the case may be), plus freight, over the price received by the elevator. It may be noted that by the provisions of the circular of June 6, after the beans reach the wholesale grocery or merchandise broker class, they must be sold direct to retailers, except in certain specified cases where one resale at a small margin is permitted. F. DRIED FRUITS. Rule 1. New-crop fruits that are not available for spot delivery not to be bought or sold before July 15, — The licensee, prior to July 15 of the year in 608 HISTORY OF PRICES DURING THE WAR. which new-crop fruits are to be grown and packed, shall not buy, contract to buy, offer for sale, or have outstanding any contract of sale or any connnit- ment for sale of new-crop fruits not available for spot delivery. A commitment shall include all tentative or conditional orders whether definite prices are named or not. (Riile issued Mar. 30, 1918, forbade dealing in dried fruits before May 1 of year grown. Time changed to June 1, Apr. 30, 1918 ; changed to .July 15, May 24, 1918 ; canceled Jan, 10, 1919. ) Note. — This rule and the following rule correspond to rules 4 and 5, series B, Sup- plement 28, which became effective May 7, 1918, and were amended to their present form May 24, 1918. G. CANNED PEAS, CANNED CORN, CANNED TOMATOES, CANNED SALMON, AND CANNED SARDINES. Rule 1. Canned goods not to be quoted before February 1 — The licensee shall not quote for future delivery any canned peas, canned corn, canned tomatoes, canned salmon, or canned sardines before February 1 of the year when such products are to be canned. (Issued Dec. 20, 1917; canceled Jan. 10, 1919.) (This rule corresponds to special rule 3, series B,- governing wholesalers and retailers.) H. GREEN COFFEE. Rule 1 (as amended Dec. 5, 1918). licensees entitled to reasonable profit. — lyicensees in selling coffee, which is owned by any licensee, spot or afloat, on or before December 15, 1918, shall not take more than a reasonable profit over the cost of the particular coffee sold, provided that any sale of spot coffee shall be made at not more than a reasonable profit over the average cost of his entire stock of spot coffee. Each growth of coffee shall be averaged separately. Every invoice or contract covering the sale of coffee subject to this rule shall be marked : " The seller of tlie coffee covered by this invoice or contract hereby certifies that same has been sold subject to special rules 1, 2, and 8 of the Food Admin- istration." The licensee in arriving at the cost of such coffee shall include any gain or loss resulting from any actual hedging transaction on a coffee exchange. For the purpose of this rule, an actual hedging transaction on a coffee exchange shall only include transactions in which the sale or purchase made is finally closed or offset. In calculating the profit permitted by this rule the licensee shall not Include the gain or loss from more than one hedging transaction on the same lot or stock of coffee, but the position of this transaction may be switched from one month to another, provided that all profits or losses from any hedging transac- tion and all facts regarding the switching of any hedge from one month to an- other are included in the licensee's reports. The licensee shall keep any speculative account of the coffee exchange en- tirely separate from such hedging transactions, and the gain or loss resulting therefrom shall not be considered in determining the cost of his hedged stock of coffee. (First issued Feb. 7, 1918; amended June 15 to define hedging transac- tion more in detail ; amended July 24 and Sept. 11 with reference to coffee which might be averaged in figuring cost. Canceled Jan. 10, 1919.) Note.— The above rule applies only to coffee owned by any licensee, spot or afloat, on or before December 15, 1918. Rule 2 (as amended July 24, 1918). Importer limited to profit of 5 per cent. — For the purpose of rule 1 a reasonable profit for an importer shall not exceed 5 per cent gross margin over cost, plus any brokerage or commission actually paid, and the usual ex ship or in store, and shipping charges actually incurred by the licensee on such coffee. If drafts against purchase are drawn in pounds sterling, only the actual amount paid shall be used in figuring the cost. For the purposes of this rule, an importer is one who buys coffee in the country of origin, or coffee in transit to this country, irrespective of terms or conditions of delivery, and who resells such purchase as shipped, in any position, as a whole or in divided quantities without selection of specified chops. A jobber dealing in the foregoing manner shall be considered an importer. (Issued Mar. 9, 1918, limiting profit to 2^ per cent; amended July 24, 1918, GOVERNMENT REGULATIONS RELATING TO PRICES. 609 limiting profit to 5 per cent; made to apply only to coffee owned by licensee on or before Dec. 15, 1918, by note added Dec. 5, 1918 ; canceled Jan, 10, 1919. ) NoT33. — An importer's trausaction is one in which an invoice is sold practically as shipped. For example, a sale of 450 bags, more or less, out of an invoice of 500 bags, in order to enable the seller to obtain the profit allowed to jobbers, will be considered as a violation of the regulations. Eule 3 (as amended July 24, 1918). Jobber limited to profit of 7 J per cent. — ■ For the purposes of rule 1 a reasonable profit for a jobber shall be 7i per cent gross margin over cost, such cost and charges to be computed as prescribed in rule 2. A jobber, for the purpose of this rule, is one who customarily sells coffee in one or more chops to wholesalers, roasters, or other licensed green- coffee dealers. ( Issued Mar. 9, 1918, limiting profit to 5 per cent ; amended July 24, 1918, limiting profit to H per cent, made to apply only to coffee owned by licensee on or before Dec. 15, 1918, by note added Dec. 5, 1918 ; canceled Jan. 10, 1919.) Note. — The prescribed margin of profit does not apply to sales of 25 bags or less. Rule 4 (as amended July 24, 1918). Eesales, with certain exceptions, for- bidden. — The licensee in selling green coffee shall keep it moving to the con- sumer in as direct a line as practicable and without unreasonable delay. Resales, especially if tending to result in a higher market price to the con- sumer, will be dealt with as an unfair practice. One resale from one importer to another is permissible, and on such resale the gross margin of profit stall not exceed 2^ per cent over cost plus such charges as are stated in rule 2. One resale from one jobber to another is permissible, and on such resale the gross margin shall not exceed 3| per cent over cost plus such charges as are stated in rule 2. ( Issued Mar. 9, 1918, limiting profit in sales between im- porters to 1^ per cent and between jobbers to 2^ per cent ; changed July 24, 1918, to 2| per cent for importers and 3| per cent for jobbers ; made to apply only to coffee owned by licensee on or before Dec. 15, 1918 ; added Dec. 5, 1918 ; canceled Jan. 10, 1919.) Note. — More than one resale will be permitted only under very exceptional conditions. The Food Administration realizes that conditions may arise where sufficient justification may be found to warrant further resales. Such resales, however, can only be made with the permission of the Food Administration. Full consideration for the issuing of such permission will be given when sufficient justification can be shown. Rule 7. Must not charge more than the customary brokerage. — The licensee shall not charge, directly or indirectly, a commission or brokerage on the sale of green coffee in excess of that which ordinarily and customarily prevails, under normal conditions, in the locality in which the broker's business is con- ducted. ( Issued Mar. 9, 1918 ; canceled Jan. 10, 1919. ) Rule 8. Only one brokerage permitted. — Brokers shall not receive more than one brokerage on any sale, nor shall they receive an overage except where by force of circumstances they may have become principals through a misunder- standing or delay. When a broker closes out or sells coffee upon which he receives an overage he must send to the buyer, and enter in his reports to the Food Administration, full particulars regarding such transaction. In cases where first-hand dealers (i. e., importers, jobbers, or licensees holding green coffee on commission) employ one broker as their exclusive broker, and such goods are placed to the interior trade through a local broker acting there as the representative of the sole broker of the principal, the licensee under rules 2, 3, and 4 may include under the item of brokerage such extra brokerage or commission as has been heretofore customary for the local broker. All invoices rendered by licensees to buyers of green coffee shall state the entire amount of brokerage paid, if any, on the transaction, and included in the price paid by the buyer. (Issued Mar. 9, 1918; canceled Jan. 10, 1919.) Note. — In the ^reen-co£fee trade it has been customary for brokers, representing exclusively first-hand dealers, to handle these accounts through outside brokers for the interior trade, and these first-hand dealers cover the cost to them of these outside brokers by an additional price, secured from the purchaser. As this custom has been long established, the Food Administration, pending further notice, will permit it to continue, but requires that the full amount of all commissions paid on a transaction shall be shown on the coffee invoices rendered by the seller to the buyer in every case. BOASTED COFFEE. Although roasted coffee itself has not been licensed, it must be carefully noted that all persons selling roasted coffee are subject to the food-control act of August 10, 1917, and that this law expressly forbids unreasonable or exces- 125547°— 20 39 610 HISTORY OF PKICES DURING THE WAR. sive charges. If it is fonntl that the trade is violatiiifr this law as to reason- able profits upon roasted coftee. prompt action will be taken and the Food Administration will also find it necessary to place roasted coffee under license. J. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS qF JIARGARINE OR OTHER BUTTER SUBSTITUTES. OLEO- Rule 1 (new, Oct. 25, 1918). Oleomargarine must not be sold at retail at more than reasonable advance over cost. — The Licensee dealing in oleomargarine or other l>utter substitutes at retail shall not sell at more tlian a reasonable ad- vance over cost without regard to market or replacement value at the time of sale. Cost shall include purchase price plus transportation charges, if any. The licensee may average the cost of all oleomargiue or other butter substitutes of the same kind and grade in liis possession at the point from which the sale is made which has not already been contracted to l)e sold, and may take such aver- age cost as the cost of any particular lot. ^^'hen new lots are added and a new average calculated the licensee shall include in the new averaging all stock remaining on hand of lots already averaged at the average cost of such lots previously determined. If tlie cost of any oleomargine or butter substitutes is averaged the cost of all such products must be averaged. When costs are aver- aged the licensee must keep a record of tlae manner in which such average has been arrived at. (Repealed Feb. 1, 1919.) Note. — The United States Food Administration will regard any advance in excess of 5 cents (o 6 cents per pound over cost as unreasonable and as evidence of violation of tbe abovp rule. Tlie 5 cents per pound represents tlae maximum margin for stores con- ducted on tlie cash and carry or no service plan, while 6 cents per pound is the maximum margin for the extra service stores extending credit and delivery. In determining margins at 5 cents and 6 cents per pound on oleomargine with the fractional costs in favor of the dealer, tlie United States Food Administration has given due consideration to the rising costs of operation which must he met by the dealer. Retailer may have heneflt of fractional east on any transaction. — Retailers whose de- livered terminal costs figure in fractions may have the benefit of such fractional costs. For example, if oleomargine costs at terminal delivery 325 cents per pound, the selling price may be figured as follows : CASH AND CABSY STORES. Amount of sale. 1 pound. 2 pounds 3 pounds Cost. Cents. 321 65 Margin. Cents. Total. Cents. 37 Fraction added. Cents. 1 None. Maxnnum selling price. 3R 75 113 The maximum selling price for the extra service or credit and delivery stores would be 1 cent per pound higher. Rule 2 (new, Oct. 17, 1918). The manufacture and sale of prints of oleomar- garine or other butter substitutes weighing less than 1 pound prohibited. — On and after January 1, 1919, no licensee sliall manufacture or sell units of oleo- margine or any other butter substitute in print form that weighs less than one pound, provided that this rule shall not prevent a retailer from cutting a unit weighing 1 pound or more, and selling a portion thereof to a consumer. (Re- pealed Nov. 25, 1918. ) L. CLEAN RICE. Rule 2. ftuotations of imported clean rice by the pound only. — The licensee shall quote, ))uv, and sell all imitorted clean rice by the pound only. (Repealed Feb. 1, 1919.) Note. — This rule applies to imported clean rico which is held for export. XIL BROKERS AND AUCTIONEERS OF LICENSED NONPERISH- ABLE FOOD COMMODITIES. A broker or auctioneer in a transaction concerning any licensed food com- modity is responsible for any violation by the principal of the regulations gov- erning such transaction. Brokers and auctioneers should, therefore, familiarize themselves with the .general regulations and any special regulations goveriiiBg principals for whom they act. A list of the speciiil rules issued will be found on page 3 of Pamphlet No. I (General License Regulations). GOVEENMENT EEGULATIOi^S EELATHsTG TO PEICES. 611 Brokers and auctioneers in all licensed nonperisliable food commodities must also conform to the following brokers' rules : Rule 1. Commission or brokerage charges limited. — A licensee shall not charge directly or indirectly a commission or brokerage on the sale of food commod- ities in excess of that which ordinarily and customarily ijrevails under normal conditions in the locality in which the broker's, commssion merchant's, or auctioneer's business is conducted and in the particular branch of trade in question. Rule 2. Prompt remittance required. — The licensee shall remit promptly fol- lowing the sale of food commodities received on consignment for sale or dis- tribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, repealed Feb. 1, 1919.) Note. — A commission merchant can not divide his commission with the buyer unless he shows on the account of sales rendered to the consignor that he has done so. Rule 3. Charging of both brokerage and overage prohibited.— The licensee shall not charge or receive for himself, on the sale of any food commodities, both a commission or brokerage and an overage or profit. (Issued Nov. 1, 1917; repealed Feb. 1, 1919.) Rule 4. Sales to self forbidden without written consent of principal. — The licensee shall not directly or indirectly sell consigned food commodities, or food commodities with the sale of which on commission he is intrusted, to himself or to anyone connected with his business without the written permis- sion of his principal. Riile 5. Only one brokerage on sugar permitted. — No licensee shall chai'ge a commission or brokerage on any sugar on which one brokerage or commission has already been charged. (Issued Nov. 1. 1917; repealed Feb, 1, 1919.) Rule 6 (as amended Aug. 15, 1918; effective Aug. 20, 1918). Commissions must not be split with buyer. — The licensee may split with other brokers' commis- sions or brokerage received on the sale of food commodities, but shall not split such commissions or brokerage with the buyer of the food commodities, or any employee of the buyer. (Issued Nov. 1, 1917, as to sugar; changed Aug. 20, 1918, to cover " food commodities," as noted here ; repealed Feb. 1. 1919. ) NoTE.^The payment by a broker of charges incurred by him for telephone and tele- graph messages received by him from a buyer does not constitute the splitting of his commissions with the buyer. Money so paid out is an expense of the brokerage busi- ness. MARGINS FOE BROKERS WHO BUT AND SELL FOR THEIR OWN ACCOUNT. Subject to the provisions of general rules 6, 7, and 8 and the above rules governing commission merchants and brokers, brokers may in proper and necessary transactions buy and sell for their own account. Transactions of this kind should be confined to the smallest possible volume, and in every case must be justified by the necessity of com- pleting cars or dividing carloads among smaller buyers ; such merchants engaged in this business should be guided by the following-suggested margins, which are to be re- garded as maximum gross profits, but are not permitted unless corresponding service is rendered : Per cent. All fiour (except wheat and rye flour), hominy, grits, corn meal, oatmeal, rolled oats, beans, rice, etc 4 Licensed cereals in packages, licensed canned goods, licensed dried fruits 5 These margins shall be inclusive of any brokerage received. In every case where a broker sells for his own account any nonperishable goods that he has purchased from a particular principal, and has received, or is entitled to receive, a brokerage on such goods, he must deduct such brokerage before fixing his margin of profit as a jobber. XIV. SUGARS AND SIRUPS. A. SPECIAL REGULATIONS GOVERNING DEALERS IN GLUCOSE, RE- FINERS' SIRUPS, MAPLE SIRUP. SORGHUM, CANE JUICE SIRUP, CENTRIFUGAL MOLASSES, OPEN-KETTLE MOLASSES, WEST INDIA MOLASSES, AND BLACKSTRAP MOLASSES, AND MANUFACTURERS AND MIXERS OF MIXED SIRUPS AND MIXED MOLASSES. (Effective Nov. 7, 1918.) Note. — The following regulations do not apply to established wholesale grocers handling sirups or molasses through customary trade channels for the hcusehold and bakers trade. Such wholesale grocers are governed by Regulations No. XI and the margins and resale provisions there prescribed. These regulations do apply to all other dealers in pure sirups or molasses, whether sold in original packages or repacked ; and to all licensees who mix, blend, or process in any way sirups consisting in whole or in part of sirups, glucose, or molasses of any kind. 612 iiiSTor.Y or prices during the war, Siile 1. Reasonable profits prescribed. — The licensee without regard to market or replacement value at the time ot such sale shall sell glucose, retiner's sirups, maple sirup, sorjihum, cane-juice sirup, centrifugal molasses, open-kettle mo- lasses, West India molasses, hlackstrap molasses, and all mixed sirups and mixed molasses at not more than a reasonable advance over the average purchase price of all lots of the same grade and size, of the same commodity or the in- gredients thereof, in his possession or invoiced to him not contracted to be sold. The licensee shall keep a record of the manner in which such average has been arrived at, and he shall take as the cost of all stock remaining on hand from lots already averaged the average cost previously arrived at. In selling commodities not yet invoiced to him he shall sell at not more than a reasonable advance over the actual purchase price to him of all lots of the same grade and size of the same commodity, or the ingredients thereof, pur- chased by him but not yet invoiced to him. (Issued Nov. 7, 1918; canceled Jan. 10, 1919.) Note. — }fa7-oin^ for rlcalcrs in pure refiners' sirups or r/lucof^e. — Under the above rule the Food Administration will considei' any grosis margins above delivered cost in excess of those listed below taken by dealers in pure refiners' sirups or glucose, as. prima facie evidence of a violation of the statute and this regulation. A violation of these margins will therefore be considered cause for the revocation of a dealer's license. (a) Where glucose or refiners' sirup is sold by a dealer in car lots (including mixed cars), not to exceed 5 per cent. (b) Where glucose or refiners' sirup is sold by a dealer in less than car lots to bakers, mixers, or manufacturers, not to exceed 12 to 15 per cent. (0) Where glucose or refiners' sirup is sold to a wholesale grocer under the provision of rule 2 .following, in less than car lots, not to exceed 7J per cent. {d\ Where the dealer breaks original packages he may add to his cost the cost of the new packages plus actual cost of such packing, in no case to exceed .5 per cent. The margins named are large enougli to include all ordinary carrying charges. If general conditions should later necessitate the carrying of goods for a longer period than usual, further consideration will be given to this feature. The above margins do not justify tlie taking of a profit greater than was taken by the licensee in prewar times. A large part of the commodities covered by this rule are dealt with in large quantities, and it is quite possible that dealers who handle them in such quantities will receive an unreasonable profit if they take the full maximum margin. In such cases they should continue to sell at somewhat lower margins. Dealers in refiners' sirups and glucose are also subject to the 6 per cent profit limitation following : Profits for dealers and mLrcrs of sirup, glucose, and molasses. — The Food Administra- tion will consider ,a net earning of more than 6 per cent upon the gross sales of pure and mixed sirups, glucose, and molasses by any dealer in sirups as above defined, or by any sirup mixer or blender, to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits (general rule 1— A-.5K This percentage will be calculated for the semiannual periods making up the licensee's fiscal year. The Federal income and excess-profits taxes may not be deducted, but all other taxes may be considered as expenses. The limitation does not modify or abrogate the general prin- ciples contained in the Food Administration regulations that a licensee should not earn more than a reasonable net profit on its capital invested. Blackstrap molasses and refiners' sirups prices. — The following maximum prices have heen named for refiners' sirups and blackstrap molasses sold by the refiner or dealer in tank cars and based on the cost of imported raw sugar and domestic beet manufacture : Per gallon in barrels. Per gallon in bulk. Refiners' sirups, highest grade (fancy filtered). Refiners' sirups, medium grade (filtered) Refiners' sirups, low grade (unfiltered) Blackstrap molasses Cents. 55 40 30 23 Cents. 50 35 25 18 The maximum prices named also apply to imported blackstrap. These prices arc f. o. b. cars at sealjoard point or point of production, net cash in 10 days without discount. They include brokerage, and if sirups or molasses are distributed in tank cars they include the margin allowed to dealer, so that no dealer may sell blackstrap molasses in tank cars at more than 18 cents plus freight and tank-car charges. Where blackstrap molasses or sirups are distributed in barrels, the dealer's margins named may be added to the maxi- mum price. Where sirups are distributed in packages smaller than barrels, the packer may add to the bulk price the actual cost of such packages. Utile 2. Sesale of glucose and refiners' sirups limited. — The licensee shall not resell pure glucose or pure refiners' sirups except (1) to a manufacturer, baker, or mixer using such article in his manufacture, (2) to a retail grocer or con- sumer, (3) to wholesale grocers under one of the following circumstances: A. Continuous service. — The seller may customarily and continuously serve in. less than carload lots wholesale grocers who are serving retail .grocers but who are unable for some sufficient and legitimate reason to purchase direct from the source of supply. , GOVERNMENT REGULATIONS RELATING TO PRICES. 613 B. Carload buying. — A sirup dealer may enjoy the benefit of carload rates from distant points and sell to smaller wholesale grocers who are unable to buy the commodity in carload lots. C. Warehousino. — A sirup dealer may ' continuously and customarily furnish cold- storage or other warehousing service and sell to -wholesale grocers who have not adequate facilities of that character. D. ^Surplus stocks. — A sirup dealer may dispose of surplus stocks bought, not for speculation but in good faith, for the reasonably anticipated requirements of his business under the rules and regulations and which he finds himself unable to dispose of to his regular customers. The fact that such goods have not been warehoused by such dealer will be regarded as prima facie evidence that they were not bought in good faith. No person who purchases glucose or refiners' sirups from a dealer, except a wholesale or retail grocer buying under subdivisions (2) or (3) above, shall resell such glucose or sirup without the written permission of the United States Food Administration. (Issued Nov. 7, 1918; repealed Dec. 17, 1918.) Note. — Wholesale grocers purchasing from a dealer are forbidden to resell, except to retailers, manufacturers, or consumers, under the wholesale grocers' regulations (No. XI) and are limited to a margin of 12 per cent. Permission to resell will be given in proper cases upon the condition that no person from whatever source he buys shall sell glucose or refiners' sirups in bulk at an advance over the manufacturer's price of the particular lot sold greater than that permitted to a single dealer plus actual freight. Sirup mixers may sell their mixed sirups and molasses to any wholesale grocer. XV. SPECIAL REGULATIONS GOVERNING ALL DISTRIBUTORS OF FRESH FRUITS AND VEGETABLES. Rule 9. Terms to be included in every contract unless expressly agreed other- wise. — The licensee shall include in every contract for the sale of fresh fruits and vegetables to be shipped by a common carrier the following terms, and these terms shall be understood as included in every such contract between licensees, even though not expressly stated ; provided, however, that the said terms may be varied by express agreement in writing. (Issued Jan. 28, 1918; repealed Dec. 10, 1918.) TERMS OF CONTRACT. A. The seller shall be responsible for and reimburse the buyer for any failure of the goods to conform to the grade, quality, or condition specified in the contract of sale, except that all sales made f. o. b. point of origin shall be construed to mean that the buyer assumes all risks of damage in transit not caused by the shipper whether there is a bill of lading to the order of the seller or not. B. The shipment shall be deemed to have reached destination when placed on any railroad team track or private unloading track or where awaiting consignee's order for placing on such team or private unloading track. The burden of locating a ship- ment on such arrival shall be on the consignee, provided that the consignor has billed the shipment with proper instructions as to the railroad notifying the consignee. The failure of the railroad to notify the consignee will not be construed as releasing the ■consignee from his obligations to the consignor, provided proper advice as to the car number has been given to the consignee by the consignor. But if the consignee uses every reasonable effort to locate a car and fails, he shall not be responsible for failing to learn of its arrival. Notes. — The rule issued as series B, special rule 13, effective January 28, 1918, is amended by the above rule. This rule applies to the sale of cars in transit, provided the seller advises the buyer that the car is: in transit, the date of shipment, and if possible, where it is located. Note to rules 3 to 9, inclusive. — The above rules have been prepared after con- ference with representatives of those engaged in the business of shipping and receiving perishable food commodities, and have been based on recommendations from them in order to meet a condition which has resulted in great waste of fresh fiiiits and vege- tables throughout the country. The rules are designed to prevent delay in unloading" the shipment of goods contrary to contract, and the resulting traffic congestion and food waste. It is essential that all licensees should cooperate in good faith with the Food Ad- ministration to avoid improper shipments, rejections, and disputes, and to arrange quickly for prompt release, handling, or unloading of the goods involved, and to sub- mit any dispute promptly to arbitration. It is strongly recommended that contracts for the sale of fresh fruits and fresh vegetables be definite as to the quality and grade of goods and ternis of sale and delivery, and be evidenced by a proper memorandum in writing. The Food Administration will consider the certificate of any food-products inspector of the Bureau of Markets of the United States Department of Agriculture as prima facie evidence of the condition of the goods. If no such inspector is available, great weight will be attached to inspection by expert bfiicials of trade organizations. Where no official inspectors are available, due weight will be given to the judgment of such unofficial experts as may have made inspection or are designated or approved by the Food Administration. 614 HISTORY OF PRICES DURING THE WAR. In all cases submitted to arbitration or settlement wiievo the shipment is made, draft, bill of lading attached, the consignor should direct the bank holding his draft to retain the proceeds thereof and to distribute the same according to the result of the final determination. Thereupon the consignee should pay said draft and release the bill of lading. In the case of commodities where it is customary to assort or recondition, and where necessary to preserve food values and prevent waste, fresh fruits and vegetables should be assorted or reconditioned by the consignee upon the consignor's request to recondi- tion and his agreement to arrange for the payment of properly substantiated claims. B. ADDITIONAL SPECIAL REGULATIONS GOVERNING COMMISSION MERCHANTS, BROKERS, AND AUCTIONEERS DEALING IN FRESH FRUITS OR FRESH VEGET-ABLES. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — The licensee shall not charge dii-ectl.v or indirectly an unjust, luireasonable, diseriniinatorv, or unfair commission or lirokerage on the sale of fresh fruits or fresh vegetables. (July 10, 1918 ; repealed Dec. 10, 1918.) Note. — The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator and that the reason for any Increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administration before such increased ]-ate is put Into effect. This rule was formerly Included in series B, general rule 5, governing all licensees as issued November 1, 1917. Rule 2. Prompt remittance and proper account of sales to be rendered. — The licensee shall remit promptly following the sale of fresh fruits or vegetables received on consignment for sale or distribution, and shall render to the con- signor an account showing the true sales and with charges only for services actually performed, and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to " food commodities " ; repealed Dec. 10, 1918.) Note. — This rule is in conformity with speeial rule 2, of series B, issued November 1, 1917. From November 1, 1917, to April 16, 1918, the rule governing all commission merchants, brokers, and auctioneers which limited their charges to " * * * that which ordinarily and customarily prevails under normal conditions in the locality in which * * * their business is condticted * * * " applied to these dealers in perishables. XVI. DISTRIBUTORS OF FRESH FISH AND FROZEN FISH. C. ADDITIONAL SPECIAL REGULATIONS GOVERNING COMMISSION MERCHANTS AND BROKERS DEALING IN FRESH FISH OR FROZEN FISH. Rule 1. Commission or brokerage not to be unreasonable or discriminatory.* — The licensee shall not charge directly or indirectly an unjust, unreasonable, discriminatory, or unfair commission or brokerage on the sale of fresh fish or frozen fish. (Issued Aug. 24, 191S; repealed Dec. 17, 1918.) Note. — The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local food administrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administi-ation before such increased rate is put into effect. This rule was formerly included in series B, general rule 5, governing all licensees as issued November 1, 1917. Rule 2. Prompt remittance and proper account of sales to be rendered. — The licensee shall remit promptly following the sale of fresh fish or frozen fish re- ceived on consignment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed, and expenses actually incurred by the licensee. (Issued Nov. 1. 1917, as to "food commodities"; repealed Dec. 17, 1918.) Note. — This rule is in conformity with special rule 2, of series B, issued November 1, 1917. Rule 3. Agent not to /buy from principal unless noted on accotmt of sales. — The licensee shall not directly or indirectly sell consigned fresh fish or frozen fish or such conmiodities with the sale of which on commission he is entrusted, 1 From Nov. 1, 1917, to Apr. 16, 1918, the rule governing all commission merchants, brokers, and auctioneers, which limited their charges to " * * * thatj which ordinarily and customarily prevails under normal conditions in the locality in which * * * their business is conducted * * * " applied to these dealers in perishables. GOVERNMENT REGULATIONS RELATING TO PRICES. 615 to himself or to auyoue couneeted with his business, unless he notes the facts of such transaction on the account of sales. (Issued Nov. 1, 1917 as to "food commodities"; repealed Dec. 17, 1918.) ' 1 ■'i9i7'~'^'^^^ ^'^^^^ ^^ ™ conformity with special rule 4, series B, issued November Wlien a licensee sells to liimself or to anyone connected with his business he must clearly show on the account of sales that he himself bought the fish and also cWv show the quantity and at what price they were taken over. citariy RECOGNIZED FUNDAMENTALS APPLYING TO THE STORING AND DISTRIBUTION OF FROZEN FISH. Storcrs of frozen flsh, whether storing at the producing districts or in the dis- tributing markets, perform an important function in preserving the overproduction of the various seasonal varieties for consumption during periods of scant production— i. e., the 'winter months. They are a direct and potent aid in encouraging and fostering the production of the fisheries by enabling the various producing units to operate steadily and at full efficiency Broad differences in the first costs of frozen fish must prevail generally, affected as they are by the uncertainties surrounding production, influence of v^-ater temperatures, storms, feed conditions, and many other natural factors incident to the industry. The period of marketability is limited to the cold- weather months. The pack of any one variety must be sold in competition with the total pack of all kinds of frozen flsh throughout the country aggregating over a score of important varieties and many miscellaneous varieties. Marketing must also be carried on in competition with the daily supplies of fresh-caught fish, which fluctuate widely during the winter months. No satisfactory determination of total storage stocks and average costs on most of the varieties of frozen flsh can be reached until after the completion- of the fall runs. Storers of frozen fish and distributors must necessarily contend with these complex and uncertain factors. The business is so speculative in its nature and so variable in its results from season to season that ordinary methods of estimating margins of profit, whether upon particular varieties or the business as a whole are difficult of application* The practice of the original storers in selling portions of their pack of particular varieties m advance of the termination of the season of flush production is a natural outgrowth of the uncertainty. It is a safeguard both for producers and storers and tends to remove some of the speculative features naturally inherent to the industry. PRESENT POLICY OF REGULATIONS. The particular attention of the frozen-fish industry is called to general license regu- lations No. 1 (printed in a separate pamphlet) governing all industries licensed bv the United States Food Administration. (1) The reports required from all licensees will furnish a basis from which to survey the operations of all licensees during the season of 1918-19. As the .season progresses special reports will be requested whenever deemed advisable These will supplement our follow up of daily quotations in the principal distributing centers. ° (2) With the approach of winter certain staple varieties of frozen fish stored in heavy volume will be given special consideration, and the United States Food Adminis- tration hopes, if such action is deemed to be desirable and practicable, to announce maximum prices beyond which these particular varieties can not be sold to the retailer or supplier of hotels and institutions. Such maximum prices, when announced will be based on merchandise costs, with due allowance for reasonable margins of profit. Such maximums, when announced, must be accepted as guides only. They do no<- modify the rules and must not be regarded by storers or owners of relatively low-cost packs as an invitation to take unreasonable profits. Rule 5 of the general license regulations provides as follows : "The licensee shall not import, manufacture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, unreasonable, discriminatory or unfair commission, profit, or storage charge." We call attention to the fact that storers of frozen fish in districts favored by a heavy average production will have acquired their stocks at a much lower cost than storers where the runs of fish have been short and unfavorable. The United States Food Administration will expect the rapid pushing of all low-cost packs through the usual distributing channels early in the season, and under such conditions as will naturally bring about prices to the retailer and the supplier of hotels and institutions materially below any maximum prices which may hereafter be established. 616 HISTORY OF PEICES DURING THE WAR. (3) Attention is Also called to general rule 6 regarding resales within t'ne trade. The aim of the United States Food Administration is to keep the supplies of the vai-ious varieties of frozen fish moving natiirally, freely, and as rapidly as possible into con- suming channels at the prevailing prices determined solely by an open unrestricted maiket in each distributing district and without local or general manipulation and without advantage being taken hy the trade of temporary emergencies creating artificial price conditions. August L'4, 1918. XVIIL DISTRIBUTORS OF POULTRY. ^Effective Dec. 9, 1918.) A. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FRESH POULTRY. INTERTKADING EESTEICTED. General rule 6 provides as follows : " The licensee, in selling food commodities, shall keep such commodities mov- ing to the consitmer in as direct line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, espe- cially if tending to result in a higher market price to the retailer or consumer, will be dealt with as an unfair practice." The United States Food Administration recognizes the following classes of dealers in fresh poultry : 1. Original packers and .shippers. 2. Commission merchants and wholesalers. 3. Jobbers and suppliers of hotels and institutions. 4. Retailers. All trading in fresh poultry must contribute toward moving the poultry in a direct line to the consumer. Sales between dealers in any one of the classes mentioned above are prohibited, except as follows : Sales between wholesalers in different cities will, for the present, be permitted where necessary to .supply the reasonable requirements of the buyer's business, provided there is an actual shipment of the goods, and provided the movement between cities is in the direction of normal crop movement from producer to consumer. In addi- tion thereto, not more than two sales between dealers in class 2 may be made without obtaining the consent of the local Federal food administrator if such sales are neces.sary to supply the reasonable requirements of the buyer's busi- ness, but more than two sales between dealers in class 2 shall not be made without the written consent of the local Federal food administrator. One sale, and only one, between dealers in the same class other than class 2 may be made without obtaining the consent of the local Federal food administrator if such sale is necessary to supply the reasonable requirements of the buyer's Imsiness, but more than one such sale shall not be made without the written consent of the local Federal food administrator. In no case shall a dealer sell fresh poultry to any dealer in a class further removed from the consumer than the class in whicli the seller is included ; for example, a jobber shall not sell to a wholesaler, or a retailer to a wholesaler. No objection will be made to sales of fresh poultry that are made at a price that is less than or equal to the initial cost to the seller of the particular com- modities sold, nor are such sales to be counted as sales between dealers in the same class. Licensees will be expected to find out whether sales are justifiable by obtain- ing information as to the class in Avhich the seller and buyer are dealing, and Ihe location and class of the licensee from whom the seller purchased. This information should be placed on all confirmation of sales. B. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF FROZEN POULTRY. DEFINITIONS. In the following rules the different kinds of dealers in frozen poultry are defined as follows: (c) An original packer or shipper is a person, firm, corporation, or association that assembles and packs the poultry for market or storage. (ft) A commission merchant is a person, firm, corporation, or association that solicits for sale or receives for sale, and sells food products on a commission basis, or that acts GOVERNMENT EEGULATIONS RELATING TO PRICES. 617 as agent or representative of shippers, packers, and otlier distributors in tlie marketing of food products for a fixed package cliarge or on a percentage basis. (e) A wholesaler is a person, firm, corporation, or association other than the original packer or shipper that sells to jobbers or to suppliers of hotels and institutions. (d) A jobber is a person, firm, corporation, or association that sells or distributes to retailers. (e) A supplier of hotels and institutions is a person, firm, corporation, or associa- tion that sells to hotels, restaurants, clubs, dining-car or steamship companies, public or private institutions, or to retail dealers requiring specially selected stock and being furnished a service similar to that rendered to hotels and institutions. if) A retailer is a person, firm, corporation, or association that sells or distributes to constimers. iff) The original storer is the person, firm, corporation, or association that owns poultry -^-hcn first placed in a cold-storage warehouse. Notes. — (1) Where a licensee sells poultry within 30 days from the date of original storage, the buyer may also be considered the original storer to the extent that he may add to the maximum advance over cost allowed in selling as a wholesaler, jobber, etc., any part of 6 per cent over the first storer's cost not added by the first storer. In such cases the first storer who sells within 30 days must inform, the buyer what portion of 6 per cent over his cost he has added. (2) Where a definite lot of poultry is sold before it is placed in a cold-storage ware- house, and if title to this lot actually passes tO' the purchaser, or if title is retained by the seller merely as security for the purchase price, and thereafter the poultry is put in the warehouse, the purchaser will be considered the original storer, even though the poulti'y is carried and insured in the seller's name. Determination of costs. — Wherever in the following rules dealers in frozen poultry are limited in the advance over cost at which such poultry may be sold, " cost " shall be construed to include the purchase price, or in the case of the original packer or shipper the cost into storage, plus storage charges, interest on the goods in storage, and insurance on goods in storage incurred by the seller up to the time of sale, but not to include any other expenses. In determining cost the licensee may average the cost of all frozen poultry of the same kind and grade which have not already been contracted to be sold, and may take such average cost as the cost of any particular lot of that kind and grade. The licensee must keep a record of the manner in which such average has been arrived at and shall take as the cost of all stock remaining on hand from lots already averaged, the average cost previously arrived at. If the cost of any frozen poultry is averaged, the cost of all frozen poultry must he averaged. Notes. — (1) The maximum advances over cost specified in the following rules are not to be regarded as normal or so recognized by the Food Administration. They are intended only to prevent speculation and are purposely made wide to cover cases where methods of doing business are more expensive, to the extent that such methods are justified. Those maximum advances must not be exceeded in selling any specified lot of poultry, and the average advance over cost charged by any dealer must not be more than sufficient to return to him a reasonable profit on his investment in accordance with general rule 5, which is as follows : " The licensee shall not import, manufacture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, un- reasonable, discriminatory, or unfair commission or storage charge." (2) Profits on different sales can not be averaged. The licensee is limited on each transaction to the maximum profit permitted by the rule and regulations. (3) Where a dealer in the sale of poultry adds less than the maximum advance over cost permitted by the rules, the buyer is not, because of this fact, permitted to add to the maximum advance over cost allowed to him any part of the maximum advance allowed to the seller which the seller did not add. (4) The special rules regulating the profits of dealers in frozen poultry do not apply to poultry that is placed in a cold-storage warehouse, but which is removed from the cold-storage warehouse, for distribution for consumption, within 30 days after the date of the original entry of such poultry into the cold-storage warehouse. SPECIAL REGULATIONS. Rule 1. Purchase from dealer charging unreasonable margin prohibited. — No licensee shall knowingly purchase frozen poultry from a dealer who sells at a greater advance over cost than the maximum specified in the following rules. (Issued Mar. 2, 1918; repealed Jan. 8, 1919.) Rule 2. Maximum margins for original packer or shipper.— The original packer or shipper, storing in a cold-storage warehouse, shall not sell frozen poultry to wholesalers at an advance of more than 6 per cent over cost. In case frozen poultry is stored in the name of a commission merchant, the original storer shall be deemed to be the consignor for whom the commission merchant acts as agent. An additional advance not exceeding 5 per cent of cost may be charged by the original packer or shipper in selling to jobbers or suppliers of hotels and institutions. An additional advance not exceeding 10 per cent of cost may be charged in selling to retailers, or an additional advance not exceeding 15 per cent of cost may be charged if the packer performs the functions of a supplier of hotels and institutions, as heretofore defined. (Is- 618 HISTORY OF PRICES DURING THE WAR. sued Mai'. 2, 191S ; margins slightly cliaiiged July 26, 1918; repealed Jan. S, 1919.) Rule 3. Maximum commissions. — A commission mercliant shall not receive a commission of more than 5 per cent on frozen poultry consigned to hiin by shippers or packers. If a commission merchant acts as an agent for dealers other than shippers or packers for the distribution of surplus stocks, the selling price shall not exceed the maxinmm advance over cost to the consignor permitted to such consignor by the following rules, which advance sliall in- clude the commission for such sale. A commission merchant who takes to account consigned frozen poultry shall not receive any other pi-ofit beyond the amount of the commission before specified. A commission merchant shall require from consignors a statement of cost of goods and maximum selling price allowable under these rules. (Issued Mar. 2, 1918; repealed Jan. 8, 1919.) E,ule 4. Maximum, margin for wholesaler. — A wholesaler shall not sell frozen poultry at an advance of more than 5 per cent over cost. If a v\ holesaler also sells as a jobber, he shall not sell at an advance of more than 10 per cent over cost, as provided for jobbers in rule 5. The above maximum advances may be increased by not to exceed 6 per cent of cost in cases where the wholesaler is also the original storer in a cold-storage warehouse. (Issued Mar. 2, 1918; repealed Jan. 8, 1919.) Rule 5. Maximum margin for jobber. — ^A jobber shall not sell frozen poultry at an advance of more than 10 per cent over cost. The above maximum advance may be increased by not to exceed 6 per cent of cost in cases where the jobber is also the original storer in a cold-storage warehouse. Rule 6. Maximiim margin for supplier of hotels and institutions. — A supplier of hotels and institutions shall not sell frozen poultry at an advance of more than 15 per cent over cost. The above maximum advance may be increased by not to exceed 6 per cent of cost in cases where the supplier of hotels and insti- tutions is also the original storer in a cold-storage warehouse. Rule 7. Direct line of distribution defined. — A sale by any dealer in frozen poultry in any of the classes indicated below to a dealer in any succeeding class shall be considered to be in the direct line of distribution : Class 1 : Original packers and shippers. Class 2 : Commission merchants — wholesalers. Class 3 : Jobbers — suppliers of hotels and institutions. Class 4 : Retailers — hotels and institutions. Rule 8. Intertrading restricted. — All trading in frozen poultry shall serve to move the frozen poultry in the direct line of distribution to the CQusumer, and nothing contained in this or the preceding rule shall authorize any licensee to use any more indirect method of distribution of frozen poultry. One sale of any lot of frozen poultry between dealers in the same class may be made where necessary to supply the reasonable requirements of the buyer's business, pro- vided a report is made promptly to the local Federal food administrator. Such sales shall be made at an advance of not more than 5 per cent over cost, except when sold by the original storer, who shall sell at not more than 6 per cent over cost. If sold by a commission merchant to a \yholesaler, the commission shall not exceed 5 per cent. ' * Except for such sales, no licensee shall sell to another In the same or any preceding class of distribution without the written consent of the local Federal food administrator, which will be given only in extraordinary circumstances. Where such consent is given, the dealer shall not sell at an advance of more than one-fourth cent per pound over cost, nor in the case of a commission mer- chant selling to a wholesaler shall the commission amount to more than one- fourth cent per pound : Provided, Jiotvever, That nothing in this rule shall pre- vent sales at cost : Provided further, That nothing in tlws rule shall prevent sales for immediate delivery from one city to another for actual distribution to relieve exceptional local shortage, but a report of any such sale nuist be promptly made to the local Federal food administrator, with the reasons there- for. Such sales shall be made at a price not to exceed 5 per cent over cost ; or if sold by a commission merchant to a wholesaler, the commission shall not exceed 5 per cent : And provided further. That nothing in the rule shall prevent a commission merchant from acting as an agent for dealers other than original shippers and packers, as provided In rule 3. (Issued Mar. 2, 1918; added to .July 26, 1918; repealed Jan. 8, 1919.) Note. — Licensees will l^e expected to find out whether sales are justifiable by obtain- ing information as to the class in which the seller and the buyer arc dealing and the location and class of the licensee from whom the seller purchased. This information should be placed on all confirmations of sales. GOYEIIXMEXT EEGULATIOXS EELATIXG TO PEICES. 619 Rule 9. Brokerage to be included in margins. — If brokers act as agents in anj"^ sale of frozen poultry under these rules, brokerage paid sliall not be added to tlie selling price of the goods. (Issued ]Mar. 2, 191S; repealed Jan. S, 1919.) C. ADDITIONAL REGULATIONS GOVERNING COaCillSSION MER- CHANTS, BROKERS, AND AUCTION'EERS DEALING IN POULTRY. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — ■ The licensee shall not charge, directly or indirectly, an unjust, exorbitant, unreasonable, discriminatory, or unfair commission or brokerage on the sale of poultry. (Issued July 10, 1918; repealed Jan. 8, 1919.) Note. — The Food Administration in enforcing this rule will insist that anr proposed increase in rates be submitted to the local Federal food administrator and that the reason for any increa.sed rate over the prewar normal be justified to liim, subject to the general supervision of the United States Food Administration, before such increased rates are put into effect. The rates to be charged by a commission merchant are more speciflcallv treated under B, rule 3, supra. Eule 2. Prompt remittance and proper account sales to be rendered. — The licensee shall remit promptly following the sale of poultry received on con- signment for .^ale or distribution and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to "food commodities"; repealed Jan. S, 1919.) Note. — When a commission merchant receives a consignment of poultry and guaran- tees to the consignor a definite selling price, he must show on the account sales the actual price at which the goods are sold, together with services actuallv performed and expenses actually incurred, and as a separate item must show any sum paid to the consignor by reason of the commission merchant's contract of guaranty. Failure to do this will be considered a violation of the above rule and also a misstatement of the price at which commodities are being sold, in violation of general rule 19. Eule 3. Agent not to buy from principal unless noted on account of sales. — The licensee shall not, directly or indirectly, sell consigned poultry or poultry v\-ith the sale of which on commis.sion he is intrusted to himself or to anyone con- nected with his business, unless he notes the facts of such transaction on the account of sales. Note. — This rule is not intended to relieve the licensee from any legal obligation resting on him to obtain authorization from the shipper before taking' to account goods consigned to him or to obtain the ratification of such a transaction. From November 1, 191", to April 16. 1918, the rule governing all commission mer- chants, brokers, and auctioneers which limited their charges to " * * * that which ordinarily and customarily prevails under normal conditions in the locality in which * * * their business is conducted * * * •> applied to these dealers in perishables. Enle 15. Certificate of value to be furnished to cold-storage warehousemen. — The licensee storing poultry with a cold-storage warehouseman upon which the vrarehousemau either directly or indirectly loans money shall upon request of such warehouseman file with him a certificate stating the market value of the goods stored and shall make no false or misleading .statement in such certificate nor shall he fail to maintain the margin required by the regulations of the Food Administration on loans made by cold-storage warehousemen. (Issued Feb. 7, 1918, as to " commodities 'required to be licensed " : repealed Jan. 8, 1919.) XiX. DISTRIBUTORS OF EGGS. INTERTRADING RESTRICTED. General rule 6 provides as follows: " The licensee, in selling food commodities, shall keep such commodities mov- ing to the consumer in as direct a line as practicable and without unreasonable delay. Resales within the same trade without reasonable justification, espe- cially if tending to result in a higher market price to the retailer or consumer. vnM be dealt with as an unfair practice." The United States Food Administrator recognizes the following classes of dealers in fresh eggs : 1. Original packers and shippers. 2. Commission merchants and whole.?alers. 3. Jobbers and suppliers of hotels and institutions. 4. Retailers. All trading in fresh eggs mu.5t contribute toward moving the eggs in a direct line to the consumer. Sales between dealers in any one of theclasses men- 620 HISTORY OF PRICES DURING THE WAR. tioned above are prohibited except as follows : Sales between wholesalers iu different cities will for the present be permitted where necessary to supply the reasonable requirements of the buyer's business, provided there is an actual shipment of the goods, and provided the movement between cities is in the direc- tion of normal crop movement from producer to consumer. In addition thereto DOt more than two sales of any lot of fresh eggs between dealers in class 2 may be made without obtaining the consent of the local Federal food administrator if s-uch sales are necessary to supply the reasonable requirements of the buyer's business, but more than two sales between dealers in class 2 shall not be made without the written consent of the local Federal food administrator. One sale, and only one, between dealers in the same class other than class 2 may be made without obtaining the consent of the local Federal food administrator if such sale is necessary to supply the reasonable requirements of the buyer's business, but more than one such sale shall not be made without the written consent of the local Federal fot)d administrator. In no case shall a dealer sell fresh eggs to any dealer in a class further re- moved from the consumer than the class in which the seller is included ; for example, a jobber shall not sell to a wholesaler, or a retailer to a wholesaler. No objection will be made to sales of fresh eggs between dealers in the same class that are made at a price that is less than or equal to the initial cost to the seller of the particular commodities sold, nor are such sales to be counted as sales between dealers in the same class. Licensees will be expected to find out whether sales are justifiable by obtain- ing information as to the class in which the seller and the buyer are dealing and the location and class of the licensee from whom the seller purchased. This in- formation should be placed on all confirmations of sales. B. SPECIAL REGULATIONS GOVERNING DISTRIBUTORS OF COLD- STORAGE EGGS. In tlie following rules the different kinds of dealers in cold-storage eggs are delined as follows: (a) An original packer or shipper is a person, firm, corpoiation, or association that assembles and packs the eggs for market or storage. (&) A commission merchant is a person, firm, corporation, or association that solicits for sale or receives for sale and sells food products on a commission basis, or that acts as agent or representative of shippers, packers, and other distributors in the marketing of food products for a fixed package charge or on a percentage basis. (c) A wholesaler is a person, firm, corporation, or association, other than the origi- nal packer or shipper, that sells to jobbers or to suppliers of hotels and institutions. (f/) A jobber is a person, firm, corporation, or association that sells or distributes to retailers. (e) A supplier of hotels and institutions is a person, firm, corporation, or associa- tion that sells to hotels, restaurants, clubs, dining-car or steamship companies, public or private institutions, or to retail dealers requiring specially selected stock and being furnished a service similar to that rendered to hotels and institutions. (/) A retailer is a person, firm, corporation, or association that sells or distributes to consumers. (0) The original storer is the person, firm, corporation, or association that owns eggs when first placed in a cold-storage warehouse. Note. — (]) Where a licensee sells eggs within .SO days from the date of original storage, the buyer may also be considered the original storer to the extent that he may add to the maximum advance over cost allowed in selling as a wholesaler, jobber, etc., any part of G per cent over the first storcr's cost not added by the first storer. In such cases the first storer who sells within 30 days must inform the buyer what portion of 6 per cent over his cost he has added. (2 1 Where a definite lot of eggs is sold before it is placed in a cold-storage ware- house, and if title to this lot actually passes to the purchaser, or if title is retained by the seller merely as security for the purchase price, and thereafter the eggs are put in the warehouse, the purchaser will be considered the original storer even though the eggs are carried and insured in the seller's name. Wherever in the following rules dealers in cold-storage eggs are limited in the ad- vance over cost at which such eggs may be sold, " cost " shall be construed to include the purchase price, or in the case of the original packer or shipper- the cost into storage, plus storage charges, interest on the goods in storage, and insurance on goods in storage incurred by the seller up to the time of sale, but not to include any other expenses, except as hereinafter provided in the case of candled eggs. GOVERNMENT REGULATIONS EELATING TO PRICES. 621 In selling eggs candled by tlie licensee the actual net candling loss may be included in tbe cost, but the expense of labor and materials in candling and all repacking ex- penses shall not he included. In determining cost licensees may average the cost of all lots of cold-storage eggs of the same grade which were originally stored in the same month and which have not already been contracted to be sold, and may take such average cost as the cost of any particular lot. The licensee must keep a record of the manner in which such average h^d been arrived at and shall take as the cost of all stock remaining on hand from, lats already averaged the average cost previously arrived at. If the cost of any cold-storage eggs is averaged, the cost of all cold-storage eggs must be averaged. Note. — (l) The maxim.um advances over cost specified in the following rules are jjot to be regarded as normal or so recognized by the Food Administration. They are intended only to prevent speculation and are purposely made wide to cover casea where the methods of doing business are more expensive, to the extent that such methods are justified. These maximum advances must not be exceeded in selling any specified lot of eggs, and the average advance over cost charged by any dealer must not be more than sufficient to return to him a reasonable profit on his investment In accordance with general rule 5, which is as follows : " The licensee shall not import, manufacture, store, distribute, sell, or otherwise handle any food commodities on an unjust, exorbitant, unreasonable, discriminatory, or unfair commission, profit, or storage charge."' (2) The special rules regulating the profits of dealers in cold-storage eggs do not apply to eggs that are placed in a cold-.storage warehouse, but which are removed from the cold-storage warehouse for distribution for consumption within 30' days after the date of the original entry of such eggs into the cold-storage warehouse (3) Profits on different sales can not be averaged. The licensee is limited on each transaction to the maximum profit permitted by the rules and regulations (4) Where a dealer in the sale of cold-storage eggs adds less than the maximum advance over cost permitted by the rules, the buyer is not because of this fact per- mitted to add to the maximum advance over cost allowed to him any part of the maximum, advance allowed to the seller which the seller did not add. Rule 1. Ptirchase from dealer charging unreasonable margin prohibited. — No licensee shall knowingly purchase cold-storage eggs from a dealer who sells at a greater advance over cost than the maximum specified in the following rules (Issued Mar. 2, 1918; repealed Feb. 14, 1919.) Rule 2. Maximum margins for original packer or shipper. — The original packer or shipper storing in a cold-storage warehouse shall not sell cold-storage eggs to wholesalers at an advance of more than 6 per cent over cost. In case cold- storage eggs are stored in the name of a commission merchant, the original storer shall be deemed to be the consignor for whom the commission merchant acts as agent. An additional advance not exceeding 4 per cent of cost may be charged by the original packer or shipper in selling eggs at mark or 7 per cent over cost in selling eggs candled by him to jobbers or suppliers of hotels and institutions. An additional advance may be charged in selUng to retailers not exceeding 5 per cent of cost if sold at mark (i. e., in original packages), and not exceeding 10 per cent of cost in selling eggs candled by him. An additional advance not exceeding 12 per cent of cost may be charged if the original packer performs the functions of a supplier of hotels and institutions, as heretofore defined. (Issued Mar. 2, 1918; margins slightly changed Julv 26, 1918, and Nov. 11, 1918 ; repealed Feb. 14, 1919. ) Rule 3. Maximum commissions. — A commission merchant shall not receive a commission of more than 4 per cent on cold-storage eggs consigned to him. The selling price of cold-storage eggs sold through a commission merchant shall not exceed the maximum advance over cost permitted to the consignor by these rules, which advance shall include the commission for the sale. A commission merchant who takes to account consigned cold-storage eggs shall not receive any other profit beyond the amount of the commission before specified. A com- mission merchant shall require from consignors a statement of cost of goods and maximum selling price allowable under these rules. (Issued Mar. 2, 1918: repealed Feb. 14, 1919.) Rule 4. Maximum margin for wholesaler. — A wholesaler shall not sell cold- storage eggs at mark at an advance of more than 4 per cent over cost or 7 per cent over cost if he candles the eggs. If a wholesaler also sells as a jobber, he shall not sell eggs at mark at an advance of more than 5 per cent over cost or eggs candled by him at more than 10 per cent over cost as provided for jobbers in rules 5 and 6. The above maximum advances may be increased by not to exceed 6 per cent of cost, in cases where the wholesaler is also the original storer in a cold-storage warehouse. (Issued Blar. 2, 1918; margins slightly changed Nov. 11, 1913; repealed Feb. 14, 1919.) Rule 5. Maximum margin for jobber of cold-storage eggs at mark. — A jobber shall not sell cold-storage eggs at mark (i. e., in original packages) at an 622 HISTORY OF PRICES DURING THE WAR, advance of more than 5 per cent over cost. (Issued Mar. 2, 1918; repealed Feb. 14, 1919.) Rule 6. Maximum margin for jobber of candled eggs. — A jobber shall not sell eggs candled by him at an advance ot more than 10 per cent over cost. The maximum advance prescribed in rules 5 and 6 may be increased by not to exceed G per cent of cost in cases where the jobber is also the original storer in a cold- storage warehouse. (Issued jNIai'. 2, 1918; I'epealed Feb. 14, 1919.) Rule 7. Maximum margin fcr supplier of hotels and institutions. — A supplier of hotels and institutions shall not sell eggs candled and selected by him at more than 12 per cent over cost. This maximum advance may be increased by not to exceed 6 per cent of cost in cases where the supplier of hotels and insti- tutions is also the original storer in a cold-storage warehouse. (Issued Mar. 2, 1918 ; repealed Feb. 14, 1919. ) Rule 8. Maximum margin for retailer storing eggs during 1918. — A retailer who is the original stort^r of eggs during 1918 shall not sell such eggs candled and selected by him at an advance of more than 21 per cent over cost. (Issued Mar. 2, 1918; margins changed Oct. 22, 1918; rei3ealed Feb. 14, 1919.) Note. — Jlaximiim mnrjrins for retailers on all sales of eggs other than those abovo specified will be iinnoiinceci separately. Rule 9, Direct line of distribution defined. — A sale by any dealer in cold- storage eggs in any of the classes indicated below to a dealer in any succeeduig class shall be considered to be in the direct line of distribution: Class 1. Original packers and shippers. Class 2. Commission merchants — Wholesalers. Class 3. .Jobbers — Suppliers of hotels and institutions. Class 4. Retailers — Hotels and institutions. (Issued »Iar. 2, 1918; repealed Felx 14, 1919.) Rule 10. Intertrading restricted. — All trading in cold-storage eggs shall serve to move the cold-storage eggs in the direct line of distribution to the consumer and nothing contained in this or the preceding rule shall authorize any licensee to use any more indirect method of distribution than he has been accustomed to use in the past in the distribution of eggs. One sale of any lot of cold-storage eggs between dealers in the same class may be made where necessary to supply the reasonable requirements of the biiyer's business. Such sales shall be made at an advance of not more than 2 per cent over cost, except when sold by a wholesaler or jobber who is also the original storer who shall sell at not more than 6 per cent over cost. Where a dealer buys cold-storage eggs from another dealer in the same class other than the original storer he must sell the eggs so bought at not more than the maximum advances over cost specified in the above rules minus 2 per cent. A licensee who does business both as a wholesaler and jobber may buy as a jobber with the intention of reselling to a retailer or of making the one permissible resale to other jobbers, or to suppliers of hotels or institutions. Except for such sales no licensee shall sell to another in the same or any pre- ceding class of distribiition without the written consent of the local Federal food administrator, which will be given only in extraordinary circumstances. Where such consent is given the dealer shall not sell at an advance of more than 10 cents per case over cost, nor in the case of a commission merchant selling to a Avholesaler shall the commission amoimt to more than 10 cents per case : Pro- rided, however. That nothing in this rule shall prevent sales for immediate delivery from one city to another for actual distribution to relieve exceptional local shortage, but a report of any such sale must be promptly made to the local Federal food administrator, with the reasons therefor. Such sales shall be inade at a price not to exceed 4 per cent over cost. ( Issued Mar. 2, 1918 ; advance at which dealers may sell changed July 26, 1918, and Oct. 31, 1918; repealed Feb. 14, 1919.) Note. — Licensees will be expected to find out whether sales are justifiable by obtain- ma information as to the class in which the seller and the buyer are dealing and the location and class of the licensee from whom the seller purchased. This information should be placed on all conflrmations of sales. Rule 11. Brokerage to be included in margins. — If brokers act as agents in any sale of cold-storage eggs under these rules brokerage paid shall not be added to the selling price of the goods. (Issued Mar. 2, 1918 ; repealed Feb. 14, 1919.) Rule 16. Certificate of value to be furnished to cold-storage warehousemen. — The licensee storing eggs with a cold-storage warehouseman upon which the warehouseman either directly or indirectly loans money shall upon request of GOVERNMENT REGULATIONS RELATING TO PRICES. 623 such warehouseman file with him a certificate stating the market value of the goods stored and shall make no false or misleading statement in such certificate nor shall he fail to maintain the margin required by the regulations of the Food Administration on loans made by cold-storage warehousemen. (Issued Feb. 7, 1918, as to " commodities required to be licensed "; repealed Feb. M, 1919.) C. ADDITIONAL REGULATIONS GOVERNING COMMISSION MER- CHANTS, BROKERS, AND AUCTIONEERS DEALING IN EGGS. Rule 1. Commission or brokerage not to be iinreasonable or discriminatory. — The licensee shall not charge, directly or indirectly, an unjust, exorbitant, unreasonable, discriminating, or unfair commission or brokerage on the sale of eggs. (Issued July 10, 1918; repealed Feb. 14, 1919.) _ Note. — The Food Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Administration, before such increased rates are put into effect. The rates to be charged by a commission merchant are more specifically treated under B, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered. — The licensee shall remit promptly following the sale of eggs receiveil on consignment for sale or distribution and shall render to the consignor an account showing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to "food commodities " ; repealed Feb. 14, 1919.) Note. — Where a commission merchant receives a consignment of poultry or eggs and guarantees to the consignor a definite selling price, he must show on the' account sales the actual price at which the goods are sold, together with services actually performed and expenses actually incurred, and as a separate item must show any sum paid to the consignor by reason of the commission merchant's contract of guarantv. Failure to do this will be considered a violation of the above rule governing comniission merchants and also a misstatement of the price at which commodities are being sold in violation of general rule 19. Rule 3. Agent not to buy from principal unless noted on account of sales. — The licensee shall not, directly or indirectly, sell consigned eggs or eggs with the sale of which on commission he is intrusted, to himself or to anvone connected mth his business, unless he notes the facts of such transaction on the account of sales. (Issued Nov. 1, 1917, as to "food commodities"; repealed Feb. 14 1919.) • Note. — -This rule is not intended to relieve the licensee from any legal obligation resting on him to obtain cauthorization from thg shipper before taking to account goods consigned to him or to obtain the ratification of such a transaction. rrom November 1, 1917, to April 16, 1918, the rule governing all commission mer- cnants, brokers, and auctioneers which limited their charges to " * * * that which ordinarily and customarily prevails under normal conditions in the locality in which tbeir business is conducted * * * " applied to these dealers in perishables. D. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS OF EGGS. Rule 1. Fresh or cold-storage eggs must not be sold at retail at more than reasonable advance over cost. — The licensee shall not sell fresh or cold-storage eggs at retail at more than a reasonable advance over cost Avithout regard to the market or replacement value at the time of the sale. Cost shall include purchase price and transportation charges, and where the retailer actually candles and grades eggs he may include in the cost the actual loss from such candling and grading. In the case of cold-storage eggs, cost shall include the follov/ing addi- tional items : 1. Storage charges actually incurred. 2. Insurance charges actually incurred. 3. Interest on money invested at tb.e current rate while eggs are in storage. The licensee may average the cost of all lots of eggs of the same grade (and m the case of cold-storage eggs, all eggs of the same grade which were originally stored m the same month) in his possession at the point from which the sale is made which have not already been contracted to be sold, and may take such average cost as the cost of any particular lor. When new lots are added and a new average calculated, the licensee shall include in the new averaging all stock remaining on hand from lots already averaged at the average cost previously determined. If the cost of any eggs is averaged the cost of all eggs must be 624 HISTORY OF PRICES DURING THE WAR. averaged. When c^sts are avera,2:e(l the licensee nuist keep a record of the manner in Miiich such average has been arrived at. (Issued Oct. 22, 1918; re- pealed Feb. 14, 1919.) Note. — The Retail Section of the Distribution of Perishables of the United States Food Administration has determined that any advance over cost in excess of 7 cents to 8 cents a dozen is unreasonable and will be considered evidence of violation of the above rule. The 7 cents per dozen represents the maximum for stores conducting the cash and carry or no service plan, while the 3 cents per dozen is the maximum margin for the extra service stores extending credit and delivery. Retailer may have benefit of fractional cost on any transaction. — Retailers whose deliv- ered terminal costs figure in fractions may have the benefit of such fractional costs. For example, if egjis cost at terminal delivery 465 cents per dozen, the selling price may be figured as follows : CASH AND CARRY STORES. Amotmt of sale. Cost. Margin. Total. Fraction ^^^ ^dd^'ili be considered justifiable when necessary to supply the reasonable le- .luirements of the buyer's business, without the special consent of the local Federi:! Food Administrator, provided, however, tbat a second sale of the same goods between dealers in class 2 in the same city will be permitted without the consent of the local Federal Food Administrator if this sale is made at an advance over cost of not more than one-half of the margins indicated above, and provided that the seller notifies the buyer that this is a second sale. C. In addition to such resales as are otherwise indicated as justifiable, sales between dealers in class 2 in different cities will be considered justifiable, provided, that an actual delivery of the butter follows the sale, and that the shipment is for the purpose of obtaining supplies from primary markets for reasonable requirements of the purchaser's business ; provided further, that not more than three such sales of any lot of butter between dealers in class 2 shall be made without special permission ; and the third sale shall be made at an advance over cost of not more than one-half of the above margins. D. Any resale between dealers without any advance over cost will be considered as justifiable in addition lo such other resales as are permitted. (Rule Issued June 19, 1918, governed resales of cold-storage butter; changed July 19, 1918, to include all butter, and Jan. 6, 1919, to cold-storage butter; re- pealed Jan. 28, 1919.)- 628 HISTORY OF PRICES DURING THE WAR. Eule 5 (amended Dec. 31, to be effective Jan. 6, 1919). The licensee making second sale in same class to notify buyer. — The licensee in class 2 as defined above who purchases cold-storage butter from another wholesaler or jobber in Kuch class, or from a manufacturer performing the services, or a wholesaler or jobber, and who resells to another dealer in class 2, shall notify such dealer of the prior sales of such butter within that class of which he has knowledge. (Issued June 19, 1918, as to cold-storage butter; changed July 19, 1918, to all butter ; changed Jan. G, 1919, to cold-storage butter ; repealed Jan. 28, 1919. ) Note — This information should be disclosed at the time of the transaction and should be placed by the seller upon the invoice in order that there shall he a permanent record. Rule 10. Certificate of value to be furnished to cold-storage warehousemen. — The licensee storing butter with a cold-storage warehouseman upon which the warehouseman either directly or indirectly loans money shall, upon request of such warehouseman, file with him a certificate stating the market value of the goods stored and shall make no false or misleading statement in such certificate nor shall he fail to maintain the margin required by the regulations of the Food Administration on loans made by cold-storage warehousemen. (Issued Feb. 7, 1918, as to " commodities required to be licensed " ; repealed Jan. 28, 1919.) B. ADDITIONAL REGULATIONS GOVERNING BROKERS, COMMISSION MERCHANTS, AND AUCTIONEERS DEALING EITHER IN FRESH OR COLD-STORAGE BUTTER. Rule 1. Commission or brokerage not to be unreasonable or discriminatory. — The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- reasonable, discriminatory, or unfair commission or brokerage on the sale of butter. (Dec. 23, 1918 ; repealed Jan. 6, 1919.) Note. — The Pood Administration in enforcing this rule will insist that any proposed increase in rates be submitted to the local Federal food administrator, and that the reason for any increased rate over the prewar normal be justified to him, subject to the general supervision of the United States Food Alministration before such increased rates are put into effect. The rates to be charged by a commission merchant are more specifically treated under A, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered. — The licensee shall remit promptly following the sale of butter received on consign- ment for sale or distribution, and shall render to the consignor an account show- ing the true sales and with charges only for services actually performed and expenses actually incurred by the licensee. (Issued Nov. 1, 1917, as to "food commodities"; repealed Jan. 6, 1919.) Note. — Where a commission merchant receives a consignment of butter and guarantees to the consignor a definite selling price, he must show on the account sales the actual price at which the goods are sold, together with services actually performed and ex- penses actually incurred, and as a separate item must show any sum paid to the con- signor by reason of the commission merchant's contract ixf guaranty. Failure to do this will be considered a violation of the above rule governing commission merchants and also a misstatement of the price at which commodities are being sold in violation of general rule 19. From November 1, 1917, to April 16, 1918, the rule governing all cOhimission mer- chants, brokers, and auctioneers which limited their charges to " * * * that which ordinarily and customarily prevails under normal conditions in the locality in which * * * their business is conducted * * * " applied to these dealers in perishables. C. ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN BUTTER. The attention of all retail dealers in butter is called to Rule A-1 of the above regulations, which is headed : " Rule 1. Butter to be sold at a reasonable advance over cost.'' The United States Food Administration will regard any advance in excess of 6 to 7 cents per pound over cost (as defined in. rule 1) as unreasonable and as evidence of violation of rule 1. The 6 cents per pound represents the maximum margin for stores conducted on the cash and carry or no-service pjan, while 7 cents per pound is the maximum margin for the extra-service stores extending credit and delivery. Retailer may have 'benefit of fractional cost on any tranaaction. — Retailers whose delivered terminal costs figure in fractions may have the benefit of such fractional costs on any transaction. For example, if butter costs at terminal delivery 46^ cents per pound, the selling price may be figured as follows : GOVERNMENT REGULATIONS RELATING TO PRICES. CASH AND CARRY STORES. 