As shown above, monthly average quoted prices for hard spring wheat flour in the northwestern district (first family patent) based upon millers' quotations f. o. b. mill increased from $10.31 per barrel in January, 1919, to $15.66 per barrel in May, 1920, an increase of 52 per cent, and then declined to $6.88 per barrel in September, 1922, or 33 per cent below the January, 1919, average price. The monthly average quotation for the same grade of hard winter wheat flour in the southwestern district increased from $10.08 per barrel f. o. b. mill in January, 1919, to $13.32 per barrel in May, 1920, an increase of 32 per cent, and then declined to $5.79 per barrel in September, 1922, or 43 per cent below the January, 1919, average price. The annual average purchase price of wheat for companies whose business year ended in December for all districts was $2.36 per bushel in 1919, $2.54 per bushel in 1920, then declined to $1.49 per bushel for 1921 and to $1.24 per bushel in 1922. There was considerable difference for different sections of the country, as shown in the following table: TABLE 36.-Annual average purchase prices of wheat per bushel f. o. b. mills by flour milling companies by districts, 1919-1922 The annual average purchase prices f. o. b. mill were generally somewhat higher in the southeastern and central and eastern districts and lowest for the mountain and coast districts. The annual average price of hard spring wheat used by millers in the northwestern district was slightly higher in 1919, 1921, and 1922 (but the same in 1920) than the hard winter wheat consumed by millers in the southwestern district. The decrease in the annual average price from 1920 to 1922 was slightly more than 50 per cent for all districts, 48 per cent in the mountain and coast district, about 43 per cent in the central and eastern, about 50 per cent in the northwestern and southeastern districts, and nearly 55 per cent in the southwestern district. The monthly average price of No. 1 northern hard spring wheat at Minneapolis increased from $2.21 per bushel in January, 1919, to $3.09 per bushel in May, 1920, an increase of 40 per cent, and then fell to $1.10 per bushel in September, 1922, or 50 per cent below the average price in January.5 In Kansas City the monthly average price of No. 2 hard winter wheat increased from $2.31 per bushel in January, 1919, to $2.98 per bushel in May, 1920, an increase of 27 per cent, and then declined to $1.04 per bushel in September, 1922, or 55 per cent below the average price of January, 1919. 'See United States Department of Agriculture, The Wheat Situation, 1923, p. 97. Data collected and published by the United States Bureau of Labor Statistics show that bread prices have not decreased in like degree with the prices of wheat and flour. For example, in Minneapolis the retail price of a 1-pound loaf of bread was 9.2 cents in January, 1919, and 9 cents in September, 1922; in Kansas City it was 9.3 cents per pound in January, 1919, and 7.9 cents in September, 1922; in Boston, 9.1 cents per pound in January, 1919, and 8.5 cents in September, 1922; and in New York City, 10 cents in January, 1919, and 9.8 cents in September, 1922. From January, 1919, to September, 1922, the monthly average quoted prices of flour declined 33 per cent in the northwestern district and 43 per cent in the southwestern district, wheat prices declined 50 per cent in Minneapolis and 55 per cent in Kansas City, while bread prices declined about 2 per cent in Minneapolis, about 15 per cent in Kansas City, due to a price war, 6.6 per cent in Boston, and 2 per cent in New York City. Appendix Table 15 shows the monthly average price of bread per 1-pound loaf in 24 different cities. This comparison shows that the decline in wheat prices, so disastrous to the farmer, has benefited the purchaser of bread very little. CHAPTER VII FLOUR AND FEED PACKAGES Section 1. Origin and source of information. The great diversity in the weights of different flour packages has caused many difficulties, and the need of standardization has been recognized in the flour-milling industry for many years. Efforts made through State and Federal legislation to bring about reforms which would relieve the flour millers of the annoyance due to conflicting State laws and customs and at the same time eliminate the opportunities for abuses which are an outgrowth of the existing situation have accomplished very little. Up to the present time the only important laws enacted are those requiring that the weight contents of packages shall be marked thereon. The package requirements of different States were made the subject of special consideration in this inquiry because the industry has been endeavoring to have them reformed and also because the consumer, as a consequence of the added expense of packing in so many different-sized packages, must ultimately pay a higher price for his flour. The information on this subject was obtained through the cooperation of various State officials, and in many instances aid was received from municipal officials, also, and from flour-milling companies. Section 2. Wheat-flour packages in use by law, regulation, or custom. As a result of a special inquiry addressed to various State and local officials and milling companies comprehensive information was obtained with respect to the weights of the different sizes of flour packages prescribed either by law or by regulation or in use by virtue of local trade custom. Package weights prescribed by law are weights specifically named by statute, while those prescribed by regulation are weights designated by State officials who are authorized by statute to make rules and regulations. The Not less than 34 different-sized packages are authorized or in use for the domestic trade in the various States. Reports from millers showed 25 different sizes in use, two of which, 110 and 80 pound packages, were not reported by State or municipal authorities. 