Wartíme Food Procurement and Productíon 9780231899420

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Wartime Food Procurement and Production

Wartime Food Procurement and Production Benjamin Baker

KING'S CROWN PRESS Columbia University, New York 1951

Copyright BENJAMIN

1951 by BAKER

K i n g ' s Crown P r e s s is an imprint e s t a b l i s h e d by C o l u m b i a U n i v e r s i t y Press for the p u r p o s e of B a k i n g certain s c h o l a r l y m a t e r i a l a v a i l a b l e at m i n i m u m cost. Toward that end, the publishers have used s t a n d a r d i z e d formats incorporating every r e a s o n a b l e economy that does not interfere w i t h legibility. The author has assumed complete responsibility for e d i t o r i a l style and for p r o o f r e a d i n g .

P u b l i s h e d in G r e a t B r i t a i n , C a n a d a , and India by G e o f f r e y C u m b e r l e g e , O x f o r d U n i v e r s i t y Press L o n d o n , T o r o n t o , and Bombay Manufactured

in

the United S t a t e s of A m e r i c a

TO MY WIFE

PREFACE The purpose of this study is to describe the administrative procedures and techniques utilized by the federal government in its direction of wartime food production and procurement programs. These practices formed the hub around which the wheels of agricultural administration revolved. Loans, purchase and diversion programs, price supports, parity were used in both peace and war. The difference that did exist was in objective and not in procedure. Before the war the nation had been plagued by a surplus of foodstuffs. No one had ever dreamed, that we would ever be faced with shortages. As a consequence both agricultural policy and administration were governed by a crop reduction philosophy. The war soon demonstrated the fallacy of such thinking. Within a relatively short space of two years the food picture changed drastically. Increased purchasing power of the consumer and the initiation of heavy overseas shipment of foodstuffs dug deeply into our food stockpiles. Shortages developed and it soon became evident that for many food items supplies would be short. Production increases, shifts from basic commodities to non-basic items such as vegetables were required. To meet the new need production objectives were reshaped. Crop expansion became the new goal. Despite this the underlying administrative practice with few refinements remained the same as in the peacetime period. Such changes as did occur were reflected in the reorganization of the administrative machinery dealing with food problems. Foods were allocated among various users in accordance with their contribution to the war effort. Production planning was first placed in the Bureau of Agricultural Economics and later given to the Agricultural Adjustment and Conservation Agency. Procurement for Lend-Lease was first given to the Surplus Marketing Administration, the agency which had handled most of the purchase and diversion programs. Later this function was transferred successively to the Agricultural Marketing Administration, the Food Distribution Administration and the Office of Distribution. Administrative direction at the top was centralized by Executive Order 9280 in the Department of Agriculture. Later by still other executive orders the food program became the responsibility of the War Food Administration.

•iii

WARTIME FOOD PROCUREMENT AND PRODUCTION

Nevertheless, the central element vhich emerges from this wartime account of agricultural administration is the continuity of administrative experience. Pre-War procedures were adapted to meet the war need. Purchasing methods were imr proved, although the basic mechanics of operation remained unchanged. Allocation planning was introduced. A reorientation in the viewpoint of administrators who had been accustomed to think in terms of peacetime surpluses took place. But even here the thinking of the executives was never completely revamped. There was always the thought of the postwar problem in the light of what had happened before the war and this, in many instances, caused a confusion in mobilization objectives. Thus, few new techniques were added to the administrative legacy previously acquired. The work of a governmental agency must be measured largely in terms of accomplishment. The record of agricultural production and procurement is contained in the following pages. To some it may appear that the writer has painted too rosy a picture but the writer feels that his conclusions are buttressed by the following considerations: first, food production and procurement must be appraised in terms of the immensity of the task undertaken, the tug and haul of agencies for primacy in the food program and the tremendous need for getting things done in a hurry; second, there was an almost incessant legislative interference with the work of the Department of Agriculture and the War Food Administration. Congress with its insistence on parity, its demand that the farmer get a fairer share of the national income, and its reflection of the pressures of farm organizations constituted an ever-present and disturbing factor. In 1944, for example, when the War Food Administrator proposed to place primary stress on price supports as production incentives, Congress first refused and later questioned the use of money for such purposes. By its action it introduced an element of uncertainty which might have seriously affected production. Much more could and undoubtedly should be said on these points. For the writer, however, the most important aspect was the stability provided by the continuance of administrative procedures. He has, accordingly, placed primary stress on this aspect. In the preparation of this study many people were of great assistance to me. My friend and former co-worker Dr. S. N. Gubin of the Department of Agriculture gave generously of his time and assisted me greatly in defining the objectives and the scope of this study. Miss Gladys Baker and Mr. Wayne Rasmussen of the Bureau of Agricultural Economics were kind enough to allow me to use the files of the Bureau and helped me to locate many of the basic materials used in this study. Finally, I owe a special debt to Professors Arthur W. Macmahon and John D. Millett, of Columbia University. Both were kind

PREFACE

IX

enough to read the manuscript. I have benefited greatly from their searching comments and criticisms. Indeed, whatever merit this volume has is largely a result of their suggestions. Errors or lack of judgment, needless to say, are my own responsibility. Benjamin Baker Hempstead, N.Y.

CONTENTS I II

Introduction

1

The War Food A d m i n i s t r a t i o n

and I t s

Predecessor

Agencies III

10

The R e q u i r e m e n t s and A l l o c a t i o n s

Control

Process IV

33

Food P r o c u r e m e n t C o n t r o l s

53

V

Coordination

of

69

VI

Food O r d e r s :

Their

Food P r o c u r e m e n t Formulation,

Issuance

and

Administration VII VIII

Priorities,

Requisitions

Agricultural

85 and E x p o r t C o n t r o l s

P r o d u c t i o n - - The

Resource IX X

Production

101

Administrative 118

and P r i c e S u p p o r t s

134

C o n c l u s i o n --Summary

146

Notes

151

Bibliography

197

Index

215

CHAPTER

I

INTRODUCTION The

Government

in

the

Food

Business

The y e a r s b e f o r e t h e war saw t h e e n u n c i a t i o n o f a g o v e r n mental p o l i c y t h a t promised to g i v e the American f a r m e r a b e t t e r p r i c e f o r t h e c o m m o d i t i e s he p r o d u c e d . To a c h i e v e t h i s o b j e c t i v e t h e G o v e r n m e n t had t o t a k e a c t i o n t h a t w o u l d e i t h e r c l o s e o r a t l e a s t n a r r o w t h e gap b e t w e e n p r o d u c t i o n and c o n s u m p t i o n . The m a i n t e n a n c e o f a g r e a t e r e q u i l i b r i u m b e t w e e n t h e s e two meant t h e u s e o f p r o d u c t i o n c o n t r o l s , p u r c h a s e and d i s t r i b u t i o n t e c h n i q u e s , and w h e r e t h e s e w e r e n o t s u f f i c i e n t , the development o f d i v e r s i o n programs to withdraw f o o d s t u f f s from n o r m a l c h a n n e l s o f t r a d e i n s u f f i c i e n t q u a n t i t i e s t o k e e p up t h e p r i c e t o t h e p r o d u c e r . I n o t h e r w o r d s , t h e G o v ernment was f o r c e d i n t o t h e f o o d b u s i n e s s b e c a u s e o f t h e s h e e r i n a b i l i t y o f o u r economy t o a b s o r b a l l o f t h e f o o d b e i n g p r o d u c e d . The b y - p r o d u c t s o f t h i s a t t e m p t upon t h e p a r t o f t h e G o v e r n m e n t t o a c t as a r e g u l a t o r o f p r o d u c t i o n and c o n s u m p t i o n t h r o u g h a d m i n i s t r a t i v e a c t i o n w e r e b o t h an e x t e n s i v e k n o w l e d g e o f p r o d u c t i o n and d i s t r i b u t i o n methods and t h e b u i l d i n g o f a c o m p e t e n t a d m i n i s t r a t i v e s t a f f t h a t knew how t o handle f o o d s t u f f s .

Administrative

Legacy

of

the

Surplus

Period

T h i s p r e - w a r e x p e r i e n c e was t o s t a n d t h e n a t i o n i n g o o d s t e a d d u r i n g t h e war y e a r s and was t o p r o v i d e a c o r e o f k n o w l e d g e upon w h i c h t h e war e f f o r t v a s b u i l t . Two d e c a d e s o f d e a l i n g w i t h a g r i c u l t u r a l s u r p l u s e s , h o w e v e r , had i t s bad as w e l l as i t s g o o d p o i n t s . E s s e n t i a l a d m i n i s t r a t i v e p r a c t i c e was a c q u i r e d but w i t h i t came a c o n d i t i o n i n g t h a t t e n d e d t o d e a d e n t h e s e n s i t i v i t y o f the a d m i n i s t r a t i v e machine to the need f o r g e a r i n g p r o d u c t i o n f o r an a l l o u t e f f o r t o n c e t h e war had b e g u n . T h o s e i n c h a r g e o f p r o d u c t i o n p o l i c i e s who had d e a l t w i t h c r o p r e s t r i c t i o n s f o r a p p r o x i m a t e l y a s c o r e o f y e a r s found i t hard t o b e l i e v e t h a t the n a t i o n would e v e r s u f f e r from a l a c k o f f o o d . As a c o n s e q u e n c e t h e a r t e r i e s o f a d m i n i s t r a t i v e p o l i c i e s w e r e o f t e n h a r d e n e d a g a i n s t the f l o w o f new i d e a s w h i c h c a l l e d f o r a c h a n g e d p o l i c y as a r e s u l t o f t h e European w a r . ^

2

WARTIME FOOD PROCUREMENT AND PRODUCTION

A Surplus

Psychology

In t h e y e a r s 1939-1941, i f one l o o k e d a t t h e immediate s i t u a t i o n , and n o t a h e a d t o t h e p o s s i b i l i t i e s o f t h e f u t u r e , t h e r e was c o n s i d e r a b l e j u s t i f i c a t i o n f o r t h e p o s i t i o n t h a t t h e s t a t u s quo i n p r o d u c t i o n s h o u l d b e m a i n t a i n e d . We d i d h a v e a s u b s t a n t i a l s u r p l u s of f o o d s t u f f s when t h e war b r o k e o u t i n E u r o p e . As t h e S e c r e t a r y o f A g r i c u l t u r e s t a t e d i n a r a d i o a d d r e s s t o t h e A m e r i c a n p e o p l e , "We a r e n o t i n t h e war and we h a v e an a b u n d a n c e o f p r a c t i c a l l y a l l k i n d s o f f o o d . We have reason to r e j o i c e in t h e s t r e n g t h of our p o s i t i o n . " 2 So f a r a s h e c o u l d s e e t h e r e was no b a s i s f o r a l a r m . T h i s v i e w w a s a l s o e c h o e d by t h e P r e s i d e n t and r e s p o n s i b l e f o o d g r o u p s . I n d e e d , we n o t o n l y h a d c o m f o r t a b l e f o o d and f i b e r r e s o u r c e s b u t we w e r e a l s o f a c e d w i t h t h e f a c t t h a t t h e o u t b r e a k o f t h e E u r o p e a n war h a d d e p r i v e d t h i s c o u n t r y o f a m a r k e t t h a t f o r m e r l y had t a k e n a b o u t o n e - t h i r d of A m e r i c a ' s farm e x p o r t s . 3 Our f a v o r a b l e s t o c k p o s i t i o n a s a r e s u l t o f t h i s d e v e l o p m e n t was f u r t h e r a c c e n t e d b e c a u s e f o r t h e t i m e b e i n g , o r a t l e a s t u n t i l A m e r i c a n i n v o l v e m e n t , we w o u l d n o t b e a b l e t o l i q u i d a t e o u r s t o c k s . New p r o d u c t i o n , e v e n w i t h i n c r e a s e d d o m e s t i c c o n s u m p t i o n , would m e r e l y a g g r a v a t e t h i s s i t u a t i o n . P r o d u c t i o n p o l i c i e s r e v e a l e d t h e p r e v a i l i n g c o n c e r n of a d m i n i s t r a t o r s . T h u s i t was t h a t f o r t h e y e a r 1 9 3 9 , d e s p i t e t h e l i f e a n d d e a t h s t r u g g l e g o i n g on i n E u r o p e , A m e r i c a p r o p o s e d t o s p e n d 200 m i l l i o n d o l l a r s t o r e m o v e s u r p l u s f o o d s f r o m n o r m a l c h a n n e l s . 4 F o r t h e y e a r 1940 a p r o g r a m o f c o n t r o l l e d o u t p u t , d a n g e r o u s l y c l o s e t o c r o p c u r t a i l m e n t was u n d e r t a k e n . The f a r m e r s w e r e u r g e d t o do a l l t h e y c o u l d " t o a d j u s t t h e i r o u t put to the a c t u a l l y a v a i l a b l e m a r k e t . " 5 Indeed, except f o r a s l i g h t v a r i a t i o n in a c r e a g e , t h e f a r m p r o g r a m f o r 1940 w a s a l m o s t t h e same a s t h a t f o r t h e p r e v i o u s y e a r . 6 A l t h o u g h p r o g r a m a p p r o v a l h a d b e e n g i v e n by t h e S e c r e t a r y o f A g r i c u l t u r e , h i s a c q u i e s c e n c e t o o k t h e war c r i s i s i n t o a c c o u n t , f o r i t was q u a l i f i e d t o t h e e x t e n t o f s a y i n g t h a t t h e D e p a r t m e n t would r e s e r v e t h e r i g h t t o a n n o u n c e s p e c i f i c a c r e a g e s f o r m a j o r c r o p s where n e c e s s a r y . But even so t h e g o a l s f o r 1940 a t n o r m a l y i e l d s would p r o v i d e t h e n a t i o n w i t h ample s u p p l i e s f o r a l l d o m e s t i c n e e d s and e x p o r t r e q u i r e m e n t s , and s t i l l f u r n i s h us with adequate r e s e r v e s . 7 I n d e e d , u n t i l t h e e n t r y o f t h e U n i t e d S t a t e s i n t o t h e war l i t t l e c o n c e r n was f e l t o v e r f o o d s u p p l i e s . The p r e v a i l i n g o p i n i o n seemed to be: i f t h e f l a m e s o f Europe r e a c h e d o u t a n d f o r c e d u s t o a r m , we w o u l d n o t o n l y h a v e g u n s b u t b u t t e r , too . The

Agricultural

Advisory

Council

Nonetheless, d e s p i t e the preva l e n t optimism, preliminary s t e p s w e r e t a k e n t o e s t a b l i s h a dm i n i s t r a t i v e m a c h i n e r y t h a t w o u l d k e e p t h e D e p a r t m e n t o f Ag r i c u l t u r e i n c l o s e t o u c h w i t h t h e f o o d s i t u a t i o n . On S e p t e m b e r 5, 1 9 3 9 , t h e S e c r e t a r y , a t

3

INTRODUCTION

the s u g g e s t i o n of t h e P r e s i d e n t , announced t h e f o r m a t i o n of an A g r i c u l t u r a l A d v i s o r y C o u n c i l w h i c h w a s t o b e c o m p o s e d o f f a r m e r s a n d b u s i n e s s m e n who w e r e e n g a g e d i n t h e p r o c e s s i n g and d i s t r i b u t i o n of f a r m p r o d u c t s . The C o u n c i l was t o " a d v i s e t h e Department of A g r i c u l t u r e in f o r m u l a t i n g p o l i c i e s f o r the a g r i c u l t u r a l s e r v i c e s of t h e government t o c i t i z e n s i n t h i s p e r i o d of r a p i d c h a n g e . " ' At i t s f i r s t m e e t i n g t h e C o u n c i l p l e d g e d i t s f u l l e s t c o o p e r a t i o n i n m e e t i n g t h e s i t u a t i o n c r e a t e d by t h e E u r o p e a n w a r and emphasized t h e f a c t t h a t , w h a t e v e r " i s done must be done t h r o u g h v o l u n t a r y means w i t h o u t r e g i m e n t a t i o n . " ' The C o u n c i l , in a r e p o r t of one of i t s s u b - c o m m i t t e e s , added w e i g h t t o Wall a c e ' s e a r l i e r r e m a r k s t o t h e A m e r i c a n p u b l i c on t h e s u b j e c t o f f o o d s u p p l i e s by s t r e s s i n g t h e p o i n t t h a t t h e r e was " a b s o l u t e l y and p o s i t i v e l y " no d a n g e r of any s h o r t a g e in t h i s c o u n t r y of t h e n e c e s s i t i e s of l i f e . 1 0 In i t s i n i t i a l m e e t i n g t h e C o u n c i l h a d r e c o m m e n d e d t h a t i t b e o r g a n i z e d on a p e r m a n e n t b a s i s , a n d , w h i l e t h e r e w e r e some e f f o r t s m a d e a l o n g t h i s l i n e , in a c t u a l p r a c t i c e i t r a r e l y met as a body. I n d i v i d u a l members of t h e C o u n c i l , however, were f r e q u e n t l y h e l p f u l t o t h e D e p a r t m e n t b o t h a s a d v i s e r s to t h e S e c r e t a r y and h i s a i d e s , and in c a r r y i n g back t h e p o l i c i e s of t h e D e p a r t m e n t t o t h e g r o u p s r e p r e s e n t e d by t h e m . 1 1 The

Agricultural

Adviser

to

the

Council

of

National

Defense

T h e y e a r 19 4 0 w a s m a r k e d b y an i n c r e a s e i n t h e n a t i o n a l d e f e n s e e f f o r t . In t h e s p r i n g t h e " s i t t i n g " war had become a s h o o t i n g w a r . The German i n v a s i o n o f t h e low c o u n t r i e s , res u l t i n g s i x weeks l a t e r in c o m p l e t e v i c t o r y in Western Europe, made t h e p o s i t i o n o f t h e n o n - A x i s p o w e r s p r e c a r i o u s . O n l y B r i t a i n r e m a i n e d a s an a c t i v e p a r t i c i p a n t and s h e r e q u i r e d v a s t q u a n t i t i e s of m u n i t i o n s and f o o d . The s i g n i f i c a n t A x i s successes also posed a t h r e a t to our s e c u r i t y . 1 2 N a t i o n a l l y t h e P r e s i d e n t r e c o g n i z e d t h e i n c r e a s i n g tempo of e v e n t s by t a k i n g s t e p s t o c o o r d i n a t e t h e r e s o u r c e s o f t h e n a t i o n . I n May, a c t i n g u n d e r a l o n g d o r m a n t 1 9 1 6 s t a t u t e , h e a n n o u n c e d t h a t he was r e c r e a t i n g t h e C o u n c i l of N a t i o n a l Def e n s e . T h e C o u n c i l by l a w c o n s i s t e d o f t h e S e c r e t a r i e s o f War, N a v y , I n t e r i o r , Commerce, A g r i c u l t u r e and L a b o r . 1 3 The P r e s i d e n t was empowered t o a p p o i n t " a n a d v i s o r y c o m m i s s i o n c o n s i s t i n g o f n o t m o r e t h a n s e v e n p e r s o n s , e a c h o f whom s h a l l h a v e s p e c i a l k n o w l e d g e o f some i n d u s t r y , p u b l i c u t i l i t y , o r t h e d e v e l o p m e n t o f some n a t u r a l r e s o u r c e , o r b e o t h e r w i s e s p e c i a l l y q u a l i f i e d i n t h e o p i n i o n o f t h e C o u n c i l . " 1 4 T h e acts a l s o p r o v i d e d t h a t t h e r u l e s and r e g u l a t i o n s which t h e C o u n c i l a d o p t e d f o r i t s e l f and f o r t h e A d v i s o r y Commission were s u b j e c t to p r e s i d e n t i a l approval.15 In a c c o r d a n c e w i t h t h e t e r m s of t h e s t a t u t e , t h e C o u n c i l a d o p t e d a n d t h e P r e s i d e n t s i g n e d on May 2 9 , 1 9 4 0 , a r e g u l a t i o n l i s t i n g t h e t i t l e s of t h e seven a d v i s o r y members and t h e

4

WARTIME FOOD PROCUREMENT AND PRODUCTION

f u n c t i o n s o f t h e p r e s i d e n t i a l a d m i n i s t r a t i v e a s s i s t a n t who was t o b e t h e s e c r e t a r y o f t h e C o u n c i l . 1 4 Each a d v i s o r y memb e r was t o be in c h a r g e o f a d i v i s i o n w i t h r e s p o n s i b i l i t y for i n v e s t i g a t i o n , r e s e a r c h and c o o r d i n a t i o n i n h i s a s s i g n e d f i e l d . 17 A day l a t e r i t was a g r e e d t h a t t h e C o u n c i l would be w h o l l y i n a c t i v e and t h a t t h e A d v i s o r y Commission w o u l d d e a l d i r e c t l y w i t h t h e P r e s i d e n t . 18 C h e s t e r D a v i s was a p p o i n t e d as A g r i c u l t u r a l A d v i s e r . H i s a p p o i n t m e n t was w e l l r e g a r d e d by t h e f o o d i n d u s t r y w h i c h , i n t h e words o f one o f t h e i r p u b l i c a t i o n s , c o n s i d e r e d him as a man " w i t h h i s f e e t on t h e g r o u n d . " 1 9 D e s p i t e t h e s u p p o r t o f t h e f o o d i n d u s t r y , t h e d u t i e s o f t h e new A d v i s e r w e r e u n c l e a r . He h i m s e l f r a i s e d t h i s q u e s t i o n o f h i s d u t i e s a t t h e o u t s e t . 2 0 A l l t o o c l e a r l y , the A g r i c u l t u r a l A d v i s e r r e a l i z e d t h a t , unl i k e t h o s e o f o t h e r a d v i s e r s , h i s f u n c t i o n s would run c o u n t e r t o t h o s e o f an a l r e a d y e s t a b l i s h e d a g e n c y , an " a g e n c y t h a t z e a l o u s l y g u a r d e d i t s p o w e r s and r e s i s t e d any e n c r o a c h m e n t on what i t r e g a r d e d as i t s e x c l u s i v e f i e l d o f o p e r a t i o n s . E v e n t u a l l y h i s f u n c t i o n s were d e f i n e d in the f o l l o w i n g f a s h i o n : ( 1 ) the development o f plans f o r p r o t e c t i v e a c t i o n to o f f s e t t h e u n f a v o r a b l e e f f e c t s o f d e f e n s e upon a g r i c u l t u r e ; ( 2 ) t h e p r o m o t i o n o f t h e a d e q u a t e u s e o f t h e farm p o p u l a t i o n by t h e p r o p e r l o c a t i o n o f d e f e n s e p l a n t s ; ( 3 ) t h e o r g a n i z a t i o n o f f o o d i n d u s t r i e s f o r such d i r e c t i o n as m i g h t become n e c e s s a r y in t h e e v e n t o f t h e n e e d f o r a maximum e f f o r t ; ( 4 ) t h e c o o p e r a t i o n w i t h t h e Bureau o f A g r i c u l t u r a l C h e m i s t r y and Eng i n e e r i n g o f t h e D e p a r t m e n t o f A g r i c u l t u r e in t h e d e v e l o p m e n t o f new p r o d u c t s f o r d e f e n s e p u r p o s e s ; and ( 5 ) t h e s t u d y o f t h e o v e r - a l l food supply s i t u a t i o n . 2 1 W h i l e t h e s e d u t i e s w e r e t o be d i s c h a r g e d by t h e A g r i c u l t u r e D i v i s i o n , c o l l a b o r a t i o n with the Department o f A g r i c u l t u r e was n e c e s s a r y , s i n c e no l a r g e s t a f f e x i s t e d w i t h t h e N a t i o n a l Defense A d v i s o r y Commission.