629 Amount of sale. Cost. Margin. Total. Fraction added. Maximum selling price. 1 pound . 2 pounds 3 pounds Cents. Cents. 92* 138| Cents. 521 1561 Cents. $0.53 1.05 1.57 The maximum selling price for tlie extra service or credit and delivery stores would be 1 cent per pound higher. In determining margins at 6 cents and 7 cents a pound on butter with the fractional costs in the dealer's favor, the United States Pood Administration has given due consideration to the rising costs of operation which must be met by the dealer. In addition to the above margins the retailer who carries butter in cold storage more than two full calendar months may add not more than 1 cent a pound and an additional one-fourth cent a pound a month for each calendar month thereafter during which he carries the butter in cold storage. The total amount for carrying butter in cold storage so added, however, shall not exceed 2 cents per pound. The food administration will consider any sale of butter by a retail dealer at a greater margin than herein outlined as evidence subjecting the dealer to a revocation of his license or such other penalty as the law provides. XXI. CHEESE. A. SPECIAL REGI?LATIONS GOVERNING MANUFACTURERS AND DIS- TRIBUTORS OF ALL KINDS OP CHEESE. Rule 1. Cheese to be sold at reasonable advance over cost. — The licensee deal- ing in cheese shall sell cheese without regard to market or replacement value at not more than a reasonable advance over the cost of the particular cheese sold, provided that the licensee may average by weight the cost of all cheese of the same kind, shape, and grade which have not already been contracted to be sold. The licensee shall keep a record of the manner in which such average has been determined. When new lots are added and a new average calculated, the licensee shall include in the new averaging all stock remaining on hand of lots already averaged at the average cost of such lots previously determined. If the cost of any cheese is averaged, the cost of all cheese must be averaged. (Issued June 32, 1918; margins on different grades of cheese changed July 12, 1918, and Aug. 2, 1918; repealed Jan. 6, 1919.) Cost for the purpose of this rule shall include: 1. Purchase price. 2. Transportation charges, if any (not including drayage). 3. Storage charges actually incurred, provided that the cheese has been in storage more than 60 days. 4. Insurance charges actually incurred, provided that the cheese has been iu storage more than 60 days. 5. Interest on money invested at the current rate, provided that the cheese has been in storage more than 60 days. 6. Actual cost of paraffining, if any, not to exceed one-fourth cent per pound. 7. Actual cost of reboxing or dividing the type of American or Cheddar cheese, known as Twins or double or triple Daisies, into smaller units, but in no case exceeding one-half cent per pound. Cost shall not include any allowance for shrinkage in weight, commissions, expenses of breaking packages and repacking, or any other expenses than those herein listed. ' Note. — In any case where a dealer owns his own storage warehouse in which cheese is stored more than 60 days the dealer may include in his calculation of cost a charge for warehousing equal to that ordinarily paid to a public warehouse for similar services. Where cheese is carried in a private warehouse without refrigeration, refrigeration rates must not be charged. The dealer must calculate the actual cost of paraflBning and will not be permitted arbi- trarily to take one-fourth cent per pound as this cost. In cases where the cheese is reweighed after paraffining the increased weight must be taken into consideration in determining the cost. 630 HISTORY OF PEICES DURING THE WAR. Reports to he furnished on demand. — The licensee must be prepared to furnish to the United States Food Administration or to the Federal food adiuinistrator of his State upon demand a full report on costs and margins charged or on the niaximuiu prices charged in any given period for any kind of cheese or any other information which may be considered necessary for the purpose of this rule. The maximum margins indicated by the Food Administration are not to be regarded as fair normal margins ox as so recognized by the Food Administra- tion. They tii-e intended only to prevent speculation and are purposely made wide enough to cover cases where the methods of doing business are more expensive, to the extent that such methods are justified. These maximum advances must not be exceeded in selling any lot of cheese, and the prices charged by any dealer must not in any case be more than sufficient to return to him a reas.inable profit on his investment. f^ales from branch houses. — Where cheese is transferred by any dealer to a branch house of such dealer in the same or another city such transfer shall not be considered a sale governed by the maximum margins indicated for sales. No advance over cost for such transfer will be allowed except where the main house actually handles the cheese, in which case advances over cost for transfer not greater than tliose indicated below will be permitted, provided the transaction is in as direct a line of distribution as practicable; and the branch house may figure the transfer price (see below) as its purchase price and may sell cheese at an advance over cost on such basis not greater than the luaximum margins indicated below. If the branch house transfers the cheese to another branch house of the same dealer, the total margin added by both branch houses must not be greater than the maximum margins indicated below. CoUusive sales. — Any sale by a dealer to another dealer at a price higher than the price which the second dealer would have to pay in buying on the open market will be considered evidence of a collusive sale intended to defeat the purpose of rule 1 by increasing the purchaser's cost and the price which he may charge upon a rising market. The price on the open market does not necessarily mean the price established by a dairy boai'd, especially when the dairy board does uot hold its meetings daily. Cost in the ease of imrehases of ungraded cheese. — The cost ox any grade of cheese must be figured on the purchase price of that grade. T\niere a dealer purchases ungraded cheese at one price per pound regardless of the grades contained in the lot he must not figure the purchase price per pound of any part of this cheese higher than the price per poimd actually paid for the entire lot. The growing practice due to present market conditions of buying cheese, particularly round Swiss, from the factory before it is sufficiently matured to permit "of the detenuination of the quality of the product increases ma- terially the speculative risk assumed by the buyer. It also results in lowering the standard of quality. The Food Administration is strongly of the opinion that this tendency should be stopped as uneconomical and believes that the installation of grades will do much to stabilize values in this protluct. Where dealers sell on grade they can reduce their speculative risk if they do not purchase the cheese until its quality can be reasonably determined. The above requirement as to figuring costs is intended to accomplish this result. MAXIMUM MARGINS. The Foofl Administration will consider the sale of any dieese of any of the follow- ing kinds by any dealer other than the manufacturer or the retailer at an advance over cost as hereinbefore defined of more than tlie following margins as prima facie CTidenco of a riolation of the food control act and the above rule. Licensees will be expected to sell cheese in usual quantities to customers and where it appears that sales are being- made in smaller quantities than customarily for the purpose of charging larger margins than would he proper on larger sales such larger margins will not be considered justifiable. Larger margins are only proper for sales of smaller quantities where selling in small quantities is the usual coarse of business involving a greater expense in operation. ■SMiere a licensee contracts to sell a quantity of cheese to be delivered in smaller quantities at future dates the dealer must be guided by the maximum margins indi- cated for sales of the quantity contracted to be sold and not for sales of the amount of any delivery. GOVERNMENT REGULATIONS RELATING TO PRICES. 631 AMEEICAN OK ■ CHEDDAR CHEESE. {a) Three-fourths cent per pound on car-lot sales. (6) One and one- fourth cents per pound on sales less than a car lot but amounting to 7,000 pounds or more. (c) One and three-fourths cents per pound on sales less than 7,000 pounds but amounting to 4,000 pounds or more. (d) Two and one-half cents per pound on sales less than 4,000 pounds but amount- ing to 1,000 pounds or more. (e) Three cents per pound on sales less than 1,000 pounds but amounting to 100 pounds or more. (/) Three and one-half cents per pound on sales less than 100 pounds. In addition to the selling margin, which normally should be considerably below the above maximum margins, a further margin may be added where American or Cheddar cheese is held in a warehouse for more than 30 days, of not to exceed one- fourth cent per pound per month for each and every month after the 30-day period during which the cheese is held in the warehouse by any licensee, but in no case shall the amount so added exceed 2 cents per pound and no further amount shall be added by any licensee after nine months from the date of original storage. Transfer margins. — The margins for transfer of American or Cheddar cheese to a branch house where the main house actually handles the cheese shall not exceed one- half cent per pound regardless of the quantity. HOUND OR TUB SWISS CHEESE- (a) One and three-fourths cents per pound on car-lot sales. {!)) Tv«-o and one-half cents per pound on sales less than a car lot but amounting to 6,000 pounds or more. (c) TTiree and one-half cents per pound on sales less than 6,000 pounds but amount- ing to 3,000 pounds or more. (d) Four cents per pound on sales less than '3,000 pounds but amounting to one tub or more. (e) Five cents per 'pound on sales less than one tub but amounting to 120 pounds or more. (f) Eight cents per pound on sales less than 120 pounds. In addition to the selling margin, which should normally be considerably below the above maximum margin, a further margin may be added where round or tub Swiss cheese is held in a warehouse for more than 30 days, not to exceed one-fourth cent per pound per month for eachi and every month after the 3.0-day period during which the cheese is held in the warehouse by the licensee, but in no case shall the amount so added exceed 2 cents per pound and no further amount' shall be added hy any licensee after nine months from date of original storage. Transfer margins. — The margins for transfer of round or tub Swiss cheese to a branch house where the main house actually handles the cheese shall not exceed 1 cent per pound regardless of quantity. BLOCK SWISS CHEESE. {a] One cent per pound on car-lot sales. (6) One and three-eighths cents per pound on sales less than a ear lot but amount- ing to 8,000 pounds or more. (c) Two cents per pound on sales less than 8,000 pounds but amounting to 1,500 pounds or more. (d) Two and one-half cents per pound on sales less than 1,500 pounds but amount- ing to 750 pounds or more. (e) Three cents per pound on sales less than 750 pounds but amounting to 150 pounds or more. (f) Four and one-half cents per pound on sales less than 150 pounds. In addition to the selling margin, which should normally be considerably below the above maximum margins, a further margin may be added where block Swiss cheese is held in a warehouse for more than 30 days, not to exceed one-fourth cent per pound per month for each and every month after thel 30-day period during which the cheese is held In the warehouse by any licensee, but in no case shall the amount so added exceed 2 cents per pound and no further amount shall be added by any licensee after nine months from the date of original storage. Transfer margins. — The margins for transfer of block Swiss cheese to a branch house where the main house actually handles the cheese shall not exceed three-fourths cent per pound regardless of quantity. 632 HISTORY OF PRICES DURING THE WAR. BRICK, LIMBURGEK, AND MONSTER CHEESE. (a) One and one- fourth cents per pound on car-lot sales. (6) One and five-eigbtlis cents per pound on sales less than a car lot, but amounting to 6,000 pounds or more. (c) Two and one-half cents per pound on sales less than 0,000 pounds, but amounting to 2,400 pounds or more. (d) Three cents per pound on sales less than 2,400 pounds, but amounting to 600 pounds or more. (e) Throe and one-half cents per pound on sales less than 600 pounds, but amounting to 120 pounds or more. (/) Five cents per pound on sales less than 120 pounds. In addition to the selling margin which should normally be considerably below the above maximum margins, a further margin may be added where brick, Limburger, or Munster cheese is held in a warehouse for more than 30 days, not to exceed three- eighths cent per pound for the first month after the 30-day period and one-fourth cent per pound per month for each of the following months thereafter during which the cheese is held in the warehouse by any licensee ; but in no case shall the amount so added exceed 11 cents per pound and no further amount shall be added by any licensee after six months from the date of original storage. Transfer margins. — The margins for transfer of brick, Limburger, or Munster cheese to a branch house where the main house actually handles the cheese shall not exceed three-fourths cent per pound, regardless of quantity. Rule 2. Manufacturers who perform services of dealer or assembler. — Any manufacturer who acts also as aii assembler, wholesaler, or jobber shall be .subject in sucli sales to the rules and margins governing assemblers, whole- salers, and jobbers, provided that instead of the purchase price as an assembler, wholesaler, or jobber he shall either — (1) Compute the cost of raw materials and the expense of manufacture; or (2) In the case of American or Cheddar cheese, take the price during the 10 days after the cheese is manufactured on the shape and grade of cheese in the established primary market on the basis of which the cheese is usually sold by manufacturei'S. (Issued June 12, 1918; repealed Jan. 6, 1919.) Rule 3. Commissions not to be unreasonable. — No licensee shall pay, and no commission merchant shall receive, an unreasonable or exorbitant commission in connection with the sales of cheese. The licensee shall inform any commission merchant selling cheese for him of the maximum permitted price at which such cheese may be sold. (Rule issued June 12, 1918, provided commission of one-half cent per pound. Changed Aug. 2; 1918, to present form. Repealed Jan. 6, 1919.) Note. — " Ten days after the cheese is manufactured " means 10 days after the cheese is removed from the hoops and placed in the curing room. Under rule 1 the selling price may not be increased by reason of the payment of a commission. Commissions higher than those indicated below, will be considered prima facie unreasonable and exorbitant. («) Maiviimim commissions. — In the case of American or Cheddar cheese one-half cent per pound on car lots and 1 cent per pound on less than car lots. (6) In the case of round or tub Swiss cheese IJ cents per pound on car lots and 1^ cents per pound on less than car lots. (e) In the case of block Swiss cheese 1 cent per pound on car lots and IJ cents per pound on less than car lots. (d) In the case of brick, Limburger, and Munster cheese 1 cent per pound on car lots and IJ cents per pound on less than car lots. It should be understood that the above are maximum commissions which may at times be in excess of reasonable commissions. Rule 4. Intertrading restricted. — The licensee in selling cheese shall keep it moving to the consumer in as direct a line as practicable and without unreason- able delay. The direct line of distribution of cheese is from a licensee in any of the following classes to a licensee in any succeeding class. (Issued June 12, 1918 ; repealed Jan. 6, 1919. ) Class 1. Manufacturers. Class 2. Assemblers, wholesalers, and jobbers, including all licensees who receive cheese from manufacturers and grade and assemble cheese for sale, or who distribute it in any way except at retail, and all manufacturers who per- form the service customarily performed by an assembler, wholesaler, or jobber. Class 3. Retailers, hotels, restaurants, and institutions. Note. — Any transactions that savor of dealing in which a profit accrues to the dealer without corresponding service are clear violations of the rule and will subject the offender to revocation of his license and to such other penalty as the law provides. GOYEEJTMENT KEGULATIONS RELATING TO PRICES. 633 The following kinds of sales between dealers will be considered justifiable, but sales other than those described between dealers in the same class will be considered as prima facie evidence of violation of the rule : -,.,,.,,, A. A sale by any dealer in cheese to a dealer in any succeeding clas^ wiU be con- sidered as in the direct line of distribution. . « - ^v. B One sale and only one sale of the same cheese between dealers in class 2 m the same city will be considered iustifiable when necessary to supply the reasonable require- ments of the buyer's business, without the special consent of the local Federal food administrator, provided, however, that a second sale of the same cheese between dealers in class 2 in the same city will be permitted without the consent of the local Federal food administrator if this sale is made at an advance over cost of not more than one- half of the margin indicated above, and provided that the seller notifies the huyer that "this Is 9 sGCond S3.16 C In addition to such sales as are otherwise indicated as justifiable, sales between dealers in class 2 in different cities will be considered justifiable, provided that an actual delivery of the cheese follows the sale, and that the shipment is for the purpose of obtaining supplies from primary markets for the reasonable requirements of the pur- chaser's business ; provided further, that not more than three such sales ai'e made of any inf nf phpp«p without SDecial permission. .,, , .j j D \nvsal^ between dealers without any advance over cost will be considered as justifiable in addition to such other sales as are permitted. Rule 5. The licensee making a second sale in the same class to notify hnyer.— Tlie licensee in class 2 as cletined in rule 4 who purchases cheese Irom another assembler or dealer in such class or from a manufacturer performing the serv- ices of an assembler or dealer and 'who sells to another dealer m class 2, shall notify such dealer of the prior sale and of all other prior sales of such cheese Avithln that class of which he has knowledge. (Issued June 12, 1918; repealed Jan. 6, 1919.) Note__T1j5s information should he disclosed at the time of the transaction and should he placed by the seller upon the invoice in order that there shall he a permanent record. B ADDITIONAL REGULATIONS GOVERNING COMMISSION MER- ■ CHANTS, BROKERS, AND AUCTIONEERS DEALING IN CHEESE. Rule 1. Commission or brokerage not to be unreasonable or discriminatory.— The licensee shall not charge, directly or indirectly, an unjust, exorbitant, un- reasonable, discriminatory, or unfair commission or brokerage on the sale of cheese. (Issued Dec. 9, 1918; repealed Jan. 6, 1919.) Note.— The Food Administration in enforcing this rule wijl insist that any proposed increase in rates be submitted to the local Federal food administrator and that the •eason for any increased rate over the prewar normal he .justified to him, _ subject to the llneral supervision of the United States Food Administration, hefore such increased rates ^'''The*ri°tl*^ to^^he charged by a commission merchant are more specifically treated under A, rule 3, supra. Rule 2. Prompt remittance and proper account sales to be rendered.— The li^-ensee shall remit promptly folloAYin.e; the sale of cheese received on consign- ment for sale or distribution, and shall render to the consignor an account showing the true sales and with charges only for services actually performed aBd expenses actually incurred by the licensee. (Issued Nov. 1, 191 <, as to "food commodities"; repealed Jan. 6. 1919.) ^ j> ^ mu Rule 3. Agent not to buy from principal unless noted on account of sales. — ihe licensee shall not, directly or indirectly, sell consigned cheese, or cheese with the sale of which on commission he is intrusted, to himself or to any one connected with his business unless he notes the facts of such transaction on the account of sales.. (Issued Nov. 1 1917, as to " food commodities ' ; repealed Jan. 6, 1919.) From November 1, 1917, to April 16,. 1918 the rule governing all commission mer- chants, brokers,^and auctioneers which limited their chaises to **,*..}'^?^ ^^^? ordinarily and customarily prevails under normal conditions in the locality in which orainarny aui^ ^"^^gV^^gg i/ conducted * * « " applied to these dealers m perishables. C ADDITIONAL SPECIAL REGULATIONS GOVERNING RETAILERS IN CHEESE. The attention of all retail dealers in cheese is called to A, Rule 1 of the above regulations, headed : CHEESE TO BE SOLD. AT KEA SON ABLE ADVANCE OVEE COST. Under the above rule the retail section of the distribution of perishables of the United States Food Administration will consider the sale of American or Cheddar cheese at an advance in excess of 7 or 8 cents per pound over cost (as 634 HISTORY OF PRICES DURING THE WAR. defined in rule 1) as uureasonable and as evidence of violation of rule 1. The 7 cents per pound represents the maxinuim margin for stores conducted on the casli and carry or uo service plan, while 8 cents per pound is the maximum for the extra service stores extending credit and delivery. Dealers whose delivered store-door cost flgures in fractions may have the benefit of such fractional cost. CASH AND CARRY STORES. Amount of s are prescribed above. Futhermore, the Food Administration will consider an annual net earning bv any retail dealer of feeding stuffs of more than 6 per cent upon the total gross sales "if his gross sales of feeding stuffs amount to $100,000 or more per annum to be prima facie evidence of a violation of the rule which prohibits the taking of unreasonable profits This 6 per cent vrill be calculated on the sales of all feeding stuffs, including those specially listed above and also wheat mill feeds. 3. FUELS. The basis for all of the formal regulations over fuel prices during the war lay in section 25 (commonly known as the Pomerene amendment) of the fcJod-and- fuel control act which was made law on August 10, 1917/ An informal control 1 There follows in full the section of the food-and-fuel control act of August 10, 1917, which pertains to control over fuel prices : SBa 25. That the President of the United States shall be, and he is herehy, authorized and empowered, whenever and wherever in his judgment necessary for the efficient prose- cution of the war to fix the price of coal and coke wherever and whenever sold, either by producer or dealer, to establish rules for the regulation of and to regulate the method of production, sale, shipment, distribution, apportionment, or storage thereof among deal- ers and consumers, domestic or foreign ; said authority and power may be exercised by him j in each case thi-ough the agency of the Federal Trade Commission during the war or . for such part of said time as in his judgment may be necessary. . That if, in the opinion of the President, any &uch producer or dealer fails or neglects to conform to such prices or regulations, or to conduct his business efficiently under the legulations and control of the President as afoi'esaid, or conducts it in a: manner preju- dicial to the public interest, then the President is hereby authorized and empowered in evei-y such case to requisition and take over the plant, business, and all appurtenances thereof belonging to such producer or dealer as a going coucern and to operate or cause the same to be operated in such manner and through such agency as he may direct during the period of the war or for such part of said time as in his judgment may be necessary. That any producer or dealer whose plant, business, and appurtenances shall have been requisitioned or taken over by the President shall be paid a just compensation for the use thereof during the period that the same may be requisitioned or taken over as afore- said, which compensation the President shall fix or cause to be fixed by the Federal Trade Commission. < That if the prices so fixed, or if, in the case of taking over or requisitioning of the mines or business of any such producer or dealer the compensation therefor as deter- mined by the provisions of this act be not satisfactory to the person or persons entitled to receive the same, such person shall be paid seventy-five per centum of the amount so determined, and shall be entitled to sue the United States to recover such further sum as added to said seventy-five per centum, v^ill make up such amount as will be just com- ' pensation in the manner provided by section twentyfoui-, paragraph twenty, and section one hundred and forty-five of the Judicial Code. While operating or causing to be operated any such plants or business the President is authorized to prescribe such regulations as he may deem essential for the employment, control, and compensation of the employees necessary to conduct the same. Or if the President of the United States shall be of the opinion that he can thereby better provide for the common defense, and whenever, in his judgment, it shall be neces- sary for the efficient prosecution of the war, then he is hereby authorized and empowered to require any or all producers of coal and coke, either in any special area or in any special coal fields, or in the entire United States, to sell their products only to the United States through an agency to be designated by the President, such agency to regu- late the resale of such coal and coke, and the prices tb' roof, and to estaljlish rules for the regulation of and to regiilate the methods of production, shipment, distribution, ap- portionment, or storage thereof among dealers and consumers, domestic or foreign, and to make payment of the purchase "price thereof to the producers thereof or to the person or persons legally entitled to said payment. That within fifteen days after notice from the agency so designated to any producer of coal and coke that his, or its, output is to be so purchased by the United States as hereinbefore described, such producer shall cease shipments of said product on his own account and shall transmit to such agency all orders received and unfilled, or partially unfilled, showing the exact extent to which shipments have been made thereon, and there- after all shipments shall be made only on authority of the agency designated by the President, and thereafter no such producer shall sell any of said products except to the United States through such agency, and the said agency alone is hereby authorized and empowered to purchase during the continuance of the requirement the output of such producers. That the prices to be paid for such products so purchased shall be based upon a fair and just profit over and above the cost of production, including proper maintenance and depletion charges, the reasonableness of such profits and cost of production to be deter- mined by the Federal Trade Commission ; and if the prices fixed by the said commission 640 GOVEE]!irME]SrT KEGULATIONS RELATHsTG TO PRICES. 641 was, however, previously exercised over anthracite prices in particular by the Federal Trade Commission and over bituminious prices by the coal production committee of the Council of National Defense. The President, by authority from the food and fuel control act, issued a provisional schedule of bituminous coal prices on August 21, 1917, another of anthracite coal prices on August 23, and also named Mr. Harry A. Garfield as United States Fuel Administrator on August 23, 1917. The whole body of fuel-price controls thenceforth were ad- ministered through the United States Fuel Administration at Washington. The United States Fuel Administration was concerned with distribution, production, conservation, and price regulation over domestic coal, but this inquiry pertains only to the price controls exercised by it. The price regula- tions which are tabulated here cover in full the field marked out by the legal division of the Fuel Administration, as compiled ofiicially by them in " general orders, regulations, and rulings of the United States Fuel Administration." They have been brought do-wn to date by assistance from the Fuel Adminis- tration, since the above official compilation covers only the rulings from August 23, 1917, to January 1, 1919. of any such product purchased by the United States as hereinbefore described be unsatis- factory to the person or persons entitled to the same, such person or persons shall be paid seventy-five per centum of the amount so determined and shall be entitled to sue the United States to recover such further sum as added to said seventy-five per centum will make up such amount as will be just compensation in the manner provided for by section twenty-four, paragraph twenty, and section one hundred and forty-five of the Judicial Code. All such products so sold to the United States shall be sold by the United States at such uniform prices, quality considered, as may be practicable, and as may be deter- mined by said agency to be just and fair. Any moneys received by the United States for the sale of any such; coal and coke may, in the discretion of the President, be used as a revolving fund for further carrving out the purposes of this section. Any moneys not so used shall be covered into' the Treasury as miscellaneous receipts. That when directed by the President, the Federal Trade Commission is hereby re- quired to proceed to make full inquiry, giving such notice as it may deem practicable, into the cost of producing under reasonably efficient management at the various, places of production the following commodities, to wit, coal and coke. The books, correspondence, records, and papers in any way referring to transactions of any kind relating to the mining, production, sale, or distribution of all mine operators or other persons whose coal and coke have or may become subject to this section, and the books, correspondence, records, and papers of any person applying for the purchase of coal and coke from the United States shall at all times be subject to inspection by the said agency, and such person or persons shall promptly furnish said agency any data or information relating to the business of such person or persons which said agency may call for, and said agency ia hereby authorized to procure the information in refer- ence to the business of such coal-mine operators and producers of coke and customers therefor in the manner provided for in sections six and nine of thei act of Congress ap- proved September twenty-six, nineteen hundred and fourteen, entitled " An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes," and said agency is hereby authorized and empowered to exercise all the powers granted to the Federal Ti-ade Commission by said act for the carrying out of the purposes of this section. Having completed its inquiry respecting any commodity in any locality, it shall, if the President has decided to fix the prices at which any such commodity shall be sold by producers and dealers generally, fix and publish maximum prices for both producers of and dealers in any such commodity, which maximum prices shall be observed by all producers and dealers until further action thereon is taken by the commission. In fixing maximum prices for producers the commission shall allow the cost of produc- tion, including the expense of operation, maintenance, depreciation, and depletion and shall add thereto a just and reasonable profit. ' In fixing such prices for dealers the commission shall allow the cost to the dealer and shall add thereto a just and reasonable sum for his profit in the transaction. The maximum prices so fixed and published shall not be construed as invalidating any contract in which prices are fixed, made in good faith, prior to the establishment and publication of maximum prices by the commission. Whoever shall, with knowledge that the prices of any such commodity have been fixed as herein provided, ask, demand, or receive a higher price, or whoever shall, with knowl- edge that the regulations have been prescribed as herein provided, violate or refuse to conform to any of the same, shall, upon conviction, be punished by fine of not more than $5,000, or by imprisonmnt for not more than two years, or both. Each independent transaction shall constitute a separate offense. Nothing in this section shall be construed as restricting or modifying in any manner the right the Government of the United States may have in its own behalf or in behalf of any other Government at war with Germany to purchase, requisition, or take over any such commodities for the equipment, maintenance, or support of armed forces at any price or upon any terms that may be agreed upon or otherwise lawfully determined. 125547°— 20 41 642 HISTORY OF PRICES DURING THE WAR. The formal coutrol over prices of coal and coke was discoutiuued by the Fuel Administration on January 31, 1919, and the orders governing the oil industry were set aside on May 15, 1919. Regulations affecting tlie prices of fuel are here arranged under the following heads in the sequence indicated: Anthracite coal, bituminous coal, coke, jobbers' margins and distributers' commissions, retail margins, and petroleum stabilization. ANTHRACITE COAL. The maximum prices of anthracite coal were provisionally lixed by order of the President on August 23, 1917. The prices named in that order, effective on September 1, 1917, were made applicable to the following specific producers : Philadelphia tS: Reading Coal & Iron Co. ; Lehigh Coal & Navigation Co. ; Lehigh & Wilkes-Barre Co. ; Hudson Coal Co. ; Delaware & Hudson Co. ; Scranton Coal Co. ; Lehigh Valley Coal Co. ; Coxe Bros. & Co. ; Pennsylvania Coal Co. ; Hillside Coal & Iron Co. ; Delaware, Lackawanna & Western Rail- road Co. ; Delaware, Lackawanna & Western Coal Co. ; Susquehanna Coal Co. ; Susquehanna Colleries Co. ; Lytle Coal Co. ; M, A. Hanna Coal Co. Other producers were not to exceed the scheduled fixed prices by more than 75 cents per ton. but any producer rescreening at Atlantic or Lake ports for shipment by water might increase the price by not more than 5 cents per ton. All anthracite prices, unless otherwise noted, were maximum prices per ton of 2,240 pounds, f. o. b. cars at mine. The anthracite prices scheduled do not include allowance for a wage increase under the President's order of Decem- ber 5, 1917. The increase of 35 cents per ton provided in that order should be added to all except the Arkansas prices after December 5, 1917. A digest of the prices contained in the President's order, and the later modifications and additions made by the Fuel Administrator, follows :* SCHEDULE OF ANTHRACITE BASE PRICES. Commodity. Date M^hen effective. Price fixed per ton. Commodity. Date when ?™| effective °^^'^ enecriA e. ^^j. ^^^^ White-ash grade: Sept. 1,1917 do 14.55 4.45 4.70 4.80 4.00 3.40 4.75 4.65 4.90 Red-a.sh grade— Contd. Chestnut Sept. 1,1917 $4.90 do 4.10 Eeg Pea Stove do. . . . Do Oct. 1,1917 j 3.50 Chestnut do Lykens Valley grade: Broken Pea ...do Sept. 1,1917 5.00 do 4.90 Do Oct. 1,1917 Sept. 1,1917 do. Egg Red-ash grade: Broken Stove do 5.30 Chestnut do 5.30 Egg Pea ... . ..do 4.35 Stove do Do Oct. 1,1917 1 3.75 1 Prices of all Arkansas anthracite, except slack, were subject to the following' reduc- tions per ton for the summer of 1918 : April, 90 cents ; May, 75 cents ; June, 60 cents ; July, 4.5 cents ; August, .30 cents ; September, 15 cents. Coal at docks on Lake Michigan or Lake Superior were subject to a general summer reduction of 30 cents per gross ton until September 1, 1918. Coal pi-ices at Lake ports were based on freight rates effective June 25, 1918, from the mines to Lake Erie ports. Virginia and West Virginia anthra- cite was subject to a summer reduction of 30 cents per net ton from April 1 to September 1, 1918. GOVERNMENT REGULATIOlSrS RELATING TO PRICES. 643 SCHEDULE OF ANTHRACITE BASE PRICES— Continued. Commodity. Date when effective. Price fixed per ton. Commodity. Date when effective. Price fixed per ton. Bemice Tnines. Spadra field. Bemice mines. Spadra field. Arkansas mines: Grate Jan. 5, 1918 do $7.30 7.55 8.30 8.30 6.30 2.85 2.50 7.75 8.00 8.75 8.75 S6.80 6.80 ■■'Tso 4.80 "'"'2.' 50 7.25 7.25 """'7." 75 Arkansas mines— Continued. Pea May 15,1918 do do $6.75 2.85 2.50 8.75 9.00 9.75 9.75 6.75 4.75 2.50 Egg $5.25 Stove No. 4 do do Buck Slack 2.50 Pea do Grate 8.75 Buck . do do May 15,1918 do Ege 8.75 Slack Stove (Jrate No. 4 9.25 Egg.. Pea 5.25 . .. do Buck No. 4 do Slack 2.50 Commodity. Date when effective. Price fixed per ton. Commodity. Date when effective. Price fixed per ton. Coal at Great Lake docks: Broken June 2.5,1918 do $10.20 10.10 .10.35 10.45 8.80 5.40 5.75 5.75 4.60 Virginia— Continued . Buckwheat July 22,1918 do $1.55 Egg Cixlm .90 Stove do Briquettes do 5.30 Nut ■ do West Virginia: Egg Aug. 29,1918 do Pea do 5.40 Virginia: Egg Jnlv 22,1918 ....Ido Stove 5.75 Nut do 5.75 ... do . . . 5.30 Nut do do Pea and smaller sizes . . do 4.60 Pea Price fixed per ton. Commodity. Price fixed per ton. Commodity. 1 Compa- nies. Individ- uals. Compa nies. Individ- uals. White-ash grade: Broken $5. 95 5.85 6.10 6.20 4.80 6.15 5.45 6.30 86. 70 6.60 6.85 6.95 5.55 6.90 6.20 7.05 Red-ash grade— Continued. Nut $6.30 4.90 6.40 6.30 6.70 6.70 5.15 $7.05 Egg Pea 5. 65 Stove Lykens Valley grade: Broken Nut 7.15 Pea Egg 7.05 Red-ash grade : Stove 7.45 Broken Nut 7.45 Egg Pea 5.90 Stove ' Effective on coal mined on or after Nov. 1, 1918. Note.— The anthracite price schedule has been revised to meet increased labor costs and includes only the actual additional cost of a recent adjustment of anthracite wages. The sizes scheduled comprise 70.6 per cent of the total anthracite output. Remaining anthracite sizes, comprising 29.4 percent of the output are aearly stationary at existing quotations, and no price adjustment was made as to them. Under order of November 16, 1918, maximum prices for the different sizes of anthracite smaller than "pea,"f. o. b., mines, were made that for "pea" size less 50 cents per gross ton of 2,240 pounds. BITUMINOUS COAL. The maximum prices of bituminous coal at tlie mine were tentatively fixed for tlie entire country by order of the President on August 21, 1917. All bituminous coal prices were f. o. b. mine basis, per ton of 2,000 pounds, and do not include allowance for wage increase under the President's order of October 27, 1917. An increase of 45 cents per net ton, granted in that order, should be added to all prices, except those for coal mined in Alabama. 644 HISTORY or PRICES DURING THE WAR. In Alabama a separate and satisfactory wage agreeiueut was made between mine operators and mine worliers and approved bj' the Fuel Administrator, modifying tlie terms of the President's order of October 27, 1917. This agree- ment became effective February 6, 1918. On April 20 new terms were agreed upon in Alabama and the allowance of 45 cents per net ton, as of the order of October 27, 1917, became effective May 15, 1918. On May 24, 1918, there was a general order reducing all prices for bituminous coal, fixed to that date, by the sum of 10 cents for each net ton of 2,000 pounds. A digest of the schedule of prices contained in the President's order and subsequent amendments made by the United States Fuel Administrator follow :* SCHEDULE OF BITUMINOUS BASE PRICES. [Prices fixed by the President on Aug. 23 , 1917.) District. Alabama : Big Seam Pratt. Jaeger, and Corona Cahaba and Black Creek. Arkansas Colorado Illinois Third vein Indiana Iowa Kansas Kentucky Jellico Maryland Missouri Montana New Mexico Ohio: Thick vein Thin vein Oklahoma Pennsylvania Tennessee: Eastern Jellico , Texas Utah Washington West Virginia , Wj'oming Run of mine. $1.9a 2.15 2.40 2.65 2.45 1.95 2.40 1.95 2.70 2.55 1.95 2.40 2.00 2.70 2.70 2.40 2.00 2.35 3.05 2.00 2.30 2.40 2.65 2.60 3.25 2.00 2.50 Pre- pared sizes. S2. 15 2.40 2.65 -2.90 2.75 2.20 2.65 2.20 2.95 2.80 2.20 2.65 2.25 2.95 2.95 2.65 2.25 2.06 3.30 2.25 2.55 2.65 2.90 2.85 3.50 2.25 2.75 Slack or screen- ings. P. 65 1.90 2.15 2.40 2.20 1.70 2.15 1.70 2.45 2.30 1.70 2.15 1.75 2.45 2.45 2.15 1.75 2.10 2.80 1.75 2.05 2.15 2.40 2.35 3.00 1.75 2.25 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. .'Vlabama: Big Seam Oct. 1,1917 . .do........ $2.15 2.85 2.35 2.40 2.40 2.85 2.85 S2. 45 3.10 2.65 ' 2.75 4.00 3.10 3.10 $1.85- Cahaba, Black Creek, Brookwood, Blue Creek 2.45 l^ratt, Jaeger, Jefferson, Nickel Plate, and Coal City do 2.05 Corona .do 2.05 . ...do 2.15 .Sunlight Mining Co., in Walker County Dec. 1,1917 Dec. 6,1917 2.45 Benoit Coal Miniag' Co. and Cordova Fuel Co., in Walker County 2.45 ^ Temporary schedules were published for the summer months allowing reductions, as follows : 1. Colorado: Domestic coal, domestic field — April, 70 cents; May, 50 cents; June, 35 cents; July, 15 cents. Steam coal, Trinidad district — April, 40 cents; May, 30 cents; June, 20 cents ; July, 10 cents. 2. Arkansas and Oklahoma : March, 75 cents ; April, 60 cents ; May, 45 cents ; June, 30 cents : July, 15 cents. 3. New Mexico : April, 50 cents ; May, 40 cents ; June, 30 cents ; July, 20 cents ; August, 10 cents. 4. Texas : April, 75 cents ; May, 60 cents ; June, 45 cents ; July, 30 cents ; August, 15 cents. GOVERlsrMEIsrT REGULATIONS RELATING TO PRICES. 645 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR— Continued. District, Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Alabama— Continued. Linn mines of Monroe- Warrior Coal & Coke Co., to supply Macon, Ga Gilbert Coal Mining Co., Walker County, and the Mount Carmel seam Climax seam, in or about Maylene, Shelby County Big Seam, Upper Bench supersedes orders of Dec. 6 and Dec. 20, 1917 Cahaba Soutliern Coal Mining Co., Hargrove, Bibb County District 'No. 1, Big Seam group District No. 2, Cahaba group. Black Creek group District No. 3, Pratt group District No. 4, Helena and Harkness seams andcoal mined by No. 2 Belle Ellen mine in Youngblood seam District No. 5, mines in the Climax seam, in or about Maylene, Shelby County Montbvello Mining Co : Warrior Pratt Coal Co West Helena Coal Co Montovello Stroven Coal Co Yolande Coal & Coke Co Arkansas: Thin vein seam, Hartford, Greenwood, Midland, Hackett, and Denning Paris field Johnson, Franklin, and Sebastian Counties, except the Excelsior district Logan and Scott Counties and Excelsior district of Sebastian County, namely, mines on the Midland Valley Railroad north of Montreal Junction and east of Hackett and west of, but not at, Greenwood . . . Colorado: Walsenberg, Canon City, Routt, Garfield, Gunnison, Durango, Mesa, Pitkin, Montezuma, Delta, Mont- rose and Rio Blanca (domestic coal) Trinidad (steam coal) Do Northern field and El Paso (lignite) Do Domestic (domestic coal) , Lignite coal Florence, Fremont County, Williamsburg Slope Coal Co 'Walsenberg district: Aztec Coal Mining Co., Caprock Fuel Co., Monument Valley Fuel Co., Caddell & Carlson, Premium Mining Co., Rugby Fuel Co., Gordon Coal Co., Black Canon Coal & Fuel Co., Geo. McNally Coal Co., Black Hawk Coal Co., Ideal Fuel Co., Green Coal Co., Minnequa Coal Co Nut 83. 65 Canon City: Royal Gorge mine, Gibson Lumber & Fuel Co Nut - $3.65 Canon City district: Radiant mine Walsenberg district: Ravenwood mine, Rapson Min- ' ingCo., Cedar HillCoal&CokeCo., OakdaleCoalCo.. Trinidad district: Gray Creek mine, of the Victor Am. Fuel Co. , Empire mine of the Empire Mining Co Canon City district: Wolf Park Coal Co Reliance mine by Alliance Coal Co . : Temple Fuel Co .- G eorgia .- Illinois: McLean County Coal Co. , retail only Counties of Peoria, Fulton, and Tazewell Illinois (third vein) northern field (conditional) and Matherville field, Mercer County Moweaqua Coal Mining & Manufacturing Co., Mowea- qua, Christian County Assumption Coal & Mining Co . , Assumption, Christian County Spoon River Colliery Co., Ellisville (listed in the northern Illinois field) District No. 1: Mercer, Bureau, Kankakee, La Salle, Grundy, Will Putnam, Marshall, Li^'ingston, Wood- ford, and McLean Covmties Dec. 10,1917 Dee. 20,1917 Jan. 17,1918 -do. Feb. 4, 1918 Aug. 23,1918 do do ..do. do Oct. 7, 1918 Oct. 18,1918 do Nov. 6, 1913 Dec. 15,^1918 Oct. 1,1917 Oct. 27,1917 Mar. 29,1918 .do. Oct. 10,1917 do Mar. 11,1918 Oct. 10,1917 Nov. 22, 1917 Mar. 11,1918 do May 1,1918 June 11,1918 June 15,1918 Aug. 20,1918 do Aug 30,1918 do Oct. 8,1918 Nov. 18,1918 Apr. 5,1918 Oct. 27,1917 Dec. 8,1917 ....do Feb. 13,1918 do do Mar. 23,1918 S3. 50 2.85 4.25, 2.35 2.85 2.00 3.00 2.40 2.45 4.15 3.65 2.25 3.00 3.65 3.00 3.05 3.70 4.35 3.00 2.75 2. .35 2.45 2.45 2.25 2.25 2.25 2.C5 2.15 3.00 2.15 2.15 2.15 3.25 2.30 2.65 2.40 3.00 2.65 2.C5 S4.00 3.10 4..50 2.65 3.70 2.30 3.30 2.60 2.75 4.40 3.90 2.50 3.30 3.90 3.30 3.40 4.50 4.60 4.00 3.25 3.25 3.50 3.50 3.50 3.25 4.25 4.15 4.15 4.15 4.15 3.15 4.15 4.15 3.40 3.50 4.00 2.55 2.90 2.C5 4.55 2.90 2.90 S3. 10 2.45 Z.16 2.05 2.45 1.95 2.65 2.00 2.25 2.05 3.15 2.00 2.65 2.65 2.65 2.40 2.00 2.40 2.60 ■1.50 2.00 1.65 1.00 1.25 1.25 1.00 1.25 1.15 1.40 1.15 1.15 1.55 1.15 1.15 1.55 3.20 1.70 2.05 2.40 2.15 2.15 2.40 2.40 646 HISTOEY OF PRICES DURING THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRTOES MADE TiV TIIK UNITED STATES FUEL ADMINISTRATOR— Contiuucd. District. Date when effective. Rim of mine. Prepared sizes. Slack or screen- ings. Illinois— Continued. -District No. 2: Rock Ishuid, Ilcnry, Warren. Knos. Stai-k, Peoria, Hancock, McDoriough, Henderson, Mar. 23,1918 do 52. 40. \ 2.00 "■2. 00 2.40 ^2.00 2.25 2.05 92. CO 2.20 2.20 2.60 2.20 2.50 2.25 $2.10 — District No. 3: Menard, Logan, Dewitt. Champaign, VeiToilion, Sangamon, Macon, Pratt, Christian, Moidtrie, Shelby, (ireene, Macoupin and Mont- gomery Counties", and Madison County north of the latitudeof Alton; alsoall mines not includedlnother 1.70 — District No. 4: Bond, St. Claii", Monroe, andRandolph Counties, and Madison County south of the latitude of Alton, and Clinton, Washington, and Perry Coun- ties, not including mines along the line of Illinois Central Railroad tetween Vandaliaand Carhondale . . — District No. 5: Jackson County, not including mines onthelineof the Illinois Central Railroad between Carbondaleand Pu'"iuoLn do do., 1.70 2.10 — District No. 0: Marion, Jetierson, Franklin, Wiiliam- son, Johnson, Hamilton, SaUne, "V^Tiite, Gallatin, and mines along the mainline of the Illinois Central Railroad between ^'andalia and Carbondals in Clin- do 1.70 Macon County May 1,1918 Oct. 1,1918 Jan. 6, 1919 Oct. 1,1917 May 1,1918 do 1.70 Latham Coal & Mining Co. , Logan County -. 1.75 Searls Coal Co . , in Williamson County, passing through 1.60 Indiana: Brazil block 2.95 2.20 3.25 2.50 2.40 3.40 3.10 2.95 3.40 4.00 4.50 2.95 3.95 4. ,50 3.65 1.70 Indiana 2.00 2.95 2.30 2.20 3.15 2.75 2.70 3.15 2.55 3.05 2.70 3.65 3.50 3.40 1.79 Brazil block 1.70 Essanbee Mine Co. , X'ermilion Count v Aug. 19, 1918 Sept. 25,1918 Oct. 1, 1917 Mar. 11,1918 Apr. 5, 1918 Oct. 1,1917 do 2.00 Atlas Mining Co. at Linton Summit mine, Greene County . . 1.90 Iowa: Appanoose, Wayne, Boone, and Webster Counties Counties 2.90 2.00 Marion County 2.45 Kansas: Mines at Leavenworth take prices for Platte County, Mo. . . 2.90 Osage County 2. .30 Do Dec. 1, 1917 Apr. 20,1918 do 2.80 Cherokee and Crawford Counties, except shaft mines in Lightning Creek or upper thin vein and any min- mg operations in the State not covered by other rul- ings . 2.45 Shaft workings in the Lightning Creek or upper thin vein in Cherokee and Crawford Coimties 2.45 Osage, Franklin, and Linn Counties ...do 2.80 Leavenworth County do". 2.90 Cherokee and Crawford Coimties Aug. 3,1918 Nov. 6, 1917 Oct. 11,1917 Dec. 3, 1917 Apr. 5,1918 do Nut run or stoker coal $3.05 3.55 2.40 2.65 2.20 2.65 2.30 2.30 3.80 2.65 2.90 2.45 2.90 2.55 2.55 Mill coal 2.95 Kentucky: Whitley, Ivnox, Clay, and Bell Counties, Blue Gem district 2.30 McCreary, Pulaski, Rockca.stle, Jackson, Lee, Wolfe, Morgan, Lawrence, Johnson, Martin, Lainel, Whit- ley, Clay\ Omsley, Kjiox, Bell, Breathitt, Perry, Leslie, Harlan, Magoffin, Boyd, Carter, Pike, arid all of Floyd, Knott, and Letcher Counties excepting coal produced from the thick- vein Elkhom district in these three coimties 2.15 Wiiitley, Knox, Bell, and McCreary Counties, other than the Blue Gem district (conditional) 2.40 Harlan, Perry, and Letcher Counties and operations in Pike Coimty on the Le\dsa Fork of the Big Sandy River 1.95 East of the 85th degree of longitude except Harlan, 2.40 Thacker district; operations in Pike County on the watershed of the Tug Fork of the Big Sandy River Kenova district; operations in Pike and Martin Coun- Sandy River west of Williamson, on the Norfolk & Western Ry Apr. 20,1918 do 2.05 2.05 G0VEE5rMEK"T EEGULATIOE"S RELATIiSTG TO PRICES. 647 JdODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FITEL ADMINISTRATOR— Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Kentucky —Continued . Blue Gem coal produced in Knox and Whitley Coun- ties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Wallen Jellico Coal Co., in Whitley Coimty Elldiom City Coal Co. and Guthrie Coal Co., in Pike County District No. 1, west of the 85th degree of longitude. . . District No. 2, Harlan, Letcher, and Perry Coimties, except the operations in Perry County included in district No. 3 - Loony Creek Coal Co., Harlan County Reliance Coal & Coke Co., at the Glowmar mine in Perry County Blue Gem coal mined in Knox and Whitley Counties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Clover Fork, Golden Ash, King Harlan, Lick Branch, Wilson Berger, East Harlan, R. C. Tway, White Star, Harlan Fox, WaUins Creek, Harlan Gas, Creech, Banner Fork. McComb, Bear Branch, Ken- tucky Harlan, Middleton, or Kentucky Coal Co. in Harlan Coimty Utility Gas Coal Co., Kanawha Kuox Coal Co., Ben- netts Fork Coal Co., J. B. Blue Gem Coal Co., J. B. Jellico Coal Co., J. B. Straight Creek Coal Co., Paige JelUco Coal Co., and Pine Ridge Coal Mining Co. m Bell County Spring Branch Coal Co., High Point Coal Co., Harlan- KeUioka Coal Co., J. L. Smith Coal Co., Adair Mm- ing Co.j Baileys Creek Coal Co., High Splint Coal Co., Wilson Berger Coal Co., and Black Mountain Coal Corporation in Harlan County Blue Gem Coal mined in Knox and Whitley Coimties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Nut and slack through IJ-tuch bars |2. 55 District No. 3: East of the 85th degree of longitude, excepting Harlan, Letcher, and Martin Counties; that part of Pilie County on the watershed of the Tug Fork of the Big Sandy River, and that part of Perry County included in district No. 2, but including the operations in Perry County of Hazard Coal Co. , Dia- mond Block Coal Co., ConevaCoal Corporation, Storm King Coal Co., C. H. McDonald Coal Co., Four Seam Block Coal Co., Daniel Boone Coal Co., Blue Grass Coal Corporation, Columbus Mining Co., No. 4 Coal Co.; and Walker's Branch Mining Co District No. 4, or Thacker: Operations in Pike Coun- ty on the watershed of theTug Fork of the Big Sandy River east of WilUamson on the Norfolk & Western R. R District No. 6, or Kenova: Martin County, and opera- tions in Pike Coimty on the watershed of the Tug Fork of the Big Sandy River west of Williamson on the Norfolk & Western R. R The following producers arQ not included: Blue Gem Coal produced in Knox and Whitley Coun- ties by operators who are members of the Tri-County Blue Gem Coal Operators' Association Coal produced in Whitley Coimty by the Wallen- Jelhco Coal Co Coal produced in Pike County toy the Elkhorn City Coal Co. and the Guthrie Coal Co Kentucky Block Camiel Coal Co. south of the Licking River in Morgan County Norton Coal Co., White Plains Coal Co., and B. D. WUUams Coal Co. in the Empire or Mannington seam, in Christian and Hopkins Coimties Maryland: The North Maryland Coal Mining Co. in Allegany County The upper Potomac, Cumberland, and Piedmont fields, comprising all coal mined in the State of Maryland and in parts of West Virginia. _ Michigan What Cheer Mining Co., Banner Coal Co.. BUss Coal Co., Robert Gage Coal Co., Beaver Coal Co., Consoh- dated & Wolverine Coal Cos Mav 1,1918 Aug. 19,1918 do Aug. 23, 1918 do Oct. 5, 1918 do Oct. 28,1918 .do. .doi. do Dec. 7,1918 Aug. 23,1918 .do. .do. do ....do do , Sept. 25, 1918 do Dee. 3,1917 Feb. 1,1918 Oct. 27,1917 Nov. 30,1917 153.55 3.25 2.55 1.90 2.10 2.55 2.55 2.00 2.15 3.30 2. .55 2.20 3.45 3.25 2.55 3.45 2.35 2.75 2.40 3.15 3.40 3.50 2.80 2.15 2.35 2.80 2.80 2.85 2.40 4.05 2.80 2.45 2.45 3.70 3.50 2.80 3.50 2.60 2.65 3.60 3.95 1 Announced Jan. 2, 1918. 648 HISTORY OF PRICES DUKHSTG THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR— Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Michigan— Continued. Hand V FJios Nov. 30, 1919 do -do.. . .S3. 70 4.55 S4.25 5. 05 5. 55 3.85 4.15 4.95 5.45 3.40 3.40 2.95 3.40 3.95 3.65 $2.55 3.55 3 55 Caledonia mine, operated by the Robert Gage Coal Co. Flint mine, operated by the What Cheer Mining Co What Cheer Mining Co., Banner Coal Co., Bliss Coal Co., Robert Gage Coal Co., Beaver Coal Co., Consoli- Aug. 16,1918 do 3.30 3.60 4.45 3.05 3.15 3.15 2.70 3.15 3.65 3.40 2 50 2 80 do 3 80 Flint mine, operated by What Cheer Mining Co do 3 80 Missouri: Lafayette^ Ray, Clay, Platte, and Linn Counties Putiiara County and the Longwall thin vein seam in Randolph County.. . . . . . . Oct. 1,1917 Oct. 27,1917 Apr. 20,1018 do 2.90 2 90 Di.strict No. 1: Aiidram, Barton, Bates, Galloway, Ilem-y, Johnson, Monroe, Randolph, Ralls, St. Clair, Schuyler, ^'ernou, and Montgomery Counties; Adair County except operations of the Star Coal Co., and Macon Coimty east of New Cambi'ia, and mining operations not covered by other rulings 2 45 District No. 2: Boone, Clay, Cooper, Chariton, Carroll, Dade, Harrison, Linn, Lafayette, Putnam, Ray, and SulUvan Coimties, and Macon Coimty west of New Cambria, and the long wall thin-seam mines in Randolph Coimtv 2.45 C.nmdy Coimty, operations of the Star Coal Co. in Adair County and shaft workings in the Lightning Creek or upper thin vein in Barton, Bates, and Ver- non Counties do 2.45 Platte Coimtv do 2.45 Barton and Vemon Counties. . . Aug. 3, 1918 Sept. 14,1918 Oct. 27,1917 Mar. 11,1918 May 1, 1918 Oct. 28,1917 Nov. 26,1917 .do Nut run or stoker coal $3. 05 4.50 2.70 2.65 2.70 2.75 3.05 4.05 3.00 2.35 3.05 4.25 4.05 3.00 4.05 2.25 2.25 2.70 3.75 3.25 2.00 2. 35 3.00 2.10 2..-0 2.50 2.25 2.50 5.00 3.60 3.30 3.60 3.25 4.50 5.05 4.00 3.25 4.05 5.05 4.55 4.00 5.05 Mill coal 2.95 Moniteau and Morgan Counties 2.45 Montana 1.50 Do 1.50 Do l.OO New Mexico: Raton district 2.00 Gallup field 2.00 Cerrillos and Carthage fields. . . . 3.55 Sugarite and Monero fields . ...do 2.00 ^ Raton district Apr. 1,1918 do 1.65 Gallup field 2.00 Carthage field do 3.55 Cerrillos field -do .3.55 Sugarite and Monero fields do 2.00 Cerillos field Aug. 30,1918 Jan. 4,1918 May 24,1918 do 3.55 North Dakota: Lignite coal 1.25 Screened lump S2. 50 f)-inch steam lump 2. 00 $2. .50 3.00 4.00 3.50 2.25 2.60 3. 2.-. 2.35 2.75 2. 75 2. .50 2.75 Lignite coai, mined south of the twelfth standard par- allel . . 1.25 6-inch steam lump $2 All coal mined north of the twelfth standard parallel . . . 1.00 6-inch steam lump 12. 50 Nov. 6,1917 Jan. 23,1918 Mar. 23,1918 June 29,1918 ....do Ohio: Deerfield or Palmyra field, Massillon field, and Jackson field. '.... 3..''0 Do 3.00 Jefferson, Harrison, Belmont, Carroll, and Monroe Countias 1.75 District No. ] : Meigs County, Cheshire and Addison TowTishi ps in Gallia County 2.10 District No. 2: Vinton, Jackson, Lawrence, Sciota, Pike, and Gallia Counties, except Cheshire and Ad- dison Townships in Gallia County 2. .85 District No. 3: Hocking and Athens Coimties, and Coal Township and the south half of Monroe Township Perry County do 1.85 The Bailey Run or No. 7 seam .do 2.25 gan County , except the township of H omer, and Perry do 2. 25 District No. 5: Guernsey and Muskingum Counties. . . District No. 6: Holmes, Tuscarawas, Carroll, Coshoc- ton Counties and the townships of Monroe, Franklin, Washington, and Freeport in Harrison County and the townships of Washington and Yellow Creek in Creek, Saline, Springfield, Ross, and Knox in Jeffer- son County do do 2.00 2.25 GOVERisrMEiSrT kegtjlatiojsj's relating to prices. 649 MnDT-RTPATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL MUiUJ' lOAiiw ADMINISTRATOR— Cdbtinued. District. Date when effective. Ohio— Continued. ^ .^ ,, ■. . District No. 7: Trumbull, Portage, Summit, Mahoning, ■ Medina, Wayne, Stark, and Columbiana Counties, except the townships of Yellow Creek and Washing- ton District No. 8: Monroe County, Behnont County, ex- cept Warren Township; Harrison County, except Monroe, Franklin, Washington, and Freeport Town- ships; Jeflerson County, except Brush Creek, Saline, Ross, Knox, and Springfield Townships WajTie Mining Co., Guernsey County District No. 1 District No. 2 - District No. 3: Hocking and Adams Counties, Coal and Monroe Townships in Perry County, and Homer TownshiD in Morgan County The Bailey Run or No. 7 seam District No. 4: Washington and Noble C ounties, Mor- gan County except Homer Township, and Perry County except Coal and Monroe Townships District No. 5: Muskingiun County District No. 6: Holmes, Tuscarawas, Carroll, and Cos- hocton Counties, Monroe, Franklin, Washington, and Freenort in Harrison County, and Washington and Yellow Creek Townships in Columbiana County, and Brush Creek, Saline, Springfield, Ross, and Knox Townships in Jefferson Comity, and operations in the 8-A vein in Flushing and Umon Townsliips in Belmont Coimty District No. 7 - - District No. 8: Monroe County and Belmont County, except Warren Township and operations in the 8-A vpin in Flushing and Union Townships, Harrison County except Monroe, Franklin, Washington, and Freeport Townships, and Jefferson County except Brush Creek, Sahne, Ross, Knox, and Sprtagfield Townships District No. 9: Guernsey County and Warren Town- ship in Belmont County Wayne Mining Co. , Guernsey County Southern Ohio Coal Co., Starr Township, Hocking County Wheeling and Liberty Townships m Guernsey Covmty (transferred from district No. 9 and district No. 6) Oklahoma: Le Flore and Haskell Counties Ocmulgee and Tulsa Counites Coal County Pittsburg and Latimer Coimties Le Flore and Haskell Counties (conditional) Okmulgee and Tulsa Counties (conditional) Coal County (conditional) Pittsburg and Latimer Counties (conditional) Le Fiore, HaskeU, Okmulgee, Tulsa, Rogers, and Coal Counties, and the Hartshom-Wilburton vein in Pitts- burg and Latimer Counties McAlester vein in Pittsburg and Latimer Counties Pennsylvania: O'DonneUBros., at Morris Run, Tioga County (condi- tional) Ajax Hocking Coal Co., in Clearfield and Somerset Counties (publication No. 2 and special order) Operations in the counties of Tioga, Lycoming, CUnton, Center, Huntingdon, Bedford, Cameron, Elk, Clear- field, Cambria, Blair, Somerset, Jeflerson, Indiana, Clarion, Annstrong, Butler, Mercer, Lawrence, and Beaver, and operations in Allegheny Countj^ from the lower end of Tarentum Borough north to the county Une, and in Westmoreland County from a point opposite the lower end of Tarentum Borough north along the Allegheny River to the Kliskiminitas River, and along the Kiskiminitas River eastward to the Conemaugh River, and contuiiung along the Conemaugh River to the county line of Cambria County Operations on the Baltimore & Ohio R. R. from the Somerset County line to and including Indian Creek and the Indian Creek Valley branch of the Baltimore &OhioR. R June 29,1918 ....do Aug. 20,1918 Aug. 23,1918 do .do. .do. -do. -do. .do. .do. Run of mine. -do. .do. .do. Oct. 8,1918 Nov. 19,1918 Oct. l,19ir do do do Nov. 30, 1817 do do , do Mar. 29,1918 do Dec. 8, 1917 Nov. 13,1917 Feb. 16, 1918 Mar. 14,1918 $3.00 1.90 2.50 2.30 2.95 2.05 2.45 2.45 2.20 2.45 2.95 Prepared sizes. 2.05 2.50 2.95 2.20 3.50 3.10 3.30 3.50 3.75 3.35 3.55 3.75 3.70 4.25 2.25 2.75 2.15 2.75 2.55 3.20 Slack or screen- ings. 2.70 2.45 2.70 3.20 S2.85 1.90 2.25 2.05 2.80 1.80 2.20 2.20 1.95 2.20 2.80 2.60 2.15 1.90 2.30 1.80 3.75 2.25 3.20 2.80 2.45 1.95 4.30 2.25 3.90 2.00 4.10 2.00 4.30 2.25 4.55 2.50 4.15 2.25 4.35 2.25 4.55 2.50 4.60 2.40 5.10 3.00 2.50 2.00 2.60 2.00 1 1 2.60 1 2.60 650 HISTORY or PEIOES DUKING THE WAR. MODIFICATIONS TO THK PRESIDENT'S PRICKS MADE BY THE UNITED STATES FUEL AD MIlllSTR AT O R— Continued . District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. Pennsyh-ania— Continued . Pittsburgh field, including the counties of Washington, Greene, Fayette, Westmoreland, and Allegheny, except (1) that portion of Allegheny County fi-om the lower end of Tarcntum Borough north to the county line; (2) the territory in Westmoreland Coimty fi-om a point opposite tlie lower end of Tarcn- tum Borough north along the Allegheny Rircr to the KisMmmitas River and along the Kiskiminitas River eastward to the Conemaugh River and con- tinuing along the Conemaugh River to the cormty line of Cambria County; (3) operations on Indian Creek in Westmoreland Coimty; and (4) operations in the Ohio Pyle district of Fayette Coimty Mar. 23, 1918 S2.00 S2.25 $1.75 Coal mined by the Fall Brook Coal Co. "in Tioga County June 14, 1918 2.50 2.80 2.30 The coimties of AUeghony, Westmoreland, Fayette, Greene, and Washington, except (1) that portion of Allegheny Coimty from the lower end of Tarcn- tum Borough north to the countv line; (2) the ter- ritory in Westmoreland County from a point oppo- site the lower end of Tarentiim Borough north along the Allegheny River to the Kisldminitas River and along the Kiskiminitas River eastward to the Con- emaugh River and continuing along the Conemaugh River to the coimty line of Cambria Coimty; (3) op- erations on Indian Creek la Westmoreland Countv; and (4) operations in the Ohio Pyle district of Fay- ette County June 29, 1918 1.90 2.15 1.90 Coal produced at the stripjping operation of the Graff Mining Co. in Westmoreland County (wage increase not to be added) Oct. 1, 1918 2.95 2.95 2.95 Wilson Begler Coal Co., Beaver County Nov. 19, 1918 2.95 3.20 2.80 Tennessee (eastern): Counties of Scott, Claiborne, Anderson, Morgan, and Campbell Oct. 11,1917 2.40 2.65 2.15 Blue Gem district, Campbell County Nov. 4, 1917 3.55 3.80 2.30 Coimties of Claiborne, Morgan, Anderson, Scott, and Campbell, other than the Blue Gem (conditional). . . Dec. 3, 1917 2.65 2.90 2.40 Bledsoe, Marion, Gnmdy, and White Counties Dec. 8, 1917 2.40 2.65 2.15 Cumberland County •. Jan. 12, 1918 2.40 2.65 2.15 AU except Overton and Fentress Coimties Apr. 5. 1918 2.65 2.90 2.40 Overton and Fentress Counties ... .do.; 2.20 2.45 L95 Blue Gem coal produced in Campbell County by opera- tors who are members of the Tri-County Blue Gem Coal Operators' Association May 1,1918 3.55 3.80 2.40 Bon Air Coal & Iron Corporation in the Bon Air mine, in White County . ^. JuQe 19, 1918 3.45 3.70 2.30 T. M. Morrison Coal Corporation and the Lone Moun- tain Coal Corporation at Pennington Gap in Lee Countv do 2.55 2.80 2.30 White Oak Coal Co. , Fentress Countv Sept 14, 1918 2.56 2.80 2.30 Sterling Coal & Coke Co., Reliance Coal & Coke Co., Brj'san Mountaiu Coal & Coke Co., Climax Coal Co., Mingo Coal & Coke Co. , and Fork Ridge Coal & Coke Co. , in Claiborne Coimty 1 Oct. 28, 1918 2.60 2.85 2.30 Coal mined in Campbell "Coimty by members of the Tri-County Blue Gem Operators ' Association Oct. 29, 1918 2.55 3.70 2.30 Nut and slack through l^-inch bars $2.55 Dec. 7, 1918 3.30 4.05 2.30 Texas: Operators at Thurber and Strawn Nov. 14,1917 3.60 4.40 2.25 Operators at Bridgeport do..'. 4.25 5.05 2.25 Counties of Young, Erath, and Palo Pinto Nov. 16, 1917 3.60 4.40 2.25 Wise County do... 4.25 5.05 2.25 Lignite coal Mar. 5, 1918 1.40 .85 Screened, at least 15 per cent screenings out, $1.50. Lignite coal June 22,1918 1.55 1.75 1.00 All Texas bitmninous coal, except coimties of Erath, Palo Alto, and Yoimg d 16, 1918 4, 1918 11,1918 4.25 3.40 3.40 4.25 2.65 5.05 4.20 4.55 5.40 3.30 2.25 Counties of Erath, Palo Pinto, and Young d 2.25 Do Aug. Sept. Mar. 2.25 Wise Countv 2.25 Utah 1.50 Virginia: Mines operated near St. Charles, Lee County, by the Darby Coal Mining Co., Black Mountain MmingCo., Virginia Lee Co., Old Virginia Coal Co., United Col- lieries Co. (Inc.), Benedict Coal Corporatioii, and the Imperial mine of the Virginia Iron, Coal & Coke Co., Roanoke /Oct. \Apr. 11,1917 20, 1918 2.40 2.66 2.65 2.90 2.15 2.40 1 Announced Jan. 2, 1918. GOVERiS'MElSrT REGULATIOIs'S RELATING TO PRICES. 651 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ixLyjuLS! J.V. ADMINISTRATOR— Continued. District. Date when effective. Run of mine. Prepared sizes. Slack or screen- ings. 27,1917 21,1918 7, 1918 Feb. 28,1918 Apr. 5, 1918 Mar. 21,1918 ;Vpr. 2(3,1918 May 24,1918 June 1,1918 Aug. 20,1918 Aug. 19,1918 ....do S2.40 3.30 2.40 2.50 2.20 2.00 Oct. 28,1918 Nov. 19,1918 ,1918 do. Dec. 16,1918 0) 2.40 $2.65 3.55 2.65 2.75 2.45 2.25 2.90 2.90 2.65 2.15 2.60 2.15 2.(.0 1.90 3.20 2.40 1.90 2.10 2.20 2.40 2.85 2.80 2.15 2.03 2.35 2.45 $2.15 3.05 2.15 2.25 1.95 1.75 2.40 2.40 Virginia— Continued. ^ , , ^ ._ /^ ^ Imperial mine of the Virgmia Iron, Coal & Coke Co., ot Roanoke Oct. Richmond Basin, Chesterfield and Henrico Counties . . . Jan. Extreme northern part of Buchanan County Feb. Clinch Valley No. 1 district or "Upper Clinch"; coal mining operations on the Norfolk & Western Ry., Hockman to Fumey, inclusive Lee, Wise, Dickinson Counties, and Russell County west of Finney, on the Norfolk & Western Ry Pocahontas district: Operations on the Norfolk & "Western Rv. and branches west of Graham, Va., to Welch, W.'Va., including Newhall, Berwuid, Cane- brake, Hartwell, and Beech Fork branches; opera- tions on the Virginian Railroad and branches, west of Rock to Herndon, W. Va. (confirmation of Presi- dent's prices) Darby Coal Mining Co. , Virginia Lee Co. , Old Virginia Coal Co., United Collieries Co. (Inc.), Benedict Coal Corporation, Imperial mine of the Vii'ginia Iron, Coal & Coke Co. , Roanoke Mines operated near St. Charles, Lee County, by the Cumberland Coal Co., the Penn Lee Coal Co., the Lecova Coal Co. , and the Wilma Coal Co Pocahontas district (as described in the order of the United States Fuel Administrator, dated Mar. 21, 1918) -- Lee County: Mohawk Coal Mining Co., Keokee; Powell River Coal Co., Purcell; North ForkCoalCo., Pennington Gap Splash Dam Coal Corporation, and MeClure Coal Corporation, in Dickinson County T. M. Morrison Coal Corporation, Lone Mountain Coal Corporation, at Pennington Gap in Lee Coimty Black Mountain Mtning Co., Benedict Coal Co., Bondurant Coal Co., Darby Coal Co., United Col- lieries Co., and Old Virginia Coal Co., in Lee Cotmty. Chnehfleld Coal Corporation, Camper Coal Co., Kil- gore Coal Co., Stonegap Colliery Co., J. A. Esser Coke Co., Yellow Creek Coal & Coke Co., Glade^-ille Coal Co., Wise Coal & Coke Co., Norton Coal Co., Blackwood Coal & Coke Co., and Stonega Coal Co., in Wise County, and Stonega Coal Co., at Keokee mine in Lee County do. Roberts Coal Co. , in Wise Coimty do. Robert Fleming & Co., of Norton; Hawthorne Co., of Norton; John B . Guernsey & Co. , of Tacoma Emerald Coal Co., Obey Branch Coal Co., Pucketts Creek Coal Co. , in Lee County Dec. Bradley Coal Co., White Oak Coal Co., Hawthorne Coal Co. , Felton Coal Mining Co. , in Wise County . . Stone Gap Colliery Co., Norton Coal Co., J. A. Esser Coal Co., Kilgore Coal Co., in Wise County District No. 1: Operations not classified under other ditricts or covered by the proviso hereioafter set forth District No. 2: Operations in the Richmond Basm | within Chesterfield and Henrico Counties : do District No. 3: Clinch Valley No. 1 district or "Upper CUnch, ' ' tjeing coal-mining operations on the Norfolk & Western Ry. from Hockman to Finney, inclusive do . District No. 4: That portion of the Pocahontas district located in the State of Virginia, said Pocahontas dis- trict being more particularly described as comprising operations on the Norfolk & Western Ry. west of Graham, Va., to Welch, W. Va., also including oper> ations on the Vh-ginian Ry. aoid branches west ot Rock to Herndon, W. Va do . District No. 5: Lee, Wise, and Dickenson Counties and Russel County west of Finney on the Norfolk & Western Ry do . District No. 6: That portion of the Thacker district located in Virginia, being operations ui the extreme northern portion of Buchanan County do . Providing that the following prices shall ap_plytothe operations and operators hereinafter mentioned: 1 Where slack or screenings passing through the accepted standard screens customarily used prior to Jan. 1, 1916, constituted not less than 55 per cent of the mine-run output of any mine, such slack or screen- ings may be sold at the run-of-mine price applicable at said mine at date of shipment. 2.30 2.15 2.30 2.30 1.85 2.30 1.85 2.30 2.30 1.65 2.95 2.15 1.65 1.85 1.95 652 HISTORY OF PRICES DURING THE WAR. MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR— Continued. District. Virginia — Continued. Operations of Splash Dam Coal Corporation and Mc- Clure Coal Corporation in Dickenson Comity Operations of Cumberland Coal Co., Perm Lee Coal Co., Leecova Coal Co., Wilma Coal Co., Virginia Lee Co., Emerald Coal Co., Oliey Branch Coal Co., Puck- etts Creek Coal Co., Mohawk Coal Mining Co., Pow- ell River Coal Co., North Fork Coal Co., T. M. Mor- rison Coal Corporation, Lone Mountain Coal Corpo- ration, and Imperial mineofthe Vhginia Iron, Coal & Coke Co., of Roanoke, in Lee Coimty Operations of Black Mountain Mining Co., Benedict Coal Co^ Bondurant Coal Co., Darby Coal Co., United Colheries Co. (Inc.), and Old Virginia Coal Co., near St. Charles, Lee Coimty Operations of Stonega Coal & Coke Co. at Keokee, Lee Coimty; Clinchfield Coal Corporation, Camper Coal Co., Yellow Creek Coal & Coke Co., Blackwood Coal & Coke Co., Stonega Coal & Coke Co., Rol^ert Flem- ing & Co., and John B. Guernsey & Co., in Wise County Operations of Bradley Coal Co., Wliite Oak Coal Co., and Fclton Coal Mining Co., in Wise County Operations of Roberts Coal Co., Stone Gap Colliery Co. , Noitcn Coal Co^ Hawthorne Coal Co., J. A. Esser Coke Co., and Kjlgore Coal Co., in Wise County Washington: » IMerce and King Counties Screened coals — Bituminous — ICittitas County Lump andegg Special steam and gas Semibituminous — I^ewis and Thm'ston Counties Lump Lump nut Nut W^ashed coals — Bituminous — Kittitas County Pierce, King, Lewis, and Skagit Counties Lump nut Mixed steam Straight steam and gas : Sub-bituminous — King County Lump nut Pea Buckwheat Lewis County Lump Nut Pea Buckwheat West ^'irginia: Ajax Hocking Coal Co., m Mineral Coimty (Publica- tions 2, 4E , and special order) Davy-Pocahontas Coal Co., in McDowell County i^omeroy field Mineral, Grant, Tucker Counties and the extreme eastern and southeastern j)ortion of Preston County Kenova and Thacker fields in Mingo County, the ex- treme southern part of Wajme County, andtheex- treme northwestern part of McDowell "County Tug River district: Coal-mining operations on the Norfolk & Western Ry., west of Welch to Panther, including branches, exLcept NewhaU, Berwind, Cane- brake, and Hartwell Preston County, being part of the upper Potomac, Cumberland, and Piedmont fields Wayne County, being part of the Kenova and Thacker fields Pocahontas district: Operations on the Norfolk & Western Ry., and branches we.st of Graham, Va., to Welch, W. Va.. including Newhall, Berwind, Canebrake, Hartwell, and Beech Fork branches; also operations on the Virginian Railroad and branches, west of Rock to Hemdon, W. Va. (President's prices) Date when cSective. Run of mine. Dec. 10,1918 .do. .do. .do. .do. do , Oct. 1, 1917 Mar. 29, 1918 Mar. 29, 1918 Mar. 29, do.. 1918 Mar. 29, 1918 Mar. 29, Mar. 29, 1918 Nov. 13, Nov. 22, Nov. 28, 1917 1917 1917 Feb. 1, 1918 Feb. Feb. 28, do. Mar. 5, 1918 2.55 2.60 2.15 2.55 2.60 3.25 ings. 2.75 2.75 2.35 2.40 » Preparations of coal mined in the State of Washington must approved by the State mine price board. , 1918 conform $2.65 2.40 2.80 2.85 4.50 3.95 3.25 3.95 3.25 3.00 6.00 5.25 5.00 3.50 3.25 3.95 3.75 3.00 1.50 2.60 2.65 2.40 2. 40 2. 65 2.40 ! 2.65 2. 40 2. 65 2. 00 2. 25 1. 75 to reports submitted to and GOVEKWMEFT EEGULATI01*fS RELATING TO PRICES. 653 MODIFICATIONS TO THE PRESIDENT'S PRICES MADE BY THE UNITED STATES FUEL ADMINISTRATOR— Continued. District. Date when effective. Run of mine. West Virginia— Continued. ' No. 8 or Pittsburgh seam, in Hancock, Brook, Ohio and Marsliall Counties No. 10 district; Coal and coke and Gauley Districts; Taylor, Barbour, Lewis, Buckhannon, Randolph, Gihier, Braxton, Webster, and Greenbrier Counties; operations in Nicholas Coimty east of the mouth of the Meadow Branch of the Gauley River, and the coal and coke district in Kanawha and Clay Counties north of Charleston .- — Fairmont district; Monongalia, Marion, and Harrison Counties Thacker District: Operations in McDowell County, west of Panther on the Norfolk & Western Ry. and in Mingo County west along the Tug Fork of the Big Sandy River to WilUamson on the Norfolk & West-^ ern Ry ; v;-- ••;■,• " New River district: Fayette County south of Hawk's Nest on the Chesapeake & Ohio R. R., and Fayette and Raleigh Counties south of Paintsville on the Virginian R. R., and Wyoming County north of Herndon on the Virginian R. R Logan district: Logan County and operations in V Boone Coimty south of Danville on the Chesapeake & Ohio R. R., and Lincohi County south of Gill on the Chesapeake & Ohio R. R Putnam County Kenova District: Operations on the watershed of the Tug Fork of the Big Sandy River west of Wilham- son on the Norfolk & Western Ry. and Wayne County - --- Kanawha district: Nicholas County west of the mouth of the Meadow Branch of the Gauley River; Fayette County west of Hawk's Nest on the Chesapeake & Ohio R. R., and north of Paintsville on the Vir- ginian R. R., and operations in Raleigh and Boone Counties on the watershed of the Clear Fork Branch of Coal River, Boone County, north of Danville on the Chesapeake & Ohio R. R.; Kanawha County south of Charleston and LincoJn County north of Gill on the Chesapeake & Ohio R. R Mines operated near Richmond, Nicholas County by the Saxman Coal & Coke Co Pocahontas district: New River district, Tug River district (as described in the order of the Umted States Fuel Administrator, Mar. 21, 1918) Mason County Do -- Hancock, Brook, Ohio, and Marshall Counties Three Forks Coal Co., in the New River district Wyoming Do - Sub-bituminous— Egg run Nut run Mar. 23,1918 Apr. 20,1918 do .do. .do. .do. .do. .do. do May 24,1918 June 1,1918 June 29,1918 Aug. 29, 1918 June 29, 1918 Dec. 7, 1918 Oct. 1,1917 Mar. 11,1918 Mar. 23,1918 do S2.00 2.30 2.15 2.30 2.35 2.15 2. .50 2.30 2.25 2.80 (0 2.35 2.30 L90 2.55 2.50 2.65 Prepared sizes. 2.55 2.40 2.55 2.60 2.40 2.75 2.50 3.05 2.60 2.55 2.15 2.55 3.50 3.30 2.15 2.00 Slack or screen- ings. $1.75 2.05 1.90 2.05 2.10 1.90 2.25 2.05 2.00 2.55 2.10 2.05 L90 2.00 1.25 1.50 ' Where slack or screenings passing through the accepted standard screens customarily used prior to Jan. 1, 1916, constituted not less than 55 per cent of the mine run output of any mine, such slack or screen- ings may be sold at the run-of-mine price applicable at said mine at date of shipment. REVISION OF DESCRIPTION OF CERTAIN DISTRICTS IN WElST VIRGINIA A^ CONTAINED IN PRICE ORDER OF APRIL 19, 1918, ANNOUNCED JUNE 27, 1918. New River district : County of Fayette east of the Ganley River to Hawks Nest on the Chesapeake & Ohio Railroad, and east of a line drawn from Hawks Nest to Roseville on the Virginian Railroad, and the counties of Fayette and Raleigh, south of Roseville, and the county of Wyoming north of Herndon on the Virginian Railroad. Kanawha district : County of Nicholas west of the mouth of the Meadow Branch of the Ganley River, the county of Fayette west of the Ganley River and north of the Kanawha and west of a line drawn from Hawks Nest on the Chesapeake & Ohio Rail- road to Roseville on the Vira:inian Railroad and operations in the counties of Raleigh and Boone on the watershed of the Clear Fork Branch of Coal River, and the county of Boone north of Danville on the Chesapeake & Ohio Railroad, and the counties of Kanawha and Clay south of Charleston and the county of Lincoln north of Gill on the Chesapeake & Ohio Railroad. 654 HISTOKY or PRICES DURING THE WAH. District. Lump. Kun of pile. Screen- ings. Coal at docks on Lake Michigan or Lake Superior: From Oct. 30, 1917, to Apr. 30, 1918— Yougliiogheny, Fairmont, Greensburg, and Westmoreland County fields No. 8 seam, eastern Ohio fields Hocking and Pomero.v, Ohio, fields West Virginia splint and lilock fields Kentucky gas and steam and splint and Mock fields Smokeless coal fields From June 1, 1918, to Apr. 30, 1919— Youghiogheny, Fairmont, Greensburg, Westmoreland No. 8 seam, Ohio and Hocking, and Pomeroy fields Harlan , Thacker , Keno va, and Kanawha fields Pocaliontas, New River, and Tug Kiver fields From Sept. 26, 1918, to Apr. 30, 1919— Southwestern district in Pennsylvania, Fairmont and Panhandle districts in West Virginia, and districts 3,8, and 9 in Ohio Harlan, Thacker, and Kenova districts in Kentucky; Thacker, Kenova, Kiiuawha, Mason County districts in West Virginia; districts Nos. 1,2,4, 5, 6, and 7 in Ohio Pocahontas, New River, and Tug districts in West Virginia 16.60 6.40 6.60 6.85 7.20 '7.70 5.80 6.30 6.30 6.30 6.30 $6.40 6.20 6.40 6,65 7.00 6.55 0.00 6.05 6.05 6.05 6.05 56. 20 6.10 6.20 6. 55 6.55 6.55 5.30 5.80 6.05 5.30 5.80 0.05 1 Lump and egg. Alsove prices are based on freight rates between mines and Lake Erie ports, effective June 1. 1918. By order of November 20, 1918, the sum of $1.05 per gross ton was added to these prices. Cannel coal. — On June 28, 1918, prices of cannel coal were fixed as for those of bituminous coal at the mine where the coal was produced, except that if the producer held a permit he might sell lump cannel coal at not to exceed $1 per net ton over the price for run-of-mine bituminous at the mine where such coal was produced. Mixture of cannel and bituminous coal. — On February 26, 1918, the following ruling was announced : " Where cannel and hituminous coals are mixed the maximum price for the mixture sTiall be the mine price for the bituminous coal in such mixture." On July 16, 1918, regulations became effective as follows : Section 1. The prices of cannel coal shipped on and after the effective date of this regulation are hereby fixed f. o. b. cars at the mine per net ton at not to exceed the applicable Government mine price for bituminous coal at the mine where such cannel coal is produced : Provided, hotverer, That if the producer of such cannel coal shall obtain from the United States Fuel Administrator a permit therefor lump cannel coal may be sold for a sum not to exceed $1 per net ton above the applicable Government mine price for run-of-mine bituminous coal at tlie mine where such coal is produced. Sec. 3. When cannel coal is loaded into box cars a charge of .50 cents ijer net ton in addition to the prices fixed in section 1 hereof may be made to cover the cost of labor and material necessary to load such coal into box cars. No .such charge shall be made on shipments In box cars of cannel coal mixed with bituminous coal. Sec. 4. When run-of-mine or prepared cannel coal is mixed with bituminous coal of any size the mixture shall be sold at a price not to exceed the Govern- ment mine price for bituminous screenings appUeable at date of shipment at the mine wliere such cannel coal is produced. Sec. 5. When cannel coal from which the lumps have been screened is mixed with bituminous coal of any size the mixture shall be sold at a price not to ex- ceed the Government mine price for bituminous screenings applicable at date of shipment at "the mine where such cannel coal is produced less 30 cents per net ton. Modified mine-run coal. — By order of July 3, 1918, effective July 5, 1918, maxi- mum prices of " modified mine-run " coal were to be the Government prices for screenings at the mine where such coal was produced, plus tlie following percentages of the margin or difference between the applicable Government mine prices for mine run and screenings at such mines, viz : Run of mine passed through 2-inch openings, 40 per cent of such margin. Run of mine passed through 3-inch openings, 75 per cent of such margin. GOVERXMEISTT EEGLTLATIONS EELATIK^G TO PRICES. 655 Run of mine passed tlirough 4-incli opeaings, 90 per cent of sucli margin. Rim of mine passed tlu-ough 5-ineh openings, 95 per cent of such margin. Run of mine passed through 6-inch or larger openings shall take the appli- cable Government price for the run of mine. Sized screenings. — An order fixing the prices of sized screenings, effective August 1, 1918, was as follows : 1. Special sizes — passing over a mesh one-half inch in size and over the appli- cable Government mine price for prepared coal at the mine where such screen- ings were produced. 2. Special sizes— passing over a mesh over one-fourth inch and under one- half inch in size, the applicable Government mine price for run-of-mine coal at the mine where such special sizes were produced. 3. Fine sizes — ^from sized coal passing through mesh one-half inch or smaller in size, the applicable Government mine price for standard screenings at the mine where such fine screenings are produced less 30 cents per net ton. 4. If fine screenings or "carbon" passing through one-half inch or vSmaller mesh as the result of producing special-sized screenings are mixed with other coal whether the same be mine run, prepared, or standard screenings, the selling price of the mixture shall not exceed the applicable Government mine price for standard screenings at the mine where such mixture is produced less 30 cents per net ton. Smithing coal.— T'ntil February 15. 