TURNING LIGHT ON THE FOOD BILL

...Our experience in the Civil War by which the Treasury was looted bv secret arrangements BETWEEN CONTRACTORS FOR MUNITIONS and supplies and GOVERNMENT OFFICERS bv which the LATTER acquired an INTEREST IN THE CONTRACT which they recommended, is a familiar story...

...In-the form in which the bill passed the Senate, SPECULATION AND GAMBLING IN FOOD AND GRAIN was PROHIBITED, whether it occurred ON, or OFF EXCHANGES OR BOARDS OF TRADE...

...If the courts hold the provisions of the law directed to the accomplishment of this purpose to be constitutional, and the law-is wisely and honestly administered, these features of it will prove of great benefit to the pub-lie...

...Both these provisions were as I think, unwisely stricken out in the conference...

...DISTRIBUTION or STORAGE THEREOF among' DEALERS AND CONSUMERS, both domestic and foreign...

...Weakened In Conference IT is plainly to be seen, therefore, that whatever the faults of the bill when it passed the Senate, it was a VERY MUCH BETTER MEASURE than when it came back to the Senate on the conference report...

...The Council of National Defense consists of the Secretaries of War, Navy, Interior, Agriculture, Commerce and Labor...

...Whether it will accomplish this result will depend in the first place upon the extent upon which the courts uphold the law...

...It also gives to the President power to requisition all supplies necessary for the support of the army and maintenance of the navy, upon paying just compensation therefor...

...That this section shall not be construed to prevent any such agent or employee of the Government, or any person acting in an advisory capacity, from rendering services and advice on any manner not connected with such purchase of supplies...

...If the courts should declare those provisions of the law unconstitutional which relate especially to the control of food and fuel prices, then it will accomplish nothing of value to the general public, and the confusion which will result in the attempted enforcement, will do harm rather than good...

...In the conference a provision was added EXPRESSLY EXEMPTING FROM THIS PROHIBITION ANY GRAIN or FOOD EXCHANGE, BOARD OF TRADE or SIMILAR INSTITUTION which may be permitted to operate under authority conferred by another section of the bill...

...When the bill passed the Senate, the provision against exacting excessive prices, restricting supply and distribution of necessaries APPLIED TO RETAILERS, to whom it should applv IN ORDER TO GIVE THE PUBLIC FULL RELIEF...

...WThen it passed the Senate the minimum guarantee of $2 a bushel for wheat applied to the present year...

...In other words, these agents of the government, members of the Advisory Commission of the Council of National Defense, and its committees have ONLY to make DISCLOSURE IN WRITING of THEIR INTEREST, to PARTICIPATE FULLY in the BENEFIT OF CONTRACTS made UPON THEIR ADVICE...

...CORPORATION...

...NOR SHALL HE PARTICIPATE IN THE AWARDING OF SUCH' CONTRACT OR GIVING SUCH ORDER...

...But the laws against combinations to control prices HAVE NOT BEEN ENFORCED by this administration...

...The logic is simple and there is little excuse for distorting- it...

...And we insist that the "time is ripe," most decidedly, for such a declaration.—The New Republic...

...It was apparent at the time, the bill was passed by the Senate that the exorbitant prices of fuel, particularly coal, and the inability or unwillingness of the railroads to transport it, would unless relief could be obtained, mean a coal famine, and actual suffering from cold for millions of people during the coming winter...

...GUARANTEE ANY PRICE FOR THE PRESENT YEAR...

...Any person violating this section shall, upon conviction thereof, be punished by a fine not exceeding $10,000, or by imprisonment for not more than five years, or both, in the discretion of the court: Provided...

...Such is the food law with its good points and its bad...

...It was a vote against the adoption of the INEXCUSABLY BAD FEATURES of the conference report...

...The law also forbids the hoarding of necessaries, and declares that necessaries are hoarded within the meaning of the law when they are held or contracted for by any person in excess of his reasonable requirements, or held or contracted for by a manufacturer or dealer in excess of the reasonable requirements of his business or withheld from the market by any person for the purpose of unreasonably increasing or diminishing prices, except that THESE PROVISIONS SHALL NOT relate to TRANSACTIONS OF EXCHANGES OR BOARDS OF TRADE, which may be permitted to operate by the President...

...I refer to the provision which allows what is called the Advisory Commission of the Council of National Defense, and its subordinate committees, WHILE ACTING AS AGENTS and ADVISORS of the government in PURCHASING WAR SUPPLIES and MAKING CONTRACTS, to DO BUSINESS with the A Clear Statement OUR (The New Republic) primary purpose is not to secure an early peace but to lay the foundation for a permanent one...