The

Impact

of

Consumer

Purchasing

Power

on Food

Supplies

D u r i n g t h e l a t t e r h a l f o f 1940 t h e f o o d s i t u a t i o n b e g a n t o c h a n g e and w i t h i t came a more r e a l i s t i c a t t i t u d e t o w a r d t h e f o o d s u p p l y s i t u a t i o n . In a s e n s e a s u r p l u s had n e v e r r e a l l y e x i s t e d . Food was i n e x c e s s o f demand b e c a u s e consumers d i d n o t h a v e enough p u r c h a s i n g p o w e r . As d e f e n s e e x p e n d i t u r e s i n c r e a s e d t h e n o n - a g r i c u 1 t u r a l i n c o m e r o s e f r o m t h e 1935-1939 a v e r a g e o f 60 b i l l i o n s t o 67 b i l l i o n s f o r t h e y e a r 1940. 2 2 The -consumer b e g a n t o e a t b e t t e r as h i s p u r c h a s i n g p o w e r i n c r e a s e d and t h i s , t o g e t h e r w i t h h e a v i e r A l l i e d p u r c h a s e s s t e p p e d up t h e demand f o r f a r m p r o d u c t s . Farm p r i c e s began t o r e f l e c t t h e t i g h t e r s i t u a t i o n . B e t w e e n 1940 and 19 41 t h e i n d e x o f f a r m p r i c e s b a s e d upon a t h i r t y - y e a r a v e r a g e r o s e f r o m 92 t o 9 8 . S i n c e i n d u s t r i a l demand w o u l d be m a i n t a i n e d a t a h i g h l e v e l f o r some t i m e a h e a d , i t was e v i d e n t t h a t t h e demand f o r c o m m o d i t i e s p r o d u c e d c h i e f l y f o r d o m e s t i c consumpt i o n would c o n t i n u e to i n c r e a s e . 23

INTRODUCTION

5

Some c o n c e r n o v e r t h i s t r e n d was e x p r e s s e d i n t h e c o n v e r s a t i o n s and a c t i o n s of t h e N a t i o n a l D e f e n s e A d v i s o r y C o m m i s s i o n . A t t e n t i o n was g i v e n t o t h e f u t u r e d e m a n d f o r f o o d a n d i t s e f f e c t on s u p p l y a n d p r i c e . I n J u n e 19 40 t h e A g r i c u l t u r a l A d v i s e r a d d r e s s e d a r e q u e s t t o t h e War D e p a r t m e n t a s k i n g t h a t t h e l a t t e r p r e p a r e a m e m o r a n d u m e s t i m a t i n g t h e p r o b a b l e l o a d on a g r i c u l t u r e i n t h e e v e n t o f a m a j o r m o b i l i z a t i o n . T h e War D e p a r t m e n t r e p l i e d t h a t i t d i d n o t a n t i c i p a t e any r e a l s h o r t a g e of f o o d p r o v i d e d t h a t s u g a r was a v a i l a b l e f r o m Cuba and H a w a i i , and p r o v i d e d further that the f a c i l i t i e s for bringi n g c o f f e e , t e a and s p i c e s i n t o t h e c o u n t r y were n o t d i s r u p t e d . 24 F a r l y in December, t h e Consumer A d v i s e r , Dr. H a r r i e t E l l i o t t , in a r e p o r t to t h e Advisory Commission n o t e d t h a t p r i c e s , w h o l e s a l e and r e t a i l , of a l l c o m m o d i t i e s , i n c l u d i n g f o o d , w e r e s t e a d i l y r i s i n g a n d a s k e d t h a t some d e t e r m i n a t i o n b e m a d e a s t o w h e t h e r o r n o t s u c h i n c r e a s e s w e r e w a r r a n t e d . In s o f a r a s food p r i c e s were c o n c e r n e d , t h e A g r i c u l t u r a l A d v i s e r took the s t a n d t h a t a g r i c u l t u r a l p r i c e s s h o u l d not be f r o z e n " a t the r e l a t i v e l y u n s a t i s f a c t o r y l e v e l they have been h o l d i n g " bec a u s e t h e o n l y way t h a t a g r i c u l t u r e c o u l d p r o f i t f r o m i n c r e a s e d g o v e r n m e n t a l e x p e n d i t u r e s was by t a k i n g a d v a n t a g e o f t h e g r e a t e r demand f o r f o o d . 25 T o w a r d s t h e end o f t h e y e a r 1940, Dr. E l l i o t t o f t h e Nat i o n a l D e f e n s e A d v i s o r y Commission c a l l e d a t t e n t i o n o n c e more to t h e food s i t u a t i o n , t h i s t i m e in c o n n e c t i o n w i t h t h e p r o b a b l e meat s u p p l i e s . She recommended t h a t s t e p s be t a k e n to i n c r e a s e the supply along the f o l l o w i n g l i n e s : (1) measures s h o u l d be t a k e n t o c h e c k t h e d e c l i n e i n hog p r o d u c t i o n i n o r der to i n s u r e reasonably l i b e r a l s u p p l i e s during the year 1 9 4 1 - 194"?, a n d ( 2 ) t h e n u m b e r o f b e e f c a t t l e on t h e f a r m s h o u l d be s t a b i l i z e d a t t h e h i g h e s t l e v e l e x p e c t e d in t h e y e a r 1 9 4 1 . Her r e c o m m e n d a t i o n was a p p r o v e d and c o u p l e d w i t h s u g g e s t i o n t h a t t h e members of t h e N a t i o n a l D e f e n s e A d v i s o r y Commission meet with t h e S e c r e t a r y of A g r i c u l t u r e , s i n c e t h e l a t t e r was g e n e r a l l y r e c o g n i z e d a s b e i n g r e s p o n s i b l e f o r f o o d p r o d u c t i o n , in o r d e r t o d e t e r m i n e what o t h e r a d j u s t m e n t s o r i n c r e a s e s in food were n e e d e d . 2 4 The cil

Demise of of National

the

O f f i c e of Defense

Agricultural

Adviser

to

the

Coun-

I n 1 9 4 1 w a r m o b i l i z a t i o n on a l l f r o n t s , i n c l u d i n g f o o d o r g a n i z a t i o n , was s p u r r e d by t h e P r e s i d e n t . In J a n u a r y o f t h a t y e a r h i s " S t a t e of t h e U n i o n " s p e e c h gave a v i v i d d e s c r i p t i o n o f B r i t a i n ' s p l i g h t and u r g e d t h a t a i d be g i v e n t o t h a t u n h a p p y n a t i o n b e f o r e i t was t o o l a t e . T h r e e m o n t h s l a t e r t h e L e n d - L e a s e A c t was p a s s e d . T h e r e a f t e r , f o o d and o t h e r s u p p l i e s c o u l d be s e n t t o a n y n a t i o n whose d e f e n s e t h e P r e s i d e n t deemed e s s e n t i a l to t h e s e c u r i t y o f t h e U n i t e d S t a t e s . 2 7

6

WARTIME POOD PROCUREMENT AND PRODUCTION

A p p r o v a l o f d e f e n s e - a i d l e g i s l a t i o n was f o l l o w e d by t h e d e s i g n a t i o n of the Department of A g r i c u l t u r e as the p u r c h a s e agency f o r Lend-Lease food n e e d s . T h i s d e v e l o p m e n t , which came a t a t i m e when t h e f u n c t i o n s o f t h e P r i c e S t a b i l i z a t i o n a n d C o n s u m e r D i v i s i o n s h a d b e e n c o m b i n e d i n t o an O f f i c e o f P r i c e A d m i n i s t r a t i o n and C i v i l i a n S u p p l y , r a i s e d t h e q u e s t i o n n o t o n l y o f t h e f u t u r e o f t h e N a t i o n a l D e f e n s e A d v i s o r y Comm i s s i o n b u t a l s o t h e r e l a t i o n s h i p t h a t t h e A g r i c u l t u r a l Adv i s e r would b e a r t o t h e a g r i c u l t u r a l f u n c t i o n s of t h e D e p a r t ment of A g r i c u l t u r e . I n May 1 9 4 1 , t h e P r e s i d e n t r e q u e s t e d t h e S e c r e t a r y o f A g r i c u l t u r e t o e s t a b l i s h an O f f i c e o f A g r i c u l t u r a l D e f e n s e R e l a t i o n s w i t h i n h i s d e p a r t m e n t . The c h i e f e x e c u t i v e s t a t e d i n d e t a i l w h a t h e c o n c e i v e d t h e f u n c t i o n s o f t h e new o f f i c e t o b e . " U p t o t h e p r e s e n t t i m e , " he w r o t e , " t h e p r i n c i p a l r e s p o n s i b i l i t y for bringing agricultural a c t i v i t i e s into proper f o c u s in r e l a t i o n to d e f e n s e has been v e s t e d in the D i v i s i o n o f A g r i c u l t u r e of t h e N a t i o n a l D e f e n s e A d v i s o r y Commission. I b e l i e v e i t now d e s i r a b l e t o p l a c e t h e s e s p e c i a l d e f e n s e a c t i v i t i e s in t h e D e p a r t m e n t of A g r i c u l t u r e where t h e y w i l l be b r o u g h t c l o s e r to t h e e s t a b l i s h e d a g r i c u l t u r a l programs o f G o v e r n m e n t . " He t o o k t h e s t a n d t h a t , b r o a d l y c o n c e i v e d , " t h e most v i t a l o p e r a t i n g f u n c t i o n s of a g r i c u l t u r e in t h e d e f e n s e p r o g r a m , a r e f i r s t , t h e g u a r a n t e e of an a d e q u a t e s u p p l y o f f o o d f o r t h e n e e d s of t h i s n a t i o n and s u p p l e m e n t a l n e e d s o f t h o s e n a t i o n s whose d e f e n s e i s e s s e n t i a l t o t h e d e f e n s e o f t h i s c o u n t r y ; and s e c o n d , t h e p r o v i s i o n of s u f f i c i e n t a g r i c u l t u r a l raw m a t e r i a l s f o r e x p a n d e d d e f e n s e p r o d u c t i o n . " 2 ' In o r d e r t o a v o i d a n y c o n f u s i o n i n t h e d u t i e s o f t h e new o f f i c e , t h e P r e s i d e n t , perhaps in u n n e c e s s a r y d e t a i l , c a r e f u l l y s p e c i f i e d what he t h o u g h t i t s f u n c t i o n s o u g h t t o b e . I t was t o : ( 1 ) s e r v e a s a c l e a r i n g h o u s e t o b r i n g i n t o f o c u s t h e c o n s i d e r a t i o n of a g r i c u l t u r a l n e e d s and p r o b l e m s as t h e y r e l a t e to the defense program; (2) f a c i l i t a t e the c o o r d i n a t i o n o f d e f e n s e o p e r a t i o n s a s c a r r i e d on by v a r i o u s b u r e a u s and a g e n c i e s w i t h i n t h e Department; (3) a s s i s t the S e c r e t a r y in maintaining l i a i s o n with other defense agencies "with respect t o p r o b l e m s of p r o c u r e m e n t , p r o d u c t i o n , p r i o r i t i e s , p r i c e and o t h e r a c t i v i t i e s i n v o l v i n g a g r i c u l t u r a l c o n s i d e r a t i o n s " ; and ( 4 ) a s s i s t i n t h e p l a n n i n g of a d j u s t m e n t s i n t h e a g r i c u l t u r a l program to meet d e f e n s e n e e d s . 2 ' The new o f f i c e e s t a b l i s h e d p u r s u a n t t o t h e p r e s i d e n t i a l s u g g e s t i o n p l a c e d m a j o r e m p h a s i s on p l a n n i n g , l i a i s o n a n d a d v i c e , in o r d e r to minimize the p o s s i b i l i t y of c o n f l i c t with t h e d u t i e s o f e x i s t i n g b u r e a u s and a g e n c i e s w i t h i n t h e Dep a r t m e n t . I t c o n s i s t e d of f o u r main d i v i s i o n s : ( 1 ) a P r o d u c t i o n D i v i s i o n w h i c h was c h a r g e d w i t h t h e f u n c t i o n o f d e t e r m i n i n g t h e a g r i c u l t u r a l d e f e n s e r e q u i r e m e n t s o f t h e Army, t h e Navy, t h e d e f e n s e i n d u s t r i e s and t h e g o v e r n m e n t a g e n c i e s ; (2) a Farm E q u i p m e n t a n d S u p p l i e s D i v i s i o n w h i c h was c o n c e r n e d w i t h w h a t a g r i c u l t u r e m i g h t n e e d i n t h e way o f m a c h i n e r y a n d

INTRODUCTION

7

p r o c e s s i n g f a c i l i t i e s ; ( 3 ) a L a b o r and R u r a l I n d u s t r i e s D i v i s i o n r e s p o n s i b l e f o r l i a i s o n w i t h the bureaus o f the D e p a r t ment and o t h e r g o v e r n m e n t a g e n c i e s w i t h r e s p e c t t o a l l t h o s e p r o b l e m s a r i s i n g f r o m the l o c a t i o n o f war i n d u s t r i e s in r u r a l a r e a s ; and ( 4 ) a T r a n s p o r t a t i o n and M a r k e t i n g D i v i s i o n w h i c h was c o n c e r n e d w i t h a s s i s t i n g t h e f a r m e r i n t h e more e f f i c i e n t u s e o f t r a n s p o r t a t i o n , s t o r a g e and p r o c e s s i n g facilities.30 The c r e a t i o n w i t h i n t h e D e p a r t m e n t o f A g r i c u l t u r e o f t h e O f f i c e o f A g r i c u l t u r a l D e f e n s e R e l a t i o n s w i t h such w i d e p o w e r s s i g n a l l e d t h e end o f t h e A g r i c u l t u r e D i v i s i o n o f t h e N a t i o n a l D e f e n s e A d v i s o r y C o m m i s s i o n . To t h e A g r i c u l t u r a l A d v i s e r i t was an i n d i c a t i o n o f what t h e f u t u r e h e l d i n s t o r e f o r him. W i t h h i s o f f i c e s h o r n o f m o s t o f i t s d u t i e s , Mr. D a v i s r e s i g n e d . In a c c e p t i n g h i s r e s i g n a t i o n , t h e P r e s i d e n t p r a i s e d the A g r i c u l t u r a l A d v i s e r , s t a t i n g that h i s " s i n c e r e e f f o r t s in b r i n g i n g t o the d e f e n s e o r g a n i z a t i o n a r e c o g n i t i o n o f t h e s e r v i c e s w h i c h t h e a g r i c u l t u r a l p o p u l a t i o n has t o o f f e r , and t h e c o n s i d e r a t i o n w h i c h t h i s g r o u p must r e c e i v e , h a v e been o f o u t s t a n d i n g v a l u e t o the p r o g r e s s o f t h e d e f e n s e e f f o r t . "31

Other

Developments

I n May and June 1941 o t h e r e v e n t s o c c u r r e d w h i c h u n d e r l i n e d t h e u r g e n c y o f r a p i d and e f f e c t i v e m o b i l i z a t i o n . By l a t e s p r i n g t h e d e t e r i o r a t i o n o f B r i t a i n ' s f o o d s u p p l i e s had r e a c h e d a l a r m i n g p r o p o r t i o n s . 32 The P r e s i d e n t -n i s p e e c h d e d i c a t i n g t h e b i r t h p l a c e o f Woodrow W i l s o n i n d i c a t e d t h e n e a r n e s s o f A m e r i c a n i n v o l v e m e n t . He p r a i s e d t h e l a t t e r ' s w o r l d o u t l o o k . " I t i s t h e k i n d o f f a i t h , " he r e m a r k e d , " f o r w h i c h we h a v e f o u g h t b e f o r e and f o r t h e e x i s t e n c e o f w h i c h we a r e e v e r r e a d y t o f i g h t a g a i n . " 3 3 A p p r o x i m a t e l y t h r e e weeks l a t e r , on May 27, 1941, he p r o c l a i m e d t h a t an " u n l i m i t e d n a t i o n a l emergency c o n f r o n t s t h i s c o u n t r y which r e q u i r e s that i t s m i l i t a r y , n a v a l , a i r and c i v i l i a n d e f e n s e s be put on t h e b a s i s o f r e a d i n e s s t o r e p e l any and a l l t h r e a t s o f a g g r e s s i o n d i r e c t e d t o w a r d s any p a r t o f t h e W e s t e r n h e m i s p h e r e . " " T h i s e m e r g e n c y , " he c o n t i n u e d , r e q u i r e d " t h e s t r e n g t h e n i n g o f our d e f e n s e t o t h e e x t r e m e l i m i t o f o u r n a t i o n a l p o w e r and authority. "34 A t a b o u t t h e same t i m e c o n g r e s s i o n a l a c t i o n was t a k e n t o g i v e t h e f o o d f u n c t i o n g r e a t e r s t a b i l i t y . To r e l i e v e t h e u n c e r t a i n t y r e s u l t i n g f r o m huge s t o c k s o f b a s i c c o m m o d i t i e s and a t t h e same t i m e t o a s s u r e t h e c o n t i n u e d p r o d u c t i o n o f t h e s e i t e m s , C o n g r e s s e n a c t e d a l a w d i r e c t i n g t h e Commodity C r e d i t C o r p o r a t i o n t o make l o a n s on t h e s e c o m m o d i t i e s at 8 5 p e r c e n t o f p a r i t y f o r t h e y e a r 1941, p r o v i d e d t h a t m a r k e t i n g q u o t a s f o r t h e s e a g r i c u l t u r a l i t e m s w e r e n o t d i s a p p r o v e d by a r e f e r endum among t h e p r o d u c e r s . 3 5 Somewhat l a t e r t h e l i f e o f t h e Commodity C r e d i t C o r p o r a t i o n which f i n a n c e d the v a r i o u s f o o d supply programs o f the D e p a r t -

8

WARTIME FOOD PROCUREMENT AND PRODUCTION

m e n t o f A g r i c u l t u r e was e x t e n d e d and a d d i t i o n a l s t i m u l u s was g i v e n t o t h e p r o d u c e r s o f n o n - b a s i c c o m m o d i t i e s by p r o v i d i n g a p r i c e i n c e n t i v e in t h o s e i n s t a n c e s where t h e p r o d u c t i o n of s u c h i t e m s was n e e d e d i n t h e w a r e f f o r t . 3 6 In J u l y 1941 a d m i n i s t r a t i v e a c t i o n was t a k e n by t h e D e p a r t ment o f A g r i c u l t u r e t o s t r e n g t h e n i t s f i e l d a c t i v i t i e s . A l l f i e l d o f f i c e s c h a r g e d with d e f e n s e r e s p o n s i b i l i t i e s were g r o u p e d t o g e t h e r a t t h e s t a t e and c o u n t y l e v e l s i n t o S t a t e and County U n i t e d S t a t e s D e p a r t m e n t of A g r i c u l t u r e D e f e n s e B o a r d s . B e h i n d t h i s a d m i n i s t r a t i v e c h a n g e was t h e i n t e n t t o e l i m i n a t e d u p l i c a t i o n and w a s t e . 3 7 Gradual American