1918, smithing coal sold at the prevailing market prices. After that date it sold at the going Government price for prepared sizes of bituminous coal applicable to the mine producing such coal. On April 25, 1918, provisions were made for extra charges for special preparation, packing in bags, or loading into box cars. By order effective June 19, 1918, crushed run-of-mine smithing coal produced by the Sequatchie Coal Co. at its New Etna mines in Marion County, Tenn., was to be sold at $3.80 per net ton f. o. b. cars at such mines plus 50 cents -per net ton if loaded in box cars and plus the actua:i cost of bagging, as provided in the order of April 25, 1918. Export and bunker coal. — Until December 13,- 1917, the prices of coal as fixed by the President and modified by the Fuel Administrator, applied to export and bunker coal. Under order of December 13, 1917, the maximum price of such coal was named as the price at the mine at the time such coal left the mine plus trans- portation charges from the mine to port of lading plus $1.35 per ton of 2,000 pounds. To this price, so computed, the seller of the coal or such other agency as performed the actual work of bunkering or loading the vessel, could add the customary charges for storage, special unloading and other port charges. On February 25, 1918, certain revisions were made in the previous order as tfollowB : 1. No coal can be invoiced at the excess price provided in this order, except by the operator or dealer who actually loads it into foreign vessels, and only after the coal has been so loaded. 2. After, and only after, such excess price has been collected in accordance with paragraph 1, all or such part of it as has been agreed upon beforehand may be paid to the dealer or dealers from or through whom the coal was ob- tained. 3. In -setting the price of coal for foreign bunkering or export purposes, no jobber's margin or other commission in addition to the $1.35 per ton provided in the order shall be added to the price of the coal. 4. The phrase " deliver to vessels for foreign bunkering purposes," mentioned above, is hereby held to mean coal put in the bunkers of any vessel sailing fi-om a tidewater port for any port outside the United States and Alaska, excepting naval vessels or Army transports. 5. Coal shipped to possessions or dependencies of the United States, when consigned to any department of the United States Government, shall not take • the excess price provided by this order. 656 HISTOEY OF PRICES DURIK^G THE WAR. Coal from wagon mines. — Under date of October 6, 1917, regulations were issued for prices of coal delivered direct to tlie consumer from tlie mine by wagon or truck: Coal delivered direct to the consumer from the mine by wagon or truck (whether from wagon mines or other mines) shall be sold at not more than the prices fixed by the President and the Fuel Administrator plus the actual cost of hauling. Coal bought by a railroad for its own use as fuel from a wagon-mine hauling to such railroad shall be sold at not more than the prices fixed by the President and the Fuel Administrator plus the actual cost of hauling. No charge for hauling may be made by an operator of a wagon mine or paid by the purchaser of the coal on coal shipped by rail, except where such ship- ment is made in box cars, in which case an additional charge not to exceed 75 cents per ton may be made. In all other cases the price of wagon-mine coal on board cars shall not exceed the price prescribed by the President and the Fuel Administrator for coal at the mine. The first paragraph of the above ruling was amended on November 10, 1917, to read as follows: Coal sold at a mine to be delivered direct to the customer by wagon or truck may be sold at a price f. o. b. mines to be fixed by the local fuel administration committee in the community in which coal is delivered for consumption, subject to the approval of the State fuel administrator. Such local committee shall also in such cases fix the haulage rates to be charged where the coal is delivered by the mine operator. Specially prepared coal and coal not properly picked or cleaned. — On March 11, 1918, provision was made for the sale of coal not conforming to requirements for preparation : Inspectors are authorized to condemn at the mines any coal loaded in railroad cars which, in their judgment, is not properly prepared, and any inspector find- ing unmerchantable coal shall immediately notify the district representative and the operator by wire or in person and in writing, giving the car numbers and initials of any and all ears so rejected and stating the facts on which such action Avas based. A copy of such notice shall be immediately mailed to the United States Fuel Administration, department of inspection, and to the district repre- sentative. If the district representative approves the inspection report, he shall so notify the operator at once, in which case, unless the operator unloads and reprepares the rejected coal, the consignee shall be permitted to deduct 50 cents per ton from the authorized price for the grade of coal with which the car is loaded : Provided, however, The consig-nee, after examining the coal may, at his option, pay and the operator may receive the full authorized price. This regulation was revoked and a new one established on June 1, 1918 : If any such inspector shall find that any coal is about to be shipped which, in his opinion, does not conform to the requirements of section 1 hereof, said in- spector is hereby authorized to condemn such coal. The district representative, if he approves of such condemnation, shall immediately give notice of his ap- proval to the operator producing such coal, confirming such notice in writing, and thereupon such operator shall have the following options: To take such steps as may be necessary, after unloading the same, if in railroad cars or barges, to make the same conform to the provisions of section 1 hereof to the satisfaction of the inspector condemning the same; or To ship such coal and invoice the same with a deduction of 50 cents per net ton from the applicable Government mine price or from the contract price if such coal has been sold under contract and the contract price differs from said Government price. An increased price was allowed for specially prepared coal in a regulation effective April 1, 1918 : Picl-ed, spiralized, nnd irashed coal. — When coal, in addition to being screened into sizes, has been picked upon tables or loading booms, or has been cleaned by means of spiral or other mechanical separators or washers, in such manner, that the fuel value and the cost of preparation are substantially increased and goverjStmeitt eegulatioe"s eelatuvTG to pkices. 657 tlie total output substantially decreased through removal of waste and impuri- ties, said coal may be sold, but only for shipment loaded on board cars at the mine on or before July 31, 1918, at an increase in price of not to exceed 20 cents per net ton above the applicable Government selling price at the date of ship- ment for the respective grades, defined as " run of mine " and " prepared sizes," that are actually picked, spiralized, or w^ashed, if the producer thereof has, in the manner provided in Sections III and IV of this regu^lation, obtained a temporary permit for making such additional charge. In cases where the above maximum of 20 cents is not sufficient, in the opinion of the United States Fuel Administrator, to compensate for this work a special temporary permit authoriz- ing a larger increase to such amount and under such circumstances as the United States Fuel Administrator may deem proper, may in the discretion of the United States Fuel Admintrator be issued as hereinafter in Sections III and IV provided. This order, too, was revoked and a new one became effective June 1, 1918. Mechanical preparation. — No special allowance will be made for the ordinary method of cleaning or picking coal employed in any district, but a special allow- ance will be made for coal mechanically washed or extraordinarily cleaned or picked in such manner that the fuel value of the coal has been substantially in- creased by the removal of waste and impurities. COKE. The price of coke, under regulations announced November 9, 1917, were to be understood as the maximum price per ton of 2,000 pounds f. o. b. cars at the plant where it was manufactured. GENERAL ORDERS IN REGARD TO COKE. APRIL 1, 1918. That all cases of sale of coke, manufactured east of the 94th meridian, to consumers located west of the 115th meridian, where the seller assumes the responsibility for the quality and delivery of such coke, and extends credit to, and carries the account of, the purchaser in accordance with the usual trade practices, there may be added 5 per cent to the established price of the coke f. o. b. cars at the point of manufacture. APEIL 26, 1918. (1) The maximum price of coke sold and delivered for export to foreign countries, or to a possession or dependency of the United States, shall be the price prescribed for such coke at the ovens at the time such coke left the ovens, plus transportation charges from the ovens to the port of loading, plus 60 cents per ton of 2,000 pounds. (2) To this price, computed as above, the seller of the coke or such other agency as performs the actual work of loading the vessel may add the cus- tomary and proper charges, if any, for unloading from railroad cars into ships, for towing, elevation, trimming, railroad and ship demurrage, and other port charges. (3) The additional 60 cents per ton of 2,000 pounds herein authorized may not be added to the price of coke as figured above where the coke is delivered solely by rail to foreign countries. (4) No coke- shall be sold and delivered for export to foreign countries, or to a dependency or possession of the United States by ocean transportation before the vendor has secured a permit from the United States Fuel Administration authorizing the sale. Applications for such permits should be made to the coke division of the United States Fuel Administration and should contain, first, the name of the consumer and the destination of the coke ; second, the tonnage to be shipped. (5) The 5 per cent provided for in the order of March 26, 1918, for coke manufactured east of the 94th meridian and delivered to customers located west of the 115th meridian, may be added to the established price for all coke ex- ported from the Pacific coast in addition to the 60 cents allowed in this order. Paragraph 4 of this order was revoked on December 19, 1918. 125547°— 20 42 658 HISTORY OF PRICES DURING THE WAR. Beehive coke. — Tlio luaxiimnn pi-iccs for various grades of beehive coke made in the districts west of the INIississippi River, except as modified, were to bear the same ratio to the established price of the coal from which the coke was made as the average contract prices of the same gnules of coke had to the average prices of coal during the years 1912 and 1913. The expression " 72-hour selected foundry coke " was to cover only coke selected in accordance with the usual trade practice for foundry use, and the prices named for 72-hour selected foundry coke were in no case to be charged for any shipments to blast furnaces for smelting iron or other metal. To these base prices, as tabulated, there was to be added the freight rate from the plant where the competing beehive coke was produced, except that tliere should be added, in addition, for coke manufactured in New England, 7 cents for each 5 cents above 60 cents in the freight rate charges per ton (2,240 pounds) of coal for water transportation on the coal used in the manufacture of such coke. District. Beehive coke east of the Mississippi River, base prices Modifications. Alabama: From coal mined iu Black Creek, Brookwood, and Blue Creek districts MauuIactLired by Empire Coal Co. at Empire From coal mined in Big Seam district Coke made from coal mined in the Big Seam district. . New Castle Coal Co United States Cast Iron Pipe & Foundry Co From coal mined from the Nickel Plate seam U.S. C. S. & F. Co., if coke is made from Black Creek coal Coke made from coal mined from the Black Creek, Blue Creek, and Brook wood districts Empire Coal Co Coke made from coal mined in the Nickle Plate district . Empire Coal Co. at Empire Coke made at the plant of the Newcastle Coal Co., at New Castle, JefJerson County Coke made from coal mined from the upper bench of the Big Seam - Coke from washed coal District No. 1 , except the New- castle Coal Co - Prepared sizes above f inch $8. 30 Prepared sizes below ^ inch 6. 00 Breeze 3. 50 Yolande Coal & Coke Co., and District No. 2, except the Empire Coal Co Prepared sizes above f inch $10. 05 Prepared sizes below ^ inch 7. 75 Breeze 4. 38 Newcastle Coal Co. and district No. 3, except the Gulf State Steel Co. at Savre, and the Yolande Coal & CokeCo ." Prepared sizes above | inch §9. 15 Prepared sizes below ^ inch 6. 85 • Breeze 3.93 Empire Coal Co Prepared sizes above J inch $10. 80 Prepared sizes below 5 inch 9. 50 Breeze 5. 23 Gulf State Steel Co. at Sayre Prepared sizes above f inch $9. 80 Prepared sizes below f inch 6. 50 Breeze 4. 25 Colorado Georgia: Durham Coal & Coke Co Walker County Kentucky: Marrowbine Mining Co. at Lookout, Pike County Pike County, except at the plant of the Marrowbine Mining Co Hopkins County Date when effective. Nov. 10,1917 Jan. 30,1918 ....do ....do Feb. 15,1918 ....do ....do Mar. 20,1918 Mar. 30,1918 ....do Feb. 15,1918 Mar. 20,1918 Apr. 15,1918 June 28,1918 Aug. 14,1918 Sept. 3,1918 .do. -do. .do. /Apr. 15,1918 \May 8, 1918 Dec. 31,1917 Feb. 1.5,1918 July 1,1918 July 29,1918 Nov. 18,1918 48-hour blast furnace. $6.00 8.00 8.25 6.75 0.75 7.50 8.50 7.00 8.00 8.25 7.00 72-hour selected foimdry. 8.50 7.00 7.85 10.50 8. 50 8.00 8.75 6.50 7.25 $7.00 8.00 8.25 0.75 6.75 ; 7.50 \ 8.50 I 7.00 , 8.75 8.25 7.00 8.75 8.25 9.50 8.00 9.75 8.85 10. 50 9.50 8.00 8.75 Crushed over 1-inch size. $7.30 8.00 8.25 6.75 7.00 9.80 8.00 7.50 8.25 GOVERNMENT REGULATION'S RELATING TO PRICES. 659 District. Modificat ions — C on tinued New Mexico Oklahoma: McCurtain Coke Co., for coke f. o. b. Panther on the main line of the Fort Smith & Western R . R Howe plant of the Howe-McCartain Coke Co Pennsylvania: Taylor and McCoy at Glen White, Blair Coimty Indiana County: Coke made from -vyashed coal taken exclusively from the lower bench of coal from the upper Fremont seam, if the ash exceeds 10 per cent or if the sulphui' exceeds 0.9 per cent If the ash is less than 10 per cent and the sulphur is less than 0.9 per cent Cambria County Sewanee Fuel & Iron Co., Lone Rock ovens at Tracy City Coalraont Cumberland County Utah. Virginia: Wise and Lee Counties Washington West Virginia: Babcock Coal & Coke Co., Scotia Coal & Coke Co., Fire Creek Coal & Coke Co., all in Fayette County New River district on Chesapeake & Ohio R. R. run- ning from Thurmond north as far as Elmo and on the Chesapeake & Ohio R. R ., and Kanawha, Glen Jean and Eastern Railroads running from Thurmond as far southwest as McDonald Preston Comity Flat Top or Pocahontas district Coke made at Meridan, Barbour County. ■ Tucker County • Kanawha district, Fayette County Nicholas Coimty New River district Marion and Harrison Coimties Barbour and Randolph Counties Preston County ■ Monongalia County Austed • New River district Do Logan County Taylor County Date when effective. Apr. 26, 1918 Feb. 15, 1918 May 13, 1918 Dec. 31, 1917 Mar. 1,1918 do , Mar. 20, 1918 Dee. 31, 1917 Apr. 26,. 1918 June 25, 1918 July 9,1918 May 13,1918 Mar. 30, 1918 Dec. 31, 1917 Feb. 15, Mar. 1, do.. do.. Mar. 20, Mar. 30, do.. Feb. 15, Apr. 26, do.. Mar. 30, Apr. 15, June 25, June 26, July 12, Aug. 14, Nov. 18, 1918 1918 1918 1918 48-hour blast furnace. 73-hour selected foundry. 1918 i 1918 1918 1918 1918 1918 1918 1918 1918 S8..50 10.75 10.75 8.50 7.25 8.25 7.25 7.25 8.50 7.25 10.00 8.00 6.75 8.00 6.75 7.00 6.50 7.75 8.00 6.25 6.75 6.75 6.25 7.00 8.00 8.00 6.75 6.75 Crushed over 1-inch size. $9. 50 1L75 1L75 8.50 8.25 8.25 8.25 8.25 9.50 8.25 11.00 8.00 7.75 8.00 7.75 8.00 7.50 7.75 8.00 7.25 7.75 7.75 7.25 8.00 8.00 7.75 7.75 $8.00 1 Any grade. Note.— The following classifications and prices were announced July 8, 1918: The maximum price for crushed coke over J-inch size shall be the maximum price for 72-hour selected foimdry coke, plus 30 cents. *" , ^ ,.,-.„,», i The maximum price for all prepared sizes of clean dry screened coke under f-mch size shall be 851 less than the price for blast-furnace coke made at beehive ovens where such coke is produced. The maximum price for breeze shall be one-half the price established for blast-furnace coke made m beehive ovens where such breeze is produced. j ^ , The maximum price for mixed sizes of properly screened and cleaned beehive or by-product coke, suitable for domestic purposes, shall be %l less than the maximum Government price for selected foundry coke, f. o. b. cars at the same point, effective July 25, 1918. This was modified on Sept. 30, 1918, and all coke as described above and reclaimed from accumulated breeze piles shall be 15.50. BY-PRODUCT COKE. District. By-products coke, base prices Nov. 19, 1917 Date when effective. Mar. 20, 1918 Sept. 1, 1918 do Modifications. Alabama: Coke madef rom coal mined in the Nickel Plate district. From washed coal All by-product coke made in Alabama Prepared sizes above | inch $8. 25 Prepared sizes below | inch 6. 75 Breeze 3.88 Tennessee: Chattanooga Mar. 1, 1918 Washington Mar. 30, 1918 Run of oven. $6.00 7.00 5.70 7.75 8.25 10.00 Selected foundry. $7.00 7.00 6.70 8.75 9.25 11.00 Crushed over 1 inch in size. S6.50 8.75 660 HISTORY or PRICES DURING THE WAR. Order of July S, 1918. The niaxinuiin price for crushed coke over 3-inch sizes, produced by any by- product oven plant, was to be the maximum price for run of oven colce, plus 50 cents. The maximum price for all prepared sizes of clean dry screened coke under 3-inch size, was to be .$1 per ton less than the Government price for run of oven coke made in by-product ovens where such coke was produced. The maximum price of breeze was to be one-half the Government price for run of oven coke made in by-product ovens where such coke was produced. Order of July 24, 1918. The maxinmm price for mixed sizes of properly screened and cleaned by- jn-oduct coke suitable for domestic purposes, Avas to be $1 less than the maxi- mum Government price for selected foundry coke f. o. b. cars at the same point. Order of September 1, 1918. Thirty cents was thereafter to be deducted from all prices for by-product coke as previously published, except in the State of Washington. Gas coke. — Under the original orders regulating the sale of coke, the maxi- mum price of gas coke sold for industrial or metallurgical use was to be as that of the Government price for the corresponding grade of coke produced iu by-product ovens. Gas coke sold for household purposes was to be sold at the Government price established for anthracite coal in the same locality. On July 8 an order was issued for more definite control of gas coke prices. district. Date when effective. Base price. July 9,1918 do ....do ....do Aug. 1,1918 do ....do ....do Localities whore anthracite coal is not obtainable: Run of retorts Screened above j|-inch size Screened and sized about J-inch size , Screened and sized between § and f inch Run of retorts Screened above -3 -inch size Prepared sizes above 3-inch size Prepared sizes below f-inch size Colorado, except at Colorado Springs: Run of retorts Screened over J inch Prepared sizes above f-inch .*. ' do Prepared sizes below 3-inch " 1 do Run of retort Nov. 27, 1918 Run of retort, screened over 3-inch screen do Prepared sizes above 3-inch ! do Prepared sizes below f-inch L .'. . .do Colorado Springs ! Indiana, at Rvansville: Run of retort Nov. -1, 1918 Run of retort, screened over 3-inch screen ' Prepared sizes above |-inch ' Prepared sizes below 3-ineh | Sept. 30,1918 do «5. .50 6.00 6.50 4.50 5.50 fl. 00 6.50 4.50 5.50 6.00 6.50 4.50 6.00 6.50 7.00 5.00 (') 7.45 7.95 8.45 6.45 I Prices as scheduled, plus 50 cents per ton. Where anthracite coal was obtainable, Ihe maximum prices of various grades of gas coke were to be as follows : Screened and sized above f inch, the same price as that established for stove anthracite in the same locality. Run of retorts screened about f inch, 25 cents less than the price of stove anthracite. Run of retorts not screened, 75 cents less than the price of stove anthracite. The maximum price of breeze was to be one-half the Government price for run of retorts coke unscreened, made in gas retorts where such breeze was pro- duced. GOVERNMENT REGULATIONS RELATING TO PRICES. 661 An order of August 1, 1918, superseding tlie above, provided that the maxi- mum price for screened and sized above f inch should be the same as the Government price for the stove anthracite f. o. b. cars at the mines in that district, vfhich took the lowest freight rate to the plant where the coke was produced, plus that freight rate. Other grades were priced as before, with the addition of said freight rate. CHARCOAL. Commodity. Lump in bulk Lump in bags Screenings in bags. Date when effective. July 9, 191S do do Price per bushel. Cents. 30 32 20 Note.— These prices are per bushel of 20 pounds f. o. b. cars at point of shipment. An order of August 13, 1918, permitted the completion, at the contract price, of contracts for the sale of charcoal, entered into prior to July 8, 1918. JOBBERS' MARGINS AND DISTRIBUTORS' COMMISSIONS. An Executive order of the President of August 23, 1917, established the first margins for jobbers along with the President's prices for anthracite coal: The following regulations shall apply to the intrastate, interstate, and for- eign commerce of the United States, and the prices and margins referred to herein shall be in force pending further investigation or determination thereof by the President. jobbers' margins. 1. A coal jobber is defined as a person (or other agency) who purchases and resells coal to coal dealers or to consumers without physically handling it on, over, or through his own vehicle, dock, trestle, or yard. 2. For the buying and selling of bituminous coal a jobber shall not add to his purchase price a gross margin in excess of 15 cents per ton of 2,000 pounds, nor shall the combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of bituminous coal exceed 15 cents per ton of 2,000 pounds. 3. For buying and selling anthracite coal a jobber shall not add to his pur- chase price a gross margin in excess of 20 cents per ton of 2,240 pounds when delivery of such coal is effected at or east of Buffalo. For buying or selling anthracite coal for delivery west of Buffalo a jobber shall not add to his pur- chase price a gross margin in excess of 30 cents per ton of 2,240 pounds. The combined gross margins of any number of jobbers who buy and sell a given shipment or shipments of anthracite coal for delivery at or east of Buffalo shall not exceed 20 cents per ton of 2,240 pounds, nor shall such com- bined margins exceed 30 cents per ton of 2,240 pounds for the delivery of anthracite coal west of Buffalo ; provided that a jobber's gross margin realized on a given shipment or shipments of anthracite coal may be increased by not more than 5 cents per ton of 2,240 pounds when the jobber incurs the expense of rescreening it at Atlantic or lake ports for transshipment by water. Additional regulations were announced by the United States Fuel Adminis-. tration on October 6, 1917. REGULATIONS CONCERNING JOBBERS. Operators who maintain their own sales department, whether in their own name or under a separate name, and dispose of coal directly to the dealer or consumer shall not charge any jobber's commission. A jobber must be entirely independent of the operator in fact as well as in name in order to be entitled to charge a jobber's commission. Free coal shipped from the mines subsequent to the promulgation of the President's order fixing the price for such coal shall reach the dealer at not 662 HISTORY OF PRICES DURING THE WAK. more than the price tised by the Pres^iiileiU's order plus only the prescribed jobbers' commission (if the coal has been purchased through a jobber) aud transportation charges. A jobber who had already contracted to buy coal at the time of the Presi- dent's order fixing tlie price of sucli coal and who was at that time already under contract to sell tlie same may till his contract to sell at the price named therein. A jobber who at the time of the President's order fixing the price of the coal in ■ question at the mine had contracted to buy coal at or below the President's price and at that time had no contract to sell such coal shall not sell the same at a price higher than the purchase price plus the proper jobber's commission as determineil by the President's regulation of August 23, 1917. A jobber who at the time of the President's order fixing the price of the coal in question was under contract to deliver such coal at a price higher than a price represented by the price fixed by the President or the Fuel Adminis- trator for such coal plus a proper jobber's commission as determined by the President's regulation of August 23, 1917, shall not fill such contract with coal purchased after the President's order became effective and not contracted for prior thereto at a price in excess of the President's price plus the proper jobber's connnission. A jobber who at the date of the President's order fixing the price of the coal in question held a contract for the purchase of coal without having already sold or contracted to sell such coal shall not sell such coal at more than the price fixed by the President or the Fuel Administrator for the sale of such coal after the date of such order plus the jobber's commission as fixed by the President's regulation of August 28, 1917. Every jobb(>r of coal or coke in the United States shall file with the Federal Trade Connnission, Washington. D. C, on or before October 2-5, 1917. a state- ment showing (1) his name: (2) post-office address; (3) date of the establish- ment of his business; (4) names of stockholders, members, and partners of the jobbing concern; (5) financial interests of stockholders, members, and partners of the jobbing concern in any mine producing coal. Any jobbing concern which may be established after the issuance of this regulation shall immediately upon its organization file a similar statement with the Federal Trade Commission.'' On March 15, 1918, the President issued a proclamation licensing all persons engaged in the business of distributing coal and coke except those exempted by Congress. Licenses were requiretl by April 1, 1918, and licenses included job- bers, brokers, selling agents, purchasing agents, wholesalers or dealers in any capacity. A license board M^as appointed by the Fuel Administration, and regulations governing licenses were elfective April 1, 1918.^ RETAIL PRICES. Local committees were organized for determining the proper basis for sales by retail dealers. Retail gross margins were established by the Fuel Administrator on October 1, 1917. On and after the 1st day of October, 1917, in making prices and sales to consumer, the retail gross margin (as hereinafter defined) added by any retail dealer to the average cost (determined as hereinafter provided) of any size or grade of coal or coke for each class of business shall not exceed the average gross margin added by such dealer for the same size or grade for each class of business during the calendar year 191.5. plus 30 per cent of said retail gross margin for the calendar year 1915 : Provided, however. That the retail gross margin added by any retail dealer shall in no case exceed the average added by such dealer for the same size, grade, and class of business during .Tuly, 1917. By this oi'der retailers are required to fix a retail gross margin which may ^ Modifications of those regulations issued from time to time appear in pp. 444-451; of the General Orders, Regulations, and Rulings of the Fuel Administration. 2 General Orders, Regulations, aud Rulings of the Fuel Administration, pp. 452—467. GOVEKNMENT REGULATIONS EELATinSTG TO PRICES. 663 be less than but shall not in any instance exceed the margin added by them iu 1915 plus 30 per cent thereof. Definition of retail gross margin. — The retail gross margins of the diftereat classes of retail coal and coke dealers are defined as : (1) The difference between the price charged by a retail coal or coke dealer to consumers and the average cost of coal or coke to such retailer, free on board railroad cars at his railroad siding, yard, pocket, or trestle, when such coal or coke is received by him by rail. (2) The difference between the price charged by a retail coal or coke dealer to consumers and the average cost of coal or coke to such retailer free along- side his wharf, pocket, or water yard, when such coal or coke is received by him bj^ water. (3) The difference between the price charged by a retail coal or coke dealer to consumers and the average cost of coal or coke to such retailer at whole- salers' pockets, trestles, railroad sidings, mines, tipples, dumps, docks, yards, or wharves/ PETROLEUM. There wiis never any Government regulation of i>etroleum prices, but those prices were stabilized through the cooperation of the Petroleum War Service Committee with the Oil Division of the Fuel Administration, The chief of the oil division in a letter to the chairman of the War Industries Board, under date of April 25, 1918, made the following statement : <* " The petroleum war service committee, as a result of an extended conference with me on the subject of prices, have requested that prices of petroleum prod- ucts be fixed^in the same way that steel prices were fixed. If this be done, it will greatly simplify the matter of allocation of purchases." " The matter was referred to the price-fixing committee and some discussion of it appears in the minutes of the price-fixing committee for July 15, 1918, but no action was ever taken.* The petroleum war service committee finally worked out a stabilization policy acceptable to the oil division. This plan of August, 1918, was effective on contracts entered into after May 17, 1918, and was to continue in force until November 1, 1918, or thereafter. This plan applied to certain petroleum producing districts : For the Appalachian division: 1. That the large purchasing companies con- tinue to purchase crude oil at their posted market price, and that all other purchasers who now pay a premium for crude oil be hereafter permitted to pay a premium not to exceed 10 cents per barrel above the posted prices for the various grades of ci'ude oil. 2. That all producers are requested to make monthly sales of their crude oil. The Mid-continent division : 1. That the large purchasing companies continue to purchase crude oil at their posted price in the Mid-continent field, and that all other purchasers who now pay a premium for crude oil be permitted hereafter to pay up to a maximum premium above posted market prices as follows : For Gushing crude, a maximum premium of 75 cents per barrel. For Yale and Inay, a maximum premium of 50 cents per barrel. For Garber crude, a maximum premium of $1.50 per barrel. For Billings crude, a maximum premium of 75 cents per barrel. For Kay County crude, a maximum premium of 75 cents per barrel. For Healdon crude, a maximum premium of 30 cents per barrel. For all other crudes for the whole Mid-continent division, including Kansas, Oklahoma, and northern Texas, a maximum premium not to exceed 25 cents per barrel with the strict understanding that in no district in which premiums are being paid of less than 25 cents per barrel, will the United States Fuel Administrator permit the paying of a higher premium than is now in effect. 1 Detailed regulations appear in pp. 199-204 of the General Orders, Rules, and Regulations. 2 Minutes of War Industries Board and letter in correspondence files. 3 Minutes of price-fixing committee, Vol, VI, July 15, 1918. 664 HISTOEY OF PRICES DURIIsTG THE WAR. Gulf coast and noi-thern Louisiana division : 1. That the large purchasing companies in the Gulf coast territory he requested to estahlish a posted price for crude oil effective as of August 1, 1918, of $1.80 per barrel, and continue to pav said price until November, 1918; and tliat a maximum premium be es- tablished above the posted price of 10 cents per barrel, with the strict under- standing that in no district in which premiums are l>eing paid of less than 10 cents per barrel, will the United States Fuel Administrator permit the paying of a higher premium than is nuw in effect. 2. That the large purchasing companies establish a differential of 25 cents per barrel below the posted price of Gulf coast oil for northern Louisiana heavy oil below 32d. gravity, and that a premium of 10 cents per barrel be permitted on this grade of oil ;' that on light crude oil a premium of 25 cents per barrel be permitted, with the strict understanding that in no case where premiums of less than 10 cents and 25 cents per barrel, respectively, have been paid, will the P\iel Administrator permit the paying of higher premiums than are now in effect.' The Fuel Administrator fixed the price of certain petroleum products to pur- chasing agents of allied Governments on purchases from May 20, 1918, to July 19, 1918 : F. O. B. GULF PORTS. Fuel oil, British Admiralty specifications, 150 Abel flasli Fuel oil, United States Navy specifications Standard white refined l^erosene, 135 fire test, minimum gravity 44° Baum6 . Gasoline, United States Navy specifications Aviation naphtha, British specifications, 302° F. final boiling point F. O. B. NORFOLK, BALTIMORE, PHILADELPHIA, AND NEW YORK. Fuel oil. United States Navy specifications Standard white refined kerosene, 135 fire test, minimum gravity 44° Baum6. Gasoline, United States Navy specifications Aviation naphtha, British specifications, 302° F. final boiling point Mexican reduced oil, 14/16 gravity for bunker purposes 7.50 8.25 23.50 32.00 6.00 4. METALS AND METAL PRODUCTS. The formal fixing of maximum prices in tliis group began on September 21, 1917, when the price of copper was fixed by the War Industries Board. Fol- lowing this date price fixing was extended, first, by the War Industries Board, and after April, 1918, by the price-fixing committee, to cover other metals and their products. A detailed summary of the Government regulations pertaining to the fixed price of aluminum, copper, iron, and steel, lead, manganese ore, nickel, platinum, quicksilver, silver, and zinc is presented in the following schedules : ALUMINUM. In the fall of 1917 the Aluminum Co. of America agreed to accept direct and indirect Government orders at the current price of 30 cents, base. If the price were fixed later at a lower point, the United States Government would receive the difference between this contract price and the fixed price. On March 2, 1918, the War Industries Board and the producers agreed upon a maximum base price of 32 cents per pound f. o. b. United States producing plant for 50 tons and over of ingot of 98 to 99 per cent. The conditions accompanying the agreement were: First, the producers of aluminum will not reduce the wages now being paid; second, aluminum shall be sold to the public in the United States and to the Allies at the United States Government price; third, they will take the necessary measures, under the direction of the War Industries Board, for the distribution of aluminum to prevent it from falling into the hands of speculators who might increase the price to the public; and, fourth, they will pledge themselves to exert every effort necessary to keep up the production of aluminum so as to insure an adequate supply so long as the war lasts. After an investigation by the price-fixing committee and the Federal Trade Commission of the costs of producing aluminum, the following announcement was made on May 28, 1918 : The President has approved an agreement made between the producers of aluminum and the price-fixing committee of the War Industries Board (after investigations by this committee in conjunction with the Federal Trade Com- mission as to the cost of production) that the new maximum base price for aluminum, effective June 1, 1918, to September 1, 1918, shall be 33 cents per pound f. 0. b. United States producing plants, for 50 tons and over, of ingot | of 98 to 99 per cent. Differentials for sheet, rod, and wire will be increased by approximately 12^ per cent ; differentials for alloys will remain as here- tofore, i. e., those approved by the price-fixing committee of the War Industries] Board on March 3, 1918. The new prices will be effective on deliveries made during the period from June 1. 1918, to September 1,' 1918, on contracts made during said period; and furthermore, the new prices will be effective on deliveries made during said period on existing contracts which specify that the price shall be that in force at the time of delivery. Deliveries made during the period June 1, 1918, to September 1, 1918, on other contracts shall be at the price stated in such contracts, except that on existing " direct and indirect Government contracts " containing a provision that refund is to be made of the difference between the price stated in the contract and the " Government fixed price, if, as, and when I Quoted from the Plan to Stabilize Prices and Maintain Uninterrupted Plow of Crude, issued by the national petroleum war service committee, New York City, Aug. 18, 1918. 665 666 HISTORY OF PRICES DURING THE WAR. made," such difference shall be refunded on deliveries made during the period from June 1, 1918, to September 1, 1918, on presentation of proper proof that the purchasing Government gets the benefit of the refund. The conditions are as formerly : First, the producers of aluminum will not reduce the wages now being paid ; second, aluminum shall be .sold to the United States Government, ^o the public in the United States, and to the allied governments at the same maximum base price; third, they will take the neces- sary measures, under the direction of the War Industries Board, for the distribution of aluminum to prevent it from falling into the hands of specu- lators who might increase the price to the public; and, fourth, they will pledge themselves to exert every effort necessary to keep up the production of aluminum so as to insure an adequate supply so long as the war lasts. The prices of June 1, 1918, were continued on September 1, 1918, and re- mained effective until March 1, 1919. The following prices represent the ofhcial scheduled issued by the nonferrous metals section of the War Industries Board: ALUMINUM. [Prices in cents per poimd.] 98 per cent grade 94 per cent grade 98 per cent grade (srannlated). 94 per cent (granulated) . . No. 12 alloy Ingot. Mar. 6-May 31, 1918. 1-ton lots. 32.20 31.40 32.40 31.60 32.40 15-ton lots. 32.10 31.30 32.30 31.50 32.30 50-ton lots. 32.00 31.20 32.20 31.40 32. 20 June 1, 1918-Mar. 1, 1919. 1-ton lots. 33.20 32.40 33. 40 32.60 33.40 1.5-ton lots. 33. 10 32.30 33.30 32.50 33.30 .50-ton lots. 33.00 32.20 33.20 32.40 33.20 r. 0. b. producing plant (extras): Cents per pound. For guaranteed 99 per cent (above the price of 98 per cent) 20 For shipment from warehouse (plus freight from producing plant) 50 For 500 pounds to 1,999 pounds 1 For 50 pounds to 499 pounds 3 For less than 50 pounds 5 FLAT SHEET. [Prices in cents per pound.] Mar. 6-May 31, 1918. June 1, 1918-Mar. 1, 1919. Gauge. 1-ton lots. 15-ton lots. 50-ton lots. 1-ton lots. 15-ton lots. 50-ton lots. 40.40 41. 40 43. 40 45.40 48.40 46.40 48. 40 47.40 50.40 49.40 52.40 52.40 56.40 54.40 40.20 41.20 43.20 45. 20 48.20 46.20 48.20 47.20 50.20 49.20 52.20 52.20 56. 20 54.20 40.00 41. 00 43.00 45.00 48.00 46.00 48.00 47.00 50.00 49.00 52.00 52.00 56.00 54.00 42.40 43.50 45. 80 48.00 51.40 49.20 51.40 50.30 53.70 52.50 65.90 5.5.90 60.40 58.20 42.20 43.30 45.60 47.80 51.20 49.00 51.20 50.10 53.50 52.30 55. 70 55.70 60.20 58.00 42.00 Nos 19 and 20, ,3 to 60 inches 43.10 (3 to 30 inches Nos. 21 to 24, inclusive! 30 to 4-8 inches 148 to 60 inches »T «. T n-fS to 30Lncbes 4.5. 40 47.60 51.00 48.80 Nos. 25 and 26|^o^°^^^8^j^^]^^ " " ; ; 51.00 49.90 JN 0. z/'i 3Q (0 48 inches 53.30 ■NT oqJ'^ to 30 inches 52.10 '^°- -^^30 to 48 inches kT on f 3 to 30 inches 55. ,50 55.50 N°- 29(30 to 48 toches ..:::.:.:::::..:::; 60.00 No 30, 3 to SOinclies . ... 57.80 F. o, b. Producing plant (extra): For guaranteed 99 per cent For shipment from warehouse (plus freight from producing plant). For 600 pounds to 1,999 pounds For 50 pounds to 499 pounds For loss than 50 pounds Per pound. $0.20 1.00 01 03 05 Note.— Grades 3S and 98 per cent. GOVEElSiMElSrT KEGULATIONS RELATIIsTG TO PRICES. 667 FLAT SHEET CIRCLES. Nos. 18 Nos. 19 Nos. 21 Nos. 25 No. 27. No. 28. No. 29. No. 30, and heavier, 3 to 60 inches, and 20, 3 to 60 inches - (3 to 30 inches. 3<^30to' and 26. to 24, inelusive<^30to 48 inches. (48 to 60 inches. p to 30 inches.. • "ISO to 48 inches. /3 to 30 inches.. \30 to 48 inches - /3 to 30 inches-. ••• \30 to 48 inches. /3 to 30 inches.. \30 to 48 inclies . 3 to 30 inches 42.40 43.40 45.40 47.40 50.40 48.40 50. 40' 49.40 52.40 51.40 54.40 54.40 58.40 56.40 42.20 43.20 45.20 47.20 50.20 48.20 50.20 49.20 62.20 61.20. 64.20 54.20 68.20 56.20 42.00 43.00 45.00 47.00 50.00 48.00 50.00 49.00 52.00 51.00 64.00 54.00 58.00 66.00 44.70 45.80 48.00 60.30 53.70 51.40 53.70 52.50 55.90 54.80 68.20 68.20 62.70 60.40 44.50 45 60 47.80 50.10 53.50 61.20 53.50 52.30 65.70 54.60 58.00 58.00 62.50 60.20 41.30 45.40 47.60 49.90 53.30 51.00 53.30 52.10 55.50 54.40 57.80 67.80 62.30 60.00 F. o. b. producing- plant (extras) : Per pound. For guaranteed 99 per cent .^0.20 For shipment from warehouse (plus freight from producing plant) 1. 00 For 500 pounds to 1,999 pounds . 01 For 50 pounds to 499 pounds . 03 For less than 50 pounds ,05 Note. — Grades 38 and 98 per cent. 17-L. FLAT SHEET. Nos. 18 and heavier, 3 to 40 inches Nos. 19 and 20, 3 to 24 inches Nos. 21 to 24, inchisive, 3 to 24 inches . Nos. 25 and 26, 3 to 24 inches No. 27, 3 to 24 inches , No. 28, 3 to 24 inches , No. 29, 3 to 24 inches , No. 30, 3 to 24 inclies 59.40 60.40 62.40 65.40 66.40 68.40 71.40 73.40 59.20 60.20 62.20 66.20 66.20 68.20 71.20 73.20 69.00 60.00 62.00 65.00 66.00 68.00 71.00 73.00 63.80 64.90 67.20 70.50 71.70 73.90 77.30 79.50 63.60 64.70 67.00 70.30 71.50 73.70 77.10 79.30 63.40 64.50 66.80 70.10 71.30 73.50 76.90 79.10 F. o. b. producing plant (extras) : Per pound. For shipment from warehouse (plus freight from producing plant) $1. 00 For 500 pounds to 1,990 pounds__ . 01 For 50 pounds to 499 pounds . 03 For less than 50 pounds . 05 Note. — These prices include tempering. If untempered sheet is ordered, deduct 6 cents from above prices. COILED SHEET. Gauge. Mar. 6-May31, 1918. 1-ton lots. • 15-ton lots. 50-ton lots. June 1, 191S-Mar. 1, 1919. 1-ton lots. 15-ton lots. 50-ton lots. Nos. 12 Nos. 18 Nos. 21 Nos. 23 No. 25, No. 26, Nos. 27 Nos. 29 Nos. 31 No. 33, to 17, 3 to 18 inclies... to 20, 3 to 16 inches- . . and 22, 3 to 15 inches . and 24, 3 to 14 inches - 3 to 13 inches ... 3 to 13 inches and 28, 3 to 12 inches . and 30, 3 to 12 inches, and 32, 3 to 12 inches . 3 to 12 inches $37. 40 $37.20 S37. 00 $39. 00 S38. 80 S38. 60 -.; 38.40 38.20 38.00 40.20 40.00 ' 39.80 ! 39.40 39.20 39.00 41.30 41.10 40.90 I 41.40 41.20 41.00 43.60 43.30 43.10 4.3.40 43.20 43.00' 45.80 45.60 45.40 I 45.40 45.20 45.00 48.00 ■:7.80 47.60 5. b. producing plant (extras) : Poi- pound For guaranteed 99 per cent ^o 26 For shipment from warehouse (plus freight from producing plant) I 1 00 For 500 pounds to 1,999 pound.s ." 01 For 50 pounds to 499 pounds '. 03 For less than 50 pounds .05 F. Note. — Grades .SS and 98 per cent. Coiled sheet wider than th limits of equipment) takes the price of flat sheet of the same gauge above (if within the xnd width. 668 HISTORY OF PRICES DCTRING THE WAR. COILED SHEET CIRCLES. Nos. 12 Nos. 18 Nos. 21 Nos. 23 No. 25, No. 26, Nos. 27 Nos. 29 Nos. 31 No. 33, to 17, 3 to 18 inches \] to 20, 3 to 16 inches and 22, 3 to 15 inches \\ $39. 40 and 24, 3 to 14 inches j | 3 to 13 inches 3 to 13 inches and 28, 3 to 12 inches and 30, 3 to 12 inches and 32, 3 to 12 inches 3 to 12 inches 40.40 41.40 43.40 45.40 47.40 839.20 S39.00 841.30 $11.10 40.20 40.00 42.40 42.20 41.20 41.00 43.50 43.30 43.20 43.00 45.80 45.60 45.20 45.00 48.00 47.80 47.20 47.00 50.30 50.10 $!0. 90 42.00 43.10 45.40 47.60 49. 90 F. o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent $0. 20 For shipment from warehouse (plus freight from producing plant) 1.00 For 500 pounds to 1,999 pounds .01 For 50 pounds to 499 pounds .03 For less than 50 pounds , .05 Note. — Grades 3S and 98 per cent. Coiled sheet circles wider than the above (if within the limits of equipment) take the price of flat sheet circles of the same gauge and diameter. WIRE. Gauge. Spools (pounds) . Mar. 6 to May 31, 1918. June 1, Mar. 1 1918, to , 1919. On spools. In coils. On spools. In coils. 50 50 •35 20 20 10 10 10 10 5 or 2 5 or 2 5 or 2 1 1 i $0.44 .47 .50 .57 .63 .75 .84 .96 1.08 1.29 1.49 1.74 2.09 2.49 3.44 4.49 $0,415 .44 .465 .515 .565 . .665 .74 .84 .94 $0. 465 .499 .533 .611 .689 .714 .815 1.050 1.1S5 1.421 1.646 1.928 2.321 2.771 3.840 5.021 $0. 437 Nos. 11 and 12 .465 Nos. 13 and 14 ; .493 Nos 15 and 16 .549 Nos. 17 and 18 .606 Nos. 1 9 and 20 .718 No. 21 .803 No 22 . .915 No. 23 1.028 No 24 No 25 No 26 No 27 No. 28 No. 29 - No 30 F. o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent $0. 20 For shipment from wai^house (plus freight from producing plant) 1.00 zzziiiiiizziiiizzirmiiiiiiiiiiiii . 03 . 05 . 05 For 500 pounds to 1,999 pounds- For 50 pounds to 499 pounds For less than 50 pounds Straightened and cut to length __ Note. — Grade 98 per cent. STEEL METALLURGY ROD. [Prices in cents per pou nd.] Mar. 6-May 31, 1918. June 1-Mar. 1, 1919. 1-ton lots. 15-ton lots. 50-ton lots. 1-ton lots. 15-ton lots. 50-ton lots. 1 inch, 98 to 99 per cent rolled 33.20 32.40 33.10 32.30 33.00 33.20 34.30 33.40 34.20 33.30 34.10 1 inch, 94 to 98 per cent rolled 33.20 o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent (above the price of 98 per cent) $0. 20 For shipmejit from warehouse (plus freight from producing plant) 1. 00 For 500 pounds to 1,099 pounds . 01 For 50 pounds to 499 pounds . 03 For less than 50 pounds • — . 05 GOVERNMENT EEGULATIONS RELATING TO PEICES. 669 ROD. Mar. 6-May 31, 1918. June 1, 1918- Mar. 1, 1919. f to I inch, 98 per cent rolled and drawn I to 1 inch, advancing by 32ds 1 to 2f inches, advancing by 16ths [-98 per cent rolled. 2f to Si inches, advancing by 8ths S40. 00 41.00 S48. 80 43.10 F. o. b. producing plant (extras) : Per pound. For guaranteed 99 per cent $0. 20 For shipment from warehouse (plus freight from producing plant) 1.00 For SOU pounds to 1,999 pounds . 01 For 50 pounds to 499 pounds . 03 For less than 50 pounds . 05 Note. — Price includes straightening and cutting to length. COPPER. At the request of the President, the War Industries Board on September 21, 1917, in conference with the producers of copper, fixed the maximum price of copper at 23.5 cents per pound. This price was made to apply to sale of copper to the United States and allied Governments and to the American public. The agreement was subject to the follov/ing conditions : First, that the pro- ducers of copper will not reduce the wages now being paid ; second, that they will sell to the United States Government, to the public in the United States, and to the allied Governments at not above the maximum price ; third, that they will take the necessary measures, under the direction of the War Industries Board, for the distribution of copper to prevent it from falling into the hands of speculators, M-ho might increase the price to the public ; and fourth, that they will pledge themselves to exert every effort necessary to keep up the production of copper so as to insure an adequate supply so long as the war lasts. The following summary table indicates the changes in the fixed price of cop- per made from time to time by the War Industries Board and the dates at which those changes were made : Price per pound (cents). Date when effective. Date oi revision. 23.5 September 21, 1917 . . January 23, 1918. June 1, 1918. 23.5 January 23, 1918 23.5 Junel, 1918 August 15. 1918. Do. 261 July 2, 1918 26 2 August 15, 1918 November 1 1918 26 . . . .... Nnvp.mhfir !. 1918 January 1, 1919. » «r ' F. o. b. ears or lighters at refinery if shipped from eastern refineries; f. o. b. New York if shipped from western refineries. 2 P. 0. b. cars or lighters at eastern refineries; f. o. b. ears or lighters at Pacific coast refineries for Pacific coast destinations; f. o. b. cars or lighters New York if shipped to eastern or interior destinations frcm Pacific coast refineries or from refineries in the interior of tlie United States. s Price control was discontinued on this date. On June 5, 1918, a schedule of differentials was announced. The schedule follows : , . DifferentiaU of June 5, 1918. Listed rectangular cakes : 801 to 1,500 pounds $3. 50 1,501 to 3,300 pounds 4. 50 3,301 to 4,800 pounds 6.00 Bowl cakes 3. 00 Ingots . 1. 00 Round cakes 3. 00 Slabs .$1. 50 Wire bars, 300 to 500 pounds 2. 50 Wedge bars or cakes 3. 50 Billets : 4 and 5 15. 00 6 12. 00 7 and 8 10.00 These differentials were recommended by the nonferrous metals section of the War Industries Board and approved by price-fixing committee. 670 HISTORY OF PRICES DURING THE WAR. IRON AND STEEL. The first price agreement between the War Industries Board and representa- tives of the iron and steel industry was announced on September 24, 1917. Maximum prices of iron ore, coke, pig iron, steel bars, shapes, and plates were in that agreement fixed to become immediately effective and to be subject to revision on January 1, 1918. On October 11 and again on November 5. 1917. schedules of ])asie maximum prices on additional intermeiliate and finished iron ami steel products werc^ announced. Maximum prices of other products in this group became effective with the issue of schedules on November 13, November 20, and December 22, 1917, and on January 7, 1918. The prices of all iron and steel products not specifically mentioned in these schedules were to be fixed by the industry in conformity with those already announced. These price schedules carried with them the following stipulations: First, there shall be no reduction in the current rate of wages ; second, the fixed prices shall apply to purchases by the United States and Allied Governments and by the American public; and, third, every effort shall be exerted by the industry to maintain a high level of production. ^XJast-steel slugs. — On September 25, 1918. a maximum price of IJ cents per pound f. 0. b. Pittsburgh was announced for cast steel slugs. This price continued until December 31, 1918. Steel rails. — On December 3, 1918, the price-fixing committee fixed the fol- lowing prices for steel rails to apply to orders placed by the War and Navy Departments : Bessemer rails, $55 per gross ton f. o. b. mill. Basic rails, $57 per gross ton f. o. b. mill. These prices pertained to contracts already made by War and Navy Depart- ments and were not to affect contracts made subsequent to December 3, 1918. The price schedules below include all original base prices and all changes in base prices as issued by the American Iron and Steel Institute in January, August, and November, 1918. All schedules of differentials, extras, discounts from published lists, classifications, and announcements by the committee on steel and steel products of the Iron and Steel Institute are not here included, but they can be found in the pamphlets issued by the American Iron and Steel Insti- tute in January. August, and November, 1918. Commodity. Date or period. Price fixed. • Iron ore - »: Lower Lake ports. $5.05 per gross ton. $0.45 per ton additional. $0.25 per ton additional. Increases are due to increased freight rates, and are subject to cliange with further changes in freight rates. S6 per net ton. $33 per gross ton, f. o. b. furnace. $34 per gross ton. $33 per gross ton, f . o. b. furnace. $32 per gross ton, f. o. b. furnace. $33 per gross ton. $32.50 per gross ton. Mesabi Range, non-Bessemer Sept. 24, 1917 July 1, 1918 Oct. 1,1918 ■ Sept. 24, 1917 do Do Do Coke, Connellsville Pig iron: No. 2 foundry Basic Oct. 1, 1918 Sept. 24, 1917 Apr. 1, 1918 Oct. 1, 1918 do Standard Bessemer €lianges in basing points do Viiginia, Tennessee, and Birmingtiam districts and tlie scattering districts south of the Ohio and Potomac Eivers. including furnaces at St. Louis but not those bordering on tho Ohio River. Eastern district; i. e., from all blast fur- F. 0. b. Birmingham. F. 0. b. Pittsburgh. F. 0. b. furnace. naces located' east' of the Alleghany Mountains and north of tho Potomac River. From all other producing districts or furnaces. GOVEKNMEjSTT REGULATIOlSrS EELATING TO PRICES. 671 Commodity. Date or period. Price fixed. Iron and steel scrap No. 1 heavy melting scrap Do No. 1 railroad wrougiit Cast-iron borings and macliine-sliop turnings . Iron products: Iron bars, base sizes Cast-iron water pipe, 6-inch and larger, class B or heavier. Nov. S, 1917 Apr. 1,1918 Nov. 5,1917 do Nov. 13,1917 Dec. 22,1917 Rolled tie plates Iron . .'. Steel (see Steel products). Standard railroad spikes : . Iron Steel products: Blooms, billets, slabs, and sheet bars. Oct. Dec. June Oct. Dee. June Oct. Dec. 1, 1918 22. 1917 25. 1918 1, 1918 22. 1917 25. 1918 1,1918 22, 1917 Dec. 22,1917 Oct. 11,1917 Blooms and billets, 4 by 4 inches and Blooms and billets smaller than 4 by 4 inches. Slabs Sheet bars Shell bars 3 to 5 inches Over 5 to 8 inches Over 8 to 10 inches : Over 10 inches Forrfng steel Billets, blooms, and slabs Forging ingots (basic or acid opeu-hearth steel). Up to and including 36 inches diameter, with carbon not over 0.25, cast in chilled molds. Steel bars and small shapes (under 3 inches, including shell steel). Rail steel bars (rolled from old steel rails) Steel bands, hoops, and strips , Bands Hoops Hot-rolled strip steel Steel structural shapes 3-inch and over Steel plates Oct. 1L1917 Nov. 13,1917 i)ec.""22,"i9i7 Sept. 24,1917 Dec. 22,1917 Mav 21,1918 Light rails (45 pounds per yard and under).. Including 10 per cent lengths, down to and including 24 feet. Splice joints complete for light rails 8-pound section Ranging to— 45-pound angle bars Rolled steel angle splice bars Standard sections T rails, 50 pomids per yard and heavier. Rolled tie plates Steel Skelp Grooved skelp Universal skelp Sheared skelp Steel pipe |-inch to 3-inch black Sept. 24, 1917 Sept." 24,' 1917 July 1, 1918 Nov. 20,1917 Dec. 22,1917 Dec. 22,1917 Dec. 22,1917 Oct. 11,1917 Nov."5,"i9i7 Boiler tubes Special skelp— Base sizes Other sizes Seamless steel tubes Round billets, base sizes .... Cold-roUed and cold-dra%vn steel. Nov. 13,1917 Cold-rolled strip steel 1^ inch and wider, 0.100 inch and thicker, hard temper, in coils under 0.20 carbon. Nov. 13,1917 Nov. '5,' 1917 Nov. 20,1917 F. 0. b. consuming point. 130 per gross ton. 129 per gross ton. $35 per gross ton. •1520 per gross ton. S3.50 per 100 pounds. Per net ton of 2,000 pounds, without penaltv. .1549-| S55VF. o. b. Birmingham. scoJ $55. 35i S62. 70 >¥. o. h. New York. 35. 35-) 52. 70 ^F. o. 37. 70 J iS54 351 $6L8()>F. o. b. Chicago. $66. SO-' F. o. b- maker's mill. $3. 75 per 100 pounds. F. o. b. cars Pittsburgh. S4. 50 per 100 poimds. F. 0. b. Pittsburgh or Youngstown, Ohio. S47. 50 per gross ton. $51 per gross ton. $50 per gross ton. $51 per gross ton. F. 0. b. Pittsburgh. $3.25 per 100 pounds, $3.50 per 100 pounds. $3.75 per 100 poimds. $4 per 100 pounds. F. 0. b. Pittsburgh. $60 per gross ton. F. o. b. maker's mill. $73 per gross ton. $2.90 per 100 pounds f. o. b. maker's mill. $3 per 100 poimds f. o. b. maker's mill. F. 0. b. Pittsburgh. $3.50 per 100 pounds. Do. Do. F. o. b. Pittsburgh or Chicago $3 per 100 poimds. $3.25 per 100 pounds f. u. b. Pittsburgh or Chicago. F. o. b. Pittsburgh. F. o. b. maker's mill. $3 per 100 pounds. F. o. b. maker's mill. $0.16 per complete joint. $1 per complete joint. F. o. b. maker's mill. $3.25 per 100 pounds for 25 gross tons or more. F. o. b. maker's mill. $3.25 per 100 pounds. 82.90 per 100 pounds. $3.15 per 100 pounds. $3.25 per 100 poimds. Discount of 52 and 5 and 2i per cent from manufacturers' published standard list. F. o. b. Pittsburgh. $3.40 per 100 poimds. $3..55 per 100 pounds. F. 0. b. Pittsburgh. $3.25 per 100 poimds. Discount of 17 per cent from list pub- lished in pamphlet. $6.50 per 100 pounds. 672 HISTORY OF PRICES DURING THE WAR. Commodity. Date or period. Trice fixed. Steel product s— Continued . Ilot-rollcd trip steel Finished Unfinisliod, for cold rolling Sheets (Bessemer and opeu-heartli) No. 28 black sheets No. 10 blue annealed No. 2.8 galvanized Tin plate, coke base (Bessemer and open- hearth grades). Standard steel cut nails 20d to 6d Cut tacks, brads, shoe finders' goods, etc. (to the jobtjing trade). Net base Steel wood screws Chain ^inch common steel-proof coil chain, self- colored or blacked. 1-ineh base Boat spikes, base sizes , Standard railroad spilces Steel, i\ by 4} inches and hea\ner, 200 kegs or more '(200 pounds each). Less than 200 kegs Iron (see iron products). Standard railroad track bolts Standard button head, oval neck, 3J inches and larger, by J inch and larger, with United States standard square nuts and rolled threads, 200 kegs or more (200 pounds each). Less than 200 kegs Bolts, nuts , and rivets Nov. 20,1917 Nov."5,'i9i7 Nov. 5,1917 Dec. 22,1917 Nov.'26,i9i7 Nov. 20,1917 'Nov.'26,"i9i7 May 21,1918 Nov. 13,1917 Dec. 22,1917 Large rivets .^ Boiler Horse and mule shoes Extra swaged, extra light, light, medium, heavy, long heel, short heel, city pat- tern, and snow shoes, also mule shoes No. 2 and larger. Calks Toe- Blunt, medium, fiat, and square pat- tern — 200-ton lots and over Less than 200 tons to carloads, in- clusive. Less than carloads Sharp pattern — 200-ton lots and over Less than 200 tons to carloads, in- clusive. ■CT J Less than carloads Blunt and medium pattern — 200-ton lots and over Less than 200-tons to carloads, in- clusive. Less than carloads Shai-p pattern— 200-ton lots and over Less than 200 tons to carloads , in- clusive. Less than carloads Dec. 22,1917 /Nov. 13,1917 \May 21,1918 do July 16,1918 July 16,1918 Tool steel. High speed- High speed Tungsten finishing steel. Carbon — Nonshrinkable Special Extra Regular Wire and wire products Wire rods, No. 5 common AVire , plain AVire products- Barbed \vire, standard two-point and four- W point hog and cattle pattern, painted. Ire nails, 20d to 60d, common Wire rope . o. b. Pittsburgh. :.50 per 100 poimds. i.50 per 100 pounds. . o. D. Pittsburgh. i per 100 poimds. .25 per 100 pounds. i.25 per 100 pounds. .75 per 100-poimd base box f. o. b. Pittsbirrgh. . 0. b. Pittsburgh. ': per 100 pounds. $8.80 per 100 pounds. Discounts from standard list, r. o. b. I'ittsburgh. .!;8 per 100 pounds. $7.50 per 100 pounds. $5.25 per 100 pounds f. o. b. Pittsburgh. F. 0. b. cars, Pittsburgh. $3.90 per 100 pounds. $1 per 100 pounds, extra. F. o. b. cars Pittsburgh. S4 .90 p3r 100 pounds. $1 per 100 pounds , extra. F. 0. b. Pittsburgh. S4.65, base. $4.40, base. $4.50, base. Per 100 pounds, f. o. b., Pittsburgh. $5.75. Per 100 pounds f. o. b., Pittsburgh. $5.50. $5.75. Oct. 11,1917 Nov. 5,1917 Nov. 13,1917 /....do \Aug. 28, 1918 $5.90. $6.00. $6.25. $6.40. $6.00. $6.25. $6.40. $6.50. $6.75. $6.90. Mill shipments f. o. b. point of ship- ment and net without discount. 82 per pound. $0.65 per pound. $0.35 per pound. $0.23 per pound. $0.18 per pound. $0.15 per pound. Add 1 cent to each of above prices when shipped from maker's ware- house stocks. F. 0. b. Pittsburgh. $57per gross ton. $3.25 per 100 pounds. S3 .65 per 100 pounds. $3. .50 per 100 pounds. Discounts or additions applying to standard list. GOVERNMENT -KEGULATIONS RELATING TO PRICES. 673 LEAD. The price of lead was never formally fixed, but was regulated by informal agreements between the War Industries Board and the lead producers. On December 17, 1917, a price of 7.75 cents per pound f. o. b. East St. Louis, to be effective from that date until the end of March, 1918, was agreed upon by the nonferrous metals section of the War Industries Board and the lead producers' committee. On April 8, 1918, it was agreed with the approval of the price-fixing com- mittee that the price of lead in any month should be the average monthly price f . 0. b. East St. Louis, quoted by the Engineering and Mining Journal in that month. Where the price f. o. b. New York was lower than the price at East St. Louis, 7i cents per 100 pounds w^as to be deducted from the East St. Louis price. On June 14, 1918, the lead producers' committee agreed that no pig lead other than Government purchases should be sold at more than 7i cents per pound f. o. b. East St. Louis. The Engineering and Mining Journal considered no sales as made at a higher figure in computing its monthly average price at East St. Louis. It was further decided regarding this agreement : 1. It should go into effect at once for an "indefinite period. 2. Further contracts should be as slated and existing contracts modified to conform to the agreement. 3. Other lead producers should be urged to become parties to the agreement. The same agreement was extended again in August, 1918, until November 30, 1918, when the agreement expired, and was not renewed.* MANGANESE ORES. The price of manganese was not fixed formally. A schedule of prices adopted by the American Iron and Steel Institute was approved by the ferro alloys division of the War Industries Board. Since manganese was not bought directly by the United States Government, these prices pertained to purchases by producers of steel. The prices listed below became effective May 29, 1918, and were discontinued on December 31, 1918. The following schedule gives domestic metallurgical manganese ore prices per unit of metallic manganese per ton of 2,240 pounds for manganese ore produced and shipped from all points in the United States west of South Chicago, 111. This schedule does not include chemical ores as used for dry batteries, etc. The prices are on the basis of delivery f. o. b. cars South Chicago and are on the basis of all-rail shipments. When shipped to other destination than Chicago the freight rate per gross ton from shipping point to South Chicago, 111., is to be deducted to give the price f. o. b. shipping point. Schedule for metallic manganese ore containing when dried at 212° F. — Per cent. Per unit. 35 to 35.99, inclusive $0.86 36 to 36.99, inclusive ± . 90 37 to 37.99, inclusive .94 38 to 38.99, inclusive . 98 39 to 39.99, inclusive__- 1. 00 40 to 40.99, inclusive 1. 02 41 to 41.99, inclusive 1. 04 42 to 42.99, inclusive 1. 06 43 to 43.99, inclusive--. - 1. 08 44 to 44.99, inclusive= : 1. 10 1 Report of nonferrous metals section to Mr. Baruch. 125547°— 20 43 674 HISTORY OF PRICES DURING THE WAR. Schedule for metallic manganese ore containing ivhen dried at i^l;i F.° — Continued. Percent. Per unit. 45 to 45.99, inclusive $1.12 46 to 46.99, inclusive 1. 14 47 to 47.99, inclusive 1. IG 48 to 48.99, inclusive 1. 18 49 to 49.99, inclusive 1. 20 50 to 50.99, inclusive 1.22 51 to 51.99, inclusive 1. 24 52 to 52.99, inclusive 1. 26 53 to 53.99, inclusive 1.28 54 to 54.99, inclusive 1. 30 ADDITIONS TO UNIT PRICES. For manganese ore produced in tlie United States and shipped from points in the United States east of South Chicago 15 cents per unit of metallic manga- nese per ton shall be added to above unit prices. Above prices are based on ore containing not more than 8 per cent silica and not more than 0.25 per cent phosphorus, and are subject to — Silica premiums and penalties. — For each 1 per cent of silica under 8 per cent down to and including 5 per cent premium at rate of 50 cents per ton. Below 5 per cent silica, premium at rate of $1 per ton for each 1 per cent. For each 1 per cent in excess of 8 per cent and up to and including 15 per cent silica there shall be a penalty of 50 cents per ton ; for each 1 per cent in excess of 15 per cent and up to and including 20 per cent silica tliere shall be a penalty of 75 cents per ton. For ore containing in excess of 20 per cent silica a limited tonnage can be used, but for each 1 per cent of silica in excess of 20 per cent and up to and including 25 per cent silica there shall be a penalty of $1 per ton. Ore containing over 25 per cent silica subject to acceptance or refusal at buyer's option, but if accepted shall be paid for at the above schedule with the penalty of $1 per ton for each extra unit of silica. All premiums and penalties figured to fractions. Phosphorus penalty. — For each 0.01 per cent in excess of 0.25 per cent of phos- phorus there shall be a penalty against unit price paid for manganese of one- half cent per unit, figured to fractions. In view of existing conditions, and for the purpose of stimulating production of domestic manganese ores, there will be no penalty for phosphorus so long as the ore shipped can be used to advantage by the buyer. The buyer reserves the right to penalize excess phosphorus as above by giving 60 days' notice to the shipper. The above prices to be net to the producer ; any expenses, such as salary or commission to buyer's agent, to be paid by the buyer. Settlements to be based on analysis of ore sample dried at 212° F. The per- centage of moisture in ore sample as taken to be deducted from the weight. On August 17, 1918, the United States Railroad Administration announced the following schedule of freight rates on manganese ore, establishing rates lower than the prevailing rates carried in current tariffs : MANGANESE ORE, CARLOAD, PER TON OF 2,000 POUNDS. [Minimum carload weight, 60,000 pounds.] From stations in — Group D.i Group 2.2 Groups B andC.3 Group A.< Oregon Washln^on. Califorma. . . Montana Arizona Colorado Nevada Utah New Mexico $11.00 U.OO 11.00 8.00 9.00 7.00 10.00 9.00 7.00 $12. .50 12.50 12.00 9.50 9.00 7.00 11.00 10.00 7.00 $12. 50 12.50 12.50 9.50 10.50 8.50 11.50 10.50 8.50 $15.50 13.50 13.50 10.50 11.50 9.50 12.50 11.50 9.50 * Group D: Chicago, Indiana Harbor, and Erie. 2 Group 2: Points in Alabama and Tennessee taking Group C rates. 3 Groups B and C: Youngstown, Pittsburgh, Buffalo, and points in Ohio. * Group A: Points in .seaboard territory, including Goshen, Graham, Reusens, and Roanoke, Va. GOVERNMENT REGULATIONS RELATING TO PRICES. 675 NICKEL. On January 4, 1918, a resolution was adopted by the War Industries Board stating that it was not necessary at that time to fix the price of nickel/ On April 2, 1918, however, an agreement was made with the International Nickel Co. to supply the Government requirements for nickel at the following rates : Cents per pound. Electrolytic nickel , 40 Shot nickel 88 Ingot nickel . 35 These prices were to be effective for the duration of the war and were re- moved on January 1, 1919. PLATINUM METALS. The control over the supply and prices of platinum metals was exercised through a series of requisition orders issued by the Ordnance Department and administered by the chemicals division of the War Industries Board. The first ordnance requisition order, No. 510, issued on "February 23, 1918, applied to 14 firms dealing in platinum, including refiners, jewelers, and dental supply firms. Under date of May 1, 1918, a second requisition of the War Department was issued through the platinum section of the War Industries Board. This super- seded the order of February 23, 1918, and was to cover all purchases to July 1, 1918. About 900 dealers were affected by this second order. After conference with the Secretary of War, the platinum section announced the following prices for Government purchases of platinum metals : Per troy ounce. Blatinum r ^ $105 Iridium 175 Palladium 135 On June 21, 1918, the third of the series of requisitioning orders, covering 1,555 firms, was issued. The order became effective June 30, 1918, and con- tinued so until January 1, 1919. The prices of May 1, 1918, were maintained. In this order the prices of all platinum metals were fixed except when the metal was contained in articles of jewelry where the value of the labor exceeded 20 per cent of the value of the metal. The control over platinum metals was terminated on December 1, 1918. QUICKSILVER. The War Industries Board, in conference with the producers of quicksilver, agreed upon the following prices for Government supplies of quicksilver. The prices were effective from April 18, 1918, to January 1, 1919. Price.2 Place of delivery. Mine. fSan Francisco California, Oregon. \Mare Island Navy Yard $105 per flask Marathon, Tex Texas. 1 On May 20, 1918, the matter of fixing the price of nickel was again considered, but it was deemed inadvisable " because of the present capacity being strained to fulfill contracts maturing with the next two years. It was requested and agreed to by the producers that pending a definite settlement of this subject no contract should be extended or future contracts made without first consulting the price-fixing committee." (P. P. C. Min., Vol. IV, May 20, 1918.) 1 For deliveries at New York or Brooklyn, 75 cents per flask was added to the prices here given. 676 HISTORY 0F PRICES DURING THE WAR. SILVER. The following letter was sent by Secretary McAdoo to Senator Pittman, of Nevada, who introduced a bill into Congress providing for the use of silver lying idle in the Treasury, The bill was approved by Congress on April 23, 1918. Hon. Key Pittman, United States Somte. ]My Dear Senator : I have examined the draft of a bill embodying the ideas Avhich have been discussed between us for the utilization of the silver now lying unused in the Treasury of the United States. I venture to recapitulate briefly the puiiioses to be accomplished by the bill and the reasons which, in my judg- ment, require its enactment. The annual production of silver has varied in recent years, having fluctuated from 160,000,000 ounces to 226,000,000 ounces per annum, according to the esti- mate of the Director of the Mint. Production for the year 1916 amounted to 156,600,000 ounces, and for the year 1917 is estimated to be approximately 160,000,000 ounces. The decline in production during recent years has been partly due to conditions in IMexico, as the result of which Mexican mines have not been operated to their full capacity. The price of silver has varied from about 48* cents per fine ounce, at which price it sold during August, 1915, to $1.18 per fine ounce during September, 1917. Apart from industrial requirements, estimated at about 100,000,000 ounces per annum, silver is used by all nations for subsidiary coinage, and by India and other oriental countries for major .coinage. In China uncoined silver circulates as money. The European War has greatly enlarged the demand for silver. European countries engaged in the conflict have required unusual quantities of silver coins for their armies and for the civil population. Buying power of oriental coun- tries has been greatly enlarged, and as the importation of commodities has been limited owing to war needs of the belligerents, that buying power has been exercised to acquire silver. China and India are two oriental countries that absorb the largest amounts of silver. The products of India are wheat, jute, burlap, etc. The demand for Indian products has been unusual. Jute bagging is used for sugar, grain, and fertilizer bags ; also as outside wrappers for cotton and other products. It is also used for trench bags and for packing many articles of military' necessity. No article has been found that will serve as a substitute. The Orient is willing to accept silver in place of gold for commodities fur- nished by them, and it is to the interest of the United States and its allies that foreign trade balances should, as far as possible, be settled in silver rather than in gold. The gold in this country and in the hands of its allies is needed as a base for the enormous credit structure it is necessary to erect in the process of placing Government loans, and every ounce of silver that can be used in the settlement of foreign balances Is so much -gained. It is better to settle trade balances by shipping silver than to make arrangements for stabilizing exchange, where these are possible, as they are not in the Orient, because these exchange arrangements, whatever their form, always mean a deferred demand for gold, while the settlement of foreign balances in silver is a definite settle- ment calling for no future adjustments. Further, the unprecedented business activity in this country has caused an unusual demand for silver for subsidiary coinage, the needs of the United States for this purpose during the present year being greater than ever before, amounting, as they do, to approximately 21,250,000 ounces. There are now in the Treasury of the United States approximately 490,000,000 standard silver dollars, containing approximately 375,000,000 ounces of fine silver. Against these standard silver dollars there are outstanding silver certificates, and so long as these silver certificates remain outstanding a corre- ponding amount of silver dollars must be held for their redemption. The proposal is now made to borrow from the Treasury for the purposes stated above a portion of the silver so held in the Treasury, but only upon the cancellation from time to time of a corresponding amount of outstanding silver certificates. The silver having been so borrowed and used, the Secretary of the Treasury is required to repurchase from time to time, at the fixed price of $1 per fine ounce, an amount of silver equal to the silver so borrowed and used, and to recoin the silver into standard silver dollars, thus in time replacing in the Treasury the silver so withdrawn. In this way the large mass of silver, GOVERNMENT EEGULATIONS RELATING TO PRICES. 677 Which is serving no useful active purpose, now can be made available for a direct war purpose. There is no intention of making any permanent change in the status of the silver certificates. The proposition is, in brief, to retire silver certificates ; to borrow from the Treasury the silver for use for the war purposes above set forth ; and then, as silver from time to time in the future comes on the market, to replace the silver so borrowed by purchase in the market at the fixed price of $1 per fine ounce and to replace the borrowed silver by coining the new silver acquired for that purpose into standard silver dollars. There is no limit of time within which this must be done. The cost of producing silver, like the cost of producing all other commodi- ties, has greatly increased. Labor is receiving very much higher wages than during normal times. Machinery is more expensive, and the chemicals and other supplies needed in the production of silver are all correspondingly higher in price. The price at which the silver is to be rebought has been fixed in the proposed bill at $1 per ounce. This price was arrived at after an examination by the Director of the Mint into the cost of producing silver in a number of different mines, and the Director of the Mint is of the opinion that $1 per fine ounce under all the conditions at present prevailing is a fair price. The silver released through the retirement of silver certificates will be sold by the Secretary of the Treasury for the war purposes stated, at a price that will permit him without loss to rebuy at the price of $1 an ounce the silver thus sold. The proposed measure is unquestionably in the interest of the country as a whole for the prosecution of the war. It proposes no permanent change in our existing currency arrangements. What is proposed is a temporary change, consisting of the active use for war purposes of the silver now lying inert in the Treasury. The bill provides within itself the steps necessary to reverse that position and to replace and recoin the silver. The arrangement proposed is purely a temporary arrangement, and the pressing needs of the United States require, in my opinion, its prompt enact- ment into law. Sections 5, 6, 7, and 8 seem to me the best way of dealing with the con- traction of the circulating medium which would otherwise be brought about through the cancellation of silver certificates. This is accomplished by au- thorizing an issue of Federal reserve bank notes in small denominations in order to fill the void occasioned by the retirement of silver certificates, and provides for the prompt retirement of those Federal reserve bank notes as silver certificates are from time to time reissued. There may well be differ- ences of opinion as to the best method of counteracting such contraction. If no method of meeting the contraction be provided, the contraction will be auto- matically relieved through the issue of legal-tender notes in denominations of ones and twos, Federal reserve notes taking the place of the legal tender notes. This would be perhaps the easiest way of meeting the situation were it not for the fact that Federal reserve notes are now secured by gold reserve of over 60 per cent, and the issue of additional Federal reserve notes without a corre- sponding addition to the gold reserve would reduce the percentage of reserve. Federal reserve bank notes, on the other hand, require a reserve of but 5 per cent, and as there is absolutely no reason why a larger reserve for Federal reserve bank notes should be provided, it seems to me unwise to reduce the percentage of reserve under Federal reserve notes. My reason for stating that the Federal reserve bank notes, the issue of which is contemplated under the bill, require no greater reserve than 5 per cent is that those notes in small denominations will merely take the place in the pockets of the people of the silver certificates now carried by them, and are thus extremely unlikely to be presented for redemption. If and to the extent that they are presented for redemption, it will be a demonstration that these notes are not needed in the circulation, and the means for their prompt retirement is furnished by the deposit as security for these Federal reserve bank notes of short-time certificates of indebtedness or the one-year conversion notes of the United States. Whenever, therefore, these Federal reserve bank notes are presented for redemption it will only be necessary to let the maturing obligations held against them run off. The popular and well-founded feeling against a bond-secured currency therefore does not apply to the present issue, because (1) the issue is strictly temporary in its nature, (2) the security behind the issue automatically provides for the redemption of the issue, (3) no artificial value is given to any long-time bonds by the circulation privilege and no vested interest is created in the circulation privilege, which, if created, it might prove burdensome for the Government or the banks to abate. 678 HISTORY OF PRICES DURING THE WAR. If the method, suggested for dealing with the replacement of the silver certifi- cates that may be retired does not commend itself to yon as the best manner of meeting the situation. I should be glad to discuss any modifications that may be thought advisable. Cordially, yours, W. G. McAdoo.* On August 15, 191S. the Treasury Dei)artment authorized the following statement : Under the authority of the act of Congress approved April 23, 1918, silver has been sold by the Secretary of the Treasury at a price which will permit the Treasury from new purchases of a corresponding amount of silver at the price of $1 per fine o"unce to recoiu the silver purchased into silver dollars without loss. In order to provide for the various items of expense involved it was found necessary to fix the price for which silver was sold at $1.01^ per fine ounce, and it was made a condition of sale that the purchaser should not pay a higher price for silver in other markets than in those of the United States, LIMITS LICENSE FOR EXPOKT. Up to the present time the Federal Reserve Board has freely granted licenses for the export of silver. In order, however, to conserve the use of silver, export licenses for silver will hereafter be granted only for civil or military purposes of importance in connection with the prosecution of the war and only in cases where the exporter certifies that the silver to be exported has been purchased at a price which does not directly or indirectly exceed $1.01^ per ounce 1,000 fine, at the point where silver is refined in the United States, or at the point of importation in the case of imported silver. ADDITIONAL EEQITIREMENTS. Applications for licenses to export silver should also state from whom the silver was purchased, the point at which silver was delivered to purchaser, for whose account and by whose order, and for what purpose the silver is to be exported." These restrictions were removed by the Federal Reserve Board on May 5, 1919, in the following announcement: On August 15, 1918, the Federal Reserve Board announced that licenses for the export of silver would thereafter be granted only for civil or military pur- poses of importance in connection with the prosecution of the war and only in cases where the exporter certified that the silver to be exported had been pur- chased at a price which did not directly or indirectly exceed .$1.01i per ounce 1.000 fine at the point v.'here the silver is refined in the case of silver refined in the United States or at the point of importation in the case of imported silver. The occasion which required the above limitations on the export of silver having now passed, the Federal Reserve Board will hereafter, unless a Government necessity should again arise, resume its former policy of granting freely and without condition all applications for the export of silver bullion or of silver coin of foreign mintage. This change of the policy of granting licenses does not do away with the necessity of filing on application for licenses to export silver bullion or silver coin of foreign mintage. Such applications must as heretofore be filed through the Federal reserve banks of the appropriate district, but such applications will, as stated above, be freely granted by the Federal Reserve Board. The Secretary of the Treasury does not contemplate any further sales of silver under the Pittman Act, except to the Director of the Mint.^ ZINC. On the recommendation of the War Industries Board and with the approval of the President the following maximum prices of zinc became effective on iQfflcial Bulletin, Apr. 11, 1918. - Official Bulletin, Aug. 17, 1919. ^ Commercia) and Financial Chronicle, May 10, 1919. GOVERNMENT KEGULATIONS RELATING TO PRICES. 