sary increase in production, to control distribution, and to hold prices at proper levels. If the war is to be carried to a successful conclusion the production of the United States must be enormously increased. The distribution of the essential commodities must be such as to meet the various needs in proportion to their importance. The prices to the people of the United States and the Allies must be reasonable else extortion will continue on a vast scale both from ourselves and our associates; but the law of supply and demand and competition did none of these things—even the increase in production was inadequate.
regulatory measures necessary
To remedy the situation the President asked Congress for one regulatory measure after another. The crisis was such that these requests have all been met. The result is a most amazing series of regulatory enactments. These are as follows: The food and fuel administration act, the shipping act, the espionage act, the trading with the enemy act, and the priority act. Also the War Industries Board and the Federal Court have instituted regulatory measures without congressional action.
It is my purpose very briefly and inadequately to summarize some of the things which have been done under these regulatory measures, and, following such summary, to discuss the principles involved. All of the measures enacted by Congress grant the powers to the President. These he has in some cases at first exercised, but later delegated them to agencies created as authorized by the acts. After such agents have been created, the President has issued proclamations from time to time in accordance with the recommendations of the several agencies. In the succeeding pages, for the sake of brevity, no discrimination is made between the exercise of the powers by the President directly and their exercise by his agents.
The Food Administration Act
Under the Food Administration Act, the President appointed Herbert Hoover, Food Administrator. The latter organized the Food Administration. A licensing system has been introduced for all essential food commodities. Manufacturers, wholesalers, and other distributors are required to take out a license in order to conduct their business. Under the terms of these licenses, hoarding and speculation are to be eliminated and only fair and reasonable profits or charges are to be made for services rendered. Thus the charge which the miller may make for the manufacture of flour and the margin which the jobber may take for its distribution is definitely limited.
The law confines the control of the Food Administration to the zone between the original producers, that is, the farmers and the farmers associations and the retailers with a business less than $100,000 per annum. The manufacturers and the wholesalers are directly reached by regulation; the farmers and retailers only indirectly. While the base price of the producer is not controlled, intermediate additions are, so that the product reaches the retailer with only a fair increment added to the price of the producer. The public is informed in regard to the price which the retailer pays and what would be a fair price which he should charge.
Scarcely less important than the regulation of prices is the control of distribution. The Food Administration decides upon the amount of the essential commodities which go abroad and to what country they are to go. Not only so, but he controls the home distribution, and if advisable, even to the extent of the purposes for