Emergence of the Food Spoke sman

Secretary

of

Agricu

Iture

as

the

In t h e s e c o n d h a l f o f t h e y e a r 1 9 4 1 , t h e S e c r e t a r y o f A g r i c u l t u r e g r a d u a l l y e m e r g e d a s t h e A m e r i c a n s p o k e s m a n on o u r a b i l i t y b o t h t o p r o d u c e f o o d a n d t o m e e t f o r e i g n and d o m e s t i c n e e d s . He a p p o i n t e d a j o i n t A n g l o - A m e r i c a n c o m m i s s i o n on B r i t i s h food n e e d s . L a t e r he o u t l i n e d t h e a g r i c u l t u r a l p o l i c y o f t h e U n i t e d S t a t e s in i t s e f f o r t t o s u p p l y England w i t h f o o d . The A m e r i c a n G o v e r n m e n t , h e a n n o u n c e d , w o u l d c o n t i n u e t o p l a n f o r i n c r e a s e d p r o d u c t i o n . The war m i g h t n a r r o w down t o t h e i s s u e o f " w h o can f e e d t h e h u n g r y p e o p l e of E u r o p e , t h e d e m o c r a c i e s o r t h e d i c t a t o r s h i p s . " I f t h i s were t h e c a s e t h e n " f o o d r e s e r v e s may. b e c o m e j u s t a s v a l u a b l e a weapon a s munitions themselves."39 S t i l l l a t e r when a member o f t h e O f f i c e o f P r o d u c t i o n Mana g e m e n t s t a t e d i n an i n t e r v i e w w i t h t h e p r e s s t h a t s h o r t a g e s o f f o o d s u p p l i e s w e r e i n t h e o f f i n g , i t was t h e S e c r e t a r y who s t a t e d t h a t no c o m m o d i t y w a s s c a r c e e n o u g h t o r e q u i r e r a t i o n i n g . * 0 In S e p t e m b e r , t h e l a t t e r d i r e c t e d t h e h o l d i n g o f a s e r i e s of f o u r r e g i o n a l m e e t i n g s d e s i g n e d t o b r i n g t o g e t h e r t h e members of t h e U n i t e d S t a t e s D e p a r t m e n t of A g r i c u l t u r e Def e n s e B o a r d s and t h e l e a d e r s of farm o r g a n i z a t i o n s in o r d e r t o p l a c e b e f o r e them t h e p r o d u c t i o n p r o g r a m f o r 1 9 4 2 . A m o n t h l a t e r t h e S e c r e t a r y a p p e a r e d b e f o r e a House C o m m i t t e e h o l d i n g h e a r i n g s on a d d i t i o n a l a p p r o p r i a t i o n s f o r L e n d - L e a s e a i d t o t e s t i f y on B r i t i s h f o o d n e e d s . * 1 Sum ma ry As t h e y e a r c l o s e d t h e D e p a r t m e n t o f A g r i c u l t u r e a p p e a r e d t o be i n an e x c e l l e n t p o s i t i o n t o o b t a i n p r i m a c y i n t h e f o o d f i e l d I t was an e s t a b l i s h e d a g e n c y w i t h a h a r d c o r e o f a d m i n i s t r a t i v e e x p e r i e n c e g a i n e d as a r e s u l t of d e a l i n g with a g r i c u l t u r a l s u r p l u s e s i n t h e p r e - w a r y e a r s . I t was a c l i e n t e l e d e p a r t m e n t and, to a l a r g e d e g r e e , i t e n j o y e d t h e s u p p o r t of p o w e r f u l f a r m g r o u p s and a g r i c u l t u r a l i n t e r e s t s i n C o n g r e s s . I t s one s e r i o u s c o m p e t i t o r , t h e A g r i c u l t u r a l D i v i s i o n of the N a t i o n a l D e f e n s e A d v i s o r y Commission, had been e l i m i n a t e d as

INTRODUCTION

9

a result of the presidential decision to lodge the food purchase function in the Department of Agriculture. The supremacy of the latter agency was virtually assured until the advent of the War Production Board.

CHAPTER

II

THE WAR FOOD ADMINISTRATION AND ITS PREDECESSOR AGENCIES Introduct

ion

The Japanese attack on Pearl Harbor and American entrance into the war brought a change in the governmental machinery for war production. Prior to that time there had been several unsuccessful attempts to concentrate administrative responsibility for war mobilization. The National Defense Advisory Commission, the Office of Production Management, the Office of Price Administration and Civilian Supply, and the Supply Priorities and Allocations Board, all represented steps in this direction. The War Production Board represented the most complete attempt at integration, for almost all of the directive powers over the war effort was placed within that agency. 1 But this centripetal tendency was followed by centrifugal demands on the part of specific products for special treatment. Rubber, for example, was successful in obtaining a separate status within the War Production Board. Oil won a partial victory when the Petroleum Administration for War was created. In the main, however, the War Production Board was able to beat back these challenges to its authority. Only Agriculture was successful in attaining autonomous status for food. The events which led to this furnish the major theme of this chapter. Creation

of the Y/ar Production

Board

In January 1942, the President, using the authority granted granted to him under the First War Powers A c t , 2 gave central direction over war mobilization to the War Production Board. Its Chairman was empowered to: (1) determine policies, plans and procedures of the various federal agencies concerned with war production and procurement; (2) make such changes in the organization of the Office of Production Management as he considered necessary; (3) assume all of the powers over priorities previously held by the predecessor agencies concerned with war production; and (4) finally to report directly to the President on the progress of conversion to war. *

THE WAR POOD ADMINISTRATION

11

In d i s c h a r g i n g t h i s b r o a d a s s i g n m e n t , the Chairman w i t h the a d v i c e and a s s i s t a n c e o f b o a r d members, was " t o p e r f o r m the a d d i t i o n a l f u n c t i o n s and d u t i e s , and e x e r c i s e t h e a d d i t i o n a l p o w e r s , a u t h o r i t y and d i s c r e t i o n c o n f e r r e d upon t h e P r e s i d e n t o f t h e U n i t e d S t a t e s by t i t l e I I I o f t h e Second War Powers A c t . " He c o u l d c a r r y o u t h i s d u t i e s through such a g e n c i e s as he might d e s i g n a t e . I f t h e Chairman d e s i r e d , he c o u l d d e l e g a t e to the O f f i c e of P r i c e A d m i n i s t r a t i o n " s u c h o f h i s f u n c t i o n s , d u t i e s , p o w e r s , a u t h o r i t y or d i s c r e t i o n w i t h r e s p e c t t o p r i o r i t i e s or r a t i o n i n g as he may deem t o be n e c e s s a r y or a p p r o p r i a t e f o r t h e e f f e c t i v e p r o s e c u t i o n o f the war . . . . " I f n e c e s s a r y , he c o u l d i n s t i t u t e c i v i l p r o c e e d i n g s in h i s name to e n f o r c e p r i o r i t y o r r a t i o n i n g r e g u l a t i o n s . Finally, a l l d i r e c t i v e s o f t h e War P r o d u c t i o n Board or i t s p r e d e c e s s o r a g e n c i e s w i t h r e s p e c t to p r i o r i t i e s and r a t i o n i n g were t o have f u l l f o r c e and e f f e c t . 1 " A s e s t a b l i s h e d the o r g a n i z a t i o n o f t h e War P r o d u c t i o n Board was d i r e c t e d p r i m a r i l y toward t h e c o n v e r s i o n o f the m a j o r r e s o u r c e s o f t h e c i v i l i a n economy to production f o r w a r . " 5 So b r o a d was t h e power g r a n t e d to the head o f t h e new a g e n cy t h a t in some q u a r t e r s t h e r e was the t e n d e n c y t o compare i t w i t h the e x e c u t i v e g r a n t g i v e n by P r e s i d e n t W i l s o n to the Chairman o f t h e War I n d u s t r i e s Board d u r i n g World War I . E d i t o r i a l l y t h e New Y o r k Times termed t h e e x e c u t i v e o r d e r t h e g r e a t e s t d e l e g a t i o n o f power in the h i s t o r y o f t h e n a t i o n . 6 The s w e e p i n g n a t u r e o f the d i r e c t i v e power v e s t e d in t h e new agency l e d t h e S e c r e t a r y o f A g r i c u l t u r e t o o r d e r h i s c h i e f law o f f i c e r to i n q u i r e i n t o the e f f e c t t h a t i t s e s t a b l i s h m e n t had upon t h e a c t i v i t i e s o f the Department o f A g r i c u l t u r e . The S o l i c i t o r o f t h e Department in a f o r m a l o p i n i o n s t a t e d t h a t the p r e s i d e n t i a l o r d e r had c o n f e r r e d upon the Chairman o f t h e War P r o d u c t i o n Board a l l d e l e g a b l e e x e c u t i v e a u t h o r i t y r e l a t i n g t o war p r o d u c t i o n and p r o c u r e m e n t . T h i s a u t h o r i t y , t h e S o l i c i t o r f e l t , was l i m i t e d o n l y by the f a c t t h a t i t must be r e l a t e d t o t h e war and the Chairman had comp l e t e d i s c r e t i o n t o d e t e r m i n e what r e l a t e d t o the war. Thus t h e power o f t h e head o f t h e new agency e x t e n d e d t o a l l o f the Department o f A g r i c u l t u r e ' s programs whether c o n c e r n e d w i t h p r o d u c t i o n , p u r c h a s e f o r L e n d - L e a s e o r even t h e d i s t r i b u t i o n o f s u p p l i e s t o t h e g e n e r a l p u b l i c . T h e r e was no doubt t h a t t h e head o f t h e War P r o d u c t i o n Board had c o m p l e t e c o n t r o l o v e r the food f u n c t i o n . '

Dispers

ion

of

Food

Authority

The immediate e f f e c t o f t h e e x e c u t i v e o r d e r i n t h e i n d u s t r i a l f i e l d was good b e c a u s e i t not o n l y e l i m i n a t e d many c a u s e s o f j u r i s d i c t i o n a l d i s p u t e s but a l s o b e c a u s e i t made t h e Chairman o f the War P r o d u c t i o n Board the f i n a l a r b i t e r o v e r war p r o d u c t i o n . But t h e c l a r i t y o f r e s p o n s i b i l i t y

12

WARTIME FOOD PROCUREMENT AND PRODUCTION

a c h i e v e d f o r i n d u s t r i a l m o b i l i z a t i o n was not accompanied by a s i m i l a r end p r o d u c t w i t h r e s p e c t to the food f u n c t i o n . I n d e e d , the c o n t r a r y was t h e c a s e . Too many a g e n c i e s had t h e i r f i n g e r s in t h e food p i e . The Department of A g r i c u l t u r e , which had r e s p o n s i b i l i t y f o r p r o d u c t i o n and t h e d i s t r i b u t i o n of s u r p l u s a g r i c u l t u r a l c o m m o d i t i e s , had a l s o a c q u i r e d the f u n c t i o n of p u r c h a s i n g f o r L e n d - L e a s e n e e d s . The Board of Economic W a r f a r e bought food o u t s i d e of the c o n t i n e n t a l l i m i t s of the U n i t e d S t a t e s at the d i r e c t i o n of the War P r o d u c t i o n Board. By l e g i s l a t i o n the O f f i c e of P r i c e A d m i n i s t r a t i o n had c o n t r o l o v e r a l l p r i c e s , i n c l u d i n g t h a t of food. Food procurement f o r the armed f o r c e s was h a n d l e d s e p a r a t e l y by War and Navy d e p a r t m e n t s , which meant t h a t the Department of A g r i c u l t u r e s h a r e d t h e food p u r c h a s e f u n c t i o n . Even w i t h i n the War P r o d u c t i o n Board i t s e l f , t h e food f u n c t i o n was d i v i d e d between s u c h i n d u s t r y d i v i s i o n s a s t h e Food S u p p l y Branch and t h e C o n t a i n e r s B r a n c h , on one hand, and t h e D i v i s i o n of C i v i l i a n S u p p l y , on t h e o t h e r . Presumably t h e head of t h e agency would b r i n g about the n e c e s s a r y c o o r d i n a t i o n between t h e two g r o u p s , b u t , as we s h a l l s e e l a t e r , t h e r e was c o n s i d e r a b l e d i f f e r e n c e of o p i n i o n on such m a t t e r s a s t h e u s e of c r i t i c a l m e t a l s f o r food p a c k a g i n g , and the i s s u a n c e of r a t i o n i n g d i r e c t i v e s based upon t h e p r i o r i t y power of t h e Chairman of t h e War P r o d u c t i o n Board. C o n f l i c t and c o n t r o v e r s y were c o n s t a n t between the two g r o u p s a s to p r i o r ity policies. Thus, in b r i e f , d i s p e r s i o n of food a u t h o r i t y e x i s t e d , and t h e c o n s t a n t tug and h a u l among the s e v e r a l a g e n c i e s c h a r g e d w i t h food f u n c t i o n g e n e r a t e d c o n s i d e r a b l e f r i c t i o n . During t h e f i r s t h a l f of t h e y e a r 1942 the food s i t u a t i o n s t e a d i l y w o r s e n e d . The need f o r more c e n t r a l i z e d e f f o r t was d a i l y b e coming e v i d e n t . On p a p e r , at l e a s t , t h e Chairman of t h e War P r o d u c t i o n Board was armed w i t h v a s t powers o v e r s u p p l y , d i s t r i b u t i o n and procurement p o l i c y . L o g i c a l l y , he s h o u l d have s e c u r e d the u n i f i c a t i o n and c o o r d i n a t i o n of the food e f f o r t . 3ut he was f a c e d w i t h t h i s p a r a d o x : t h e t a s k of t o t a l war m o b i l i z a t i o n was more than any one agency or person c o u l d a c c o m p l i s h . As a c o n s e q u e n c e , in c a r r y i n g out h i s f u n c t i o n s , he was f o r c e d to depend on o t h e r a g e n c i e s . I t was t r u e t h a t c e n t r a l i z a t i o n of a u t h o r i t y had been a c h i e v e d but a s a r e s u l t of t h i s v e r y f a c t , d e l e g a t i o n s of power had to be made to o t h e r g o v e r n m e n t a l a g e n c i e s which in many i n s t a n c e s tended to b l u r or at l e a s t d i v i d e a c c o u n t a b i l i t y between t h e War P r o d u c t i o n Board and o t h e r a g e n c i e s which were then at the p e r i p h e r y of the t o t a l war e f f o r t . Two e x a m p l e s may be used to i l l u s t r a t e t h e d i f f i c u l t y . In m i d - J a n u a r y 1942, a t a p p r o x i m a t e l y t h e same t i m e t h a t the War P r o d u c t i o n Board was c r e a t e d , the S e c r e t a r y of A g r i c u l t u r e announced t h a t i t would be n e c e s s a r y to r e v i s e t h e p r o d u c t i o n g o a l s s e t d u r i n g the l a s t q u a r t e r of 1941. T h i s was b e c a u s e of t h e a l m o s t c o m p l e t e d i s a p p e a r a n c e of food i m p o r t s from t h e

THE WAR FOOD ADMINISTRATION

13

F a r E a s t . B u t t h e new p r o g r a m w o u l d r e q u i r e c o n s i d e r a b l e a m o u n t s o f i r o n and s t e e l f o r t h e m a n u f a c t u r e of f a r m m a c h i n e r y . The r e l e a s e o f t h e s e m a t e r i a l s was d e p e n d e n t u p o n t h e War P r o d u c t i o n B o a r d , and i f t h e a m o u n t s r e q u e s t e d by t h e S e c r e t a r y were not f o r t h c o m i n g , the l a t t e r could claim with a c o n s i d e r a b l e d e g r e e o f r e a s o n a b l e n e s s t h a t h e was n o t b e i n g given a u t h o r i t y commensurate with h i s assigned task.® The c e n t r a l i z a t i o n o f a u t h o r i t y on r a t i o n i n g a l s o c r e a t e d d i f f i c u l t y . The War P r o d u c t i o n B o a r d c o u l d e x e r c i s e t h e power i t s e l f o r i t c o u l d d e l e g a t e t h e t a s k t o some o t h e r a g e n c y . I t d e c i d e d on t h e l a t t e r a l t e r n a t i v e , and s h o r t l y a f t e r i t s i n c e p t i o n , i t i s s u e d r a t i o n i n g D i r e c t i v e No. 1 w h i c h g a v e t h e O f f i c e of P r i c e A d m i n i s t r a t i o n t h e power t o p r o v i d e f o r t h e e q u i t a b l e r a t i o n i n g of p r o d u c t s at the r e t a i l l e v e l . ' The p r o b l e m s i n h e r e n t i n s u c h a d e l e g a t i o n a r e w e l l i l l u s t r a t e d by t h e p r e l i m i n a r y p r e p a r a t i o n s f o r t h e r a t i o n i n g o f s u g a r . The War P r o d u c t i o n B o a r d h a d i n h e r i t e d f r o m i t s p r e d e c e s s o r a g e n c y a w a r t i m e c o n s e r v a t i o n o r d e r M-55 w h i c h , j u s t a f t e r P e a r l H a r b o r , h a d f r o z e n s t o c k s of s u r p l u s s u g a r i n t h e h a n d o f i n d u s t r i a l u s e r s , j o b b e r s and w h o l e s a l e r s . But a s t i m e w e n t on i t was e v i d e n t t h a t a l l o c a t i o n and p r i o r i t y o r d e r s would n o t be s u f f i c i e n t t o meet t h e t h r e a t of a s u g a r s h o r t a g e . F x i s t i n g s t o c k s w o u l d h a v e t o b e p r o t e c t e d by a consumer r a t i o n i n g program. Although t h e O f f i c e of P r i c e A d m i n i s t r a t i o n had the a u t h o r i t y t o r a t i o n , s e v e r a l j u r i s d i c t i o n a l q u e s t i o n s had t o be s e t t l e d b e f o r e t h e r a t i o n i n g p r o g r a m c o u l d be i n s t i t u t e d . Who was t o d e t e r m i n e t h e maximum a m o u n t s o f s u g a r a v a i l a b l e f o r r a t i o n i n g ? Who was t o e s t a b l i s h t h e t i m e a n d o t h e r c o n d i t i o n s o f r a t i o n i n g ? S i n c e i t had b e e n g i v e n t h e j o b o f a d m i n i s t e r i n g a r a t i o n i n g program, the O f f i c e of P r i c e Administ r a t i o n i n s i s t e d t h a t i t s h o u l d have t h e r i g h t to d e c i d e s u c h q u e s t i o n s . On t h e o t h e r h a n d , t h e Food S u p p l y B r a n c h o f t h e War P r o d u c t i o n B o a r d f e l t t h a t i t h a d t h e p r i m a r y r e s p o n s i b i l i t y f o r r e m e d y i n g t h e m a l d i s t r i b u t i o n o f s u g a r and t h a t , t h e r e f o r e , i t s h o u l d have t h e power to d e t e r m i n e t h e p r i n c i p l e s o f s u g a r r a t i o n i n g and t h e a m o u n t s t h a t s h o u l d be a l l o t t e d f o r consumer r a t i o n i n g . Meanwhile as t h e c o n t r o v e r s y b e t w e e n t h e d i v e r g e n t v i e w s o f t h e two a g e n c i e s d r a g g e d o n , the sugar s i t u a t i o n d e t e r i o r a t e d s t e a d i l y . D i f f i c u l t i e s i n t h e f i e l d of f o r e i g n food p r o c u r e m e n t s e e m e d p r o b a b l e , s i n c e t h e B o a r d o f E c o n o m i c W a r f a r e was c h a r g e d n o t o n l y w i t h t h e g e n e r a l f u n c t i o n of economic warf a r e b u t a l s o by d i r e c t i v e s o f t h e War P r o d u c t i o n B o a r d w i t h t h e p u r c h a s e of f o o d s o u t s i d e of t h e c o n t i n e n t a l limits. T h e r e was t h e p o s s i b i l i t y t h a t j u s t a s i n t h e c a s e o f s u g a r r a t i o n i n g t h e t i m e and o t h e r c o n d i t i o n s of t h e d i r e c t i v e m i g h t become t h e s u b j e c t o f some c o n t r o v e r s y .