679 February 13, 1918, were renewed on June 1, 1918, again on September 1, 1918, and remained in effect until January 1, 1919. Grade A, 12 cents per pound f. o. b. East St. Louis. Plate, 14 cents per pound. Sbeet,^ 15 cents per pound. These prices were subject to the following conditions : (a) Differentials shown on the producers' lists at that time were to be allowed; (&) the fixed prices applied to new business and not to unfiUed contracts made prior to February 14, 1918,^ and to the following more general provisions : First, that the producers of grade A zinc will not reduce the wages now being paid ; second, they will sell to the Allies, to the public, and to the Government at the same price ; third, that ^hey will take the necessary measures, under the direction of the War Industries Board, for the distribution of the grade A zinc to prevent it from falling into the hands of speculators, who might increase the price to the public ; and fourth, that they pledge themselves to exert every effort necessary to keep up the production of grade A zinc, so as to insure an adeauate supply so long as the war lasts. othe^-^Sige^ '"'^^"^'''^ ^^^ ^^""^^^ °^ one-eighth inch thickness and less, and plate zinc all = Quoted from letter written on Apr. 23, 1918, by Mr. Pope Yeatman chief of ihe nnn ferrous metals secti9n of the War Industries Boai^, to MrrWR Calls editor 6f^e Engineering tand Mining Journal. i"sciii», eunot oi tne 5. TEXTILES AND FIBERS. The control over textile and fiber prices, which came somewhat later than over footliS, fuels, and metals, was, in the main, be^n and carried through by the price-fixing committee. The regulations which were issued by the com- mittee, together with those originating in the War Trade Board, the War Industries Board, and the War Department, are listed below under one or the other of the following heads: Binder twine, burlap, cotton goods, cotton linters, kapok, manila fiber, rags, silk, and wool. BINDER TWINE. (Mar. 1, 1918, to 1919 harvest season.) On March 1, 1918, the Food Administration announced an agreement with the manufacturers of binder twine, fixing the price of binder twine for the 1918 harvest. The following schedule shows the maximum differentials allowed above the cost of sisal to the manufacturers of twine, or 19 cents a pound. In June, 1918, an arrangement was made for the purchase of 500,000 bundles of sisal for the manufacture of twine for the 1919 harvest, at a price of 16 cents per pound. But no change was made in the twine differentials. This contract as it stood at the time of the armistice will probably remain in effect during the 1919 harvest season. STANDARD AND SISAL BINDER TWINE, 500 FEET TO THE POUND, F. O. B. FACTORY. Cents per pound. Carload lots of 20,000 pounds or more 4 Lots of 10,000 pounds or more, but less than 20,000 pounds 4J All amounts less than 10,000 pounds 41 Prices for other grades should not exceed the prices of standard and sisal twine by more than the following amounts : • . Cents increase. 550 feet to the pound 1| 600 feet to the pound 3 650 feet to the pound 4* 650 feet to the pound (pure mapila) 6 All of these prices are f. o. b. factory. The Food Administration considered the increased weight of binder twine over tlie sisal contained therein and the fact that the manufacturers have on hand sisal purchased at lower prices or twine manufactured from lower-priced sisal. BURLAP. (Oct. 4, 1918-Jan. 1, 1919.) With the following announcement on October 25, 1918, the War Industries Board inaugurated the control over the prices of burlap: The War Industries Board; through the jute, hemp, and cordage section, announces it has accepted the offer of the burlap importers and bag manufac- 680 GOVERNMENT REGULATIONS RELATING TO PRICES. 681 turers to establish the following basis of maximum prices for burlap in carload or larger quantities, effective October 4, 1918 : Per yard, 40 inches 8 ounces, 13.6 cents Pacific coast ; 14 cents Atlantic and Gulf ports. Per yard, 40 inches 10^ ounces, 16 cents Pacific coast ; 16^ cents Atlantic and Gulf ports. Other sizes and weights in equal proportion. Other points in United States based on freight from Pacific coast. Quantities less than carload at prices slightly higher to cover cost of handling. These prices to be effective until about February 1, 1919. This resolution is voluntarily made by the trade because much lower prices are expected to prevail as the result of purchases to be made after January 1, 1919, through assistance of the War Industries Board, and therefore does not affect the validity or integrity of contracts made prior to October 4, 1918. In its aim to secure much lower prices for all purchasers of burlap in the United States, the War Industries Board realizes that this voluntary reduction represents very heavy losses to importers and bag manufacturers. That the losses may be the more equitably distributed, it is therefore the duty of each citizen to stand loyally by any contract for burlap made prior to October 4, 1918. Dealers in second-hand bags and burlap attended a conference with the War Industries Board October 10, and after a full explanation of the situation placed themselves on record as being in accord with the action taken, and pledged their loyal support to the maintenance of maximum prices on the basis of these prices for new burlap and in the usual proportion thereto. Bag manufacturers established maximum prices on bags f. o. b. factory on the following basis : Maximum prices on burlap f, o. b. factory, plus cost of manufacturing, plus 5 per cent margin. At the time of the armistice negotiations were under way for a price on burlap under Government control which show a decline of about 25 per cent from the existing maximum prices, COTTON GOODS. (July 1, 1918-Jan. 1, 1919.) The regulation of the prices of cotton goods was first formally considered in a conference between representatives of the industry and the price-fixing com- mittee on March 26, 1918. No action was then taken,* On June 8, 1918, it was agreed that a subcommittee of the price-fixing com- mittee should meet with a committee representing the industry and formulate a definite plan of action. On June 10 the following announcement was published : The price-fixing committee of the War Industries Board was in conference Saturday with the executive committee of the war service committee of the National Council of American Cotton Manufacturers. In order to establish a basis for a prospective price agreement to introduce stabilization into the trade and avoid any undue hardship upon the manufacturer and distributor of cotton goods, the following tentative plan was outlined to be operative if the pending negotiations for a price agreement are concluded : TENTATIVE PLAN OUTLINED. On all bona fide sales made on or before June 8, 1918, for delivery previous to January 1, 1919, prices to remain as shown in sales. On all sales made after June 8, 1918, for delivery subsequent to September 30, 1918, the prices are to be subject to revision to accord with the prices agreed upon by the price-fixing committee of the War Industries Board in conference with the war service committee of the National Council of American Cotton Manufacturers. On all sales made for delivery after January 1, 1919, the prices agreed upon by the price-fixing committee in conference with the war-service committee of the National Council of American Cotton Manufacturers are to be the prices, 1 Price-fixing committee, Minute Book I, Mar. 26, 1918. 682 HISTORY OF PRICES DURING THE WAR. regardless of the fact that the sales may have been made previous to June 8, 1918. It is understood that all prices for so-called spring (1919) business will be subject to such revision. The plan contemplates that manufacturers' prices on staples shall be on the same basis of cost and profit to the Government and to their usual civilian out- lets. It is further expected that manufacturers will agree to devote a uniformly large proportion of their productive capacity to making staples.^ A few days later supplemental provisions were announced : The price-fixing committee recognizes the necessity for prompt stabilization, and expects that it will soon fix prices, even in the absence of such cost data as would be desirable; and, accordingly, it announces that its action in this instance is not in accordance with the usual procedure and may not be expected to be the basis for future operations with this industry. STIPULATION AGEEED TO. As a part of the price program which is planned to be operative within a few days the following stipulation was agreed to, supplementary to the provisions previously agreed to : All sales made after June 21 and before October 1 will be on the basis of the prices to be approved by the price-fixing committee to apply to sales made before October 1, this regardless of the period during which delivery is to be made. Prices will later be fixed to apply to sales made during the period October 1 to December 31, 1918, or for such other period as may appear desirable at the time. The war-service committee submitted prices on a few staple cloths. The prices are materially lower than the present market prices. The committee was instructed to submit on July 1 a schedule of prices on the complete list of staples, as well as prices on cotton yarns, all on a parity with the prices suggested today.* On July 1, 1918, the price-fixing committee in executive session agreed that, pending the receipt of more definite data, it would be expedient to fix a maximum base price of 60 cents per pound for 36-inch sheeting with differentials for other cotton fabrics.' The official statement covering this decision was approved July 8, 1918, and is given below: At a meeting of the price-fixing committee of the War Industries Board with the cotton manufacturers, maximum net prices at mill were agreed upon and approved by the President for the following basic products : ' Cents per pound. 36 inches, 48 by 48, 3-yard sheeting 60 36 inches, 56 by 60, 4-yard sheeting 70 38^ inches, 64 by 60, 5.35-yard print cloth 83 38i inches, 80 by 80, 4-yard print cloth * 84 Standard wide and sail duck, 37^ and 5 per cent from list. Standard Army duck, 33 per cent from list. These prices represent a reduction from quoted market prices of about 20 to 30 per cent, and apply to all primary civilian purchases as well as to the Government and those Governments associated with us in the war. A com- nnttee is at work on a list comprising a full line of staple cotton fabrics for the purpose of establishing prices upon a parity with those herein quoted. It is expected that this list will be published in a few days. These prices are to remain in effect until October 1 of this year, before which date the industry will meet with the price-fixing committee for the purpose of agreeing upon prices for a further period of 90 days. Future agreements will be premised on figures to be collected and analyzed by the Federal Trade Commission designed both to show basis of profit and equity of parities. Present prices were necessarily based upon inadequate information, but in the emergency nature of the case and » Official Bulletin, June 10, 1918. 2 Official Bulletin, June 22, 1918. ' Price-Fixing Committee, Minute Book V, July 1, 1918. * Later changed to 86 cents. GOVERNMENT REGULATIONS RELATING TO PRICES. 683 the advisability of a gradual adjustment are considered fair and equitable by both the manufacturers and the price-fixing committee. Prices named are to cover primary sales made since June 8 for delivery after October 1 and all pri- mary sales made since June 21 regardless of the delivery dates. The President, in approving these prices, has expressed his appreciation of the spirit with which the cotton manufacturers have met the Government's efforts to stabilize an industry which so directly reaches into the life of every citizen. The President calls upon and expects all manufacturers of ready-to-wear goods as well as all dealers in cotton fabrics to so regulate their profits as to insure to the consumer the full benelit of this large reduction in price. Lists of differentials from the basic prices were issued from time to time. On September 3, 1918, the price-fixing committee announced its future policy with regard to the fixing of dilf erentials : In accordance with the agreement between the representatives of the cotton- manufacturing industry and the price-fixing committee, various differentials based on the fundamental prices then agreed on have been established and pub- lished. It is believed that enough representative fabrics have been so priced to make it entirely possible and feasible for the industry itself to establish prices on fabrics varying slightly from these representative numbers, such variants 10 be prices in complete harmony with the spirit of the agreement of July 1, 1918. Such variants may be reviewed and modified by the price-fixing committee if this course of action seems advisable. The committee conferred with representatives of the industry on September 25, 1918, but owing to the failure of a large number of cotton mills to submit their cost sheets within thfe period requested, the committee found it necessary to postpone its revision of prices. With the exception of a few changes in maximum prices, to take effect October 1, 1918, the schedules were extended until November 16, 1918. The price-fixing committee had hoped to reduce the maximum prices at the next conference, but when they met with the representatives of the industry on November 8 and 9, the trade protested against a reduction, and no new agree- ment was reached. JE^ committee issued the following statement : In the absence of agreement on new prices the present maximum limits on cotton goods are left unchanged by the price-fixing committee until January 1, 1919, except for certain revisions hereinafter referred to. In making this ar- rangement the price-fixing committee took into consideration the special difficulty which arises at the present time in determining fair prices on cotton goods. The price of raw cotton is fluctuating and uncertain. The differentials for the numerous separate classes of cotton goods vary greatly and can not be brought into reasonable conformity with each other except after prolonged investiga- tion. In view of these circumstances the committee finds itself unable to fix new maximtim prices at the present time. In sanctioning the maintenance of the existing schedule for a limited period the committee wishes it to be understood that the prices enumerated in that schedule are not indorsed as just and reasonable, but only as maximum prices, not to be exceeded under any conditions during the period stated. It is not recommended by any implication that these prices must now be paid by the Government, by the Allies, or by the public. It is agreed on the recommendation of the manufacturers that certain errors in the yarn schedule be corrected and that differentials be investigated, and if any of them are found out of line with basic prices, be revised to more fairly conform to the general profit return on other cotton goods. All sales made after Novem- ber 16 shall be subject and shall conform to any revisions made under this paragraph.^ At a meeting of the price-fixing committee on November 14, 1918, the provision in the schedule of August 7, 1918, to the effect that sales in ginghams should be made only for delivery prior to April 1, 1919, was canceled. 1 Official Bulletin, Nov. 16, 1918. 684 HISTORY OF PRICES DURING THE WAR. Sales of this commodity as well as of any other cotton commodity may be made for any delivery period agreed on between buyer and seller at prices under no circumstances in advance of the published schedules.' On December 12. 1918. differentials were fixed on yarns and twine covering sales made from November 17, 1918. to January 1, 1919. The fixed prices of cotton goods expired by limitation on January 1, 1919. The schedules of differentials are attached below. The commodities are ar- ranged alphabetically, and the prices under each commodity are arranged chronologically. BANDAGE CLOTH. (Sept. 25, 1918.) Width (inches). Yards per pound. Sley and pick. Cents per yard. 3.i 32 30 28 8.77 9.87 10.52 11.28 44 by 40 44 by 40 44 by 40 44 by 40 9| m COTTON BLANKETS. STAPLE BLANKETS. (Aug. 16, 1918.) Made of American cotton with standard binding; and packing, maximum price of the equivalent of $3.07i per pair net cash at mill, based on size of 04 by 70 inches, weighing about 2J pounds per pair, finished in gray, white or tan mth usual border. WOOL FINISHED BLANKETS. (Aug. 10, 1918.) Made partly of foreign cotton, with standard binding and packing, maximum price the equivalent of $3.75 per pair, net cash at mill, based on size 00 by 83 inches, weighing about 3J pounds per pair, finished in gray, white, or tan with usual border. All other constructions, designs and colors in both the so-called "Staples" and "Wool finish" variety to be based on the above standard prices. Special Ijiuding or packing can be priced extra. JACQUAKD BLANKETS. (Aug. 10, 1918.) Made partly of foreign cotton and woven on j icquard looms, with standard binding and packing, ma.\- imimi price the equivalent of SI. 35 per pound net cash at mill. Special binding or packing can be priced DUGOUT BLANKETS, AMERICAN COTTON, QUARTERMASTER CORPS, NO. 127. We ght. Size (inches). Sley and pick. Price per blanket. 48 by 84 48 by 84 48 by 84 (Oct. 17, 1918.) 45 by 55, wool finish $3.50 4.55 do 4.00 1 Price-Fixing Committee, Minute Book XI, Nov. 1.5, 1918. GOVERTSTMENT REGULATIONS RELATING TO PRICES. 685 HEAVY CHAMBRAYS, CHEVIOTS, COTTON PLAIDS, AND KINDRED COLORED FABRICS, SEPTEMBER 3, 1918. Class 1 : Lakewood, 25 inches, 6.10 plaids, at 15* cents, terms 2/10-60 extra, delivery at mill — no freight (which figures net to mill 15.03J cents). Class 2 : Riverside, 27 inches, 4.60 plaids, at 20* cents, terms 2/10-60 extra, delivery at mill — no freight (which figures net to mill 19.88J cents). Class .3 : Pilot junior shirting, 28 inches, 4.30 Chambrays, at 22 cents, terms 2/10-60 t'xtra, delivery at mill — no freight (which figures net to mill 21.34 cents). Class 4 : Massachusetts, 26 inches, 3 suitings, at 29 cents, terms 2/10-60, delivery at mill — no freight (which figures net to mill 28.13 cents). Class 5 : Otis indigo checks, 30 inches, 3.50 checks, at 28 cents, terms 2/10 extra, de- livery at mill — no freight (which figures net to mill 27.16 cents). Class 6 : Massachusetts K. F. C, 32 inches, 3.10 shirting, at 31 cents, terms 2/10-60 extra, delivery at mill — no freight (which figures net to mill 30.07 cents). COUTIL. Sept. 25, 1918. Division. 1918 No. 1.: No. 2 No. 3 No. 4 No. 5 No.G. No. 7 Width (inches) Weight. 2.73 3.05 2.25 2.15 2.15 1.85 1.70 Sley and pick. 108 100 96 96 104 124 104 by 56 by 56 by 80 by 68 by 80 by 84 By 80 Cents per yard. 31J 29 m 36J 38| 45 46i riiscount. Less 3 per cent . do do do do do do Net cash f. o. b. $0.30565 .2813 .3601 .3565 .3771 .4365 .4486 DENIMS. (Sept. 3, 1918.) Division No. 1 : Standard-Otis, No. 8. 2.20 white back denim, indigo. Price suggested, $0.3750 per yard ; terms 2/10^60 days dating, delivery at mill, no freight allowance (which figures net to mill 36.38 cents per yard). Comprising this division are all white brck indigo-blue denims. Differentials suggested as follows: 9-o.mce, 1 cent a pound less than 2.20; 8-ounce, 1 cent a pound less than 2.20 ; 2.40/2.50, inclusive, IJ cents a pound more than 2.20 ; 2.55/2.75, inclusive, 3 cents a pound more than 2.20 ; 3 and lighter, 4 cents a pound more than 2.20. Division No. 2 : Standard-Everett, 2.45 denim, indigo. Price suggested, 331 cents per yard ; terms 2/10-60 days dating, delivery at mill, no freight allowance (which figures net to mill 32.617 cents per yard). Comprising this division are all double and twist construction denims. Division No. 3 : Standard-Proximity, No. 31, 2.40 double and twist indigo denim. Price suggested, 38.50 cents per yard ; terms 2/10-60 days dating, delivery at mill, no freight allowance (which figures net to the mill 82.50 cents per yard). Differentials suggested as follows : 2.60/2.65, inclusive, 2 eeuts a pound more than 2.40 ; 2.70/2.80, inclusive, 3 cents a pound more than 2.40 ; 8 and lighter, 4 cents a pound more than 2.40. Brown denims : Recommendation is that 2 cents per pound more be paid for brown denims than indigo denims in all corresponding weights. Aniline denims : Recommendation is that price be 2 cents per pound less than indigo denims in all corresponding weights. GRAY RED STAR DIAPER CLOTH. • (Sept. 25, 1918.) Width (inches). Yards per pound. Cents per pound. Cents per yard. 19f 20} 24i 26 • 29V 32i 6.75 6.00 5.50 5.15 4.55 4.15 77 76 75 75 74 73 11.41 12. 67 13.64 14.56 16.26 17.59 686 HISTORY OF PRICES DURING THE WAR. DRILLS. Width. Yards per pound. Sley and pick. Price per pound on basis estab- lished. Price per yard suggested experts. Inches. 30 30 30 30 37 37 36 37 37 30 30 2.50 2.50 2.50 3.25 2.65 2.35 2.28 3.95 3.75 3.00 2.85 July 25, 1918. 72 by 60 70 by 52 68 by 48 68 by 40 68 by 40 68 by 40 66 by 56 68 by 40 68 by 40 68 by 40 71 by 46 Cents. 60.60 58.73 57.48 60.62 61.00 58.86 60.41 69.29 67.67 59.22 59.85 Cents. 24i 23* 23' m 23 25 264 174 18 19f 21 3-LEAr WIDE DRILLS. 40 52 58 59 59 2.40 L90 1.60 1.85 L94 68 by 40 July 25, 1918. 68 by 40 68 by 40 58 by 40 68 ty 40 60.94 61.79 60.41 63.56 64.59 25f 32)r 151 33i DRILLS. 40 37 37 29J 37 3.96 3.25 3.50 2.40 2.00 Aug. 7, 1918. 68 by 40 Aug. 14, 1918. 68 by 40 68 by 40 Oct. 25,1918. 86 by 52 68 by 56 18 20i 19S 25i 304 GRAY DRILLS. 30 30 30 30 30 30 33 344 36 37 37 49 52 52 544 54 56 60 2.45 2.50 3.00 4.00 4.25 5.25 2.50 2.38 2.00 2.75 3.00 L68 L75 1.75 1.70 1.70 L70 - 1.53 Nov. 8, 1918. 76 by 60 68 by 56 68 by 44 68 by 40 84 by 48 60 by 50 72 by 48 68 by 56 68 by 56 68 by 40 68 by 40 72 by 48 64 by 38 68 by 42 68 by 42 70 by 44 70 by 44 70 by 44 24f 23f 20| 16 m 131 24* 25i 28| 22* 21| 3rtJy 34 34-1 35J- 30J 36* 40' GOVERNMENT REGULATIONS RELATING TO PRICES. 687 DUCKS. (July 1, 1918.) Standard wide and sail duck, 37i per cent and 5 per cent from list. Standard Army duck, 33 per cent from list. ENAMELING DUCKS. Width (inches). Yards per pound. Sley pick. Cents per pound. 51i 38 46i S6i. 61 72 1.38 2.00 1.44 July 25, 1918. 84 by 30 84 by 30 84 by 30 84 by 30 84 by 30 84 by 30 61 62 61 62 63 64 FLAT SINGLE FILLING DUCKS. 29 29 8.00 8.00 July 25, 1918. 76 by 28 (1) 54 55 TWISTED FILLING DUCKS. 29 29 8.00 8.00 July 25, 1918. 76 by 28 (») 58 59 SHELTER TE-NT DUCK. Aug. 7, 1918. 36 1.95 62 by 62 2 39 35 3 81 54 by 56 Aug. 22, 1918. 2 36i 35 1.94 34 by 56 75 35 1.94 62 by 62 78.9 1 84 or over by 28. 2 per yard. ' Ounces. /The price as published under Aug. 7, 1918, is in error; quotation of Aug. 22, 1918, is correct.) REGULAR HOSE AND BELTING DUCK. (Aug. 7, 1918.) Cents per pound. Banging from 12 ounces to 36 ounces 58- 10-ounce hose duck- 59 (Sept. 26, 1918.) Hose and belting duck 62| 10-ounce hose duck 64| Wide and sail duck, 371 per cent discount from standard list. Standard Army duck, 31 1 per cent discount from standard list. Single filling duck, classes A, B, and C. Double filling duck, classes A, B, and C. These classifications are described as follows : Class A : To be duck, made of white cotton, without waste or strips, and counting not under 80 by 28. Also qualities equal to Magnolia and Lindale to be in this class. Class B : To be duck, of all clean cotton, and counting not under 72 by 28. .This class is recognized as the standard grade of single filling duck. Class C : To be duck, made to count not under 72 by 28, and containing not over 25 per cent of waste or strips. 688 HISTORY OF PRICES DURING THE WAR. FLANNELS. (Sept. 25, 1918.) MITTEN FLANNELS. Weight (ounces). Cents net at mill. Cents per yard. 3 24.92 252 6 27.34 281 7 31.22 32J 8 35.75 361 10 44.69 46J 9 40.17 411 11 49.31 50i 12 53.76 55f 13 58.13 59J 14 62.72 64| CANTON FLANNELS. Width (inches). Yards per pound. 2.75 2.95 4.00 5-00 Cents net at miU. 26.91 25.25 20.00 16.75 Cents per yard. 27J 26 201 Lighter weights up to 7 in general proportion. FLANNELETTES. (Sept. 3, 1918.) . Division No. 1 : Cents per yard. 1921 light stripes, checks, and plaids 25. 81 1921 dark fancies and grays, North State light stripes, chcclfs, and plaids 25. 81 North State dark fancies and grays 27. 81 Swiss light stripes, checks, and plaids 25.81 Swiss dark fancies and grays 1 27.81 Division No. 2 : Smyrna light sti'ipes, checks, and plaids 2.S. 08 Smyrna dark fancies and grays 23. 08 Saluda light stripes, checks, and plaids 23. 08 Saluda dark fancies and grays 25. 08 Division No. 3 : Rutherford flannel 32^86 Special Government flannel 32. 86 Division No. 4 : Pine 23. 00 Portage 23. GO Division No. 5 : ^ Daisy bleached 27. 75 Daisy colors 28. 75 Malta bleached ^ 27. 75 Malta colors 28. 75 Division No. 6 : ^ Cashmere bleached 24. 11 Cashmere colors 25. 11 1921 bleached 24. 11 1921 colors 25. 11 Division No. 7 : ' Persian bleached 21. 06 Persian colors 22. 06 Defender blpached 21. 06 Defender colors 22. 06 Division No. 8 : - 1,501 bleached : .S3. 43 900 bleached 33. 43 (Maximum price, Aug. 7, 1918.) Cents per yard. Division No. 1: Toile du Nord, Amoskeag A,.F, C, Bates seersucker, Glonkirk zephyrs, rod seal sephyrs 23. 28 Division No. 3 : Amoskeag utility, York dress aingham, red rose Lancaster, apple- web 21. 34 Division No. 4 : Amoskeag 19000, Berwick chambray, Kilburnle gingham, Tomac gingham, white pine chevoit, Essex chambray 23. 28 Division No. 7: Amoskeag staples, Lancaster staples 18.92 (Above prices are all net cash at mill.) > These prices are based on bleached and light colors only. Differential to be given for darks and special shades. * These prices are based on bleached only. Differential to be given for darks and special shades. Prices are all net to mill, with no freight. GOVERNMENT REGULATIONS RELATING TO PRICES. 689 3-LEAF JEANS. (Aug. 7, 1918.) Width (inches). Yards per pound. Sley and pick. Cents per yard. 39 39 39 2.75 3.00 3.10 96 by 64 96 by 64 96 by 64 27i 26 25i GRAY 3-LEAF JEANS. (Aug. 16, 1918.) 39 39 39 3.10 3.00 2.75 96 by 64 96 by 64 96 by 64 25i 26 27i When bleached, price of these goods to be increased IJ per cent. OSNABURGS. PART "WASTE OSNABURGS. Weight (inches). Weight per yard (ounces). Sley and pick. Cents per yard. (Aug. 14, 1918.) 30 7.00 39 by 30 22i 30 8.00 39 by 34 25J 29i 3.33 34 by 34 16i 32 1.88 32 by 28 2fi| 34 1.77 32 by 28 28i 36 3.00 32 by 28 18 30 3.25 32 by 28 m 36 3.60 32 by 28 15-3 30 3.90 32 by 28 Hi 40 1.60 32 by 28 311 40 2.00 32 by 28 25i 40 2.28 32 by 28 22| 40 3.25 32 by 28 17 40 3.50 32 by 28 16 40 3.00 36 by 36 181 CLEAN OSNABURGS. (Nov. S, 1918.) 36 3.00 32 by 28 18i 36 3.25 32 by 28 17 36 3.80 32 by 28 15 40 2.00 38 by 36 (Nov. 9, 1918.) 27 40 2.28 32 by 28 23i CARDED CLOTHS. PLAIN CARDED CLOTHS. (Aug. 16, 1918.) 39 5.00 80 by 88 22 39 6.00 72 by 68 18f 39 6.00 80 by 76 19A 39 5.25 92 by 92 24 39 5.00 96 by 100 25f 39 4.95 96 by 104 26 40 9.00 72 by 60 15i 40 7.70 80 by 72 (Nov. 8, 1918.) 181 29 13.33 56 by 52 91 36 9.00 68 by 64 14iV 36 9.65 72 by 68 141 36 5.82 60 by 60 14A 36 6.25 80 by 80 191 39 8.70 68 by 56 14| 40 8.60 72 by 68 l60 36 4.00 56 bv 60 (July 25, 1918.) 70 36 2.85 48 by 48 2 20J 36 3.00 48 by 48 20 36 3.25 48 by 48 18i 36 3.50 40 by 40 17 40 2.85 48 by 48 211 38,36 4.00 48 by 52 l&J •36 4.00 56 bv 60 17i 36 4.50 48 by 52 15.i 36 5.00 48 by 48 141 36 5.50 48 by 44 m 36 6.00 40 by 40 Hi 36 6.15 44 by 40 12 31 5.00 48 by 48 m 36 4.70 48 by 52 15i 40 5.00 44 by 44 m 40 4.25 44 by 40 15J 40 3.75 48 by 44 (Aug. 7, 1918.) 17| 36 3.60 64 by 68 20 36 3.50 64 by 68 20i 36 3.70 64 by 68 m 40 3.15 64 by 68 (Aug. 30, 1918.) 22J 31 5.00 48 by 48 (Sept. 3, 1918.) 3 134 40 2.50 48 by 48 23J 40 2.70 48 by 48 22i 40 2.35 48 by 48 25 32 6.25 40 by 40 m 36 5.00 64 by 64 16 31 4.50 44 by 44 (Sept. 5, 1918.) 14i 34 6.00 40 bv 40 (Sept. 25, 1918.) *m 40 2.00 40 by 40 27J GRAY SHEETINGS. (Nov. 8, 1918.) 26 4.35 48 by 48 14f 36 2.95 52 by 56 21 36 3.15 69 by 72 22J 36 3.90 40 by 38 151 36 4.00 48 by 48 40 2.70 44 by 44 21f 40 3.60 56 by 60 19i 48 2.25 48 by 48 27J 54 2.00 44 by 44 303 54 2.00 48 by 48 31 64 2.25 60 by 60 . 32J 1 Cents per pound 2 Net price. s Net f. o. b. mill. * F. o. b. mill. WIDE SHBETINGS. The price is 80 cents per pound net cash f. o. b. mill. This price divided by the weight of the 11/4 brown will give the yardage price of the 11/4 brown and 10/4 bleached ; div'dc I by the weight of 10/4 brown will give the yardage price of 10/4 brown and 9/4 bleached, and so on through the various widths. CARDED OIL CLOTH SHEETING. Width, (inches.) Weight per yard. Sley and pick. Cents per yard f . 0. b. mill. (Nov. 4, 1918.) 5U 4.75 40 by 40 17| 51i 4.50 40 by 40 18§ 51i 4.25 40 by 40 19 5U 4.75 44 by 40 18 51J 4.50 44 by 40 m 51J 4.25 44 bv 40 19i 58 4.25 44 bv 40 20J 60 4.18 40 by 40 20J 60 3.65 44 by 44 221 GOVERNMENT REGULATIONS RELATING TO PRICES. 695 TICKING. (Sept. 25, 1918.) Class 1 is Intended to cover the various blue and white and fancy twill tickings in thp •heavier weights, but not to include the so-called " Straw ticks " • -^ '""" ncKings in xne 32-inch, 8 ounces, 80 by 72, class 1, Cordis A, C, E, 38.558 cents net to mill 32-inch, 8 ounces, 80 by 70, class 1, A, C, A Amoskeag. 32-inch, 2 ounces, 76 by 68, class 1, A, O, A Eagle and Phoenix. 32-inch, 8 ounces, 88 by 58, class 1, Bowling Brook. Class 2 is intended to cover the blue and white and fancy twill tickings in the liehter weights, known as " Straw ticks " : » s 30-inch, 3.75 ounces, 73 by 40, class 2, Thorndike C, 20.13 cents Class 3 is intended to cover the sateen tickings in all weights : 33-inch. 8 ounces, 100 by 72, class 3, Conestogo, R. & D. and B. & D 40 4975 cents Class 4 is intended to cover the hickory stripes, a fabric closely affiliated with tickina which it seems best to include : ^' 28*-inch, 2.85 ounces, 72 by 42, class 4, Thorndike E, 8 by 4, hickory stripes, 27.16 PILLOW TUBING. (Sept. 25, 1918.) The yardage price of the bleached cloth is to be found by dividing 85 cents per pound by the yards per pound of the gray cloth from which it is made. f f u TWILLS. 4-LEAF TWILLS. Width (inches). Yards pei pound. Sley or pick. Cents pei pound. Cents per yard. (July 25, 1?18.) 30 2.00 88 by 48 56.84 2S| 30 2.15 88 by 48 57.91 27 30 2.31 88 by 48 59.04 25.J 30 2.40 88 by 48 59.68 241 30 2.50 88 by 38 58.71 23i 3,0 2.65 88 by 38 59.90 22| 30 2.85 88 by 38 61.21 2ll 30 3.00 88 by 38 62.20 20i 30 3.25 88 by 38 63.81 191 59 1.76 76 by 44 (Sept. 25, 1918.) 62.94 35J 37 37 37 37 1.75 2.00 2.10 2.35 86 by 44 86 by 44 86 by 44 76 by 42 32| 29-1 28f 25 J 37 2.35 84 by 42 (Oct. 25, 1918.) 26i 29i 2.65 108 by 52 25| 30 2.25 108 by 52 2^ 37 1.85 108 by 52 34? (Nov. 8, 1918.)^ 29 2.00 104 by 54 31 29i 2.15 104 by 48 2n 20| 26 23.1: 29| 29i 29i 29^- 30 3.00 2.50 2.50 2.00 84 by 37 104 by 48 88 by 38 98 by 42 30 30 30 2.00 2.20 2.31 88 by 42 98 by 42 108 by 48 28.i 27| 28 30 30 2.70 3.00 80 by 37 98 by 42 ■ 21J 22J 36 1.90 88 by 48 31 J- 37 1.50 76 by 42 37| 32' 37 1.75 76 by 42 37 1.83 104 by 42 34f 29!i 31 37 39 2.00 1.90 76 by 42 76 by 40 48 50 58 58 58 1.54 1.48 .96 1.30 1.35 76 by 42 76 by 42 76 by 42 76 by 40 68 by 56 37Z 399 59 45.',- 45.i 59 59 1.40 2.00 48 by 64 88 by 56 (Nov. 9, 1918.) 431 37 29i 30 2.50 3-00 88 by 38 98 by 42 23i 22| 43i 59 1.40 48 by 64 696 HISTORY OF PRICES DURING THE WAR. T \VI LLS— Contmued . 3-LEAF TWILLS. Width (Inches). Yards per pound. Sley to pick. Cents per pound. Cents per yards. 37 36 38 i 39 39 39 39 39 43 43 43 43 43 301 31" 31 31 39 39 39 4.50 4.20 3.10 5.10 4.80 4.50 4.25 4.00 4.30 4.50 4.00 6.00 4.75 3.85 3.85 4.00 4.20 3.25 5.10 5.10 (Sept. 5, 1918.) 96T)y 60 60 by 80 96 by 64 64 by 64 64 by 72 68 by 76 68 by 76 68 by 76 68 by 60 68 by 76 68 by 76 64 by 48 68 by 52 (Nov. 8, 1918.) . 68 by 76 68 by 80 64 by 72 68 by 80 68 by 76- 64 by 104 Nov. 9, 191(8.) 64 by 104 19i 19H 24| 17 ISA 19J 191 20f 19| 20 21i| 14.V i7e 19i 191 m 23| 23i ALBERT TWILLS. 35 5.50 35 5.10 3g 4.40 35 4.85 35 4.00 35 5.40 35 2.72 35 3.00 m 4.00 40 2.38 43 2.22 (Sept. 9, 1918.) 64 by 72 64 by 80 64 by 80 64 by 88 (Nov. 8, 1918.) 64 by 80 64 by 72 72 by 120 72 by 120 64 by 80 72 by 120 70 by 120 1&^ 17f 19ts 18J 19| 16 29i 27i 20-1 33i 351 Width (inches). Yards per pound. Sley or pick. Per pound. Cents per yard. 30" 2.10 (July 25, 1918.) 88 by 56 60.90 29 33J 9- fin (Oct. 25, 1918.) 68 by 86 26 VENETIANS. (Sept. 3, 1918.) SINGLE YARN. 41 cents on N-120, 35 inches, 156 by 64, 31.8: 30/1 all combed rov. twist warp. 33/1 all combed filling. 43i cents on N-261. 35 inches, 156 by 64, 2.85: 30/1 all combed rov. twist warp. 23/1 all combed fiUing. ■J 4 cents on P-322, 38 inches, 156 by 64, 2.90: 30/1 all combed rov. twist warp. 33/1 all combed fllUng. 46| cents on P-324, 38 inches, 156 by 64, 2.63: 30/1 all combed rov. twist warp. 23/1 all combed filling. GOVERNMENT REGULATIONS RELATING TO PRICES. 697 VENETIANS— Continued. SINGLE YARN COMBED VENETIANS. (Nov. 4, 1918.) Width (inches). Yards per pound. Sley or pick. Cents per yard. 35 3.10 156 by 64 411 35 3.00 156 by 64 42| 36 3.00 156 by 64 42f 36 2,77 156 by 64 44i 37 2.80 148 by 64 44f 38 2.66 144 by 64 46i 38 2.75 156 by 64 45i 38 2.85 156 by 64 44| TWO-PLY WAEP COMBED VENETIANS. (Nov. 4, 1918.) 35 38 2.85 2.63 156 by 64 156 by 64 58 60 TWINE. WRAPPING TWINE, (Aug. 14, 1918.) Prices for No. 1 quality wrapping twine of 8's or coarser yarn : Cents per pound. Anv ply wound on cones or tubes, packed in barrels or bales or in cases, in bulk- 61 Any ply wound in 8-ounce or heavier balls, packed in barrels or cases, in bulk — blS Any ply wound in small balls weighing 5 or 6 to the pound, packed in barrels or cases, in bulk r-T" — "^ ^ Any ply wound in small balls weighing 5 or 6 to the pound, packed in 5-pound or 10-pound cotton-cloth sacks and 100 pounds in a bale o4 Terms. — Prices are f. o. b. cars shipping point, net cash from date of shipment and include cost of selling. (Dec. 12, 1918.) [Covering sales made Nov. 17, 1918, to Jan. 1, 1919.] No changes made, schedule same as above. SEINE AND SAIL TWINE. (Sept. 3, 1918.) For United States standard seine twine in standard skeins, packed in bulk or in 5-pound or 10-pouud pads, 100-pound bales, basis No. 15 to 42 medium laid, 62 cents per pound. Differentials on other sizes and lays, as at present established. iSxtras. For winding in 8-ounce or heavier balls, in bulk, 1 cent above price of skeins. For winding on 1-pound or heavier tubes, in bulk, 1 cent above price of skeins. For winding in 4-ounce balls, in bulk, 2 cents above price of skeins. For winding in 2 to 3 ounce balls, in bulk, 4 cents above price of skeins. For packing tubes or balls in 5-pound or 10-pound muslin sacks, 2 cents above price for bulk packing. . „ ,_ • i , ■ Exact-weight skeins, 4 ounces or heavier, 2 cents above price regular skeins. For export packing, 1 cent above price regular packing. . ^ ^ ^ For broken pas schedule lasted until August 31, 1918, after which no price control was exercised. Schedule A. HEMP OR MANILA FIBER. Grade A, $30.75 per picul in Manila, equal to 22 36 cents per pound. Grade B, $29.75 per picul in Manila, equal to 21.63 cents per pound. Grade C, $28.87| per picul in Manila, equal to 21 cents per pound. Grade D, $28.12J per picul in Manila, equal to 20.45 cents per pound. Grade B, $26.87i per picul in Manila, equal to 19.54 cents per pound. Grade F, $25.62J per picul in Manila, equal to 18.63 cents per pound. Grade I, $23.37i per picul in Manila, equal to 17 cents per pound. Grade J, $19.62i per picul in Manila, equal to 14.27 cents per pound. Grade SI, $25.62J per picul in Manila, equal to 18.63 cents per pound. Grade S2, $23.50 per picul in Manila, equal to 17.09 cents per pound. Grade S3, $20.62| per picul in Manila, equal to 15 cents per pound. Grade G, $20,121 per picul in Manila, equal to 14.63 cents per pound. Grade H, $18,871 per picul in Manila, equal to 13.72 cents per pound. Grade K, $14.50 per picul In Manila, equal to 10.54 cents per pound. Grade L, $13.50 per picul in Manila, equal to 9.81 cents per pound. Grade M, $9.75 per picul In Manila, equal to 7.09 cents per pound. Grade DL, $6,121 per picul in Manila, equal to 4.45 cents per pound. Grade DM, $4.25 per picul in Manila, equal to 3.09 cents per pound. CEBU MAGUEY. Grade 1, $12.75 per picul in Manila, equal to 9.27 cents per pound. Grade 2, $11.50 per picul in Manila, equal to 8.36 cents per pound. Grade 3, $9 per picul in Manila, equal to 6.54 cents per pound. MANILA MAGUEY. Grade 1,~$12.25 per picul in Manila, equal to 8.91 cents per pound. Grade 2, $10.25 per picul in Manila, equal to 7.45 cents per pound. Grade 3, $8.50 per picul in Manila, equal to 6.18 cents per pound. 1 War Trade Board Ruling, 523. 2 In releasing orders for kapok, the Navy no longer requisitioned supplies and manu- facturers were allowed to sell their stocks on the open market. 125547°— 20 45 706 HISTORY OF PRICES DURING THE WAR. Schedule B. hemp or manila fiber. Cents per pound. A 32J B 3U C 301 D, 25 per cent over good current SOJ D, good current 30 E, 75 per cent over fair current 29?. E, 62S per cent over fair current 201 E, 50 per cent over fair current 29 F, 371 per cent over fair current 28J F, 25"per cent over fair current 28 I, 12J per cent over fair current 26.5 I, fair current 26 J, 50 per cent over superior seconds 23J si ___- 28 52 26i 53 24 G, soft superior seconds 24 G, soft good seconds 23i H, soft reds 22J K 19 L 18 M 15 DL 12 DM 10 CEBD MAGUET. Grade 1 17J Grade 2 16 Grade 3 14i MANILA MAGUEY. Grade 1 17 Grade 2 15* Grade 3 14 MANILA CONTROL PRICES. Grades. Prices in cents per pounds fixed Mar. 25, 1918, in Manila. Prices in pesos Mar. 25, 1918, in Manila. Prices in pesos July 26, 1918, in Manila. \ 22.36 21.63 21.00 20.45 19.54 18.63 14.63 13.72 17.00 18.63 17.09 15.00 14.27 10.54 9.81 7.09 4.45 3.09 61.50 59.50 57.75 56.25 53.75 51.25 40.25 37.75 46.75 51.25 47.00 41.50 39.25 29.00 27.00 19.50 12.25 8.50 51.250 B 49.625 C 48. 125 D 46. 875 E 44. 750 F . 42.750 G 33.500 H 31.500 I 38.500 Si '.. 42. 750 S2 39. 125 S3 34. 625 J 34.000 K 28.500 L 27. 000 M. 19.500 DL 12.250 DM 8.500 The above are all first-cost prices per picul in pesos. RAGS. (Aug. 19, 1918-Dec. 7, 1918.) Maximum prices for rags were established by the price-fixing committee on different grades of rags, under three dates in xVugust, 1918. Each schedule was to remain in effect until October 1, 191S, and thereafter, pending the compilation and submission of cost data, by the Federal Trade Commission. These fixed GOVEKNMENT REGULATION'S RELATING TO PRICES. 707 prices were net f. o. b. shipping point and were to apply to sales made both to the Government and to the public. In October, 1918, new prices, lower than those in force at that time, wer(3 established, but publication was withheld and the prices were never announced.' VARIOUS GRADES OF RAGS. (Aug. 19, 1918.) Cents Grade. per pound. Mixed softs 21i Blue serge .. 25 Brown serge 32 Green serge ^ 32 Red serge 28 Black serge ^ 22 White softs 52 White flannels and serges 50 White knits 56 Red knits , 27J Blue knits, mixed '- 26| Silver gray knits 45 Brown knits 32 Fancy knits ; 21 Black dressed knits 30 Light hoods 38 Light gray underwear 16 Fine light merinos 82 Fine dark merinos 25 Coarse dark merinos with serges 16 Coarse light merinos with serges 24 Thlbets 281 Cents Grade. per pound. Rough cloth 83 Skirted cloth, ripped from rough cloth_ Hi Skirted cloth, sorted from mixed rags_ 10 Light skirted cloth 155 Black and white skirted cloth 17 Fine light skirted cloth ISJi Brown skirted cloth 10 Dark skirted cloth 8J Black skirted cloth . 10 Blue skirted cloth , 10 Tan skirted cloth 25 Light skirted worsted 25 Blue skirted worsted , 21 Black skirted worsted 22 Brown skirted worsted 23 Dark skirted worsted , 17 Wool carpets , 10^ Soft-back carpets 4J Mixed linseys 4i White linsey flannels 7 Wool bodies-. 83 Skirted delaines 6S CLIPS (Aug. 21, 1918.) The following prices were to be paid by the rag collector to the cutter-up. They were based on high standard of grading and not to be paid for inferior packing : MEx's WEAR. Cents per pound. Men's black and blue worsteds 4g Fine clothing-house clips, light weight l 39 Fine merchant tailor clips 38 Medium clothing-house clips, light weight ' 37 Ordinary clothing-house clips, including cotton warps 32 All-wool overcoating 23 Medium overcoatings free from cotton warps 20 All-wool mackinaws 17 Mixed overcoatings, Including cotton warps ' 10 Cotton-warp clothing clips 5 All-wool flannels 25 women's wear. Fine cloak and suit house, light weight mixed clips including serges 33 Fine cloak and suit house, light weight mixed clips without serges 25 All-wool mixed serges ~ 40 All-wool cloakings 20 Cotton warp serges -_ g Cotton warp cloak and suit clips I 5 ^All fixed prices were discontinued after Dec. 7, 1918. prices were issued by the price-fixing committee. The appended schedules of 708 HISTORY OF PRICES DURING THE WAR. NEW WOOLEN CLIPS. Cents per Grade. pound. Black worsted 65 Blue worsted 62 Blue-worsted edges 50 Brown worsted 57 Black and white worsted 5G Light worsted 54 Fine light worsted and clips 50 Fine lights 45 Fine dark worsted 48 Fine dark worsted and clips 47 Fine mixed clips 44 Mixed dark clips 40 Mixed clips 35 Medium mixed clips 32 Heavy-weight clips 28 Coarse dark clips 23 Coarse light clips 25 Ordinary light clips 20 Black and white 30 Dark gray oxford 26 Plain black clips 26 Blue uniform clips (without edges;) 38 Fancy mackinaw 20 Union 8 Light union 11 Light blue serge 52 Black serge 50 Cents per Grade. pound. Blue serge 50 Brown serge 50 Green serge 50 Red serge 50 Tan serge 60 Black and blue serge edges '35 Dark serge 35 Light serge 45 White serge 70 Blue cheviot 28 Red cheviot 28 Brown cheviot 28 Green cheviot-. 28 Black cheviot 28 Light blue cheviot 28 Tan cheviot 35 Light homespun 35 Medium homespun 30 Ordinary homespun • 25 Light flannel 35 Blue flannel 35 Red flannel 35 Green flannel 36 French flannel 27 Mixed flannel 25 Black flannel 33 Reworked wool or fiber. (Aug. 23, 1918.) These prices include carbonizing, picking, and carding. If dyeing Is added, the charges must not exceed 5 cents for black or olive drab (khaki) without special permit from the fiber administrator. Cents Grade. per pound. Blue serge 48J Brown serge 58 Green serge 58 Red serge 55 Black serge 44i White softs 86 White flannels and serges 83 White knits 92 Red knits 59 Blue knits, mixed 57 Silver gray knits 93 Brown knits 66 Fancy knits 48J Black dressed knits 63 Light hoods ■ 76 Light gray underwear 50 Fine light merinos 58J Fine dark merinos 48 Coarse dark merinos with serges 38 Cents Grade per pound. Coarse light merinos with serges 50 Thlbets 50i Light skirted cloth 39 Black and white skirted cloth 42 Fine light skirted cloth 445 Brown skirted cloth 29 Dark skirted cloth 2T Black skirted cloth 29 Blue skirted cloth 29 Tan skirted cloth 48 Light skirted worsteds 48i Blue skirted worsteds ^ 43 Black skirted worsteds 441 Brown skirted worsteds 46 Dark skirted worsteds 39 Wool carpets =. 30 Soft black carpets 33J Skirted delaines 36 SILK. (Sept. 19, 1918-Dec. 20, 1918.) The War Trade Board, on September 3, 1918, voted to revoke all outstanding licenses for the importation of silk noils, silk-noil yarns, garnetted silk, and silk waste. This action was effective for shipments after September 10, 1918.^ Importers were required to give an option on all new licenses to the United States Government. The United States Government was permitted to purchase these restricted commodities at a price 2 per cent above the cost at the foreign port of shipment, as shown by the consular invoice, including all charges except prepaid freight and prepaid insurance. These provisions were administered by the Silk Association of America. The ruling of the War Trade Board granting this option to the Government was rescinded on December 20, 1918.' » War Trade Board ruling, 237. 'War Trade Board ruling, 434. GOVERNMENT EEGULATIONS RELATING TO PRICES. 709 wool; (Dec. 15, 1917-Jaii. 1, 1919.)^ The formal price fixing of wool began on May 1, 1918. The regulations per- taining to wool prices fall under one or another of the following heads and are so arranged in this compilation : Government regulations for the importa- tion of wool, issued by the War Trade Board ; Government regulations for han- dling the 1918 clip, issued by the War Industries Board ; Government wool prices effective May 1, 1918 ; Government issue prices to manufacturers holding Government contracts. Disposal of Government stocks. — On December 9, 1918, the Director of Pur- chase and Storage of the War Department made the following plan for dispos- ing of the Government supplies of wool. Limited amounts of wool were to be sold from time to time at public auction. A minimum reserve price was estab- lished, below which no bids were considered. The first auction was held on December 18, 19, and 20, 1918. Prices offered by bidders dropped at each auction, and on January 24, 1919, the following announcement appeared : The War Department authorizes the following statement from the office of the Director of Purchase, Storage and Traffic : Many inquiries have been received from wool dealers, wool growers, and wool manufacturers in regard to the policy of the Government in disposing of the stocks of wool held by the War Department. In answer to these inquiries, the War Department states as follows: First. It is the intention of the War Department to continue to sell at public auction such wools as manufacturers may require, with a minimum reserve price the equivalent of the British civil-issue price. This basis of the British civil-issue price will be maintained as the minimum reserve price until July 1, 1919. Second. It is not the intention of the War Department, in the sale of wool now owned by the Government, to compete with the domestic producers of wool. It is the intention of the War Department, on July 1, 1919, when the domestic clip will probably be arriving in the markets in sufficient volume to supply the wants of manufacturers, to discontinue offering at auction or other- wise until such a time as the domestic producer shall have had ample oppor- tunity to market his 1919 clip, November 1, 1919, those grades of wool that would compete with the product of domestic wool growers remaining in the hands of the Government." Removal of import restrictions. — Ruling No. 426, bureau of imports of the War Trade Board, issued on January 8, 1919, is given below : Wool, wool tops, )wUs, yarns, and waste. — On and after January 10, 1919, licenses may be issued where the applications therefor are otherwise in order for the importation of wool, wool tops, noils, yarns, or waste from any non- enemy country. Sucli licenses will contain the provision requiring indorsement of the bill of lading to the Textile Alliance (Inc.). The Textile Alliance (Inc.) will no longer require the giving of an option to the Government to purchase the commodities imported. Hereafter it will be imnecessary to refer to any applications for the impor- tation of these commodities to the office of the Quartermaster General. Under the foregoing rules, licenses may now be issued to importers other than the Quartermaster General for these commodities from the Argentine, Uruguay, and South Africa. Ruling No. 208, issued July 12, 1918, is hereby revoked. By a further I'uling effective April 29, 1919, the importation of wool under a general import license was permitted from all countries except Germany, Luxemburg, Hungary, and those parts of Russia under Bolshevik control. 1 There ^ere no Government purchases of the 1919 clip, but all stocks of wool on hand at the time of the armistice were disposed of by the War Department. ^ Federal Trade Information Service, Jan. 25, 1919. 710 HISTOEY OF PRICES DURING THE WAR. REGULATIONS FOR THE IMPORTATION OF WOOL. (Announcement, Dec. 15, 1917.) The War Trade Board announces that the following regulations will apply as of December 15, 1917, to the importation of wool from all foreign sources : " 1. Applicants for import licenses will be required to sign an agreement con- taining the following provisions : "A. The applicant agrees that he will not sell the wool covered by Applica- tion No. , or any other wool of either foreign or domestic origin, to any person other than a manufacturer without the consent of the War Trade Board ; and that, in the ev(>ut of a sale to a person other than a manufacturer with such consent, he will exact from his purchaser a similar agreement. " B. The United States Government shall have, and it is hereby granted, an option to purchase, at the price and on the terms hereinafter set forth, all or any part of the wool covered by Application No. , for 10 days after custom- house entry thereof; and thereafter on such portion thereof as shall be at any time unsold until the whole amount thereof has been sold by the intporter. In the event of the exercise of such option, the basis of price to be paid for the wool shall be equivalent to 5 per cent less than the basis of price of July 30, 1917, for similar wool, as established by the valuation committee of the Boston Wool Trade Association, the actual price of each lot to be! determined by a com- mittee to be appointed jointly by the Boston Wool Trade Association and the United States Government. " 2. These regulations shall not apply to any wool purchased abroad on or before December 15, 1917." Applicants for import licenses will therefore file with their first application copies of all their contracts outstanding on December 15, 1917, for the impor- tation of wool from foreign sources, and as to which all wool contracted for had not been entered at any United States port of entry December 15, 1917, and showing in detail the amount of wool already shipped and the amount of wool yet to be shipped thereunder. The War Trade Board in fixing the effective date of the foregoing regulations as of December 15, 1917, had as its object the avoidance of any retroactive effect which would be burdensome and embarrassing, and earnestly appeals to wool importers and to manufacturers of woolen products so to conduct their transac- tions with respect to the stock of wool now* on hand and the ^importations now en route that further speculation, hoarding, and the continuation of fictitious prices may be avoided. It is hoped that the effect of these regulations will be to clarify the situation and renK)ve tlie causes for anxiety which have occasioned the abnormal and illogical inflation of prices for that commodity. The price of wool has advanced in the United States by a percentage greatly in excess of such price advances in other countries. The price in England is fixed at 55 per cent in excess of prewar prices. The price in the United States has advanced 200 per cent above the prewar level. It is true that the demand for wool and products thereof has increased as a, result of the military needs of the United States, but the demand in other countries has been relatively as great. Those countries, however, have introduced a system of governm'ental control, and this has prevented the abnormal inflation which the absence of such control invites when the regular' course of commercej is disturbed by war. Governmental control in other countries has allayed the sense of uncertainty as regards the future, which in this country has become almost hysterical and has occasioned speculation between importers. Cloth manufacturers have been impelled by fear to carry abnormal stocks of wool and to contract with dealers or importers for unusual quantities for far forward delivery. Manu- facturers of clothing have also been infected by a like dread, inciting the pur- chase of cloth exceeding in volume their reasonable needs. Such processes have brought about an artificial demand, far in excess of actual consumption, the inevitable effect of which has created a fictitious price condition. This has happened at a time when the wool supply in the country is known to be ample for present needs and for a sufficient period in advance to remove any reasonable apprehension as to the ultimate available supply. Statistical data collected by the Government, corroboi'ated by independent investigations of the wool industry, clearly indicate that no wool shortage exists, either in the world's supply or in the amount on hand in the United States, notwithstanding the increased consumption for military purposes. The GOVERHMENT REGULATIONS RELATING TO PRICES. 711 clip in most countries has steadily increased since the outbreak of the war, because sheep raisers, stimulated by the higher returns for wool, have permitted the flocks to increase, and it may be reasonably expected that this increased production will continue. The consumption of wool during the year 1918 will be little, if any, greater than it was during the year 1917, for the reason that textile manufacturers have been producing well up to the limit of their reasonable capacity, and, further, because of the increased use of substitutes for wool in manufacturing processes. The Commercial Economy Board has begun to exert its influence in applying the principle of conservation to the consumption of wool, and will continue to induce the curtailment of its use for less essential products ; that is to say, the consumption of wool will be directed into needful and withheld from unnecessary channels. This action as a matter of course will tend to diminish the consumption and further to maintain the present safe margin of supply. The War Trade Board has invited and confidently awaits the cooperation of the wool dealers and the cloth and clothing manufacturers of the country in causing the abandonment of the practice of far forward purchasing and the unnecessary accumulation of stocks, which practice a mistaken estimate of the wool supply of the coimtry and of the world has incited them to follow. Such hoarding is evidently dangerous, because of the resultant price inflation. The continuance of this practice will threaten the holders of abnormal stocks or those who are committed for far forward deliveries with a severe loss when the inevitable period of readjustment in commodity values is at hand. It is hoped that the action of the War Trade Board in providing that the Gov- ernment of the United States may take advantage of the option contained in all import licenses issued on and after December 15, 1917, to purchase importa- tions of wool at a price 5 per cent below that of the Boston market as of July 30 last, will stabilize the market, encourage the importations of wool to con- tinue in the accustomed manner, check the price movement toward the breaking point, and permit of an orderly recession toward a less dangerous level. The bringing about of these conditions through the cooperation of the trade at large with the War Trade Board will enable the various interests concerned so to adjust their operations as to avoid what might otherwise lead to a serious catastrophe. The procedure of the War Trade Board in this, as in all other regulations instituted by it, necessarily is designed to attain greater national efficiency through the distribution of imported commodities, but the board is likewise desirous of accomplishing this result with the least disturbance to the legitimate course of industry, understanding that the harmonious coordination of all the energies of the Nation is the best guaranty for the successful termination of the war. More rigid regulations became effective January 14, 1918: The War Trade Board, after due consideration, has decided to supersede its regulations of December 15, 1917, affecting the importation of wool and deal- ings in foreign and domestic wool and to promulgate in their place and stead certain other regulations effective as of January 14, 1918. Pursuant to such decision, the War Trade Board hereby withdraws the said regulations of December 15, 1917, and in their place and stead promulgates the following regulations, effective on and after January 14, 1918 : First. All importers of wool will sign, before the delivery or release of any imported wool to them, an agreement or guaranty containing among other things provisions in substantially the following form : That the United States Government shall have, and is hereby granted, an option to purchase at the price and on the terms hereinafter set forth all or any part of the wool covered by this guaranty for ten (10) days after custom- house entry thereof; and thereafter to purchase such portion thereof as shall be at any time unsold by the importer until the whole amount thereof has been sold. In the event of the exercise of such option the basis price to be paid for the wool shall be equivalejit to five (5) per cent less than the basis of price of July 30, 1917, for similar wool, as established by the valuation com- mittee of the Boston Wool Trade Association, the actual price of each lot to be determined by a committee appointed jointly by the wool trade and the United States Government. This option shall not apply to any wool purchased abroad before December 15, 1917. 712 HISTORY OF PRICES DURING THE WAR. That tlie importer will neither export any merchandise in class A or class B of domestic or foreign origin, as hereinafter described, nor transfer ownership or control thereof to or for the benefit of any person or persons outside the United i^tates without first obtaining an export license from or the consent of the War Trade Board. That the importer will not sell to any person or persons in the United States any merchandise in class A of domestic or foreign origin, as hereinafter de- scribed, without first obtaining the purchaser's agreement, in form satisfactory to the War Trade Board, and the consent thereon of the War Trade Boanl, which consent is to be applied for through the Textile Alliance (Inc.). That tlie importer will not sell or deliver to any person or persons in the United States any merchandise in cl-ass B of domestic or foreign origin, as hereinafter described, without rendering to the purchaser at or prior to the time the merchandise is shipped or delivered a written invoice thereof con- taining the following conditions to be fulfilled by such purchaser : That the purchaser will neither export such merchandise nor transfer own- ership or control thereof to or for the benefit of any person or persons outside the United States without first obtaining an export license from or the consent of the War Trade Board. That tlie purchaser will report through the Textile Alliance (Inc.) to the War Trade Board at the end of each month all sales of such merchandise. That the purchaser will not resell such merchandise to purchasers in the United States excepting under the same conditions. Description of class A and class B merchandise : Class A: Wool; animal hair suitable for spinning or weaving; tops of wool or of animal hair ; wooled skins ; skins of sheep or of goats or of lambs or of kids bearing hair suitable for spinning or weaving. Class B : Noils of wool or of animal hair ; yarn of wool or of animal hair ; waste of wool or of animal hair; animal hair unsuitable for spinning or weav- ing ; woolen rags ; jute wrappings or coverings when i-eceived as wrappings or coverings of merchandise listed in class A or class B above. Second. Purchasers of class A merchandise from importers will sign an agreement or guaranty containing, among othe" things, all of the provisions above set forth, with the exception of the provision giving an option of pur- chase to the United States Government. New rulings were announced in the AVar Trade Board Journal for August, 1918: The supply of wool in the United States has been gradually decreasing owing to the enormous demands for military requirements and because of the short- age in ocean tonnage for transporting w^ool to this country, and it is evident there Mdll not be sufficient wool to take care of both civilian and military needs unless some comprehensive plan is adopted for purchasing and importing the necessary supply. It is apparent that under the present system of private transactions in wool it is difficult to insui-e the utilization thereof in the best interests of the coun- try, and likewise difficult for individuals to secure the necessary tonnage be- cause of lack of assurance to the Shpping Board that the wools imported will be used for the national interests. The War Trade Board on July 12, 1918, after consulation with the War In- dustries Board and the War Department, therefore adopted the followdng ruling : 1. All outstanding licenses for the importation of wool from Uruguay, Argen- tina, and South Africa are revoked as to ocean shipments made from abroad after July 28, 1918. 2. Hereafter no licenses for the imiX)rtation of wool from the countries above referred to for shipment from abroad after July 28, 1918, will be issued for the remainder of the present calendar year, except to the Quartermaster General of the United States Army. (W. T. B. R. 166.") GOVERNMENT REGULATIONS FOR HANDLING WOOL CLIP OF 1918. Tlie AVar Industries Board has fixed the prices of the 1918 clip of wool, as established by valuation committees and approved by the Government, as those established on July 30, 1917, at Atlantic seaboard markets. These values are figured on scoured basis. GOVEENMENT KEGULATIOl^S KELATING TO PRICES. 713 EIGHTS OF THE GOVERNMENT. The Government shall have a prior right to acquire all of the 1918 wool clip, or any portion thereof which it may require, at the prices fixed by the War Industries Board. The remainder will be subject to allocation for civilian purposes under the direction of the War Industries Board. A very large portion of the wool-manufacturing machinery working on Gov- ernment contracts is located close to the Atlantic seaboard, and in order to avoid the possibility of railroad delay and congestion late in the season, when the crops are moving, it is desirable and necessary that the wool clip shall be collected as soon as possible at points near to the manufacturing centers. For these reasons it has been considered advisable to designate as distributing centers those centers which are close to points of consumption and which have the necessary facilities for handling wool. NECESSITY FOR CONCENTRATION. The necessities of the Government at this time are such as to require the use of all existing agencies for concentrating the wool near the centers of con- sumption. Therefore all the m^ooI of the 1918 clip must be distributed through approved dealers in approved centers of distribution. APPROVED DEALERS DEFINED. Approved dealers shall be those dealers authorized by the War Industries Board to handle wool who are located in the distributing centers and who buy from growers direct, through agents, or from country merchants ; and also those dealers authorized by the War Industries Board who are located in wool- growing districts, and who buy direct from growers and resell, or consign to the dealers in distributing centers. Approved distributing centers are the usual well-recognized points of dis- tribution. CLASSES or WOOL. In a general wav, the clip may be divided into fleece wool a^id territory wool. Fleece wool shall be considered as that which is grown in the States east of the Mississippi River, and also the States of Minnesota, Iowa. Missouri, Arkansas, and Louisiana, and also those parts of Kansas, Nebraska, North Dakota, and South Dakota, and other localities where the same general con- ditions prevail. All wool not listed as fleece wool shall be considered terri- tory wool. . -, -, ^ , In order that the collection of the clip may proceed m a rapid and orderly manner, the following regulations are promulgated by the Wool Division of the War Industries Board : Fleece Wool Regulations. compensation of grower and dealer. Approved dealers shall be entitled to a gross, profit in no case to exceed 1^ cents per pound on the total season's business, this profit to cover all expenses from grower to loading wool on board cars. The grower shall receive fair prices for his wool based on the Atlantic sea- board price as established on July 30, 1917, less the profit to the dealer, as stated above, and less freight to seaboard, moisture shrinkage, and interest. In no case shall this be construed to mean that there shall be more than li cents gross profits made from time wool leaves growers' hands until it arrives at the distributing center. On consignments forwardefl to distributing centers the prices to be paid for the wool to the approved dealers therein shall be those established by the valuation committee on Atlantic seaboard values of July 30, 1917, to which shall be added a commission of 4 per cent to be paid by the Government, if bought by the Government, or by the manufacturer to whom the wool is allotted for other tlian Government purposes. This commission is to include grading and other expenses of handling. The consignor shall be charged with the freight on his shipment and interest on all advances made for his account to the date of the arrival of his wool at a distributing center, as shown by the railroad receipt. 714 HISTORY OF PRICES DURING THE WAR. On any lot remaininfi unsold in his possession for a longer period than six months the dealer shall be entitled to charge storage and insurance at the market rate, and this additional charge shall be added to the price of the wool. POOLING BY GROWERS IS ADVISED, Growers who desire to do so will be allowed to pool their clips in quantities of not less than miuinium carloads of 16,000 pounds and consign the wools so pooled as one account to any approved dealer in any approved distributing center. Growers are urged to adopt this latter course through county agents or others, thus eliminating the profits of one middle man. GOVERNMENT PRICE. Approved dealers in approved distributing centers will be required to open and grade all their purchases or consignments as rapidly as possible after the arrival of wool at point of distribution. Prices on all wools, as soon as graded, will be fixed by a Government valuation committee appointed for that purpose in the different distributing centers. Prices to be paid by the Gov- ernment at distributing centers for such wool as it may require are to be those established as of .July 30, 1917, at the Atlantic seaboard markets. In addition to said prices the Government is to pay a further sum equal to 4 per cent of the selling prices to cover compensation or commission to approved dealers for their services in collecting and distributing wool. On wool not taken by the Government for its own use and which may be allocated for other uses, prices will also be fixed in accordance with July 30, 1917, values at Atlantic seaboard markets, and on such wool approved dealers shall be entitled to a commission or compensation of a sum equal to 4 per cent of the selling price, and this commission or compensation shall be a charge against said wool and shall be collected from the manufacturer to whom said wool is allocated. PROFITEERING PROHIBITED. As a guard against profiteering, the books of all approved dealers in dis- tributing centers shall be at all times open to Government inspection, and if it be found that their gross profits, including the aforesaid commission of 4 per cent, are in excess of 5 per cent on the season's business, then such profits shall be disposed of as the Government decides. The books of the country dealers shall likewise be open to Government inspec- tion. If it be found that their gross profit for the season's business is in excess of 1^ cents per pound, then such excess profits shall be disposed of as the Government may decide. DISTRIBUTING CENTERS. The approved distributing centers for fleece wools are: Boston, Mass. Chicago, 111. " Louisville, Ky. New York, N. Y. St. Louis, Mo. Baltimore, Md. Philadelphia, Pa. Detroit, Mich. Wheeling, W. Va. Territory Wool Regulations. exceptions. In the Willamette Valley, Oreg., and the Puget Sound district of the State of Washington, the regulations in regard to fleece wools shall apply. distributing CENTERS. For the reasons before stated, in order that the 1918 wool clip may be promptly concentrated near the manufacturing centers and to make use of every available agency for storing and grading, all Territory Wools must be consigned to one of the designated distributing centers which are as follows : Portland, Oreg. New York, N. Y. Boston, Mass. Chicago, 111. St. Louis, Mo. Philadelphia, Pa. GOVERN'MEliJ'T REGULATIONS KELATHSTG TO PRICES. 715 The only exception is tliat clips of under 1,000 pounds may be sold by the owner. In buying these small clips, the buyer must recognize that he is en- titled to only a small profit, which must not exceed 2 cents per pound. Growers, if they desire for any reason to consign their wool through their banker, coun- try merchants, or others, may do so and said bank, country merchant, or others, may receive a commission or compensation for handling said growers' wool (in no case to exceed one-half cent per pound) ; such commission or com- pensation to be paid by grower. Growers ai-e, however, urged to consign their own wool and get the full price. SHIPPING. As soon as possible after wool reaches the railroad the owner should load It and consign it to any approved dealer he may select in one of the designated distributing centers, who will there deliever the wool to the Government or to some manufacturer to whom the Government may allot the wool. These ap- proved dealers will store, insure, handle, and deliver the wool under Govern- ment regulation. The grower should procure two copies of the shipping invoice and of the railroad bill of lading, and forward the original invoice and bill of lading to the dealer whom he has selected to handle his wool, retaining the duplicate in his own possession. ADVANCES, INTEREST, AND FREIGHT. The grower shall be entitled to receive an advance up to but not exceeding 75 per cent of the fair estimated market value of his wool. He shall pay in- terest on this advance at the rate of 6 per cent per annum from the date he receives such advance until his wool arrives at the distributing center, as shown by the railroad receipt. It is not intended that the grower shall pay interest on advances after the date of arrival, as shown by the railroad receipt, and he shall be entitled to receive interest on the selling value of his wool after freight has been deducted from date of arrival. The Government is fixing the price of the 1918 clip on a basis delivered at Atlantic seaboard points. It is therefore incumbent on the grower to deliver his wool at the designated dis- tributing centers, and the expense of delivering the wool at such centers will be charged against the wool on a basis of the freight rate from point of origin to the Atlantic seaboard. VALUING AND GRADING. As soon as possible after the arrival of the wool at a distributing center, if the wool is to be taken in the original bags, it shall be valued by the Government Valuation Committee. If the wool is to be graded, it shall be valued in the piles by the Government Valuation Committee as soon as the piles are graded and ready for delivery. All grading will be conducted under Government supervision. The grades out of each clip will be weighed sepa- rately and the books of the dealer, as far as they pertain to any grower's wool, shall be open to him. Tags, bucks, black, and other recognized discount fleeces will be paid for at prices fixed by the Government. Bags will be paid for in the same manner. PAYMENTS TO GROWERS. Growers shall be entitled to payment on a basis of the date of the arrival of the wool as shown by the railroad receipt. However, as it would be im- possible for obvious reasons to make settlement on each clip on the date of its arrival, in order that the grower may lose nothing by any delay in settle- ment, he shall be entitled to draw interest on the selling price of his wool less freight from the date of the wool's arrival until the date of final settlement. Final returns will be made as promptly as possible in all cases, COMMISSIONS. The grower does not pay the commission or compensation for handling wools in the designated distributing centers. This commission or compensation for handling will be added to selling price of the wool and paid by the buyer. If sold in the original bags, the commission or compensation shall be 3 per cent of the selling price. If the wool is graded, the commission or compensation shall be SJ per cent of the selling price. This commission or compensation includes drayage, storage, and insurance for a period not exceeding on any lot six months after arrival. On any lot remaining unsold in his possession for a 716 HISTORY OF PRICES DUEI2TG THE WAR. longer period than six months the dealer shall be entitled to charge storage and insurance at the market rate, and this additional charge shall be added to the price of the wool. MILLS LOCATED IN WOOL-GROWING DISTRICTS. In order that the Government may have full control of the wool situation, Avith a view to conserving as far as may be necessary the wool supply for military purposes, it is considered necessary to prohibit manufacturers from buying wool, exccjit in the designated distributing centers, and then only with the permission and consent of the Government under such regulations as the Government may hereafter make. However, mills located in wool-growing districts not near to the designated centers of distribution, and which are working on Government orders, will be given permits through the wool division of the War Industries Board to buy certain amounts of wool in their immediate neighborhood. In making appli- cations for such permits, the manufacturer applying sliould state the number of his Government order, the amount of goods yet to be delivered- against such order, the amount of his wool stock on hand, and the amount and class of wool required to complete said order. The manufacturer receiving such a permit will be required to report to tlie wool division of the War Industries Board all purchases made against permit issued to him. PERMITS TO DEALERS. All dealers in approved centers desiring a permit to operate should apply to the wool division of the War Industries Board stating their capacity for storing and grading. All country dealers should apply for a permit to operate by writing to the wool division of the War Industries Board giving name and address. In order to expedite movement of wool, dealers in country districts and dis- tributing centers may operate inwnediately in accordance with the above regula- tions, pending application for and granting of permit. Lewis Penwell, Chief of Wool Division, War Industries Board. GOVERNMENT WOOL PRICES, EFFECTIVE MAY 1, 1918. DOMESTIC WOOL IN THE GREASE. BOSTON VALUATIONS SCOURED BASIS AS OF JULY 30, 1917 GKEASY FLEECE WOOLS. OHIO AND SIMILAR, INCLUDING NEW ENGLAND STATES, NEW YORK, PENNSYL- VANIA, WEST VIRGINIA, KENTUCKY, VIRGINIA, MICHIGAN, NEW JERSEY. DELAWARE AND MARYLAND. Choice. Average. Fine delaine Fine clothing 1^ Bid. staple... J^ Bid. clothing. 3-8 staple $1.75 3-8 clothing 1-4 Bid. staple l-4Bld.clotlung... Low 1-4 Common and braid. $1.85 1.70 1.68 1.60-62 1.45 1.42 1.32 1.30 1.17 1.07 MISSOURI, INDIANA, ILLINOIS, AND SIMILAR, INCLUDING lOWO-, WISCONSIN, MINNESOTA, KANSAS, NEBRASKA, AND ARKANSAS. Choice. Average. Fine delaine Fine clothing $1. 70 1^ Bid . staple 1. 63 1^ Bid. clothing 1. 60 3-8 staple 1. 40 3-8 clothing i 1. 37 1-4 Bid . staple ' 1. 28 Bid . clothinc : 1. 26 Low 1-4..... 1.17 Common and braid -V $1.80 1.65 1.60 1.67 1.37 1.34 1.26 1.24 1.15 1.07 GOVEKNMENT REGULATIONS RELATING TO PRICES. 717 GOVERNMENT WOOL PRICES, EFFECTIVE MAY 1, 1918— Continued. GEORGIA AND LAKE WOOLS AND OTHER SOUTHERN WOOLS. Average lots, largely 3-8s Average lots, largely l-4s Average. $1.25 1.20 Semibright. Semibrights are to be classified as territory or fleece, the lot. TERRITORY. according to the character of Fine and fine medium staple . . Fine and fine medium clothing i Bid. staple J B Id . clothing High 3-8s staple 56-58s High 3-8s clothing 56-58s 3-8s staple 56s 3-8s clothing 66s Low 3-8s staple 50-568 Low 3-8s clothing 50-5as High 1-4 blood staple 48-50s . . . High 1-4 clothing 48-50? 1-4 staple 46-48S 1-4 clothing 46-48S Low 1-4 staple 44s Common and braid 40s Choice. Average. Inferior $1.80 $1.75 1.70 L65 1.68 L63 1.60-62 1.58 L45 1.42 1.42 1.39 1.40 1.37 1.37 1.34 1.35 1.32 1.32 1.29 1.32 1.29 1.30 1.27 1.28 1.26 1.26 1.24 1.17 1.15 1.07 LOS SI. 70 1.62 1.60 1.53 1.40 1.37 1.35 1*32 1.30 1.27 1.27 1.25 1.24 1.22 1.13 1.03 TEXAS. Twelve months. Eight months.. Six months CALIFORNIA. Twelve months. Eight months . . Fall $1.60 1.40 1.15 SOUTH AMERICAN WOOLS. rValuation of South American wools in the grease on a clean scoured basis. — Values as of July 30, 1917.] ARGENTINE, MONTEVIDEO, AND CONCORDIA FLEECE WOOLS, BASIS UNITED ^"^ ' STATES OF AMERICA STANDARD TYPES. Good 6s or 32-36s combing fleece Good 5s or 36-40s combing fleece Good 4s or 44-40s combing fleece Good 3s or 46s combing fleece Good 50s combing fleece Good 56s combing fleece Good 1-2 Bid. or 58-50 combing fleece Good 60-64S combing fleece Good 64s combing fleece Good 64s clothing combing fleece 1 Montevideo Argentine. 1 and Concordia. SO. 85 .90 1.05 1.20 1.30 1.40 1.55 1.60 1.65 1.50 718 HISTORY OF PRICES DURING THE WAE. SOUTH AMERICAN WOOLS— Continued. ARGENTINE, MONTEVIDEO, AND CONCORDIA BURRY COMBING FLEECE. Montevideo and Concordia. SO. 75 Burry 6s or 32-36s combing fleece Burry 5.s or 3&-40s combing fleece Bmry 4s or 44-403 combing fleece Burry 3s or 46s combing fleece Barry 60s combing fleece Binry 56s combing fleece Burry J.- bid. or 58-60s combing fleece Bmry 60-fi4s combing fleece . Burry 64s combing fleece Burry 64s clotiiing combing fleece . . . In all the above burrs are considered in the shrinkage. Argentine, Montevideo, and Corcordia, good skirting, free from bellies, same basis as Burry combing fleece. LAMBS. .95 .95 1.10 1.10 1.15 1.15 1.20 1.25 1.30 1.40 1.40 1.45 1.45 1.50 1.35 1.35 BUENOS AIRES, MONTEVIDEO, CONCORDIA, PATAGONIA, LAMBS— PRACTICALLY FREE. AND SIMILAR Buenos Aires. Montevideo, Concordia, Patagonia, and similar. Good 36-403 Good 44-40$ Good 46s Good 50s Good 56s Good i blood or 58-60s Good 64s $0.80 .95 1.00 1.05 1.15 1.25 1.25 $0.80 .95 1.05 1.15 1.25 1.30 1.30 BUENOS AIRES, MONTEVIDEO. CONCORDIA, PATAGONIA, AND SIMILAR SECOND CLIP WOOLS — PRACTICALLY FREE. Good Ss or 36-40s Good 4s or 14-40s Good 3s or 46s... Good 50s Good 56s 50.85 1.00 1.10 1.20 1.30 BELLIES. BUENOS AIRES, MONTEVIDEO, CONCORDIA, AND SIMILAR BELLIES. 5s or 25-40S , $0.75 4s or 44-40S .90 3s or 46s .95 50s 1- 05 56s 1- 15 58-60S 1- 25 64s 1- 25 Bui;rs included in shrinkage. PUNTA ARENA FLEECE. [Skirted, U. S. A. style.] 36-40S good combing fleece $0. 90 44_40s good combing fleece 1. 00 46s good combing fleece 1. 20 50s good combing fleece 1. -^O 56s good combing fleece 1. 40 58-60S good combing fleece 1. 55 64s good combing fleece • !• 60 PUNTA ARENAS, BELLIES AND PIECES. 36-40S clothing ^0.80 44-40S clothing -90 46s clothing 1.10 50s clothing 1-20 56s clothing 1-30 58-60S clothing 1- 45 64s clothing 1- 50 GOVERNMENT REGULATIONS RELATING TO PRICES. 719 BELLIES— Continued. ■ PERUVIAN WASHED. White supermerino $1- 50 White average merino 1- gO White choice No. 1 1- ^^ White average No. 1 }in White average No. 2 1- 10 Gray merino 1- 25 Gray average No. 1 i nn White pieces and locks i- |J0 Stained l- ^^ ICELAND WASHED. Choice washed ?0. 90 Average ^ • °^ CHILEAN UNWASHED. Merino spring 56-60s ^J" ?o Merino Mestiza Fall carding \-\^ Mestiza choice Valdivian Spring 46-56s broad 1-23 Mestiza average spring 56-58s, some 50s 1-28 Doma average spring 44-46s 1-10 Common average spring 40-36s -85 CordilUra average carding, bulk 50 i- 1° ISA gray (carding) 46-56s. i- 15 PERUVIAN UNWASHED. Choice 50-58S ® J- 30 Average 46-56s broad 1-12 Low36-40s -Sa Black 44-46S i- 00 Gray 40-46s 90 UNWASHED ECUADORIAN. Ecuadorian 40-36s $0. 85 UNWASHED BOLIVIAN. Bolivian 46-56s $1-12 WASHED BOLIVIAN. Washed Bolivian 50-o6s $1. 20 FOREIGN BLACK AND GRAY— COMBING AND CLOTHING. Combing. Clothing. Blacks . 44-40S (gray) 46s (gray) 50s (gray) 56s (gray) ; 58-60s(gray) 60-64S and fine (gray). Iceland (gray) China (gray) Peruvian (gray) Bolivian (gray) ChiU (gray) Ecuador (gray) Spanish (gray) Cape Coa and colored. Greek, black and gray $0.90 1.05 1.15 L25 1.30 1.50 .90 .60- .70 2 1.12 .80- .90 . 70-1. 20 .60- .85 ■ . 70- . 85 1 . 40-1. 25 : . 60- . 75 SO. 85 1.00 1.15 1.25 L30 1.50 $L00 1.10 1.25 1.35 1.40 1.60 1.70- .80 1L25 .80-1.00 1.25-1.40 1.00 1.00-L30 1 1. 30-1. 50 1 . 75-1. 50 1 Fine. 2 Low. ' Pulled cloth. Burry and seedy, cotts same basis as burry combing. SCOURED WOOLS. [Valuation of scoured fleece wool on the basis of values as of July 30, 1917.] TERRITORY AND FLEECE. Scoured fine anti fine medium $1- 62 Scoured fine and fine medium territory choice . 1. 70 Scoured fine medium . 1. 60 Scoured 3-8's territory 1- 45 Scoured 1-4's territory, New Mexican 1- 23 Scoured low territory, New Mexican 1- 00 Scoured fine California (baled) }' ^i Scoured medium California (baled) 1.40 Scoured defective fine California (baled) 1- 15 Scoured slightly defective fine California (baled) 1.38 Carbonized fine California (baled) 1.50 Carbonized medium California (baled) 1.36 Scoured fine short Texas 1. 60 Scoured domestic fine sorts : 1. 10 Scoured fine sorts ^•^'^ Scoured domestic medium sorts 1. 05 720 HISTOKY OF PRICES DURIlsTG THE WAE. SCOURED WOOLS— Continued. SOUTH AMERICAN SHORN LAMBS. Concordia, Patagonia, Montevideo, Paste Fuerte, and similar lambs : Scoured 50-5t)S 5I. 25 BUENOS AIRES LAMBS. Scoured Buenos Aires lambs, 46s $1. 15 Scoured Buenos Aires Hoggetts, 46s 1. 15 Carbonized Buenos Aires lambs, 46s 1. 15 Carbonized Buenos Aires lambs, 40-44s 1. 10 SOUTH AMERICAN SECOND CLIP FLEECE. Patagonia, Pasto Fuerte, Concordia, Montevideo, and similar : Scoured (bulk) 56s _- $1. 35 Scoured 50-56s 1. 30 Scoured 50s 1. 25 Scoured 46-50s 1. 20 Scoured (bulk) 44s 1. 15 Carbonized 50'-56s 1. 35 Carbonized 46-50s 1. 17 Carbonized (bulk) 44s 1.12 SOUTH AMERICAN BALED. Scoured Buenos Aires 4(3— 50s $1. 25 Scoured Buenos Aires (bulk) 44s 1. 10 Scoured Chubut 60-64s 1.65 SOUTH AMERICAN PIECES AND BELLIES. Scoured Punta Arenas, .50s $1. 25 Scoured Punta Arenas, 46s 1.17 CHILIAN. Scoured 1-2 blood $1.25 Scoured 3-8s 1. 10 Scoured gray and stained low quarter . 80 Scoured common . 70 Merino 1. 35 PERUVIAN. Scoured No. 1, 3-8s $1. 22 Scoured No. 2, quarter : 1. 12 Scoured gray low, 3-8s 1. 12 CAPE, Scoured fine, fair staple (bags) $1.48 Scoured fine, snow-white (baled), average 1. 60 Scoured fine, snow-white (baled), choice 1.70 Scoured fine (baled), jnferior 1.32 Scoured fine, stained (baled) 1. 25 Scoured fine, stained (baled), inferior 1. 00 Scoured grey (baled), average . 