110-pound sack is evidently used in the export trade to Latin_countries, as it is one-twentieth of a metric ton. Under the laws of some States other sizes of packages are permitted, provided the weight content is indicated on the package or container. It was not practicable in all cases to obtain a complete list of the packages customarily in use. Twelve States and the District of Columbia have no laws or regulations fixing the size of flour packages or containers. These States are Arizona, Colorado, Florida, Montana, New Hampshire, New Jersey, New Mexico, New York, Utah, Vermont, Washington, and Wyoming. On the other hand, there are 33 States in which the law prescribes the standard weight of a barrel of flour; 2 States in which it is fixed by regulation at 196 pounds; and in Texas the law provides for a 200-pound barrel, though the 196-pound barrel is in use by custom. In South Carolina, in addition to the 196pound container, there is also, by regulation, a 192-pound sack, a 98-pound half barrel in wood, and a 96-pound sack. The weights for flour packages prescribed by law or regulation or established by trade custom in the different States are shown in the following table: TABLE 37.-Package weights for wheat flour prescribed by law or regulation or in use by custom, by States, in 1922 [L=Prescribed by law; R=By regulation; C=In use by custom.] Weight of package contents (pounds) 200 196 140 100 98 96 50 49 48 25 24 24 12 12 10 6 5 Other sizes New Jersey 1. New Mexico 1. New York 1. North Carolina 1 North Dakota 1 LC Ohio 1 LC Oklahoma 1 LC LC LC Oregon 1. Pennsylvania 1. Tennessee 1, Utah 1 Vermont 1 1 States requiring the weight of contents to be marked on package. In 13 States the standard barrel only is prescribed by law, all other packages being in use by custom. These States are Arkansas, Connecticut, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Ohio, Rhode Island, South Carolina, Tennessee, and Wisconsin. Maine and Ohio have exact fractional parts of the standard barrel, while below the half-barrel size all the Southern States in this group use an exact fraction of a 192-pound barrel. Besides the standard barrel, reports from Connecticut show six other packages in use by custom, with two sizes for the quarter barrel, while Indiana has 11 such packages, with two weights in the quarter, eighth, and sixteenth barrel sizes. Alabama by regulation and Georgia by law have the standard 196-pound barrel, while the half-barrel and all smaller packages are even fractions of a 192-pound barrel. Georgia is the only State prescribing the 140 and 280 pound packages by law. The Delaware law prescribes the standard barrel and half barrel only, four smaller sizes being in use by custom, with two weights for an eighth of a barrel. Utah appears to be the only State where flour is not packed or sold in the barrel-size package. In addition to the standard barrel and half barrel, 19 States have provided by law or regulation for from two to four other packages, most of which are irregular sizes or not exact fractional parts of the standard barrel. These States include California, Idaho, Illinois, Kansas, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Virginia, and West Virginia. Fourteen States in this group have from one to seven of such packages by custom. Aside from the 140-pound sack, Michigan is the only State that has provided a complete list of packages down to the 6-pound sack that are even fractions of the standard 196-pound barrel. In Iowa many sizes of packages are in use by custom. Besides the standard barrel and the 49-pound quarter-barrel sack prescribed by law, the reports received from different sections of this State indicate that 14 other packages were in use by custom, and that there were two different weights for the quarter, for the eighth, and for the sixteenth barrel sizes. Texas is the only State in which the so-called decimal weights basis, i. e., 200-pound barrel, has been adopted. By a decision of the attorney general of the State, however, flour may be offered for sale in any size package when properly marked showing the net-weight contents. Section 3. Packages used in the flour business. The origin of the common unit of weight for the standard barrel of flour and the confusion resulting from the adoption of different sizes of packages for the smaller fractional parts of the barrel were explained before the House Committee on Coinage, Weights, and Measures, as follows: 1 The accustomed barrel of flour of 196 pounds is by tradition only; that is, there has never been Federal action on it. A number of States in fact, practically all of the States have by statute made 196 pounds the legal barrel of flour. It comes down to us as 14 English stone of 14 pounds each. That was originally an old English 196 pounds of flour, which we accepted, and it has gone into commerce and has found a very important place. The packages commonly used in the family trade are, first, the 98 pounds, or half-barrel; 49 pounds, or quarter-barrel; 24 pounds, or one-eighth barrel; 12 pounds, or one-sixteenth barrel, the larger sizes of half-barrel and quarter 1 Statement by Mr. A. P. Husband, secretary Millers' National Federation, hearing, May 6, 1921, pp. 3, 4. |