14 Pre I ininary

WARTIME POOD PROCUREMENT AND PRODUCTION Steps

toward

More

Unity

F u l l y aware o f t h e j u r i s d i c t i o n a l p r o b l e m s , t h e Chairman o f t h e War P r o d u c t i o n Board in m i d - A p r i l took s t e p s t o c l a r i f y t h e s u p p l y , p r o d u c t i o n and d i s t r i b u t i o n r e l a t i o n s h i p s o f the Board o f Economic W a r f a r e , t h e Department o f A g r i c u l t u r e , t h e O f f i c e o f P r i c e A d m i n i s t r a t i o n , and h i s own a g e n c y . On A p r i l 22nd he c i r c u l a t e d a memorandum t o the heads o f t h e s e a g e n c i e s and t o the head o f h i s R e q u i r e m e n t s C o m m i t t e e , a s k i n g f o r t h e i r comments on h i s p r o p o s a l . The d e v i c e f o r o b t a i n i n g c o o r d i n a t i o n which N e l s o n p r o p o s e d to u s e was an i n t e r - a g e n c y f o o d r e q u i r e m e n t s s u b - c o m m i t t e e t h a t would f u n c t i o n as a p a r t o f the then e x i s t i n g WPG Req u i r e m e n t s C o m m i t t e e . 1 1 The s u b - c o m m i t t e e was to be headed by the S e c r e t a r y o f A g r i c u l t u r e as chairman and in a d d i t i o n was t o be composed o f r e p r e s e n t a t i v e s o f the D i v i s i o n o f C i v i l i a n Supply and I n d u s t r y O p e r a t i o n s o f the War P r o d u c t i o n Board, and o t h e r d e s i g n e e s from the Board o f Economic W a r f a r e , War and Navy Depar tmen t s , and the O f f i c e o f L e n d - l . e a s e Admin i s t r a t i on . ^ The powers and f u n c t i o n s o f the i n t e r - a g e n c y f o o d r e q u i r e ments s u b - c o m m i t t e e w e r e d e s c r i b e d in g r e a t d e t a i l by the N e l s o n memorandum. The s u b - c o m m i t t e e would have the power t o recommend t o the f u l l R e q u i r e m e n t s Committee o f t h e War P r o d u c t i o n Board the d i r e c t and i n d i r e c t r e q u i r e m e n t s f o r a l l a g r i c u l t u r a l p r o d u c t s and f o r m a t e r i a l and equipment needed t o produce such r e q u i r e m e n t s . I t would a l s o s u g g e s t the e x t e n t t o which p r o d u c t i o n or i m p o r t a t i o n was t o be i n c r e a s e d or d e c r e a s e d t o meet such r e q u i r e m e n t s . In f o r m u l a t i n g p r o g r a m s , h o w e v e r , the s u b - c o m m i t t e e was t o c o n s i d e r the v i e w s o f the v a r i o u s c o n s t i t u e n t a g e n c i e s r e p r e s e n t e d on the s u b - c o m m i t t e e . Power t o make f i n a l d e c i s i o n s on t h e s e recommendations was to be v e s t e d in the WPB R e q u i r e m e n t s C o m m i t t e e . 1 ' ' The N e l s o n p r o p o s a l a l s o sought t o draw t h e l i n e between the f u n c t i o n s o f t h e Department o f A g r i c u l t u r e and the War P r o d u c t i o n B o a r d . A f t e r t h e recommendations o f t h e f o o d s r e q u i r e m e n t s u b - c o m i t t e e had been r a t i f i e d by the WPB R e q u i r e ments C o m m i t t e e , f o o d programs were t o be c a r r i e d out in t h e f o l l o w i n g manner. The Department o f A g r i c u l t u r e would assume c o n t r o l o v e r a g r i c u l t u r a l programs up t o and i n c l u d i n g the " s t a g e o f f i r s t p r o c e s s i n g . " I t would a r r a n g e f o r t h e i n c r e a s e or d e c r e a s e in t h e d o m e s t i c p r o d u c t i o n o f a g r i c u l t u r a l c o m m o d i t i e s in a c c o r d a n c e w i t h the d e c i s i o n r e a c h e d by the R e q u i r e m e n t s C o m m i t t e e . But a f t e r t h i s f i r s t s t a g e had been c o m p l e t e d , t h e d i r e c t i o n o f programs f o r the f u r t h e r p r o c e s s i n g and d i s t r i b u t i o n o f f o o d s t u f f s was t o become t h e p r o v i n c e o f t h e War P r o d u c t i o n B o a r d . In s i m i l a r f a s h i o n t h e memorandum p r o p o s e d to d e f i n e more c l e a r l y the p o w e r s o f t h e Board o f Economic W a r f a r e . The l a t t e r agency was t o assume f u l l c o n t r o l o v e r a l l programs f o r t h e p u r c h a s e and i m p o r t a t i o n o f a g r i c u l t u r a l c o m m o d i t i e s from f o r e i g n s o u r c e s . I t was a l s o t o a s s i s t the f o r e i g n p r o -

THE WAR POOD ADMINISTRATION

15

d u c t i o n o f a g r i c u l t u r a l p r o d u c t s by p r o v i d i n g f i n a n c i a l a s s i s t a n c e where needed. O v e r - a l l a l l o c a t i o n s o f a v a i l a b l e f o o d s t u f f s were to be made by t h e WPB R e q u i r e m e n t s C o m m i t t e e on t h e b a s i s o f r e c o m m e n d a t i o n s t o b e made t o i t by t h e f o o d r e q u i r e m e n t s s u b committee. Within these o v e r - a l l a l l o c a t i o n s , the d i v i s i o n o f t h e amounts to be made a v a i l a b l e t o f o r e i g n s o u r c e s was t o be made by t h e B o a r d o f E c o n o m i c W a r f a r e in c o n s u l t a t i o n w i t h the Lend-Lease A d m i n i s t r a t i o n . A l l o t m e n t o f f o o d s t u f f s f o r d o m e s t i c and m i l i t a r y u s e s w i t h i n t h e o v e r - a l l allocat i o n s f r a m e w o r k was t o be made by an a g e n c y o f t h e War P r o d u c t i o n B o a r d o r by t h e O f f i c e o f P r i c e A d m i n i s t r a t i o n " o r o t h e r a p p r o p r i a t e agency in a c c o r d a n c e w i t h a r r a n g e m e n t s t o b e d e t e r m i n e d f r o m t i m e t o t i m e by t h e War P r o d u c t i o n Board. . . . " I f r a t i o n i n g w e r e n e c e s s a r y , i t w o u l d be c a r r i e d o u t in a c c o r d a n c e w i t h d i r e c t i v e s i s s u e d by t h e War Production Board." Agency

Comment

on

the

\elson

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The N e l s o n p l a n d i d n o t m e e t w i t h an e n t h u s i a s t i c r e s p o n s e e i t h e r f r o m c o n s t i t u e n t p a r t s o f h i s own a g e n c y o r f r o m t h o s e on t h e o u t s i d e . Some f e l t t h a t i t d i d n o t m e e t the need f o r a u n i f i e d a u t h o r i t y i n t h e f o o d f i e l d , while o t h e r s thought the powers i t proposed were not p r o p e r l y d i s t r i b u t e d among t h e v a r i o u s p a r t i c i p a t i n g a g e n c i e s . The S e c r e t a r y o f A g r i c u l t u r e may be c o n s i d e r e d i n t h e l a t t e r c a t e g o r y and i n t h e l i g h t o f what h a p p e n e d t o t h e N e l s o n p r o p o s a l , h i s comments a r e w o r t h g i v i n g at some l e n g t h . In h i s r e p l y t o t h e memorandum t h a t N e l s o n had f o r w a r d e d t o him, t h e S e c r e t a r y e x p r e s s e d c o n s i d e r a b l e d i s a p p o i n t m e n t . He e x p l a i n e d t h a t i t was h i s u n d e r s t a n d i n g t h a t t h e War P r o d u c t i o n B o a r d was t o g i v e h i s D e p a r t m e n t as much a d d i t i o n a l r e s p o n s i b i l i t y f o r d o m e s t i c p r o d u c t i o n , p r o c u r e m e n t and d i s t r i b u t i o n o f a g r i c u l t u r a l p r o d u c t s as was c o n s i s t e n t w i t h the o v e r - a l l a u t h o r i t y o f t h a t agency. " I t i s a q u e s t i o n , " he c o n t i n u e d , " a s t o w h e t h e r i t w o u l d d e l e g a t e t o t h e D e p a r t ment t h e a d d i t i o n a l a u t h o r i t y n e c e s s a r y t o a more e f f i c i e n t handling of our a g r i c u l t u r a l problem."1S The S e c r e t a r y a d m i t t e d t h a t t h e p r o p o s e d f o o d r e q u i r e m e n t s s u b - c o m m i t t e e was a s t e p i n t h e r i g h t d i r e c t i o n b u t t h i s r e mark was t e m p e r e d by h i s f e a r t h a t t h e D e p a r t m e n t ' s v i e w p o i n t m i g h t be s u b o r d i n a t e d t o o c o m p l e t e l y t o t h e WPB R e q u i r e m e n t s C o m m i t t e e . " I am u n e a s y , " he went on t o s a y , " a b o u t an a r r a n g e m e n t w h e r e b y t h e D e p a r t m e n t ' s v i e w on f o o d m i g h t be s u b o r d i n a t e d w i t h i n t h e R e q u i r e m e n t s C o m m i t t e e i t s e l f . The . . . v i e w s o f t h e s u b - c o m m i t t e e a r e c o m p l e t e l y s u b j e c t to the d e t e r m i n a t i o n s o f the R e q u i r e m e n t s Committee o f t h e War P r o d u c t i o n B o a r d w h i c h has among i t s members a g e n c i e s o t h e r t h a n t h e War P r o d u c t i o n B o a r d and w h i c h i n c l u d e s no r e p r e s e n t a t i v e o f t h e D e p a r t m e n t o f A g r i c u l t u r e . " 1 6 To

16

WARTIME POOD PROCUREMENT AND PRODUCTION

m i n i m i z e t h e i n f l u e n c e o f t h e WPB R e q u i r e m e n t s C o m m i t t e e h e s u g g e s t e d t h e r e v i e w o f t h e f o o d r e q u i r e m e n t s s u b - commi 11 e e r e c o m m e n d a t i o n s by t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d . "We w o u l d n o t m i n d i n t h e l e a s t r e v i e w i n g o u r p r o d u c t i o n p r o g r a m s w i t h t h e C h a i r m a n o f t h e R e q u i r e m e n t s C o m m i t t e e , " he w r o t e , " b u t we w o u l d p r e f e r t h a t f i n a l d e t e r m i n a t i o n s r e m a i n where they a r e at the p r e s e n t . "1T Two o t h e r c r i t i c i s m s o f t h e N e l s o n p l a n w e r e o f f e r e d by t h e S e c r e t a r y , lie e x p r e s s e d d i s a p p o i n t m e n t a b o u t t h e f a c t t h a t n o r e f e r e n c e had been made t o t h e p r o c u r e m e n t f u n c t i o n s o f h i s D e p a r t m e n t and o f f e r e d t h e s u g g e s t i o n t h a t some f u r t h e r c l a r i f i c a t i o n o f t h i s p o i n t s h o u l d be made. F i n a l l y he d e c l a r e d t h a t he d i d n o t know w h a t t h e s t a g e o f f i r s t p r o c e s s i n g m e a n t . The S e c r e t a r y r e q u e s t e d c o n s u l t a t i o n s between representatives o f t h e War P r o d u c t i o n B o a r d a n d h i s D e p a r t m e n t i n o r d e r t o e x p r e s s h i s views at g r e a t e r length." W i t h i n t h e War P r o d u c t i o n B o a r d c o n s t i t u e n t p a r t s o f t h e a g e n c y e x h i b i t e d v a r y i n g d e g r e e s o f a c c e p t a n c e of the p l a n . T h e h e a d o f t h e War P r o d u c t i o n B o a r d s R e q u i r e m e n t s C o m m i t t e e approved the Nelson plan s u b j e c t to the f o l l o w i n g q u a l i f i c a t i o n s : f l ) " t h a t t h e WPB h a v e t h e ' f i n a l s a y ' i n t h e e v e n t t h a t t h e r e i s a n y d i s a g r e e m e n t . . . " ; ( 2 ) " t h a t WPB c a n s p e c i f y t h e amount o f food p r o d u c t s n e e d e d f o r d i r e c t war p u r p o s e s and a n d t h a t t h e s e w i l l come f i r s t in s u c h q u a n t i t i e s and s u c h q u a l i t i e s a s we n e e d t h e m , t o k e e p t h e w a r m a c h i n e g o i n g " ; a n d ( 3 ) " t h a t t h e WP3 had c o m p l e t e c o n t r o l o f t h e s h i p p i n g p r i o r i t i e s on i m p o r t s o f a g r i c u l t u r a l products."19 In h i s l e t t e r o f c o m m e n t , t h e C h i e f o f t h e F o o d S u p p l y B r a n c h o f t h e War P r o d u c t i o n B o a r d s t r e s s e d t h e n e e d f o r a c e n t r a l a u t h o r i t y o v e r the e n t i r e food p r o g r a m . D i v i d e d aut h o r i t y , he f e l t , was t h e c h i e f w e a k n e s s , but he a r g u e d , the p r o p o s e d d i r e c t i v e d i d n o t h i n g to remedy the s i t u a t i o n . " T h e l e t t e r o f A p r i l 2 ? n d , " he s a i d , " a n t i c i p a t e s h a n d l i n g f o o d p r o b l e m s by t h e e l a b o r a t i o n o f t h e a l r e a d y e x i s t i n g m a c h i n e r y o f t h e War P r o d u c t i o n B o a r d . " M o r e o v e r , t h e a t t e m p t t o s e t u p a l i n e o f d e m a r c a t i o n between the Department o f A g r i c u l t u r e a n d t h e War P r o d u c t i o n B o a r d a t t h e s t a g e o f f i r s t processing w a s b o u n d t o f a i l b e c a u s e no o n e s e e m e d t o b e a b l e t o d e f i n e t h e t e r m . I n s t e a d o f t h e p i e c e m e a l a p p r o a c h p r o p o s e d by N e l s o n , t h e head o f the Food S u p p l y B r a n c h recommended " t h a t a f o o d a d m i n i s t r a t i o n be e s t a b l i s h e d w h i c h w i l l p o s s e s s l i n e a u t h o r i t y and n o t f u n c t i o n t h r o u g h c o m m i t t e e c o n t r o l . " ^ 0 N o r was t h e B o a r d o f F c o n o m i c W a r f a r e e n t i r e l y s a t i s f i e d with the Nelson p r o p o s a l . I t complained that t h e term " a g r i c u l t u r a l p r o d u c t s " was much t o o b r o a d , c o v e r i n g f i b e r , rubber and o t h e r i t e m s which had i n d u s t r i a l a s well a s f o o d u s e s . T h i s c o n d i t i o n , i t a r g u e d , was bound t o a g g r a v a t e j u r i s d i c t i o n a l d i s p u t e s i n s t e a d o f m i n i m i z i n g t h e m . In t h e i n t e r e s t o f u n i t y , the e x e c u t i v e d i r e c t o r p r o p o s e d that the term be m o r e c a r e f u l l y d e f i n e d . In a s i m i l a r v e i n was t h e o b s e r v a t i o n m a d e by t h e a g e n c y i n r e g a r d t o t h e f o r e i g n r e q u i r e m e n t s w o r k

THE WAR POOD ADMINISTRATION

17

o f the food requirements sub-committee. N e l s o n ' s proposals, i t a s s e r t e d , w o u l d a s s i g n to t h e f o o d r e q u i r e m e n t s subc o m m i t t e e f u n c t i o n s w h i c h w e r e a l r e a d y b e i n g p e r f o r m e d by t h e B o a r d o f F c o n o m i c W a r f a r e . I t was s u g g e s t e d by t h e head o f t h a t a g e n c y t h a t t h e N e l s o n memorandum be amended " t o i n d i c a t e t h a t t h e work [ f o r e i g n r e q u i r e m e n t s ] s h o u l d b e done i n conjunction with u s . " " U n f a v o r a b l e comment came from s t i l l a n o t h e r q u a r t e r . A c o p y o f t h e N e l s o n p r o p o s a l had a l s o been s e n t t o t h e head o f t h e B r i t i s h S u p p l y C o u n c i l f o r r e v i e w and c r i t i c i s m . In r e p l y t h e l a t t e r e x p r e s s e d t h e o p i n i o n t h a t n o t enough power had been g i v e n t o t h e S e c r e t a r y o f A g r i c u l t u r e , t h e man whom he w o u l d l i k e t o s e e made r e s p o n s i b l e f o r a l l f o o d m a t t e r s . " I feel o b l i g e d t o s a y , " he c o n c l u d e d , " t h a t i t [ N e l s o n p r o p o s a l ] d o e s n o t seem t o m e e t i n i t s p r e s e n t form t h e common o b j e c t i v e s w h i c h I b e l i e v e b o t h you and I h a v e i n mind. Revision

of

the

Nelson

Plan

In f a c e o f t h i s a l m o s t unanimous c r i t i c i s m o f an o r d e r w h i c h in t h e f i n a l a n a l y s i s g r a n t e d o n l y token a u t h o r i t y , the Chairman o f t h e War P r o d u c t i o n B o a r d t o o k s t e p s t o i s s u e a r e v i s e d d r a f t . B o t h t h e D e p a r t m e n t o f A g r i c u l t u r e and h i s a g e n c y worked t o g e t h e r t o i r o n o u t the i n d i c a t e d d i f f i c u l t i e s . The D e p a r t m e n t o f A g r i c u l t u r e was asked t o submit i t s v e r s i o n o f what i t t h o u g h t t h e g r a n t o f a u t h o r i t y ought t o b e . By May a new d r a f t o f t h e o r i g i n a l p r o p o s a l was r e a d y . 2 ' M o s t o f t h e o b j e c t i o n s r a i s e d i n i t i a l l y by t h e D e p a r t m e n t o f A g r i c u l t u r e w e r e met by t h e new memorandum. A Foods Req u i r e m e n t C o m m i t t e e c o n s i s t i n g o f a Chairman and s i x members was t o be e s t a b l i s h e d . The new c o m m i t t e e was s t i l l t o f u n c t i o n a s a s u b - c o m m i t t e e o f t h e War P r o d u c t i o n Board R e q u i r e ments C o m m i t t e e . A c t i o n s o f t h e Foods R e q u i r e m e n t s C o m m i t t e e w e r e r e v i e w e d in t h e f o l l o w i n g manner. R e c o m m e n d a t i o n s o f t h i s c o m m i t t e e w e r e t o be made t o t h e f u l l R e q u i r e m e n t s Comm i t t e e but in t h e e v e n t o f d i s a g r e e m e n t b e t w e e n t h e p a r e n t c o m m i t t e e and i t s sub-commi t t e e on " r e q u i r e m e n t s , " t h e d e c i s i o n o f t h e Chairman o f t h e War P r o d u c t i o n Board w o u l d be c o n t r o l l i n g and f i n a l . The Chairman o f t h e Foods R e q u i r e m e n t s C o m m i t t e e was t o be g i v e n the p o w e r t o i n i t i a t e p r o g r a m s f o r t h e u t i l i z a t i o n o f a g r i c u l t u r a l i t e m s which had b o t h f o o d and n o n - f o o d u s e s . C o n c u r r e n c e by t h e Chairman o f t h e R e q u i r e ments C o m m i t t e e meant t h a t such r e c o m m e n d a t i o n s became f i n a l . In t h e e v e n t o f d i s a g r e e m e n t , h o w e v e r , t h e head o f t h e War P r o d u c t i o n Board took f i n a l action.2* The head o f t h e F o o d s R e q u i r e m e n t C o m m i t t e e a f t e r c o n s u l t a t i o n w i t h o t h e r c o m m i t t e e members was t o be g i v e n t h e p o w e r to d e t e r m i n e the a l l o c a t i o n o f a v a i l a b l e f o o d s u p p l i e s . A l l o c a t i o n s among u s e r s w i t h i n t h e c a t e g o r y o f d o m e s t i c and g o v e r n m e n t a l u s e s o t h e r than m i l i t a r y , o n c e t h e o v e r - a l l d e t e r m i n a t i o n had been made, would be c a r r i e d o u t by t h e a p p r o -