85 Scoured grey (baled), coarse .60 Scoured fine choice long (bags) 1.70 Scoured fine good staple (bags) 1.55 Carbonized fine (bags) -; -r 1.62 Scoured No. 2 (baled) 1-25 SCOURED AUSTRALIAN FLEECE WOOL. Extra super, scoured Choice scoured, good length, sound ; free or practically free Best carding, bulky, free Good carding, fairly free Good average combing, scoured Queensland, nearly free. . Average combing scoured, fairly free Good combing pieces and bellies Average length carbonizing, bellies, pieces Shivy fleeces, thinly grown 70's and better. U. 80 1.75 1.70 1.60 1.65 1.55 1.50 1.45 1.40 64-70's. $1.65 1.70 1.65 1.55 1.60 1.50 1.45 1.40 1.35 60-64's. $1.65 1.60 1.55 1.45 1.50 1.40 1.36 1.30 1.30 70's. 64-70's. 60-64's. Super clothing, free Good clothing, free Average clothing, nearly free, carbonizing $1.75 1.65 1.55 $1.70 1.60 1.50 $1.60 1.55 1.45 $1.50 1.45 1.35 GOVERNMENT REGULATIONS RELATING TO PRICES. 721 SCOURED WOOLS— Continued. TOPS. [Prices as of July 30, 1917.] Grade : 36s $1. 00 40s 1. 05 44s 1. 20 46s 1. 35 50s 1. 50 56s 1. 62 58s 1. 84 60s 1. 95 64s 2. 05 66s 2. 12 32s and below (carpet tops) at corresponding values. PULLED WOOL. [Valuation on domestic and foreign pulled wools in the grease on a clean basis. Scouring costs not included. All values as of July 30, 1917.] DOMESTIC COMBINGS. AA combing, 64s $1. 80 A combing, 60s .. 1. 70 B combing, 56-50s 1. 55 C combing, 46-50s 1. 43 Low combing, 44— 40s 1. 25 Butt combing, average 36s 1. 00 DOMESTIC STAPLE. AA staple, 64s $1.78 A super staple, 60s 1. 70 B super staple, 56-50s 1. 52 C super staple, 44-50s 1.42 DOMESTIC CLOTHING. AAA clothing, 70s $1.85 AA clothing, 64s 1. 72 A super clothing, 58-56s 1. 60 B super clothing, 50s ^ 1.46 C super clothing, 44s 1- 33 Low C . 9.5 Gray B super 1. 28 Gray C super 1.18 Short gray ,^ • 92 A shearlings 1- 25 B shearlings 1- 15 C shearlings • 90 White vat • 35 SPANISH PULLED. Choice white fine $1- 10 Average white • 85 Choice black ., 1- 32 Average black • 82 Low black ■ 65 Low medium white • 7o Low • "5 MONGOLIAN. Choice No. 1 white $0. 68 Low white • 55 Choice No. 1 gray ■ 68 Low gray ' • oO CHINA. Choice No. 1 white $0. 85 Average white • 78 Average gray ^ • 48 EAST INDIA. Low white $0. 55 Low medium yellow ■ °0 CORDOVA. White combing ^ $0. 65 Fine white clothing • 85 ITALIAN. White skin wool $0.45 ICELAND. No. 2 skin wool ^^-^9 No. 1 Iceland • "0 12.^.fi47°— 20 46 722 HISTORY OF PRICES DURING THE WAR. PULLED WOOL— Continued. SOUTH AMERICAN PULLED. Fine combing $1. 65 AA staple (choice), 60-64s 1. 70 Half blood or 58-60s combing 1. 55 A combing (choice). 56-58s 1. 55 56s combing 1. 45 B combing (choice), 50-56s ^ 1. 50 50s combing 1. 35 C combing (choice), 46-50s ^ 1. .35 46s combing L 1. 25 Low combing (choice), 44s 1. 15 44— 40s combing 1.10 Lincoln combing (choice), 36s, 40s 1. 00 Do .95 AA clothing, (i0-64s 1.65 A clothing, 56s 1. 52 B clothing, .50s 1.42 C clothing, 44-40S 1.12 Lincoln clothing, 36s .95 PULLED CAPE. AA staple. 64s $1. 75 AA clothing. 64s . 1.55 SCOURED PULLED WOOLS. [Valuation of scoured pulled wool on the basis as of .July 30, 1917.] DOMESTIC PULLED. Scoured domestic, AA superpulled choice-^ $1. 75 Scoured domestic. AA superpulled average 1.65 Scoured domestic, A superpulled choice 1.65 Scoured domestic, low A superpulled choice 1.53 Scoured domestic, A superpulled western 1. 50 Scoured domestic, high B choice 1. 50 Scoured domestic, B superpulled 1. 43 Scoured domestic, B superpulled western 1. 35 Scoured domestic, C superpulled choice 1. 28 Scoured domestic, C superstalned pulled . 1. 05 Scoured domestic, C superlow stained pulled . 95 Scoured domestic, gray B superpulled 1. 23 SOUTH AMERICAN PULLED. Scoured fine $1. 70 Scoured .56-58s 1. 55 Scoured 50s , 1. 45 Scoured 46s 1. 30 Scoured 40-44s 1. 15 Scoured Lincoln 1. 00 AUSTRALIAN. [Valuation of Australian greasy fleece combing on a clean basis as of July 30, 1917.) Type. 70s. 6&-70S. 64s. 60s. Extra super spinners, choicest style Spinners, good length, free Average spinners, bright and attractive, few burrs Super French combing, free Shafty combing, showy, bright but tender, free or nearly Shafty combing, sound, but more or less huirj Good top makers, irregular quality and length, but fairly free. Averagetopmakers,irregular quality and length, but fairly free Good French combing, fairly free French combing, few burrs Average combing, more or less burrs Average length combing, very burry or suitable for carbonizing . French combing, very burry, or suitable for carbonizing SI. 95 1.90 • 1.86 1.80 1.80 1.78 1.80 1.75 1.75 1.68 1.70 1.60 1.50 SI. 93 1,88 1.83 1.78 1.78 1.76 1.78 1.73 1.73 1.66 1.67 1.55 1.45 CLOTHING. Type. Extra super, regular length, absolutely free. Choice clothing, absolutely free Average clothing, free or nearly free Average clothing, some fault Faulty, irregular 64-80s SI. 85 1.80 1.70 1.60 $1.90 '1.85 1.80 1.75 1.75 L75 L75 1.70 1.70 1.63 1.65 1.50 1.40 70s. $1.85 1.80 1.75 1.70 1.68 1.70 1.65 1.65 1.58 1.60 1.46 1.36 $1.80 1.75 1.65 1.55 64-70S. ' $1. 65 1.55 1.50 1.40 1 Basis of prices as per the committer's report on which all valuations contained herein are based. GOVERlsrMEN'T REGULATIOl^S RELATING TO PRICES. 723 AUSTRALIAN — Continued. BROKEN NECKS AND PIECES— COMBINGS. Type. 64s. 60-64S Extra super combing, Geelong and N. E. types. Good length combing, sound, free or nearly free Average length, sound, free or nearly free Average length, tender, free or nearly free Good length, sound, few burrs or seeds Average length, sound, few burrs or seeds , French combing, few burrs or seeds Good length combing, very burry Average length combing, very burry French combing, very burry »1.75 1.70 1.60 1.65 1.60 1.55 1.60 1.50 1.40 il.75 1.70 1.65 1.55 1.60 1.55 1.50 1.55 1.45 1.35 SI. 70 1.65 1.60 1.50 1.55 1.50 1.45 1.50 1.40 1.30 STAINED PIECES AND CARBONIZING PIECES. Type. 64s and better. 60-64S. Good length carbonizing bellies Average length carbonizing bellies Short length carbonizing bellies Good length combing stained pieces, free or nearly free. . . Average length combing, free or nearly free stained pieces Good length combing stained pieces, burry Average length combing stained pieces, burry Bulky carbonizing stataed pieces Average carbonizing stained pieces Inferior carbonizing stained pieces $1.25 1.15 1.00 1.50 1.45 1.35 1.25 1.10 1.00 .80 $1.15 1.05 .90 1.40 1.35 1.25 1.15 1.00 .90 .70 Carbonizing charges not included. COMBING BELLIES. Type. 64-70S. 60-64S Super combing bellies, sound, free Good length combmg bellies, sound, free or nearly free. Average length combing bellies, free or nearly free, sound French combing belUes, fairly free Good length combing bellies, moro or less burry and seedy or tender. . Average length combing bellies, more or less burry and seedy or tender French combing bellies, more or less burry or seedy .- Combing bellies , very burry .11.70 1 1.65 1.55 1.45 1.45 1.35 1.30 1.25 $1.60 1.55 1.45 1.35 1.35 1.25 1.20 1.15 $1.50 1.50 1.40 1.30 1.30 1.15 1.15 1.10 • Basis olprices as per the committee's report on which all valuations contained herein are based. MERINO LAMBS. Extra super geelong lambs free , Super, practically free Average length second super, practically free Short free lambs Good length, more or less huiTS 1 Medium length, more or less burrs . . Irregular length, more or less burrs. . ^carbonizing , Short length, more or less burrs | Inferior Kempy , carbonizing MERINO LOCKS. Good length locks free Average length locks free Short length locks free Bulky locks, carbonizing Average length locks, carbonizing — Short length lock?, carbonizing Carbonizing charges not included. $1.70 1.60 1.55 1.40 n.40 1.35 1.20 1.10 .80 $1.20 1.10 1.00 1.00 .90 .80 WEANERS. First combing weaners Second combing weaners . 70s. $1.60 1.30 $L55 1.25 $1.50 1.20 1 This price taken as basis; 10 cents carbonizing charges added to same is equivalent to the committee's basis of $1.40. 724 HISTORY OF PRICES DURING THE WAR. 36s 40s...., ■44s 46s 46-50S. GREASY AUSTRALIAN AND NEW ZEALAND FLRECKS— r.OOD. [Scoured basis as of July 30, 1917.) .$0.95 . 1.00 . 1.15 . 1.30 . 1.35 50s $1.4S 50-56S 1. 50 56s 1 . 55 58s 1 . 70 CARPET. Handshaken fleece. No. 1 white sining "Wlllowed, No. 2 white sining Handshaken fleece, black sining (.super) Handshaken fleece, gray sining Handshaken fleece, stained sining Willowed, No. 2 gray Handshaken semi-carbonized No. 1 white (good) Government type, white, Szechuen Sundried, No. 1 white Szechuen Sundried, No. 2 white Szechuen Sundried, gray Szechuen Washed, No. 1 white ball (super) Government type, ball China Willowed, No. 2 white ball Willowed, No. 1 gray ball Willowed, No. 2 gray ball Willowed, open ball Handshaken, best unassorted fleece (A) Handshaken, medium unassorted fleece (C) Handshaken, low imassorted fleece (D) Willowed, best white filling (A) Willowed, good white filling (B) Willowed, fair white filling (C) Willowed, low white filling (D) Willowed, short white filling (cuttings) Willowed, best gray filling , Willowed, fair gray Willowed, low filling , Willowed, China autumn Handshaken, China No. 1 fleecy super lambs Handshaken, China No. 2 fleecy lambs Handshaken, China No. 3 fleecy lambs Willowed, China lambs Government type, China No. 1 woosie, spring Government type, China No. 1 woosie, autumn Government type, China No. 2 woosie, autiunn or spring. Washed, China Shanghai Handshaken, China Honan, unassorted Washed Mongolian, average (Urga.) Washed Manchurian, white (Hailar) , Washed Manchurian, gray , Unwashed Cordova, good carbonized, white Unwashed Cordova, good carbonized, gray Unwashed Cordova, second clip, white Ecuador Caribbean Spanish, coarse carbonized, white Spanish, good carbonized, white Spanish, white, mattress Spanish, gray, mattress Macedonian, white, combing Macedonian, black, combing Oporto July 30, 1917. Per cent. Grease price. JO. 43 .38 .39 .39 .36 .37 -.38 .41 .28 .36 1.00 .71 .38 .65 .36 .45 .36 .35 .33 .43 .42 .39 .37 .33 .39 .36 .35 .43 .56 .50 .43 .71 .40 .36 .15 .32 .28 .52 .46 .39 .38 .37 .39 .23 .26 .37 .37 .40 .18 .36 .31 .25 Basis scoured. $0.72 ..59 .67 .67 .67 .57 .73 .63 .54 .59 1.10 .95 .57 .87 .56 .77 .70 .66 .61 .68 .66 .61 .57 .46 .63 .56 .54 .64 1.33 1.10 .95 1.10 .64 .60 .43 .49 .58 .68 .61 .55 .76 .74 .70 .77 .65 .60 .74 .51 .30 .68 .62 .62 Scoured. $0.80 .65 .76 .73 .72 .62 .85 .75 .80 .62 .68 1.10 .95 ..59 .90 .56 .85 .82 .80 .61 .80 .75 .61 .57 .52 .71 .56 .54 .70 1.40 1.12 .96 1.15 .85 .70 .43 .55 .58 .78 .61 .55 .90 .75 .85 .85 .75 .60 .82 .51 .30 .68 .62 GOVERNMENT ISSUE PRICES TO MANUFACTURERS HOLDIN(4 GOV BRNMENT CONTRACTS MAY 15. 1918. The issue prices of wool for Govenmient contract!^ are based on the valua- tion committees' description and estimate of shrinliage of each lot. Tlie Gov- ernment does not guaraiitee the estimated shrinltages of the valuation com- mittees, but believes them to be approximately correct. Samples of each lot will be shown at the office of the wool distributer and are intended to fairly represent the bulk lot, but are not guaranteed to do so. They are exhibited for the convenicncf- of manufacturers interested. Examination in bulk may be made if desired. GOVBKNMENT REGULATIONS RELATING TO PRICES. 725 CONDITIONS. 1. Holders of Government contracts should make application for any lot or lots (or portions thereof) in writing to E. W. Brigham, 298 Summer Street, Boston. Application shall state the number of the Government contract for which the wool is required, and such other details as may be required. 2. The price on each lot is the price fixed by the Government and is accepted by the buyer when his application is made. 3. Terms are net cash within 60 days from date of allotment. 4. Bags or bale covers are to be charged at cost and are not to be returned. The British Government now charges for bale covers of Australian wools. 5. All wools or tops are to be taken at the same weights as billed to the Quartermaster Corps, which were sworn weigher's weights at time of the de- livery of wool to the Quartermaster Corps. 6. Manufacturers may be required to give a bond for the full amount of the wool furnished. 7. Deliveries of all wool allotted to be taken within 30 days of date of allot- ment. 8. Storage, insurance, and drayage charges applying against each lot of wool are to be paid by the buyer. 9. Cartage from warehouse to railroad is to be paid by the buyer. THE government's ISSUE PRICES ON SCOURED WOOLS. 1. The prices of scoured foreign wools grading 58s and lower will be July 30 prices (as established by the valuation committees) plus 7 per cent. 2. The prices of scoured foreign wools grading finer than 58s will be July- 30 prices. 3. The prices of scoured domestic wools grading up to and including high three-eighths (58s quality), and in pulled scoured up to and including straight As will be .July 30 prices plus 7 per cent. 4. The prices of scoured domestic wools finer than high three-eighths (.58s quality), and in pulled scoured finer than straight As will be .July 30 prices. THE government's ISSUE PRICES ON GREASY PULLED WOOLS. 1. The prices of greasy foreign pulled wools grading 58s and lower will be July 30 prices (as established by the valuation committees) plus 7 per cent. 2. The prices of greasy foreign pulled wools grading finer than 58s will be •July 30 prices. 3. The prices of greasy domestic pulled wools grading up to and including straight As will be July 30 prices plus 7 per cent. 4. The prices of greasy domestic pulled wools finer than straight As will be July 30 prices. THE government's ISSUE PRICES ON DOMESTIC WOOLS. Ohio and similar, including New England States, New York, Pennsylvania, West Virginia, Iventucky, Virginia, Michigan, New Jersey, Delaware', Mary- land : Issue price, scoured basis. Fine Delaine, clioice $1. 95 Fine Delaine, average 1. 90 Pine clothing, choice 1. 80 Fine clothing, average 1. 75 Half-blood staple, choice 1. 80 Half-blood staple, average 1. 75 Half-blood clothing 1. 70 Issue price, scoured basis. Three-eighths staple $1. 55 Three-eighths clothing l. 50 Quarter-blood staple 1. 40 Quarter-blood clothing l. 38 Low one-fourth 1. 25 Common and braid 1. 15 Missouri. Indiana, Illinois, and similar, including Iowa, Wisconsin, Minne- sota, Kansas. Nebraska, and Arkansas : Issue price. Fine Delaine |1. 85 E'ine clothing, choice 1. 75 Fine clothing, average 1. 70 Half-blood staple 1. 75 Half-hlood clothing 1. 67 Three-eighths staple 1. 52 Issue price. Three-eighths clothing $1. 50 Quarter-blood staple 1. 40 Quarter-blood clothing 1. 38 Low quarter-blood 1. 25 Common braid : 1. 15 Georgia, Lake wools, and other southern wools: Issue price. I Issue price. Average lots, largely 3-8ths $1. 37 | Average lots, largely 1-4 blood $1. 30 726 HISTORY OF PRICES DURING THE WAR. TEKEITORY. Pine staple : Choice Average Inferior Pine clothing : Choice Average Inferior Half-blood staple : Choice Average Inferior Half-blood clothing : Choice Average Inferior High 3-S staple 56-58s : Choice Average Inferior Three-eighths clothing 56-5Ss : Choice Average / Inferior Three-eighths staple 56s : Choice Average Inferior Throe-eighths clothing 56s : Choice Average Inferior Low 3-8 staple 50-56s : Choice Average Inferior Low 3-8 clothing 50-56s : . Choice Average , Inferior '. High 1-4 4a-50R: Choice Average Inferior _- Issue price. $1. 90 1. 85 1. 80 1. 80 1. 75 1. 65 1. 80 1. 75 1. 70 1. 70 1.65 1. 60 I. 60 1. 55 1. 50 1. 55 1. 50 1. 45 1. 55 1. 50 1. 45 1. 52 1. 47 1. 42 1. 50 1. 47 1. 45 1. 4S 1. 45 1. 4;; TBBRITOET. Issue price. High 1-4 clothing 48-50s : Choice .$1. 40 Average 1.87 1-4 Inferior. 1-4 staple 46^8s : Choice Average Inferior clothing 46-48S Choice Average Inferior Low 1-4, 44s : Choice Average Inferior Common-braid 40s : Choice Average Inferior 1. 35 1. 40 1. 38 1. 35 1. 38 1. 35 1. 32 1. 12 12 months : Choice 1. 80 Average , 1. IT) Inferior 1. 70 8 months : Choice 1. 60 Average 1. 57 Inferior 1. 55 6 months : Choice 1. 50 Average 1. 47 Inferior 1. 45 CAUPORMA. -— 12 mouths : Choice 1. 80 Average 1. 70 Inferior 1. 60 8 months : Choice 1. 55 Average 1. 50 Inferior 1. 45 Note. — Bucks, tags, black, seedy, and other discount fl prices fixod later by the Government. will b<^ paid for at fair THE GOVERNMENT'S ISSUE PRICES ON FOREIGN WOOLS. [Argentine, Montevideo, Concordia fleece wools — Basis V. S. standard type.] Issue price. Good fis or 32-36S, combing fleece $0.92 Good 5s 01' 36-40S, combing fleece 1. 02 Good 4s or 44— 40s, combing fleece . 1. 12 Good 3s or 46s, combing fleece 1. 28 Good 50s, combing fleece 1.40 Good 56s, combing fleece , 1. 50 Good 1-2 or 58-60S. combing neece {f^^^^jl^^^ 1; ^ Good 60-64S, .ombing fleece {f«„°4\Yn/« }• Jg Good 64s, combing ^i^^^e {^o^^^^::::::::::::::::::::::::'::::::::::::::: 1:|§ Good 64s, clothing 1.65 AUSTRALI.VN AND NEW ZEALAND CROSSBREDS. 36s $1. 00 40s 1. 05 44s 1. 20 46s 1. 35 46-50S 1. 42 50s .fl. TiO 50-56S 1. 55 56s 1. 60 58s 1. 75 ARGENTINE, MONTEVIDEO, AND CONCORDIA BURRY COMBING FLEECE. Burry 6s or 32-36s combing fleece $0. 80 Burry 5s, or 36-40s combing fleece , 86 Burry 4s' or 44— 40s combing fleece 1, 02 Burry 3s or 46s combing fleece 1. 18 Bnrry 50s combing fleece 1. 22 Burry 56s |1. 34 Burry 58-60s 1. 50 Burry 60-64s 1. 55 Burry 64s 1. 60 Rnrrv fi4s clothing 1. 45 In all the above burrs are considered shrinkage. Argentine, Montevideo, and Concordia good skirl ins. burry combing fleece. fref from bellies, same basis as GOVERIsrMElSrT REGULATIONS RELATING TO PRICES. 727 BUENOS AIRES, MONTEVIDEO, CONCORDIA, PATAGONIA, AND SIMILAR LAMBS PRACTICALLY FREE. Buenos Aires, Montevideo, and Con- cordia, and similar bellies — Con- tinued. Issue price. Buenos Aires : Issue price. Good 36-40S $1. 00 Good 44-40S 1. 10 Good 4es 1. 15 Good 50s 1.25 Good 56s 1.35 1-2 or 5S-60S _ 1.40 64s _ __ 1.40 Montevideo, Concordia, Patagonia, and similar : Good 36-40S 1.00 1.10 Good 44-40S _ _ Good 46s __ __ _ 1.15 Good 50s 1. 25 1.35 Good 56s Good 1-2 blood or 58-60s 1.40 Good 64s _ 1.40 Buenos Aires — Second-clip wools, practically free : Good 5s or 36-40s_ 1.00 Good 4s or 44-40s 1. 15 Good 3s or 46s 1. 20 Good 50s - 1. 30 Good 56s 1.40 Montevideo, Concordia, Patagonia — Second clip : 5s or 36-40S 1.00 4s. or 44— 40s 1. 15 3s or 46s 1. 25 50s 1. 35 56s 1.45 Buenos Aires, Montevideo, and Con- cordia, and similar bellies : 5s or 36-40S .82 4s or 44— 40s .98 1.03 3s or 46s THE GOVERNMENT'S ISSUE PRICES ON 1. 02 50s 56s 58-60S 64s Burrs included in shrinkage. Punta Arenas fleece, skirted, Ameri- can style : 36-40s combing fleece 44— 40s combing fleece 1. 12 46s combing fleece 1. 30 50s combing fleece 1. 40 56s combing fleece 1. 50 58-60.S combing fleece 1. 70 64s combing fleece 1. 70 Punta Arenas bellies and pieces : 36-40S clothing 1.00 44-40s clothing 1.10 46s clothing 1. 25 50s clothing 1. 35 56s clothins; 1. 45 58-60S clothing 1. 55 64s clothing 1.60 Foreign pulled wools : 36-40S combing 1. 05 44-40s combing 1. 20 46s combing 1. 40 50s combing 1. 45 56s combing 1. 55 i blood, or 58-60s combing 1. 65 Fine combing 1. 75 Greasy Cape Merinos : 64s deep combing 1. 70 64s average fair combing 1. 63 64s good average clothing 1. 50 AUSTRALIAN WOOLS— GREASY FLEECE. [Clean scoured basis. Type. 66-70S. 64s. Extra super spinners, choicest style Spinners, good length, free Average spinners, bright and attractive, few burrs Super French combing, free Shafty combing, showy, bright but tender, free or nearly Shafty combing, soimd, but more or less biu-ry Good top makers, irregular qualitjr and length, but fairly free. . Average top makers, irregular quality and length, but fairly free. Good French combing, fairly free French combing, few burrs Average combing, more or less burrs Average length combing, very burry or suitable for carbonizing French combing, very burry, or suitable for carbonizing $L95 L90 1.85 L80 1.80 1.78 L80 L75 L75 1.68 1.70 L60 1.50 SI. 93 L88 1.83 1.78 L78 1.76 1.78 1.73 1.73 1.66 1.67 1.55 1.45 81.90 L85 1.80 1.75 L75 1.75 1.75 L70 L70 1.63 1.65 1.50 1.40 $L85 1.80 L75 "i.'70 1.68 1.70 1.65 1.65 1.58 1.60 1.45 1.35 CLOTHING. ["ype. Extra super, regular length, absolutely free . Choice clothing, absolutely free Average clothmg, free or nearly free Average clothing, some fault Faulty, irregular 64-80s SOs. $1.85 1.80 1.70 1.60 BROKEN NECKS AND PIECES— COMBING. [Clean scoured basis.] Type. Extra super combing, Geelong, and N. E. types Good length combing, sound, free, or nearly free Average length, soimd, free, or nearly free Average length, tender, free, or nearlv free Good length, sound, few burrs or seeds Average length, sound, few burrs or seeds French combing, few burrs or seeds Good length combing, very burry Average length combing, very burry 70s. SI. 80 1.75 1.65 I..55 643. 60-6-ls. SI. 80 SI. 75 1.75 1.70 1.70 1.65 1.60 1.55 1.65 1.60 1.60 1.55 , 1.55 1.50 1.60 1.55 1.50 1.45 64-70S. $1.65 1.55 1.50 1.40 00s. $1.70 1.65 1.60 1.50 1.55 1.50 1.45 1.50 1.40 728 HISTOEY OF PRICES DURING THE WAR. STAINED PIECES AND (^AlllJONIZlNC 1>1K('I> [Clean scoured basis.) Type. Good length carbonizing bellies Average length carbonizing bellies Short length carbonizing bellies Good length combing stained pieces, free or ne.irly free. . . Average length combing, free or nearly free stained pieces Good length combing stained pieces, biirry Average length combing stained pieces, burry Bulky carbonizing stained pieces Average carbonizing stained pieces Inferior carbonizing stained pieces 64-70S. : 00-nis. $1.25 1.15 1.00 1.50 1.45 1.35 1.25 1.10 1.00 .80 SI. 15 1.05 .90 1.40 1.35 1.26 1.15 1.00 .90 .70 Carbonizing charges not inf hided. SCOURED WOOLS. [Clean scoured basis.] Type. Choice scoured, good length, sound, free or practically free. Best carding, bulky, free Good carding, fairly free Good average combing, scoured, Queensland, nearly free . . Average combing, scoured, fairly free Super clothing, free Good clothing, free Averageclotlung, nearly free Good combing, pieces and beUies Shivy fleece, thinly grown 70s and above. $1. 75 1.65 1.55 $1.75 1.70 1.60 1.65 1.55 1.70 1.60 1.50 1.60 1.40 81.70 1.65 1.55 1.60 1.50 1.60 1.55 1.45 1.45 1.35 60-64S. $1.60 1.55 1.45 1.50 1.40 1.50 1.45 1.36 1.35 1.30 Other scoured wools to be valued on the basis of greasy wools of similar type. COMBING BELLIES. [Clean scoured basis.] Type. 64-708. 60-64S. Super combing beUies, sound, free Good length combing bellies, sound, free or nearly free Average length combing bellies, free or nearly free, sound. . . Good length combing bellies, more or less burry or seedy.... Average length combing bellies, more or less burry or seedy French combing bellies, more or less burry or seedy Combing bellies, very burry $1.70 1.65 1.60 1.45 1.35 1.30 1.25 !S1.60 1.55 1.50 1.35 1.25 1.20 1.15 $1.50 1.50 1.45 1.30 1.20 1.15 1.10 MERINO LAMBS. [Clean scoured basis.] Extra super (TCelong lambs, free $1.70 Super, practically free 1.60 Good length, free or nearly free 1.40 Medium length, free or nearly free 1.30 Short length, free or nearly free 1.10 Inferior length, kempy. carbonizing .SO MERINO LOCKS. Good length locks, free $1.20 Average length locks, free 1. 10 Short length locks, free 1.00 Bulky lo'ks, carbonizkig -85 Average length locks, carbonizing . 75 Short lengih locks, carbonizing .65 Carbonizing charges not included. WEANERS. First combing weaners Second cojnbing weaners. The Government ha?- upon appli'-ation. TOPS. small anuiunt of tops in stock. These will be shown and priced 6. HIDES, SKINS, AND LEATHER. The regulation of the prices of hides, skins, and leather began with the control of imports, administered through the license system. On December 15. 1917, the Tanners' Council of the United States of America (Inc.), was designated by the War Trade Board as the consignee of hides, skins, and leather imported into the United States.' On March 20, 1918, the woolpullers agreed to give the Government an option on all skins pulled by them, at maximum prices fixed for April, May, and June, on a basis of 14 cents per square foot on all leather suitable for jerkins. At the same time prices were established on four grades of leather at 16 cents. 18 cents, 20 cents, and 23 cents, the average price for finished jerkin leather ap- proximating 181 cents.^ On May 19, 1918, the War Industries Board made public the following state- ment of its policy concerning the prices of hides, skins, and leather : * As the war needs of the Government for leather products of various kinds are so large as to necessitate some measure of control over the hide and leather industry, a meeting was called of those interested in the hide business for the purpose of discussing ways and means of stabilizing the prices of hide and skins. At this meeting were representatives of the Cattle Men's Association, the Hide and Skin Importer's Association, the packers, the country hide dealers, the hide brokers, and the Food Administration. DIFFERENCES OF OPINION ADJUSTED. While there was great difference of opinion among the various interests rep- resented as to what a fair and reasonable maximum price on hides and skins should be for the next 90 days, the representatives of the industry as a com- mittee of the whole finally recommended to the price-fixing committee of the War Industries Board the maximum prices on the attached schedules to be established by the Government on hides and skins. After several meetings and lengthy discussions the price-fixing committee, with exhaustive information, not only as to the present position of the industry but as to the near -future developments, finally concluded that the prices named on the kill for May, June, and July, while a little higher than their differential value of the present stock and the present market prices, were reasonable, so the Government has adopted the schedule of maximum prices as they relate to present stocks of domestic hides and skins, and to the kill for May, June, and July. As the Government, through an ihaport-license system, exercises full control over all imported hides and skins, the price-fixing committee has fixed maximum prices until July 31 on hides and skins similar to those produced in this country at the same price fixed for our domestic producers, and all other hides and skins, as per list attached. This differs somewhat from the views expressed by the hide committee regarding the fixing of prices on imported hides and skins. ^ War Trade Board Journal, Jan. 8, 1918. For the rules governing the administration of the licenses see bulletins issued by the Tanners' Council, Dec. 20, 1917, and Feb. 28, 1918. ^Report of the hides, leather, and tanning materials section of the War Industries Hoard to Chairman Baruch. Jan. 1. 1918. • Official Bulletin, May 19, 1918. 729 730 HISTORY OF PRICES DURING THE WAR. FUTURE MEKTIXG ARRANGED. A meeting will be held two weeks before the expiration of the present agree- ment, which expires Julj' 31, 1918, for the purpose of considering the situation and with a view of fixing maximum prices for a further period. The price-fixing committee will call a meeting of the tanners at once with a -view of establishing fair and equitable prices on leather, and will endeavor to see that leather products will reach the consumer at fair and equitable prices. The supervision and carrying into effect of the decision of the price-fixing com- mittee will be executed by the hide and leather section of the War Industries Board. In J.une, 1918, the War Trade Board restricted the importation of hides and skins, tanned skins, leather, and manufactures of leather. All licensees were required to give an option to the Government at the fixed prices. Action to restrict importations of hides, .skins, leather, tanned skins, and manufactures of leather has been taken by the War Trade Board, which have revoked all outstanding import licenses for hides, skins, leather, tanned skins, and manufactures of leather as to ocean shipments after June 15, 191S. Here- after no licenses for shipments from overseas will be issued except for — (a) Shipments from Soutli America of 57.000 long tons of cattle hides of specified weights and grades. (&) Shipments of other grades of hides oi- skins from any Allies or neutral countries as may be certified by the War Industries Board to be for Govern- ment use. (c) Shipments of leather, tanned skins, or manufactures of leather as may be certified by the War Industries Board to be for Government use. The usual exceptions for shipments overland or by lake from Canada, over- land from Mexico, or as back haul from European ports when loaded at con- venient ports and without delay are made. The licenses covering the foregoing shipments will be issued according to such allocations of the various commodities as may be made by the hide and leather control section of the War Industries Board. All importers of the foregoing commodities are to be required as a condition precedent to the indorsement of bills of lading by the Tanners' Council to give the United States an option to purchase such of these commodities on which a maximum price has been estab- lished by the price-fixing committee appointed by the President at pri(;es so fixed.^ The lifting of control. — The regulation of the prices of foreign hides and skins was discontinued January 1, 1919. Fixed prices on domestic hides and skins expired by limitation on January 31, 1919. War Trade Board Ruling No. 43, dated December 20, 1918, revoked the restric- tions of July 16, 1918, and on January 9, 1919, the board announced that the import licenses for hides and skins would be issued thereafter without the provision that the bill of lading be Indorsed to the Tanners' Council. (War Trade Board Ruling 492.) PRICE SCHEDULES. On July 23, 1918, the price schedules for August, September, and October were announced, providing the following changes in the earlier schedules.' The following price changes were agreed upon at a meeting of the hide inter- ests in the United States with tlie price-fixing committee of the War Industries Board on .July 19, 1918 : Packer hides. — ^Heavy native steers, No. 1, 30 cents ; heavy butt-branded steers. No. 1, 28 cents ;' heavy Texas steers, No. 1, 28 cents ; heavy Colorado steers, 27 cents ; light native cows. No. 1, 24 cents. 1 War Trade Board Ruling 141, June 16, 1918. 2 Official Bulletin, July 23, 1918. GOVERNMEJS^T EEGULATIONS RELATING TO PRICES. 731 PEICES OF COUNTEY HIDES. Country hides (for best secfioi/.s). — Extremes, 25 to 45 pounds, 22 cents; buffs, 45 to 60 pounds, 21 cents. All country hides are to be bought and sold on a selected basis. River Plate Frigorifico hides. — Maximum price on steers, $53 Argentina gold; maximum price on cows, $40 Argentina gold (f. o. b. shipped, including export duty and lighterage, but not including salting charges). The new schdule applies to August, September, and October take-off on all domestic hides and skins, and August, September, and October shipment from origin of all foreign hides and skins. BASIS FOB DIFFERENTIALS. These prices are the basis for all other differentials, which will be pub- lished in due course. These readjustments of maximum iixed prices will more nearly equalize the actual market conditions as reflected in prices of country hides and need not affect the prices of cattle. There have been widespread com- plaints that the small hide producer has been unable, owing to marketing con- ditions, to secure a fair price for his hides. The War Industries Board has, therefore, under consideration the appointment by permit of hide dealers, simi- lar to the system adopted in wool. Definition of maximum prices. — On August 13, 1918, the chief of the hide, leather, and leather goods division of the War Industries Board issued the fol- lowing statement concerning the nature of "■ maximum " prices : It should be understood that maximum prices do not mean fixed prices. Maximum prices merely establish a level beyond which commodities or grades and selections of commodities can not sell, and are established to stabilize the industry in order to protect the industry, the Government, and the community at large against a runaway market. Within the Maximum prices the law of supply and demand should have its influence on trade prices of all commodities or gi'ades and selections of com- modities. The price-fixing committee does not intend that maximum prices shall obtain unless such prices are justified by the law of supply and demand. In fixing maximum pi'ices on leather, the price-fixing committee has and will endeavor to cover all important kinds, grades, and selections, and provides the means to fix maximum prices for all possible differentials. In all cases where differential kinds, grades, and selections present them- selves on the market and an agreement as to their relative value compared with the nearest kind, grade, or selection for which maximums have been fixed can not be arrived at to the satisfaction of buyer and seller, the facts should be referred to the hide, leather, and leather-goods division of the War Industries Board for consideration, and, if necessary, for submission to the price-fixing committee for decision. , The prices established for November and December. 1918, and January, 1919, were announced on October 30, 1918.* The price-fixing committee of the War Industries Board has established maximum prices on packer and country hides and skins for November, Decem- ber, and January take-off. This action has been taken after several confer- ences with representatives of the producers, tanners, packers, country hide dealers, and also Government departments, which are vitally interested. The basis of prices, as compared with August, September, October maximum prices, remains unchanged, but differentials have been established to corre- spond to the poorer quality of the hides as they go into the winter season. The basic prices, as established for November, December, and January take- off are mentioned below : November, December country hides and kips are three-quarters cent less, and January hides are a cent and one-half less than August, September, Octo- ber, and packers are 1 cent less for November, December and 2 cents less for January. All 44-cent calfskins are lowered to 40 for November, December, January, and other calf have been lowered correspondingly. Imported wool sheepskins and imported pickled sheepskins. — The importer will be required to sign as follows at the time he applies for a license: " In consideration of license being granted by the War Trade Board for the impoi'tation of wool sheepskins and pickled sheepskins, we agree that we will 1 Official annouDcement of price-fixing committee, Oct. 30, 1918, 732 HISTORY OF PRICES DURING THE WAR. not sell them in excess of their value relative to the various kinds and selec- tions that have been established on domestic pelts by the price-fixing committee appointed by the President." HIDES AND SKINS. Below are given the regulations and schedules of fixed prices announced on the indicated dates by the various price-fixing agencies. DOMESTIC PACKER HIDES. [Regulations for t.ike-ofE of May, June, and July, 1918.] Maximum prices for special reselections of packer steers and cows for belting, carriage, furniture, (-)r harness leather purposes are 1 cent over the ma?;imums for regular selections and grades. Beginning June 1 take-off all small packers, abattoirs, and wholesale butchers are governed by standard packer selections, and shall make the same grades, selections, and tare as standard packers make. Their maximum prices "shall be relative to best standard packer maximum prices, and shall be based on Chicago freight. Chicago freight basis In States of California, Washington, Oregon, and Nevada means that the seller shall deduct f cent per pound (being three-fourths of present freight East, which is 1 cent) from the invoice, or take this amount into consideration when naming his selling price. In all other States " Chicago freight basis " means that the seller allows the buyer any excess freight on shipment over the amount which could be charged on such shipment were it shipped from Chicago, and if freight charged from point of shipment does not exceed that from Chicago, no allowance is made, neither is any allowance made if the freight is less than from Chicago.. Transactions at a flat price in packei-, abbattoir, and wholesale butcher hides of May, June, and July take-oft shall be operative for the May hides only. Be- ginning June 1 the flat prices shall be adjusted to graded and selected basis, taking into consideration Chicago freight. Tanners are not permitted to buy green or slack-cured stock of butchers (ex- cepting packers, abattoirs, and wholesale butchers), unless at 20 per cent less on hides and kips and 12* per cent less on skins than the maximum green salted prices. Tanners are not permitted to buy green salted hides, kips, or skins of a butcher in less than carload lots at a higher price than 10 per cent less than than the maximum green salted prices. Packer, abattoir, and country coast (California, Oregon, Washington, and Nevada) hides shall first be offered to coast tanners having Government con- tracts, and. those tanners, if they wish to buy the hides, must give decision within 48 hours after receipt of the offering. Small packer, abattoir, and wholesale butcher hides, which have been resalted, shall be so described when offered for sale. • The maximum prices on Canadian packer hides are to correspond with do- mestics of similar merit and description ("Canadian hides" embrace those from other North American British possessions). Hawaiian hide prices are ex-store San Francisco, usual quality, and selection. For the take-off of August, September, and October the regulations were essen- tially the same as those governing the May, June, and July take-off with the following modifications : Any resalted packer, abattoir, or wholesale butcher calfskins shall sell at relatively less than the price of 44 cents, which is for first salt standard packer stock on Chicago freight basis. A go-between can not charge a brokerage to both buyer and seller. No one owning a lot of hides or skins can charge his customer a brokerage when selling same. Any tanner may pay an agent a brokerage for buying hides or skins (except on hides or skins which the agent owns himself), but such agent may not buy less than carload lots of butchers at a higher price than 10 per cent under applicable maximum prices. No brokerage shall exceed 2 per cent. The prices on packers bulls are now on a selected basis, whereas formerly they were on a flat basis. The modifications in general regulations for the November, December, and January, 1919, take-off are as follows: All first salt hides and kips of small packers, abattoirs, wholesale butchers, and also good lots of city and country butchers, of standard packer pattern, GOVERNMENT REGULATIONS RELATING TO PRICES. 733 trim and conditions, containing not over 7 per cent No. 2's for cuts, may be gov- erned by standard packer prices, Chicago freight basis. Any excess over 7 per cent No". 2's for cuts in such lots shall go at the No. 2 country price. Standard packer grading, selection, and tare shall govern. Chicago freight basis in States of California, Washington, Oregon, Nevada, Idaho, and Utah means that the seller shall deduct three-fourths of a cent per pound from the invoice, or take this amount into consideration when naming his selling price. In all other States " Chicago freight basis " means that the seller allows the buyer any excess freight on shipment over the amount which could be charged on such shipment were it shipped from Chicago, and if freight charged from point of shipment does not exceed that from Chicago, no allowance is made, neither is any allowance made if the freight is less than that from Chicago. The maximum price for resalted hides and kips as described in paragraph No. 1 shall be 5 per cent less than the maximum for such first salt hides and kips. The maximum prices for. resalted packer, abbatoir or wholesale butcher, calf- skins shall be 5 per cent less than the maximum for such first salt calfskins. Maximum prices for special reselections of packer steers and cows for belt- ing, carriage, furniture, or harness leather purposes are 1 cent over the maxi- mums for regular selections and grades. The premium of 1 cent per pound over the maximum allowed for special reselection of packer steers and cows is only permissible as follows : , , ^ . , ^ ^^ ^ ^^ (a) When native steers 60 pounds and up are graded for weights 60 to 65 pounds and 65 pounds and up. (b) No. 1 native steers 50 to 60 pounds and 60 pounds and up, free of grubs when every hide is grubbed. (c) No. 1 heavy native com^s, free of grubs when every hide is grubbed. id) No. 1 light native cows, free of grubs when every hide is grubbed. (e) Plump narrow hides picked out of native steers, 60 pounds and up. (f) Spready hides picked out of native steers, 60 pounds and up. It shall not be permissible to exceed the maximum prices by paying relatively more than same for green or slack-cured weight. DOMESTIC PACKER HIDES. Description. Heavy native steers. No. 1 Heavy native steers, spready, No. 1 Ligtit native steers. No. 1 Extreme light native steers, No. 1 Heavy butt-branded steers. No. 1 Light butt-branded steers, No. 1 Extreme light butt-branded steers. No. 1 Heavy Colorado steers, No. 1 LighfColorado steers, No. 1 Extreme Ught Colorado steers. No. 1 Heavy Texas steers. No. 1 Light Texas steers, No. 1 - Extreme Ught Texas steers. No. 1 Branded cows. No. 1 Heavy native cows, No. 1 Light native cows. No. 1 Native bulls. No. 1 Branded bulls. No. 1 All Koshers, at J cent discount. Kips, No. 1 Overweight kips, No. 1 Branded kips. No. 1 Calfskins, No. 1 Pacific coast — Oregon, Washington, California : Maximum price at shipping point- Steers, flat Cows, flat Hawaii: Honolulu — Steers, 40 pound.'< and up Steers under 40 pounds and cows all weights Hilo and other packer hides — Steers Cows. Stocks and take-off to and including Apr. 30, 1918. .29 .30 .28 .21 .26^ .25^ . 25.1- .24i .25i .18 Take-ofl for— May, June, and July. $0.33 .34 .32 .26 .31 .30 .30 .29 .31 .30 .25 .25 .30 .26 .23 .21 .2^ .26 .23 .44 May. .29 .24 August, Septem- ber, and October. .28 .27 .24 .23 .28 .24 .2H .19i .27 .25J .22i .44 Flat. .30 .25 Novem- ber and Decem- ber. .29 .30 .28 .23 .27 .26 .22 .26 .25 .22 .27 .26 .23 .22 .27 .23 ■ 20^ .184 .26 .24* .21i .40 January, 1919. $0.28 .29 .27 .22 .26 .25 .21 .26 .24 .21 .26 .26 .22 .21 .26 .22 .19i .m .25 .23i .201 .40 .25 .20 734 HISTORY OF PRICES DURING THE WAR. DOMESTIC COUNTRY HIDES. Rules regarding the sale of couutry hides fox- the take-off of May, June, and July. 1918: Dealers who accumulate hides, kips, and skins from various sections shall, when offering such merchandise, state where same originated and sell such mer- chandise of each section in accordance with the schedule of maximum prices applicable thereto. When various sections are sold all together as one lot the price shall be the price of the district and kind, according to the schedule, which commands the least. The maximum prices in the schedule for country domestic green salted and dry hides are based on carload lots at point of shipment. In country hides, sold on a selected basis, a hide with one grub is a grubby hide. A butt-branded hide, in hides sold on a selected basis, is a No. 2. The maximum price on black hides, special selection suitable for robes, is 2.3 cents flat. Weights 25 to 50 pounds (not over 41 pounds average) are one-fourth cent less than weights 25 to 45 pounds of the same kind, excepting where the price for 45 to 60 is the same price as that for 25 to 45. The designation of " mostly or practically free of grubs, but no mention for hair " is changed to " not over 15 to 20 per cent grubby." Maximum prices on Canadian country hides are to correspond with domestics of similar merit and description, ( " Canadian hides " embrace those from other North American British possessions.) It is recommended that the practice of curing hides in vats be stopped. When hides are sold to be free of ticks and not over 50 per cent ticky hides are found on a beam-house selection, the buyer will accept the ticky hides at not over the applicable maximum price of ticky hides, but if more than 50 per cent ticky hides are found on the beam-house selection, the entire lot must be billed at not over the applicable maximum price foe- ticky hides. When sales are made of hides not over 15 to 20 per cent grubby and are found at destination to exceed 20 per cent grubby, the excess over 20 per cent up to 50 per cent shall be at the maximum price for grubby hides. If at destination the percentage of grubby is found to exceed 50 per cent, the seller shall bill the entire shipment at the maximum price for grubby hides. The following modifications occur in the regulations for the take-off of August, September, and October : Tanners are not permitted to buy green or slack-cured stock of butchers (ex- cepting packers, abattoirs, and wholesale butchers) unless at 20 per cent less on hides and kips and 124 per cent less on skins than the maximum green salted prices. Tanners are not permitted to buy green salted hides, kips, or skins of a butcher in less than carload lots at a higher price than 10 per cent less than the maximum green salted prices. All hides and skins must be bought and sold on a selected basis. The general regulations regarding the sale of country hides for November, December, and January, 1919, follow : All hides and skins must be bought and sold on selection. The actual selec- tion must be made. Dealers who accumulate hides, kips, and skins from various sections shall, when offering such merchandise, state where same originated and sell such mer- chandise of each section in accordance with the schedule of maximum prices applicable thereto. When various sections are sold all together as one lot the price shall be the price of the district and kind, according to schedule, which commands the least. The maximum price on black hides, special selections suitable for robes is 1 cent over the regular maximum for the same grade. No tanner is allowed to pAy a brokerage or other compensation on country hides, kips, calf, goat or sheep pelts, dry or green salted, or on horsehides when the cost to the tanner, including such brokerage or other compensation, exceeds the prescribed maximum. A go-between can not charge a brokerage to GOVERNMENT EEGULATTONS RELATING TO PRICES. 735 both buyer and seller. No one owning a lot of hides or skins can charge his CTstomeV a brokerage when selling same. No dealer or tanner is allowed to buy less than carload lots within 5 per cent of maximum prices. Domestic August, September, and October take-off hides, kips, calf and goat sldns, and horsehides not sold on or before December 1 shall be governed by November and December prices. Domestic November and December take-off hides, kips, calf and goat skins, and horsehides not sold on or before February 1 shall be governed by January, 1919, prices. Thirty-six thousand pounds of green salted hides and skins shall constitute minimum carload. Twenty thousand pounds dry hides and skins shall con.sti- tute minimum carload. It shall not be permissible to exceed the maximum prices l)y paying rela- tively more than same for green or slack cured weight. All the other regulations governing the sale of coiintry hides are similar to the provisions of the August, September, and October maximum-price schedule. DOMESTIC COUNTRY HIDES. Description. Best sections, such as Ohio and Middle West (including West Virginia and Pennsylvania): Extremes, 25 to 45 pounds, No. 1 BufEs, 45 to 60 pounds. No. 1 Heavy native steers, 60 pounds and up, No. 1 Light native steers, 50 to 60 pounds, No.l Heavy native cows, 60 pounds and up,"No. 1 Bulls, all weights Bulls, 60 pounds and up, No. 1 Kips, 15 to 25 pounds. No. 1 Calf, 8 to 15 pounds, city first salt, equal to Chicago, No. 1 Calf, outside, city Calf, country. No. 1 Ripe calf, 7 "to 8 pounds Deacons Kansas, Illinois, Missouri, Iowa, Ne- braska, Wisconsin, Minnesota, North and South Dakota (western North and South Dakota and Illinois not included in August, September, and October take-off): Extremes, 25 to 45 pounds, No. 1 Buffs, 45 to 60 pounds, No. 1 Heavy native steers, 60 pounds and up, No. 1 Light native steers, 50 to 60 pounds, No.l Heavy native cows, 60 pounds and up. No. 1 Bulls, 60 pounds and up, No. 1 Kips, 15 to 25 pounds. No. 1 Calf, 8 to 15 pounds, city first salt, equal to Chicago, No. 1 Calf, country, N0.-I Light calf, 7 to 8 pounds Deacons Southeastern hides (Kentucky to Florida and Maryland to Mississippi and Louis- iana east of Mississippi, but excluding West Virginia): Ticky— Extremes, 25 to 45 pounds Buffs, 45 to 60 pounds (or 45 and Stocks and take-off to and including Apr. 30, 1918. Grubby, long hair, poor season. 80.19 .18 .24 .37i .34 2.50 2.30 up). Bufis •..- Kit>s, 15 to 25 pounds Caff, 15 pounds and down. Not over 15 to 20 per cent grabby. 80.21 .19 .19 .15 .36 2.60 2.40 Take-off for- Flat. .14 .14 .12 .14 .24 Flat. .16 .16 .14 .16 .24 June, and July. August, Septem- ber, and October. }.22 .22 .25i .17 .38i .34 2.70 2.50 Flat. .181 .18i .15 .19 .30 November and December. $0.22 .21 .24 .23 .23 .17 .24 .34 2.70 2.50 .21J .20i .23i .22J ,.22i .16J .23i .44 .34 2.70 2.50 January, 1919. 80.22J .20i $0.20J • 2.31 .22J .22i .21i ■22i .21i .IGi .23i .34 2.50 2.30 .20i .22i .21i .214 .151 .22J .40 .34 2.50 2.30 .15J .22} .84 2.50 2.30 .19} .18} .21} .20} .20} .14} .21} .40 .34 2.50 2.30 736 HISTORY OF PRICES DURING THE WAR. DOMESTIC COUNTRY HIDES— Continued. Stocks and take-ofl to and including Apr. 30, 1918. Take-oS for- Description. Grubby, long hair, poor season. Not over 15 to 20 per cent grubby. May, June, and July. August, Septem- ber, and October. November and December. January, 1919. Southeastern hides— Continued. Free of ticks — Extremes, 25 to 15 pounds Select. $0. 18i .16i Flat. .13 .12 .18 .31J Select. 80. 20J .17i Flat. .15 .14 .20 .31i Select. $0,211 .211 Flat. .17 .15 .21^ Buffs, 45 to 60 pounds Native bulls Branded bulls Kins, 15 to 25 pounds Calf.'..... ...^.. .. Kentucky, Tennessee, Maryland, North Carolina, Virginia, District of Columbia: Extremes, 25 to 45 pounds. No. 1 $0. 2U .20i .16i .23i .44 .34 2.70 2.50 .19i .18i .15i .20i .41 .31 .m .19i $o.m .19i .15J .221 .40 .30 2.50 2.30 .18i .171 .141 .19} .37 .30 .19f .m $0 20 Buffs, 45 to 60 pounds. No. 1 .19 Bulls, 60 pounds and up. No. 1 .15 Kips, city and country. No. 1 22 Calf, 8 to 15 pounds, city first salt equal to Chicago, No. 1 .40 Calf, country. No. 1 .30 Light calf, 7 to 8 pounds 2.50 Deacons 2.30 Ticky hides, kips, and skins at 2 cents per pound less than free of ticks. Florida, Alabama, Mississippi, Georgia, South Carolina, Louisiana east of Mis- sissippi River: Ticky hides- Extremes, 25 to 45 pounds or 30 to 45 pounds. No. 1 . 18 Buffs, 45 pounds and up. No. 1 .17 Bulls, 60 pounds and up, No. 1 .14 Kips, 15 to 25 pounds or 15 to 30 pounds, No. 1 .19 Calf, city first salt. No. 1 .37 Calf, country. No. 1 .30 Free of ticks, 2 cents per pound more. Texas, Oklahoma, Arkansas, Louisiana, i#est of Mississippi River: Extremes, 25 to 40 pounds or 25 to 45 pounds. No. 1 Flat. .15 .14 .13 Flat. .18 .18 .15 Flat. .19? .19f .17 19 Buffs, 40 or 45 pounds and up. No. 1 . . . Native bulls .18 Native bulls, 60 pounds and up .17 Bulls, 60 pounds and up. No. 1 .14} .U Branded bulls .12 .14 .15 Branded bulls, 60 poimds and up .i5 .2H .32 Kips, 15 to 25 pounds, No. 1 .16i .24 .15 .12 .19 .24 .16 .14 .21* .30" .16 .15 .201 .30 20 Calf, 15 pounds and down. No. 1 Western parts of North and South Dakota: Country branded hides .30 Bulls Bulls, 60 pounds and up .15 .17 .20 Hides, 25 poimds and up,side, branded Hides, 25 pounds and up, imbranded (except butt branded, which are classed as No. 2) Kips, G. S. branded States .20J .221 .20f Kips, 15to 25 pounds .21 Native, unbranded hides .15J .161 .m Calf, city and coimtry .38i Colorado, Wyoming, Montana (including LTtah for May, June, July): Country branded hides .15 .12 .16 .14 .16 .15 Bulls Bulls, 60 pounds and up .15 Kips, G. S., branded States .20i .22J .20J Kips, 15 to 25 pounds, No. 1 .21 .20§ .19J Native, unbranded hides .15i .16i .191 Hides, 25 pounds and up, side branded .17 .20 Hides, 25 pounds and up, unbranded (except butt branded, which are classed as No. 2) GOVEKNMENT REGULATIONS RELATING TO PRICES. DOMESTIC COUNTRY HIDES— Continued. 737 Desciiptioii. Stocks and take-off to and including Apr. 30, 1918. Grubby, long hair, poor season. Not over 15 to 20 per cent grubby. Take-ofl for— May, June, and July. August, Septem- ber, and October. November and December. January 1919. Colorado, Wyoming, Montana— Con. Calf, city and country, No. 1 Buffs, 45 pounds and up. No. 1 (no selections for brands) Extremes, 25 to 45 pounds. No. 1 (no selection for brands) California^ Oregon, Washington, Nevada, Idaho, and Utah after July: 30 to 50 pounds Over 50 pounds Steers, 50 pounds and up, No. 1 Cows, 60 pounds and up, No. 1 Extremes, 30 to 45 pounds. No. 1 Buffs, 45 pounds and up, No. 1 Native buUs, 60 pounds and up. No. 1 Bulls, branded, 60 pounds and up, No.l Kips, 15 to 30 pounds. No. 1 Calf, partly trimmed California, Nevada, and Utah cities and countries Calf, Portland, and Seattle, trimmed. Calf, short trimmed Oregon, Wasliington, and Idaho, cities and countries Calf, long trimmed Arizona and New Mexico Hides, weights 25 pounds and up Extremes, 25 to 45 pounds No 1 Buffs, 45 pounds and up. No. 1 Bulls, 60 pounds and up, No. 1 Native bulls, 60 pounds and up Branded bulls, 60 pounds and up . Kips, 15 to 25 pounds, No. 1 Calf, 15 pounds down, No. 1 No selection for brands on Nov- ember, December, and Janu- ary, 1919, take-ofi. Dry hides, 16 pounds and up — Bulls two-thirds price and glue half-price after July. 7 to 16 pounds Kips, 7 t o 16 pounds, glue out Calf - Calf , under 7 pounds, glue out New England hides (Maine, Vermont, New Hampsliire, Massachusetts, New York, Connecticut, Rhode Island, and Delaware and New Jersey after July): Extremes, 25 to 45 pounds, No. 1 Biifls, 45 poimds and up. No. 1 Heavy steers 60 pounds and up, No. 1 Heavy cows 60 pounds and up. No. 1 Bulls .- 60 pounds and up. No. 1 Bjps, including grassers. No. 1 Hawaii, Honolulu; - 30 to 50 pounds 50 pounds and up Stocks and take-ofl to and in- ' eluding Apr. 30, 1918, 30 to 50 pounds, $0.18i. Stocks and take-ofl to and includ- ing Apr. 30, 1918, 50 pounds and up, 80.20. Flat. Flat. Flat. S0.38J .15 Select. .35 Flat. .39 .15} .16i 80.18i .20 .39 .24 "."ie" .25' .18i .20 .19 .17 .15 .21} .32 .39 .45 .21 .20} .23 .22" .16 .24 .18} .20 .35 .171 .181 .22i •21i .20i .19i .161 •14J .221 .36 .40 .191 .181 .14J .20f .3t) .34 .201 .191 .22i .15i .23i .17} .19 $0.35 .17 .18 .21} .20} .19} .18} .15} .13} .21} .20 .30 .34 .21 .20} .14} .22} .17} .19 125547°— 20- -47 738 HISTORY OF PRICES DURING THE WAR. CALFSKINS. The maximum prices set on large city first-salt skins, outside city skins, and country skins do not apply to the Pacific coast. Other eastern trimmed calfskins not equal in all respects to New York city skins shall sell at relatively less, according to their value. Nobody shall be allowed to give the butcher a bonus because this practice Is construed to mean paying more than the maximums. DOMESTIC CALFSKINS (NOT OTHERWISE PROVIDED FOR). Description. Stocks on hand May 1 and take-off for May, June, and July. Take-ofl for- August, Septem- ber, and October. November, December, and Jan- uary, 1919. Chicago city first-salt calfskins and other large city first-salt calfskins. Light calf, 7 to 8 pounds Deacons New York City trimmed calfskins and other eastern city trimmed calfskins equal in all respects to New York City: 4 to 5 pounds 5 to 7 pounds 7 to 9 pounds 9 to 12 pounds 12 to 17 pounds 17 to 25 pounds Buttermilk calf $0.44 3.17 2.97 3.10 4.00 5.00 6.00 7.00 7.50 125 $0.44 3.30 3.10 3.10 4.00 5.00 6.00 7.00 7.50 »25 $0.40 2.95 2.80 2.80 3.60 4.50 5.40 6.50 6.50 >15 1 Per cent discoimt. . DOMESTIC PICKLED SHEEP AND LAMB SKINS. STOCKS ON HAND MAY 1 AND TAKE-OFF FOE MAY, JUNE, AND JULY, 1918. The schedule below is for all green salted packer and city butcher skins of strictly good take-ofl. All green salted coimtry butcher and city butcher skins showing poor take-ofl shall be selected on the same basis, but the price shall be 3 cents per square foot less than price paid for the various grades of strictly good packer and city butcher take-on. All pickled skins to be graded according to the following specifications, the grades to be identified by numbers. Grade No. Description. Price. 10 Bull sheep: Super heavy, measuring over 120 square feet and weighing 45 poimds and over, per dozen Heavy sheep: Heavy clear sheep, measuring over 110 square feet, per dozen Clear sheep: Sheep with clear, smooth, and sound grain, measuring over 100 square feet, containing no blind ribs, no ribby skins, and free from cockle Blind rib sheep: All sheepskins measuring over 100 square feet , having a blind rib, no ribby skins, or defective grain '. Ribby sheep: All other ribby sheep measuring over 75 square feet, no defective grain. No. 2 sheep: All sheep measuring over 100 feet rejected from 1, 2, 3, 4, and 6 grades, with poor and defective grain, value but not to exceed Prime lambs: All smooth, clear lambs, 65 to 100 square feet, inclusive, strictly good pattern; no blind rib or ribby skins; no open grain skins; no torn skins; absolutely free from cockle and pinny skins Blind rib lambs: All lambs containing a blind rib, strictly good pattern; no ribby skins and no damaged grain; no torn skins and no cockle; 75 to 100 square feet Ribby lambs: Lambskins showing ribby or open grain, cockle skins, and pinholes up to 75 square feet Small lambs: All lambskins 50 to 64 square feet, rejected from Nos. 7, 8, and 9 on accoimt of size ; Torn skins: All torn skins or badly cut skins over 50 feet; all heated skins Pieces and culls: All pieces and culls and torn skins under 50 feet; all heated skins.. . $0.18 .16 .14 .12 .11 .08 .15 .14 .09 Value. Value. Value. GOVERNMENT REGULATIOlSrS RELATING TO PRICES. 739 DOMESTIC PICKLED SHEEP AND LAMB SKINS. TAKE-OFF FOR NOVEMBER, DECEMBER, AND JANUARY, 1919. The schedule below is for all green salted packer and city butcher skins of strictly good take-ofl. All ereen salted country butcher and city butcher skins showing poor take-off shall be selected on the same basis, but the price shall be 3 cents per square foot less than price paid for the various grades of strictly good packer and city butcher take-on. . .^ ^. ^^ ^ ^ ■. -j ^-^ j v. All pickled skins to be graded according to the foUowmg specifications, the grades to be identified by numbers: Grade No. Description. Bull sheep: Super heavy clear sheep measuring over 120 square feet Heavy sheep: Heavy clear sheep measuring over 110 square feet Clear sheep: Sheep with clear, smooth and sound grain, measuring over 100 square feet, containing no blind ribs, no ribby skins and free from cockle. Blind rib sheep: All sheepskins measuring over 100 square feet having a blind rib; no ribby skins or defective grain; slight cockle Ribby and cockley sheep: All other ribby sheep measuring over 100 square feet; slight grain damage and all cockle; skins not suitable for grade No. 4 permitted if otherwise sound - - No. 2 sheep: All sheep rejected from 1, 2, 3, 4, and 5 grades, with poor and defective grain, value but not to exceed - - - -. — Prime lambs: All smooth, clear, lambs 75 to 100 square feet, inclusive, strictly good pattern; no blind rib or ribby skins; no open gram skins; no torn skins; absolutely free from cockle and pinny skins Blind rib lambs: All lambs containing a bUnd rib, strictly good pattern; no ribby skins ,damaged grain or torn skins; slight cockle, 75 to 100 square feet, Ribby and cockley lambs: Lambskins showing ribby or open grain; cockle skins and pinholes, 75 to 100 square feet Small lambs: All lambskins under 75 square feet rejected from Nos. 7, 8, and 9 on account of size (relative value) Tom skins: All torn skins or badly cut skins over 50 feet; all heated skins (relative value) • - — - - • ■ Pieces and culls: All pieces and culls, and torn skins under 50 feet; all heated skins (relative value) Present price. Relative value. .18 .16 .14 .11 .09 .07 .15 .13 .09 All wool pelts taken off before November 1, when ready for sale in the pickle, may be sold at prices ruling as of August 1 to November 1, providing a suitable affidavit concerning the quantity and date of take-off is filed prior to November 5, giving inventory of all wool pelts on hand or m process November 1. Imported pickled sheep or lamb skin pelts or pickled pelts reduced from imported wool skms to be sold at their value relative to the various kinds and selections as established above. The number of square feet mentioned in the various paragraphs refers to square feet per dozen skms. All country skins showing take-ofl equal to city butcher skms of equal take-ofl will receive the same prices that are allowed to city butcher skins. HORSEHIDES. General reguIatiom.—A\l prices are f. o. b. shipping point, free of manes and tails. Prices vary according to the section of the country and also with the differences in sizes and widths of butts or lengths of shanks. For the November, December, and January, 1919, take-ofl certain modifications were made, as follows: City Tenderers would mean only such hides as are actually taken off in a rendering establishment and a sworn affidavit executed by a notary must accompany each shipment. City Tenderers that are taken ofl in the States of Virginia, West Virginia, Tennessee, North and South Carolina, Georgia, Alabama, Florida, Mississippi, Arkansas, Missouri, Louisiana, Oklahoma, New Mexico, and Arizona, shall be classed as Southern horsehides and shall sell for S6.25 for Nos. 1 and 2. Country horsehides from the above-men- tioned States shall not sell to exceed $6, including mules. Any dealer accumulating southern horsehides at points along the Missouri and Ohio Rivers must so designate as same and sell as such. DOMESTIC HORSEHIDES. Description. Stocks on hand May 1, and take-ofl for May, Jime, and July. Take-ofl for- August, September, and October. November, December, and January, 1919. Whole horsehides: City Tenderers — Accompanied by affidavit Nos. 1 and 2 Ordinary cities and countries Nos. 1 and 2 Southerns Nos. 1 and 2 ■ Southern countries Ponies and glues, half price. Headless hides (one that is trimmed ofl back of ears), 50 cents less. S8.00 $7.50 $7.50 $6.75- 7.50 ' 6. '66^ '6.50 S6.25- 7.00 '5.56^ '6.00 $6.25- 7.00 6.25 6.00 740 HISTORY OF PRICES DURING THE WAR. DOMESTIC HORSEHIDES— Continued. Description. Stocks on hand May 1, and take-oft for May .June, and July. Take-off f or- August, September, and October. November, December, and January, 1919. Colts Horse fronts No. 2 and headless horse fronts, 50 cents less. Butts: Green salted- Length, 15 to 18 inches Length, 18 to 20 inches Length, 20 to 22 inches Length, 22 inches and up No. 2 and short shanks, 25 cents less. Butts of different sizes and widths at relative prices. J5. 75-86. 25 1.25- 1.40 1.50- 2.00 2. 25- 2. 50 2.50- 3.15 |0.25-$1.00 4.75- 5.50 1.15- 1.30 1.75- 1.90 2. 15- 2. 30 2. 75- 2. 90 «0.25-$1.00 4.75- 5.50 1.15- 1.30 1.75- 1.90 2. 15- 2. 30 2. 75- 2.90 FOREIGN WET SALTED HIDES. Regulations for the sale of stocks on hand May 1, 1918, and importations shipped up to and Including July 31, 1918 : May, June, and July shipments of foreign short-haired hides taken off north of the Equator have maximum prices 10 per cent over maximum prices set. Hides on which the maximum prices are quoted weighed and delivered should, when bought on shipping ■weight, not cost relatively more than the New York weighed and delivered basis maximum. Australian and New Zealand hides, having been inactive here for a long time, were given nomiual maximums. If possibilities of actual business arise and are brought to the attention of the hide, leather, and tanning materials section the matter will be given proper consideration. A price for New Zealand meat works has been made below. Mataderos : Kips, the weight (both range and average) varies, and may continue to do so according to custom. All prices are quoted in cents per pound. The following modifications occur in the regulations for the sale of the August, Sep- tember, and October take-off : All prices in Argentine gold are per 100 kilos f. o. b. ship, unless otherwise noted, and include export duty and lighterage, but salting on ship is for buyers' account. Copy of invoice covering each transaction will be required. No deviation may be made from these terms ; no buyer shall assume the export duty and lighterage, even though the total cost comes within the maximum price. For the take-off of November and December there were the additional regulations : A go-between may not charge a brokerage to both buyer and seller. No one owning a lot of hides or skins may charge his customer a brokerage when selling same. Brokerage on foreign cattle hides and skins shall not exceed 2 per cent. The brokerage on foreign goatskins, sheepskins, and other skins (excepting cattle hides and skins) shall not exceed 3 per cent. Shipments of dry kips under 12 pounds and dry salted kips under 15 pounds, when mixed with common dry hides (such as Bogota, Orinocos, Porto Cabellas, La Guairas, Central Americans, etc.) shall be sold at two-thirds the price of the hides, or rejected, at buyer's option. Shipments of dry kips under 14 pounds mixed with hides from Mexico, West Indies, and Peru shall be sold at two-thirds price, or rejected, at buyer's option. The following schedules give the prices fixed by the pl-ice-flxing committee of the War Industries Board : Stocks on hand May 1, 1918, and ship- ments from Description. point of Remarks. origin to , and including July 31, 1918. Buenos Aires frigorifico: Steers S0.31i Shipping weight, c. i. f.. New York Cows .23 basis. Do. Montevideo frigorifico: Steers .31 J .22 .26 .21 Do. Do. Do. Do. Cows Buenos Aires city matadero well taken off: Steers Cows GOVERISTMENT REGULATIONS RELATING TO PRICES. 741 Description. Stocks on hand May 1, 1918, and ship- ments from point of origin to and including July 31, 1918. Argentine city matadero well taken off: Steers - - Cows Argentine country matadero and campos: Steers Cows Paraguay country matadero and campos: Steers Cows Paraguay city matadero and campos: Steers Cows Montevideo city matadero: Steers Cows Buenos Aires matadero kips Montevideo matadero Jdps Argentine and Uruguay saladero: Steers Cows Rio Grande saladero: Steers Cows sa.0 Paulo frigorlflco hides Rio Janeiro bides • Bahia hides Pemambuco hides Minas hides Venezuela frigoriflco hides Colon (cemmissariat) hides Colombia city hides Panama hides West Indian hides Guinas hides Havanas packers' hides Havanas specials hides Havanas regular hides Mexico city packers' hides Mexico city and neighborhood hides Vera Cruz hides Vera Cruz rastro hides - Puebla hides Pachuca rastro hides Orizaba hides Gueretaro hides Quadalajara hides Oaxaca hides *- Frontera hides Tabasco hides Campeche hides Laguna hides Northern Mexican city hides Tampico hides Progresso hides Chile (Valparaiso) hides Peru (Lima) hides China packers' (heavy) hides China packers' (light) hides Shanghai hides Queensland butchers' hides (nominal) Australian meat works' hides (nominal) New South Wales butchers' hides (nominal) New Zealand hides (nominal) Rangoon hides (nominal) China bufEalos' hides New Zealand meat works' hides: Steers SO. 24^ .20 Remarks. Cows. .19 .19 .19 .19 .20 .20 .25 .20 .24 .22 .29 .24 .29 .24 .25 .16 .22 .23 .16 .27 .22 .24 .21 .20 .20 .22 .21 .20 .24 .23 .22 .25 .23 .22^ .22J .22i .231 .23^ .21^ .21 .21^ .21^ .22 .21^ .20 .24 .25 .27 .25 .24 .22 .26 .24 .26 .18 .17 .27^ Shipping weight, c. i. f., New York basis. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Weighedand delivered New York basis. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. . Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. C.i. f . shipping weight 3 per cent shrink- age guaranteed. Do. 742 HISTORY OF PRICES DURING THE WAR. Description. Shipments from ongin August, September, and October. Shipments from origin November, December, and Jan- uary, 1919. Buenos Aires Frigorifico: Steers Cows , Montevideo Frigorifico: Steers Cows River Plate Frigorifico type steers. River Plate Frigorifico type: Cows Kips Calf. 353.00 40.00 53.00 40.00 1 48. 50 2 36. 00 2 38.00 Argentina and Uruguay Saladero steers , Argentina and Uruguay Saladero cows , Frigorifico tj'pe Chilians (Valparaiso) hides , Habana and Santiago regular hides , Argentine City special Matadero steers • , Argentine City special Matadero cows Buenos Aires and Montevideo Frigorifico kips, 15 to 25 pounds Buenos Aires and Monte\'ideo Frigorifico kips, not over 32 pounds, average. Buenos Aires and Montevideo Frigorifico bulls , Morris & Co., San Salvador hides , Swifr & Co., Asuncion hides Montevideo City Matadero: Steers Cows , Kips Extremes Buenos Aires and extremes Rio Grande Saladero: Steers , , Cows Sao Paulo Frigorifico hides 50.00 36.50 3.25 3.20 (») $61.00 44.00 61.00 44.00 158.00 2 43. 00 2 47.00 2 38.50 57.50 40.00 <.28l <.20i 49.00 47.00 42.00 (') •.28i <.23 <.23 «.22 56.50 40.00 3. 26 J ' 10 per cent shrinkage guaranteed. 2 10 per cent shrinkage. 3 Weighed and delivered at New York. * C. and f. New York or Boston. r » Price shall be relative to regular Frigorificos. FOREIGN HORSEHIDES. Description. Take-off for November and December, 1918. Chile and Buenos Aires City G. S. hides: Not under 25 kilos average and free of ponies, colts, and glues . . . (Headless and seconds, 50 cents less.) Chile and Buenos Aires Province or Campos: About 18 to 20 kilos, average and free of ponies, colts, and glues. All China dry horsehides: No. I's, about 16 to 17 pounds, average No. I's, about 12 to 13 pounds, average No. I's, about 10 pounds, average (No. 2's, 50 cents less.) (No. 3's, half price.) 1 $7. 50 15.75 3.50 2.75 2.50 1 C. and f ., shipping weight. FOREIGN DRY HIDES. Regulations for the sale of hides included in the original regulations for May, June, and July, 1918 : May, June, and July shipments ol foreign winter haired dry hides, taken oflE south of the Equator, have maximum prices 10 per cent over the maximum prices set. Cordova (Argentina) dry hides include hides from Salta, Santiago del Estero, and Metan. Maximum price of inservibles shall not be over 50 per cent of the maximum price of the best selection of the same kind. Maximum price on all dry salted hides is 6 cents less than dry flint in all cases where it has been customary to sell lots running all or practically all dry salted and in such cases the hides with pickle on them are .3 cents under dry flints. In other cases the customary conditions prevail. The percentages of desechos mentioned in Argentine and Uruguay dry hides do not apply to kip and calf. Kip and calf are free of mal-desechos and are inservibles. Venezuela, Colombia, Equador, Central America, West Indies, San Domingo, Haiti, and Porto Rico kip, maximum price 1 cent per pound over maximum price for hides of the respective countries ; calf, maximum price 6 cents over the maximum price for hides of the respective countries. GOVERITMEN^T REGULATIONS RELATING TO PRICES. 743 Bogota Mount slaughterhouse hides accompanied by a statement sworn to before United States consul or consular agent that they are slaughterhouse hides, such state- ment to be attached to invoice to United States buyer of hides to have a maximum price of 1 cent more than the maximum price ruling on Mount Bogotas. Guayaquil slaughterhouse hides* accompanied by statement sworn to before a consul or consular agent that they are slaughterhouse hides, such statement to be attached to invoice to United States buyer. Maximum price to be 33i cents for dry. All prices are quoted in cents per pound. The schedule of maximum prices on hides and skins for August, September, and Octo- ber, 1918, contains a full list of hides of this class. In general it may be said that prices vary from the lowest prices for West Indian dry hides to the highest for Cordovan dry hides. Modifications of terms of sale for this period follow : When prices are on basis of New York weights, original selection, the certified arrival weights shall govern. When prices are on the basis of C. i. f. or c. and f. on original shipping weights, the customary shrinkage guarantees shall govern, unless otherwise specified. Cordova (Argentina) dry hides shall include Santiago del Ester o, San Luis, Salta, and Metan. Maximum price on all dry salted hides is 6 cents less thian dry flint in all cases where it has been customary to sell lots running all or practically all dry salted, and in such cases tlie hides witli pickle on them are 3 cents under dry flints. In other cases tlie customary conditions prevail. Maximum price of inservible hides shall not be over two-thirds of tlie maxi- mum price for hides of the basis selection of the same kind. Venezuela, Colombia, Equador, Central America, West Indies, San Domingo, Haiti and Porto Rico kip, maximum price 1 cent per pound over maximum price for hides of the respective countries ; calf, maximum price 6 cents over the maximum price for hides of the respective countries. Prices quoted are cents per pound. The prices for November and December remain unchanged. FOREIGN DRY HIDES. Description. Stocks and shipments from origin, to and including July 31, 1918. Remarks. Becerritos Buenos Aires, W. H., 30 per cent desechos: Hides Kips Calf Cordova, W. H., 15 per cent desechos: Hides Kips Santa Fe, W. H., 15 per cent desechos: Hides Kips Corriente, W. H., 15 per cent desechos: Hides Kips Entre Rios, W. H., 15 per cent desechos: Hides Kips Concordia, W. H., 15 per cent desechos: Hides Kips Montevideo, W. H., 15 per cent desechos: Hides Kips Calf Paraguay,.W. H., 15 per cent desechos: Hides , Kips Upper ^Parana, 15 per cent desechos, hides.. Brazil^ W. H., Rio Grande No. 1 selection: Hides , Kips Cuyuba, No. 1 selection, hides , Motto Grasso, No. 1 selection, hides , Bahia, hides Pemambuco, hides , Ceara, hides , Pamahyba, hides Minas (Rio Janeiro), hides Venezuela, Orinoco, hides Puerto Cabello and La Guayra, hides Colombia, Mount Bogota, hides Ambata and Latacunga, hides 80.54 C. and f.. New York or Boston. 34 Do. 43* Do. 56 Do. 37 Do. 46 Do. 34 Do. 40 Do. 32 Do. 36 Do. 34 Do. 40 Do. 34* Do. 40 Do, 35* Do, 42 Do. 54 Do, 30 Do. 34 Do. 33 Do. 34 Do. 36 Do. 33 Do. 33 Do, 343^ NewYo 34* Do. 37 Do. 37 Do. 30 Do. 33} Do. m Do. •m Do. 31i Do. New York delivery and selection. 744 HISTORY OF PRICES DURING THE WAR. FOREIGN DRY HIDES— Continued . Description. Stocks and shipments' from origin, to and including July 31, 1918. Remarks. Guayaquil cities (excepting slaughterhouse), hides. Guatemala city, hides Guatemala country, hides Honduras, hides Honduras Ampala, hides San Salvador, hides Nicaragua, hides Costa Rica, hides Panama, hides Ecuador: Mount Quito, hides Mountain, hides Coast, liides , Peru: Hides Kips (flat, free of glue) Bolivia: Hides, trimmed Hides, untrimmed or partly trimmed West Indian, San Domingo, Haiti, hides Porto Rico, hides Mexico: Northern — Hides Kips Calf (free of glue) Pueblo, San Geronimo, and west coast, hides . Chihuahua, hides Java, shaved, best quality and selection: About 1 to 6 pounds (about 2 kilos average) . . . About 6 to 10 pounds (about 3i kilos average) . About 10 to 15 pounds (about 6 kilos average) . Rangoon, arsenicated: Calf Calf, 6 to 10 pounds average Calf, 12 to 16 pounds average Dry salted, 16 to 20 pounds average Cape of Good Hope and South Africa: Best selection Best selection, dry salted Nigeria: Hides, first selection Kips, excluding glue Calf, excluding glue Madagascar: Best selection Dry salted Mombassa: Hides and kips Calf Abyssinian: Hides and kips Calf Soudan: Hides and kips Calf BUFFALOES. East India, winter season: Commissariat slaughters Dacca slaughters Rangoon, winter season: First selection, dry Dry salted Trimmed and shaved Java, best season: Trimmed and shaved Chin.i, winter season: Trimmed and shaved Arsenicated Dry salted China, Hongkong: Shaved Dry Dry salted SO. 311 . 3,5 J .34} .32 J .33i .33} .32} .32} .32} .33} .29} .25} .32 .38 .34 .55 .29 .31 .33 .39 .45 .54J .34' .75 .68 .62 .40 .36 .32 .26 .34 .32 .26 .26 .31 .30 .20 .30 .35 .30 .35 .28 I ..33 I 13d 8d $0.20 .16 .33 New York delivery and selection. Do. Do. Bo. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. New York freight, selection as cus- tomary. Do. Flat, New York basis. Jo. New York freight, selection as cus- tomary. r.andf. Do. Do. Do. Do. Do. Do. Do. Do. Do. Flat, c. andt. Do. C. and f. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. C. i. f. and war risk for first selection. Do. Do. Do. Do. Do. Do. GOVEBNMENT REGULATIOIfS RELATING TO PRICES. FOREIGN DRY HIDES— Continued. 745 Description. Remarks. BUFFALOES. West Indies: Santo Domingo and Haiti — Dry flint hides Dry salted, flat , Cordova, W. H., 15 per cent desechos: Hides Kips New York delivery and selection. Do. G. and f., New York or Boston. Do. Description. Stocks and shipments from origin, to and including July 31, 1918. lto6 pounds. 6tol0 poimds. 10 to 14 pounds. 14 to 20 pounds. 20 to 24 pounds. 24 to 30 pounds. 30 and up pounds. China: Hankow, B. S. W. H. (2's 6 cents less) Shanghai, B. S. W. H. (2's 6 cents less)... Hongkong, original run , flat Thibet, B. S. W. H. (2's 6 cents less) Neuchwang, B. S. W. H. (2's 6 cents less) Mongolia, B. S. W. H. (2's 6 cents less) . . . $0.55 .54 .36 .45 .45 .45 SO. 48 .47 .33 .37 .37 .37 $0.46 •45 .32 .35 .35 .35 $0.44 .43 .31 .33 .33 .33 $0.42 .41 SO. 40 .39 .30 .30 .30 Above prices are c. i. f. and war risk. Shipment from origin, August, September, October. 1-6 1 6-10 pounds, pounds. 10-14 pounds. 14-20 poimds. 20-24 pounds. 24-30 pounds. 30-»p. pounds. China: Hankow, B. S. W. H. (2's 6 cents less) ... . Shanghai B. S. W. H., same trim as Han- kow (2's 6 cents less) $0.53 .52 .36 .69 $0.48 .47 .33 .62 $0.48 .47 .33 .56 .37 $0.46 .45 .32 $0.44 .43 .31 $0.42 j $0.40 .41 Hongkong, original run, flat Canton, shaved Tibet, Neuchwang, Mongolia, B. S. W. H. (2's 6 cents less) .45 ! .37 .35 .33 .30 .30 China prices are c. and f. New fork. CABRETTA AND SHEEPSKINS. Stocks on hand May 1 1, 1918, and ship- Description. ments from origin, to and includ- ing July 31, 1918. Remarks. Brazils $1.20 Per piece, landed basis New York. Punjabs: 700 pounds average for 500 skins 7.00 Per dozen. Each 100 pound additional .50 15.00 Per dozen more. China sheepskins, basis 2i pounds average Per dozen. Java sheepskins, basis IJ pounds average 11.00 Do. West Indians, 1 pound to 1^- pounds .65-1.00 Flat, per piece. Peruvian slats, f pound to 1 pound 2. 50-4. 00 Per dozen, according to quality and weight. Cape Town glovers, basis first heavies. . 2.20 Per sfin. (Lower grades and weights in proportion.) 746 HISTORY OF PRICES DURING THE WAR. CABRETTA AND SHEEPSKINS— Continue.l. Description. Stocks on hand May 1, 1918, and ship- ments from origin, to and includ- ing July 31, 1918. Remarks. Spanish lambskins: Basis, first wool, 12 to 13 kilos, primes Catalonian S21.00 13.50 2.00 1.70 1.40 1.15 1.00 .85 1.60 1.15 .90 .65 .80 1.00 .90 .70 .40 Per dozen. Do. Per skin. Do. Do. Do. Do. Do. Do. Do. Do. Do. Per skin. Do. Do. Do. Do. (Other weights and grades in proportion.) Oriental Iambs, basis 95 to 100 kilos Black-head Mocha sheepskins: Average No. 1, 200 to 210 pounds Average No. 1, 170 pounds Average No. 1, 140 pounds Average Np. 1 , 125 pounds Average No. 1, 110 pounds Average No. 1 , 95 pounds (All seconds at two-tliirds price.) White heads: Average No. 1 , 225 pounds Average No. 1, 179 to 180 pounds Average No. 1, 140 to 150 pounds Average No. 1 , 120 to 125 pounds (All seconds at one-half price.) Mombassa sheepskins; No. 1, 150 to average. (Seconds at | price.) Mombassa shade dried 160 pounds (Seconds at § price.) Red Head Mocha sheepskins: AverafR No, 1, 160 to 17n poiinds. Average No. 1, 140 to 150 pounds Average No. 1^ 115 to 120 pounds (Seconds at J price.) Description. Shipments from point of origin, August, September and October. Remarks. Brazil, banded, bans, over 2 pounds, heavies, regu- lar primes. Punjab: Sheep pelts, 400 pounds average for 500 skins Wool sheep, 1,500 pounds average for 500 skins... Madras and southern India sheep: Basis, 85 per cent primes; 15 per cent seconds, average about 185 to 200 pounds. West Indies sheepskins; basis i tol^ pounds average. Spanish lambskins, first wool, second wool, 13 to 14 kilos: Basis, Citalonian primes. $1.30 7.00 13.50 11.00 SO. 65-1. 00 21.00 23.00 21.00 19.00 13.00 12.25 11.75 11.00 9.00 14.00 13.25 12.75 12.00 10 00 18.00 Each. Per dozen. Do. Do. Each. Per dozen. 18 to 19 kilos Do. 13 to 14 kilos Do. 8 to 9 kilos Do. Macedonian lambskins: Average about— 95 to 100 kilos Do. 80 to 90 kilos Do. 70 to SOMlos Do. 60to70kilos Do. 50 to 60 kilos Do. Grecian lambskiflS: Average about— ~ 96 to 100 kilos ...'. Do. 80 to 90 kilos Do. 70 to SO Idlos Do. 60 to 70 kilos Do. .50 to 60 kilos . . Do. Prime Macedonian and Grecian sheen'Trirs ar*' Kavlaks, average over 140 kilos. Do. GOVERNMENT REGULATIONS RELATING TO PRICES. 747 GOATSKINS. The prices on goatskins, as given in the following schedule of May 1, 1918, were con- tinued in force through December, 1918, without change : Angoras, straight $0. 42J Angoras, light crossbred .50 New Mexico, No. 1 .75 Navaho, No. 1 .85 (No. 2's, kids and bulls, two-thirds price.) Domestic skins . ^ 12. 00-15. 00 Packers ' 18. 00 Mexico : , Oaxacas, flat ($0.90 per pound) =1.65 Pueblas, flat ($0.85 per pound) "2.00 Matanzas, flat ($0.80 per pound) " 2. 25 Frontiers, selected ($0.75 per pound) ='1.75 West Indies : .Tamaicas, flat ^. 85 Porto Plata, flat ^.65 Haitians, flat ^ . 65 Colombia, Bogoto, selected 1. 00 Venezuela : Barquisemetas, flat . 55 Coros, flat : . 50 Rio Hache, flat .45 Islands, flat . 43i Maracalbos, flat . 42| La Guayras, flat . 4l| Brazil : Brazils a 1. 30 For 110 average New York, with specials * . 05 Heavies, 20 per cent less than firsts. Bulls, light and seconds, two-thirds price of firsts. Bahias, on basis of 2i cents less per pound. Argentines : Cordobas (50 per cent Matedores and 50 per cent Campos), 9^ to 10 K., $0.85 for firsts; seconds, two-thirds price. Santiago, same price as Cordobas. "* Metans_,9J to 10 K, 10 cents less 75 San Luis, 10 K, 10 cents less 75 Saltas, 10 K 70 Bahia Blancas,ll to 12 K 60 Pampas(Buenos Aires Provinces), 11 to 12 K 62J Cordobas kidsMn per dozen. . 3. 50 Seconds, two-third price. Chilians: , Chile kidsMns , do 3. 50 Seconds, two-thirds price. Peru: Paytas, dry salted, selected basis per pound. . . 65 Peruvian goats (fiint dry) flat basis do 55 Piscos, dry salted, selected basis do 55 Bolivia: Bolivians , flat basis do 45 Africa: North Africans, no importations. Egypt, no importations . Capetown, basis prime extra lights do 70 Algoah Bay, basis prime extralights do 65 Kafir^ basis prime extralights do 55 Nigenan per dozen. . 14. 00 All primesfree kids. Weight,pounds, $1.30 per skin, lower qualities proportionately cheaper. Abyssinians , fiint dry flat Harrarsjflat Dmikali,flat - Berherah, flat Somali , flat Hodeidahs , flat Gizan and Gumflttah, flat Gatoway , flat Adan butchers, flat Mombassa, flat Firsts. Per cent. 60 60 10 50 10 60 60 60 (5) 25 Seconds. Per cent. 30 30 75 40 75 30 30 30 (5) 60 Thirds. Per cent. 10 10 15 10 15 10 10 10 10 15 pounds. 