...government as agents, officers and representatives of corporations and concerns which are making all manner of war contracts with the government and furnishing it with war supplies...

...There is no reason why the farmer is not entitled to the minimum guarantee of $2 a bushel for his wheat this year just as next...

...IT DOES NOT, HOWEVER...

...But the democratization of Germany will not take place as long' as its government can make the people think they are fighting' in self defense...

...He has produced his wheat under the excessive labor cost and high prices of everything that he buys, incident to the war...

...SALE, SHIPMENT...

...Board or Commission of the United States, "WITHOUT MAKING TO TUB BEST OP 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...

...It confers upon the President the POWER TO FIX PRICES OX FOOD AXD FUEL FOR EVERYONE, as well as upon everything necessary for the military and naval forces...

...We advocate not an invmediate renunciation of annexation and indemnities on the part of the allies but a clear statement that territorial and other penalties will be renounced provided the proper guaran-tic3 of democracy and future peace are secured to the German people...

...Any unfair, unreasonable or discriminatory charge made by such licensee shall be sufficient reason for revoking the license, and any person who endeavors to engage in such business without such license, or whose license has been revoked, or who violates the regulations prescribed for the conduct of such business, shall upon conviction, be punished by a tine not exceeding $5,000 or bv imprisonment for not more than two v.Mrs...

...The law also guarantees the price of wheat for the year 1918, at not less than $2 a bushel at principal interior primary markets...

...I hope he will use that power to the last limit in the public interest...

...IF THE WILSON ADMINISTRATION HAD ENFORCED THE LAWS AGAINST MONOPOLY AND THE CONTROL OF PRICES BY COMBINATIONS IN RESTRAINT OF TRADE, WHICH ARE ALREADY ON THE STATUTE BOOKS, THE PEOPLE WOULD HAVE BEEN SAVED HUNDREDS OF MILLIONS OF DOLLARS, WRONGFULLY EXTORTED FROM THEM BY THESE LAWLESS MONOPOLIES...

...By the skilful wording of the amendment to the food law, which I have quoted above, it was ATTEMPTED to EVADE THE WHOLESOME PROVISIONS of the law of 1863...

...It was to protect the public treasury against the betrayal of its interests by officers, and agents of the government that a law was passed on March 2, 18G3 which PROHIBITED ANY OFFICER OR AGENT OF A CORPORATION or member of a concern or firm, or person DIRECTLY OR INDIRECTLY INTERESTED in the profits or contracts of such, corporation, firm or concern, from BEING EMPLOYED or ACTING IN ANY CAPACITY as an OFFICER or AGENT of the United States for the TRANSACTION of BUSINESS WITH SUCH CORPORATION or CONCERN...

...But the SYSTEM WHICH ALLOWS THESE MEN TO MAKE RECOMMENDATIONS to the government as members of the commission, concerning the purchase of those VERY PRODUCTS THEY HAVE FOR SALE and concerning the contract they are DEEPLY INTERESTED FINANCIALLY in HAVING MADE is inherently bad and can not fail to produce most disastrous results...

...AN EDITORIAL BY ROBERT M. LA FOLLETTE THE much discussed food bill has become a law...

...An intolerable condition had been permitted 1o come upon us, and it seemed to me that a bill admittedly bad in some respects might properly be supported which promised some relief from insufferable conditions...

...That provision, however, was stricken out and a provision substituted for it to the effect that an agent or employee of the United States may not make or participate in making any recommendation concerning a contract to be made with the United States or order to be given by it, to any Council...

...he is authorized to FIX THE PRICE OF COAL and coke, and to establish rules for the regulation of the PRODUCTION...

...This was STRICKEN OUT IN CONFERENCE...

...If the courts shall hold that the attempt has been successful, we may look for a REIGN OF CORRUPTION AND BETRAYAL of public interest, compared with which the SHAMEFUL TRANSACTIONS OF THE CIVIL WAR would appear ALMOST RESPECTABLE...

...It forbids the use of food material in the production of distilled spirits, and forbids the importation of distilled spirits, and authorizes the President to prohibit the use of food material in the manufacture of beer and wines whenever he deems such action necessary to assure a sufficient food supply...

...It also clothes the President with power to purchase, store and sell, at reasonable prices wheat, tlour, meal, beans and potatoes...

...And the German people will continue to think so until the allies issue a liberal definition of their peace terms...

...I VOTED FOR THE BTLL when it passed the Senate in the hope that it might afford some relief to the people from the intolerable high prices of food and fuel...