18

WARTIME POOD PROCUREMENT AND PRODUCTION

p r i a t e d i v i s i o n s o f t h e War P r o d u c t i o n B o a r d o r t h e O f f i c e o f P r i c e A d m i n i s t r a t i o n in a c c o r d a n c e with a r r a n g e m e n t s d e t e r mined from time t o time w i t h r e s p e c t t o p a r t i c u l a r foods o r c l a s s e s o f f o o d s by t h e D i r e c t o r o f I n d u s t r y O p e r a t i o n s o f t h e War P r o d u c t i o n B o a r d . I n n o n - f o o d i t e m s , t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d was g i v e n f u l l a u t h o r i t y t o make d e c i s i o n s on b o t h r e q u i r e ments and a l l o c a t i o n s o f s u c h c o m m o d i t i e s . However, where such d e t e r m i n a t i o n a f f e c t e d the q u a n t i t i e s of non-food mater i a l s or equipment needed in the production of food, the p o w e r was q u a l i f i e d by t h e r i g h t o f t h e h e a d o f t h e F o o d s R e q u i r e m e n t s C o m m i t t e e t o a p p e a l t o t h e C h a i r m a n o f t h e War Production Board.25 T h u s , i n t h e o r y , t h e F o o d s R e q u i r e m e n t s C o m m i t t e e was r e g a r d e d a s a s u b - c o m m i t t e e o f t h e War P r o d u c t i o n B o a r d R e q u i r e ments C o m m i t t e e . In p r a c t i c e , h o w e v e r , i t had v i r t u a l l y c o o r d i n a t e s t a t u s s i n c e i t s head could a p p e a l d i r e c t l y to the C h a i r m a n o f t h e War P r o d u c t i o n B o a r d . As i n t h e p r e v i o u s memorandum t h e D e p a r t m e n t o f A g r i c u l t u r e w a s t o b e made r e s p o n s i b l e f o r f o o d p r o g r a m s d e s i g n e d t o o b t a i n i n c r e a s e o r d e c r e a s e s i n d o m e s t i c p r o d u c t i o n " u p t o and i n c l u d i n g the f i r s t s t a g e of p r o c e s s i n g . " But a g a i n c o g n i z a n c e was t a k e n o f t h e f a c t t h a t n o o n e c o u l d a g r e e on w h a t t h e f i r s t s t a g e i n p r o c e s s i n g a c t u a l l y m e a n t . To m e e t t h i s c o n t i n g e n c y , t h e new p r o p o s a l r e s o l v e d t h a t " i n t h e e v e n t o f d i s a g r e e m e n t b e t w e e n t h e D e p a r t m e n t of A g r i c u l t u r e and t h e D i r e c t o r o f M a t e r i a l s o f t h e War P r o d u c t i o n B o a r d a s t o w h a t s h a l l c o n s t i t u t e " f i r s t p r o c e s s i n g ' w i t h r e s p e c t t o any a g r i c u l t u r a l m a t e r i a l , t h e i s s u e s h a l l be d e t e r m i n e d b y t h e C h a i r man o f t h e War P r o d u c t i o n B o a r d . " 2 ® T h u s j u r i s d i c t i o n a l s q u a b b l e s w e r e t o b e a v o i d e d by d e c i s i o n s o f t h e h e a d o f t h e War Production Board. F i n a l l y , t h e power of t h e Board of Economic W a r f a r e o v e r t h e p r o d u c t i o n p r o g r a m s i n f o r e i g n c o u n t r i e s was c o n f i r m e d . R u t w i t h t h i s c o n c e s s i o n came t h e f u r t h e r p r o v i s o t h a t t h a t a g e n c y , i f i t s o d e s i r e d , c o u l d d e l e g a t e i t s power in t h i s c o n n e c t i o n to t h e D e p a r t m e n t of A g r i c u l t u r e . I n i t s m a j o r p o i n t s t h e new p r o p o s a l was a c c e p t a b l e t o a l l t h e a g e n c i e s a f f e c t e d by i t . O n l y a f i n a l d e c i s i o n had t o be made a s t o who w o u l d be t h e h e a d o f t h e new c o m m i t t e e . Pressures

for

Unification

I n A p r i l and May 1 9 4 2 , a s t h e i n t e r - a g e n c y d i s c u s s i o n s w e r e t a k i n g p l a c e , the food s i t u a t i o n began to change p e r c e p t i b l y . I n g e n e r a l o u r f o o d s u p p l i e s w e r e a d e q u a t e b u t some m a l d i s t r i b u t i o n h a d o c c u r r e d a n d i t s e f f e c t w a s h e i g h t e n e d by t h e f a i l u r e of the Government t o a c t p r o m p t l y . A t i g h t s u g a r s u p p l y had r e s u l t e d i n a d e c i s i o n t o r a t i o n . L e n d - L e a s e food n e e d s w e r e on t h e i n c r e a s e a n d a s a r e s u l t we w e r e s h i p p i n g more f o o d o v e r s e a s t h a n w a s p r e v i o u s l y t h o u g h t w o u l d b e n e c e s -

THE WAR FOOD ADMINISTRATION

19

s a r y . ^ Finally, increased consumer purchasing power had made such an impact upon the price structure that it «as thought advisable by the Government to freeze prices of all items, including food, at their highest March levels. Moreover, as the supply of food and other critical items became tighter, restrictive governmental action «as undertaken to obtain their more equitable distribution. As a result the food trades soon found their actions circumscribed by a series of orders of various sorts. Some specified the amounts and kinds of critical materials that could be used for processing machinery and containers. Others directed them to process only certain kinds of commodities. Still others specified restrictions as to kinds of persons to «hom sales could be made. Last but not least, price orders by prohibiting sales above certain price levels affected profit margins and to some extent impaired the abilities of the food industry to deal more effectively with their problems. Of course, all industries faced similar difficulties, but to the food trades these adjustments seemed especially onerous because of the divided jurisdiction of governmental agencies dealing with food problems . In the month following the issuance of the Maximum Price Regulation, the food trades, meeting either singly or i b a group, repeatedly urged the head of the War Production Board to appoint a single administrator with full authority over all food. The latter, as we have seen, was sympathetic to this point of view and by the circulation of a memorandum urging an inter-agency committee was already making slow but steady progress toward that objective. In May two events occurred that gave additional impetus to the drive for unity in all phases of war mobilization. Speaking before the annual meeting of the National Industrial Conference Board, Herbert Hoover, I'ood Administrator during World War I and former President of the United States, urged the establishment of a National W a r Council to be composed of the civilian heads of the great war agencies. Unity in all aspects of the war effort was demanded by him. Hoover admitted that there would be a steady decrease in economic freedom as the war progressed, but this he accepted as inevitable for the war must and could only be won through such integrat i o n . ^ While food organization was not mentioned, his speech was propitious, for it came at a time when there was great pressure for the concentration of food leadership. The appeal of the former Food Administrator was given more specific application at the annual convention of the National Association of Grocery Manufacturers. A resolution was passed demanding a single Food Administrator. It was evident that considerable pressure had been put on the Chairman of the War Production Board because the convention had received a telegram announcing the contemplated establishment of an over-all Foods Requirements Committee with the Secretary of Agriculture

as its probable head.^O

20 Creation

WARTIME FOOD PROCUREMENT AND of

the Foods

Requirements

PRODUCTION

Committee

S h o r t l y a f t e r the N e l s o n telegram, there w a s created w i t h i n the W a r P r o d u c t i o n B o a r d an i n t e r - a g e n c y Foods R e q u i r e m e n t s C o m m i t t e e w i t h full r e s p o n s i b i l i t y for food p r o d u c t i o n and a l l o c a t i o n s p o l i c y . Its head w a s the S e c r e t a r y of A g r i c u l t u r e and s e r v i n g w i t h him as a d d i t i o n a l m e m b e r s were r e p r e s e n t a tives of the S t a t e , W a r and N a v y D e p a r t m e n t s , the Board of E c o n o m i c W a r f a r e , the L e n d - L e a s e A d m i n i s t r a t i o n , and the following d i v i s i o n s of the W a r P r o d u c t i o n B o a r d : Industry O p e r a tions, M a t e r i a l s , and C i v i l i a n S u p p l y . C o m m i t t e e m e m b e r s w e r e to act in a d v i s o r y c a p a c i t y to the C h a i r m a n of the intera g e n c y c o m m i t t e e , and the finality o f the latter'« d e c i s i o n could only be reviewed by the head of the War P r o d u c t i o n Board. 31 C o m m i t t e e o r g a n i z a t i o n w a s c o m p l e t e d by the a d d i t i o n of a vice c h a i r m a n , a h e a d of r e q u i r e m e n t s w o r k and a s t a f f group -the O f f i c e o f A g r i c u l t u r a l W a r R e l a t i o n s . T h e latter acted as a liaison b e t w e e n the c o m m i t t e e and the o t h e r w a r a g e n c i e s . Failure Agency

of

the Foods

Requirements

Committee

as

a

Coordinating

The d i v i s i o n of a u t h o r i t y outlined above did not bode well for the future of the F o o d s R e q u i r e m e n t s C o m m i t t e e . D e s p i t e its rapid and i n t e n s i v e o r g a n i z a t i o n , the c o m m i t t e e was h a r d ly m o r e than a token o f f e r i n g to the d e m a n d for a single Food A d m i n i s t r a t o r . It had n o real a u t h o r i t y of its own and in p r a c t i c e it w a s little m o r e than a forum for the e x c h a n g e of views a m o n g its agency m e m b e r s . Such power as it had w a s bounded by the fact that it was of an a d v i s o r y n a t u r e . It could r e c o m m e n d a c t i o n , but for its i m p l e m e n t a t i o n it was forced to w a i t on the action of e i t h e r the a p p r o p r i a t e industry d i v i s i o n of the W a r P r o d u c t i o n Board or the O f f i c e of Price A d m i n i s t r a t i o n . It could not e x e c u t e any of the programs w h i c h it d e v e l o p e d . T h i s wide gap b e t w e e n policy formulation and e x e c u t i o n came to serve as a c o n s t a n t source of e m b a r r a s s m e n t to the c o m m i t t e e . " In a t t e m p t i n g to secure a greater i n t e g r a t i o n of the food e f f o r t the C h a i r m a n of the W a r P r o d u c t i o n Board had selected a c o m m i t t e e as the a d m i n i s t r a t i v e d e v i c e to perform what was e s s e n t i a l l y an e x e c u t i v e function. A s a c o n s e q u e n c e , the comm i t t e e often found i t s e l f w i t h p o w e r s i n a d e q u a t e to a c c o m plish its a s s i g n e d tasks. For e x a m p l e , the a g e n c i e s represented on the c o m m i t t e e w e r e a u t o n o m o u s , w i t h assigned res p o n s i b i l i t i e s and w i t h only a n o m i n a l a l l e g i a n c e to the W a r P r o d u c t i o n B o a r d in the s e n s e that food w a s c o n s i d e r e d a m a t e r i a l of w a r . In the c a r r y i n g out their assigned tasks, they could g e n e r a t e e n o u g h o r g a n i z a t i o n a l m o m e n t u m , sometimes at the c a b i n e t level, to make it d i f f i c u l t to keep them w i t h i n the o r b i t o f the c o m m i t t e e ' s a u t h o r i t y . In order

THE WAR FOOD ADMINISTRATION

21

t o k e e p t h e a g e n c i e s i n l i n e , i t was n e c e s s a r y t o a p p e a l t o t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d . D i v i d e d a u t h o r i t y a l s o h a m p e r e d t h e c o m m i t t e e ' s w o r k . Comm o d i t y r e s p o n s i b i l i t y f o r s u g a r , f o r e x a m p l e , was s h a r e d by the O f f i c e of P r i c e A d m i n i s t r a t i o n , the Department of A g r i c u l t u r e , t h e F o o d s R e q u i r e m e n t s C o m m i t t e e and t h e I n d u s t r y a n d C i v i l i a n S u p p l y d i v i s i o n s o f t h e War P r o d u c t i o n B o a r d . P r e s u m a b l y p o l i c y m a t t e r s w e r e t h e p r o v i n c e o f t h e Food R e q u i r e m e n t s C o m m i t t e e , b u t t h e s i t u a t i o n in t h i s r e g a r d was c o m p l i c a t e d by t h e e x i s t e n c e o f an I n t e r - D e p a r t m e n t a l S u g a r P o l i c y C o m m i t t e e . U n t i l a d e c i s i o n was r e a c h e d a s t o where f i n a l power o v e r s u g a r was l o d g e d , a c o n s t a n t s o u r c e o f i r r i t a t i o n e x i s t e d n o t o n l y among members o f t h e F o o d s R e q u i r e m e n t s C o m m i t t e e b u t a l s o on t h e p a r t o f t h e p u b l i c . The e f f e c t o f s u c h d i f f u s e d a u t h o r i t y was a l s o a p p a r e n t i n t h e c o m m i t t e e ' s h a n d l i n g o f t h e m e a t s i t u a t i o n . In m i d - J u l y 1942, a c c o r d i n g to the i n f o r m a t i o n r e a c h i n g the Foods R e q u i r e ments C o m m i t t e e , i t seemed p r o b a b l e t h a t meat s u p p l i e s would d w i n d l e b e f o r e t h e end o f t h e y e a r t o t h e p o i n t where r a t i o n i n g would h a v e t o be u n d e r t a k e n . * ' B e c a u s e o f t h e c o m m i t t e e ' s a s s i g n e d j u r i s d i c t i o n o v e r t h e s u p p l y and d i s t r i b u t i o n o f m e a t , i t u n d e r t o o k t o p l a n the a l l o c a t i o n o f meat s u p p l i e s a t the p a c k e r l e v e l in o r d e r to p r e p a r e f o r the e v e n t u a l i t y o f rationing. A l m o s t i m m e d i a t e l y a s q u a b b l e b e g a n which f o u n d t h e D e p a r t ment o f A g r i c u l t u r e and t h e O f f i c e o f P r i c e A d m i n i s t r a t i o n i n o p p o s i t i o n t o one a n o t h e r w i t h t h e War P r o d u c t i o n B o a r d i n t h e m i d d l e a s t h e m e d i a t o r . The c o n t r o v e r s y d r a g g e d on w h i l e t h e m e a t s i t u a t i o n w o r s e n e d . By S e p t e m b e r 1942 an i m p a s s e was c r e a t e d t h a t was d e s c r i b e d i n t h e f o l l o w i n g w o r d s o f t h e A s s i s t a n t G e n e r a l C o u n s e l o f t h e War P r o d u c t i o n B o a r d : " I t a p p e a r s t h a t t h e r e i s s t i l l an i r r e c o n c i l a b l e c o n f l i c t b e t w e e n t h e v i e w o f t h e S e c r e t a r y o f A g r i c u l t u r e and t h e v i e w o f t h e O f f i c e of P r i c e A d m i n i s t r a t i o n r e g a r d i n g the p r e c i s e p o i n t at which t h e l i n e i s t o be drawn t o d i v i d e t h e i r r e s p e c t i v e powers o v e r the a l l o c a t i o n o f meat t o the c i v i l i a n m a r k e t . " ^ The S e c r e t a r y was l a t e r g i v e n t h e a u t h o r i t y " t o e s t a b l i s h s u c h c o n t r o l s r e s p e c t i n g t h e s a l e s , movement and d i s p o s i t i o n o f l i v e s t o c k , i n c l u d i n g any c l a s s or g r a d e t h e r e o f , a s he may deem t o be in t h e b e s t i n t e r e s t o f t h e war e f f o r t . " 3 f l B u t t h e i s s u e b e t w e e n t h e two a g e n c i e s was n e v e r f i n a l l y s e t t l e d u n t i l t h e f o l l o w i n g March when r a t i o n i n g was i n s t i t u t e d . By t h a t t i m e t h e h e a d o f t h e D e p a r t m e n t o f A g r i c u l t u r e had o b t a i n e d u n q u e s t i o n e d c o n t r o l over the e n t i r e food piogram. The F o o d s R e q u i r e m e n t s C o m m i t t e e a l s o f o u n d i t s e l f p o w e r l e s s t o deal with i n t e r - a g e n c y c o n f l i c t s over a g r i c u l t u r a l and f o o d p r i c e s . H e r e , t o o , t h e i n t e r e s t o f t h e O f f i c e o f P r i c e A d m i n i s t r a t i o n and t h e D e p a r t m e n t o f A g r i c u l t u r e c l a s h e d . Food p r i c e c e i l i n g s i m p o s e d by t h e f o r m e r t o c o m b a t i n f l a t i o n had an i m p o r t a n t e f f e c t upon a g r i c u l t u r a l p r o d u c t i o n p r o g r a m s . P r i c e i n c e n t i v e s were e m p l o y e d by t h e D e p a r t m e n t o f A g r i c u l -

22

WARTIME FOOD PROCUREMENT AND PRODUCTION

t u r e a s a d e v i c e t o o b t a i n t h e maximum o u t p u t o f a g r i c u l t u r a l c o m m o d i t i e s . By law n o p r i c e c e i l i n g c o u l d b e i m p o s e d on s u c h i t e m s w i t h o u t t h e c o n s e n t of t h e S e c r e t a r y o f A g r i c u l t u r e . 3 9 Q u e s t i o n s o f c o m m o d i t i e s t o be c o v e r e d by p r i c e r e g u l a t i o n s and t h e l e v e l s o f maximum p r i c e s a r o s e c o n s t a n t l y . When t h e O f f i c e o f P r i c e A d m i n i s t r a t i o n and t h e D e p a r t m e n t o f A g r i c u l t u r e f o u n d t h e m s e l v e s on d i f f e r e n t s i d e s of t h e f e n c e , t h e F o o d s R e q u i r e m e n t s C o m m i t t e e had n o power t o r e c o n c i l e t h e i r di f ferences. I t was t h i s l a c k o f a c e n t r a l a u t h o r i t y o v e r p r i c e m a t t e r s w h i c h was r e m e d i e d i n t h e f a l l o f 1942 by t h e c r e a t i o n o f t h e O f f i c e of Economic S t a b i l i z a t i o n a s a r e f e r e e in a l l p r i c e d i s p u t e s . T h e r e a f t e r , t h e D e p a r t m e n t o f A g r i c u l t u r e and t h e O f f i c e of P r i c e A d m i n i s t r a t i o n w e r e r e q u i r e d t o s u b m i t t h e i r d i f f e r e n c e s t o t h i s c e n t r a l p o i n t . * ' A l t h o u g h u n i t y on p r i c e p o l i c y was a c h i e v e d , f o o d r e s p o n s i b i l i t y c o n t i n u e d d i v i d e d . Food s u p p l y and d i s t r i b u t i o n w e r e s u b j e c t t o t h e c o n t r o l of t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d , w h i l e f o o d p r i c e m a t t e r s w e r e r e f e r r e d t o t h e D i r e c t o r of E c o n o m i c S t a b i l i z a tion. Even i f t h e s e p r o b l e m s d i d n o t e x i s t , t h e work o f t h e comm i t t e e was b o u n d t o be a f f e c t e d by t h e f a c t t h a t t h e c h a i r m a n s h i p was a f u l l - t i m e j o b and i t s h e a d a l r e a d y had s u c h a p o s i t i o n , being c o n s t a n t l y preoccupied with the f u n c t i o n i n g of a l a r g e e x e c u t i v e d e p a r t m e n t . Moreover, t h e S e c r e t a r y of A g r i c u l t u r e had a d u a l r e s p o n s i b i l i t y . On one h a n d , h e was a c c o u n t a b l e t o t h e C h a i r m a n of t h e War P r o d u c t i o n B o a r d f o r h i s a c t i o n s , and on t h e o t h e r h a n d , h i s c o n d u c t was c a r e f u l l y w a t c h e d by a f a r m c l i e n t e l e whose i n t e r e s t s h i s D e p a r t m e n t s e r v e d . W h i l e t h e C h a i r m a n of t h e F o o d s R e q u i r e m e n t s C o m m i t t e e had d e c i s i o n - m a k i n g p o w e r , i n p r a c t i c e h i s a c t i o n s w e r e t e m p e r e d by t h e a n o m a l o u s p o s i t i o n w h i c h he o c c u p i e d . Further

Criticism

of

the

Foods

Requirements

Committee

The f a c t t h a t t h e S e c r e t a r y of A g r i c u l t u r e was t h e h e a d of t h e F o o d s R e q u i r e m e n t s C o m m i t t e e was i m p o r t a n t i n a n o t h e r r e s p e c t . I t b r o u g h t i n t o f o c u s an u n d e r l y i n g s t r u g g l e t h a t had b e e n b r e w i n g f o r some t i m e b e t w e e n t h e f a r m i n t e r e s t s and t h e p r o c e s s o r and f o o d t r a d e i n t e r e s t s . T h e r e i s some e v i d e n c e t h a t t h e f o o d t r a d e s had n e v e r t a k e n t o o k i n d l y t o t h e a p p o i n t m e n t of W i c k a r d . * * I n t h e summer and f a l l o f 1942 a b a r r a g e o f c r i t i c i s m was l e v e l l e d by t h e s e i n t e r e s t s a g a i n s t t h e Food R e q u i r e m e n t s C o m m i t t e e . I t s e f f e c t i v e n e s s was o p e n l y q u e s t i o n e d by some s e c t i o n s of t h e p r e s s and by t h e f o o d t r a d e l e t t e r s . The Dep a r t m e n t of A g r i c u l t u r e , i t was c h a r g e d , was p r i m a r i l y c o n c e r n e d w i t h t h e p r o b l e m s o f t h e f a r m e r and t h e g r o w e r , and t h e d o m i n a n t p o s i t i o n of t h e S e c r e t a r y of A g r i c u l t u r e on t h e F o o d s R e q u i r e m e n t s C o m m i t t e e was p o i n t e d o u t . The i n a b i l i t y of t h e c o m m i t t e e t o r e c o n c i l e d i f f e r e n c e s between t h e O f f i c e