110 110 90 110 95 120 120 115 170 110 Per dozen. $12.00 12.50 9.00 13.00 9.00 11.00 11.00 10.50 18.00 12.50 * Per dozen, flat. ^ Average per pound. ' Per pound. * Less. 5 All firsts. 748 HISTORY OF PRICES DURING THE WAR. Spain : Ooatos and cheverettes dozen $30. 00 Greece : Macedonian goats, selected basis do 17. 50 Macedonian cheverettes, selected basis do 14. 00 India : Amritzar, basis 1,000 pounds for 500 skins; 85 per cent firsts, 15 per cent seconds dozen 13. 00 For each extra 100 pounds, per 500 skins additional do 1. 00 Wet salted Northwest : 40 inches and upward piece__ 1. 38 36 to 40 inches do 1. 33 33 to 36 inches do 1.23 28 to 33 inches do 1. 13 Seconds, 70 per cent of price of firsts. Dry salted : Patnas, about 550 average for 500 skins dozen 11, 00 Mozufferpores, about 550 average for 500 skins do 12. 00 Dinajporcs, about 550 average for 500 skins do 11. 75 Daccas. about 550 average for 500 skins do 13. 00 The above dry salted are all about 50 per cent primes, 30 per cent seconds, 20 per cent thirds. Calcutta, killed, about 675 pounds average dozen 15. 50 Kushitas, about 675 pounds average for 500 skins do 17. 00 Dry salted Calcutta and Kushitas are about 75 per cent primes, 15 per cent seconds, 10 per cent thirds. Northwests, about 900 pounds average for 500 skins, 60 per cent primes, 30 per cent seconds, 10 per cent thirds dozen 15. 00 Madras, 185 pounds average, flat do 14. 50 Coconada, 190 pounds average, flat do 15. 00 Javas : .Tavas, 82 pounds basis primes do 15. 00 China : Chowchings, short hair, 19 pounds per dozen, average, inclusive, 30 per cent seconds dozen 19.00 Chowchings, medium hair, 22 pounds per dozen, average, inclusive, 30 per cent seconds . dozen 16. 50 Chowchings, long hair, 27 pounds per dozen, average, inclusive, 30 per cent • seconds" dozen 16. 00 Shuntifus, $1 per dozen less than Chowchings. Patoingfu, S2 per dozen less than Chowchings. Tientsins, $3 per dozen less than Chowchings. Short hair descriptions may include 15 to 20 per cent medium hair. Seconds. Per dozen. Szechuens, 17 pounds average, inclusive Wanshiens, 19 pounds average, inclusive Honans, 18 pounds average, inclusive Clear River, 18 pounds average, inclusive Mud cured rivers, 21 pounds average, inclusive Per cent. 25 25 25 25 30 S27. 50 21.00 14.50 12.00 8.00 DEER AND ELK SKINS, The original schedule for deer and elk skins, effectiv.e May 1, 1918, was maintained through December, 1918, with a single exception, noted below : Flat. Tuxpans $0. 60 Flat. Guatemales $0. 75 San Salvador . 75 Honduras, trimmed . 70 Honduras, untrimmed . 65 Costa Ricas . 70 Central Americans . 70 Angosturas . 38 La Guayras . 35 Maracaibo . 29 Rio Hache .31 Sisals . 65 Mexicans . 55 When sold on a selected basis, the maximum prices shall be 10 per cent above the maximum prices set above. Domestic deerskins from $1 to $3.50 per piece, according to size, section, and quality. Take-off for August, September, and October on Chinas, 1 to 1| pounds, not over 15 per cent ; seconds, $1.05. APPENDIX. MatamoraS- Pai-as Maranhams ^ Oaxacas : Panamas Barquismetos Porto Cabellos West Coast Chinas, not over 15 per cent seconds. Singapore elks Macassar elks 50 55 70. 85 65 35 35 70 .95 .45 42 SUPPLEMENTARY PRICES AND REGULATIONS ON HIDES AND SKINS ISSUED ON TULT 1, 1918. The maximum price on standard packer kid skins, measuring pbout two-thirds the size of the goatskins is two-thirds the price of the goatskins. The maximum price on butcher and country kid skins is $4 per dozen. GOVEKNMENT REGULATIONS EELATIlsTG TO PRICES. 749 The maximum price on Sumatra buffalo hides is 33 cents for trimmed and shaved, 31 cents on untrimmed and shaved. The maximum price in Tapuchula, Mexico, wet salt hides is 22J cents. The maximum prices on Sumatra cowhides, shaved, are as follows : Skippers own preparation. Country and untrimmed : About 1 to 6 pounds about 2 kilos average, 65 cents c. and f cents 70 About 6 to 10 pounds about 31 kilos average, 58 cents c. and f do 63 About 10 to 15 pounds about 6 kilos average, 52 cents c. and f do 57 The maximum price on Cuban wet salt hides is 19 cents. The maximum price of Tuxpan, Mexico, wet salt hides is 211 cents. The maximum price on Canton, China, shaved dry hides is as follows : One to 6 pounds, 69 cents ; 6 to 10 pounds, 62 cents ; 10 to 15 pourds, 56 cents ; C. i. f. and war risk New York basis. The maximum price on China dry donkey hides is $2 each c. i. f. and war risk. New York basis. The maximum price on Mendez, Brazil, frigorifico hides is 20 cents weighed ex dock New York. Delaware and New Jersey are classed with the New England States. The maximum price on Madras pickled goatskins is $15.50 per dozen. The maximum price on Madras extra large goatskins about 27 pounds average is $16.50. The maximum price on Argentine wet salt Matadero and Campo kip is 20 cents. The maximum price on Courland Scharren dry calf is $1.20 per pound ; Courland slaughter dry calf is $1.10 per pound ; Wiatka dry calf is $1.07 per pound ; Palloy dry calf is 45 cents per pound. The maximum price on Mexican wet salt kips is the same price as the maximum on the same kind of hides. The maximura price on Tampico, Mexico, dry hides is 32J cents. The maximum price on Madras sheepskins, basis 85 per cent primes and 15 per cent seconds, average about 190 to 200 pounds, is $11. The maximum prices on Hulo (Hawaiian Islands) packer steers, 27 cents; cows, 22 cents, ex store San Francisco. The maximum price on ducca cowhides 9 to 12 pounds and 12 to 15 pounds is 26 cents c.f. s. The maximum price on China wet salt buffaloes is 13 cents. The maximum price on Habana packer hides of superior take-off and preparation is 1 cent per pound more than other Habana packer hides. The price on Chicago and other large city first-salt calfskins applies to all other first- salt untrimmed skins in carload lots, equal in all respects to Chicago skins. Othar first-salt skins of inferior quality, take-off, and preparation shall sell at relatively less. Any resalted packer, abattoir, or wholesale butcher calfskins shall sell at relatively less than the price of 44 cents, which is for first-salt standard packer stock on Chicago freight basis. The maximum price on River Plata frigorifico-type kips and extremes is 26 cents and freight, shrinkage guaranteed not to exceed 10 per cent, to New York or Boston. A go-between can not charge a brokerage to both buyer and seller. No one owing a lot of hides or skins can charge his customer a brokerage when selling same. Any tanner may pay an agent a brokerage for buying hides or skins (except on hides or skins which the agent owns himself), but such agent may not buy less than carload lots of butchers at a higher price than 10 per cent under applicable maximum prices. No brokerage shall exceed 2 per cent. , ^ ^ Small packer, abattoir, ^nd wholesale butcher price light calf (7 to 8 pounds) and deacons are governed by the packer calf price of 44 cents for first-salt stock, on Chi- cago freight basis, and taking into consideration any inferiority as to take-off and salting. BLACK HARNESS LEATHER. Harness leather. — The prices of black harness leather were fixed by the price- fixing committee on June 25, 1918, subject to revision November 1. 1918, or before that date, contingent upon possible changes in the prices of hides and skins. The prices in the schedule below were later extended until November 20, 1918, when price fixing was here ended. BLACK HARNESS LEATHERS. (June 25, 1918.) Per pound. Grade A, or first selection $0. 70 Grade B, or second selection • 68 Grade C, or third selection • 66 First selection, butt brands — -68 Second selection, butt brands • 66 750 HISTORY OF PRICES DURING THE WAR. SOLE AND BELTING LEATHER. (Aug. 9, 1918.) Provisions for the control of prices and output of sole and belting leather became effective August 9, 1918, and were administered by the hide and leather section of the War Industries Board. These regulations and prices, which are given 4)elow, were extended on October 8, 1918, until December 8, 1918, when they were removed. KEGTJLATIONS. These maximum prices on grades are based on maximum prices of No. 2 selection as basis for tannery run. When sold in selections the assortment value of the total selections shall not exceed the maximum price of the No. 2 or tannery run. In Texas scoured or bloom oak sole leather, classification No. 3, the tannery run maximum price is 87 cents, and when sold in selections the assortment value of the four selections shall not exceed the maximum tannery-run price of 87 cents. These prices apply to all sales made by tanners or by their representatives or by jobbers, but do not apply to sales made by retail dealers or by the so- called findings trade. DIFFERENTIAXS. Tanners who claim preferential differentials on account of low yield of leather will make application for same to the hide, leather, and leather goods division of the War Industries Board. The conditions upon which they will be given this advantage are: That their yield shall be at least seven points under the yield used as a factor in determining maximum prices on the same season's hides and that a sworn statement shall be rendered to this effect and shall be the result of at least six months' operation. That they will make consecutive monthly reports to the hide, leather, and leather goods division of the War Industries Board of their yield. Every side of subdivision of these sides shall be stamped with the name of the tannage. Tanneries producing leather of such high yield as to exceed the arbitrary factor of yield used in figuring maximum prices on the same season's hides by more than seven points shall be subject to a differential reduction, such reduc- tion to be figured on the excess yield beyond or above the seven-point allow- ance. Every side or subdivision of these sides shall be stamped with the name of the tannage. When requested by the hide, leather, and leather goods division of the War Industries Board tanners will make monthly reports of their yields, stating classes and seasons of hides. _ PRICE OF OFFAL. These maximum prices are established for three months and at a time when all offal is a burden on the market. At the expiration of the three months, if the offal has found an outlet and established a higher market level, this addi- tional return in value to tanners will be reflected in the readjustment of a new schedule three months hence. I High-grade heavy packer oak belting butts, made from packer heavy native and ^^''^ light native steers and heavy native cows (based on yield of 65 per cent) : pouna No. 1 $0. 96 No. 2 . 94 No. 3 . 86 High-grade light packer oak belting butts under 20 pounds, made from light native cows and extreme light native steers (based on yield of 62 per cent) : No. 1 . 91 No. 2 . 89 No. 3 . 81 GOVERNMENT REGULATIONS RELATING TO PRICES. 751 High-grade Texas scoured or bloom oak sole leather, made from packer heavy and p^^^ light Texas steers (based on yield of 83 per cent) : • Tan run sides '''"•Sj^ Tan run bends • kAj. X sides • ggf A sides • 25| B sides • gi| C sides • S^2 X bends • gX A bends • 52 B bends • S? C bends ' High-o-rade heavy or overweight oak sole leather, made from packer butt brands and" Colorado steers, oak trim (based on yield of 78 per cent) : No 1 sides • ^g No. 2 sides - No. 1 backs No. 3 backs No. 1 bends. No. 3 sides. No. 1 backs. No. 2 backs. No. 1 sides- No. 2 sides. 55 No. 3 sides ■ ^7 75 No. 2 backs • j^ 90 88 No. 2 bends ZZZZZZZZZ isl- High grade heavyor" overweight union sofe leather made from packer butt brand and Colorado steers and frigoriflco steers, union trim (based on yield of 80 per cent) : f. kq No. 1 sides "• ^S No. 2 sides • 21 No. 3 sides • ^? No. 1 backs • L% No. 2 backs • * 3 No. 3 backs • gg No. 1 bends • g° No. 2 bends • °5 No. 3 bends—- -— r :5-t • "■^ High grade light or middleweight oak sole leather made from packer branded cows, oak trim (based on yield of 75 per cent) : No. 1 sides • ^o| No. 2 sides • ?- ^ Z_ZZ_Z . 501 ,j.2^ ZZZZZZZZZZZZZZZZZZ • '70i "M/-) Q hacks • ^^^ High grade light or middleweight oak sole leather, union trim based on yield of 75 per cent) : kci No. 1 sides • g^l No. 2 sides • gif No. 3 sides • »!/s No. 1 backs • '^ No. 2 backs • o^ No 3 backs ■ ^ Country or domestic hides, heavy or overweight oak or union leather, made from steers or heavy cows (based on yield of 68 per cent) : 53 51 No. 3 sides -47 Country or domestic middleweight oak or union leather made tnni cows or ex- treme light steers (based on yield of 68 per cent) : No. 1 sides • ^^ No. 2 sides • ^^ No. 3 sides . ,— — vT ;7— 5 ' High grade heavy or overweight hemlock leather made from packer heavy (based on yield of 90 'per cent) : No. 1 sides '- • ^^ No. 2 sides • g* No. 3 sides. 50 High grade middleweight hemlock sole leather made from extreme Texas and branded cows (based on yield of 80 per cent) : No. 1 sides • g4 No. 2 sides • ^i No. 3 sides -,—,---7-7 7— r r • *^ Country or domestic hide, heavy or overweight hemlock, made from steers or heavy cows (based on yield of 80 per cent) : No. 1 sides • *^ No. 2 sides -jl No 3 sides * Country or domestic hemlock made from cows or extreme light steers (based on yield of 80 per cent) : ' No. 1 sides • *' No. 2 sides • Jg No. 3 sides -.-rr-r , — , j — J • High grade dry hide heavy overweight and middleweight hemlock made trom Buenos Aires hides (based on yield of 170 per cent) : Tan-run sides ■ — • *** Buffalo dry hide overweight (based on yield of 190 per cent) : Tan-run sides • ^* 7. LUMBER. The first step in the control of hiniber prices was taken in 1917 with the in- stitution by tlie hunber committee of the Council of National Defense, of " eniergency bureaus," semiofficial Government agents in the purchase of Gov- ernment lumber requirements.^ The general regulations concerning lumber prices and the regulations and schedules pertaining to individual species appear below in the following order : General regulations, birch logs, black walnut, cypress and tupelo, Douglas tir, mahogany lumber, New England spruce. North Carolina pine, Pennsylvania hem- lock, southern or yellow pine, western spruce. GENERAL REGULATIONS. Notice as to Government lumber prices, March 30, 1918. — All lumber manu- facturers and dealers are hereby notified that the present Government yellow or southern pine lumber prices for mill shipments from the Southern States are to remain in effect until June 15, 1918, and that in no case must orders for lum- ber for mill shipments be accepted, sold, or invoiced to the Government or Gov- ernment contractor, having a cost-plus job, either by manufacturers or dealers, at any greater price per item than the maximum' price fixed by the Government list.' Public announcement regarding lumber made by the price-fixing committee of the War Industries Board, June 11, 1918. — The price-fixing committee of the War Industries Board has fixed maximum item prices for northwestern fir logs and lumber and for southern pine lumber. The detailed schedules of these item prices have been approved by the President and publicly announced. The prices established are manufacturers' f. o. b. mill prices for shipment at the mills, the same for all purchasers. They are maximum prices, not fixed prices, to hold for a period of 90 days from June 15. No regulation has been made Avith regard to transactions other than sales by manufacturers at the schedule prices. Wholesale dealers, retail dealers, and all others are entitled to buy on the basis of these f. o. b. mill prices. As yet no regulation of rates or profits has been made with regard to sales either by Avholesalers or retailers to consumers. The War Industries Board believes that sales by all dealers should be made at reasonable prices based on a strictly rea- sonable profit above the fixed schedule rates. The board is confident that the trade will conform to the spirit of the existing regulations and the board will 1 These bureaus and dates of organization were as follows : Southern pine emergency bureau, May, 1917 ; North Carolina pine emergency bureau, May, 1917 ; Georgia-Florida yellow pine emergency bureau, June, 1917 ; New England spruce emergency bureau, June, 1917 ; Douglas fir emergency bureau (later organized as the flr production board), October, 19l7 ; Northern hardwood emergency bureau, Nov. 24, 1917 ; Central Pennsylvania hem- lock emergency bureau, Apr. 6, 1918 ; Cypress emergency bureau. 2 Price-Fixing Committee Minute Book II, Mar. 30, 1918. 752 GOVEKHMENT REGULATIONS RELATING TO PRICES. 753 not proceed to further regulation or restriction of dealers' prices until their conduct of business indicates that such action is necessary. Retail lumber prices. — Occasional purchases of lumber from retail lumber dealers to meet emergency needs became necessary for certain branches of the Government, and in order to insure a fair and reasonable price a fixed maxi- mum retail price was established for Douglas fir and" southern yellow pine lumber for the period from June 1, 1918, to July 31, 1918. These prices applied to emergency purchases of lumber from retail lumber dealers in the cities and vicinities of Boston, New York, Islewark, N. J., Philadelphia, and Baltimore. The agreement was — That the dealers be allowed for handling charges and profit the following advance prices over and above the Government's delivered prices f. o. b. cars in the districts mentioned, includhig switching charges, if any : To the dealers in the cities and vicinities of Boston, New York City, Newark, N. J., $12.50 per 1,000 feet b. m. ; to the dealers in the cities and vicinities of Philadelphia and Baltimore, $11.50 per 1,000 feet b. m. These prices in all districts to be based on the Government department re- placing the lumber to the dealers within 90 days from date of replacement order at the Government's manufacturers' prices delivered f. o. b. cars in the districts mentioned, provided the dealers prefer to have the lumber replaced, or a cash settlement on the same basis if they prefer not to have the lumber replaced. These prices to the Government for the lumber received from the retail dealers in all cases to be f. o. b. dealers' wagons, trucks, or railroad cars in dealers' yards. Working. — Where dressing or ripping is necessary to obtain the items de- sired by the Government, charges for same shall not exceed the following: Dressing one, two, or four sides, $4 per 1,000 feet b. m. ; ripping or resawing (first cut), $4 per 1,000 feet b. m. ; ripping or resawing (second cut), $2 per 1.000 feet b. m. • Teaming. — When lumber is hauled by retail yards the charges for same shall not exceed the charges following : By auto truck, $2.50 per 1,000 feet first mile, with allowance of 35 cents per 1,000 each additional mile ; by team, $1.75 per 1,000 feet first mile, with allowance of 25 cents per 1,000 each additional mile. In the event the Government does not replace the lumber taken from local yards within the time stated above it is understood that the retailer may refuse to accept lumber replacement, and settlement for lumber taken should be made on basis of the following allowances in addition to the original replacement price : $6 per 1,000 feet on all short leaf ; $6 per 1,000 feet on all long leaf under 12 inches ; $10 per 1,000 feet on all long leaf 12 inches and over. In the matter of replacing lumber taken from retail yards under the above agreement it is understood that the lumber is to be replaced in the same sizes or easier sizes than the sizes taken from the retail dealers; that is to say, if boards are taken from the retail dealers, boards are to be replaced ; or if fram- ing lumber is taken, framing lumber is to be replaced in sizes no larger than the sizes taken. For the present, at least, it is understood that all lumber replacements will come from the districts of Alabama-Mississippi territory, southern pine terri- tory, Georgia-Florida territory, and from the first district in the Pacific North- west. If North Carolina pine is taken from the retail dealei-s' yards, it may or can be replaced by comparable grade from the shortleaf territory of the above-mentioned producing districts. All requests for replacement by the retail dealers should be accompanied .by the signature of the receiving Government officer or agent, that the director of lumber may know in replacing this lumber that the sizes and quantities asked for are justified, and should be submitted to. the Government bureau iu AVashington through which the original authority for the original purchase by the Government was authorized. It must be distinctly understood that the above prices referred to are only effective in the cities and vicinities above mentioned, where the costs of handling and doing business have been investigated by the Federal Trade Commission. 125547°— 20 48 <54 HISTORY OF PRICES DURING THE WAR. All departments of the Array and Navy and tlie Emergency Fleet Gorpora- tiou agree immediately to put maximum prices into effect, and all pnrcliasing officers of all departments are to l>e notified immediately of the above decision.* Notice as to application of prices for soft wood lumber affected by rulings of the price-fixing committee of the War Industries Board. — All lumber manu- facturers and dealers are hereby notified that the present prices for soft lumber for mill shipment as heretofore established or which may hereafter be established by the price-fixing committee of the War Industries Board shall remain in effect during the period of time prescribed and that in no case must orders for lumber for mill shipment or recousignment thereof be accepted, sold, or invoiced to any purchaser by either a manufacturer, dealer, or other person at a greater price per item than the maximum price fixed by the price-fixing committee of the War Industries Board, except where delivered prices are made to purchasers' destination points, in which cases freight may be added on the basis of standard weights for each item so priced, also except as to orders received or contracts made prior to the date of ruling of the price- fixing committee governing the producing territory involved. The price-fixing committee has taken the position that cost figures presented by the Federal Trade Commission on which the price-fixing committee has based its ruling already include sales service to purchaser. So, in fact. In paying the price fixed in the ruling, the purchaser has already paid for this sales service. The purchaser or public should not be asked to pay any addi- tional price to any vendor offering mill shipments.^ The wholesale lumber dealers of the country protested against this ruling, saying that the prices as fixed did not allow any compensation or profit to them in the sale and distribution of lumber and that the strict application of the ruling would destroy a selling and diS'tributing agency which had long been a recognized factor in the lumber trade. On July 23 the price-fixing com- mittee, after consideration of arguments submitted by the wholesale lumber dealers, refused to modify its ruling of July.* Statement on southern pine prices on Government orders. — ScUlement of question of jyiice icith southern pine emergencij Inireau as to orders on hand prior to midnight, June I'l, 1918. — On all Government orders on which the price is fixed by the Government the price in effect on the date of shipment rather than the price in effect on the date the order is placed shall control, unless expressly stipulated to the contrary at the time the price is fixed, or unless a different rule is adopted by mutual agreement between the Government and the manufacturer. CONDITION TO THE ETJLE. As a condition to this rule, it must be understood, however, that the shipper will exercise due diligence in an effort to prepare and move the items covered by such order, and that the southern pine emergency bureau will exercise its best efforts in inducing the members with whom orders are placed to send shipments forward as pi-omptly as possible ; provided that if it is established that due diligence has not been used by any mill, the price shall be the lower price applying in the price-fixing periods involved. 0T?I>EES X'NSHIPPED. All orders for the Government xmshipped on June 14, 1918, shall take the price prevailing at the time such orders were placed with the bureau ; provided that this rule shall not be construed to apply to orders placed prior to June 14, 1918, for shipment after September 14, 1918. All restrictions as to deferred shipments are permitted to be removed. If not permitted by car builders to be f^hipped by September 14. the price applying at the time of delivery shall apply.* Procedure for distribution of southern or yellow pine lumber, — At a hearing of the manufacturers of southern or yellow-pine lumber l>efore the price-fixing 1 Official Bulletin, .Tunc 19, 1918. = Price-Fixins Committee Minute Booli V, July 1, 1918 ; Official Bulletin, July 5, 1918. " Price-Fixing Committee Minute Book VI, July 1.5, 1918. * Price-Fixing Committee Minute Book VI, July 17, 1918 ; Official Bulletin, July 19, 1918, GOVEENMENT REGULATIONS RELATIj^G TO PRICES. 755 committee of the War Industries Boanl on September 23, 1918, it was agreed that the ruling of June 14, 1918, fixing maximum f. o. b. mill prices on southerB or yellow-pine lumber should remain in effect from midnight September 23 to midnight December 23, 1918, inclusive. It was also decided by the price-fixing committee and the representatives of Government departments that inclusiA-e within these dates timber prices on the lumber schedule should apply to all shipments to Government departments, including the Emergency Fleet Corporation. it x^'a.s decided by the price-fixing cojaamittee that the interpretation of the terms of sale should be as follows : The usual trade practices shall continue, including 2 per cent off for cash within 10 days from date of invoice to be applied to United States Government purchases as well as all others (except in special cases where former trade practice has well established net cash terms and except as to export shipments to foreign countries). In transactions where purchasers do not avail them- selves of cash discounts the terms shall be 60 days net from date of invoice, and in such transactions the accounts may be converted into trade acceptances which do not bear interest before maturity. As regards the requirement by the Railroad Administration that shippers shall bulkhead the ends of open freight cars, it was decided that an extra charge for lumber and labor for constructing bulMieads may be made by the shipper and invoiced to consignee, irrespective of whether or not for Govern- ment or civilian use. On the readjustment of item prices it was decided that the director of lum- ber, in conference with the war-service committee of the manufacturers, should have discretion to make certain minor changes and corrections in the item prices, which, however, should not affect the average base price. As to price concessions made by manufacturers to v.'holesale distributors, it was decided to incorporate in the present announcement a formal statement, to wit: That in cases where manufacturers make reductions from the maximum prices to wholesale dealers, the reductions should be considered in the nature of an allowance to cover the expense and profit of sales by wholesale dealers and should not be interpreted as constituting a general reduction in the mai-ket price of lumber to the trade. BIRCH LOGS. An informal agreement as to fair and reasonable prices for birch veneer logs suitable for airplane purposes was made on October 30, 1918, at a conference in which the lumber section of the War Industries Board, bureau of aircraft production, and representatives of veneer manufacturers and loggers were pres- ent. The prices agreed upon, f. o. b. shipping point, for logs of veneer quality were as follows : Logs 12 to 15i inches in diameter, $55 per thousand feet ; logs 16 inches and up in diameter, $65 per thousand feet. These prices remained unchanged throughout the period of the war, BLACK WALNUT, No official price was set on black walnut as a whole, but a fixed maximum price was set on gunstock flitches and propeller blades. On August 10, 1917, the Ordnance Department of the United States Army fixed a maximum price of $1.05 each for gunstock dimension blanks f. o. b. mill. On August 1, 1918, the price was raised to $1.20 each by action of the price-fixing committee of the War Industries Board. . The Signal Corps of the United States Army on January 28, 1918, fixed a maximum price of $310 per thousand board feet for airplane propeller stock, which was continued throughout the war. On August 1, 1918, the price-fixing committee also made an informal agree- ment with lumber manufacturers as to the price of 2.i-inela hlaek walnut flitdi, 756 HISTORY OF PRICES DURING THE WAR. which was set at $80 per thousand board feet f. o. b. mill. This price was not binding on manufacturers, but was regarded as a fair price for the material. An informal agreement was also made on August 7, 1918, between the price- fixing committee and walnut log buyers as to a fair and reasonable price to be paid for black walnut logs. An announcement was made as follows : As an aid to the Government in securing the outturn at fair and reasonable prices of the walnut timber necessary for its needs and for the protection of the walnut timber owners we ask that you give publicity to the following ranges of prices for each diameter which the log buyers or the walnut manufacturers having Govei'nment contracts for gunstocks and propeller lumber will pay for good walnut logs 12 inches and up in diameter and 8 feet and up in length. Diameter (inches). Prices of black walnut logs 8 feet and over long on board cars on railroad. Equivalent value for standing timber. Minimum. Maximum. Minimum. Maximum. 14 Per M. §45 55 65 75 85 95 105 115 125 135 PctM. $55 65 75 85 95 105 115 125 135 150 Per M. $20 30 40 50 60 70 80 90 100 110 FctM. $35 10 45 18 50 20 60 22 70 24 80 26 90 28 100 30 110 120 In arriving at prices which it is paying for propeller lumber and gunstocks the Government has taken these log prices into consideration, and has allowed the mills prices for the material it gets which will allow for only a fair and reasonable profit both to the mills and the log buyer. The above prices were used as a guide only, purchases being made both above and below those given in the log price list. CYPRESS AND TUPELO. Tlie maximum price of cypress and tupelo lumber was not fixed by the price- fixing committee, but an unofficial price list was issued by the Cypress emergency bureau, which was recognized as representing fair and reasonable prices. The list was dated October 25, 1918, and was in effect to the close of the war period, CYPRESS EMERGENCY BUREAU. [Net cypress and Tupelo list for Government f. o. b. mills in North and South Carolina, Georgia, Florida, and Louisiana.] • • CYPRESS. Hougli, random width. Tank. Factory- select. Shop. Box. Peck. $35.00 40.50 43.00 46.00 57.50 67.50 66.50 $29.50 35.50 36.50 38. 50 50.50 50.50 59.50 $25.00 26.00 26.00 26.00 $16.00 18.00 861.00 67.00 85.00 85.50 94.50 18.00 16.00 For SIS or S2S add $1.50 per thousand. , , . , ^ 1-inch to 2-inch factory select, shop, box arc for standard lengths. Add $1 per thousand for each foot Prices specified on l.\ and 2 inch tank 8 to 16 feet. For 18 and 20 feet add $4 per thousand. On 2i to 4 inches, all grades, add $2 per thousand for each foot over 16 feet. GOVEKNMENT REGULATIONS RELATING TO PRICES. 757 Finishing lumber SIS or S2S. 1 by 4, 6, 8, and 10 inches, 10/20 1 by 12, 10/20 1 by 4 to 12 inches, R. W ., 10/20 1 by 13 to 19 inches, inclusive, 10/16 ' . . 1 by 14, 10/16 1 Iby 16,10/161 Iby 18,10/161 1 by 20 to 23 inches, inclusive, 10/16 i . . 1 by 24 and wider, 10/16 i 11 by 4, 6, 8, and 10 inches, 10/20 i 1-i by 12, 10/20 1 H' by 4 to 12 inches, R. W., 10/20 i li by 13 to 19 inches, 10/16 i li- by 14, 10/16 1 li by 16, 10/16 1 li by 18, 10/16 1 IJ by 20 to 23 inches, inclusive, 10/16 i. li by 24 and wider, 10/16 i 2 by 4, 6, 8, and 10 inches, 10/20 2by 12, 10/20 2by4tol2inches,R.W., 10/20 2 by 13 to 19 inches, inclusive, 10/16 i . . 2 by 14. 10/16 i 2 by 16; 10/161 2by 18, 10/161 2 by 20 to 23, 10/16 i 2 by 24 and wider, 10/16 1 A. $53.00 58.50 53.00 67.50 65.00 69.50 74.00 81.00 94.50 56.50 62.00 56.50 71.00 68.50 73.00 77.50 84.50 98.00 66.50 72.00 66.50 81.00 78.50 83.00 87.50 94.50 108.00 $47.50 52.00 47.50 62.00 59.50 64.00 68.50 75.50 89.00 51.50 56.00 51.50 65.50 63.00 67.50 72.00 80.00 92.50 61.00 65.50 61.00 75.50 73.00 77.50 82.00 89.00 102.50 $44.00 51.00 44.00 47.50 54.50 47.50 Select common. 53.00 60.00 53.00 $38.50 45.58 38.50 42.50 49.00 52.50 47.50 54.50 47.50 1 For li add $1 over price H. For rough, deduct SI. 50 per tliousand. For S4S, add 50 cents per thousand. „.,cf„„<. For 13 inches and wider random or specified widths, add $1 per thousand for each foot oyer 16 feet. For 10 to 16 foot lengths in 2i, add $13; for 3 inches add $17; and for 4 inches add $23 to price of 2 inches. For specified lengthCl to 2 inches, add $2 per thousand; 2i to 4 add $2 per thousand for each foot over ^^plnel stock: | by 8 inches and wider, S2S to A inch $28; J bjr 8 inches and wider, S2S to A inch, $34.50; I by 8 inches and wider, S2S to A inch, $40; |- by 8 inches and wder, S2S to A mch, $47. WMl?Sf 12"5c&n*^^^ ?6 per M. S. M.; 16 inches and wider, $9 per M. S. M. Flooring, ceiling, drop siding, shiplap, casting and base. I by 4 or 6 inches, 8/20 I by 4 or 6 inches, 8/20 1 I by 4 or 6 inches, 8/20 1 by 3 1 by 4, 5, 6, and 8 inches, 8/20. Iby 10,8/20 Iby 12, 8/20 36.50 44.50 57.00 66.50 B. $26. 00 34.00 42.00 49.00 48.50 C. $24.50 32.00 40.00 45.50 45.00 Select common. $40.00 39.50 39.50 46.50 For U inches, add $4; IJ add $5; 2 inches add $15 to price of 1 inch. fhorrSngrStog%rr'o^8 feet, $1 per thousand less than standard lengths, in same width and grade. Bevel siding. I by 4, 8/20, I by 6, 8/20 i by 0, 8/20 $27.00 27.00 28.00 $24.50 24.50 24.50 C. $22.50 22.50 22.50 D. $16.00 19.50 17.00 J by 4 or 6 mixed lengths only from inch stock, 4 by 8 feet, B and better, $21. 758 HISTORY OF PEICES DURUiTG THE WAR, Bungalow be\"ol sidinj. 1 by S S4S and resa%vn to \ S.l IJ by 8, resawn to f S. L li by 8, resawn to | inch 331.50 40.50 49.50 |28. 00 37.00 44.00 C and better. $27. 00 36.00 43.00 For specifiedienerths, add SI. For 10-iucli wdtii, add SI. 826.00 35.00 42.00 BYRiaT SHEATHING LATH. [Long lengths, S19.50; shcrt lengths, S18.50; all orders must include reasonaWe poreentage of ^ort lengths- Shingles. Best. Primes. Economy. Xax. CEpper. 3 inches dimension S3. 75 4.65 4.90 4.90 S2.70 3.60 3.85 3.85 S2.70 3.00 3.00 $1 95 5 inches dimension 1 95 1 95 $2.05 1.80 1 TUPELO. Standard Rough: lengflis. . Wagon box boards, 13 to 17 inches §40. 50 Wagon box boards, 8 to 12 inches 37. 00 First and seconds 29. 00 No. 1, common 26. 00 No. 2, common 23. 50 No. 3, common 18.00 Log ran, No. 3, common and better with firsts and seconds out - . 23. 50 Log run. No. 3, common and better with firsts and seconds in 24. 25 1 by 3 wider, 12 to 36 inches, C and better, shorts 51. 50 FJEish," flooring, ceiling, siding, partition, worked: Finish B and better, 4 to 10 inches, specific ^\T.dths ^ '33. 50 Finish B and better, 12 inches ^. 38. 00 Finish B and better, 4 to 12 inches, assorted widths 34. 00 Finish B and better, 13 inches and wider 43. 00 Finish C, 4 to 10 inches, specified widths 27. 00 Ftoish C, 12 inches 31. 50 Finish C, 4 to 12 inches assorted widths i 28. 00 Flooring and ceiling, B and better i 36. 00 Flooring and ceUing, C i 31. 50 Partition, B and^better i 40. 50 Partition, C 36.00 Drop siding, C and batter 31. 50 Bevel siding, B and better » 20. 00 Bevel siding, C 18.00 When specific prices are not given on worlied stock add the ioUowing working charges, stock to be graded before worlring: Add SI .50 for each resaw. Add SO. 50 for each rip or cross cut. Add $3 for each S2S and resaw. Add S4 for resawing and S2S afterwards. Add $2.50 for making flooring, shiplap, ceiling, grooved roofing, jambs, bevel cribbing, or drop siding- No. 1 c -mmcn rough. R. L. 6 and 8. 10 12 14 10 IS 20 1 by3 $32. 50 32.50 32.50 32.50 32.50 32.50 38.00 34.00 34.00 34.00 34.00 39.50 $30. 50 30.50 30. 50 30.50 30. 50 30. 50 36.00 32.50 32.50 32.50 32. 50 38.00 832.50 32.50 33.50 32.50 32.50 33. 50 39. 50 34. 00 34.00 34.00 35. 00 41.50 S32. 50 32.50 34.00 32.50 32.50 34.00 40. 50 34.00 34.00 34.00 36.00 42. 50 S32. SO 33.50 31.00 32.50 32.50 31.50 37.00 34.00 34.00 34.00 33.50 38.50 S33.50 33. .50 33.00 35.00 32.50 33.00 38. 00 35.00 34.00 34.00 34. 50 39.50 S32. 50 33.50 34.00 32.50 33.50 34.00 40.50 35. 00 34.00 35.00 36.00 42.50 $32.50 1 by 4 34.00 1 by 5 35.00 1 by 6 32.50 1 by 8 34. 00 1 by 10 34. SO 1 by 12 2 by 4 42.50 36.00 2 by 6 .34.00 2 by 8 36.00 2 by 10 36.50 2 by 12 44.00 > For specified lengths gdd $1 per thousand feet to these prices. GOVEK:N"MEIsrT REGULATIONS RELATIISTG TO PRICES. 759 No. 2 com men rough. R. L. 6 and 8. 10 12 14 16 IS 20 1 by3 ?29. 00 28.50 28.50 28.50 28.50 28.50 32.50 30.00 30.00 30.00 30.00 34.00 $27. 00 26.50 26.50 26.50 26.50 26.50 30.50 28.50 28.50 28.50 28.50 32.60 $29. 00 28.50 29.50 28.50 28.50 29.50 33.50 30.00 30.00 30.00 31.00 35.00 $29. 00 28.50 29.50 28.50 28.50 29.50 33.50 30.00 30.00 30.00 31.00 35.00 .$29. 00 28.50 29.60 28.50 28. 50 28.60 32.50 30.00 30.00 30.00 30.00 34.00 $31.50 28.50 28.50 31.00 28.50 28.50 32.50 30.00 30.00 30.00 30.00 34.00 S29. 00 29.50 29. .50 28.50 29.50 29.50 33.50 31.00 30.00 31.00 31.00 35.00 $29. 00 1 by 4 29.50 Iby 5 30.00 Iby6 28.50 1 by 8 29.50 Iby 10 30.00 1 by 12 34.50 2 by -1 31.00 2 by 6 30.00 2 by 8 31.00 2 by 10 32.00 2 by 12 36.50 For IJ and li- add S2 to price of 1 inch. For SIS or S2S add $1.50 per thousand feet. For S4S or SIS and IE add $2 per thousand feet. Timbers (green), rough: 3 by 4, 4 by 4, 4 by 6, 10/16 831. 50 3 by 6 and 3 by 8, 10/16 32.50 3 by 10 and 3 by 12, 10/16 34. 00 6 by 6 and 6 by 8 i34.00 For SIS or S2S, add $1.50 per thousand. For S4S or SIS and IE, add $2 per thousand. Battens, 10/16: I by 3 inches, SIS 5.00 f by 3 inches, O. G 5. 2.5 2-inch O. G. finish, 13/16 by If inches 6. 50 2^inchO. G. finish, 13/16 by 2i inches 9-00 For 18 and 20 foot battens add 25 cents. Lath: No. 1, t by li inches, 4-foot 4. 2o No. 2, f by li inches, 4-foot 3. 80 No. 1, i by 1* inches, 32-inch 1- SO No. 1, g- by 1 J inches, 4-foot i. 7. 6o DOUGLAS FIR. The first price control of Douglas fir was carriecl out by the Dougla.s Fir Emergency Bureau, and the item prices listed at that time were in effect from December 1, 1917, to March 1, 1918. These prices were adopted by the price-fixing committee, to be effective from March 19, 1918, to June 1, 1918. The entire fir schedules were revised in June, 1918, by the price-fixing com- mittee and the lumber director. The new prices represented an average increase of approximately $2.75 per thousand board feet and Avere made applicable to both the Government and public purchases. The new schedules became effective June 15, 1918, and provided a base price for Douglas fir of $26 per thousand feet ; $40 per thousand feet for rough and dressed timber, and $50 for aircraft timbers. The log range was from $12 to $20 per thousand feet. The following announcement by the price-fixing committee accompanied the schedules of June 15, 1918: No regulation has been made with regard to transactions other than sales by manufacturers at the schedule prices. Wholesale dealers, retail dealers, and all others are entitled to buy on the basis of these f. o. b. mill prices. As yet no regulation of rates or profits has been made with regard to sales either by wholesalers or retailers to consumers. The War Industries Board believes that sales by all dealers should be made at reasonable prices based on a strictly reasonable profit above the fixed schedule rates. The board is confident that the trade will conform to the spirit of the existing regulations and the board will not proceed to further regulation or restriction of dealers' prices until their conduct of business indicates that such action is necessary.^ 1 For 18 and 20 foot add $1 per thousand. 2 Official Bulletin, June 24, 1918. 760 HISTORY OF PRICES DURING THE WAR. The prices of June 15, originally effective for 90 clays, were extended to October 15, 1918, and at that time it was agreed that they should be continued vut\\ January 15, 1919, when all price control over Douglas fir was discontinued. Airplane fir. — On April 10, 1918, the spruce production division of the Signal Corps of the United States Army issued a schedule of prices for Douglas fir airplane material. The f. o. b. mill price for lumber cut to specification was $65 per thousand board feet. In July these prices were superseded by others which carried a price of $50 per thousand board feet f. o. b. mill. The War Industries Board announced, on March 19, 1918, the following I'ulings : That the maximum price for fir logs in the Pacific Northwest, delivered at the points where it has been customary to make delivery to the sawmill opera- tors, be fixed at $19 per 1,000 for No. 1 logs, $15.50 per 1,000 for No. 2 logs, and $10 per 1,000 for No. 3 logs, scale as to grade and contents to be determined according to the methods that have been customary in the' various districts for the past four or five years. These prices are a basis for logs up to and including 40 feet in length. Logs over 40 feet in length to be priced on the same basis for extra lengths as has heretofore been established by custom. In no case shall any greater price than that mentioned above be allowed for logs of those grades during the period of March 19 to May 31, 1918. That the price of fir ship timbers under the Ferris schedule to the Emergency Fleet Corporation be readjusted at item prices that will average $40 per 1,000 for a complete schedule for both the rough and dressed items, and that all sales of lumber for other vessels under Government contract requiring a schedule of lumber of similar type shall be furnished at not to exceed the same basis of prices. That the prices of fir lumber for aircraft use to both the United States Government and the Allies remain the same as those now in effect (Mar. 19, 1918). That the prices of all other items of fir lumber remain the same as those enumerated in the appended list of the Douglas fir emergency bureau, effective between the dates of December 1, 1917, and March 1, 1918, to all other depart- ments of the Government be continued in effect to May 31, 1918. Prices named on West Coast Lumber Association's yellow sheet bearing date December 1, 1917, covering timber 34 feet and longer, shall be canceled and a price of $6 per 1,000 over West Coast price list of May 1, 1915, hereby is made effective for timbers of above lengths until May 31, 1918. Pi'ices on items not covered by above list shall be based on the nearest comparable item. It is understood that during this time the loggers and lumber manufacturers will not reduce the scale of wages now being paid. F. 0. b. mill prices December 1, 1917, and May 31, 1918: FIR COMMON BOARDS SIS OR SHIPLAP. Ibv2, 6 to 20 feet, mixed lengths, SIS 818.00 1 by 3, 6 to 20 feet, mixed lengths, SIS 18. 00 lby4, 6 to 20 feet, mixed lengths, SIS 16.00 1 by 6, 6 to 20 feet, mixed lengths, SIS or S. L 16. 50 1 by 8, to 20 feet, mixed lengths, SIS or S. L 17. 50 IbvlO, 6to 20 feet, mixed lengths, SIS or S. L 17.50 1 by 12, 6 to 20 feet, mixed lengths, SIS or S. L 18. 00 For selected common add S3; for D. and M. add SI. .50; for grooved roofing add $3. Orders for 16, 18, and 20 feet only add S2. Other orders for specified lengths add $1 to above prices. Number 2 common boards and shiplap J3 less when in stoct. Fir common dimensions, SISIE. 6 feet. 8,12,14 feet. 16 feet. 9 to 10, 18 to 20 22 and 24 feet. 26 to 32 feet. 2by3, 2by4. 2 by 6, 2 by 8. 2 by 10 2 by 12 2byl4 2byl6 2byl8 2by20 $15.50 15. 50 16.00 16.50 $16.50 16.00 17.00 17.50 19.00 20.00 22.00 24.00 817. 50 17.00 17.50 18.00 19.00 20.00 22.00 24.00 $18.50 17.50 18.00 18.50 20.00 21.00 23.00 25.00 $19.50 18.50 19.00 19.50 21.00 22.00 24.00 26.00 $21.50 20.00 21.00 21.50 23.00 24.00 26.00 28.00 Add 50 cents for every 2 feet over 32 feet long up to 40 feet. For select common add S3. SIE or rough same mill base as dressed. For 2 by 4, 2 by 6, or 2 by 8 D. & M. or shiplap add to SlSlE, $1.50. Hemlock permitted in 2 by 4 and 2 by 6. GOVER]SrMENT REGULATIONS RELATING TO PRICES. 761 FIR COMMON PLANK AND SMALL TIMBERS SISIE OR S4S. 8,12,14, and 16 feet. 9 to 10, 18 and 20 feet. ' 22 and 24 feet. 26 to 32 feet. 31)7 3,3by4 3by6 4by4, 4br6, 4by 8 3 by 8 3byl0,3by 12 3byl4 3 by 16 3byl8 3by20 4byl0,4byl2 4by 14 4byl6 4 by 18 4 by 20 6by 6to8by 8 $17.00 18.00 18.50 18.00 18.50 19.00 20.00 22.00 24.00 18.50 19.50 20.50 22.00 24. 00 18.00 S17.50 18.50 19.50 18.50 19.50 20.00 21.00 23.00 25.00 19.50 20.50 21.50 23.00 25.00 19.00 $18.50 19.50 20.50 19.50 20.50 21.00 22.00 24.00 26.00 20.50 21.50 22.50 24.00 26.00 20.00 S20. 50 21.50 22.50 21.50 22.50 23.00 24.00 26.00 28.00 22.50 23.50 24.50 26.00 28.00 22.00 Add 50 cents for every 2 feet over 32 feet long up to 40 feet. For selected common add S3 SlE or rough same mill base as dressed. FIR TIMBERS, SINGLE CARLOAD LENGTHS. 32 feet and under. SlSlE or S4S. 6by 10 to 8 by 12.., 6by 14 to 8 by 14.., 6 by 16 to 10 by 16. 6 by 18 to 10 by 18. 6by 20 to 8 by 20... 6by 22 to 8 by 22.., 6by24to8by24.., 10 by 10 to 12 by 12 lOby 14tol4by 14 10 by 20 to 12 by 20 10 by 22 to 12 by 22 10 by 24 to 12 by 24 12by 16tol6by 16 12 by 18 to 18 by 18 14 by 20 to 20 by 20 14 by 22 to 22 by 22 14 by 24 to 24 by 24 $20. 00 20.50 22.00 23.00 24.50 27.50 31.00 20.00 20.50 25.00 27.00 30.00 21.50 23.50 24.50 26.50 30.00 $21.00 22.50 24.50 26.00 27.50 31.00 35.00 21.00 23.00 28.50 30.75 34.00 25.00 27.50 29.00 31.50 35.50 FIR, TIMBERS, SINGLE CARLOAD LENGTHS. For odd or fractional thicknesses add to next less thickness 50 cents. Odd or fractional length timbers ordered shall be coimted as of ne.xt longer even length. For odd or fractional widths add to next less width 81. For select common add $3. No. 1. No. 2. No. 3. tby4 10 to 16 feet V G flooring $37.00 40.50 $34. 00 36.50 $28.00 IJby 4, 6 to 16 feet, V. G. flooring 30.50 Note.— No. 1 and No. 2 V. G. flooring 1 by 4, 6, 7, 8, and 9 feet, $1 less when in stock: No. 3 V. G., $2 less. All 4 and 5 feet, $5 less. Short flooring subject to stock on hand. Specified lengths S2 extra. No. 2 clear and better. No. 3. $24. 00 27.00 $21.00 25.00 Allflatgrainflooringe, 7, 8, and9feet, $21ess. All 4 and 5 feet, $5 less. Specified lengths, S2 extra. No. 2 clear and better; IJ, n or 2 inches, 8 to 12 inches wide, 3 to 16 feet, V. G. fir stepping S2S, or S2S and nosed, $45; 14 inch, $2 extra; specified lengths, $2 extra. 762 HISTOEY OF PKICES DURING THE WAE. FIR FINISH NO. 2 AND CLEAR AND IJETTER, 6 TO IG FEET LONG. S2Sor S4S. Rough dry. Rough green. Ibv4 Iby 6 1 by 5, 8 and 10 inches Iby 12 li and 1\ by 4 and 6 inches li and li by §, 10 and 12 inches. 2by4 2by6 2 by 8 and 10 inches 2byl2 2.i, 3, and 4 inches (green only).. $34. GO 35.00 36.00 SS. 00 37.00 39.00 34. 00 35. 00 36.00 38.00 S32. 00 33.00 34.00 36.00 35.00 37.00 32.00 33.00 34.00 36.00 S30.00 31.00 32.00 34.00 33.00 35.00 30.00 31.00 32.00 34.00 36.00 For each inch in w-idth over 12 inches add SI. Specified lengths, $2 extra. For selected slash grain add SIO. For vertical grain add S7. CEILING. g by 4, 10 to 16 feet, C. and E., B. or C. and E. V. 1 by 4, 10 to 16 feet, C. and E., B. or C. and E. V No. 3 clear. S17.50 21.00 Six to 9 feet. S3 less: 4 and 5 feet, S5 less. SBecLQed lengths, $2 extra. Fir p1 per thousand less than discount sheet No. 22 on all remaining items of fir on said lumber list. , . ^ i. Prices on items not covered by above list shall be priced on basis of nearest comparable item, . 4.- The custom of delivered prices of lumber to purchasers destination points shall remain unchanged. -, . -t.-, ■ + Contracts for sale of logs and of lumber entered into in good taith prior to midniglit of June 15. 1918, and enforcible at law will be performed in accord- ance with their terms, subject, of course, to orders received from the Govern- ment which may require priority. „ , . ^ .u It is imperative that, with tlie least possible disruption of the industry, the vast war needs of the Governm-ent, both direct and indirect, far fir logs and fir lumber be supplied on a fair basis; that an adequate supply and equitable distribution thereof be assured for essential commercial needs ; that the move- ment thereof be facilitated, and that injurious speculation therein be pre- vented Therefore the procedure outlined below, by agreement with the repre- sentatives of the loggers and lumber manufacturers of the Pacific Northwest, has been adopted for a period of three months beginning midnight June lo, Tlie procedure in that each fir logger and each manufacturer of fir lumber in the Pacific Northwest shall— (1) Make contracts for the sate of his products and accept orders therefor at prices not exceeding the applicable maximum prices, always subject to an option at the applicable maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option, which wiU cover all fir logs and lumber down to the time of actual delivery to the purchaser, the War Industries Board, to any extent required, will allocate either to the Gov- ernment or to other essential users. Any balance not so allocated will be released for sale to commercial buyers, but at prices no greater than those determined npon as above set forth. (2) Comnly with the directions of the War Industries Board as issued from time to time ^^-ith reference to filling conmiercial requirements in the order of their public importance and to furnishing such information and making such reports as may be required. -, , , (3) Keep up to the best of his ability the production of logs and lumber, so as to insure an adequate supply so long as the war la,sts. (4) Neither reduce the scale of wages now being paid nor change funda- mental labor conditions now in force. The Government will apportion the car supply available for, and arrange for the transportation of, logs and lumber, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war-time conditions be neutralized so far as may be. . Foreign trade, except to the Governments of nations associated with us in the present war, is not to be affected by this ruling. (Jime 12, 1918.) The raaxiniTim price for Douglas fir logs in the Pacific, Northwest having been fixed by the price-fixing committee of the War Industries Board as follows : • No. 1 grade ^ ^20. gs containing defects similar to the No. 3 grade shall be scaled, priced, and invoiced as No. 3 logs. Custom as to log delivery shall remain unchanged, except as applying to the delivery of logs on Grays Harbor and Willapa Harbor, in the State of Washing- ton, in which districts mills shall absorb towage. The price of fir logs shall neither directly nor indirectly be added to by any log producer through the compelling of the purchaser to take hemlock logs with the fir logs at any price higher than the then maximum price of No. 3 fir logs. Hemlock logs, when ordered by the purchaser or rafted separately, are not subject to said restriction. Long logs -'/2 feet and over. — A long log is to be construed as one 42 feet and longer, 18 inches and over in diameter at the top end, suitable for the manufac- ture into a square edge and sound timber. Long-log dilferentials hereinafter named, in the case of the graded logs, are to be addefl to the price of a No. 2 log, and in the ungraded logs are to be added to the price of the ungraded $16 log. The hereinafter-named differentials on long logs shall only apply when such logs are ordered by the purchaser. Logs 21 inches and under at top end. — Logs in this class, when specifically ordered in lengths 42 feet and over, carry the differentials enumerated below : 42 to 50 feet $2. 00 52 to 60 feet 4. 00 62 to 70 feet 6. 00 72 to 80 feet 9. 00 82 to 90 feet 12.00 92 to 100 feet 15. 00 Logs 28 inehes and over at top end.— 42 to 50 feet $6. 00 .52 to 60 feet 8. 00 62 to 70 feet H- 00 72 to 80 feet W. 00 82 to 90 feet 18.00 92 to 100 feet 25.00 Provided the above spread in prices shall be limited as follows : Logs longer than 60 feet shall take the 60-foot price to the extent of 10 per cent of the raft unless specifically ordered, and when so ordered such longer lengths shall take the regular differentials. In no event shall lengths longer than those ordered above 60 feet in length exceed 10 per cent of the total scale of the raft. All logs over 60 feet in length in excess of 10 per cent of the total contents of the raft shall be invoiced at the base price unless ordered. liOgs over 100 feet in length subject to special rates. Fir-production board to have authority, under the lumber section of the War Industries Board, in all matters of interpretation of rulings as applied to the scaling of logs and inspection of lumber and other minor points. (June 15, 1918.) Government maximum f. o. h. mill base prices for Douglas fir lumber effective midnight June 15, 1918, to midnight September 15, 1918, in accordance with the ruling of the price-fixing committee of the War industries Board, dated June 11, 1918. V. G. flooring. No. 1. No. 2. No. 3. $42.00 $39.00 41.50 $33.00 1*^ by 4 6 to 16 feet 45. 50 35.50 Note.— No. 1 and No. 2 V. G. flooring 1 by 4, 6, 7, 8, and 9 feet, $1 less when in stock. No. 3 V. G., $2 Jess. All 4 and 5 feet, $5 less. Short flooring subject to stock on hand. Specified lengths, $2 extra. GOVERXMEXT E.EGULATI02^S EELATIXG TO PRICES. 765 Flat grain flooring. No. 2 clear and better. 1 by 4, 10 to 16 foot \ §29. 00 1 by 6, 10 to 16 foot ! 32. 00 No. 3. $26.00 30.00 All flat-gram flooring 6, 7, S, and 9 feet, S2 less; all 4 and 5 feet, ?5 less. Specified lengths, S2 extra. Ceiling. No. 3 clear. I by 4, 10 to 16 feet, C. and E., B. or C. and E. V. 1 by 4,, 10 to 16 feet, C. and E., B. or C. and E. V. Note.— 6 to 9 feet, $3 less; 4 and 5 feet, 85 less. Specified lengths, 82 extra. Fir partition $5 more than ceiling. For 6-inch ceiling or partition add $3.50 to the price of 4-inch. Stepping. I4, 1*, or 2 inches, S to 12 inches wide, 3 to 16 feet SSa 00 No. 2 clear and better. V. G. fir stepping S2S or S2S and nosed. Note.— 14 inches, S2 extra; specified lengths, S2 extra. Drop siding and rustic. i by 6H foot drop siding and rustic ■ S31- 00 No. 2 clear and better. No. 3 clear. S28.50 Note.— 6 to 9 feet, S3 less, 4 and 5 feet, S5 less. Specified lengths, $2 extra. Orders for drop siding pat- terns other than No. 106 must include the other grade accumulated in working at grade prices. FIR FINISH NO. 2 CLEAR AND BETTER, 6 TO 16 FEET LONG. 1 by 4 Iby6 1 by 5, 8 inches and 10 inches... Ibyl2 1 J and 1* by 4 and 6 inches 1 J and li, 5, 8, 10, and 12 inches. 2by4..1 2by6 2 by 8 and 2 by 10 2byl2... 2J, 3, and 4 inches (green only) . SaSor S4S. .?39. 00 40.00 41.00 43.00 42.00 44.00 39.00 40.00 41.00 43.00 Rough dry. S37.00 38.00 39.00 41.00 40.00 42.00 37.00 38.00 39.00 41.00 Rough green. $35.00 36.00 37.00 39.00 38.00 40.00 35.00 36.00 37.00 39.00 41.00 Note.— For each inch in width over 12 inches add SI. Specified lengths S2 extra. For selected slash grain add SIO. For vertical grain add S7. , , , v 1 Foregoing prices on uppers are based on loading not less than 85 per cent 10 feet and longer; balance shorter, usual lengths, well proportioned. FIR, COMMON BOARDS, SIS OR SHIPLAP. 1 by 2, 6 to 20 feet mixed lengths, SIS ^^- SS 1 by 3, 6 to 20 feet mixed lengths, SIS 20. W lby4, 6 to 20 feet mixed lengths, SIS 18-00 1 by 6, 6 to 20 feet mixed lengths, SIS or S. L 18-50 1 by 8, 6 to 20 feet mixedlengths, SI S or S. L 19-50 1 by 10, 6 to 20 feet mixed lengths, SIS or S. L 19-50 1 by 12, 6 to 20f eet mixed lengths, SlS 20. 00 For selected common, add S3; for D. and M., add $1.50; for grooved roofing, add S3. Orders for 16, 18, and 20feet only, add S2. Other orders for specified lengths, add $1 to above prices. No. 2 common boards and shiplap, S3 less when in stock. 766 HISTORY OF PRICES DURING THE WAR. FIR, COMMON DIMENSION, SISIE. 2 by 3 and 2 by 4. 2 by 6 and 2 by 8. 2 by 10 2 bv 12 2 by 14 2byl6 2byl8 2 by 20 6 feet. $17. 50 17.50 18.00 18.50 8, 12, and 14 feet. 818. 50 18.00 19.00 19.50 21.00 22.00 24.00 26.00 IHfcet. S19.50 19.00 19.50 20.00 21.00 22.00 24.00 26.00 9, 10, 18, and 20 feet. 22 and 24 feet. $20. 50 19.50 20.00 20.50 22.00 23.00 25,00 27.00 $21.50 20.50 21.00 21.50 23.00 24.00 26.00 28.00 26 to 32 feet. S23.50 22.00 23.00 23.50 25.00 26.00 28.00 30. 00 Add 50 cents for every 2 feet over 32 feet long up to 40 feet. For select common, add S3. SlE or rough, same mill base as dressed. For 2 by 4, 2 by 6, or 2 by 8 D. and M. or shiplap, add to SlSlE, $1.50. Hem- lock permitted In 2 by 4 and 2 by 6. FIE COMMON PLANK AND SMALL TIMBERS SlSlE OR S4S. 2 by 3, and 3 by 4 . . . 3 by 6 3by8 4 by 4, 4 by 6, 4 by ,8. 6 by 6 to 8 bv 8 3 by 10 and 3 bv 12. . 3byl4 ; 3byl6 3byl8 3 by 20 4 by 10 and 4 by 12. . 4 by 14 4 by 10 4 by 18 4 by 20 8, 12, 14, and 16 feet. 9,10, 18, and 20 feet. $21.00 22.00 22.00 22.50 22.00 23.50 24. 00 25.00 27.00 29.00 23.50 24.50 25. 50 27.00 29.00 $21. 50 22.50 22.50 23.50 23.00 24.50 25.00 26.00 28.00 30.00 24. 50 25.50 26.50 28.00 30.00 22 and 24 feet. $22.50 23.50 23.50 24.50 24.00 25.50 26.00 27.00 29.00 31.00 25.50 26.50 27.50 29.00 31.00 26 to 32 feet. $24. 50 25.50 25.50 26.50 26.00 27.50 28.00 29.00 31.00 33.00 27.50 28.50 29.50 31.00 33.00 Add 50 cents for every 2 teet over 32 feet long up to 40 feet. For selected common add S3 SlE or rough same mill base as dressed. FIR TIMBERS SINGLE CARLOAD LENGTHS. 6 bv 10 to 8 by 12... 6by 14 to 8 by 14... 6 by 16 to 10 by 16.. 6by 18 to 10 by 18.. 6by 20to8by 20... 6by 22toSby 22... 6by 24 to 8 by 24... 10 by 10 to 12 by 12. lOby 14tol4by 14. 10 by 20 to 12 by 20. 10 by 22 to 12 by 22. 10 bv 24 to 12 by 24. 12 by 16 to 16 by 16. 12 by 18 to 18 by 18 14 by 20 to 20 by 20. 14 by 22 to 22 by 22 14 by 24 to 24 by 24. 32 feet and under. Rough. SlSlE or S4S. S25. 00 $26.00 25. 50 27.50 27.00 29.50 28.00 31.00 29.50 32.50 32. 50 36. 00 36.00 40.00 25.00 28.00 25.50 28.00 30.00 33.50 32.00 as. 75 35.00 39.00 26.50 30.00 28.50 32.50 29.50 34.00 31.50 36.50 3.5.00 40.50 34 to 40 feet. Rough. $27.00 27.50 29.00 31.00 32.50 36.50 42.00 27.00 27.50 33.00 36.00 39.50 28.50 30.50 .32.50 35.50 39.50 SlSlE or S4S, $28.50 30.00 32.00 34.50 36.00 40.50 46.50 29.50 30.50 36.00 40.25 44.00 32.50 35.00 36.50 41.00 45.50 GOVERNMENT REGULATIOlsrS RELATtNG TO PRICES. FIR TIMBERS REQUIRING TWO OR MORE CARS. 767 $29. 50 30.00 31.50 34. 00 35.50 39.50 45.00 29.50 30.00 36.00 39.00 42.60 31.00 33.50 35.50 14 by 22 to 22 by 22 t 38. 50 14 by 24 to 24 by 24 j 42. SO 6by 6to8by 12.... 6by 14 to 8 by 14... 6 by 16 to 10 by 16.. 6 by 18 to 10 by 18.. 6by 20 to 8 by 20... 6by 22 to 8 by 22... 6by 2.4 to 8 by 24... 10 by 10 to 12 by 12. 10 by 14 to 14 by 14. 10 by 20 to 12 by 20. 10 by 22 to 12 by 22. 10 by 24 to 12 by 24. 12 by 16 to 16 by 16. 12 by 18 to IS by 18. 14 by 20 to 20 by 20. 42 to 44 feet. Rough. SISIE orS4S. $31.25 32. 75 34.75 37.75 39.25 43.75 49. 75 32.25 33.25 40.25 43.50 47.25 35.25 38.25 40. 75 44.25 48.75 46 to 50 feet. Rough, $31. 75 32.25 33.75 37.00 38.50 42.50 48.00 31.75 32.25 39.00 42.00 45.50 33.25 36.50 38.50 41:50 45.50 SlSlE or S4S. S33. 75 35. 25 37.25 41.00 42.50 47.00 53.00 34.75 35.75 43.50 46.75 50.50 37.75 41.50 44.00 47.50 52.00 52 to 54 feet. Rough. $33.75 34.25 35.75 40.00 41. 50 45.50 33.75 34. 25 42.00 45.00 48.50 35.25 39.50 41.50 44.50 48.50 SlSlE orS4S. $36. 00 37.50 39.50 44.25 45. 75 50.25 37 00 38.00 46.75 50.00 63.75 40.00 44.75 47 25 50.75 55.25 56 to 60 feet. Rough. $36. 75 37. 25 38.75 44. 50 46.00 50.00 36.75 37.25 46.60 49.50 53.00 38.25 44.00 46.00 49.00 53.00 SlSlE or S4S. S39. 25 40.75 42.75 49.00 60.50 55.00 40.25 41.25 51.50 54.75 58.50 43.25 49.50 52.00 55.50 60.00 For odd or fractional thicknesses add to next less thickness 50 cents. Odd or fractional length timbers ordered shall be counted as of next longer even length. For odd or fractional widths add to next less width $1. For select common add $3. For price on lengths longer than 60 feet add $11 per thousand to f. o. b. mill price as contained in west coast price list of May 1, 1915. Inspection at mill. Grades in accordance with West Coast Lumberman's Association grading rules, rail A list issued January 1, 1917. GOVERNMENT PRICE LIST F. O. B. MILL, COVERING DOUGLAS FIR FOR RAILROAD AND OAR MATERIAL, AS APPROVED BY DIRECTOR OF LUMBER, OCTOBER 12, 1918. 0) 6 by 8 7 by 8 7 by 9 Cross- ties. $19. 00 20. 00 21.00 C) 6 by 8 7 by 8 and 8 by S, 7by9.. .-.. Bridge ties suifaeed. $20. 00 21.00 22.00 1 For switch ties add $1.50perl,000 to crosstie prices. Bridge stringers. 6 by 16 to 10 by 16-32 and under 6 by 18 to 10 by 18 and under . . . 6 by 20 to 8 by 20 and under . . . . 6 by 22 to 8 by 22 and under 6 by 24 to 8 by 24 and under 10 by 20 to 12 by 20 and under . . 10 by 22 to 12 by 22 and under . . 10 by 24 to 12 by 24 and under . . Common, rough. $27.00 28.00 29.50 32.50 36.00 30.00 32.00 3S.0G Surfaced. S?9. 50 31. 00 32. 50 36.00 40.00 33.50 35.75 39.00 Select common. $30.00 31.00 32. 50 35.50 39.00 33.00 35.00 38.00 Select common, surfaced. S32. 50 34.00 35.50 39.00 43.00 36.50 38.75 42.00 Weight: Rough, 3,300 pounds; SlSlE or S4S, 3,000 pounds. For odd or fractional thickness add to next less thickness 50 cents. Odd or fractional length timbers ordered shall be counted as of next longer even length. For odd or fractional widths add to next less width $1. ^foTE.— Lengths 34 to 40, add regular timber list spread. Car sills. 34-foot. 35 to 40 foot. 41 to 45 foot. $29. 00 31.00 $31.00 33.50 $36. 00 S4S 38.50 Note.— For select common add S3 per 1,000. 768 HISTORY or prices during the war. STANDARD CAR DECKING AND END LINING (SURFACED). Common. Select common. No. 2 clear and bettor, F.G.K.D. No. 2 clear and better, V.G.K.D. 2 by 6 to 2 by 10 1 . . 2}-mch and thicker. S21.00 $24. 00 $41.00 44.00 548.00 51.00 ' $1.50 less for rough stock. STANDARD CAR FRAMING, FACIA AND RUNNING BOARD. Rough. Surfaced. Common. Select common. Common. Select common. 2 by 12 and smaller, H^ch surfacing Larger sizes, J inch surfacing $2,4. 00 26.00 $27. 00 29.00 $26.00 28.00 S29.00 SI. 00 INSULATION. g by 4 and i by 6, 4 lo 20 feot, No. 1 common, $15.50 ; select common, $17.50. Note. — Surface mea.surement . STANDARD CAR SIDING. 1 by 4, No. 2 and better, V. G., K. D., SIS, S2S, or worked $44.00 1 by 4, No. 2 and better, F. G., SIS, S2S, or worked 34. 00 1 by 6, No. 2 and better, V. G., SIS, S2S, or worked 46. 00 1 by 6, No. 2 and better, F. G., SIS, S2S, or worked 35.50 Note. — Fractional lengths shall be counted as the next longer odd or even foot in length ; 15 per cent of No. 3 grade accumulated in manufacturing $5 per thousand less ; rough green stock $4 less ; rough dry stock >'i;2 less. STANDARD CAR LINING AND ROOFING. 1 by 4, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths $34. 00 1 by 4, No. 2 and better, S. G. (SIS, S2S, or worked), specified 36.00 1 bv 6, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths 35. 50 1 by 6, No. 2 and better (SIS, S2S, or worked), specified 37.50 15 and IJ by 8, No. 2 and better, S. G. (SIS, S2S, or worked), random lengths— 43. 00 11 and l| by 8, No. 2 and better, S. G. (SIS, S2S, or worked), specified 45.00 Note. — No. 3 grade accumulated in manufacture at $5 per thousand less ; rough green stock $4 less ; rough dry stock $2 less ; V. G. add $9. HORIZONTAL SHEATHING (KILN-DRIED WORKED). 2 by 4, No. 2 and better, S. G _• $42. 50 2 by 6, No. 2 and better, S. G 43. 50 Note. — V. G. add $7 ; rough green stock $4 less ; rough dry stock $2 less. Timbers, boards, dimensions, shiplap, and other miscellaneous requirements at prices approved for Government purchases. All grading and surfacing to be in accordance with West Coast Lumbermen's Association standard classification grading and dressing rules, January 1, 1917, for general requirements. August 1, 1917, for car material. MAHOGANY LUMBER. An informal agreement as to a fair and reasonable price for mahogany lum- ber, propeller quality, v>-as entered into in March, 1918, between mahogany producers and the bureau of aircraft production. The price agreed upon was $350 per thousand feet. It remained unchanged throughout the period of the war. NEW ENGLAND SPRUCE. An average price of $33 per thousand Avas reached by agreement between the manufacturers of New England spruce and the lumber committee of the Council of National Defense in June, 1917. GOVEKFMENT REGULATIONS RELATING TO PRICES. 769 A new schedule, approved by the price-fixing committee on April 12, 1918, showed an increase to about $40 per thousand board feet.' The Federal Trade Commission investigated costs in the industry, and a new price list was issued July 17, 1918. This applied to all purchasers of spruce lumber and showed another increase of $8 per thousand board feet on all items. The schedules of July, 1918, were effective until November 1, 1918, and were then extended to December 1, 1918, when control ceased. (Apr; 12, 1918, to July 1, 1918.) Prices quoted in the schedule below are on United States Government orders for merchantable spruce lumber in orders of substantial size, for carload lot shipments. Prices are effective from April 12, 1918, to July 1, 1918. For further information inquire of New England spruce emergency bureau, 131 State Street, Boston, Mass. Sizes. Lengths (feet). 2 by 2 2 by 3 planed 1 edge. 2 by 4 planed 1 edge. 2by5 2by6 2by7.... 2by8 2by9 2bvl0 2by 12 3 by 4 planed ledge. 3by5 3by6 3by7 3by 8 3by9 3byl0 3byl2 4by 4 4by5 4by 6 4by7.... 4by8 4by 9 4by 10 4byl2 5by5 5by6 6by7 6by8 5by9 5byl0 5byl2 6by6 6by7 6by8 6by9 6 by 10 6 by 12 7by7 7by8 7by9 7bylO 7by 12 8bv8 -'-.-. 8by9 8 by 10 8byl2 Where the fractional part of a foot is specified, the stock is to be figured the next foot in length. For every 2 feet or fraction over 20 feet add $1 per M. 8-20 feet. ....do.., do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do. . do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. do.. ..do.. ..do.. ..do., ..do.. ..do.. ..do.. ..do.. ..do.. ..do.. ..do.. ..do.. ..do.. ..do.. ..do., ..do.. Prices (per M feet). S40. 00 40.00 40.00 40.00 40.00 40.00 40.00 46. 00 50.00 52.00 40.00 40.00 40.00 40.00 40.00 45.00 50.00 52.00 40.00 40. 00 40.00 40.00 40.00 45.00 50.00 52.00 40.00 40.00 40.00 40.00 45. 00 50.00 52.00 40.00 40.00 40.00 45.00 50.00 52.00 40.00 40.00 45.00 50. 00 52.00 40.00 45.00 50.00 52.00 Sizes. Lengths (feet). Prices (per M feet). Iby4 Iby5 Iby6 Iby7 IbyS Iby9 IbylO Ibyl2 IJor liby 4 liorliby5 liorlibv6 liorlJby7 IJor IJbyS liorljbyg lior l\by 10 -... IJ or 14 by 12 2by2 - 2bv3 2by4 3 by 4 or 4 by 4 All other 8-inch and under sizes. 2by9 2by 10 2by 12 Iby4 Iby5 Iby6 Iby7 IbyS Iby9 I|by9 Iiby9 Iby 10 liby 10 IJbylO Iby 12 liby 12 I;^byl2 1 by 2 or 1 by 3 planed 1 side. 1 by 2 or 1 by 3 planed 1 side. 1 by 4 to 8 planed 1 side. 1 by 4 to 8 planed 2 sides, planed 1 or 2 sides and matched, planed, matched and beaded, or planed 4 sides. 8-20 feet ....do.. ....do.. ....do.. ....do.. ao ....do ....do ....do. ....do ....do ....do ....do ....do ....do ....do Random lengths do ....do ....do ....do ....do ....do. ....do ....do do do do... do do do do do do do do do do Any quantity any length. 8-20 feet Random lengths Random widths and lengths. Random lengths S40. 00 40.00 40.00 40.00 40.00 45.00 50.00 55.00 40.00 40.00 40.00 40.00 40.00 45.00 59.00 55.00 35. 00 35.00 35. 00 38.00 40.00 43.00 45.00 48.00 40.00 40.00 40.00 40.00 40.00 45.00 45.00 45.00 50.00 50.00 50.00 55.00 55. 00 55.00 40.00 35.00 38.00 40.00 1 Price Fixing Committee Minute Book II, Apr. 11-12, 1918. 125547°— 20 49 770 HISTORY OF PEICES DURING THE WAR. All prices in the rough unless otherwise spcclfled above. For planing 1 side, add $0. 50 For planing 2 sides, add 1. 00 For planing 1, 2 sides and matching or grooving and planing 4 sides, add 1. 50 For heading, add . 50 The above prices are quoted with the understanding that the Government will endeavor to give a fair assortment of widths and lengths on their orders and that we should not bo called upon to furnish all S-inch and wider on any job unless we furnish the narrow widths and short lengths needed for same job. Any order submitted not in accordance with our interpretation of the above statement, we reserve the right to make additional charge, according to manufacturing and market conditions at that time, for furnishing such schedules. If such charge is not agreeable to the Government cancellation may be made within a reasonable length of time after noti- fication to the Government, say, 10 days. These prices allow the present rate of freight to Boston, Mass. They do not include the 3 per cent tax on freight bills. In adjustment of freight differentials, the Bangor & Aroostock Railroad lumber tariff to govern. All freight rates subject to change in accord- ance with changes of present railroad rates. Terms of settlement : One per cent discount for cash 15 days from date of shipment, eastern merchantable inspection to govern. For deliveries other than Boston, add following arbitraries : Per M. feet. Albany, via Delaware & Hudson $J). 75 Schenectady, via Delaware & Hudson ^ . 75 South Boston 1- 00 Philadelphia 3. 7.j Wilmington : 3. 75 Newark 3. 75 Baltimore ; 3. 75 Bristol, Pa 3. 75 Troy, N. Y .25 Albany and Schenectady, via New York Central 1 1.25 The prices quoted to remain in effect until July 1, 191S, or such prior time as the Federal Trade Commission have completed an investigation of cost of manufacturing lumber in the New England district and is prepared to submit their findings to the price- fixing committee of the War Industries Board, at which time these prices may be sub- ject to revision. (July 19, 1918.) After considering the information submitted by tlie Federal Trade Commis- sion as to the cost of manufacturing New England spruce lumber, and the infor- mation submitted by the representatives of the manufacturers thereof at the hearings held on the 18th of July, 1918, at which their request for a readjust- ment of prices on their products was heard, the price-fixing committee appointed by the President has determined, by agreement with the said representatives of the manufacturers of New England spruce lumber, upon the following maximum prices for such lumber. These maximum prices shall not be exceeded on any sales and contracts for sale (for mill shipment) made by the manufacturer, dealer, or other person during a period beginning midnight July 19, 1918, and ending midnight November 1, 1918, to the Government, to the Governments of the nations associated with us in the present war, to the railroads, or to such others as customarily purchase lumber for mill shipment, whether by rail or by water. The prices of all New England spruce lumber in the States of Maine, New Hampshire, Vermont, and Massachusetts shall not exceed the item prices named in attached list. These prices are for New England spruce lumber deliv- ei'ed (freight allowed) to Boston, Mass. They do not include war tax on freight bills. For shipments to other destination points, freight adjustments will be governed by differentials shown in Bangor & Aroostook Railway lumber tariff on basis of 3,000 poijnds weight to 1,000 feet of lumber. GOVEKNMENT EEGULATIONS RELATING TO PRICES. 771 Prices on items not covered by above list shall be priced on basis of nearest comparable item. The usual trade practices shall continue, including cash discount of 1 per cent in 15 days or 30 days net. Contracts for the sale of lumber entered into in good faith prior to midnight July 19, 1918, and enforcible at law, will be performed in accordance with their terms, subject, of course, to orders received from the Government which may require priority. It is imperative that with the least possible disruption of the industry the vast war needs of the Government, both direct and indirect, for New England spruce lumber be supplied on a fair basis, that an adequate supply and equitable distribution thereof be assured for essential commercial needs, that the move- ment thereof be facilitated, and that injurious speculation therein be prevented. Therefore the procedure outlined below, by agreement with the representatives of the manufacturers of New England spruce lumber, has been adopted for a period beginning midnight July 19, 1918, and ending midnight November 1, 1918. The procedure is that each manufacturer of New England spruce lumber shall— (1) Make contracts and accept orders for his product at prices not in excess of the applicable maximum prices, always subject to an option at the applica- ble maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option,, which will cover all New England spruce lumber down to time of actual delivery to the purchaser, the War Industries Board to any extent required will allocate either to the Government or to other essential users. Any balance not so allocated will be released for sale to com- mercial buyers, but at prices no greater than those determined upon as above set forth. (2) Comply with the directions of the War Industries Board, as issued from time to time, with reference to filling commercial requirements in the order of their public importance and to furnish such information and making such re- ports as may be required. (3) Keep up to the best of his ability the production of spruce lumber so as to insure an adequate supply so long as the war lasts. (4) Neither reduce the scale of wages now being paid nor change - funda- mental labor conditions now in force. The Government will apportion the car supply available for lumber and ar- range for its transportation, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war-time conditions be neutralized so far as may be. Foreign trade, except to the governments of nations associated with us in the present war, is not to be affected by this ruling. (July 19, 1918.) Maximum prices on New England merchantable spruce lumber delivered (freight allowed) to Boston, Mass. They do not include war tax on freight bills. For shipments to other destination points freight adjustments will be governed by differentials shown in Bangor & Aroostook Railroad lumber tariff' on basis of 8,000 pounds weight to 1,000 feet of lumber. Effective mid- night July 19, 1918, to and including November 1, 1918. DIMENSION. [Specifled lengths 20 feet and under.] Sizes. Iby2, DlStol-inch lby3, DlSto|incli Il3y4... Iby5 Iby6.... Iby7 IbyS.... Prices. $48.00 48.00 48.00 48.00 48.00 48.00 48.00 Sizes. IbyO IbylO Ibyl2 IJ or li by 4 li or U by 5 11 or H- by 6 11 or li by 7 Prices. $53.00 58.00 60.00 48.00 48.00 48.00 48.00 772 HISTORY OF PRICES DURING THE WAR. DIMENSION— Continued. Sizes l}or Hby 8 liorlibyO...- lior Uby 10 liorlibyl2 2by2 2 by 3, DIE to 2| inches 2 by 4, DIE to 3} inclios 2bv5 2by6 2by7 2by8 2by9 2by 10 2byl2 , 3 by 4, DIE to 3J inches. 3by5 3by6 , 3by7 3by8 3by9 3byl0 3byl2 , 4by4 4by5 4by6 4by7 Prices. $48. 00 r,3. 00 5S. 00 60.00 48.00 4S. 00 48.00 48. 00 48.00 48.00 48.00 53.00 58.00 60.00 48.00 48.00 48.00 48.00 48.00 53.00 58.00 60.00 48. 00 48.00 48.00 48.00 Sizes. 4 by 8. 4 by 9. 4 by 10 4 by 12 5 by 5. 5 by 6. 5 by 7. 5 by 8. 5 by 9. 5 by 10 5 by 12 6 by 6. 6 by 7. 6 by 8. 6 by 9. 6 by 10 6 by 12 7 by 7. 7 by 8. 7 by 9. 7 by 10 7 by 12 8by8. 8 by 9. 8 by 10 8 by 12 Prices. S48.00 53.00 58.00 60.00 48.00 48.00 48.00 48.00 53.00 58.00 60.00 48.00 48.00 48.00 53.00 58.00 60.00 48.00 48.00 53.00 58.00 60.00 48.00 53.00 58.00 60.00 All above prices are for roua;h lumber unless otherwise specified. Where the fractional part of a foot is specified, the stock is to be figured the next foot in length. For every two feet or fraction over 20 feet add $1 per thousand. RANDOM LENGTHS. Sizes. 1 by 2, DlS to I inch ■lby3, DlS to ^ inch lby4 Iby5 Iby6 Iby7 IbyS Iby9 IbylO Ibyl2 IJ or IJ by 4 lior liby5 IJor l.i;by6 IJor ljby7 IJor libyS IJor l.Vbv9 IJorliby 10 l-Jor 11 by 12 Prices. S38.00 38.00 42.00 42.00 45.00 45.00 45.00 50.00 55.00 59.00 45.00 45.00 45.00 45.00 45.00 50.00 55.00 59.00 Sizes. 2by2 , 2 by 3, DIE to2Jinclies, 2 by 4, DIE to 3i inches. 2by5 2by6 2by7 2by8 2by9 2byl0 2byl2 3 by 4, Die to 3| inches, 3by9 3byl0 3byl2 4by4 4by9 4by 10...... 4 by 12 Prices. $36.50 36.50 38.00 38.00 38.00 38.00 43.00 45.00 50.00 65.00 40.00 45.00 50.00 55.00 40.00 45.00 50.00 55.00 All 8 inches and under sizes, random lengths, including timber, not specified above, $43. All above prices are for rough lumber unless otherwise specified. For planing 1 side add per M. . $0. 50 For planing 2 sides add do 1. 00 For planing 1 or 2 sides and matching or grooving add do 1. 60 For beading, extra : do 50 For planing 4 sides add do 1. 50 1 by 4 to 8, planed Iside, random widths and lengths 41.00 1 by 5 and up, planed and matched, random widths and lengths 43. 50 1 by 5 and up, planed and matched, random widths, all even lengths, 10 to 18 feet 47. 00 Shiplap5, 6, and 7 inches, random lengths 46.00 Shiplap 8 inches, random lengths 48. 00 Prices on items not covered by above list shall be priced on ba.sis of nearest com- parable item. Terms of settlement : One per cent discount for cash within 1.5 days or 30 days net from date of shipment ; eastern merchantable Inspection to govern. All freight rates subject to change up or down according to any changes by railroada in present rates. GOVERNMENT REGULATIONS RELATING TO PRICES. 773 Sizes. Lengths (any quantity any length). Prices (per M feet). 1 by 2 or 1 by 3 Planed 1 side, 8 to 20 feet $40 Do Planed random lengths 35 1 by 4 to 8 . . Planed random widths and lengths 33 Do... ; laths, No. 2, .$3.75. Dimensions. 10, 12, 14, and 16 feet. 18 and 20 22 and 24 feet. ' feet. Random. 2by2SlSlE. 2by3SlSlE. 2by4SlSlE. 2by6SlSlE. 2by8SlSlE. 2 by 10 SISIE 2 by 12 SlSlE S31.00 29.50 30.00 28.50 29.50 30.00 32.00 .S33. 00 30.50 32.00 29.50 31.50 32.00 33.50 S34. 50 32.00 33.50 31.00 33. 00 33.50 35. 00 S30. 50 29.00 29.50 28.00 29.00 29.50 31.50 Dimension when ordered kiln dried, add $2 per thousand feet. Dimension D. & M. or shiplap, add $1 per thousand to SISIB prices ; rough, 50 cents less than SlSlE price.s ; S4S, add 50 cents per thousand to SlSlE prices. For dimension over 24 feet, add $1 for each 2 feet up to 32 feet. For merchantable longleaf 10 inches and under wide, add $3 per thousand feot. For merchantable longleaf 12 inches and over wide, add $2 per thousand feet. (Oct. 1, 1918.) Note.— All lumber not over 2 inches thick when ordered in odd or fractional lengths will bo invoiced as of next longer length in multiples of 2 feet. Timbers. 3 by 4 and 4 by 4.. 3by Gto8by 8 3 by iO to 4 by 10.. 5 by 10 to 10 by 10. 3 by 12 to 5 by 12. . G by 12 to 12 by 12. 3 by 14 to 5 by 14.. G by 1 J to 8 by 14.. 10 by 14 to 14 by 14 10 to 20 feet. 22 and 24 feet. 20 feet. 28 feet. 30 feet. 32 feet. $33.00 S34. 00 S35.00 $36.00 $37.00 $38.00 32.00 33.00 34.00 35.00 36.00 37.00 36.00 37.00 38.00 39.00 40.00 41.00 35.00 36.00 37.00 38.00 39.00 40.00 38.00 39.00 40.00 41.00 42.00 43.00 37. 00 38.00 39.00 40.00 41.00 42.00 43.00 44.00 45.00 46.00 47.00 48.00 42.50 43.50 44.50 45.50 40.50 47.60 42.00 43.00 44. 00 45.00 46.00 47.00 Add for timbers over 14 inches $3 for each 2 inches over 14 inches. Add for timbers over 32 feet $1 for each foot over 32 feet. Prices above are for short-leaf dimensions rough ; ^or better qualities and various working apply the following differentials : For long leaf No. 1 common add $2 per thousand feet. For merchantable 10 inches and smaller add $3 per thousand to No. 1 long-leaf price. For merchantable 12 inches and larger add $2 per thousand to No. 1 long-leaf price. For prime rule of 1905 add $5 to No. 1 long-leaf price. Add for dressing $1 per thousand feet. Add for T. & G. or shiplap $2 per thousand feet. Add for grooving $3 per thousand to dressed price stock 3 and 4 inches thick. Add for grooving $5 per thousand to dressed price stock 5 inches and thicker. Add for bevelling and outgauging $2 per thousand feet to dressed prices. Note. — All timber when ordered in odd or fractional lengths will invoice as of next longer length a multiple of 2 feet. PENNSYLVANIA HEMLOCK. The original price schedules for Pennsylvania hemlock were announced by the emergency bureau on April 6, 1918, and wei-e approved by the price-fixing committee on May 8, 1918. The base price was $27 per thousand board feet. This base price was increased on August 15, 1918, to $29 per thousand, and the price lists rearranged accordingly. On October 16 revision was postponed and existing prices were continued until December 20, 1918, when all restrictions were removed. GOVERNMENT REGULATIONS RELATING TO PRICES. 779 (May 8, 1918, to Aug. 8, 1918.) The price-fixing committee of the War Industries Board passed the following ruling on May 8, 1918, covering the maximum prices for mill shipment of Pennsylvania hemlock lumber : "-The price of $31 per thousand feet f. o. b. cars Philadelphia which has been in force since April 6, 1918, shall be continued in effect as the basic maximum price of Pennsylvania hemlock lumber to all departments of the Government until August 8, 1918." At the same time the following rules with reference to the prices of No. 1 and No. 2 grades of Pennsylvania liemloek were promulgated: 1. That the system of delivered prices be discontinued; and that there be substituted as basic maximum the price of $27 per thousand feet f. o. b. mill, with variations according to the appended schedule. 2. That the entire stock, and production of Pennsylvania hemlock, grades Nos, 1 and 2, will be held available for the direct and indirect needs of the Govern- ment in the war, and will be distributed and dealt in subject to the control of the War Industries Board. 3. That such of the lumber as, in the judgment of the chief of the lumber sec- tion of said board, can without detriment to governmental reqiiirements be released for urgent commercial or other needs, may be sold to car-lot pur- chasers (with his consent) at prices which, per item, shall not exceed the prices as established by the appended schedule. 4. This arrangement shall continue effective until August 8, 1918. SCHEDULE OF VARIATION FROM BASE OF $27 PEE M FEET, BOARD MEASURE IN CARLOAD LOTS. NO. 1 SIZES. 2 by 3: 10 feet (ripped from 2 by 6), ndd $1. 00 12 and 14 feet, add 1.00 16 feet, add 3. 00 18 and 20 feet, add 5. 50 2 by 4 : 8 feet, L. R., deduct 2. 00 9 feet, L. R., when In stock, add_ 2. 00 10 feet 12 feet 14 feet 16 feet, add 3. 00 18 and 20 feet, add 4. 50 22 and 24 feet, add 5. 50 2-inch sizes. No. 2, $2 per M less than same size in No. 1. 2 by 6 to 2 by 12 : 10 feet, when in stock, add 12 and 14 feet 16 feet, add 1. 50 18 and 20 feet, add 3. 50 22 and 24 feet, add 5. 50 26 and 28 feet, add 6. 50 30 and 32 feet, add 7. 50 34 and 36 feet, add 9. 