...There was no reason, however, why many bad provisions should not have been eliminated from the bill, and when it came back to the Senate on the conference report of the Senate and the House, I voted to recommit the bill to conference that it might be finally adopted in as good a form at least as it was in when it passed the Senate and 1 voted for it...

...What is cailed an Advisory Commission of the Council of National Defense has been organized composed of loading business men, financiers—the great industrial and transportation combinations of the country,—and a representative of labor and sanitation...

...COMPANY OR ASSOCIATION BEING A PARTY THERETO...

...But the report was adopted carrying into the bill these harmful provisions...

...and in the second place, UPON THE MANNER IN WHICH IT IS ADMINISTERED...

...It should have been RECOMMITTED TO CONFERENCE, and the Senate conferees GIVEN TO UNDERSTAND that thev must ELIMINATE the BAD PROVISIONS which they had incorporated and then return the bill to the Senate for final action...

...This vote was misrepresented as a "vote against the food bill...

...To this end the democratization of Germany is necessary, as all admit...

...Like the administrations of Roosevelt and Taft, the Wilson administration has been much more anxious that Big Business and the Railroads should secure enormous profits than that the people secure the necessaries of life at reasonable prices...

...Powers In War Period THESE extraordinary powers are by the law conferred upon tho President for the period of the war...

...It might have been made wholly good and so have served only the interests of the public in this great crisis of national life, f did what I could to make it that kind of a law...

...For example there is a committee called "Air Craft Production Board," another called "Committee on Coal Production," another called "Committee on Shipping," another called "General Munitions Board," another called "Munitions Standard Board," and many other committees, so that every field of government activity and every purpose for which the government may expend money is...

...These men while not under salary from the government are nevertheless the agents and advisors of the government in the most important work which the government ever undertook, and there will be expended under their advice and direction more money than was every expended before in all the history of 1 lie world under the advice and direction of a single body of men...

...An amendment to the bill was added in the Senate, also against my opposition, which I believe is bound to produce GREAT WRONG AND INJURY and will result in LOOTING THE TREASURY of the United States of MILLIONS AND IT MAY BE BILLIONS of dollars...

...I VOTED AGAINST THE ADOPTION OF THE CONFERENCE REPORT, in order to secure FURTHER CONFERENCE action, STRIKING OUT THE BAD PROVISIONS ABOVE NOTED...

...covered by one of these committees, controlled by the men prominent in the line of production or enterprise to which the particular committee is assigned...

...Whenever, in the judgment of the President, it is necessary for the efficient prosecution of the war...

...Hence the cost of living increased each mouth excessively, extravagantly even before war became the excuse to rob w'thout limit...

...Sees Danger of Corruption Which Will Make Civil War Scandal "Respectable"—Tells of Conference Committee Action...

...This law gives the President power to require that any person, company or firm engaged in the importation, manufacture, storage, mining or distribution of any necessaries, shall obtain a license in order to carry on such business...

...It was not...

...It contains some good provisions and some bad ones...

...THESE PROVISION'S, HOWEVER, ARE NOT TO APPLY TO FARMERS, RETAILERS or COMMON CARRIERS...

...TITE business of these committees is to advise the government in all matters involving the purchase of supplies and the making of contracts by which many billions of dollars for war purposes are to be expended...

...I know of no reason why he should be left at the mercy of a food dictator if the rest of the country is to receive protection...

...When the food bill was before the Senate I desired to have retained in it the following provision: "That it is hereby declared unlawful for any person acting cither as a voluntary or paid agent or employee of the Government in any capacity, including an advisory capacity to any commission, board, or council of the Government, to procure, attempt to procure, or make any contract for the purchase of any supplies for the use of the Government either from himself, from any firm of which he is a member, or corporation of which he is an officer or stockholder, or in which he has any financial interest...

...When the bill passed the Senate it also contained a provision reserving to labor the rights guaranteed to it bv the Clayton Act...

...I know personally one or two of the gentlemen on this Commission, and their integrity is unquestioned and their honor above reproach...

...If vt thus to be seen that the President is clothed with the most AMPLE AUTHORITY to FIX PRICES OF FOOD AND FUEL AS JUSTICE REQUIRES, excepting as noted above...

...The President has the power under it to control prices and accomplish great good...

...Then what are called subordinate committees of the Commission of National Defense have been formed, upon which appear the names of scores and scores of other representatives of Big Business...

...The law undoubtedly does confer upon the President the most absolute and autocratic power possible as to those brought within its terms, not only by its direct-price fixing authority, but by the control which it gives to the President over transportation...

...Many of the names written large on the pages of the financial history of this country since the Civil War, belong to men who laid the foundation for their fortunes in these corrupt and criminal transactions...