T H E WAR FOOD ADMINISTRATION

23

of Price Administration and the Department of A g r i c u l t u r e was duly noted, and the demand for a single Food Administrator »as once more stressed. Within the War Production Board this viewpoint was reflected in a demand for more unified control under Board auspices and an attack upon both the Department of Agriculture and the Office of Price Administration. A memorandum addressed to the Chairman of the W a r Production Board urged a centralized food administration pointing out that the food situation was " b e coming critically s e r i o u s . " It stated quite bluntly that the Foods Requirements Committee functioned as if it were the Department of Agriculture. " P r o b l e m s now are approached largely from the farm angle," it stated. " T h e essential function of processing, packaging, transporting and distributing food for the civilian population are not receiving necessary attent i o n . " The Secretary of Agriculture, it complained, w a s committed to a program of higher prices whereas the Chairman of the Foods Requirements Committee "should be committed to see that there is an adequate supply of foods properly allocated at reasonable p r i c e s . " It argued further that the Chairman of the Foods Requirements Committee should not be identified with any of the agencies on the committee.*^ The Office of Price Administration also came in for its share of criticism. It was admitted the agency tried to keep prices down but " i n doing so, the orderly processing of crops is seriously hampered with threatened curtailment of food supplies.... Distributors [are] seriously hampered because of inequitable price ceilings and unreasonable delays in obtaining adjustments. The whole distribution system is threatened with adverse effect upon the public."*' Discussion within the War Production Board in late September, while in a less partisan vein, also revealed an awareness of the need for a thorough overhauling of the administrative structure dealing with food problems. The Food C o n s u l t a n t to the Chairman of the W a r Production Board reported that the Foods Requirements Committee was generally identified as a unit of the Department of Agriculture and was not functioning as a part of the War Production Board. According to this same official coordination between the Department of Agriculture and the War Production Board was weak. Instances were cited by him where the clearance of limitation orders, the development of rationing programs and the procurement of needed food supplies had been carried on cumbersomely because of the lack of effective liaison. But despite these weaknesses, the Food Consultant did not believe there was need for a Food Administrator since the Office of Price Administration was in control of both prices and rationing. He did, however, emphasize the need " f o r coordination and control by an administration within the W a r Production Board to promote planning, expediting, development of accurate information and other features."** Other members of the War Production Board Council also

24

WARTIME POOD PROCUREMENT AND PRODUCTION

chimed in w i t h s i m i l a r s t a t e m e n t s which were in g e n e r a l a c c o r d w i t h t h e v i e w p o i n t o f t h e Food C o n s u l t a n t . I t was c o n c e d e d by t h e S e c r e t a r y o f War t h a t t h e D e p a r t m e n t o f A g r i c u l t u r e was a d m i r a b l y e q u i p p e d t o a d m i n i s t e r a g o o d p r o d u c t i o n p r o g r a m , b u t h i s a d m i s s i o n was t e m p e r e d by t h e a s s e r t i o n t h a t t h i s very p r e o c c u p a t i o n w i t h f a r m e r i n t e r e s t s and p r i c e s u p p o r t s d i s q u a l i f i e d t h e D e p a r t m e n t of A g r i c u l t u r e from h a n d l i n g t h e p r o c e s s i n g d i s t r i b u t i o n and o t h e r a s p e c t s o f t h e g o v e r n m e n t a l f o o d p r o g r a m . I t was h i s o p i n i o n t h a t , i f a w e l l - r o u n d e d f o o d p r o g r a m were t o be u n d e r t a k e n , i t c o u l d o n l y be c a r r i e d o u t u n d e r t h e a e g i s of t h e War P r o d u c t i o n Board. 45 Some o f t h e s t i n g w a s t a k e n o u t o f t h i s c r i t i c i s m by t h e r e m a r k s o f t h e C h a i r m a n o f t h e War P r o d u c t i o n R o a r d who o b s e r v e d t h a t t h e r e w e r e e x t e n u a t i n g c i r c u m s t a n c e s t h a t had t o be t a k e n i n t o a c c o u n t . He e m p h a s i z e d t h a t t h e p r i m a r y f u n c t i o n o f t h e F o o d s R e q u i r e m e n t s C o m m i t t e e was o n e o f a s s u r i n g t h e d i s t r i b u t i o n o f e x i s t i n g f o o d s u p p l i e s among t h e s e v e r a l a g e n c i e s of t h e Government. I t did not have c o n t r o l o v e r t h e s i z e of t h e Army, l a b o r s u p p l y , p r i c e s o r o t h e r a s p e c t s o f t h e f o o d p i c t u r e , a n d , t h e r e f o r e , c o u l d n o t be h e l d r e s p o n s i b l e f o r a l l t h e d i f f i c u l t i e s w h i c h had a r i s e n . The C h a i r m a n r e c o g n i z e d t h e i n a d e q u a c y of t h e powers of t h e Foods R e q u i r e m e n t s C o m m i t t e e a n d t h e n e e d f o r g r e a t e r c o o r d i n a t i o n . Lack of e f f e c t i v e l i a i s o n w i t h t h e D e p a r t m e n t of A g r i c u l t u r e and h i s a g e n c y was a l s o a c k n o w l e d g e d by t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d . To r e m e d y t h i s s i t u a t i o n , h e p r o p o s e d t h e c o n s o l i d a t i o n of t h e v a r i o u s b r a n c h e s of h i s a g e n c y r e l a t i n g to f o o d . " 4 6 At t h e c o n c l u s i o n o f t h e i r m e e t i n g t h e C o u n c i l a d o p t e d a r e s o l u t i o n recommending t h a t the "Chairman t a k e a l l s t e p s n e c e s s a r y t o a c h i e v e an h a r m o n i o u s and c o o r d i n a t e p r o g r a m f o r t h e p r o d u c t i o n and d i s t r i b u t i o n of f o o d . 4 ^ Har Production

Board

E f f o r t to

Overhaul

the

Food

Machinery

Lack o f u n i f i e d e f f o r t and t h e t u g and h a u l o f a g e n c i e s c a l l e d f o r a d d i t i o n a l a c t i o n . In the weeks t h a t f o l l o w e d , d i s c u s s i o n s w e r e h e l d by t h e C h a i r m a n o f t h e War P r o d u c t i o n Board w i t h a l m o s t e v e r y t o p - l e v e l o f f i c i a l of t h e a g e n c y in t h e e n d e a v o r t o p r e p a r e an a d m i n i s t r a t i v e p l a n t o r e m e d y t h e e v i l s of d i v i d e d f o o d a u t h o r i t y . On O c t o b e r 5, 1 9 4 2 , t h e Food Consultant prepared a d i r e c t i v e c a l l i n g for the appointment o f a Food D i r e c t o r by e x e c u t i v e o r d e r . T h i s , i n t u r n , b e c a m e t h e s u b j e c t o f f u r t h e r c o n s i d e r a t i o n . W i t h i n t h r e e w e e k s an e x e c u t i v e o r d e r was r e a d y f o r p r e s e n t a t i o n t o t h e P r e s i d e n t . T h i s d o c u m e n t p r o p o s e d a " c z a r " a p p r o a c h t o t h e p r o b l e m of f o o d o r g a n i z a t i o n w i t h a Food D i r e c t o r a r m e d w i t h p o w e r s which p a r a l l e l e d t h o s e g i v e n t o t h e Rubber D i r e c t o r . T h i s o f f i c i a l was t o be a s s i s t e d by an i n t e r - a g e n c y Food C o o r d i n a t i n g C o m m i t t e e . The a u t h o r i t y o f t h e Food D i r e c t o r , h o w e v e r , was

THE WAR POOD ADMINISTRATION

25

t o be l i m i t e d by the s t a t u t o r y powers h e l d by the S e c r e t a r y o f A g r i c u l t u r e and the P r i c e A d m i n i s t r a t o r . * ® I n r e a l i t y the p r o p o s a l f o r g r e a t e r a d m i n i s t r a t i v e u n i t y d i d n o t meet the need f o r a d r a s t i c c h a n g e . I t m e r e l y s t r e n g t h e n e d the powers a l r e a d y l o d g e d in the Foods R e q u i r e ments Committee. L a r g e segments o f power were by s t a t u t e r e t a i n e d by b o t h the O f f i c e of P r i c e A d m i n i s t r a t i o n and the Department of A g r i c u l t u r e . As l o n g as t h e s e a g e n c i e s r e t a i n e d t h e i r autonomy, i t would be i m p o s s i b l e f o r the War P r o d u c t i o n B o a r d to c a r r y out i t s announced r o l e a s a m o b i l i z e r o f the f o o d r e s o u r c e s o f the n a t i o n . The P r e s i d e n t w i t h h e l d a c t i o n on t h e p r o p o s a l o f t h e C h a i r man o f t h e War P r o d u c t i o n B o a r d . The f o o d t r a d e s , h o w e v e r , c o n t i n u e d t o p r e s s f o r u n i f i c a t i o n . Food t r a d e m e e t i n g s i n t h e month o f S e p t e m b e r w e r e c o n c e r n e d m a i n l y w i t h t h e i m p a c t o f t h e war on t h e i r i n d u s t r y and t h e n e e d f o r more c o o r d i n a t i o n . One g r o u p r e q u e s t e d t h e P r e s i d e n t t o a p p o i n t P e r n a r d B a r u c h , Chairman o f t h e War I n d u s t r i e s B o a r d i n W o r l d War I , t o make a t h o r o u g h s t u d y o f f o o d o r g a n i z a t i o n and t o r e p o r t on t h e d e s i r a b i l i t y o f a u n i f i e d f o o d a d m i n i s t r a t i o n . * ' Counterpressures

from

the

Farm

Interests

The c a m p a i g n o f the f o o d i n t e r e s t s f o r more e f f e c t i v e f o o d c o n t r o l , was a c c o m p a n i e d by a s i m i l a r i n s i s t e n c e upon t h e p a r t o f t h e f a r m i n t e r e s t s . The l a t t e r , h o w e v e r , w a n t e d t h e power l o d g e d in the Department o f A g r i c u l t u r e . To t h e A m e r i c a n f a r m e r t h e e f f e c t o f d i f f u s e d a u t h o r i t y was amply d e m o n s t r a t e d by h i s e x p e r i e n c e w i t h the g o v e r n m e n t a l f a r m m a c h i n e r y p r o g r a m . I t was g e n e r a l l y a g r e e d by most g o v e r n m e n t a l o f f i c i a l s t h a t the b e l a t e d i s s u a n c e in December 1941 o f t h e 1942 l i m i t a t i o n o r d e r had s e r i o u s l y h a n d i c a p p e d t h a t y e a r ' s p r o g r a m f o r the more a d e q u a t e p r o d u c t i o n o f f a r m m a c h i n e r y . When t h e t i m e came f o r the f o r m u l a t i o n o f t h e 1943 p r o g r a m i t was m u t u a l l y r e s o l v e d by t h e i n t e r e s t e d a g e n c i e s t h a t t h i s t i m e a l i m i t a t i o n o r d e r w o u l d be i s s u e d i n s u f f i c i e n t t i m e t o e n a b l e the m a n u f a c t u r e r s o f f a r m m a c h i n e r y p r o p e r l y and e f f i c i e n t l y t o s c h e d u l e t h e i r p r o d u c t i o n . Work was begun on t h e new p r o g r a m in J a n u a r y 1^42, and i t was n o t u n t i l n i n e months l a t e r t h a t a new l i m i t a t i o n o r d e r was i s s u e d . I n t h e i n t e r i m s e v e r a l c o n t r o v e r s i e s o c c u r r e d w h i c h f u r n i s h e d t h e f a r m e r w i t h an o b j e c t l e s s o n o f t h e n e e d f o r more u n i t y among t h e war a g e n c i e s . In t h e f i r s t p l a c e d e l a y o c c u r r e d as a r e s u l t o f a g o v e r n m e n t a l a t t e m p t t o i n s t i t u t e a c o n c e n t r a t i o n program. This sought t o compel the l a r g e m a n u f a c t u r e r s o f farm m a c h i n e r y t o c o n v e r t t o t h e p r o d u c t i o n o f war m a t e r i a l s and thus p e r m i t t h e s m a l l m a n u f a c t u r e r s t o p r o d u c e the bulk o f the m a c h i n e r y t o be a l l o w e d by t h e p r o p o s e d l i m i t a t i o n o r d e r . I t s i m m e d i a t e r e s u l t was t o p r e c i p i t a t e a j u r i s d i c t i o n a l wrangle i n v o l v i n g the Department o f A g r i c u l t u r e , the D i v i s i o n o f C i v i l i a n S u p p l y , and t h e Farm

26

WARTIME FOOD PROCUREMENT AND PRODUCTION

M a c h i n e r y and E q u i p m e n t R r a n c h o f t h e War P r o d u c t i o n B o a r d . A f t e r s e v e r a l m o n t h s o f b i t t e r q u a r r e l s , t h e p r o p o s a l was s h e l v e d . The d i s p u t e , h o w e v e r , s e r i o u s l y p o s p o n e d t h e i s s u ance of the l i m i t a t i o n o r d e r . ' ® S e c o n d l y , s h a r p d i f f e r e n c e s e x i s t e d among g o v e r n m e n t a l a g e n c i e s o v e r the amounts o f c r i t i c a l m a t e r i a l s t o be a l l o t t e d f o r t h e m a n u f a c t u r e o f farm e q u i p m e n t . The f a r m e r s ' n e e d f o r i n c r e a s e d q u a n t i t i e s o f f a r m m a c h i n e r y was s u p p o r t e d by t h e D e p a r t m e n t o f A g r i c u l t u r e . In t h e s p r i n g o f 1 9 4 2 i t had made a c o m p r e h e n s i v e s u r v e y o f t h e i r e q u i p m e n t n e e d s , s t a t e by s t a t e , and community by c o m m u n i t y . B u t t h e s e s t a t i s t i c s were c h a l l e n g e d by t h e D i v i s i o n o f C i v i l i a n S u p p l y . F i n a l l y , in J u n e 1 9 4 2 , a f t e r d i s c u s s i o n s which l a s t e d w e l l o v e r two m o n t h s , t h e D e p a r t m e n t o f A g r i c u l t u r e and t h e Farm M a c h i n e r y and E q u i p m e n t B r a n c h o f t h e War P r o d u c t i o n P o a r d a g r e e d upon a 1943 l i m i t a t i o n o r d e r l i m i t i n g t h e p r o d u c t i o n o f new m a c h i n e r y f o r d o m e s t i c u s e t o SO p e r c e n t o f i t s 1 9 4 0 d o l l a r v a l u e . Rut t o t h i s t h e D i v i s i o n o f C i v i l i a n S u p p l y e n t e r e d a v i g o r o u s d i s s e n t , i n s i s t i n g upon a p r o d u c t i o n c u t b a c k t o 2 7 . 6 p e r c e n t o f t h e same b a s e p e r i o d . " L a t e r t h e d i v e r g e n t p r o g r a m s were s u b m i t t e d t o t h e F o o d s Requirements Committee f o r i t s c o n s i d e r a t i o n . A sub-committee, a p p o i n t e d t o r e c o n c i l e t h e s e d i f f e r e n c e s , p r o p o s e d a comprom i s e p l a n r e s t r i c t i n g farm m a c h i n e r y p r o d u c t i o n t o 38 p e r c e n t o f t h e 1940 b a s e y e a r . A l t h o u g h the p l a n was a p p r o v e d by t h e C h a i r m a n o f t h e F o o d s R e q u i r e m e n t s C o m m i t t e e and s u b m i t t e d by him t o t h e h e a d o f t h e R e q u i r e m e n t s C o m m i t t e e , t h e D i v i s i o n of C i v i l i a n Supply o b j e c t e d . U l t i m a t e l y , the l a t t e r ' s p l a n f o r a r e d u c t i o n t o 23 p e r c e n t o f t h e b a s e y e a r was a d o p t e d . I t i s i m p o r t a n t to n o t e t h a t the c l i m a x of the farm machine r y and e q u i p m e n t c o n t r o v e r s y came in t h e autumn o f 1 9 4 2 , a t a t i m e when a r e c o r d - b r e a k i n g p r o d u c t i o n y e a r was i n p r o s p e c t . L a r g e n u m b e r s o f f a r m w o r k e r s had b e e n drawn o f f t h e f a r m s i n t o i n d u s t r y and t h e armed f o r c e s . ' ^ The p o s s i b i l i t y o f an i n s u f f i c i e n t s u p p l y o f l a b o r was o f c o n s i d e r a b l e c o n c e r n t o t h e f a r m e r who f e l t t h a t t h e l e a s t t h e g o v e r n m e n t c o u l d do was t o f u r n i s h him w i t h s u f f i c i e n t m a c h i n e r y t o c o m p e n s a t e f o r h i s d i m i n i s h i n g s u p p l y o f l a b o r . He was r a t h e r p a i n f u l l y aware of the d i s p u t e between the D i v i s i o n of C i v i l i a n Supply and t h e D e p a r t m e n t o f A g r i c u l t u r e . The f a r m e r knew, t o o , t h a t t h e f o r m e r a g e n c y had b e e n l a r g e l y r e s p o n s i b l e f o r t h e d e c i s i o n t o c u r t a i l t h e q u a n t i t i e s o f c r i t i c a l m a t e r i a l s . The D i v i s i o n o f C i v i l i a n S u p p l y was r e g a r d e d a s an a g e n c y t h a t d i d not u n d e r s t a n d the f a r m e r and, c o r r e s p o n d i n g l y , s i n c e the D e p a r t m e n t o f A g r i c u l t u r e had c h a m p i o n e d t h e f a r m e r ' s c a u s e , i t was l o o k e d on w i t h g r e a t f a v o r by t h e farm i n t e r e s t s . Farm d i s p l e a s u r e w i t h t h e g o v e r n m e n t a l c o n d u c t o f t h e f o o d p r o g r a m m a n i f e s t e d i t s e l f in s e v e r a l w a y s . L a t e in S e p t e m b e r an i n q u i r y i n t o t h e s u p p l y o f f a r m l a b o r was l a u n c h e d by t h e H o u s e C o m m i t t e e on A g r i c u l t u r e . The C h a i r m a n o f t h e War

T H E WAR FOOD ADMINISTRATION

27

Production Board was summoned before the committee and queried about the effect that a decreased labor supply would have upon farm production. Nelson was forced to admit that gaps in governmental food authority existed, but he expressed the belief that there would be ample supplies of foodstuffs for the duration. Further testimony before the committee indicated that no real action was being undertaken in the direction of a central administration over food. It ended its deliberations by proposing a more liberal policy on farm def e r m e n t s . ^ Of course, this recommendation was a small consolation to the farmers who felt that there was an immediate need for more labor, as well as for the conservation of the existing supply. Here again the farmer felt that his share in the apportionment of critical materials would have been fairer had he had more representation on the policy-making agencies. Within the national legislature congressional complaint echoed the farm desire for increased representation and more unified authority. Representative Fulmer, the man who had conducted the abortive congressional investigation into farm labor shortages, asserted that every group in the country except the farmers were represented on the War Production Board or other governmental agencies connected with it. He proposed the appointment by the President of either a director or a board composed of men from agricultural areas " t o definitely represent farmers, their problems, proper distribution, shortage of labor and proper adjustment of wages. Other Congressmen spoke in a similar vein. Representative Rees remarked that " w e must have better understanding and coordination on the food question ... we have too much crisscrossing of policies. Representative Hope said that at least a dozen agencies were dealing with the problem of food production and distribution. " T h e r e is no coordination and no p l a n , " he complained. Unless something were done, he warned, "we are going to have a scandal in this country which will become worse and more disastrous than the rubber scandal. Senator Wiley charged that the food business was so much everybody's business that it was apparently nobody's business. The muddled farm machinery picture was one example of this. No one within the War Production Board could tell either how much farm machinery was in the country or how much was needed to meet anticipated labor shortages. The Division of Civilian Supply, he asserted, was the " d i c t a t o r " of the quantities of materials allotted for the manufacture and distribution of farm machinery. The issuance of Limitation Order L - 1 7 0 in October 1942 had made it "impossible for the farmer to obtain what he needs in the way of machine ry . A later congressional committee summarized the legislative viewpoint in the following words: " T h e whole history of the difficulties between the various governmental agencies concerned in the farm machinery program establishes the need for

28

WARTIME

a single

control

FOOD PROCUREMENT A N D

o v e r the

food g o a l s

PRODUCTION

to be set and

the

methods

of a c h i e v i n g them. The record of the farm m a c h i n e r y c o n t r o v e r s y and c o n g r e s sional c r i t i c i s m have been d e t a i l e d b e c a u s e they w e r e p e r h a p s the m o s t i m p o r t a n t influence b e h i n d the lodging of the food m a n a g e m e n t r e s p o n s i b i l i t y within the D e p a r t m e n t of A g r i c u l t u r e . Ass ignment of the Central ment of Agriculture

Food

Responsibility

to

the

Depart-

In N o v e m b e r , i n f l u e n t i a l o r g a n i z a t i o n s and i n d i v i d u a l s urged that the D e p a r t m e n t of A g r i c u l t u r e should be given c e n t r a l res p o n s i b i l i t y for food m a n a g e m e n t . H e r b e r t H o o v e r , former President and Food A d m i n i s t r a t o r , d e n o u n c e d the d i s p e r s i o n of food f u n c t i o n s a m o n g the D e p a r t m e n t of A g r i c u l t u r e , the O f f i c e of P r i c e A d m i n i s t r a t i o n , the War P r o d u c t i o n Hoard, the Foods R e q u i r e m e n t s C o m m i t t e e , the Army and N a v y , and the Roard of E c o n o m i c W a r f a r e . ® 0 H o o v e r favored g i v i n g central d i r e c t i o n of food p r o g r a m s to the D e p a r t m e n t of A g r i c u l t u r e . R e m e m b e r i n g that such w a s n o t the case d u r i n g the first World W a r when he w a s selected to head an i n d e p e n d e n t a g e n c y , he stressed the fact that s i n c e that time the D e p a r t m e n t had m a t u r e d as a regulatory agency and that it had acquired the n e c e s s a r y o r g a n i z a tional r e s o u r c e s to a c c o m p l i s h the task of c o o r d i n a t i o n . Farm o r g a n i z a t i o n s , even those as d i f f e r e n t as the N a t i o n a l Farmers' U n i o n and the A m e r i c a n Farm B u r e a u F e d e r a t i o n , also d e m a n d e d that the D e p a r t m e n t of A g r i c u l t u r e be g i v e n the principal r e s p o n s i b i l i t y for food m a n a g e m e n t . The head of the N a tional F a r m e r s ' U n i o n j u s t i f i e d h i s p o s i t i o n by s a y i n g that the D e p a r t m e n t of A g r i c u l t u r e had more of the " k n o w h o w " of farming, " t h a n the O f f i c e of Price A d m i n i s t r a t i o n , the W a r P r o d u c tion B o a r d , and all of the other d e p a r t m e n t s and a g e n c i e s in W a s h i n g t o n c o m b i n e d . . . . S e c r e t a r y W i c k a r d is the man the U n i t e d N a t i o n s look to for food and c l o t h i n g . . . [he] m u s t be given the p o w e r to m e e t his r e s p o n s i b i l i t y . " ® ^ In a s i m i l a r vein the A m e r i c a n Farm B u r e a u F e d e r a t i o n urged that the same agency be g i v e n command of the food s i t u a t i o n . ® ^ A l t h o u g h the m a j o r portion of c r i t i c i s m of the food effort came from the R e p u b l i c a n side, there w a s s u f f i c i e n t validity in the p o i n t s made to induce the D e m o c r a t s as the party in power to take a c t i o n . In N o v e m b e r , the P r e s i d e n t p r o m i s e d dec i s i v e steps in regard to a food a d m i n i s t r a t i o n , ® ' and a few w e e k s later he issued an e x e c u t i v e order which t r a n s f e r r e d all food r e s p o n s i b i l i t y to the D e p a r t m e n t of A g r i c u l t u r e . The

Food

Order

of

December

5,

Í94?