50 38 and 40 feet, add 11. 50 3 by 4' to 12 by 12 : add 50 cents per M feet to price of 2 by 6 to 2 by 12, same lengths. NO. 1 BOARDS. 1 by 6: 10, 12, and 14 feet 16 feet, add ?5. 00 18 and 20 feet, add 4. 00 1 by 8: 10, 12, and 14 feet 16 feet, add 2. 00 18 and 20 feet, add 3. 50 1 by 10 : 10, 12, and 14 feet, add 1. 50 16 feet, add 5. 00 18 and 20 feet, add 5.00 1 by 12 : 12 feet, add 4. 50 10 and 14 feet, add 2. 00 16 feet, add 6. 00 18 and 20 feet, add 6. 00 5/4 and 6/4, add $2 to price of boards same width. NO. 2 BOARDS. 1 by 6, 8 to 18, rough or SIS, deduct. $1. 00 1 by 8, 8 to 18, rough or SIS 1 by 10, 8 to 18, rough or SIS, add_ . 50 1 by 12, 8 to 18, rough or SIS, add. . 50 NO. 3 BOARDS. 1 by 6 to 12 : 8 to 18, rough or SIS, deduct— $4. 00 LOG RUN BOARDS. 1 by 4, 8 to 16, rough or SIS, deduct- $i. 00 1 by 6 to 12, 8, rough or SIS, deduct _ 3. 00 1 by 6 to 12, 10, SIS, deduct DRESSED AND MATCHED BOARDS. 1 by 4, 8 to 16 feet. No. 1 (25 per cent 10 feet), add SI. 00 1 by 6, 10 feet. No. 1 1 by 6, 8 to 18 feet. No. 2 1 by 8, 8 to 18 feet. No. 2 1 by 6, 10 to 16 feet. No. 1 (25 per cent 10 feet), add 3. 00 ROOFING LATH. 1 by 2, 1 by 2h, and 1 by 3, 10 to 16 feet, add $5.00 SPECIAL. SIZES. For each inch over 12 inches in width in timber and plank add 50 cents per M. ; 5 inches, 7 inches, 9 inches, and 11 inches sawed to order, $1 per M. extra. PRICES FOR WORKING LUMBER. Saw sized or SlSlE_-per M $1. 75 Dressing 1 or 2 sides (except L. R. No. 2 and 3 boards) per M 1. 50 Ship lap or matching (except as specified under D and M. boards__ per M__ 2. 00 Joists worked to flooring, or grooved 2 edges, or dressed 4 sides_per M 2. 00 780 HISTOKY OF PRICES DURING THE WAR. (Aug. 15, 1918.) The price-fixing comiiuttee of the War Industries Board announces a base price of $29, an increase of $2 over the former price of Pennsylvania hemlock lumber. The entire output of No. 1 and No. 2 grades will probably be required by the Government, and the stock will be distributed subject to the control of the War Industries Board. Following is the official announcement: "After considering the information submitted by the Federal Trade Commis- sion as to the cost of hemlock-lumber production in the State of Pennsylvania, and the information submitted by the representatives of the manufacturers of sueti lumber at a hearing granted them on Wednesday, August 14, 1918, the price-fixing committee of the War Industries Board, by agreement with the producers, passed a ruling fixing a maximum base price for mill shipments of Pennsylvania hemlock lumber at $29 per thousand feet, f. o. b. cars shipping point, such price to become effective midnight August 15, 1918, and to remain in effect to and including October 20, 1918. " The following companies, producing the greater part of Pennsylvania hem- lock lumber, were present at the hearing : Goodyear Lumber Co., Norwich, Pa. ; Wheeler & Dusenbury, Endeavor, Pa. ; Pennsylvania Lumber Co., Killettsville, Pa. ; Central Pennsylvania Lumber Co., Williamsport, Pa. " By reason of the construction program of the various governmental depart- ments, it is apparent that the Government will require substantially the entire output of No. 1 and No. 2 grades of Pennsylvania hemlock. It was, therefore, agreed at the hearing by all of the above manufacturers : "(1) Tliat their entire stock and production of Pennsylvania hemlock, grades Nos. 1 and 2„ will be held available for the direct and indirect needs of the Government in the war, and will be distributed and dealt in subject to the control of the War Industries Board. "(2) That such of the foregoing lumber as, in the judgment^ of the chief of the lumber section of said board, can, without detriment to governmental requirements, be released for urgent commercial or other needs may be sold to car-lot purchasers (with his consent) at prices which, per item, shall not exceed the prices as established by the attached list." The " attached " list referred to above contains the item prices, which are unchanged from the old list, except that they apply to the new $29 base. NO. 1 SIZES. 2 by 3: 10 feet (ripped from 2 by 6)__ S.30. 00 12 and 14 feet 30. 00 16 feet 32.00 18 and 20 feet 34. 50 2 by 4: 8 feet, L. R 27. 00 9 feet, L. R. (when in stock). 31.00 10 feet 29. 00 12 feet , 29. 00 14 feet 29.00 16 feet 32. 00 18 and 20 feet 33. 50 22 and 24 feet 34. 50 2 bv 6 to 12 by 12 : " 10 feet (when in stock) 29. 00 12 and 14 feet 29.00 16 feet 30. 50 18 and 20 feet 32.50 22 and 24 feet 34. 50 26 and 28 feet 35. 50 30 and 32 feet 36. 50 34 and 36 feet 38. 50 38 and 40 feet 40. 50 3 by 4 to 12 by 12, add 50 cents per M feet to price of 2 by 6 to 2 by 12, same lengths. 2-inch sizes, No. 2, $2 per M feet less than .same size in No. 1. XO. 1 BOARDS. 1 by 6 : 10, 12, and 14 feet $29. 00 16 feet 34. 00 18 and 20 feet 33. 00 1 by 8: 10, 12, and 14 feet 29. 00 16 feet 31.00 18 and 20 feet 32. 50 1 by 10: 10, 12, and 14 feet 30. 50 16 feet 34. 00 18 and 20 feet 34.00 1 by 12 : 12 feet 33. 50 10 and 14 feet 31. 00 16 feet 35.00 18 and 20 feet 35. 00 5/4 and 6/4, add $2 to price of boards same width. XO. 2 BOARDS. 1 by 6, 8 to 18, rough or SIS $28. 00 1 by 8, 8 to 18, rough or SIS 29. 00 1 by 10, 8 to 18, rough or SIS 29. 50 1 by 12, 8 to 18, rougher SIS 29. 50 NO. 3 BOARDS. 1 bv 6 to 12, 8 to 18 feet, rough or SIS $25. 00 GOVERIfMENT REGULATIONS EELATIiTG TO PRICES. 781 LOG EUN BOARDS. 1 by 4, 8 to 16, rough or SIS $25. 00 1 by 6 to 12, 8, rough or SIS 26. 00 1 by 6 to 12, 10, rough or SIS—— 29. 00 DRESSED AND MATCHED BOARDS. 1 by 4, 8 to 16 feet (25 per cent, 10 feet), No. 1 $30.00 1 by 6, 10 feet, No. 1 29. 00 1 bv 6, 10 to 16 feet (25 per cent, 10 feet). No. 1 32.00 1 by 6, 8 to 18 feet. No. 2 29. 00 1 by 8, 8 to 18 feet, No. 2 29. 00 ROOFING LATH. 1 by 2, 1 bv 21, and 1 by 3, 10 to 16 feet $34.00 PRICES FOR WORKING LUMBER. (Per M feet.) Saw sizes or SISIE $1.75 Dre.ssing 1 or 2 sides (except L. B. and Nos. 2 and 3 boards) 1.50 Ship-lap or matching (except as specified under D. and M. boards)- 2. 00 Joists worked to flooring, or grooved 2 edges, or dressed 4 sides 2. 00 SPECIAL SIZES. For each inch over 12 inches in width in timber and plank add 50 cents per M; 5 inches, 7 inches, 9 inches, and 11 inches, sawed to order, $1 per M extra. SOUTHERN OR YELLOW PINE. Informal arrangements. — The lumber committee of the Council of National Defense made an informal agreement with the Southern Pine Association on June 13, 1917. This agreement covered items of lumber necessary for the build- ing of cantonments. The average price for the grades required was $20 per thousand board feet. On September 11, 1917, a voluntary reduction of $1 per thousand vras made on 1-inch boards and 50 cents per thousand on 2- inch dimensions. Another reduction of approximately 50 cents per thousand became effective October 10, 1917. A third reduction in November made a total average reduction of $1.65 per thousand board feet. On November 21, 1917, the War Industries Board, upon the recommendation of the lumber committee,^ approved lumber prices for a period up to December 10, 1917. The price then in effect was equivalent to $23.20 per thousand feet mill run. These prices were published on January 28, 1918, by the southern emergency bureau and by the Alabama and Mississippi emergency bureau. No action was then taken by any Government agency until March 21, 1918, when the price-fixing committee decided not to grant an advance in pMce. Dur- ing the period of agreement the prices were fixed to the Government only. In June, 1918, the industry asked for another advance in prices with permis- sion to apply the fixed price to Government purchases only. Mr. Baruch on this occasion stated that " the President was emphatic upon the point that the prices fixed should applj*- both to the Government and to the public, even if the Government had to suffer thereby."^ The price-fixing committee then fixed the price of yellow pine, effective June 15, 1918, at $28 per thousand board feet to both civilian and Government pur- chasers. The new schedules on this basis represented an advance of approxi- mately $4.80 per thousand over the former price lists. Except for minor modifications, these schedules were reviewed again in September, 1918, and remained in force until December 23, 1918, when control ceased. At that time the following notice was sent by the lumber division of the War Industries Board to the southern lumber administrator : Regarding status of unshipped orders entered since June 14, 1918, at the expiration of the present leases, December 23, 1918, Government orders will be subject to rate. negotiation as to prices. Commercial orders entered during the above period at agreed-upon item prices will not be affected.^ 1 Minutes of the War Industries Board, Nov. 21, 1917. * Minute Book V of the price-fixing committee, meeting of June 13, 1918. 8 Federal Trade Information Service, Dec. 23, 1918. 782 HISTORY OF PRICES DURING THE WAR. (Nov. 11, 1917, to June 1.5, 1918.) Government yellow pine or southern pine maximum prices covering States of Missouri, Arkansas, Texas, Oklahoma, Louisiana, Mississippi, Tennessee, and Alabama, and that part of Florida lying west of the cast line of Alabama if continued to the Gulf : B and better rift. B and hotter. No. 1 common No. 2 common. 1 by 3 flooring 1 by 4 floorinj; 1 by flooring 1 by 3 to inches flooring . . . 1 by 4 and 6 indies flooring. § by 4 ceiling ■J by 4 ceiling 1 by G drop siding S44.no 42.00 S32. 00 30. 00 32.50 $2-0. 00 27.00 27.50 28. 00 31.00 31.00 25.00 27. .50 27.00 §19.00 19.00 20.00 19.50 19.50 18.00 19.00 21.00 B and better. 'C No. 1 common. 1 by 4, random lengths 1 by 6 and 8 inches, random lengths . . . 1 by 10, random lengths 1 by 12, random lengths 1 by 4 to 12, raiKiom lengths IJ by 4 to S inches, random lengths li by 10 and 12 inches, random lengths 1 J by 4 to 8 inches, random lengths li by 10 and 12 inches, random lengths 2 by 4 to 8 inches, random lengths 2 by 10 and 12 inches, random lengths . S31.50 33.00 34.00 35.00 33. 00 38. 00 40.00 38.00 40.00 33. 00 40.00 S28. 00 .30.00 31.50 32.00 30.00 831.00 33.00 31.00 3:3.00 The above prices are for S2S finish ; for S4S add 50 cents per thousand feet ; fo specined lengths" add $1 per thousand feet ; for rough deduct 50 cents per thousani feet. Boards. Iby2. 1 by 3. lby4. IbyO. IbyS. 1 by 10. Iby 12. 1 by 4 to 12. No. 1 SI or2S $24.00 19.00 $25. 00 20.00 $23.00 18.00 15.00 $24.00 19.00 15.50 $24.00 20.00 16.00 $24.00 20.00 16.00 $27.00 22.00 16.50 No. 2 SI or 23 No. 3 SI or2S $20. 00 15.50 For 1 inch No. 1 and No. 2 in specified lengths add 50 cents, except 16 feet and $1 ; rough 50 cents less than S2S ; S4S, D. & M. or shiplap add 50 cents to S2S prices. For resawing add $1 per thousand feet. Dimension. 2 by 2 No. 1 common, SISIE . 2 by 3 No. 1 common, SlSlE . 2 by 4 No. 1 common, SlSlE . 2 by 6 No. 1 common, SlSlE . 2 by 8 No. 1 common, SlSlE . 2 by 10 No. 1 common, SlSlE 2 by 12 No. 1 common, SlSlE 2 by 2 No. 2 common, SlSlE . 2 by 3 No. 2 common, SlSlE . 2 by 4 No. 2 common, SlSlE . 2 by 6 No. 2 common, SlSlE . 2 by 8 No. 2 common, SlSlE . 2 by 10 No. 2 common, SlSlE 2 by 12 No. 2 common, SlSlE 10, 18, and 20 • feet. $22. 50 20.00 21. .50 19.00 21.00 21.50 23.00 21.00 18.50 20.00 17.50 19.50 20.00 21.50 12, 14, and 16 feet. S20. 50 19.00 19.50 18.00 19.00 19.50 21.50 19.00 17.50 18.00 16.50 17.50 18.00 20.00 22 and 24 leet. $24. 00 21.50 23.00 20.50 22.50 23.00 24.50 22.50 20.00 21.50 19.00 21.00 21.50 23.00 Random. • $20.50 19.00 19.50 18.00 19.00 19.50 21.50 19.00 17.50 18.00 16.50 17.50 18.00 20.00 No. 3 common, SlSlE, 8 to 20 feet : 2 by 4 and 8 inches, $13 ; 2 by 6, $12.50; 2 by 10, $13.50; 2 by 12, $14. For D. & M. or shiplap add $1 per thousand to SISIB prices ; rough 50 cents less than SlSlE prices; for S4S dimension add 50 cents per thousand to SlSlE prices; for No. 1 dimension over 24 feet add $1 for each 2 feet up to 32 feet. GOVERNMENT REGULATIONS RELATING TO PRICES. 783 10 to 20 20 feet. 22 and 24 feet. 26 feet. 28 feet. 30 feet. 32 feet. 3 by 4 and 4 by 4 3 by 6 to 8 by 8 3 by 10 to 4 by 10 5 by 10 to 10 by 10 The above prices on short and on long leaf rough No.'l. 3 by 12 to 5 by 12 6 by 12 to 12 by 12 2 by 14 to 5 by 14 6 by 14 to 8 by 14 10 by 14 to 14by 14 S20. 00 19.00 23.00 22.00 25.00 24.00 30.00 29.50 29.00 S21. 00 20.00 24.00 23.00 26.00 25.00 31.00 30.50 30.00 S22. 00 21.00 25.00 24.00 27.00 26.00 32.00 31.50 31.00 S23. 00 22.00 26.00 25.00 28.00 27.00 33.00 32.50 32.00 S24. 00 23.00 27.00 26.00 29.00 28.00 34.00 33.50 33.00 S25. 00 24.00 28.00 27.00 30.00 29.00 35.00 34.50 34.00 The above prices are for short-leaf No. 1 common ; for long-leaf timbers No. 1 common i2-inch and 14-inch face add $2 per thousand to prices shown above. For merchantable add $3 per thousand for 10 inches and under. For merchantable add $2 per thousand for 12 inches and over. All prices on the above are based on furnishing rough. For dressing .3-inch plank 4 inches and wider and small timbers up to and including G by 6 add 50 cents per thousand. For dressing 6 by 8 and larger add $1 per thousand. For timbers over 14 inches, add .^3 for each 2 inches above 14 inches ; for timbers over 3^ feet, add $1 for each foot ; for tongue and grooved or shiplapping timbers, add $2 per Thousand for 3 inches and over ; for grooving timbers 5 inches thick or thicker for splines, add .$5 per thousand to above dressed prices ; for grooving timbers 3 and 4 inches thick for splines, add $3 to above dressed prices ; for beveling and outgaging, add $2 per thousand feet. EXPORT PRICES. [Grading as per Gulf coast specifications of 1910.] PRIME. 1-inch random widths and lengths $43. 00 IJ-inch random widths and lengths 48. 00 li-inch random widths and lengths 48. 00 2-inch random widths and lengths 48. 00 GENOA OR RIO PRIME DEALS. 3 to 5 inches thick, 4 to 8 inches wide, 16 feet and up to average 24 feet 27. 00 3 to 5 inches thick, 9 and 10 inches wide, 16 feet and up to average 24' feet 31. 00 3 to 5 inches thick, 11 and 12 inches wide, 16 feet and up to average 24 feet 35. 00 MEEeHANTABLE SAWN TIMBERS. Regular cubic average : 30 cubic $31. 00 32J cubic 32. 50 35 cubic 34. 00 37J cubic 35.00 40 cubic 37. 50 M. C. B. CAR SIDING PATTERN. 1 by 4 and 6 inches, B. and better : 5 feet _. $30. 00 8 or 16 feet 32.00 9 or 18 feet 36. 00 10 or 20 feet 35.00 M. C. B. CAR LINING AND ROOFING PATTERN. 1 by 4 and 6 inche.^^, B. and better, 5 feet or multiples , $33. 00 1 by 4, random lengths, No. 1 27. 00 1 by 6, random lengths. No. 1 27. 50 STANDARD CAR DECKING. 2 by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to 1| $25. 00 21 by 6 and 8 Inches, 9, 10, 18, and 20 feet, dressed to 2i 26. 00 NO. 1 COMMON DIMENSION WORKED TO CAR DECKING. 2 by 6, 9, 10, 18, and 20 feet, dressed to Ig $21.00 2 by 8, 9, 10, 18, and 20 feet, dressed to li 23. 00 For heart-face decking, add $3 per thousand. CAR FRAMING. Long leaf merchantable grade S4S to J-inch scant and cut to length — Up to 8 inches, 20 feet and under $26. 00 10 inches, 20 feet and under 28. 00 12 inches, 20 feet and under 33. 00 14 inches, 20 feet and under 36. 00 784 HISTORY OF PRICES DURING THE WAE. For price on car sills, use timber list ; for price of construction timbers and caps, use timber list ; for 85 to 90 per cent cubical contents heart, add $4 per thousand feet. No. 1 common long-leaf price ; for standard heart with special sap location, add $5 per thousand feet to No. 1 common long-leaf price ; for prices for States of Georgia aiul that part Of Florida lying east of Alabama e&at line if continued to the Gulf, add $1 per thousand to all prices shon'n above. (June 14, 1918.) After considering the information submitted by the Federal Trade Commis- sion as to the cost of manufacturing southern or yellow pine lumber and the information submitted by the representatives of the manufacturers thereof at the hearings held on the 12th, 13th, and 14th of June, 1918, at which their request for a readjustment of prices on their products was heard, the priee- lixing committee appointed by the President has determined, by agreement with the said representatives of the manufacturers of southern or yellow pine lumber, upon the following maximum prices for such lumber. These maximum prices shall not be exceeded on any sales and contracts for sale (for mill ship- ment) made during a period of three months beginning midnight June 14, 1918, either to the public, to the Government, to governments of the nations associated with us in the present war, or the railroads, whether by rail or by water shipment. The prices of all southern or yellow pine lumber in the States of Missouri, Arkansas, Oklahoma, Texas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, and Florida shall not exceed the item prices named in attached li.st, except that in the first three States named above an additional price of $3 per thousand will be allowed on all items of short leaf soft pine C and better finish, casing, base, and jambs. Prices on items not covered by above list shall be priced on basis of nearest comparable item. The usual trade practices shall continue, including cash discounts to be applied to the United States Government purchases as well as all others, except that in commercial transactions where purchasers do not avail themselves of the cash discounts the accounts may be converted into trade acceptances which do not bear interest before maturity. The custom of delivered prices of lumber to purchasers' destination points shall remain unchanged, including the equalization of freight rates. Contracts for the sale of lumber entered into in good faith prior to midnight June 14, 1918, and enforcible at law, will be performed in accordance with their terms, subject, of course, to orders received from the Government which may require priority. It is imperative that, with the least possible disruption of the industry, the vast war needs of the Government, both direct and indirect, for southern or yellow pine lumber be supplied on a fair basis; that an adequate supply and equitable distribution thereof be assured for essential commercial needs; that the movement thereof be facilitated, and that injurious speculation therein be prevented. Therefore the procedure outlined below, by agreement with the representatives of the manufacturers of southern or yellow pine lumber, has been adopted for a period of three months beginning midnight June 14, 1918. The procedure is that each manufacturer of southern or yellow pine lumber shall— (1) Make contracts and accept orders for his product at prices not in excess of the applicable maximum prices, always subject to an option at the appli- cable maximum prices in favor of the United States or the nominee of the War Industries Board. Under this option, which will cover all southern or yellow pine lumber down to time of actual delivery to the purchaser, the War Industries Board, to any extent required, will allocate either to the Govern- GOVEKNMEKT KEGULATIONS RELATING TO PRICES.- 785 nlent or to other essential users. Any balance not so allocated will be released for sale to commercial buyers, but at prices no greater tban tbose determined upon as above set forth. (2) Comply with the directions of the War Industries Board as issued from time to time with reference to filling commercial requirements in the order of their public importance and to furnishing such information and making such reports as may be required. (3) Keep up to the best of his ability the production of southern or yellow pine lumber, so as to insure an adequate supply so long as the war lasts. (4) Neither reduce the scale of wages now being paid nor change funda- mental labor conditions now in force. The Government will apportion the car supply available for lumber and arrange for its transportation, subject to allocation by the War Industries Board as aforesaid, to the end that injury to the industry due to abnormal war-time conditions be neutralized so far as may be. Foreign trade, except to the governments ot nations associated with us In the present war, is not to be affected by this ruling. GOVERNMENT MAXIMUM PRICE LIST. Government yellow pine or southern pine maximum prices, effective midnight June 14 to and including September 14, 1918, covering States of Missouri, Arkansas, Texas, Okla- homa, Louisiana, Mississippi, Tennessee, Georgia, Florida, and Alabama : B and better heart rift. B and better rift. Band l^etter. No.l common. No. 2 common. 1 by 3 flooring 1 J by 3 flooring 1 by 4 flooring 1 J by 4 flooring 1 by 6 flooring 1 by 3 to 6inch flooring 1 by 4 and6 inch flooring i by 4 jelling I by 4ceiling J by 4 oeiling I by 4 partition I by 6 partition 1 by 6 drop' siding Bevelsiding from l-inch stock . . Bevel siding from li-inch stock. S54.00 66.00 52.00 63.00 $48.00 60.00 46.00 67.00 $36.00 48.00 34.00 45.00 36.50 i$34.00 $24. 50 132.00 I'ss.'oo' 24.50 30. 50 32.00 35.00 37.00 39.50 35.(50 25.00 27.50 29.00 30.50 33.00 34.00 36. 50 32.^0 23.00 25.50 25.50 25.00 25.00 22.50 23.50 24.50 26.50 19.00 21.50 1 Denotes grade as per rule on flooring. Add $1 per thousand feet for specified lengths. Finish S2S. Band better. C. No. 1 common. 1 hjA random .". . . . 1 by 6 and 8 inch, random 1 by 10 random 1 by 12 random 1 by 4 to 12 inch random IJ by 4 to8-inchrandom liby 10 and 12 inch random 1.J by 4 to 8 inch random 1-J by 10 and 12 inch random 2 by 4 to 8 inch random 2 by 10 and 12 inch random Molded casing and tese from 1 by 4, 6 and 8 inch stock Molded casing and base from 1 by 5 and 10 inch stock . Jambs from 4/4 stock Jambs from 5/4 and 6/4 stock and 8/4 $35. 50 37.00 38.00 39.00 37.00 42.00 44.00 42.00 44.00 42.00 44.00 43.00 45.00 43.00 48.00 S32. 00 34.00 35.50 36.00 34.00 36.50 38.50 36.50 38.50 The above prices are for S2S finish; for 848 add 50 cents per thousand feet: for specified lengths, addSl per thousand feet; for rough, deduct 50 cents per thousand feet. Note.— C and better shortleaf finish, base, casing, and jambs manufactured in the States of Missouri, Oklahoma, and Arkansas may be sold at $3 per thousand higher than above prices. Moldings : If inch width and smaller, 55 per cent discount ; 1| inches and wider — 50 per cent discount. 125547°— 20 50 786 HISTORY OF PKICES DURHSTG THE WAE. Boards. 1 by 2. lby3. 1 l;>y i. 1 liy 6. 1 by 8. 1 by 10. 1 by 12. lbv4 to 12 No. 1, Si or2S 329.50 24.50 S.30.50 25. 50 828. 50 23. 50 20.50 S29.50 24.50 21.00 S29. 50 25.50 21.50 $29. 50 25.50 21.50 S32. 50 27.50 22.00 No. 2, Slor2S No. 3, Slor2S S25. 50 21.00 No. 4, SI or 2S 15.00 ! 1 For 1 inch No. 1 and No. 2 in specified lengths, add 50 cents, except 16 feet add $1 ; rough, 50 cents less than S2S : S4S, D. and M. or shiplap, add 50 cents to S2S prices, or resawing, add .$1 per thousand. Boards when ordered kiln dried, add $1 per thousand feet. Dimensions 2 by 2, No. 2 by 3, No. 2 by 4, No. 2 by 6, No. 2 by 8, No. 2 by 10, No- 2 by 12, No, 2 by 2, No. 2 by 3, No. 2 by 4, No. 2 by 6, No. 2 by 8, No. 2 by 10, No, 2 by 12, No 2 by 4 bv 2 2 by 6, No. 2 by 10, No 2 by 12, No 1 common, SISIE 1 common, SlSlE 1 common, SlSlE 1 common, SlSlE 1 common, SlSlE , 1 common, SlSlE . 1 common, SlSlE 2 common, SlSlE 2 common, SlSlE 2 common, SlSlE 2common, SlSlE 2 common, SlSlE . 2 common, Si SI E . 2 common, SlSlE :... by 8, No. 3 common, SlSlE (8 to 20 feet) . 3 common, SlSlE (8 to 20 feet) . 3 common, SlSlE (8 to 20 feet) . 3 common, SlSlE (8 to 20 feet) 10, 18, and 20 feet. S26. 50 24.00 25.50 23.00 25.00 25.50 27.00 25.00 22. 50 24.00 21.50 23.50 24.00 25.50 12,14, and 16 feet. S24. 50 23. 00 23. 50 22.00 23.00 23.50 25. 50 23.00 21.50 22.00 20.50 21.50 22.00 24.00 22 and 24 feet. S28. 00 25. 50 27.00 24. .50 26.50 27.00 28.50 26.50 24.00 25. 50 23.00 25. 00 25. 50 27.00 Random. S24. 50 23. 00 23.50 22.00 23.00 23. 50 25. 50 23.00 21.50 22.00 20.50 21.50 22.00 21.00 17.00 13.50 17.50 IS. 00 Dimension when ordered sized 1-ineh scant in thickness and/or/width, add $2 per thousand feet. Dimension when ordered kiln-dried, add $2 per thousand feet. Dimension D. and M. or shiplap, add $1 per thousand to SI SIB prices; rougb, 50 cents loss than SlSlE prices ; S4S, add 50 cents per thousand to SlSlE prices. For No. 1 common, dimension over 24 feet, add $1 for each 2 feet up to 32 feet. Note. — All lumber not over 2 inches thick, when ordered odd or fractional lengths, will invoice as of next longer length in multiple of 2 feet. Timbers. 10 to 20 feet. 22 and 24 feet. 26 feet. 28 feet. 30 feet. 32 feet. 3 by 4 and 4 by 4... 3by GtoSby 8 3 by 10 to 4 by 10... 5by 10 to 10 by 10., 3by 12to5byl2... 6 by 12 to 12 by 12.. 3by 14 to 5 by 14... 6 by 14 to 8 by 14... lOby 14tol4by 14 S25. 00 24.00 28.00 27.00 30.00 29.00 35.00 34.50 34.00 S2C. 00 25.00 29.00- 28.00 31.00 30.00 36.00 35.50 35.00 S27. 00 26.00 30.00 29.00 32.00 31.00 37.00 36.50 30.00 S28. 00 27.00 31.00 30.00 33.00 32.00 38.00 37.50 37.00 S29. 00 28. 00 32.00 31.00 34.00 33.00 39.00 38.50 3S.00 S30. 00 20.09 33.00 32.00 35. 00 34.00 40.00 39.50 39.00 Add for plank 2 inches thick, cut full size, $1 per thousand to list of 3 inches of same width or over. Add for timbers 14 inches $3 for each 2 inches over 14 inches. All for timbers over 32 feet $1 for each foot over 32 feet. Prices above are for short-leaf No. 1 common rough ; for better qualities and various working apply the following differentials : For long leaf No. 1 common add $2 per thousand feet. For merchantable 10 inches and smaller add $3 per thousand to No. 1 long-leaf price. For merchantable 12 inches and larger add .$2 per thousand to No. 1 long-leaf price. For prime rule of 1905 add $5 to No. 1 long-leaf price. For 85 to 00 per cent cubical contents heart, 12 inches and under, add to No. 1 common long leaf ii;3 per thousand. For 85 to 90 per cent cubical contents heart, 14 inches and under, add to No. 1 common long leaf $3.50 per thousand. For 85 to 90 per cent cubical contents Heart, 16 inches and under, add to No. 1 com- mon long leaf $4.50 per thousand. For 85 to 90 per cent facial area heart, 12 inches and under, add to No. 1 common long leaf $5 per thousand. GOVERNMENT EEGULATIONS RELATING TO PRICES. 787 For 85 to 90 per cent facial area heart, 14 inches and under, add to No. 1 common long leaf $5.50 per thousand. For 85 to 90 per cent facial area heart, . 16 inches and under, add to No. 1 commou long leaf $6.50 per thousand. For all heart timbers 12 inches and under add to No. 1 common long leaf $7 per thousand. For all heart timbers 14 inches and under add to No. 1 commooi long leaf $8 per thousand. For all heart timbers 16 inches and under add to No. 1 common long leaf $10 per thousand. For standard heart timbers 12 inches and under add to No. 1 common long leaf $4 per thousand. For standard heart timbers 14 inches and under add to No. 1 common long leaf $5.50 per thousand. For standard heart timber.'? 16 inches and under add to No. 1 common long leaf $6.50. For heart face, one face only, 12 inches and under, add to No. 1 common long leaf $4.50 per thousand. For heart face, one face only, 14 inches and under, add to No. 1 common long leaf $5 per thousand. For heart face, one face only, 16 inches and under, add to No. 1 common long leaf $6 per thousand. Add for dressing $1 per thousand feet. Add for tongue and groove or shiplap $2 per thousand feet. Add for grooving $3 per thousand to dressed price stock 3 inches and 4 inches thick. Add for grooving ,|5 per thousand to dressed price stock 5 inches and thicker. Add for beveling and outgauging $2 per thousand feet to dressed prices. Note. — All timber when ordered in odd or fractional lengths, will invoice as of next longer length a multiple of 2 feet. Add $1 to list when ordered cut on fractional sizes. Prices on fractional sizes will be determined as follows : Sizes containing fractions under one-half inch shall take price of nest smaller size listed. Sizes containing fractious half inch or greater shall take price of next larger size listed. For examples : 5i by 8J inches will take price of 6 by 8 plus $1. 5i by 81 inches will take price of 6 by 10 plus $1. Ship decking, United States Navy specifications No. 39 P. I. B. : 4i by 4i and smaller when not more than 1 inch off square $100. 00 S| by 5i and smaller when difference between thickness and width is over 1 inch 116. 00 EXPORT PRICES. [Grading as per Gulf coast specifications of 1910.] 1-inch random v/idths and lengths $47. 00 IJ-inch random widths and lengths 52. 00 IJ-inch random widths and lengths 52. 00 2-inch random widths and lengths 52. 00 CEXOA OK RIO PRIME' DEALS. 3 to 5 inches thick, 4 to 8 inches wide, 16 feet and up, to average 24 feet $32. 00 ?. to 5 inches thick, 9 to 10 inches wide, 16 feet and. up, to average 24 feet 36. 00 3 to 5 inches thick, 11 and 12 inches wide, 16 feet and up, to average 24 feet 40. 00 MERCHANTABLE SAWX TIMBERS. Regular cubic average : 80 cubic 1 $33. 50 32J cubic •_ 35. 00 35 cubic 86. 50 37J cubic 38. 00 40 cubic 40. 00 Note. — The southern .yellow pine maximum Government price list for the period from midnight September 23 to and including December 23, 1918, was the same as the preceding price list except in the following particulars : Under No. 2 common : 1 by 3 flooring is changed to $26 ; 1 by 4 flooring, $25 ; 1 by 6 flooring, $26 ; .| by 4 partition, $26 ; and 1 by 6 partition, $27. For air-dried flooring $1 per thousand feet is deducted. The following prices for No. 2 common are added: IJ by 4 to 8 inches, random, $31; IJ by 10 and 12 inches, random, $33 ; 15 by 4 to 8 inches, random, $31 ; li by 10 and 12 inches, random, $33. Under " Boards " a price for No. 2, SI or 2S, is omitted. Under " Dimension " the price for 2 by 2, No. 2 common, SISIE is increased to $26. For merchantable long leaf 10 inches and under wide $3 per thousand feet is added, and $2 per thousand feet is added for merchantable long leaf 12 inches and over wide. The note under " Timbers " in the preceding list reading "Add for plank 2 inches thick, cut full size, $1 per thousand, to list at 3 Inches of same width or over," is omitted from this later list. A price is added of $3.65 for No. 1 standard yellow pine lath, and $2.65 for No. 2 standard yellow pine lath. 788 HISTORY OF PRICES DURING THE WAR. RAILROAD AND CAR MATERIAL. Oovernment yellow pine or southern yellow pine maximmn prices are effective mid- night June 14 to and including September 14, 1918, covering States of Missouri, Arkansas, Texas, Oklahoma, Louisiana, Slississippi, Tennessee, Georgia, Florida, and Alabama : FLOORING, CEILING, AND DROP SIDING, WORKED STANDARD PATTERNS. Length 8 to 20 feet.' B and better, heart rift Band better, rift. B and better. No. 1. No. 2. 1 by 3 flooring IJ by 4 flooring 1 by 4 flooring 1} by 4 flooring 1 by" ti flooring 1 by 3 to inch flooring. 1 by 4 to fi inch flooring. g by 4 ceiling f by 4 ceiling H by 4 ceiling 1 J by 4 ceiling 3 hy 4 partition 5 by partition 1 by 6 drop siding $54.00 66. 00 52. 00 63.00 SiS. 00 60. 00 46.00 57.00 $36.00 48.00 34.00 45. 00 36. 50 $34.00 $24.50 32.00 24.60 33.00 32.00 35.00 40.00 47.00 37.00 39.50 35.00 30.50 33.00 37.00 43.00 34.00 36.50 32.50 25.50 25.00 25.00 23.50 24.50 27.50 30.50 26.50 1 Add $1 per thousand feet for specified lengths. ROUGH BOARDS AND FINISH RANDOM LENGTHS.i lby2 Iby3 Iby4 Iby6 IhyS IbylO. Ibyl2 1 J by 4 to 8 inches IV by 10 and 12 inches U by 4 to 8 inches l| by 10 and 12 inches l| by 4 to 8 inches IJ by 10 and 12 inches 2 by 4 to 8 inches 2 by 10 and 12 inches. B and better.2 $36. 00 37.50 35.00 36.50 36.50 37.50 38.50 41.50 43. 50 41.50 43. 50 . 41.50 43.50 41.50 43.50 'C."3 $32. 50 34.50 31.50 33.50 33.50 35.00 35.50 No. 1 common. No. 2 common.' $24. 00 25. 00 23. 00 24.00 25.00 25.00 27.00 (0 No. 3 common. $20. 50 20.50 21.00 21.00 21.50 (5) No. 4 common. $14. 50 14.50 14.50 14.50 14.50 1 In all grades for widths exceeding 12 inches, including 16 inches, add $3 for each 2 inches or fraction thereof. 2 In grades B and better and "C" for specified lengths up to 20 feet add $1. s In grades B and better, "C," Nos. 1 and 2 common for 22 and.24 feet add $2. < In grades No. 1 and No. 2 common for specified lengths up to 20 feet, except 16 feet, add 50 cents a thou- sand; for 16 feet add $1. , 6 For 1-inch common stock ordered kiln dried add $1. ROUGH PLANK AND DIMENSION.i 12, 14, and 10, 18, and 16 feet. 1 20 feet. 22 and 242 feet. Random. 2 by 2, No. 1 common . 2 by 3, No. 1 common. 2 by 4, No. 1 common . 2 by 6, No. 1 common. 2 by 8, No. 1 common. 2 by 10, No. 1 common 2 by 12, No. 1 common 2 by 2, No. 2 common . 2 by 3, No. 2 common. 2 by 4, No. 2 common. 2 by 6, No. 2 common . 2 by 8 , No 2 common . 2 by 10, No. 2 common 2 by 12, No. 2 common .$24.00 22.50 23.00 21.50 22.50 23. 00 25.00 22.50 21.00 21.50 20.00 21.00 21.50 23.60 $26. 00 23.60 25.00 22.50 24.50 25.00 26.50 24.50 22.00 23.50 21.00 23.00 23.60 25.00 $27. 60 25.00 26.00 24.00 26.00 26.50 28.00 26.00 23. 50 26.00 22.50 24.50 26.00 26.50 324.00 22.50 23.00 21.50 22.60 23.00 25.00 22.60 21.00 21.50 20.00 21.00 21.50 23.50 1 For 2-inch stock ordered kiln dried add $2. 2 For lengths over 24 feet add $1 for each 2 feet up to and including 32 feet. GOVEENMBNT EEGULATIOjSTS EELATIIsTG TO PRICES. 789 CAR SIDING, LINING AND ROOFING WORKED TO M. C, B. PATTERN.i 1 by 4 B and better . . 1 by 6 B and better . . 1 by 4, No. 1 common 1 by 6, No. 1 common 1 by 4, No. 2 common 1 by 6, No. 2 common 5 feet. 8 feet. $36.00 36.00 31.00 31.00 27.50 27.50 S35.00 35.00 30.00 30.00 27.50 27.50 9 feet. $39.00 39.00 34.00 34.00 27. .50 27.50 10 feet. S38.00 38.00 33.00 33.00 27.50 27.50 12 feet. S37.00 37.00 32.00 32.00 27.50 27.50 Random lengths lining. 834.00 36.50 32.50 33.00 24.50 25.50 I In car lining for specified lengths add SI per M feet. STANDARD GRADE CAR DECKING. 2 by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to If inches S29.00 2h by 6 and 8 inches, 9, 10, 18, and 20 feet, dressed to2J inches 30.00 3 by 6 and 8 inches, 9, 10, 19, and 20 feet, dressed to25 inches 30.00 NO. 1 COMMON CAR DECKING,i DRESSED AND MATCHED OR SHIPLAPPED TO M. C. B. PATTERN. 9 feet. 9 feet 6 inches. 10 feet. 2 by 6 and 8 inches I S26. 00 2 by 10 inches. 2| by 6 and 8 inches . 2|by 10 inches , 3 by 6 and 8 inches . . 3 by 10 inches 28.50 27.00 31.00 26.00 30.00 S27. 50 30.00 28.50 32.50 27.50 31.50 S26.00 28.50 27.00 31.00 26.00 30.00 1 For heart faced decking, 6 and 8 inches, add S3; for 10 inches add S4. CAR FRAMING, LONGLEAF SQUAHE AND SOUND GRADES S4S TO i-INCH SCANT AND CUT TO LENGTH. LTp to 8 inches , 20 feet and imder §29. 00 10 inches , 20 feet and imder 32. 00 12 inches , 20 feet and under [ 34. oo 14 inches, 20 feet and under [ 39. 00 CAR SILLS. For price on car sills use timber list. ROUGH PLANK AND TIMBERS, NO, 1 COMMON, CUT TO FULL SIZE.i 10 to 20 feet. 22 and 24 feet. 26 feet. 28 fe«t. 30 feet. 32 feet. 2by2 2 by 3 2by4 2by6 2by8 2byl0 2byl2 3by 4to4bv4 3by 6to8by8 3 by 10 to 4 bv 10.... 5by 10 to 10 by 10... 3 by 12 to 5 by 12.... 6 by 12 to 12 by 12... 3 by 12 to 5 by 14 2 . . 6by 14 to 8 by 142.. 10 by 14 to 14 by 14 2 S27.00 26.00 26.00 25.00 25.00 29.00 31.00 25.00 24.00 28.00 27.00 30.00 29.00 35. 00 34.50 34.00 $28. 00 27.00 27.00 26.00 26.00 30.00 32.00 26.00 25.00 29.00 28.00 31.00 30.00 36.00 35.50 35.00 S29.00 28.00 28.00 27.00 27.00 31.00 33.00 27.00 26.00 30.00 29.00 32.00 31.00 37.00 36.50 36.00 830.00 29.00 29.00 28.00 28.00 32.00 34.00 28.00 27.00 31.00 30.00 33.00 32.00 38.00 37.50 37.00 831.00 30.00 30.00 29.00 29.00 33.00 35.00 29.00 28.00 32.00 31.00 34.00 33.00 39.00 38.50 38.00 $32.00 31.00 31.00 30.00 30.00 34.00 36.00 30.00 29.00 as. 00 32.00 35.00 34.00 40.00 39.50 39.00 i For timbers over 32 feet add $1 for each additional foot in length over 32 feet. » For timbers over 14 iaches in width, add S3 for each 2 inches or fraction thereof. 790 HISTORY OF PRICES DURING THE WAE. GENERAL EXCEPTIONS. [Add to foregoing prices per 1.000 feet b. m.] Amount to be added. In No. 1 common plank and timbers for long leaf ^2. 00 Add to No. 1 common long leaf for following grades : For sound and square edge j.OO For standard interstate rules, 1905, same as No. 1 long leaf. For merchantable, 1905, 10 inches and under 3. 00 For merchantable, 1905. 12 inches and under 2.00 For prime interstate rules, 1905 5. 00 For 85 to 90 per cent cubical contents 12 inches and under 3. 00 For 85 to 90 per cent cubical contents 14 inches and under 3. 50 For 85 to 90 per cent cubical contents 16 inches and under 4. 50 For heart face, 1 face only. 12 inches and under 4.50 For heart face, 1 face only, 14 inches and under 5. 00 For heart face, 1 face only, 16 inches and under 6. 00 For 75 per cent heart-girth measurement 12 inches and under 3. 50 For 75 per cent heart-girth measurement 14 Inches and under 4. 50 For 75 per cent heart-girth measurement 16 inches and under 5. 50 For standard heart grade 12 inches and under 4. 00 For standard heart grade 14 inches and under 5. 50 For standard heart grade 16 inches and under 6. 50 For 85 to 90 per cent facial-area heart 12 inches and under 5. 00 For 85 to 90 per cent facial-area heart 14 inches and under 5. 50 For 85 to 90 per cent facial-area heart 16 inches and under 6. 50 For all heart 12 inches and under ; 7. 00 For all heart 14 inches and under 8. 00 For all heart 16 inches and under 10. 00 For surfacing add- SlSor2S. SISIE. S4S. S2S and T. and G. Grooved for splines. For linch or less For 2 inches or less . . . For 3 inches or less. . . For 4 inches or less . . . For 5 inches or less . . . For 6 inches or larger. SO. 50 1.00 1.00 1.00 1.00 SO. 50 .50 1.00 1.00 1.00 1.00 $1.00 1.00 1.00 1.00 1.00 1.00 SI. 00 1.50 2.00 2.00 2.00 S4.00 4.00 4.00 6.00 6.00 Invoices shall be based on actual board-foot contents of the rough size and length ordered, except that thickness under 1 inch shall be based on 1 inch. When stock ordered cut to odd length sufficient amount should be added to price of next longer even length to cover waste in cutting into odd lengths. Pieces ordered larger at one end than at the other, or wider on one side than the other. «hall be computed as of the larger end or wider side. All sizes which include fractions under one-half inch shall take the same price as the next lower inch listed. Sizes which include fractions one-half inch or over shall "take the same price as the next higher inch listed. Example : 5i by 8.? would take the price of 5 by 10 inches. Add $1 to list vfhen ordered to cut on fractional size. Lengths which include odd inches shall take the same base price as .the next longer length listed, with allowance for odd lengths added (see general exceptions). Example: 41 by S^j. 28 feet 6 inches, would take the base price of 4 by 10, 30 feet, to which woiild he added the allowance for odd lengths. WESTERN SPRUCE. At a conference of spruce manufacturers of Washington and Oregon and representatives of the Signal Corps of the United States Army, Aircraft Pro- duction Board, the British, French, and Italian commissions, and the lumber committee of the Council of National Defense, held in July, 1917, the spruce manufacturers agreed to furnish aircraft spruce of specified quality and size during the remainder of the year at $105 per thousand board feet. On April 10, 1918, the spruce production division of the Signal Corps, United States Army, issued a new schedule of prices for western spruce and Port Orford cedar airplane material. The prices for "A" wing beam stock of western spruce and Port Orford cedar was set at $175 per thousand board feet f. o. b. mill ; " B " long clears at $80 per thousand board feet f. o. b. mill ; and " C " short and thin clears at $45 per thousand board feet f. o. b. mill. The price for western spruce cants for aircraft material, grade 1, was set at $90 per thousand board feet f. o. b. mill; grade 2, $50 per thousand feet f. o. b. mill. These prices remained in effect throughout the remainder of the year. GOVERNMENT REGULATIONS RELATING TO PRICES. 791 TREENAILS. The first control of the price of treenails was exercised by the Emergency Fleet Corporation in the adoption of the schedule of prices of April 1, 1918. This schedule was revised on July 11, 1918, and on July 31, 1918. The first revision allowed an increase in prices of 30 per cent and the second one of 20 per cent, to be retroactive through July 12, 1918. On November 22, 1918, again, the schedule of July 31, 1918, was indefinitely extended without change.^ [Prices per thousand pieces f. o. b. sMpping points fixed for black or yellow locust square treenails, pur- chased in li-incii squares cut fj to J inch full for use in Government hulls, inspections at cars.] APRIL 1, 1918. nspections at cars. EFFECTIVE .JULY 12, 1918.2 Lengths. Prices. Lengths. Prices. Indies. Inches. 10 S17. 50 32 $67. 75 12 2L25 34 74.50 14 25.00 36 81.25 16 29.00 38 88.50 18 33.00 40 96.00 20 37.00 42 105. 75 22 41.50 44 116. 25 24 46.25 46 127.00 26 51.25 48 138. 25 28 56.25 50 150. 00 30 61. 50 Prices l-J- Prices 1 J Lengths. inch Lengths. inch , squares. squares. I-nches. Inches. 10 $20. 70 32 S105. 60 12 25.20 34 116. 40 14 29.70 36 ■ 127. 20 16 34.20 38 138. 00 18 38.70 40 150. 00 20 43.20 42 164.40 22 48.60 44 181.20 24 72.00 46 1-98.00 26 80.40 48 216. 00 28 87.60 50 234. 00 30 96.00 1 Memorandum from the supply and sales division of the Emergency Fleet Corporation. 2 This schedule was adopted on July 31, 1918, but was made retroactive to July 12, 191S. Note.— Allowance for turning is $10 per 1,000 pieces if single drift or $15 if double drift. Price for 1| inch squares is S6 per thousand pieces less than those shewn above. Intermediate lengths at average of next highest and next lowest. 8. BUILDING MATERIALS. Price control was exercised over the following building materials, other than hiniber : Brick, gypsum wall board, gj'psum plaster board, hollow building tile, millwork, Portland cement, sand, gravel and crushed stone. The prices here scheduled applied only to Government purchases.' BRICK. The following schedule showing the prices of brick fixed by the price-fixing committee was issued on February 26, 1919 : No. Districts. Hard- burned brick. Light- burned or salmon brick. Period covered. Metropolitan, New York Do Pliiladelphia, Pa Do Washington, D. C.a Do Baltimore, Md Do New England States New York east of Meehanicsville. New Jersey north of Trenton Long Island, N. Y Virginia ^ Part of North Carolina s. Southern States * Western Pennsj'^lvania ^. Ohio 6 Illinois Mansfield , Ark Cofiey ville, Kans Tucson , Ariz St. Louis, Mo Chicago, 111 Per M. $11.50 12.50 16.50 17.50 14.00 15.00 15.00 16.00 17.50 12. 50 16. 50 13.50 Per M. $9.50 10.50 14.50 15.50 12.00 13.00 13.00 14.00 15.50 10.50 14.50 11.50 July 1, Nov.l Julyl, Nov. 1 Julyl, Nov.l Julyl, Nov. 1 1918,toOct. 31, 191S. , 1918, to Nov. 30, 1918. 1918, to Oct. 31,1918. 1918,toJan. 31, 1919. 1918,to Oct. 31,1918. ,1918, to Jan. 31, 1919. ,1918, to Oct. 31, 1918. , 1918, to Jan. 31, 1919. Covering all allocations at tenta- tive prices between ixiiy 1, 1918, and Feb. 27, 1919. 16.00 16.00 14.00 15.50 13.50 15.00 13.03 12.00 10.0 J 14.00 12.00 16.50 14.59 11.00 9.00 '14.50 '14.50 1 See report of Mr. Richard L. Humphrey, director of the building materials division of the War In- *^" Mclflxldlin face common brick, $16, July 1, 1918, to Oct. 31, 1918. Price fixed on face common brick 817 Nov. 1, 1918, to Jan. 31, 1919. ^ ^ . • j- -j i i * 3 'Brick costs m group No. 5 varied so greatly that it was necessary to fix prices on mdividual plants Prices on hard brick range from $11 to $16; prices on light-burned or salmon brick range from $9 to $14. 4 Brick costs in group No. 6 varied so greatly that it was necessary to fix prices on mamdual plants, Prices on hard brick raSge from $10.50 to $18; prices on light-burned or salmon brick range from $8.50 to$13, 6 Except one plant, Johnsonbiu-g, Pa., $18.42 for hard brick. ,,.,,, , i i, -^i ExceSt one nlant Spruig Wells, Mich., $14.50 for hard brick and $12.50 for light-burned or salmon brick The S are KeVTbrick, . 0. b. car's, trucks, or barges at plants; an addit oual of $2 per M was al lowed 4ere brick had to be trucked outside of the plant to the marest railroad sidmg or where deli^^ over rail at dock. They are based on not less than 75 per cent hard-burned brick nor more than 25 per cent light-burned or salmon brick. ' Sand lime brick. 792 GOVERNMENT REGULATIONS RELATING TO PRICES. 793 GYPSUM WALL BOARD AND PLASTER BOARD. Pending the establishment of fixed prices, all orders were allocated at tenta- tive prices. On February 27, 1919, the price-fixing committee established the following maximum prices, applicable to purchases at tentative prices made by Govern- ment agencies during the year 1918. IGYPSULI WALL BOARD. Prices on f-inch thick, 32 and 48 inches wide, and of varying lengths, for four firms, among whom the orders w^ere allocated at $22 and $23.^ GYPSUM PLASTER BOAKD. Prices on |-inch thick, 32 and 36 inches wide, and varying lengths, allocated among 10 firms at prices ranging from $18 to $28.' The price for f^-inch plaster board was $1 per thousand square feet less than for the f-inch. HOLLOW BUILDING TILE. Prices of hollow building tile were first fixed for the period ending July 1, 1918, and were advanced slightly for the period from July 1, 1918, to January 1, 1919. JULY 25, 1918. At a meeting of the price-fixing committee of the War Industries Board, Thursday, July 25, 1918, the following prices for hollow building tile were fixed for Government purchases made on the tentative basis prior to July 1, 1918: Per ton. Perth Amboy, N. J $9-00 St. Marys, Pa 7.20 Canton, Ohio 6. 75 Terre Haute, Ind 6.75 Louisville, Ky 8. 10 Birmingham, Ala 8. 55 Mason City, Iowa — 7. 20 CofEeyville, Kans — 7. 20 The following tentative prices for Government purchases, made prior to July 1, 1918, are to be subject to final action by the price-fixing committee upon presentation of additional data by the Federal Trade Commission : Per ton. Elmendorf, Tex $10. 00 Athens, Tex 10. 00 Salt Lake City, Utah 10.00 Los Angeles, Calif 10. 00 Lincoln, Califs 10. 00 Seattle, Wash 10.00 1 Prices were per thousand square feet f. o. b. ears at the plants of the companies named. 794 HISTORY OF PEICES DURING THE WAR. I>ECEMBEE 7, It) IS. At a meeting of the price-fixing committee of the War Industries Board, Saturday, December 7, 391S, the following prices on liollow building tile w^re fixed for Government purchases made during the period from July 1, 1918, to January 1, 1919 : Per ton. Perth Amboy, N. J $9. 7^^ St. Marys, Pa 7.95 Canton, Ohio 7. 50 Terre Haute, Ind 8.00 Lotiisville, Ky 8. 10 Birmingham, Ala 8. .55 Mason City, Iowa 7.20 Coffevville, Kans 7. 20 Elmendorf, Tex 11. 00 Athens, Tex 1 11. 00 Salt Lake City, Utah 10. -00 Los Angeles, Calif L lO./OO Lincoln, Calif 10. 00 Seattle, Wash 10. 00 The above prices are based upon standard, scored commercial kihi run tile, meeting the requirements of the attached specification. If smooth or face tile is required, there will be an additional allowance of $1 per ton. If salt-glazed tile is required, there will be an allowance of $1.50 per ton. If jamb tile is required, there will be an additional, allowance of $2 per ton on the same weight basis as the same full size ordinary tile. Fractional portions of ordinary tile shall carry the same ratio of price of such tile as that of the fraction represented. On the above basis, at the points named f. o. b. cars plant with present rates of freight added, destination prices will be figured subject to increases in accordance with any increase which may be made in freight rates. Freight charges are to be paid by th« purchaser and shipments must be consigned to a Government officer, or if consigned to other than a Government officer, must be accompanied by a certificate (Form 750) signed by a Government officer stating that the tile is for Government use and that any saving Avili accrue to the benefit of the Government, otherwise the purchaser must also pay the war tax on the freight charges. Shipments are to be made freight collect, and for convenience in billing invoices will be rendered on the basis of the above- named prices plus the current freight rate. In payment of the account, the freight charges paid by the Government departments or their contractors wiU be deducted from the total amount of the invoices. When shipments are re- quired freight prepaid. Form 750, furnished by the Commissioner of lutemal Ptevenue, must be signed by the officer in charge of the work in question, and forwarded to the shipping company witli the order, who will file this certificate with the railroad company at the time the first shipment is made on the order. PARTITION TILE. Basing weight (potmds). Cells. Standard weight. Mininram weigbt. 16 (4 by 12 by 12) 3 3 16 22 15 22 (6 by 12 by 12) ". 21 BACK OF TILE. 14(5by8byl2) 16 9 15 8 (4 by 5 by 12) 8 HEAVY-DUTY TILE. 28 (6 by 12 by 12) 3 6 6 28 36 48 26 36 (8 by 12 by 12) 34 54 (12 by 12 by 12) 46 GOVERNMENT REGULATIONS REDATING TO PRICES. 795 The number of cells and weight shown represent the average commercial practice and there shall he no objection to a manufacturer furnishing a larger number of cells or heavier tile to meet his local conditions. The standard weights, as shown, represent the average weight of the tile to be furnished but tile of minimum weight, as shown, shall be accepted, it being understood that this variation is necessary due to wear and renewal of dies. The basing weights, as shown, are for use in reaching prices per thousand pieces on each size, as shown, in connection with the tentative building prices ; also final prices when fixed. Some variations have been made from actual and average weight to allow differences in cost of manufacturing the various sizes as determined by the custom and experience of the trade. All tile to be furnished under these specifications shall pass the following test requirements for absorption : Not less than three test specimens shall be dried at a temperature of approxi- mately 212° Fahrenheit until by weighing and reweighing the weight remains constant. They shall then be continuously immersed in clear water for a period of 48 hours with only the upper surface of the tile exposed to the air. Upon being removed from the water they shall be allowed to drain for a period of not more than one minute and the superficial water removed by a towel or similar means, and the test specimen shall then be weighed. The ab- sorption thus obtained shall not exceed an average of 10 per cent of the weight of the tile when dried. The tile to be furnished is to be commercial tile ; that is, it includes tile which are somewhat cracked, v/arped, and broken, not affecting the usefulness of the tile. Inspection is to be made at the factory. MILLWORK. On December 2, 1918, the price-fixing committee approved prices recom- mended by the director of the building-materials division toy all orders placedE during the month of December and expiring December, 31, 1918.* The schedules follow : MILLWORK. December 1, 1918, to January 1, 1919. GLAZED WINDOWS AND SASH. Wood : White pine, oil primed, or yellow pine. Glass: S. S. B. Layout : Regular western openings. Windows : 9 by 12 by li inches, 8 light, Ck. rail _ $1. 67 10 by 12 by 11 inches, 8 light, Ck. rail 1. 69 9 by 12 bv If inches, 12 light, Ck. rail 2.10 9 by 13 bv H inches, 12 light, Ck. rail 2. 34 10 by 12 by li inches, 12 light, Ck. rail — 2. 19 10 by 14 by li inches, 12 light. Ck. rail 2.46 10 by 15 by 1§ inches, 12 light; Ck. rail 2. 73 10 by 16 by li inches, 12 light, Ck. rail 2. 88 10 by 18 by li inches, 12 light, Ck. rail 3. 28 Sash : 10 by 12 by Ig inches, 4 light ; : •— - 9f> 10 by 12 by li inches, 6 light , 1. 22 10 by 14 by Ig inches, 4 light . 1.05 10 by 14 by H inches, 6 light 1.34 10 by 15 by Ig inches, 4 light 1. 19 10 by 15 by 11 inches, 6 light 1.40 10 by 16 by li inches, 6 light ^ 1.50 10 by 12 by li inches, 12 light, heavy center bar 2. o9 10 by 14 by 11 inches, 12 light, heavy center bar 2. 64 10 by 15 by li inches, 12 light, heavy center bar 2.87 10 by 16 by 11 inches, 12 light, heavy center bar 3. 03 Cellar sash : 8 by 10 by Ig inches, 2 light, 1/9 by 1/3 .56 9 by 12 by li inches, 2 light, 1/11 by 1/5 -62 10 by 12 by If inches, 2 light, 2/1 by 1/5 -65 8 by 10 by H inches, 3 lights, 2/4 by 1/3 .67 9 by 12 by 1| inches, 3 lights, 2/7 by 1/5 • 75 10 by 12 by IS inches, 3 lights, 2/10 by 1/5 .80 1 Price-Fixing Committee, Minute Book XI, Dec. 2, 1918. 796 HISTOKY OF PRICES DURING THE WAR. Transoms : 2/6 by 1/2 by 11 inches, 1 light $0.07 2/8 by 1/2 by Ig inches, 1 light .72 2/10 by 1/2 by Ig inches, 1 light - 73 3/0 by 1/2 by 13 inches, 1 light - ! 76 3/4 by 1/2 by Ig inches, 3 lights wide 1.49 2/4 by 1/10 by Ig inches, 2 lights wide .94 2/6 by 1/10 by Ig inches, 2 lights wide 1. 05 2/8 by 1/10 by Ig inches, 3 lights wide ^ 1. 10 3/0 by 1/10 by Ig inches, 3 lights wide 1. 16 3/4 by 1/10 by Ig inches, 3 lights wide 1.49 4/8 by 1/10 by Ig inches, 5 lights wide 1. 88 5/0 by 1/10 by Ig inches, 5 lights wide 2. 08 5/4 bv 1/10 by Ig inches, 5 lights wide 2. 19 6/0 bv 1/10 bv Ig inches, 6 lights wide 2. 32 6/8 by 1/10 by Ig inches, 6 lights wide 2. 99 2/8 by 2/0 bv Ig inches, 3 lights wide 1.16 2/10 bv 2/0 bv Ig inches, 3 lights wide 1. 30 3/0 by 2/0 by Ig inches, 3 lights wide 1.38 3/4 bv 2/0 bv Ig inches, 3 lights wide 1. 74 4/8 bv 2/0 by Ig inches, 5 lights wide 2.04 5/0 by 2/0 by Ig inches, 5 lights wide 2. 27 5/4 bv 2/0 by Ig inches, 5 lights wide 2. 28 0/0 bv 2/0 by Ig inches, 6 lights wide 2.75 6/8 by 2/0 by Ig inches, 6 lights wide 3. 51 Note. — Other sizes of glazed sash not specified, will take same basis as above, which Is 632 per cent discount from the universal list. Extras. The above prices apply to goods in full-stock quantities for shipment in. carload lots. For less than carload shipments add 10 per cent to cover extra handling. When goods are packed for protection in local shipments packing charges as follows will apply : Net per bundle. rnder 60 united inches, add $0. 25 Over 60 and up to 100, inclusive, add . 50 Over 100 united inches, add 1. 00 Sk.vlight sash, 6/71 by 5/.4i, 3J inches thi^k, 4 lights, 18 by 60, opeiT (in full car- loads), $6.32. PANEL DOORS. Wood : Pine. Layout : May be 4 panel, 5 regular panel, or 5 cross panel. Sticking : May be O. G., B. and C, or C. and B. Panels : Flat or beveled raised. Grade : May be No. 1 and No. 2 mixed, about 80 per cent No. 1. White Yellow pme. piae. S2.09 SI. 88 2.09 1.88 2.15 1.94 2.17 1.96 2.20 1.98 2.50 2.26 2.66 2.40 3.63 3.27 5.31 4.79 2.49 2.24 2.51 2.27 2.56 2.31 2.75 2.48 2/0 by 6/8 by 1-| inches. 2/2 by 6/8 by If inches. 2/4 by 6/8 by If inches., 2/6 by 6/8 by l| inches.. 2/8 by 6/8 by 1-1 inches., 2/10 by 6/8 by If inches, 3/0 by 6/S by li- inches., 3/4by6/S , 8/4 by 6/8 by 1| inches.. 2/Oby 7/0 by If inches.. 2/6by 7/0 by l| inches.. 2/8 by 7/0 by 1 1 inches.. 3/0 by 7/0 by li inches.. Note. — Doors of other sizes will take the same discount it standardized and ordered in quantities. The base discount is: White pine doors, 68f per cent from universal list; yellow pine doors, 10 per cent less. Wide lock rail and cut for Dutch door, add 75 cents net. If 3 foot 4-inch doors are ordered in lots of less than 10, add 20 per cent. If ordered in less than carload orders, 10 per cent advance on all items. Doors with six panels, basis 67i per cent from 5X panel O. G. No. 1 list. Doors made with slat panels, add 50 cents net per panel. GOVERNMENT REGULATIONS RELATING TO PRICES. SASH DOORS. Layout : 3X panel and 2 lights or 2 upright panels and 4 lights. Glazing : S. S. B. Sticking : O. G., B. and C, or C. and B. Panels : Flat or beveled raised. ^ ^ „^ ^ ,vt -, Grade : No. 1 and No. 2 mixed, about 80 per c-ent No. 1. Wood : Pine. 797 2/4 by 6/8 by If inches.. 2/6by6/8by If inches., 2/S by 6/8 by li inches., 2/10 by 6/8 by 1| inches 3/0 by 6/8 by IJ inches. , 3/4 by 6/8 bv If inches. 3/4 by 6/8 by 13 inches. 2/6 by 7/0 by If inches. 2/8 by 7/0 by 1| inches. 3/0 by 7/0 by if inches. White Yellow pme. pme. S3. 22 $3.01 3.22 3.01 3.30 3.08 3.63 3.39 3.85 3.59 4.79 4.42 6.47 6.94 3.63 3.39 3.83 3.58 4.24 3.96 Sash doors other than above : 2/8 by Q/-6 by 1-3/8 inches, 2X panel or 2 upright panels and 6 lights, SSB stops ^ 2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 9 lights, SSB ''tops - 2/8 by 6/6 by 1-3/8 inches, 2X panel or 2 upright panels and 12 lights, SSB stops ' 2/8 by 6/6 by 1-3/8 inch French doors, 18 lights, SSB stops 5. 85 2/8 by 6/6 by 1-3/8 inch French doors, 10 lights, SSB stops 4. 65 The above prices are obtained by using the panel-door basis plus cost of glass and reasonable profit. „ „„^.r.^ BATTEN DOORS. Sizes : 8/0 by 8/0 to 10/0 by 12/0. Construction : Standard detail. Grade : Sound paint quality, mixed woods permitted. Price : Doors with no glass, per square foot, $0.28 ; glazing, add per light 10 by 15 or less, 20 cents; larger sizes, extra price. W. C. DOORS. \ One and one-eighth inches thick, 4X panel, Nos. 1 and 2 ; no lugs : Note. — All foregoing prices apply to goods ordered in full-stock quantities for shipment in carload lots. For less than carload shipments, add 10 per cent to cover extra handling. Packing goods for protection on local shipments : ,, i ..i, o /n t, r -7 /a Panel doors, 3/0 by 7/0 and smaller, add $0.35 net per bundle ; larger than 3/0 hy 7/0, add $0.02 net per square foot S. M. , -,, , 4.1, o /n v, r, /a Sash doors, 3/0 by 7/0 and smallei", add $0.60 net per bundle ; larger than 3/0 by 7/0, add $0.03 net per square foot S. M. HARDWOOD DOORS. Birch cross panel, li inches, 641 per cent discount from the cross panel B. & C. uni- versal list, making a 2/8 by 6/8 door, $2.57. For two-panel doors, add $0.20 net. DOOR FRAMES. All door frames up to and including 2/10 by 6/10 : ■ eo 00 Frame, detail "A," preliminary standard drawings ^^- fJ Frame, detail " B," preliminary standard drawings f *^ Frame, detail " C," preliminary standard drawings f:- io Frame, detail " E," preliminary standard drawings J-. ^o 798 HISTOKY OF PRICES DI/RING THE WAR. SILLS AND SLIDES. Cantonment sills, 26 cents net per piece. Cantonment slides, 17i cents net per piece. Note. — The above prices applv to goods in full stock quantities for shipment in car- load lots. For less than carload" shipments, add 10 per cent to cover extra handling. Trices all apply f. o. b. mills in South or INIiddle West. Prices f. o. b. Pacific coast mills should be lower than this basis, except possibly on glazed windows, but proper differentials have not been worked out for shipments from points east of Chicago or west of Mississippi River. Differentials above mill prices will have to be worked out based on freight costs. ,,„,, " FRAMES. Box window frame.-; for brick. K. D. : 9 by 12, 12 lights, 2/71 by 4/G— Basis ; $86 per 1,000 feet b. m. exposed parts and $75 for unexposed $2. 55 Add for pulleys, $0.24. . . .^. . , .. r. Extra : 15 cents net for putting boxes together, balance K. D. Casement frames, brick wall: 2/0.1 by 3/5i .88 D. C. window frames, t.ype "A" : 2/7J by 4/0 2. 09 Add for pulleys, $0.24. D. C. window frames, type " B '' : 2/71 by 4/6 1. 9G Add for pulleys, $0.24. Cellar fiumes "A": 8 by 10. 6 lig-hts, opening 2/4| by 2/1?; .01 Casement frani'-s, open in "B " : 8 by 10, 6 lights, opening 2/41 by 2/li 1. 44 Casement frames, open out '• C " : 10 by 12. 6 lights, opening 2/04 by 3/51 1- 71 X-^rr: ^ ^ ,. .^.^,„, „„+ <« r» " • nnonirxT. 9/fn u-tr 3/Si 1.37 1.18 square 1/S 3. 07 No wire screens or hinges. ^ ,^ , ^ , , ., „^ Rectansiular louvre frames: 1/2 by 2/4 i. ()0 Louvre frames, peaks : 3/0 by 1/6 ■ ^^ -i-i Casement frames, open out "D": Opening 2/01 by 3/51 Casement frames, for brick, "E": Opening 2/Oi by 3/51__. Louvre frames : Half circle, 2/6 by 1/3 opening, circle 0/S, K. D. WINDOW FRAMES. Special prices for cantonment construction : Quality : Sound mixed woods for paint. Construction : Pulley stiles, fi by 4 ; blind stops, i§ hy 11 ; casing, if by 3i ; sill IJ by 3g ; plain di-ip cap, IS by 11 : mullion, 51. No pockets or pulleys. 10 by 12 to 10 by 15 and 10 by 16, 12 lights, single ^J- ?9 10 by 12 to 10 by 15 and 10 by 16, 12 lights, double 3. 10 10 by 12 to 10 bv 15 and 10 by 16, 12 lights, triple 4. 70 10 by 12 to 10 b'v 15 and 10 by 16, 12 lights, quadruple 6. oO For 1| O. S. casing, add to base price per frame . 15 For pockets and pressed steel pulleys, per frame . .30 For IS sill, per frame • 10 For 5g stud wall, per frame -• • f For 51 jambs for plastered wall, per frame . 10 K. D. OUTSIDE DOOR FRAMES. Jambs, li by 41, not rabbeted ; stops, 1 by 11 S4S ; casing, U by 3| ; no sill. Sizes 2/4 by 6/S to 3/0 by 7/0 K. D $1. 50 For larger sizes, for every 4 inches in width or height, add . 10 For soft-wood sill, add to base price , . 50 For 61 stud wall • ;j'' For transom head 2/0 high or less, add to base price _ . 75 ATI fob. factories in the Middle West. Taking rates to eastern and southern points not in excess of the rates from Oshkosh, Wis., Minneapolis, and Dubuque, Clinton, and Muscatine, Iowa. EXTEAS. The above prices apply to snoods in full stock quantities for shipment in carload lots. For less than carload 'shipments, add 10 per cent to cover extra handling. STAIRS. Plain box stairs, 3/0 wide, K. D. : Strings stuck to match room base. Strings house ^ inch thick. Treads H inches thick, risers If inch thick. No rough horser-i, newels, rails, or balusters, $1.10 per riser. If winders are shown, ligurc same as an extra riser. Open stairs, 3/6 wide, K.D. : Wall string housed I inch thick. Face string cut and mitered, 2 inch thick. Treads IJ inches thick, mitered and arranged for balusters. Nosings fitted, coves loose. Risers (? inch thick) mitered, $1.35 per riser. If winders are shown, figure same as an extra riser. Stflir rail "A" with fillet $0. 125 Stair rail "B" with flUet •- -j—r— • i} Wall rail, Ig inches round (no brackets) per linear foot— .06 Balu«ters as shown detail "C" up* — • Oj Balusters as shown detail "D" do-_ .00 Starting newels, type "F" each_- 1. oO Starting newels, type "G" ao— i- oo GOVEEISTMENT REGULATIONS RELATING TO PRICES. 799 Plain curb string same as for open stairs. Paneled string as shown, $1.65 per riser. Well-hole skirting, figure on molding basis. (Type numbers taken from prelimixiary details.) Prices. above will cover yellow pine or white pine for paint. MOLDINGS. Per 1,000 lellow pine or soft wood for exterior based on finished product : b. m. All moldings worked from 1-inch stock $79. 20 All moldings worked from 1| or li inch stock S.5. SO All moldings worked from 2-inch stock 92. 40 I fardwood moldings: Gum worked from 1-inch stock 93. 50 Calico ash, worked from 1-inch stock 112. 20 Plain oak, worked from 1-inch stock 126. 50 Brown ash, worked from 1-inch stock 126. 50 All moldings using thicker stock will be based at higher prices, according to market prices. Special prices for cantonment constriLction, on lattice i by If inches, 44 cents per 100 linear feet. Porch rails : On molding basis. Porch brackets : Sawn to shape, $100 per 1,000 b. m. Porch panels, 20 cents per square foot, depending upon design. f Interior frames : Inside jambs, based on molding prices plus 21 cents net each for gaining side jambs to receive head. Exterior blinds : IJ inches thick, stationary slats, 28 cents net per linear foot in height with a minimum price of $1 per pair. Exterior paneled shutters: H inches thick, stock construction, 35 cents net per linear foot in height, not exceeding 2/lOJ in width. Exterior porch columns or newells : Built up, square, $120 per 1,000 feet b. m. pluti cap and base on molding basis. Exterior porch newels or columns: Solid S4S, $80 per 1,000 feet b. m. Note. — Above prices apply to goods in full stock quantities for shipment in carload lots. For less than carload shipments, add 10 per cent for extra handling. INTERIOR TRIM. Special prices for cantonment construction : Wood : Yellow pine and white pine. Manufactured : Machine run out of rough lengths. Casing : 13/16 by 3|, S4S. Stool : I by 12. Apron : 13/16 by 33. Stops : i by i- Window trim : 10 by 12 to 10 by 15, 12 lights per side SO. 55 10 by 16 to 10 by 18, 12 lights per side . 66 Sash trim : 10 by 12 to 10 by 16, 4 and 6 lights per side . 39 Door trim : 2/0 by 6/8 to 3/0 by 7/0 per side , . 40 3/4 by 6/8 to 5/0 by 7/0 per side . 55 For transom head 2/0 or less, add . is Inside jambs : Manufactured, run to exact widths and lengths and dadoed ; shipped K. D. ; stops cut to rough lengths ; no transom Lieads : Wood : Yellow pine. Parts : Jambs 13/16 by 4i ; stops i by li. 2/8 by 6/8 to 3/0 by 7/0 $0. 77 3/4 by 6/8 to 6/0 by 7/0 . 88 For transom head 2/0 or less, add . 53 EXTRAS. Above prices apply to goods in full stock quantities for shipment in carload lots. For less than carload shipments, add 10 per cent for extra handling. All f. o. b. factories in the Middle West, taking rate to eastern and southern points not in excess of the rates from Oshkosh, Wis., Minneapolis, Dubuque, Clinton, and Muscatine, Iowa. Medicine cabinets : Stock design, arranged to fit in recess or hang on Vv'all, plain (window glass) mirror 14 -by 18, set up, no hardware $3. 50 As per standard detail, plain plate mirror 5. 50 Kitchen dressers : No. 1, sheet 58, 3/6 by 6/9 bottom case 18 inches deep, top case 14 inches deep, K. D. ; no hardware 13. 70 (June, 1918.) Prices on pine lath, f. 0. b. shipping point : No. 1, $3.65 ; No. 2, $2.65. Special millworh. — Prices of roofers : Beaded, $2 per thousand feet, overdressed two sides ; grooved, $1 per thousand feet, overdressed two sides. 800 HISTORY OF PEICES DURING THE WAR. PORTLAND CEMENT. The cement committee of the Council of National Defense was organized in April, 1917. In July, 1917, an informal price agreement was made for the last six months of 1917, applying principally to purchases by the Army and the Navy. By the recommendation of the War Industries Board, these prices were con- tinued for Government purchases through the first four months of 1918. On May 4, 1918, the price-fixing committee issued new schedules allowing increases in prices.^ These prices Avere left substantially the same at the revision of August 23, 1918, until December 31, 1918, when price control ended. NET PRICES ESTABLISHED BY PRICE-FIXING COMMITTEE FOR PORTLAND CEMENT PER BARREL F. O. B. CARS LOCATION NAMED, FOR 4-MONTH PERIODS ENDING AS INDICATED. Location. 4 months ending- Dec. 31, 1917- Apr. 30, 1918.1 Aug. 31, 1918.1 Dec. 31, 1918.2 Hudson, N. Y Lehigh Valley, Pa. (Northampton). Pittsburgh, Pa,. (Universal) Fordwick, Va Kingsport J Tenn., Richard City, Terin Bellevue, Mich Mitchell, Ind BufRngton, Ind Hannibal, Mo LaSalle,Ill Steelton, Mian Mason City, Iowa lola, Kans Harrys, Tex Houston, Tex El Paso, Tex San Antonio, Tox New Orleans, La Trident, Mont ; Portland, Colo Devils Slide, Utah Brigham, Utah Salt Lake City, Utah Ir\\Tn , Wash , Concrete, Wash Seattle, Wash Tacoma, Wash Portland, Oreg Oswego, Greg.- Stockton, Calif Oakland, Calif San Francisco, Calif Santa Cruz, Calif Santa Barbara, Calif Los Angeles, Calif Cement, Cahf Davenport, Calif Crestmore, Calif. $1.40 1.30 L50 1.40 L40 L40 1.50 L50 L50 1.50 1.55 L55 1.50 130 1.40 L90 ?1.85 1.75 L75 1.70 L65 L65 L80 L70 L60 1.70 L70 1.70 L70 1.75 1.70 1.80 1.95 1.95 $1.82 1.72 L72 1.67 1.62 1.62 1.77 L67 L57 L67 L67 L67 1.67 1.72 L67 L77 L92 1.92 L78 1.70 1.70 1.70 1.90 1.75 1.90 L90 1.90 1.95 1.95 1.87 1.72 1.87 1.87 1.87 1.92 1.92 1.90 1.70 1.70 2.00 L97 L70 1.70 L70 1.70 1.70 1.70 L95 1.95 1.95 1.92 1.92 1.92 1 Includes 3 cents per barrel for bin-inspection. 2 Does not include charge for bin inspection. On the above basis, with freight added, prices were to be named f. o. b. cars at desti- nation, based upon ciirrent rates of freight, subject to increase in destination prices in accordance with any increase which might be made in freight rates. The freight charges were to be paid by the purchaser and shipments to be consigned to a Government oflBcer, or, if consigned to other than a Government officer, to be accompanied by a certificate (Form 750) signed by a Government officer, stating that the cement was for Government use, and that any saving would accrue to the benefit of the Government, otherwise the purchaser must also pay the war tax on the freight charges. Shipments were to be made Price-fixing committee, Minute Book III, May 4, 1918. GOVER]S^MEI^^T REGULATIONS RELATING TO PRICES. 801 freight collect, and, for convenience In billing, invoices were to be rendered on the basis of the above-named prices, plus the current freight rate. In payment of the account the freight charges paid by the Government departments or their contractors was to be deducted from the total amount of the invoices. When shipments were required freight prepaid. Form 750, furnished by the Commissioner of Internal Revenue, were to be signed by the officer in charge of the work in question and forwarded to the shipping company with the order, who would lile this certificate with the railroad company at the time the first shipment was made on this order. The prices in the above table did not include any charge for cotton cloth and paper bags, paper-lined cloth bags, or wooden barrels. The charges were as follows : For the last six months of 1917 and the first four months of 1918, no charge was made for cloth bags at the time of shipment, but any bags not returned to the mill in good condition, freight prepaid, were charged for at the rate of 15 cents each ; for the four months beginning May 1, 1918, a charge of 10 cents for each cloth bag was made at the time of shipment, which amount was credited upon return of these bags in good condi- tion to the point of shipment, freight prepaid, within 60 days from date of shipment ; for the four-month period beginning September 1, 1918, a charge of 25 cents for each cloth bag was made at the time of shipment which amount was credited for each bag returned to the point of shipment in good condition, freight prepaid, within 60 days from the date of shipment. This increase in the charge for cloth bags was due to the increas- ing shortage resulting from inability to obtain new bags or to secure the return of bags at the lower charges of 10 and 15 cents when the replacement value was upwards of 25 cents per bag. The charge for paper pags was as follows : The last six months of 1917 and the first eight months of 1918, 2i cents per bag ; the last four months of 1918, 7i cents per bag. The additional charge for paper-lined cloth bags for the last six months of 1917 and the first four months of 1918 was 15 cents per bag for the lining and 15 cents for each cloth bag, which latter amount was credited upon the return of each cloth bag in good condition to the point of shipment, freight prepaid, within 60 days from the date of shipment. The charge for wooden barrels for the last six months of 1917 was 45 cents, and for the first four months of 1918 was 60 cents per barrel for eastern mills, and for both periods 75 cents per barrel for western mills. The prices fixed for the last four months of 1918 contained the provision that the charge for paper-lined cloth bags or wooden barrels (based on the cost) would be deter- mined at the time the order was placed. Previous to September 1, 1918, the cost of bin inspection was included in the price of cement. Inasmuch as all departments did not require bin tests, this charge was de- ducted from the prices fixed for the second four months of 1918, making the net prices established for the last four months 3 cents per barrel less than those for the previous period. A charge, however, of 3 cents per barrel was made where bin inspection was required, which requirement was usual with nearly all Government purchases. Prices for the four-months' period beginning May 1, 1918, were 15 cents per barrel less, and for the four-months' period beginning September 1, 1918, 5 cents per barrel less, where the cement was shipped in hulk. The terms were net cash 30 days ; for the four-month period beginning May 1, 1918, a discount of 5 cents per barrel was allowed for cash payments in 10 days. This provision did not prove practicable and was not included in prices for subsequent periods. SAND, GRAVEL, AND CRUSHED STONE. The first prices were fixed for the New York district by the price-fixing com- mittee July 10, 1918, effective to November 1, 1918. Prices for other districts followed later, and all expired on November 1, 1918. (July 10, 1918.) NEW YOKK DISTRICT. After considering data submitted by the Federal Trade Commission and in agreement with the representatives of the industry, the price-fixing committee has fixed the following prices on sand, gravel, and crushed stone : Per cubic j'ard. Sand $0. 75 Gravel 1- 6» Crushed stone !• 85 12.5547°— 20 51 802 HISTORY OF PEICES DURING THE WAR. These prices are for full scow- load lots delivered f. o. b. scow, witbin the free lighterage limits of the port of New York, with 24-hmir unloading privilege, and are effective for the period ending October 31, 1918. For deliveries made outside the free lighterage limits of New York may be added to the above prices the extra cost of towage. (Aug. 28, 1918.) METROPOLITAN PHrLADELPHIA DISTRICT. At a meeting of the price-fixing committee, held on Tuesdaj% August 28, the following maximum prices were fixed upon all Government sales effective for the period ending December 31, 1918, for the Metropolitan Philadelphia dis- trict; that is, for the States of New Jersey, Delaware, and Pennsylvania east of and including Harrisburg : For deliveries in full scow-load lots, f. o. b. scow alongside, within tin- second towing zone : I*"^"!' ton. Sand .$0. 60 Gravel 1.00 Crushed gravel f. o. b. cars wharf 1. 2.5 Unloading sand and gravel from scow to cars . 25 For deliveries f. o. b. cars plant : Sand . 55 Gravel . 95 For deliveries in full scow-load lots between ]Marcus Hoi^k and Port Penn on the Delaware River f. o. b. alongside: Sand 1. 00 Gravel 1.15 The above carried a 24-hour free unloading privilege, with a flat charge of .$15 per scow for each 24 hours thereafter. (Oct. 31, 1918.) NOEFOLK DISTKTCT. At a meeting of the price fixing committee held on Thursday, October 31, the following maximum prices were fixed to cover purchases, whether by the Gov- ernment or otherwise, and to be effective for the period ending February 28, 1919, for the Norfolk district, i. e., the State of Virginia south of and including Petersburg, and the States of North Carolina and South Carolina : For deliveries in full barge lots, f. o. b. point of origin, or f. o. b. cars plant, per ton of 2,000 pounds net : Sand ^0.50 Gravel j . 95 Crushed stone 1. 30 Crushed granite 1. 75 Not including railroad ballast or screenings. (Nov. 7, 1918.) METROPOLITAN PHILADELPHIA DISTRICT. At a meeting of the price fixing committee held on Thursday, November 7, a maximum price of $1.50 per ton (2,000 pounds) f. o. b. cars plant was fixed for all Government purchases of crushed stone (other than railroad ballast or screenings) for the period ending December 31, 1918, within the Metropolitan Philadelphia district, i. e.. for the State of New Jersey, south of and including Trenton ; the State of Delaware and the State of Pennsylvania, east of and including Harrisburg. 9. CHEMICALS. The following table summarizes the essential facts concerning the public regulation of the prices of chemicals during the war. The more detailed regu- lations pertaining to the great groups of chemicals are shown after the summary table. Commodities. Agency. Date when effec- tive. Date of expira- tion. Price. Acids ... . P. F.C 'junebs/ms .'!.'! "jan.'ij'igig"."!!! Sulphuric acid 60° Baume S18 per short ton. $28 per short ton. 832 per short ton. $16 per short ton. $25 per short ton. $28 per short ton. 8J cents per pound. $6.90 per hundred- weight. $13.10 per hundred- weight, $0.0235 per pound. Sn. 15 per pound. $0.17 per pound. $0,145 per pound. $0,165 per pound. $3.50 per hundred- weight f. 0. b. cars at sellers' plants. $0,075 per pound. $1.57 per hundred- weight f. 0. b. sellers' plants. 66° Baum6 20 per cent oleum. 60° Baum^ Sept. 30, 1918 . . 66° Baum^ do 20 per cent oleum. do Nitric acid— 42°Baum6 June 28, 1918.... Jan. 1, 1919 do Mixed acids— No.l No. 2 .-. Alkalis: Bleaching powder Carbon tetrachloride. Dry Board of ap- praisers. W. 1. B., infor- mal. April, 1918 do Nov. 25, 1918.... Fire extinguisher . Carbon tetrachloride . Dry Board of ap- praisers. August, 1918 December, 1918 . Fire extinguisher . Caustic soda, 76 per cent, ChlorlDe, liquid W. I. B., infor- mal. do Spring, 1918 May, 1918 do December, 1918 . Nov, 25, 1918.... do Soda ash, 58 per cent- do Ammonia Food adminis- istrator. Nov. 19, 1917.. Anhydrous $0.30per pound, carload lots. $0.0825 per pound, car- load lots. $0,045 per pound f . o. b. point of production. $0.09 per pound, carload lots f.o.b. plants. $3.50 per bushel of 46 pounds. $4.50 per bushel of 46 pounds. $3.50 per bushel of 46 pounds from near-by countries; $4.50 from other countries. $4.50 from all sources. Aqua Ammonium sulphate .... Arsenic War Depart- ment. Food adminis- trator. December, 1917.. Feb. 28,1918... Dec. 14, 1918 Castor beans Fall, 1917 October, 1918. December, 1918. W. T. B February, 1918.. October, 1918.... Castor oil Bureau Aircraft Production. Fall, 1918 December, 1918.. Conforming to Speci- $0,244 per poimd. $0,224 ner Dound. flcation No. 3500-A of Signal Corps. Other oil 803 804 HISTORY OF PEICES DURING THE WAR. ( Ommodities. Agency. Date when effec- tive. Date of expira- tion. Glycerin. Food admiois- istrator. Nitrate of sod;i. Nitrate commis- sion. Quebracho '. . Smokeless cannon powder Sulphur Toluol Wood chemicals . Acetate of lime Acetic acid, commer- cial, 100 per ent. Acetic acid, glacial . . Acetic anhydride. 85 per cent. Acetone Alcohol, methyl, pure Alcohol, wood — Crude Denaturing grade Refined, 95 per cent. Refined, 97 per cent. Ethyl methyl ketone . Formaldehyde Methyl acetate Methyl acetone AVool grease W. T. B Congress W. I. B., infor- mal. Ordnance De- partment. W. I. B., infor- mal. W. I. B. with War Depart- ment. P. F. C . July 30, 1918 August-Septem- ber. October-Novem- ber. December January-June, 1918. June, 1918 July, 1918 August, 1918... September, 1918 October-Novem- ber, 1918. December, 1918. May 6, 1918 Feb. 13, 1913... June?, 1918 Feb. 1, 1918. July 10, 1918. Dec. 31, 1918... Jvme. 1918. Dec. 14, 1918.. Dec. 24, 1917. Feb. 13, 1918. ....do Dec. 24, 1917. -do. .do. -do. -do. .do. .do. ....do Feb. 12, 1918... Feb. 20, 1918... Dec. 24, 1917... Sept. 17, 1918... Dec. 17, 1918. F. 0. b. point.s of pro- duction. $0.60 per pound. $0.58 per pound. $0.56 per pound. 95 per cent 96 per cent nitrate. nitrate. Per cwt. $4. 225 4.05 4.10 4. 32.i 4.32i 4.40 Per cwt. U- 25 4.10 4.20 4.45 4.50 4.52i 4..").=i n. b. 4.42.i $0,065 per pound. $0.53 per pound. $22 per long ton f. mines. $1.50 per gallon. Do. F. 0. b. shipping point. D.04 per pound. 3. 14 J per pound. 3. 19 per pound. 3.85 per pound. %Q.25% per pound. $0.86 per gallon. $0.50 per gallon. $0.79 per gallon. Do. $0.82 per gallon. $0.25J per pound. S0.15.|perpoimd. $0.21 naked at plant. . $0.86 per gallon. $0.16 per pound f. o. b. shipping point. ACIDS. On June 28, 1918, the price fixing ct>muiittee.aniiouuced the following maxi- mum prices of sulphuric and nitric acids, whicli were revised on September 30, 1938. Control was lifted on January 1, 1919. June 2S, 1918. Sulphuric acid: Per ton of 2,000 pounds. 60° B S18 66° B 28 20 per cent oleum 32 F. o. b. at manufacturer.s' works in sellers' tank cars. In carboys in carload lots ohe-half cent per pound extra. In carboys in less than carloads three-fourths cent por pound extra. In drums, any quantity ,one-fourth cent per pound extra. Nitric acid, 42° B., 8J cents per pound f. o. b. manufacturers' works in carboys. A schedule of maximum prices on mixed acids was prepared and published later.^ 1 Letter to Mr. Brookings from Mr. Brunkor, of the acids and heavy chemicals section, dated July 19, 1918 : " After a somewhat lengthy discu.'ssion it was decided that the price for mixed acids shall l>e determined as lixed governmental prices for the acidity contents of the component acids, with no additional charge for mixing." GOVERNMEIN'T REGULATIONS RELATING TO PRICES. 805 The above maximum prices" were agreed upon for che public as well as the Government. It was understood and agreed that any deliveries made after September 30 would be subject to any revision in price which the Government might make for deliveries after that date. ALKALIS. The alkali section of the War Industries Board was organized April 15, 1918. Previous to this time efforts to control the prices of alkalis had been made by the alkali section of the chemical committee of the Council of National De- fense in cooperation with the Chemical Alliance (Inc.). Bleaching powder. — In April, 1918, a tentative Government price of $0.0235 per pound was agreed upon. On later compulsory orders * the alkali section and the procurement division of the Ordnance Department recommended a price of $0.0235 per pound for prime bleach, basis 35 per cent chlorine f. o. b. makers' plants. This was reduced to $0.02 by the board of appraisers, but compulsory orders for November deliveries still carried the price of $0.0235. Fixed prices were canceled on November 25, 1918. Carbon tetrachloride. — In April, 1918, the alkali section recommended a price of 15 cents per pound on dry carbon tetrachloride and 17 cents per pound on tire extinguisher of the carbon tetrachloride type. These prices were reduced to 14^ cents and 161 cents by the board of appraisers and the latter prices became effective from August, 1918, until the orders were canceled at the end of the year. During this time the entire output of all producers was commandeered by the Government. Caustic soda. — A price of $3.50 per hundredweight for the 76 per cent caustic soda, in bags f. o. b. cars at sellers' plants, was set in the spring of 1918 to apply to the Government purchases of caustic soda. Prices for other grades were in proportion to the base prices. These prices continued until the close of 1918, when all restrictions were removed. Li(iuid chlorine. — Beginning May, 1918, the total output of liquid chlorine was commandeered by the Government at a price of 71 cents per pound, in Govern- ment containers f. o. b. makers' plants. This price prevailed throughout the remainder of the war period. Restrictions were removed November 25, 1918. Soda ash. — ^The Government fixed the price of soda asli early in 1918 at $1.57 per hundredweight for the 58 per cent soda ash in bags f. o. b. sellers' plant. These prices continued in effect until November 25, 1918. AMMONIA. The first agreement affecting the price of ammonia was made on November 19, 1917, between the producers of ammonia and the Food Administration. The terms of the agreement are given below. On January 3, 1918, the President issued a proclamation licensing the output of " ammonia, ammonical liquors, and ammonium sulphate from whatever source produced." Licenses were to be secured on or before January 21, 1918, and the Secretary of Agriculture was to direct the carrying out of the provisions of the proclamation. The prime products of ammonia as produced in by-product coke- oven plants, coal gas plants, and nitrogen fixation plants were those affected by the proclamation. The prices fixed in the earlier agreement continued in force through 1918, but they probably were inoperative in 1919, although the formal agreement was to continue in operation until the proclamation of peace. ^The information in regard to the alkalis was obtained from the report of the alkali section of the War Industries Board to Mr. Baruch, in December^ 1918 ; from the second annual report of the Chemical Alliance, January, 1919 ; and from the 1918 Yearbook of the Oil, Paint and Drug Reporter. 806 HISTORY OF PRICES DURING THE WAR. AGREEMENT OF NOVEMBER 19, 1017. At a meeting on November 19, 1917, the manufacturers of aqua and anhydrous ammonia agreed to place the allocation of their output in the hands of the Pood Administration. They also agreed not to sell in excess of the following basic prices f. o. b. plants : Anhydrous ammonia, 30 cents per pound carload lots. Aqua ammonia, 8J cents per pound carload lots. Agreement entered into between Mr. Hoover and manufacturers of ammonia November, 1917: (1) The manufacturer agrees that he will sell his output of anhydrous am- monia to such persons and in such amounts as may be directed by the United States Food Administration ; that he will direct and require all of Ms agents to sell his product to such persons and in such amounts as may be directed by the United States Food Administrator. It is understood that until further notice from the United States Food Adminisrator the manufacturer may sell or use his product or accept orders for delivery thereof within 60 days from the date of such orders, without direction, limiting as far as possible the use and sale of such product for nonessential purposes. Contracts for deliveries extending over a longer period may be made only with special permission from the United States Food Administrator or his representative. (2) The Fpod Administrator agrees that he will direct the distribution of the manufacturer's output in as economical and equitable a manner as possible, adhering as far as practicable to the expressed wishes of the manufacturer. (3) The manufacturer agrees that he will sell all anhydrous ammonia at prices not to exceed those included in the schedule attached hereto marked "A," which is hereby incorporated in and made a part of this agreement. In case the cost of materials or manufacture or transportation increases or decreases such maximum prices shall be revised by the United States Food Administrator, on his own motion or on application of the manufacturer, in such manner that the profit of the manufacturer shall remain substantially the same as at the prices in said schedule. (4) The aforesaid prices shall include all commissions paid to agents, but shall be exclusive of the prices of containers for which payment shall be x-equired at time of payment for the contents, the actual amount so paid for containers to be refunded if returned in good order and in a reasonable time. In case of dispute said reasonable time shall be determined by the United States Food Administrator or his representative. (5) In the event that the supply of sulphate of ammonia and ammonia liquor is insufficient to meet the needs of the manufacturers entering into this and similar agreements, it is agreed that the Food Administrator may allocate the supply of such materials among the manufacturers entering into this and similar agreements with the said Food Administrator on such fair and equitable basis as may be determined by said administrator, (6) The manufacturer agrees that in order to carry out the purposes of this agreement he will furnish such reports as may be I'equired by the United States Food Administrator or his representative upon request and upon such blanks as the United States Food Administrator may designate, giving complete informa- tion regarding transactions in anliydrous ammonia imported, manufactured, refined, packed, purchased, contracted for, received, sold, stored, shipped, or otherwise handled, distributed, or dealt with by the manufacturer, or on hand, in the possession or under the control of the manufacturer, and any other infor- mation pertinent thereto, concerning the business of the manufacturer that such representatives may require from time to time. It is understood and agreed that information thus furnished by the manufacturer shall not be divulged or made known in any manner by the United States Food Administrator or his representative, except in so far as necessary to carry out the purposes of this agreement or in so far as directed by a court of competent jurisdiction. (7) This agreement shall remain in full force and. effect from its date until peace shall have been proclaimed between the United States and Germany. GOVEE]!TMENT REGULATIONS RELATING TO PRICES. 807 ANHYDROUS AMMONIA CONTAINING NOT LESS THAN 99.9 PER CENT NH3. State. Cents per pound. Remarks. Alabama 33 40 34 35 38 31 31 31 34 33 40 31 31 32 33 31 34 31 31 31 32 33 33 31 40 34 42 31 31 38 31 33 35 31 35 35 31 31 33 35 33 35 40 31 32 35 32 32 40 If from Birmingham stock, 33 cents f. 0. b. that point. Arkansas If from San Francisco, Los Angeles, San Diego, Sacramento stocks, Colorado 35 cents f. 0. h. these respective points. Connecticut Delaware .• District of Columbia Florida Jacksonville, 35 cents. If from Jacksonville stock, 33 cents f. 0. b. Georgia that point. If from Atlanta and Savannah stocks, 33 cents £. 0. b. that point. Idaho Illinois Chicago, Cook County, East St. Louis, 30 cents. Indiana Aetna, Calumet, East Chicago, Gary, Hammond, Indiana Harbor, Iowa and Whiting, 30 cents f. o."b'. Chicago if shipped from that point! If from Indianapolis stock, 31 cents f. 0. b. that point. Davenport and Dubuque, 31 cents. Kansas East of 96° longitude; 34 cents west of 96° longitude. Covington and Newport, 30 cents. If from Louis\alle stock, 31 cents Louisiana f. 0. b. that point. New Orleans, 33 cents. If from New Orleans stock, 33 cents f. 0. b. Maine that point. Maryland If from Baltimore stock, 31 cents f. 0. b. that point. Massachusetts Michigan Detroit, 31 cents. If from Detroit stock, 31 cents f. 6. b. that point. Minnesota St. Paul and Minneapolis, 32 cents. If from St. Paul stock, 32 cents Mississippi f. 0. b. that point. Missouri East of 93° longitude; 33 cents west of 93° longitude; St. Louis, 30 Montana cents; Kansas City, 32 cents. If from Kansas City stock, 32 cents f. 0. b. that point. Nebraska Omaha, 33 cents. If from Omaha stock, 33 cents f. 0. b. that point. Nevada New Hampshire New Jersey Camden, Newark, Paterson, and within 15 miles of New York City Hall, 30 cents. New York Points within 15 miles of New York City Hall, 30 cents. If from North Carolina Bullalo or Rochester stocks, 31 cents f. 0. b. these respective points. North Dakota Ohio Cincinnati 30 cents. If from Cleveland or Toledo stocks, 31 cents Oklahoma f. 0. b. these respective points. If from Oklahoma City stock, 35 cents f . 0: b. that point. If from Portland stock, 35 cents f. 0. b. that point. Oregon Pennsylvania. .. Philadelphia, 30 cents. If from Pittsburgh stock, 31 cents f. 0. b. that point. If from Providence stock, 31 cents f. 0. b. that point. Rhode Island South Carolina South Dakota Bristol and Memphis, 32 cents. If from Memphis stock, 32 cents f. 0. b. that point. East of 101° longitude; 37 cents west of 101° longitude. If from Texas Utah Houston, Fort Worth, Dallas, or San Antonio stocks, 35 cents per pound f. 0. b. these respective points. If from El Paso stock, 37 cents f. 0. b. that point. If from Salt Lake City stock, 40 cents f. 0. b. that point. Vermont Virginia Hampton, Newport News, Norfolk, Ocean View, Old Point Comfort, Phoebus, Portsmouth, Richmond, and Alexandria County, 31 cents. If from Norfolk or Richmond stocks, 31 cents f. 0. b. these respective points. If from Spokane stock, 35 cents f. 0. b. that point. Washington West, Virginia Wisconsin Milwaukee, 31 cents. If from Milwaukee stock, 31 cents f. 0. b. that Wyoming point. Terms, 30 days net for both cylinders and contents. Prices named above are freights free at common-carrier points unless otherwise stated ; freight on empty cylinders returned for credit incumbent on seller in all cases. Above prices apply to contents of 100 and 150 pound capacity cylinders. Charge ,3 cents per pound higher for " small " or 50-pound capacity cylinders. Charge 6 cents per pound higher for " midget " or 25-pound capacity cylinders. 808 HISTORY OF PRICES DURING THE WAR. AQITA AMMONIA TECHNICAL, 26" B., 29.4 per cent— NHg. District No. 1. — Connecticut, Illinois, Indiana, Iowa, Kentucky, Maryland. Massachusetts, Michigan, Minnesota, Missoui'i. New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Wisconsin ; C. 1. in drums, 8J cents per pound, 26° B. ; 1. c. 1. in drums, SJ. cents per pound, 26° B. Freight paid by shipper. Dis-tfiot No. la. — New Hampshire and Vermont : C. 1. in drums, 8j cents per pound, 26° B. ; 1. c. 1. in drums, 8^ cents per pound, 26° B. Freight paid by shipper. District No. lb. — Maine. Virginia, and West Virginia, including District of Columl)ia : C. 1. in drums, 83 cents per pound, 26° B. ; 1. c. 1. in drums, 9 cents per pound, 26° B. Freight paid by shipper. District No. 2. — Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Caro- lina. South Carolina, and Tennessee : C. 1. in drums, 95 cents per pound, 26° B. ; 1. c. 1. in drums, 9* cents per pound. 26° B. Freight paid by shipper. District No. 3. — Arizona, California, Colorado, Idaho, Indisin Territory, Kansas, Montana, Nebraska. Nevada, New Mexico, North Dakota, Oklahoma, Oregon. South' Dakota, Texas, Utah, Washington, and Wyoming : C. 1. in drums, 8J cents per pound, 26° B. ; 1. c. 1. in drums, 8^ cents per pound, 26° B. Freight to Mississippi River points allowed by shipper. Deduction of one-eighth cent per pound from above carload drum prices to be made when shipped in tank cars. Aqua ammonia of all degrees, in carboys 1. c. 1., 2 cents per pound advance, and in carbovs c. 1., li cents per pound advance. Freight incumbent upon buyer. Deductions from any of above prices shall be made on the following degrees : Ij cents per pound, 20° B. 2"cents per pound, 18° B. 2j cents per pound, 16° B. 2| cents per pound, 14° B. AMMONIUM SULPHATE. In the latter part of 1917 the War Department issued an order commandeer- ing the output of ammonium .sulphate. A price of 4i cents bulk f. o. b. point of production was established for Government purchases, but very little of the output was actually commandeered. The order was canceled December 14, 1918. The distribution, manufacture, and importation of ammonium sulphate were controlled through the license system, originating in the President's proclama- tion of January 3, 1918. ARSENIC. A presidential proclamation of November 15, 1917, provided for the licensing of dealers iu white arsenic on or before November 20, 1917, and for the licensing of dealers in insecticides containing white arsenic on or before December 10, 1917. The administration of this control was placed with the Food Admin- istration. On February 28, 1918, the Food Administration announced a price to pro- ducers at 9 cents per pound in car lots f. o. b. plants, with an additional quarter cent for small quantities, the price to apply to deliveries anywhere in the United States. It was applicable to new , contracts and did not affect existing contracts. With the establishment of an increased margin to dealers on April 4, 191S, the market price rose to 9J cents. The margins allowed varied from one-fourth cent per pound to 3 cents per pound, depending upon size of sales. CASTOR BEANS AND CASTOR OIL. In the summer of 1917 the Council of National Defense took the first steps in the control of the castor-oil industry. "All available supplies have been purchased and will be turned over to the Government at the price paid for the oil and without compensation to the purchaser." ^ About this time arrangements were made to increase the acreage of castor bean;; in this country. The growing centers were organized as districts 1 Oil, Paint, and Drug Reporter, Nov. 12, 1917. GOVERNMENT REGULATIONS RELATING TO PRICES. 809 and contracts were made with growers under a guarantee of $3 per bushel of 46 pounds on contracts directly with the Government, and $3.50 per bushel for beans grown by subcontractors. Beans were to be delivered hulled and sacked, in carload lots f. o. b. the nearest railroad station. The Government guaran- teed to take the crop. * When the crop was harvested this price was raised to $4.50 per bushel to the actual growers, while the contractors received a margin over and above this price. The control over the price of imported castor beans and castor oil. — After the President's proclamation of February 14, 1918, giving power to the War Trade Board to restrict imports, effective February 16, 1918, all importers of castor beans and castor oil were required to give the United States Government a 10-day option to purchase all imported beans from Venezuela, Colombia, Central America, Mexico, and the West Indies, the price to be paid for such purchases being $3.50 per bushel of 46 pounds, or $0,076 per pound, duty paid, duty being $0,003 per pound. The option on beans from all other countries was $0,098 per pound, duty paid. These prices were to apply to all purchases at home and abroad after February 22, 1918, and for all shipments after June 10, 1918. This action was carried out by the Bureau of Imports of the War Trade Board at the request of and in conjunction with the Aircraft Production Board. On June 16 the War Trade Board announced that outstanding licenses for the importation of castor beans and castor oil from the West Indies, Mexico, Central America, Colombia, and Venezuela were revoked as to ocean shipments after June 10, 1918. Thereafter no licenses from those countries would be issued, except when the United States Government was the consignee or where the importation was approved by the Bureau of Aircraft Production. On June 23, 1918, the price of $0,098 per pound, stipulated in the Govern- ment option, was lowered to $0,076 per pound for all near-by countries. How- ever, prices on beans from South America and the Orient remained at $0,098 because of the high freight rates from those countries. In October, 1918, the War Department announced an increase in the contract price of castor beans, making the price to growers $0,098, duty paid, at all ports of entry, on beans originating in the West Indies, South America. Central America, and Mexico. This makes the price the same for all beans, domestic and imported. Castor oil is being purchased at $0,244 per pound for oil conforming to speci- fication No. 3.500-A of the Signal Corps, other oil at $0,224 per pound. When the armistice was signed the Government had on hand large quan- tities of castor oil. The Bureau of Aircraft Production negotiated with Ameri- can crushers for the purchase of the Government stocks of domestic beans and oil. Somewhat earlier the War Industries Board had practically com- pleted negotiations for the sale of these stocks on the basis of 25 cents per pound for the oil. The aircraft bureau officials, however, raised this price above 30 cents a pound. All Government activities in castor beans and oil ceased in December, 1918. 1 1918 Year Book, Oil, Paint, and Drug- Reporter. 2 Official Bulletin, Oct. 22, 1918. 810 HISTORY OF PRICES DURING THE WAR. GLYCERIN. On July 30, 1918, the Food Administration made the following announcement : Prices at which dynamite glycerin is to be furnished to the allied Government and domestic consumers during the remainder of 1918 have been settled by joint agreement between the Food Administration and makers of soap and candles. Allied requirements, estimated at 7,000 long tons, will be furnished at 60 cents a pound in August and September ; 58 cents in October and November ; and 56 cents in December, f. o. b. production points in drums — drums included in price — deliveries to be divided into quotas of approximately one-third for each of the three pei'iods. The same price was to be maintained as a minimum price for chemically pure glycerin, except that chemically pure glycerin could be sold on the usual terms of 1 per cent discount for cash in 10 days, or net 30 days, freight prepaid, drums extra and returnable at sellers' expense. The agreement with the Allies for the last five months was carried out. About 1,000 tons were left undelivered at the time of the armistice, but satis- factory arrangements between the Allies and the American producers were made.^ NITRATE OF SODA. The purchase and importation of nitrate to the United States was controlled by the United States Government through the War Industries Board in coop- eration with the importers formerly handling this material. The Government received their nitrate through the importers at cost, and the profit charged by the importers to private users was controlled by the Government so that uniform cost to all users was secured, this cost being based on the average monthly cost in Chile, plus the freight charge, exchange, and other elements of cost. A committee known as the nitrate committee of the United States was estab- lished with offices in New York, and a New York representative of the War Industries Board represented that board in the ofiices of this committee.^ Uniform monthly prices were established, based upon the average cost in Chile during the particular month. To this average price was added a fixed charge of 2.5 per cent of landed costs in this country as a brokerage charge. Determina- tion of the uniform price, as well as the control of the distribution of nitrate of soda, was in the hands of the nitrate committee. This arrangement was in force from the beginning of 1918. According to the best advices the quotations in this country up to the month of June were $4,225 per hundredweight of 95 per cent nitrate and $4.25 for the 96 per cent. At the time of the armistice the Government had on hand surplus stocks of nitrate of soda. The War Department announced on March 10, 1919, that these stocks would be disposed of at the prevailing market prices.' QUEBRACHO. An agreement between importers of solid quebracho extract and the War Trade Board granting an option to the United States Government on all shipments during 1918 became effective May 6, 1918. The maximum price agreed upon in the event of the exercise of such option was 62 cents per pound, ex dock Atlantic seaports north of Cape Hatteras. basis 65 per cent tannin, net landed reweight, net cash basis $20 ocean freight per ton of 2,240 pounds. ' Information from fats and oils section of the United States Food Administration. 2 Statement of Mr. C. H. McDowell, director of the chemicals divisioa of the War Industries Board, from Federal Trade Information Service, Dec. 24, 1918. * Federal Trade Information Service, Mar. 10, 1919. GOVERNMENT REGULATIONS RELATING TO PRICES. 811 On June 30, 1918, the War Trade Board announced a new ruling, placing tan- ning materials on the list of restricted imports. ' Shipments of a limited quantity only of solid quebracho extract were allowed after July 10, 1918, and the fixed price became inactive after that date. The "War Trade Board lifted its ruling of June 30 on December 5, 1918.^ SMOKELESS CANNON POWDER. Beginning with February 13, 1913, all Army and Navy appropriation bills specify that " no part of any money appropriated in this act shall be expended for the purchase of powder, other than small arms, at a price in excess of 53 cents." In other words, Congress controlled the price of cannon powder, but not of rifle powder. SULPHUR. Sulphur was one of the fertilizer materials included in the President's license proclamation of February 25, 1918. On July 2, 1918. the President gave liis approval to a resolution passed by the War Industries Board on June 27, 1918, in which the board assumed control of sulphur materials, controlling production and distribution. Commandeering orders were to be issued where necessary.^ Early in the fall of 1917 the fertilizer committee of the chemical alliance, act- ing with the consent of the Council of National Defense, arranged for a price of sulphur at $22 per long ton f. o. b. mines. This policy was continued until June 7, 1918, when the War Industries Board took more direct control of the sulphur situation.^ The same price, however, continued elfecti^■e thr<.)ugh the life ©f the sulphur and pyrites section of the War Industries Board.* TOLUOL. The following resolution was passed by the committee on explosives and ap- proved by the War Industries Board on January 29, 1918 : It is requested that the Ordnance Department of the Army, with the consent of the Navyv commandeer the entire toluol production of the country, and that a committee on toluol be appointed composed of representatives of the Army, the Navy, and the War Industries Board, said committee to be charged with the duty of recommending the development of further facilities for toluol and a distribution of all toluol produced.^ The price paid for the toluol which was so commandeered was $1.50 per gallon. In June, 1918, this price was extended to cover all toluol released for nonmilitary purposes, at the following rates : ^ Per gallon. Car lots in tank cars $1. 50 Any quantity in drums 1.55 1 War Trade Board Ruling 378. 2 Minutes of War Industries Board, .June 27, 1918. ^ Second Annual Report of the Chemical Alliance, .Januarj', 1919. " Letter of Apr. 8, 1919, from Mr. W. G. Woolfolk, head of the sulphur, pyrites, and alcohol section of the War Industries Board. ^ Minutes of the War Industries Board. .Tau. 30, 1918. " The toluol section of the chemical division of th« War Industries Board sent the fol- lowing memorandum to the chief of the chemical section on Aug. 30, 1918 : " We are advised by the board of appraisers, War Department, that an award of $l.oO per gallon has been made on toluol taken under existing compulsory order. The award to run for duration of the order." i 812 HISTORY OF PRICES DURING THE WAR. No release for shipment was granted where a price in excess of above is asked, and all releases other than for military purposes were stamped: Released onlj' upon condition that price does not exceed $1.50 per gallon in tank cars; I'l.SS in drums.* WOOD CHEMICALS. Under a commandeering order issued December 24, 1917, by the director of purchases, storage and traffic, through the wood chemicals section of the War Industries Board all wood chemicals were commandeered for a period of six months. The prices of acetate of lime, acetic anhydride, acetone, wood alcohol, ethyl methyl ketone, and methyl acetone were fixed at the same time ; pi-ices for acetic acid, formaldehyde and methyl acetate were announced in February, 1918. On July 1, 1918, this commandeering order was reissued to continue until January 1, 1919. The same prices were awarded by the board of appraisers. The order was canceled December 14, 1918. WOOL GREASE. The price-fixing committee has approved an agreement made by the producers of wool grease fixing a maximum price of 16 cents per pound packed in barrels f. o. b. shipping point this price to take effect September 17, 1918, expiring December 17. 1918, both dates inclusive, and covering all sales made both to the Government and to the public. This price applied to wool grease containing a moisture content not exceeding 3 per cent and any excess of moisture above 3 per cent called for a proportionately lower price. The guarantee of ash w'as limited to 2 per cent. It was further agreed by the producers that all sales should be made subject to allocation by the " Tanning material and natural dye section " of the War Industries Board. The prices were discontinued on the date of expiration. 1 Metallurgical and Engineering Chemistry, June 1, 1918. 10. RUBBER. The appended circular issued by the "War Trade Board on April 30, 1918, indi- cates the origin and nature of the control over the prices of rubber and rubber substitutes. On December 14 and 23, 1918, the War Trade Board discontinued the Govern- ment option price and removed the resti-ictions on imports.^ CIRCULAR ISSUED BY WAR TRADE BOARD APRIL 30, 1918. The importance of securing every possible ship for trans- Atlantic uses in con- nection with carrying on the war has now become paramount. With this in view, the quantity of various articles of commerce heretofore freely imported will he substantially limited until further notice. Among these commodities is crude rubber. To the end that such limitation of imports shall not invite hoarding, specula- tive dealing, and profiteering, the War Trade Board has arranged that those dealing in this raw material and the manufacturers thereof will be governed by rules and regulations about to be promulgated by the War Trade Board to the entire rubber Industry through the Rubber Association of America. You are, therefore, hereby instructed on and after May 1. 1918, not to indorse any bills of lading for crude rubber or to accept any transfers or to i*elease any crude rubber without securing from the transferees or the applicant for a release an option and a guarantee in substantially the following form : OPTION AND GUABANTT CLAUSE TO BE INSEETED IN PRESENT BTJBBEE GUAEANTT. That the United States Government shaU have, and it is hereby granted, an option to purchase at the prices and on the terms hereafter set forth all or any part of the crude rubber covered by this guaranty and also all other crude rubber now or hereafter owned or controlled by the undersigned until sold and delivered to a manufacturer. In the event of the exercise of such option price to be paid for crude rubber and gums is fixed in accordance with the appended schedules. That the imdersigned will not sell, transfer, or dehver the rubber covered by the foregoing option, or any part thereof, to or for the benefit of any person at a price greater than the prices set forth in the foregoing option, except such rubber as he may be under contractual obligation to deliver under a contract executed and in force prior to May 1, 1918. Copies of such contracts, sworn to as being correct, must be filed viT.th the War Trade Board within five days from this date. Any delivenes made under such contracts to manufacturers subsequent to the date on which import restric- tions and a plan for the allocation of crude rubber shall be made effective shall constitute a portion of the amoimt allocated to such manufacturers under such plan. PRICES EFFECTIVE MAT 1, 1918. Per pound. Para, upriver fine $0. 68 Plantation : First latex crepe . 63 Smoked sheets, standard quality . 62 PRICES EFFECTIVE MAT 14. 1918. Plantation qualities : -^ OfiE standard latex crepe .62 Off color latex . 61 No. 1 amber crepe [ 60 No. 2 amber crepe . 60 1 War Trade Board Rulings 414, 456. 813 814 HISTORY OF PEICES DURING THE WAR. Plantation qualities— Continued. P®r pound. No. 3 amber crepe (medium color) SO. 58 No. 4 amber crgpe (darkish color) .57 Prime, clean, light-brown crepe, thick and/or thiu .00 Medium color brown, clean crepe, thick and/or thiu .58 Good dark-brown crepe, thick and/or thin .54 Specky brown crepe, thick and/or thin .50 Massed or rolled crepe : .44 Colombo scrap No. 1 quality .40 Colombo scrap No. 2 quality . 44 Standard quality smooth smoked sheets * . 60 Standard quality unsmoked sheets ^.61 Mexican guayule : Guayule crude, with. 20 per cent guaranty of shrinkage . 35 Clean, dry. and treated guayule, such as Duro, Triangle, Box, Torreon, and Alto brands . 48 Para grades : Upriver medium . 6."! Manaos weak fine .5(5 Upriver coarse . 40 Upper Caucho ball . 40 Xingu ball . 38 Lower Caucho ball . 36 Islands fine . 50 Islands coarse . 27 Cameta . 28 Central American grades : Central scrap — Esmeralda . 30 Corinto . 30 Mexican . 30 Bluefield . 30 Central slab — Guatemala . 32 Colombian , 32 Mexican, and others of similar nature . 32 African grades : Red Congo ball .48 Black Congo — Kassai . 50 Lopori . 50 Bquateur . 50 Sangha and similar grades . 50 Benguellas, 32^ per cent shrinkage . 20 Benguellas, 28 per cent shrinkage . 33 Niger paste and flake . 28 Red Kassai nuggets, cords, and similar grades . 42 Massais . 55 Rio Nunez . 55 Miscellaneous : Mattogrosso fine . 53 Mattogrosso coarse . 3S Penang (this includes Java) . 37 Caucho tails . 35 Gutta Joolatong (Pontianac) : Palambang . . 16 Banjermassin . 13 Sarawak . 14 Pressed Gutta Joolatong; having approximately 40 per cent of shrinkage loss . 2."> Gutta Siak _ ^ , 28 Balata : " Prime suriname amber sheet . 97 Fair average sheet . .05 Venezuela block . 71 Colombian block . 61 Panama block . 59 Other grades of Balata at their relative value. Gutta-percha : Red Macassan 3. 00 Other grades at their relative value. PRICES EFFECTIVE MAY 29, 1918. Manicoba (on the basis of 30 per cent loss in washing and drying) . 365 (Lower qualities to be priced in accordance, so that they shall not cost the manufacturer over 52 cents per pound dry weight.) Mollendo fine . 60 Tapajos . 61 Xingu fine . 63 Peruvian weak flue . 55 Lower Amazon weak flne . 45 PRICES EFFECTIVE JUNE 13, 191.?. Knapsack Madeira flne Para . 7-" Madeira fine Para . 60 ^ Revised May 20 to 01 cents. ^ Revised May 29 to 60 cents. ' In bond. GOVERNMENT REGULATIONS RELATING TO PRICES. 815 rrtlCES EFFECTIVE JULY 2. 1914. Africans : Per pound. Accra (Gold Coast) lumps SO. 28 Lagos lumps r • 28 Lump flake . 28 Conakry niggers . 55 Prime Mozambique ball . 52 Sierra Leone niggers . 50 Hausa ball . 35 Hausa cake . -iS Cameroon ball and similar grades . 35 Gambia niggers • 45 Prime Madagascar qualities (on the basis of 35 per cent shrinkage) . 35 Madagascar niggers (on the basis of 45 per cent shrinkage* . 29 Assam and Rambong : Prime crepes • 60 Good quality crSpes • 58 Assam onions • 54 PRICES EFFECTIVE JTIA' G, IDIS. Para, fine : Peruvian . 67 Cut Angostura • 64 Para, medium : Peruvian . 62 Cut Angostura . 58 Coarse, medium ■ 45 Para, coarse : Peruvian . 37 Mollendo ■ 37 Rio Negro coarse • 38 Rio Negro strings • 35 Nugget coarse . 46 Angostura coarse . 37 Tapajos coarse . 38 Xingu coarse . 38 Ceara coarse (Negroheads) . 38 Miscellaneous : Ceara scrap 1 : . 37 Pernambuco sheet . 35 Mangabeira sheet . 35 Upper Caucho slab . 33 All of the above prices are on the basis of c. i. f. New York. 11. NEWS-PRINT PAPER. Pursuant to a resolution of the United States Senate, dated April 24, 1916, the Federal Trade Commission undertook an investigation of the news-print paper industry of the United States. In Februai-y, 1917, certain manufacturers requested the Federal Trade Commission to fix " a fair and reasonable price for the sale of such paper for use in the United States " in the period from March 1, 1917, to September 1, 1917. Such a price was fixed by the commis- sion on March 3, 1917. After this agreement was adopted a Federal grand jury for the southern district of New York found indictments against four of the signatories to the agreement for violations of the Sherman antitrust law. The agreement soon collapsed. On November 26, 1917, a new agreement was made between Thomas W. Gregory, Attorney General of the United States, as trustee, and certain persons and corporations engaged in the manufacture and sale of news-print paper. The substance of this agreement and the subsequent action of the Federal Trade Commission are given in the statement below issued by the commission on June 18, 1918. The prices announced upon the different dates of agreement are here arranged in tabular form. Commodity. Agency fixing price. Date or period. Price fixed (f.o.b. mill). Paper, news-print. Roll news in ear lots [Federal Trade Commis- 1 sion. Arbitration decision on 1 Sept. 25, 1918, by United ( States circuit court, sec- ond circuit. Federal Trade ComTnis- \ sion; prices revised Oct. 18, 1918. I . .do (Apr. 1, 1918; set originally i. for duration of the war { and 3 months thereafter. JApr. 1, 1918; for duration \ ofthewar and 3 months thereafter. [Revised prices allowing J for wage increase be- 1 came efiective May 1, I 1918. [Revised prices allowing 1 for freight increase be- 1 came eflective July 1, I 1918. Per cwt. ( $3. 10 Roll news in less than car lots Sheet news in car lots 1 3.22i 1 3.50 Sh£et news in less than car lots 3.62i f 3.50 Roll news in less than car lots Sheet news in car lots 3.62J 1 3.90 Sheet news in less than car lots Roll news in car lots ... 4. 02i f 3.63i Roll news in less than car lots I 3. 75J ] 4.03i 4. 15f f 3.751 Sheet news ia less thaa car lots R oil news in car lot's Roll news in less than car lots 1 2. 87i 4.27J Sheet news in less than car lots FINDINGS OF THE FEDERAL TIIADE COMMISSION OF" PEICES AND TEEMS OF CONTKACT AND SALES OF NEWS-PRINT PAPER UNDER AGREEMENT DATED NOVEMBER 26, 1017. The Federal Trade Commission has had before it as a reference the agree- ment made on November 26, 1917, between Thomas W. Gregory, the Attorney General of the United States, as trustee, and certain persons and corporations engaged in the manufacture and sale of news-print paper. The manufacturers, parties to this agreement, comprise three United States companies and seven Canadian companies, as follows : United States com- panies — International Paper Co., Minnesota & Ontario Power Co., Gould Paper Co. Canadian companie.s — Spanish River Pulp & Paper Mills (Ltd.), Abitibl Power & Paper Co. (Ltd.), Laurentide Co. (Ltd.), Belgo-Canadian Pulp & Paper Co. (Ltd.), Price Bros. & Co. (Ltd.), Donnacona Paper Co. (Ltd.), Bromp- ton Pulp & Paper Co. (Ltd.). Those 10 companies produced in 1917 about 950,000 tons of news-print paper, or nearly 50 per cent of the total output of all mills on the North American Continent. The bulk of this tonnage was consumed by newspaper publishers in the United States. 816 GOVERNMENT REGULATIONS RELATING TO PRICES. 817 The agreement provides, briefly, that the Federal Trade Commission shall fix the maximum prices and terms of sale of the output of the news-print paper of these 10 companies sold to purchasers in the United States for the duration of the war and three months thereafter. In the case of the Minne- sota & Ontario Power Co. and its subsidiary, the Fort Frances Pulp & Paper Co. ( Ltd. ) , the agreement provides that the prices shall be fixed as of January 1, 1918. The commission is also directed to determine the just and reasonable maximum prices and terms of resale of all paper merchants, sales agents, or other middlemen selling the product of these 10 companies to customers in the United States. All parties at interest were invited to lay before the commission any perti- nent data, and counsel were diligent and helpful to the commission in securing a complete knowledge of the circumstances surrounding production and distri- bution. Extensive hearings were held and a mass of evidence taken. Cost figures were drawn from books of original entry and the vouchers and accounts of the several manufacturers were scrutinized by expert accountants. Complete appraisals of various plants were also presented. Neimprint prices. — The commission has heard the evidence and examined the data presented to it and finds the following maximum prices as of April 1, 1918, to be fair and reasonable for each of the 10 signatory companies for sales of standard newsprint paper to customers in the United States : Roll news in car lots, $3.10 per 100 pounds f. o. b. mill. Roll news in less than car lots, $3.22^ per 100 pounds f. o. b. mill. Sheet news in car lots, $3.50 per 100 pounds f. o. b. mill. Sheet news in less than car lots, $3.62^ per 100 pounds f. o. b. mill. The cost of the Brompton Pulp & Paper Co. (Ltd.), which is an incomplete mill of small newsprint tonnage and which buys its sulphite, was not allowed to control in the determination of the above prices. The Minnesota & Ontario Power Co. is directed to adjust its settlements for the months of January, February, and March, 1918, on a basis of 10 cents per 100 pounds above these maximum prices, thereafter the said maximum prices shall apply. Terms of sale. — The commission directs that the so-called standard form of contract be used at this time, with changes in terms that shall provide: (a) A definite tonnage specification and passage of full and unrestricted title to the customer upon delivery, and (&) that the signatory manufacturers shall credit customers for overweight above the 32-pound basis, computed by taking the annual average of the total tonnage delivered on contract, provided that the customer gives such prompt notice as to overweights from time to time as will enable the manufacturer, if he desires, to verify the claims currently and to make correction in weights of subsequent deliveries. Certain other changes in the terms of contract urged by the publishers con- tain merit, but this does not appear to be a proper time for introducing avoidable changes. Jobbers' prices and terms of resale. — The maximum commissions for jobbers or other middlemen selling newsprint obtained from any of the signatory manufacturers to customers in the United States shall be 15 cents per 100 pounds on carload lots, 40 cents per 100 pounds on less than car lots, and 60 cents per 100 pounds on less than ton lots. The commissions shall be added to the actual cost of paper at the mill or at the warehouse. The cost at the warehouse will be the net mill price plus freight, cartage, and other reasonable necessary expenses incurred in getting the paper to the warehouse. In billing customers these items and the commis- sion shall be stated separately. SEPTEMBER 25, 1918. The findings and award of the Federal Trade Commission concerning prices and terms of contract and sale of news-print paper, as announced June 18, 1918, were appealed for review to the United States circuit court. The decision of this court, as issued on September 25, 1918, is given in the following statement. 125547°— 20- — 52 818 HISTORY OF PEICES DURING THE WAR. Findings and Conclusions of the Judges of the Cikcuit Coueti in thej News-Pkint Case- findings. 1. Our jurisdiction rpsts solely on the consent of the signatory parties; we act as arhiti'ntors only. 2. The principles applied by courts of authority in regulating rates for public utilities should be followed in this proceeding as nearly as possible. 3. In valuing the capital investment used in producing news print, prices before the present European War should be adopted. 4. We are not informed as to the investment or value of the plant of the Gould Paper Co. The Brompton Co. produces little news print, and that under abnormal conditions. Therefore, these manufacturers must conform to the fair maximum price fixed for the other eight parties and based upon the evidence concerning said eight businesses. 5. In ascertaining capital investment, i. e., the present value of property actually used in paper production, we exclude timber lands Avliether owned or leased, also undeveloped or potential water power, i. e., water rights ; but in- clude mill and town sites, terminal facilities, and improvements on or develop- ment of natural water povs^ers, together with any investment by way of actual payment for power rights. The foregoing allowed elements of capital value are the " tangibles." 6. Going concern value and working capital are proper additions to " tangibles." 7. In ascertaining manufacturing cost, no allowance for stumpage in respect of wood obtained from leased Canadian Crown lands'! is made, such stumpage not representing any actual disbursement, nor tlie partial exhaustion of prop- erty for which payment (on stumpage basis) was ever made. In respect, however, of wood cut in o^\^Ied lands, such stumpage charge is proper, and $2 per cord is less than tlie market rate. 8. Owing to more costly wood and higher expenses for labor, taxes, and freight charges, tlie typical mill in tbe United States can not, with equal skill in management, produce paper as cheaply as a similar mill in Canada ; such disadvantage means an additional cost per ton of paper' of slightly more than $5. 9. The Spanish River Co. is an exception to the Canadian manufacturers solely because of a high and wholly unexplained wood cost. 10. The maximum selling price fixed for all the signatories should be based on an average of the reasonable capital investments, and fair manufacturing costs of the signatory parties, other than the Gould & Brompton Cos. 11. It is not advisable to make anj' special rate by way of favor for manu- facturers meeting with special but temporary misfortune. The high manu- facturing cost of The Minnesota & Ontario Co., due to drought, and the serious loss of the Abitibi Co., ascribed to sabotage, are business accidents which would not relieve them from the competition of more fortunate rivals in ordinary times, and under a fixed maximum rate they must still meet competition. 12. We consider ourselves bound by agreement of parties that the annual production of each manufacturer is to be taken as the proven daily capacity of plant multiplied by 300 yearly working days. Therefore, we disregard the fact also proven that the output of the signatory parties for 1917 was 5.6 per cent over the assumed production. 13. The fair present value, as depreciated and at prewar prices of an integrated paper-mill plant, per ton of daily capacity, is: Tangibles $25, 000 Going concern value, 10 per cent 2, 500 AVorking capital 12, 000 Total 39, 500 14. A fair maximum return on said capital in a business of the hazards proven is 15 per cent per annum. 15. The actual cost of making 1 ton of news-print paper in an average' Canadian mill, out of recently gathered wood and without any allowance for stumpage not actually paid, was not less than $48, on or about April 1, 1918. There is no evidence or suggestion that any element of cost has since then GOVEKNMENT REGULATIONS EELATIFG TO PRICES. 819 diminished. The same tou of paper would have cost, if made in tlie United States, about $5 more ; and the average cost for the eight manufacturers considered is more than $50 per ton. ., CONCLUSION. Applying the foregoing findings to a plant having daily capacity of 100 tons : The capital invested is $39.500X100 $3,950,000 The fair annual return. 15 per cent .. 592. .500 To be oljtained by selling all of an annual production of 30,000 tons, or a profit per ton of 19. T5 Add to this average cost of manufacture, say -50. 25 And 70.00 should be the maximum selling price of 1 ton of news print in rolls f. o. b. mill. It is therefore ordered that the finding or award of the Federal Trade Com- mission be varied so as to read as follows : Tlie fair and reasonable maximum prices for each of the 10 signatory com- panies for sales of standard news-print paper to customers in the United States are: Per cwt. Roll news in car lots • $3. 50 Roll news in less than car lots o.62h Sheet news in car lots 3. 90 Sheet news in less than car lots 4. 02j All prices are f. o. b. mill. The Minnesota & Ontario Co. is directed to adjust its outstanding settlements for the months of .January, February, and March, 1918, at not over the maxi- mum hereby fixed. In no other respect does this vary from the award of the Federal Trade Cora- mission. OCTOBEB IS, 1918. Following the announcement of the decision of the United States Circuit Court, on September 25, 1918, in regard to the award of the Federal Trade Commission concerning prices for sales of standard news-print paper in the United States, the commission issued supplemental findings on October 18, 1918. Those findings and the subsequent action based upon them are given below. Supplemental Findings of the Federal Trade Commission. Subsequent to the finding and award of the members of the Federal Trade Commission acting as arbitrators in the above proceedings, which finding and award was made June 18, 1918, the said award was appealed for review to Hon. H. G. "Ward, Hon. Henry W. Rogers, Hon. Charles M. Hough, and Hon. Martin T. Mauton, judges of the United States Circuit Court for the Second Circuit, acting as reviewing arbitrators. On September 25, 1918, the reviewing arbitrators ordered that the finding or award of the Federal Trade Commission be varied so as to read as foUows : The fair and reasonable maximum prices for each of the 10 signatory com- panies for sales of standard news-print paper to customers in the United States are: Per cwt. Roll news in car lots $3. .50 Roll news in less than car lots 3. 62A Sheet news in car lots 3. 90 Sheet news in less than car lots ^ 4. 021- All prices are f. o. b. mill. Accordingly the Federal Trade Commission hereby directs that its findings bo varied as above set forth, to be effective as of April 1, 1918, for all the signatory companies, and in the case of the Minnesota & Ontario Power Co. to be effective as of January 1, 1918. 820 HISTORY or PEICBS DURING THE WAR. FINDINGS AS TO COST INCREASES. Subsequent to the finding and award of the members of the Federal Trade Commission as arbitrators, dated June 18, 1918, there were submitted to the commissioners by one of the parties hereto certain claims as to the effect of changes in rates of wages, freight rates, and wood costs since April 1, 1918. These changes cover the period from April 1 up to and Including the date of the supplemental hearing, which was July 29 and 30, 1918. The figiires presented have been analyzed and checked by tlie commission's accountants, and the accountants' report has been put in evidence by stipula- tion of parties. It appears from this stipulation that there have been increases in the cost of production of r.ews print chargeable to these three factors, as follows : Per hun- dredweight. (1) Wood cost increase (since Apr. 1, 1918) $3. 75 $0. 187 (2) Wage increase (since May 1,1918) 2.65 . 13J (3) rreightincrease(smce July 1,1918) 2.41 .12 WOOD COST INCKEASES. As noted above, the accountants' report shows an increase in wood cost for the International Paper Co., amounting to $3.75 per ton of paper. In arriving at the base price of $3.10 per hundred pounds, effective April 1, 1918, the com- mission took into account an increase in cost of $2.50 per ton of paper since the International Paper Co. and the Minnesota & Ontario Power Co. were practically on a new wood basis after April 1. In calculating the base price of $3.50 per hundred pounds, the reviewing arbitrators also apparently took into consideration the factor of increased wood cost. They say in paragraph 15 : " The actual cost of making 1 ton of news-print paper in an average Canadian mill, out of recently gathered tvood and without any allowance for stumpage not actually paid, was not less than $48 on or about April 1, 1918." No wood has been gathered since that date, wherefore the increased wood cost is taken to be included in the reviewing arbitrators' calculations. The commission, therefore, finds that no increase in price is to be made as a result of claimed increases in wood costs. INCKEASE IN WAGES. The commission finds that, since May 1, 1918, there has been an increased labor cost of $2.65 per ton, or 131 cents per hundred pounds, and it appears to be bound to add this amount to the selling prices as varied by order of the re- viewing arbitrators. The commission, therefore, finds and orders that adjustments since May 1, 1918, between parties hereto, shall be made on the following basis : Per cwt. Roll news in car lots $3. 63| Roll news in less than car lots 3. 75f Sheet news in car lots 4. 03J Sheet news in less than car lots , 4. 15f All prices are f. o. b. mill. INCREASE IN FREIGHT. The commission finds that an increase in freight rates went into effect June 25, 1918, that said increase adds $2.41 per ton, or 12 cents per hundred pounds, and that such increase became operative as to the signatory companies on July 1, 1918 ; and it appears to be also bound to add this amount to the selling prices as varied by order of the reviewing arbitrators. GOVERNMENT EEGULATIONS RELATING TO PRICES. 821 The commission, therefore, .finds and orders that adjustments since July 1, 1918, between parties hereto, shall be made on the following basis : Per hundredweight. Roll news in car lots : $3. 75J Roll news in less than car lots . 3. 87| Sheet news in car lots : 4. 15^ Sheet news in less than car lots 4. 27f All prices are f. o. b. mill. PROFIT BASIS FOR NEWSPRINT PAPER. In making their award the reviewing arbitrators calculated a net average profit of $19.75 per ton as a fair and reasonable profit. It has been shown (Federal Trade Commission Report on the News- print Paper Industry, June 13, 1917, p. 105, and included in the evidence in this case) that the prewar average profit per ton for the manufacture and sale of newsprint paper for United States and Canadian mills was as follows (figures for signatory manufacturers are added for comparison) : Year. United States mills. Inter- national Paper Co. and Minne- sota and Ontario Co. Canadian mills. Six Canadian signatories. United States and Canadian combined. Eight signatory- companies combined.i 1913 $5.53 4.94 5.59 6.75 $5.13 5.55 6.37 6.99 $6.45 6,62 8.13 9.54 $4.98 5.71 6.82 8.15 $5.70 5.35 6.34 7.55 $5.09 6.61 6.55 7.46 1914 1915 1916 (first half) 1 Brompton and Gould not included. It Is fair to presume that, on the average, capital has been invested in the manufacture of newsprint paper on an expectation of a net average profit of not more than $10 per ton. The increases in cost of wood, freight, and labor shown above are found to be the result of war conditions and to be unavoidable by either party. It has been established by governmental price-fixing authorities that during the war in case of unusual cost increase caused by war conditions and working a hardship, such increase should be equitably distributed and not passed on in toto to the purchaser. Were the commission free to express its judgment in a finding at this time it would hold that the net average profit of $19.75 was ample to absorb all in- creases in wood costs, labor costs, and freight charges up to the present time, in which case the result might be stated thus : Per ton. Per hundred- weight. Under the price fixed by the reviewing arbitrators there Is a net average profit per ton, including increased wood costs, of $19. 75 5.06 $0 987 Increased labor cost from May 1, 1918 $2 65 Increased freight cost fx-om July 1, 1918 ' ' 2 41 .25 Average net profit after absorbing increased cost 14.69 7.46 .73 Highest average, 8 signatory companies (first half 1916).. 37 Increased net profit under award 7.23 36 Feeling itself bound, however, by the order of the reviewing arbitrators, the commission finds selling prices for the three periods, April 1, 1918, May 1, 1918 and July 1, 1918, as above set forth and orders that adjustments between parties be made, as of such dates, accordingly. In all other particulars the findings of the commission of June 18, 1918. are affirmed. BIBLIOGRAPHY. There follows a brief bibliography of selected periodical refer- ences to Government price control in the United States during the war. The Official Bulletin, published by the Government, and the Commercial and Financial Chronicle give especially comprehensive statements of the formal controls as they were adopted. The New York Public Library and the Congressional Library at Washington, at the request of those interested in this inquiry, have each prepared for distribution a much fuller bibliography on this subject than can here be printed. AMERICAN ECONOMIC REVIEW. ^ Jones, Eliot. Report on anthracite and bitumiaous coal. Dec, 1917, v, 7: 919-923. Duffres, W. M. Government control of the wheat trade in the United States. 1918, V. 8: 62-87. Value and price theory in relation to price fixing and war finance. Mar., 1918, V. 8, sup.: 239-256. Report — Government marketing of Australian wheat. Dec, 1918, v. 8 : 853-858. AMERICAN REVIEW OF REVIEWS. Dillon, John .T. High cost of food, causes and remedies. Feb., 1917, v. 55 : 163-161. Seligman, E. R. A. Government price regulation. Sept., 1917, v, 56 : 28^292. ATLANTIC MONTHLY. Lubin^, D. Food control and democracy. 1917, v. 120: 260-269. CENTURY. Creel, George. Can a democratic government control prices? Interview with Joseph E. Davies. Feb., 1917, v. 93: 605-611. THE COMMERCIAL AND FINANCIAL CHRONICLE. General. War and socialism. Feb. 17, 1917, v. 104 : 597. Rushing into dictatorships. Mar. 3, 1917, v. 104:796-7. The food situation — Statutes no panacea. Mar. 10, 1917, v, 104 : 897. Fears of Government regulation. Editorial. Apr. 14, 1917, v. 104 : 1420. ^ One way of rendering service to the country — The food question. Apr. 14, 1917, V. 104:1432. Secretary of the Navy reduces prices of torpedoes from K. W. Bliss Co. Apr. 21, 1917, V. 104 : 1554. Herbert C. Hoover to handle Nation's food problems. Apr. 21, 1917, v. 104: 1555. Danger of Government control. Editorial. May 5, 1917, v. 104 : 1730 Patriotism to and by Government. May 26, 1917, v. 104 : 2051-2053. 822 GOVEEHMENT REGULATIONS EELATIZsTG TO PRICES. 823 E. H. Gary on principles for wliicli we are figliting. May 26, 1917, v. 104: 2067. Regulating prices — The low supply and demand. June 16, 1917, v. 104 : 2382-2385. Food control— The latest dictatorship bill. June 16, 1917, v. 104 : 2385. The food control bill. June 30, 1917, v. 104 : 2592. President's warning against high prices, July 14, 1917, v. 105 : 135. The resort to commissions and what it means. July 21, 1917, v. 105 : 218. The food control bill enacted. Aug. 11, 1917, v. 105 : 540. The Food Administration — Its purposes and plans. Aug. 18, 1917, v. 105 : 664. Federal control of wheat and flour. Aug. 18, 1917, v. 105 : 065. What the New War Industries Board may accomplish. Aug. 18, 1917, v. 105 : 667. Has Congress power to create a dictator? Aug. 25, 1917, v. 105:749-51. Fixing prices of food and fuel. Sept. 1, 1917, v. 105 : 850-52. Labor strikes, price fixing, and the war. Sept. 22, 1917, v. 105 : 1140-42. The retailer and Government price control. Nov. 8, 1917, v. 105 : 1745. Business as usual — What does it mean? Nov. 10, 1917, v. 105:1834-36. L. E. Pierson on obligations of Government and business in the war. Nov. 17, 1917, V. 105:1941. United States Chamber of Commerce on progress of Government price con- trol. Dec. 1, 1917, V. 105 : 2144. Foreign trade council urges coordination of price fixing and taxation. Dec. 1, 1917, V. 105:2147. Our experiments in " Government control." Jan. 19, 1918, v. 106 : 218. Proposed Government control of security issues. Jan. 19, 1918, v. 106 : 235. Congress, the President, and the " War Council." Jan. 26, 1918, v. 106 : 325. Impending price-fixing bill. Editorial. Feb. 2, 1918, v. 106 : 418. Executive order regulating control of foreign exchange by Federal Reserve Board. Feb. 2, 1918, v. 106:438. Discussion of Government control. Editorial. Feb. 9, 1918, v. 106 : 524. No general price fixing on agricultural products. Mar. 2, 1918, v. 106 : 876. Senator Lodge in criticism of Fuel Administration and price fixing of Gov- ernment. Mar. 2, 1918, v. 106 : 880. Committee to pass on prices for basic raw materials for Government. Mar. 23, 1918, V. 106:1187. Retrospect of 1917. Mar. 30, 1918, v. 106 : 1280-86. Is there a legal limit to price control? April 6, 1918, v. 106:1394. Requirements division of War Industries Board to carry out policies of B. M. Baruch. Apr. 13, 1918, v. 106 : 1524. Charles H. Sabin on Government price regulation. May 25, 1918, v. 106 : 2169. What is profiteering and who ai-e the profiteers? June 8, 1918, v. 106:2376. Retrospect of 1917. June 29, 1918, v. 106 : 2698. How business runs the Government. Aug. 17, 1918, v.. 107: 635. Our apathetic acceptance of control and operation. Aug. 31, 1918, v. 107 : 837. Proposed Government control of retail dry goods." Oct. 12, 1918, v. 107: 1439. Judge Gary's view as to readjustment period. Nov. 16, 1918, v. 107: 1884. Reconstruction and resumption. Release from Government control. Nov. 23, 1918, V. 107 : 1951. Fixed prices discontinued. Dec. 7, 1918, v. 107 : 2148. A proposal for the governmental fixing of retail prices. Dec. 14, 1918, v. 107 : 2221. Chas. E. Hughes sees greater efficiency in private than Government control. Dec. 14, 1918, V. 107 : 2236. 824 ' HISTORY OY PEICES DURING THE WAR. Acids. Sulphuric and nitric acid prices. June 29, 1918, v. 106 : 2712. Alcohol. Wood alcohol output taken by Governmcut. Dec. 22, 1917, v. 105 : 2411. Alumin*um. Rejection of aluminum price recommended by Council of Defense. July 7, 1917, V. 105 : 22. Aluminum prices approved by the President. Mar. 9, 1918, v. 106 : 983. New aluminum prices approved. June 1, 1918, v. 106: 2294. Aluminum prices continued. Aug. 24, 1918, v. 107 : 759. Arsenic. Fixing of arsenic prices by United States Government. June 1, 1918, v. Binder Twine. Control of binder twine output by Government. Jan. 12, 1918, v. 106 : 142. Scale of prices announced by Food Administration. Mar. 2, 1918, v. 106: 879. Castor-Oil Beans. Price of $4.50 per bushel fixed. Nov. 2, 1918, v. 107 : 1714. Cement. Cement price fixing by the Government. May 25, 1918, v. 106 : 2183. Copper. Copper producers' offer to the Government. Mar. 24, 1917, v. 104 : 1108. Government order for copper at a fixed price. June 80, 1917, v. 104 : 2603. Government lowers price of copper. July 14, 1917, v. 105 : 133. Government fixed price. Sept. 22, 1917, v. 105 : 1165. Attitude of copper trade toward Government's price. Sept. 29, 1917, v. 105 : 1264. Conference of copper interests with Government officials. May 4, 1918, v. 106 : 18.56. Government's price continuing. Wall Street comment. May 25, 1918, v. 106 : 2182. Increase in copper price by War Industries Board. .July 6, 1918, v. 107 : 35. Copper to remain at 26 cents. Comment. Aug. 10, 1918, v. 107 : 562. Copper price continued. Comment. Nov. 2, 1918, v. 107 : 1715. Copper price continued. Nov. 23, 1918, v. 107 : 1967. Cotton. A suggestion that tho Government contract ahead for the growing cotton crop. June 30, 1917, v. 104 : 2593. Denial of cotton price-fixing movement. Feb. 9, 1918, v. 106 : 553. War Trade Board's announcement concerning cotton shipments to Spain. Apr. 13, 1918, V. 106:1524. GOVERNMENT REGULATIONS RELATING TO PRICES. 825 Conference looking to stabilization of cotton industry. Apr. 13, 1918, v. 106:1528. Bill fixing price of raw cotton at 20 cents. Apr. 20, 1918, v. 106 : 1627. Cotton manufacturers' resolutions on price fixing, coal priority, etc. May 11, 1918, V. 106 : 1961. Tentative plan for price fixing of cotton goods. June 15, 1918, v. 106 : 2506, Government plans concerning cotton price fixing. June 29, 1918, v. 106 : 2708. Beverly D. Harris on stabilization of cotton prices. July 13, 1918, v. 107 : 130. Proposed fixing of cotton price. Sept. 7, 1918, v. 107 : 949. Developments growing out of reports of cotton price fixing. Sept. 21, 1918, V. 107 : 1150 ; Sept. 28, 1918, v. 107 : 1250 ; Oct. 12, 1918, v. 107 : 1438. Cotton price fixing unnecessary. Nov. 9, 1918, v. 107. 1788. Cotton goods prices continued. Nov. 23, 1918, v. 107 : 1964. Cotton price fixing to cease Jan. 1. Dec. 14, 1918, v. 107 : 2238. Cotton Linters. Questionnaire on cotton linters issued by War Industries Board. June 1, 1918, V. 106 : 2289. Cottonseed. Regulations to prevent hoarding and speculation in cottonseed. Nov. lOj 1917, v. 105 : 1853. Rules for cottonseed buyers and sellers. Aug. 10, 1918, v. 107 : 562-3. Prevailing price of cottonseed held to be too low by Texas commissioner. Aug. 24, 1918, V. 107 : 755. Price stabilization of cottonseed. Sept. 21, 1918, v. 107 : 1151. Speculation in cottonseed. Nov. 10, 1917, v. 105 : 1853. Feetilizees. Proclamation licensing fertilizer industry. Mar. 2, 1918, v. 106 : 880. Food. ' general. The food riots and measures of relief. Feb. 24, 1917, v. 104 : 699. The food shortage — the seat of the disease. Mar. 3, 1917, v. 104 : 796-7. J. Ogden Armour urges Government control of food. Apr. 14, 1917, v. 104 : 1447-8. The food problem and the farmer — normal methods best. Apr. 21, 1917, v. 104:1536-7. Secretary Houston would fix food prices. Apr. 21, 1917, v. 104: 1556. Herbert C. Hoover appointed Food Administrator. May 26, 1917, v. 104 : 2072. The administration's food-control bills. June 9, 1917, v. 104 : 2298-9. Herbert C. Hoover outlines Food Administration program. June 9, 1917, v. 104 : 2301-2. The Administration's food-control bills. June 30, 1917, v. 104 : 2608-9 ; July 14, 1917, v. 105 : 138 ; July 28, 1917, v. 105 : 340-1 ; Aug. 11, 1917, v. 105 : 555-6. New York Legislature in session to consider food bill. Aug. 4, 1917, v. 105 : 452-8. Text of food-control bill. Aug. 11, 1917, v. 105 : 556-7-8. Text of food-survey bill. Aug. 11, 1917, v. 105 : 559. Food control launched. Aug. 18, 1917, v. 105 : 646-7. 826 HISTORY OF PRICES DURING THE WAR. Federal control of food to begin Nov. 1, Oct. 13, 1917, v. 105 : 1472. The President defines fair profit for foodstuffs as normal average obtained prior to July, 1014. Dec. 8, 1917, v. 105 : 2231. Review of course of food prices by Mr. Hoover. Nov. 16, 1918, v. 107 : 1878-9. BAKING INDUSTBY. > Government regulation of baking industry. Nov. 17, 1917, v. 105 : 1944-46. Food Administration's announcement regarding baking rules under new license regulations. Feb. 9, 1918, v. 106 : 549. CANNEKS. Maximum margins allowed canners. Apr. 27, 1918, v. 106 : 1747. COFFEE. Licensing of green-coffee dealers to prevent outside speculation. Fell. 9, 1918, V. 106:549. Speculation in green coffee prohibited. Feb. 9, 1918, v. 106:550. New York Coffee and Sugar Exchange's resolution banning circulars encour- aging speculation. Feb. 23, 1918, v. 106 : 771. New division in Food Administration to pass on coffee. Mar. 2, 1918, v. 106 : 878. Regulations for green-coffee dealers. May 4, 1918, v. 106 : 1852. Coffee import ruling. June 1, 1918, v. 106: 2288. Coffee-trade committee to cooperate with United States Food Administration. June 15, 1918, v. 106:2505. ]\Iodification of coffee rvdes urged. June 22, 1918, v. 106: 2611, Coffee price stabilization. Oct. 19, 1918, v. 107 : 1535. Coffee futures ordered liquidated at fixed maximum prices. Nov. 9, 1918, v. 107 : 1787. Coffee Exchange resumes trading in futures. Dec. 28, 1918, v. 107 : 2427. Coffee regulations. Dec. 28, 1918, v. 107:2428. EGGS AND DAIRY PRODUCTS. Exchanges agree to abolish speculation in butter and eggs. Nov. 17, 1917, v. 105 : 1948. Wholesale prices for butter for New York and Chicago fixed by Food Admin- istration. Feb. 2, 1918, v. 106 : 446. Regulations to prevent speculation in butter. June 22, 1918, v. 106 : 2610. Margin of profit established on cheese. June 22, 1918, v. 106 : 2611. Regulations governing butter. Aug. 3, 1918, v. 107. 460. Cheese put under regulation. Aug. 10. 1918, v.s 107 : 559. GRAINS. Exchanges fix maximum prices for wheat futures. May 19, 1917, v. 104 : 1972. Corn maximum fixel by Chicago Board of Trade. June 9, 1917, v. 104 : 2302. Government control of wheat trade planned. June 30, 1917, v. 104 : 2604. Chicago Board of Trade stops trading in July corn. July 7, 1917, v. 105 : 25. Chicago Board of Trade takes further steps to control grain speculation. July 14, 1917, V. 105 : 131. Wheat prices of various countries. July 14, 1917, v. 105:132. GOVERNMENT REGULATIONS RELATING TO PRICES. 827 Chicago Board of Trade empowered to stop trading in grain futures and to fix prices. July 21, 1917, v. 105:236. Chicago Board of Trade stops trading in September corn. Aug. 4, 1917, v. 105 : 456. Chicago Board of Trade to suspend future trading in wheat, Aug. 18, 1917, V. 105 : 669. Price for 1917 wheat fixed. Sept. 1, 1917, v. 105 : 864-66. Future trading in wheat ends in Chicago. Sept. 1, 1917, v. 105 : 867. Government agency assumes control of wheat markets. Sept. 8, 1917, v. 105 : 959. Chicago Board of Trade and Government officials agree to limit speculation in grain. Nov. 24, 1917, v. 105 : 2048. Chicago Board of Trade decides to retain maximum of $1.28 on corn futures. Jan. 12, 1918, v. 106 : 136. Discontinuance of January trading in corn by Chicago Board of Trade. Feb. 2, 1918, v. 106 : 446. The price of wheat— What shall it be? Feb. 23, 1918, v. 106 : 746. Bill increasing minimum price of wheat to $2.50 a bushel favorably re- ported. Feb. 23, 1918, v. 106 : 770. Maximum price for oats fixed at 93 cents by Chicago Boai'd of Trade. Mar. 2, 1918, V. 106 : 875. Gore proposal to increase minimum price of wheat. Mar. 23, 1918, v. 106 : 1189. Food Administration's new wheat restrictions. IMar. 30, 1918, v. 106 : 1296. Disagreement of congressional conferees on wheat price, xlug. 13, 1918, v. 106 : 1523. Trading in corn and oats on Chicago Board of Trade. Apr. 13, 1918, v, 106:1523. House rejects higher wheat price. Apr. 20, 1918, v. 106 : 1626. Move toward commandeering wheat. May 11, 1918, v. 100 : 1959. Government price regulation. Charles H. Sabin. May 25, 1918, v. 106:2169. United States Grain Corporation seeks modification of grain regulations. June 15, 1918, v. 106 : 2705. President Wilson grants United States Grain Corporation authority to pay higher prices for wheat. June 29, 1918, v. 106 : 2705. Proposed regulation of wheat flour milling industry, July 6, 1918, v. 107 : 33. Higher wheat prices announced by the Food Administration. July 6, 1918, v. 107 : 33. The farmer and the price of wheat. July 13, 1918, v. 107 : 11.3. Senate and House agree on $2.40 for wheat crop. July 13, 1918, v. 107 : 130. Excess profits of millers to be returned to Government in form of flour. July 13, 1918, V. 107 : 136. Plans of Food Administration for handling 1918 rice crop. Aug. 3, 191S, v. 107 : 458. New flour milling control. Aug. 10, 1918, v. 107 : 558-9. Price for 1919 wheat fixed by the President. Sept. 7, 1918, v. 107 : 945. Maximum grain prices abolished by Chicago Board of Trade. Oct. 12, 1918, v. 107 : 1436. Movement for stabilization of corn prices. Oct. 26, 1918, v. 107 : 1620. Wheat price guaranteed to American farmers as compared with that paid by England. Dec. 7, 1918, v. 107 : 2145-6. ICE. Food Administratiri to prevent profiteering in ice. May 4, 1918, v. 106 : 1854. 828 HISTORY OF PRICES DURING THE WAR. United States Food Administration fixes minimum price for liogs. Nov. 10, 1917, V. 105 : 1850. Investigating commission reconiniends minimum price for liogs. Nov. 17, 1917, V. 105 : 1946. Meat packers' profits fixed by Government. Dec. 15, 1917, v. 105 : 2325. No increase in meat prices because of temporary scarcity. Feb. 2, 1918, v. 106 : 447. Meat restrictions relaxed. Mar. 9, 1918, v. 106 : 979. Hoover's recommendations for control of meat industry. Apr. 6, 1918, v. 106 : 1418. Packers protest against Federal Trade Commission's report on profiteering. July 6, 1918, V. 107 : 31. Minimum hog prices recommended by advisory committee. Oct. 19, 1918, v. 107 : 1583. MILK. The milk situation in New York State — Government not to intervene. Sept. 29, 1917, V. 105 : 1270. Federal milk commission allows increase in price for January. Jan. 5, 1918, V. 106 : 24. Federal milk commission reduces February prices for milk. Feb. 2, 1918, v. 106 : 446. June milk prices fixed by Federal milk commission. June 8, 1918, v. 106 : 2395. July prices fixed. July 6, 1918, v. 107 : 33. August and September milk prices. Aug. 3, 1918, v. 107:460. October milk prices — Reduction proposed. Oct 12, 1918, v. 107 : 1436. November prices — Dairymen's demands criticized by Mr. Hoover. Nov. 2, 3918, V. 107:1714. Further increase in November milk prices — Protest by Mayor Hylan. Nov. 16, 1918, V. 107 : 1880. Federal control of milk discontinued. Dec. 28, 1918, v. 107 : 2428. OEANGES. Margin of profit on oranges fixed. Nov. 19, 1918, v. 107 : 1788. PRUNES AND RAISINS. Prices announced by Food Administration. June 22, 1918, v. 106 : 2611. SARDINES. Food Administration fixes price. June 15, 1918, v. 106 : 2505. SUGAR. New York Coffee and Sugar Exchange stops trading in sugar futures. Aug. 18, 1917, V. 105 : 669. Conference of representatives of New York Coffee and Sugar Exchange in Washington. Aug. 25, 1917, v. 105 : 765. Reduction agreed to by sugar producers. Sept. 1, 1917, v. 105 : 866. Sugar refiners agree to import sugar through Food Administration. Sept. 8, 1917, V. 105 : 960. President's proclamation calling for licensing of sugar industry. Sept. 22, 1917, V. 105 : 1163-64. The sugar situation. Nov. 24, 1917, v. 105 : 2049. GOVERNMENT REGULATIONS RELATING TO PRICES. 829 Basic price for Cuban sugar fixed. Dec. 8, 1917, v. 105 : 2230. Senate committee's investigation of the sugar shortage. Dec. 22, 1917, v. 105 : 2418-20. Mr. Hoover's explanation of sugar shortage. Dec. 29, 1917, v. 105 : 2500-2. Amount to be charged on $100,000,000 Cuban sugar credit. Mar. 23, 1918, V. 106: 1177. Further sale of sugar acceptances. June 8, 1918, v. 106 : 2383. Oscar S. Straus to determine sugar cost. June 22, 1918, v. 106: 2611. New sugar restrictions. June 29, 1918, v. 106 : 2706-7. Increase in basic prices of sugar. June 29, 1918, v. 106 : 2707. New sugar restrictions effective August. Aug. 3, 1918, v. 107: 458. Increase sought in price for Cuban sugar crop. Aug. 3, 1918, v. 107 : 459. One-hundred-million-dollar sugar syndicate disbanded. Aug. 10, 1918, v. 107: 553. Food Administration to equalize prices of old and new sugar crops. Sept. 7, 1918, V. ia7: 948. Cane-sugar price fixed by Equalization Board. Sept. 14, 1918, v. 107 : 1056. Cuban-sugar contract. Oct. 26, 1918, v. 107: 1620, FtGELS. Reduction in bituminous price agreed upon. June 30, 1917, v. 104 : 2603^. Secretary Baker repudiates bituminous prices agreement. July 7, 1917, v. 105: 20. Oil for Navy Department — To fix prices later. July 7, 1917, v. 105: 21. Bituminous-coal prices fixed. Aug. 25, 1917, v. 105 : 766. /,--/' Anthracite-coal prices fixed. Aug. 25, 1917, v. 105 : 767. Coal committee appeals to operators and miners. Aug. 25, 1917, v. 105 : 768, The endeavor to regulate the coal industry. Oct. 13, 1917, v. 105: 1455.^ Maximum prices for by-product coke. Nov. 24, 1917, v. 105 : 2053. Garfield's preference order. Editorial. Jan. 19, 1918, v. 106 : 214. Benumbing effects of Fuel Administrator's order. Jan. 19, 1918, v. 106 : 221.- The Fuel Administrator's powers. Jan, 26, 1918, v. 106 : 327. The compensation. Discussion of fuel order. Jan. 26, 1918, v. 106 : 328. Bill authorizing President to fix oil prices. Mar. 30, 1918, v. 106 : 1300. Gasoline and fuel prices announced, June 1, 1918, v. 106 ; 2295. M. L. Requa warns hoarding oil producers that Government will not advance price. June 1, 1918, v. 106 : 2295. National petroleum war service committee asked to cooperate in stabilizing crude oil prices. June 29, 1918, v. 106 : 2710. Criticism of Fuel Administration. Editorial. July 13, 1918, v. 107: 104. Recommendations for stabilizing prices of crude oil. July 20, 1918, v. 107: 241. A. C. Bedford on what has been accomplished by the oil industry without Government regulation — Stabilizing of prices. July 27, 1918, v. 107: 356-7. National petroleum committee plans to stabilize price and maintain output. Aug. 17, 1918, v. 107 : 655. Fuel Administration's announcement concerning stabilization of oil prices. Aug. 31, 1918, V. 107 : 855-6. Glycerin. Dynamite glycerin prices. Aug. 24, 1918, v. 107 : 761. Hides, Skins, and Leather. Tanners' council approves leather-import restrictions and fixing of prices. Apr. 27, 1918, v. 106 : 1747. Maximum prices on hides. May 4, 1918, v. 106 : 1853. 830 HISTORY OF PRICES DURING THE WAR. Tanners agree to leave price fixing to Government. May 4, 1918, v. 106 : 1853. War Industries Board announces prices on pickled sheep pelts. June 15, 1918, V. 106: 2.506. Prices announced for black harness leather. June 29, 1918, v. 106: 2708. New hide prices announced. July 27, 1918, v. 107 : 354. Sole and belting leather prices. Aug. 24, 1918, v. 107 : 757. Iron and Steel. \J SteeSjuen confirm reduced prices to United States Government. Apr. 28^ 1917, V. 104: 1654. The Government and steel prices. June 23, 1917, v. 104: 250.5, Steel interests agree to Government price. July 14, 1917, v. 105 : 133. Steel prices approved by President Wilson. Sept. 29, 1917, v. 105: 1263-64. Steel manufacturers asked to give pledges that Government work receive priority. May 4, 1918, v. 106 : 1854. Changes in steel differentials. Aug. 10, 1918, v. 107 : 564. Iron and steel prices in effect until Dec. 31. Sept. 28, 1918, v. 107 : 1252. New prices and extras in iron bars. Oct. 19, 1918, v. 107 : 1539. Steel committee advises continuance of Government supervision of ' indus- try. Nov. 16, 1918, v. 107 : 1885. Steel control and price fixing to end Jan. 1. Judge Gary's vieAvs. Dec. 7, 1918, V. 107 : 2240. Lead. Government gets supply of lead. Aug. 11, 1917, v. 105 : 566. Lead price fixing unnecessary. Dec. 22, 1917, v. 105 : 2412. Price at which Government's lead products requirements ' are to be met. Apr. 13, 1918, V. 106 : 1525. Lime. Lime and acetone taken by Government. Dec. 22, 1917, v. 105 : 2412. LUMBEE. Spruce lumber prices to be paid by the Government. Apr. 27, 1918, v. 106 : 1747. Lumber prices agreed upon. June 15, 1918, v. 106 : 2507 ; June 22, 1918, V. 106 : 2615. Prices for northwestern fir and southern pine. June 29, 1918, v. 106 : 2708-9. Prices for long and short leaf Virginia and Carolina pine lumber. July 13, 1918, V. 107 : 137. Maximum prices for southern pine lumber. .July 13, 1918, v. 107 : 138. New England spruce lumber prices. Aug. 3, 1918, v. 107 : 461. Increase in basic price for hemlock. Sept. 7, 1918, v. 107 : 949. Lumber prices continued. Oct. 26, 1918, v. 107 : 1621-2. Manganese. Manganese ore prices annoimced by War Industries Board. June 1, 1918, V. 106 : 2294. Freight rates on manganese ore. Aug. 24, 1918, v. 107 : 759. Nickel. Nickel prices agreed upon. Apr. 6, 1918, v. 106 : 1419. Niteate. Nitrate soda purchased in Chile by United States for farmers. Jan. 12, 1918, V. 106 : 1.36. Plans of nitrate sales to farmers. Jan. 26, 1918, v. 106: 352. Formation of nitrate board by Allies. Jan. 26, 1918, v. 106 : 352. GOVEENMENT EEGULATIOl^S RELATING TO PRICES. 831 Papee. A principle at issue in regulation of the price of newsprint paper. Feb. 24, 1917, Y. 104:701. Proposal to Federal Trade Commission to fix paper prices. Feb. 24, 1917, V. 104 : 714. Government price fixing— The newsprint paper case. Mar. 10, 1917, v. 104 : 898. The Canadian newsprint paper manufacturers. Mar. 10, 1917, v. 104 : 903. Newsprint paper manufacturers indicted under Sherman anti-trust law. Apr. 28, 1917, v. 104 : 1667. Federal Trade Commission and newsprint paper price. Apr. 28, 1917, v. 104 : 1668-70. Senate asks Trade Commission to adopt strictures against newsprint manu- facturers. July 7, 1917, V. 105 : 23-4. The Government's attempt to fix the price of newsprint paper. -July 14, 1917, V. 105 : 114. Price of paper to Government fixed at 21 cents per pound. Sept. 8, 1917, V. 105 : 959-60. Trade Commission opens to publishers newsprint paper records. Sept. 29, 1917, V. 105 : 1268. Trade Commission on paper prices — Renews recommendation for pooling of product. Sept. 29, 1917, v. 105 : 1268. The newsprint paper problem again. Oct. 20, 1917, v. 105 : 1563. Canadian Government not satisfied with experiment of fixing prices on pa- per. Nov. 3, 1917, V. 105 : 1746. Seeking Government control of the output of newsprint paper. Jan. 19, 1918, V. 106 : 222. Newsprint paper prices fixed by Federal Trade Commission. June 22, 1918, V. 106 : 2613. Platinum. Platinum commandeered by the Government. Mar. 2, 1918, v. 106 : 880. • The commandeering of platinum by the Government. Mar. 9, 1918, y. 106 : 982. Platinum metals commandeered by the Government. May 18, 1918, v. 106 : 2074. ■^ Rubber. Crude rubber prices fixed by War Trade Board. May 4, 1918, v. 106 : 1853. New rubber prices announced. May 18, 1918, v. 106 : 2073. Shoes. Maximum prices on shoes. Oct. 12, 1918, v. 107 : 1437. Abandonment of schedule. Dec. 28, 1918, v. 107 : 2433. SlLVEE. Control of silver by Government. Nov. 17, 1917, v. 105 : 1938. Bill providing for melting of silver dollars and fixing price at $1 an ounce. ^ Apr. 13, 1918, v. 106 : 1513. Treasury Department's announcement concerning price fixed for silver. Aug. 24, 1918, V. 107 : 744. Sulphur. Sulphur control taken over by War Industries Board, .Tuly 13, 1918, v. 107 : 140. 882 HISTORY OF PRICES DURING THE WAR. Wool. Boston wool siipply to be held for the United States. Apr. 7, 1917, v. 104: 1341. New regulations governing wool imports. Jan. 12, 1918, v. 106 : 138. Woolen mills called upon to hold looms for Government — Trading in Bos- ton stops. Apr. 13, 1918, v. 106:1528. Control of Canadian wool exports. May 18, 1918, v. 106 : 2073. Other developments in control of wool by Government. May 25, 1918, v. 506:2180. Likelihood of wool shortage refuted by secretary of National Wool Growers' Association. May 26, 1918, v. 106:2181. Regulation for liandling wool clip. June 8, 1918, v. 106 : 2396, Government wool auctions. Dec. 28, 1918, v. 107 : 2431. Wool Grease. Prices on wool grease. Nov. 9, 1918, v. 107 : 1788. Zinc. Zinc prices approved by the President. Feb. 16, 1918, v. 106 : 663. Zinc prices continued. May 25, 1918, v. 106 : 2182 ; June 1, 1918, v. 106 : 2295 ; Aug. 31, 1918, V. 107 : 858. ECONOMIC WORLD. National Government and regulation. ]Mar. 10, 1917, N. S. v. 13: 327-328. Economic difficulties in the way of successful government price fixing, July 21, 1917, N. S. v. 14 : 78-79. Government's problem of fixing prices. Aug. 11, 1917, N. S. v. 14 : 183-184. Concatenation of problems produced by governmental price fixing. Sept. 22, 1917, N. S. v. 14 : 399-400. National Fuel Administrator Garfield on the price-fixing policy of the Government. Sept. 29, 1917, N. S. v. 14 : 436-438. Putnam, G. E. Government control of food prices as the economist views it. 1917, N. S. V. 14 : 508-511. Gary, E. H. American steel industry, the Government^ and the war. 1917, N. S. V. 14 : 616-618. Gay, Edwin F. War prices and the problems involved in their control. Dec. 28, 1917, N. S. V. 14 : 906. Anderson, B. M., Prospect of success of Government price fixing in the United States. Jan. 5, 1918, N. S. v. 15 : 11. Creation of the price-fixing committee under the War Industries Board. Mar. 23, 1918, N. S. v. 15 : 409. Administration plans for an extension of price fixing. Apr. 20, 1918, N. S. v. 15 : 507-508 ; 589-590. Both governmental and cooperative price fixing to cease on Jan. 1. Jan. 4, 1919, N. S. V. 17 : 13. FORUM. Wheat farmers' dilemma. Sept., 1918, v. GO : 257-266. JOURNAL OF POLITICAL ECONOMY. Hitchcock, Curtice M. The War Industries Board, its development, organi- zation, and functions. June, 1918, v. 26 : 545-567. Notz, Wm. World's coal situation during the war, June, 1918, v. 26 : 567- 612 ; July, 1918, v. 26 : 673-705. Hamilton, Walton H. The requisites of a national food policy. June, 1918, V. 26 : 612-638. GOVERNMENT REGULATIONS RELATING TO PRICES. 833 POLITICAL SCIENCE QUARTERLY. Haney. L. H. Price fixing in the United States during tlie war. Mar., 191S, V. 34 : 104-126. PUBLIC. Jones, F. R. Precedence of copper in price fixing. Aug. 10, 1918, v. 21: 1013-1016. Indictment of price fixing. 1918, v. 21 : 846-848. QUARTERLY JOURNAL OF ECONOMICS. Blakey, F. G. Sugar prices and distribution under food control. Aug., 1918, V. 32 : 567-596. Berglund, A. Price fixing in the iron and steel industry. Aug., 1918, v. 32 : 597-620. Eldred, W. Wheat and flour trade under Food Administration control. Nov., 1918, V. 33:1-70. Morse, L. K. Price fixing of copper. Nov., 1918, v. 33 : 71-106. Taussig, F. W. Price fixing as seen by a price fixer. Feb., 1919, v. 33 : 205-241. SCRIBNER'S. Harger, C. M. Farmer and $3 wheat. 1918, v. 64 : 80-86. Payne, John L. Regulation of food prices. Nov.. 1918, v. 64 : 581-580. UNPOPULAR REVIEW. Means, D. M. Price fixing by Government. Apr., 1918, v. 9 : 312-327 WORLD'S WORK. Price fixing and production. Nov., 1917, v. 35 : 12-13. PUBLICATIONS OF A GENERAL NATURE CONTAINING CONTRIBUTIONS TO THE BIBLIOGRAPHY OF GOVERNMENT PRICE REGULATION. Annalist. Congressional Record. Journal of Commerce. Literary Digest. Monthly Review, Department of Labor. New York Times. Official Bulletin. War Trade Board Journal. TRADE JOURNALS WHOSE COLUMNS THROUGH 1917 AND 1918 PROVIDE PERTINENT REFERENCES TO GOVERNMENT PRICE CONTROL. American Fertilizer. American Sheep Breeder. American Wool and Cotton Reporter. Chemical and Metallurgical Engineering. Coal Age. Engineering and Mining Journal. India Rubber World. Iron Age. Iron Trade Review. National Wool Grower. Oil, Paint, and Drug Reporter. Textile World Journal. 125547°— 20 58 PRICE BULLETINS ISSUED BY THE WAR INDUSTRIES BOARD. 1. Summary. 2. International price coiuparisons. 3. Government control over prices. 4. Pi-ices of foods. 5. Prices of clothing. 6. Prices of building materials. 7. Prices of chemicals. 8. Piices of feed and forage. ..M. Prices of wheat and wheat products. 10. Prices of corn and corn products. 11. pj-ices of oats, rice, buckwheat, and their products. 12. Prices of barley, hops, rye, and their products. 13. Pi-ices of sn^a rand related products. 14. Prices of vegetables and truck. 1.5. Prices of edible vegetable oils. 16. I'rices of fi-uits, nuts, and wine. 17. Prices of spices and condiments. 18. Prices of tea, coffee, and cocoa. 19. Prices of tobacco and tobacco prod- ucts. 20. F'rices of live stock, meats, and fats. 21. Prices of poultry and dairy pi'od- uets. 22. Prices of fish and oysters. CLOTBTNG. 23. Prices of cotton and cotton prod- ucts. 24. Prices of wool and wool products. 25. Prices of silk and silk products. 26. Prices of hides and skins and their products. 27. Prices of hatters' fur and fur felt hats. 28. Prices of hair, bristles^nid feathers. 29. Prices of buttons. '^ RTTBEER. PAPER, FIBERS. 30. Prices of rubber ;md rubber prod- ucts. 31. Prices of paper. 32. Prices of fibers and fiber products. 33. Prices of iron, steel, and their prod- ucts. 34. Prices of ferroalloys, nont'erroiis and rare metals. FUELS. 35. Prices of coal and coke. 36. Prices of petroleum and its prod- ucts. 37. Prices of mntches. BUILDING MATERIALS. 38. Prices of clay products. 39. Prices of sand and gravel. 40. Prices of quarry products. 41. Prices of cement. 42. Prices of glass. 43. Prices of lumber. 44. Prices of paints ruid varnishes. CHEMICALS. 45. Prices of mineral acids. 46. Prices of heavy chemicals. 47. Prices of miscellaneous inorganic chemicals. 48. Prices of fertilizers. 49. Prices of soaps and glycerin. .50. Prices of es.sential oils, flavoring and perfumery materials. 51. Prices of wood-distillation prod- ucts, and naval stores. 52. Prices of natural dyestulfs and tanning chemicals. .53. Prices of coal-tar crudes, intermedi- ates, and dyes. 54. Prices of drugs and pharniiiceu- ticals. .55. Prices of proprietary. preparations. 56. Prices of explosives. .57. Prices of miscellaneous organic chemicals. Copi vs of the above bulletins may be obtained at a nominal price from the Superintendent of Documents, Government Printing OflSce, Washington, D. C. 834 o o