As a result of the p r e s i d e n t i a l o r d e r , c u l t u r e was given the authority to:

the S e c r e t a r y

a. " A s c e r t a i n and other governmental,

and i n d i r e c t requirements

d e t e r m i n e the d i r e c t civilian and foreign

of Agrimilitary, for food,

THE WAR FOOD ADMINISTRATION

29

b o t h f o r human a n d a n i m a l c o n s u m p t i o n a n d f o r i n d u s t r i a l uses. " 6. " F o r m u l a t e a n d c a r r y o u t a p r o g r a m d e s i g n e d t o f u r n i s h a s u p p l y o f food a d e q u a t e t o meet such r e q u i r e m e n t s , including the a l l o c a t i o n of the a g r i c u l t u r a l p r o d u c t i v e r e s o u r c e s of the Nation for t h i s purpose." c . " A s s i g n f o o d p r i o r i t i e s a n d make a l l o c a t i o n s o f f o o d f o r human a n d a n i m a l c o n s u m p t i o n t o g o v e r n m e n t a l a g e n c i e s a n d f o r p r i v a t e a c c o u n t , f o r d i r e c t and i n d i r e c t , o t h e r g o v e r n m e n t a l , c i v i l i a n and f o r e i g n n e e d s . " d . " T a k e a l l a p p r o p r i a t e s t e p s t o i n s u r e t h e e f f i c i e n t and proper d i s t r i b u t i o n of the a v a i l a b l e food supply."®* In a d d i t i o n , t h e f o o d p r o c u r e m e n t p o w e r s o f t h e D e p a r t m e n t were c o n t i n u e d . These broad powers i n c r e a s e d the c o n t r o l of the Department of A g r i c u l t u r e o v e r a l l phases o f the food program. C o n t r o v e r s i e s o v e r t h e u s e o f c r i t i c a l m a t e r i a l s as in the farm m a c h i n e r y p r o g r a m w o u l d no d o u b t c o n t i n u e , b u t t h e p o s i t i o n of the Department of A g r i c u l t u r e in d e t e r m i n i n g the f i n a l app o r t i o n m e n t w a s s t r e n g t h e n e d . By t h e t e r m s o f t h e e x e c u t i v e o r d e r t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d w a s d i r e c t e d to accept as a u t h o r i t a t i v e the d e t e r m i n a t i o n s of the S e c r e t a r y of A g r i c u l t u r e r e g a r d i n g the amounts o f n o n - f o o d m a t e r i a l s and f a c i l i t i e s t o b e made a v a i l a b l e f o r f o o d p r o g r a m s . In r a t i o n i n g m a t t e r s , A g r i c u l t u r e was g i v e n an e q u a l l y comm a n d i n g p o s i t i o n . I t d e t e r m i n e d t h e t i m e , e x t e n t and o t h e r c o n d i t i o n s of food r a t i o n i n g . P o l i c y d e c i s i o n s , in o t h e r w o r d s , w e r e made b y t h e S e c r e t a r y o f A g r i c u l t u r e . T h e p o w e r s of the O f f i c e of P r i c e A d m i n i s t r a t i o n were l i m i t e d to the a c t u a l a d m i n i s t r a t i o n o f t h e r a t i o n i n g p r o g r a m s . But in no i n s t a n c e was a f o o d r a t i o n i n g p r o g r a m t o be u n d e r t a k e n w i t h o u t the consent of the Department of A g r i c u l t u r e . ® ^ A d m i n i s t r a t i v e u n i t y in i m p o r t i n g f o o d w a s a l s o o b t a i n e d by t h e new o r d e r . T h e r e a f t e r , a l l d i r e c t i v e s f o r t h e i m p o r t a t i o n o f f o o d f o r human a n d a n i m a l c o n s u m p t i o n w e r e t o b e i s s u e d b y t h e S e c r e t a r y o f A g r i c u l t u r e . In t h o s e i n s t a n c e s w h e r e i m p o r t e d f o o d s had b o t h i n d u s t r i a l and f o o d u s e s , i m p o r t d i r e c t i v e s w e r e t o b e i s s u e d j o i n t l y by t h e S e c r e t a r y o f A g r i c u l t u r e and t h e C h a i r m a n o f t h e War P r o d u c t i o n Board.®® Rea lignnent

of

Departmental

Functions

Almost immediately a f t e r the i s s u a n c e of the presidential order the S e c r e t a r y of A g r i c u l t u r e took s t e p s to r e a l i g n the a c t i v i t i e s o f h i s d e p a r t m e n t t o meet the newer responsibilit i e s . O p e r a t i n g a g e n c i e s such as the A g r i c u l t u r a l Conservat i o n and A d j u s t m e n t A d m i n i s t r a t i o n ( e x c e p t t h e S u g a r A g e n c y ) , t h e Farm C r e d i t A d m i n i s t r a t i o n , t h e Farm S e c u r i t y A d m i n i s t r a t i o n , t h e D i v i s i o n o f Farm M a n a g e m e n t and C o s t s o f t h e B u r e a u o f A g r i c u l t u r a l E c o n o m i c s , and p o r t i o n s o f t h e O f f i c e o f A g r i c u l t u r a l War R e l a t i o n s w e r e g r o u p e d t o g e t h e r i n t o a F o o d

30

WARTIME FOOD PROCUREMENT AND PRODUCTION

P r o d u c t i o n A d m i n i s t r a t i o n . The A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n , t h e S u g a r A g e n c y , t h e r e g u l a t o r y f u n c t i o n s of t h e B u r e a u o f A n i m a l I n d u s t r y and s u c h o t h e r a g e n c i e s c o n c e r n e d w i t h f o o d d i s t r i b u t i o n a c t i v i t i e s w e r e p l a c e d w i t h i n a Food D i s t r i b u t i o n A d m i n i s t r a t i o n . 6 ^ I n a d d i t i o n , t h o s e War P r o d u c t i o n Board u n i t s c o n c e r n e d w i t h food were i n c o r p o r a t e d w i t h i n the Department organization.®® I n t e r - a g e n c y c o o r d i n a t i o n t h r o u g h t h e u s e o f an i n t e r d e p a r t m e n t a l c o m m i t t e e was c o n t i n u e d . The F o o d s R e q u i r e m e n t s C o m m i t t e e w a s r e p l a c e d by a Food A d v i s o r y C o m m i t t e e w h o s e m e m b e r s h i p was d r a w n f r o m t h e p r i n c i p a l a g e n c i e s w i t h f o o d r e s p o n s i b i l i t i e s . The new c o m m i t t e e was t o f u n c t i o n i n an a d v i s o r y c a p a c i t y t o t h e h e a d o f t h e new f o o d a g e n c y . In c o n t r a s t t o h i s p r e v i o u s e x p e r i e n c e w i t h t h e War P r o d u c t i o n B o a r d , h o w e v e r , t h e S e c r e t a r y o f A g r i c u l t u r e now had t h e f i n a l a u t h o r i t y to d e t e r m i n e food a l l o c a t i o n s . 6 9 The new f o o d o r g a n i z a t i o n c r e a t e d by t h e p r e s i d e n t i a l o r d e r was s t a f f e d i n t h e m a i n by D e p a r t m e n t of A g r i c u l t u r e p e r s o n n e l . As s u c h i t r e p r e s e n t s one of t h e few i n s t a n c e s w h e r e an o l d - l i n e d e p a r t m e n t was c h o s e n t o d i r e c t a m a j o r w a r t i m e f u n c t i o n . T h a t i t was s e l e c t e d f o r t h i s t a s k was a t r i b u t e b o t h t o i t s p r e - w a r f o o d e x p e r i e n c e and t h e p o l i t i c a l s u p p o r t of a farmer c l i e n t e l e . Further

Administrative

Changes

i n Food

Organization

By J a n u a r y 1 9 4 3 t h e p a t t e r n o f n a t i o n a l f o o d o r g a n i z a t i o n was e s t a b l i s h e d . S e v e r a l c h a n g e s i n o v e r h e a d c o n t r o l w e r e made b u t , i n t h e m a i n , t h e c o n c e p t o f v e s t i n g c e n t r a l d i r e c t i o n o f f o o d p o l i c y i n a s i n g l e a g e n c y was c o n t i n u e d t h r o u g h out the war. The S e c r e t a r y o f A g r i c u l t u r e r e m a i n e d i n c h a r g e o f t h e new f o o d a g e n c y f o r a p p r o x i m a t e l y t h r e e m o n t h s . In M a r c h he was r e p l a c e d by C h e s t e r D a v i s . The new a p p o i n t e e w a s p l a c e d i n c h a r g e o f an A d m i n i s t r a t i o n o f P r o d u c t i o n a n d D i s t r i b u t i o n a n d g i v e n p o w e r s s u b s t a n t i a l l y t h e same a s c o n f e r r e d u p o n h i s p r e d e c e s s o r . A l t h o u g h t h e new a g e n c y was c o n t i n u e d w i t h i n t h e D e p a r t m e n t of A g r i c u l t u r e , i t s head was made d i r e c t l y r e s p o n s i b l e t o t h e P r e s i d e n t . ™ A m o n t h l a t e r t h e name of t h e new a g e n c y was c h a n g e d t o t h e War Food A d m i n i s t r a t i o n . A s h o r t t i m e a f t e r D a v i s had assumed p o w e r , e v e n t s o c c u r r e d w h i c h l e d him t o c o n s i d e r t h e a d v i s a b i l i t y o f c o n t i n u i n g i n o f f i c e . In May an O f f i c e o f War M o b i l i z a t i o n was e s t a b l i s h e d . I t s D i r e c t o r , a s s i s t e d by an a d v i s o r y c o m m i t t e e , was a r m e d w i t h t h e power t o i s s u e such d i r e c t i v e s t o f e d e r a l a g e n c i e s a s he deemed e s s e n t i a l t o o b t a i n c o o r d i n a t i o n o f t h e w a r e f f o r t . The Food A d m i n i s t r a t o r was n o t a member o f t h e a d v i s o r y b o a r d and a s such had l i t t l e or no v o i c e in t h e f o r m u l a t i o n of p o l i c i e s a f f e c t i n g h i s a g e n c y . ^ I n May and J u n e t h i s o m i s s i o n p l a y e d a c r u c i a l r o l e i n D a v i s ' s d e c i s i o n n o t t o c o n t i n u e as head of t h e food a g e n c y .

THE WAP FOOD ADMINISTRATION

31

P r i c e c e i l i n g s on m a j o r f o o d i t e m s and " r o l l b a c k " p r o g r a m s f o r meat and b u t t e r w e r e a p p a r e n t l y a d o p t e d w i t h o u t c o n s u l t i n g h i m . Y e t , h e was e x p e c t e d t o c a r r y t h e m o u t . I t was t h e e x i s t e n c e o f t h i s s i t u a t i o n t h a t l e d t h e Food A d m i n i s t r a t o r t o complain about h i s l a c k of c o n t r o l o v e r food p o l i c y formul a t i o n . H i s g r e a t e s t d i f f i c u l t y a c c o r d i n g t o h i s l e t t e r of r e s i g n a t i o n was h i s " l a c k o f o p p o r t u n i t y t o g e t a t t h e n e r v e c e n t e r , where food p o l i c i e s were m a d e . " 7 ^ C o n f r o n t e d w i t h a c o n d i t i o n i n w h i c h h i s a d v i c e on f o o d m a t t e r s a p p a r e n t l y w e n t u n h e e d e d a n d hemmed i n by t h e p o w e r s o f t h e O f f i c e o f War M o b i l i z a t i o n , t h e Food A d m i n i s t r a t o r r e s i g n e d l a t e in J u n e . The r e s i g n a t i o n o f D a v i s h a l t e d a move t o make f u r t h e r c h a n g e s i n f o o d o r g a n i z a t i o n . In b o t h t h e S e n a t e and t h e House c o n s i d e r a b l e s e n t i m e n t had d e v e l o p e d f o r a p r o p o s a l t o g i v e p r i c e and r a t i o n i n g p o w e r s t o t h e Food A d m i n i s t r a t o r . P i l l s t o a c c o m p l i s h t h i s o b j e c t i v e had b e e n i n t r o d u c e d i n b o t h h o u s e s . D a v i s ' s d e p a r t u r e , h o w e v e r , h a l t e d t h e movement b e c a u s e a s one member p u t i t t h e w h o l e p l a n w a s " p r e d i c a t e d on c o n f i d e n c e i n C h e s t e r D a v i s . " 7 ' M a r v i n J o n e s s u c c e e d e d D a v i s a n d was g i v e n r e p r e s e n t a t i o n on t h e War M o b i l i z a t i o n C o m m i t t e e . 7 * T h e r e a f t e r he w a s i n a much b e t t e r p o s i t i o n t h a n h i s p r e d e c e s s o r t o d e f e n d t h e f o o d v i e w p o i n t w i t h i n t h e t o t a l i t y o f n a t i o n a l war m o b i l i z a t i o n poli cy. Later tion

Administrative

Changes

within

the

Ifar Food

Administra-

The new A d m i n i s t r a t o r , t h e t h i r d f o o d d i r e c t o r w i t h i n t h e r e l a t i v e l y s h o r t s p a c e o f s i x m o n t h s , i n h e r i t e d an o r g a n i z a t i o n t h a t was s e n s i t i v e t o c h a n g e . Each of h i s p r e d e c e s s o r s had t a i l o r e d t h e i r o r g a n i z a t i o n s t o f i t t h e i r n e e d s . J o n e s f a c e d a s i m i l a r need t o r e d i r e c t t h e e n e r g i e s of h i s s t a f f in a c c o r d a n c e w i t h h i s own c o n c e p t i o n o f t h e j o b t o be d o n e . Y e t , i n s o d o i n g , i t was e s s e n t i a l , i n t h e l i g h t o f p r e v i o u s h i s t o r y , t h a t h e make h i s i m p a c t f e l t w i t h a minimum o f d i s r u p t i o n . O t h e r w i s e m o r a l e a n d e f f i c i e n c y w o u l d b e i m p a i r e d . As a c o n s e q u e n c e t h e t e m p o o f a d m i n i s t r a t i v e c h a n g e was s l o w u n t i l the o r g a n i z a t i o n gained s t a b i l i t y . I n S e p t e m b e r , a p p r o x i m a t e l y two m o n t h s a f t e r he h a d b e e n i n o f f i c e , t h e War Food A d m i n i s t r a t o r a n n o u n c e d a m i n o r a d m i n i s t r a t i v e change d e s i g n e d m a i n l y t o a s s i s t him in c a r r y i n g o u t t h e p l a n n i n g and d i r e c t i o n o f w a r f o o d p r o g r a m s . The p o s i t i o n s o f a F i r s t A s s i s t a n t A d m i n i s t r a t o r and two A s s i s t a n t A d m i n i s t r a t o r s were c r e a t e d w i t h i n h i s immediate o f f i c e . A S p e c i a l A s s i s t a n t t o a c t in a l i a i s o n b e t w e e n t h e A d m i n i s t r a t o r and t h e s t a t « and l o c a l o f f i c i a l s w a s a l s o a d d e d . The f u n c t i o n s o f the program a g e n c i e s , however, remained r e l a t i v e l y u n d i s t u r b e d . '5

32

WARTIME FOOD PROCUREMENT AND PRODUCTION

At t h e b e g i n n i n g o f 1 9 4 4 a f u r t h e r c h a n g e t o o k p l a c e . The f u n c t i o n s o f t h e Food P r o d u c t i o n A d m i n i s t r a t i o n w e r e d i v i d e d among an O f f i c e o f P r o d u c t i o n a n d s u c h p r o g r a m a g e n c i e s a s t h e A g r i c u l t u r a l A d j u s t m e n t A g e n c y , t h e Farm S e c u r i t y A d m i n i s t r a t i o n a n d t h e S o i l C o n s e r v a t i o n S e r v i c e . The Food D i s t r i b u t i o n A d m i n i s t r a t i o n » a s r e p l a c e d by an O f f i c e o f D i s t r i b u tion with i n c r e a s e d powers over procurement, stockpiling, s t o r a g e a n d d i s t r i b u t i o n o f f o o d s t u f f s a c q u i r e d by t h e War Food A d m i n i s t r a t i o n . An O f f i c e o f P r i c e was g i v e n f u l l r e s p o n s i b i l i t y f o r t h e r e v i e w of a l l p r i c e a c t i o n s i n v o l v i n g t h e War Food A d m i n i s t r a t i o n . ^ * F u r t h e r c o n s o l i d a t i o n took p l a c e a p p r o x i m a t e l y a y e a r l a t e r . The r e o r g a n i z a t i o n w a s p r o m p t e d by " t h e n e c e s s i t y o f a d a p t i n g t h e s t r u c t u r e o f t h e War Food A d m i n i s t r a t i o n t o t h e f o r m b e s t c a l c u l a t e d to enable i t to carry out the r e s p o n s i b i l i t i e s ass i g n e d t o i t , a t t h i s c r u c i a l s t a t e of war, in a manner t h a t w i l l a s s u r e t h e m o s t e f f e c t i v e and o r d e r l y u s e of i t s p o w e r s i n c o n t r i b u t i n g t o t h e v i c t o r y and p e a c e t h a t w i l l f o l l o w . In t h e r e o r g a n i z a t i o n t h a t f o l l o w e d few a g e n c i e s e s c a p e d u n s c a t h e d . The O f f i c e o f P r o d u c t i o n was a b o l i s h e d , i t s f u n c t i o n b e i n g d i v i d e d b e t w e e n t h e A g r i c u l t u r a l A d j u s t m e n t Agency and t h e S o i l C o n s e r v a t i o n S e r v i c e . The O f f i c e o f D i s t r i b u t i o n d i s a p p e a r e d f r o m t h e s c e n e and i n i t s s t e a d t h e r e e m e r g e d a more p o w e r f u l Commodity C r e d i t C o r p o r a t i o n w i t h j u r i s d i c t i o n o v e r a l l p r o c u r e m e n t and d i s t r i b u t i o n a c t i v i t i e s . P r o g r a m o p e r a t i o n s of t h i s e x p a n d e d agency were p l a c e d u n d e r t h e d i r e c t i o n o f two v i c e p r e s i d e n t s who w e r e made " d i r e c t l y r e s p o n s i b l e t c t h e War Food A d m i n i s t r a t o r . " ^ * W i t h t h e i n s t a l l a t i o n o f t h e new p l a n o f o r g a n i z a t i o n an a d m i n i s t r a t i v e c y c l e w h i c h had b e g u n a p p r o x i m a t e l y t h r e e y e a r s b e f o r e was c o m p l e t e d . The War Food A d m i n i s t r a t i o n remained s u b s t a n t i a l l y unchanged f o r t h e b a l a n c e of the war p e r i o d . In J u l y 1946 t h e War Food A d m i n i s t r a t o r r e s i g n e d , a n d h i s f u n c t i o n s were t r a n s f e r r e d t o t h e S e c r e t a r y of A g r i c u l t u r e . The l a t t e r i n h e r i t e d t h e t a s k o f i n t e g r a t i n g t h e d e f u n c t a g e n c y and i t s p e r s o n n e l w i t h i n t h e e x i s t i n g d e p a r t m e n t a l s t r u c t u r e . ^ 9 I t was n o t u n t i l w e l l a f t e r t h e war was o v e r t h a t t h e f i n a l c h a n g e was e f f e c t e d .

CHAPTER

III

THE REQUIREMENTS AND ALLOCATIONS CONTROL PROCESS The Allocations

Process

According to Webster's dictionary to allocate means " t o assign or allot to a person or persons; to set apart for a particular purpose." As long as adequate supplies of foodstuffs were available, all requests for food were met without any difficulty. Put when demand exceeded supply, it was necessary to divide supplies among various claimants on the basis of their respective needs and their relative contribution to the war effort. This apportionment was termed a food allocation, and the procedure by which it was accomplished, the food allocation process. Allocation was central to the entire job of production and procurement. When individual food allocations were totalled, a blueprint was obtained of the food needs of this country and its allies. On the basis of this food budget production plans were instituted, supply programs were planned, and implementing measures such as food orders were undertaken. Early

Beginnings

The antecedents of the food allocation mechanism can be traced to the early efforts of the Supply Priorities and Allocations Board to mobilize the productive apparatus for war. In 1941, the Executive Director of that organization announced that the planning of the defense program would be based upon an accurate and coordinated knowledge of all of the nation's requirements, both civilian and military. From such data would come the production schedules to fulfill the national need.^ After Pearl Harbor war mobilization moved into high gear. A Requirements Committee was established within the War Production Board with final authority to allocate available and prospective supplies of " m a t e r i a l s and s e r v i c e s " among major types of consumers.^ The subsequent failure of the food interests to obtain what they considered to be a fair representation on this committee, and the general confusion resulting from the dispersion of the food authority among many government agencies, led to the creation of the Foods Requirements Committee as a sub-committee of the over-all Requirements Committee.^

WARTIME FOOD PROCUREMENT AND PRODUCTION

34

S h o r t l y t h e r e a f t e r , in J u n e 1942, t h e P r e s i d e n t of t h e U n i t e d S t a t e s on b e h a l f o f h i m s e l f a n d t h e P r i m e M i n i s t e r of England a n n o u n c e d t h a t he wanted t h e S e c r e t a r y of A g r i c u l t u r e to j o i n with a B r i t i s h r e p r e s e n t a t i v e in t h e f o r m a t i o n o f a Combined Food B o a r d . In h i s d i r e c t i v e t h e C h i e f E x e c u t i v e s t a t e d t h a t t h e d u t i e s of t h e Board would b e : 1. " T o c o n s i d e r , i n v e s t i g a t e , i n q u i r e i n t o a n d f o r m u l a t e p l a n s w i t h r e s p e c t t o any q u e s t i o n i n w h i c h t h e G o v e r n m e n t o f t h e U . S . A . a n d U . K . h a v e o r may h a v e , a common c o n c e r n , r e l a t i n g to supply production, t r a n s p o r t a t i o n , disposal, a l l o c a t i o n o r d i s t r i b u t i o n , in or t o any p a r t of t h e w o r l d , of f o o d s , a g r i c u l t u r a l m a t e r i a l s a u x i l i a r y to the p r o d u c t i o n of s u c h f o o d s and a g r i c u l t u r a l m a t e r i a l s , and t o make r e c o m m e n d a t i o n s t o t h e G o v e r n m e n t s of t h e U . S . A . and t h e U . K . i n r e s p e c t t o such q u e s t i o n s . " 2. " T o work i n c o l l a b o r a t i o n w i t h o t h e r s of t h e U n i t e d N a t i o n s t o w a r d t h e b e s t u t i l i z a t i o n of t h e i r food r e s o u r c e s and, in c o l l a b o r a t i o n w i t h i n t e r e s t e d n a t i o n o r n a t i o n s , to f o r m u l a t e p l a n s and r e c o m m e n d a t i o n s f o r t h e d e v e l o p m e n t , e x p a n s i o n , p u r c h a s e or o t h e r e f f e c t i v e use of t h e i r food r e sources. In p r i n c i p l e , t h e n , t h e e s t a b l i s h m e n t o f t h e C o m b i n e d Food Board meant t h a t t h e food r e s o u r c e s of b o t h n a t i o n s would b e come a common p o o l a b o u t w h i c h f u l l i n f o r m a t i o n w o u l d b e e x c h a n g e d f o r t h e m u t u a l b e n e f i t , of b o t h p a r t i e s . Steps

Toward

Integration

A f t e r t h e f o r m a t i o n of t h e C o m b i n e d Food B o a r d , s t e p s w e r e t a k e n t o i n t e g r a t e t h e n a t i o n a l and i n t e r n a t i o n a l allocation m a c h i n e r y . Within the Foods R e q u i r e m e n t s Committee a s t a n d a r d form was d e v e l o p e d f o r t h e p r e s e n t a t i o n of t h e food r e q u i r e m e n t s o f t h e Armed S e r v i c e s , t h e I . e n d - l . e a s e A d m i n i s t r a t i o n a n d t h e c i v i l i a n p o p u l a t i o n . A l l s u c h r e q u e s t s w e r e made s u b j e c t t o t h e f i n a l r e v i e w by t h e F o o d s R e q u i r e m e n t s C o m m i t t e e . T h e r e s u l t s of t h e c o m m i t t e e ' s d e l i b e r a t i o n s w e r e t e r m e d n a t i o n a l food a l l o c a t i o n s . " 1 I n t e r n a t i o n a l a l l o c a t i o n s i n v o l v i n g t h e d i v i s i o n of w o r l d f o o d r e s o u r c e s by t h e t e r m s o f t h e p r e s i d e n t i a l announcement w e r e , o f c o u r s e , t h e p r o v i n c e o f t h e C o m b i n e d Food B o a r d . Since the d e c i s i o n s of the i n t e r n a t i o n a l agency a f f e c t e d the f o r m u l a t i o n o f n a t i o n a l f o o d p o l i c y , t h e War P r o d u c t i o n B o a r d a s k e d t h a t i t be k e p t i n f o r m e d of s u c h C o m b i n e d Food R o a r d a c t i o n s as the e x p a n s i o n of f a c i l i t i e s f o r l.end-Lease r e q u i r e m e n t s , t h e c h a n g e s made i n f o o d s p e c i f i c a t i o n s , decisions which e i t h e r a f f e c t e d c o n s e r v a t i o n o r d e r s or changes in them, d i v e r s i o n s of f o o d s t u f f s n o r m a l l y imported i n t o the U n i t e d S t a t e s and any o t h e r m a t t e r s m e n t i o n e d i n t h e memorandum t h a t had b r o u g h t t h e F o o d s R e q u i r e m e n t s C o m m i t t e e i n t o b e i n g . * T h i s t h e S e c r e t a r y of A g r i c u l t u r e , a s t h e A m e r i c a n r e p r e s e n t a t i v e t o t h e C o m b i n e d F o o d R o a r d p r o m i s e d t o d o . L a t e r , an e n d e a v o r

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w a s made t o a c h i e v e s m o o t h e r w o r k i n g r e l a t i o n s h i p s b e t w e e n t h e War P r o d u c t i o n B o a r d a n d t h e D e p a r t m e n t o f A g r i c u l t u r e by the a p p o i n t m e n t of a j o i n t committee t o d e f i n e t h e i r r e s p e c t i v e j u r i s d i c t i o n in r e g a r d to a l l o c a t i o n s . ^ C o r r e s p o n d i n g a r r a n g e m e n t s t o h a n d l e i t s p a r t of t h e a l l o c a t i o n s w o r k w e r e m a d e by t h e B r i t i s h G o v e r n m e n t . I t s m e m b e r on t h e C o m b i n e d F o o d B o a r d w a s t h e h e a d o f t h e B r i t i s h F o o d M i s s i o n t o t h e U n i t e d S t a t e s . To a c h i e v e a u n i f i e d c o n s i d e r a t i o n of m a t t e r s c o m i n g b e f o r e t h e C o m b i n e d Food B o a r d , t h e B r i t i s h G o v e r n m e n t f o r m e d a London Food C o m m i t t e e w i t h r e p r e s e n t a t i v e s f r o m t h e m o t h e r c o u n t r y and a l l of t h e d o m i n i o n s e x c e p t C a n a d a and I n d i a . ® The S e c r e t a r i a t o f t h e C o m b i n e d Food B o a r d was g i v e n o f f i c e s in t h e D e p a r t m e n t of A g r i c u l t u r e b u i l d i n g s . The o r g a n i z a t i o n o f t h e a g e n c y was c o m p l e t e d when j o i n t international c o m m o d i t y c o m m i t t e e s w e r e a p p o i n t e d . T h e s e w e r e s t a f f e d by B r i t i s h and American p e r s o n n e l drawn, r e s p e c t i v e l y , from t h e B r i t i s h Food M i s s i o n and t h e D e p a r t m e n t o f A g r i c u l t u r e . S e l e c t i o n of r e p r e s e n t a t i v e s from t h e U n i t e d S t a t e s were a p p r o v e d by t h e F o o d s R e q u i r e m e n t s C o m m i t t e e a n d c h a r g e d w i t h t h e r e s p o n s i b i l i t y o f k e e p i n g t h a t c o m m i t t e e i n f o r m e d o f Comb i n e d Food B o a r d a c t i o n s . ® Initial

Actions

The c o m p l e t i o n of a d m i n i s t r a t i v e a r r a n g e m e n t s was f o l l o w e d by an a n n o u n c e m e n t t h a t w o r k w o u l d b e g i n i m m e d i a t e l y t o a l l o c a t e f o o d s and f o o d m a t e r i a l s i n s h o r t s u p p l y . In r e s p o n s e to t h i s the i n t e r n a t i o n a l commodity c o m m i t t e e s began a s t u d y of w o r l d food p r o d u c t i o n and t h e s u p p l y of e x i s t i n g food i tems. The B o a r d s t a r t e d w i t h an a g r e e m e n t b e t w e e n t h e U n i t e d S t a t e s and G r e a t B r i t a i n c o v e r i n g t h e meat p r o d u c t i o n of A r g e n t i n a , U r u g u a y , P a r a g u a y and B r a z i l . In r e t u r n f o r g e t t i n g the e x c l u s i v e r i g h t to p u r c h a s e meat in t h e s e a r e a s England a g r e e d t o t a k e l e s s meat from t h e U n i t e d S t a t e s . Canada and S o u t h A f r i c a w e r e a s k e d t o a p p r o v e t h i s p r o p o s a l and a s t a n d i n g c o m m i t t e e w a s a p p o i n t e d t o make a c o n t i n u i n g s t u d y o f t h e meat s u p p l y and t o s u g g e s t n e c e s s a r y c h a n g e s i n t h e a g r e e m e n t . C o m b i n e d p u r c h a s e a c t i o n s on s p i c e s w e r e a l s o d e v e l o p e d by t h e B o a r d . O r i g i n a l l y t h e U n i t e d Kingdom had a g r e e d t o u s e Indian ginger p e r m i t t i n g the United S t a t e s to purchase its s p i c e s f r o m J a m a i c a . The A m e r i c a n G o v e r n m e n t a l s o p r o m i s e d t o buy a n y e x c e s s o f I n d i a n g i n g e r n o t n e e d e d by t h e B r i t i s h . L a t e r as a r e s u l t of f u r t h e r n e g o t i a t i o n the B r i t i s h were a l lowed t o o b t a i n 3 m i l l i o n t o n s o f g i n g e r f r o m J a m a i c a a n d u n l i m i t e d q u a n t i t i e s of I n d i a n g i n g e r . T h i s c o u n t r y u n d e r t o o k to a c q u i r e t h e l e f t o v e r s from b o t h p l a c e s and p l e d g e d itself to i s s u e e n f o r c i n g import o r d e r s to implement the agreement.'® These e x a m p l e s i l l u s t r a t e the manner in which the i n t e r n a t i o n a l a l l o c a t i o n f u n c t i o n e d . In e s s e n c e , i t was a t e c h n i q u e

WARTIME FOOD PROCUREMENT AND PRODUCTION by w h i c h t h e f o o d s t u f f s f r o m s o u r c e s o t h e r t h a n t h e U n i t e d S t a t e s w e r e d i v i d e d a m o n g t h e m e m b e r g o v e r n m e n t s o f t h e Comb i n e d Food B o a r d . A l l o c a t i o n s of t h i s s o r t , however, were d e p e n d e n t upon t h e e x e c u t i o n o f r e c o m m e n d a t i o n s by t h e p a r t i e s t o t h e a g r e e m e n t . B u t i n t h e U n i t e d S t a t e s , a s we h a v e s e e n , t h e r e w e r e t o o many A m e r i c a n a g e n c i e s d e a l i n g w i t h f o o d a n d t h i s c o n d i t i o n i n i t i a l l y made i m p l e m e n t a t i o n d i f f i c u l t . T t i s p r o b a b l e t h a t much m o r e c o u l d h a v e b e e n a c c o m p l i s h e d i n t h e way o f c o n c r e t e a c t i o n , b u t a t l e a s t a f i r s t s t e p had been t a k e n t o o r g a n i z e b o t h t h e n a t i o n a l and i n t e r n a t i o n a l food a l l o c a t i o n s m a c h i n e r y . National Agricultare

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U n f o r t u n a t e l y t h e F o o d s R e q u i r e m e n t s C o m m i t t e e , by v i r t u e of t h e d u a l s t a t u s of i t s C h a i r m a n , was drawn i n t o t h e a d m i n i s t r a t i v e t u g o f w a r b e t w e e n t h e War P r o d u c t i o n P o a r d a n d t h e D e p a r t m e n t of A g r i c u l t u r e f o r c o n t r o l of t h e n a t i o n ' s food p r o g r a m . I t c o u l d n o t r e m a i n an i n n o c e n t b y s t a n d e r a n d w h e n t h e s m o k e o f b a t t l e c l e a r e d , i t r e m a i n e d on t h e b a t t l e field a s a c a s u a l t y . I n D e c e m b e r 1942 t h e same f o o d o r d e r t h a t h a d r e m o v e d t h e f o o d f u n c t i o n f r o m t h e War P r o d u c t i o n B o a r d a b o l ished the committee. " For the time b e i n g a t l e a s t , the f u r t h e r o r g a n i z a t i o n of t h e a l l o c a t i o n s work was t o w a i t upon t h e a c t i o n t o b e t a k e n by t h e S e c r e t a r y o f A g r i c u l t u r e . A d e c i s i o n on a l l o c a t i o n s o r g a n i z a t i o n w a s n o t l o n g i n c o m i n g . The f o o d o r d e r g a v e t h e S e c r e t a r y o f A g r i c u l t u r e a u t h o r i t y t o " m a k e a l l o c a t i o n s o f f o o d s f o r human a n d a n i m a l c o n s u m p t i o n t o g o v e r n m e n t a l a g e n c i e s and f o r p r i v a t e a c c o u n t , f o r d i r e c t and i n d i r e c t m i l i t a r y , o t h e r g o v e r n m e n t a l , civili a n and f o r e i g n n e e d s , " " A s i d e f r o m t h i s g e n e r a l l a n g u a g e t h e d i r e c t i v e was s p e c i f i c i n one r e s p e c t . I t o r d e r e d the S e c r e t a r y of A g r i c u l t u r e to e s t a b l i s h an i n t e r - d e p a r t m e n t a 1 c o m m i t t e e c o n s i s t i n g o f r e p r e s e n t a t i v e s o f t h e S t a t e , War a n d N a v y D e p a r t m e n t s , t h e O f f i c e of L e n d - L e a s e A d m i n i s t r a t i o n and " s u c h o t h e r a g e n c i e s a s h e may d e t e r m i n e t o be c o n c e r n e d w i t h t h e f o o d p r o g r a m . " I n J a n u a r y 1943 t h i s c o m m i t t e e was d e s i g n a t e d a s t h e Food A d v i s o r y C o m m i t t e e and i t s m e m b e r s h i p , in a d d i t i o n t o t h e a g e n c i e s m e n t i o n e d a b o v e , was e n l a r g e d t o i n c l u d e t h e D i r e c t o r s o f Food P r o d u c t i o n and D i s t r i b u t i o n , t h e P r e s i d e n t of t h e Commodity C r e d i t C o r p o r a t i o n and t h e A d m i n i s t r a t o r of t h e Agricultural Research A d m i n i s t r a t i o n . ^ T h e new c o m m i t t e e f u n c t i o n e d i n t h e c a p a c i t y o f an a d v i s e r t o the S e c r e t a r y of A g r i c u l t u r e . I t n o t only reviewed f i n a l a l l o c a t i o n s b u t i t a l s o a s s i s t e d h i m by p r e p a r i n g p o l i c y s t a t e m e n t s on s u c h d i v e r s e s u b j e c t s a s t h e c r i t e r i a f o r e v a l u a t i n g t h e c l a i m s made u p o n t h e U n i t e d S t a t e s f o o d s t o c k p i l e , t h e p r i n c i p l e s g o v e r n i n g t h e i s s u a n c e of m a j o r food o r d e r s , c o n s i d e r a t i o n s w h i c h s h o u l d u n d e r l y t h e r a t i o n i n g of f o o d s ,

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t h e g e n e r a l o b j e c t i v e s o f p r i o r i t y o r d e r s and a w h o l e h o s t o f o t h e r p r o b l e m s r e l a t i n g t o t h e food p r o g r a m . In a d d i t i o n i t analyzed proposed policy s t a t e m e n t s submitted to the Secret a r y o f A g r i c u l t u r e by t h e c o n s t i t u e n t a g e n c i e s o f t h e D e p a r t m e n t . I n o t h e r w o r d s t h e c o m m i t t e e was m o r e t h a n j u s t a c o u n s e l o r on a l l o c a t i o n p o l i c y . 1 * The Role

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A p p r o x i m a t e l y a month a f t e r t h e p r e s i d e n t i a l food o r d e r , the burden of p r e p a r i n g a l l o c a t i o n recommendations f o r the c o n s i d e r a t i o n o f t h e S e c r e t a r y a n d t h e Food A d v i s o r y C o m m i t t e e was a s s i g n e d t o t h e D i r e c t o r o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n . The l a t t e r was d i r e c t e d " t o a s s e m b l e r e q u i r e ments f o r food of a l l c l a i m a n t a g e n c i e s ; to a d j u s t t h o s e r e q u i r e m e n t s in t e r m s of a v a i l a b l e s u p p l i e s ; to p r e p a r e t a b l e s of a l l o c a t i o n f o r r e c o m m e n d a t i o n t o t h e S e c r e t a r y a n d t o c o n s u l t w i t h a l l c l a i m a n t a g e n c i e s t o r e s o l v e a s many p o i n t s o f c o n f l i c t as pos s i b l e . I n d i s c h a r g i n g t h e s e r e s p o n s i b i l i t i e s , t h e D i r e c t o r o f Food D i s t r i b u t i o n e s t a b l i s h e d an I n t e r - A g e n c y C o m m i t t e e on A l l o c a t i o n s w i t h h i m s e l f a s c h a i r m a n and w i t h r e p r e s e n t a t i v e s f r o m a l l of t h e p r i n c i p a l American c l a i m a n t a g e n c i e s . T h i s c o m m i t t e e became t h e f o c a l p o i n t f o r t h e c o n s i d e r a t i o n of t h e a l l o c a t i o n s of a l l c l a i m a n t g r o u p s . 1 ® Accompanying t h e s e c r e t a r i a l d i r e c t i v e were c h a n g e s w i t h i n t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n d e s i g n e d t o e n a b l e i t t o d i s c h a r g e more e f f e c t i v e l y i t s r e s p o n s i b i l i t i e s f o r m a k i n g a l l o c a t i o n on r e c o m m e n d a t i o n s . S t a f f w o r k f o r t h e I n t e r - A g e n c y C o m m i t t e e on A l l o c a t i o n s w a s a s s i g n e d t o t h e R e q u i r e m e n t s a n d A l l o c a t i o n s C o n t r o l B r a n c h . I n t h i s c a p a c i t y i t s e r v e d a s an a d v i s e r t o t h e C h a i r m a n o f t h e c o m m i t t e e and p r o v i d e d g u i d a n c e f o r t h e work o f a n a l y z i n g s u p p l y a n d r e q u i r e m e n t s d a t a , a n d r e v i e w i n g r e q u e s t s f o r a l l o c a t i o n s . I n t e r - a g e n c y commodity s u b - c o m m i t t e e s w e r e f o r m e d a n d s t a f f e d by c o m m o d i t y e x p e r t s d r a w n f r o m t h e v a r i o u s b r a n c h e s and d i v i s i o n s w i t h i n t h e A d m i n i s t r a t i o n a n d t h e i r c o u n t e r p a r t s among t h e o t h e r f e d e r a l a g e n c i e s w i t h f o o d r e s p o n s i b i l i t i e s . L e a d e r s h i p of t h e s e s u b c o m m i t t e e s was e n t r u s t e d t o t h e c o m m o d i t y b r a n c h c h i e f s a n d , a . g a i n , m e m b e r s o f t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l Branch were s e l e c t e d a s s e c r e t a r i e s t o t h e s e c o m m i t t e e s . I t was t h e t a s k o f t h e s u b - c o m m i t t e e s t o o b t a i n a g r e e m e n t among agency r e p r e s e n t a t i v e s and t o f o r m u l a t e t e n t a t i v e a l l o c a t i o n s f o r the c o n s i d e r a t i o n of the f u l l c o m m i t t e e . In a d d i t i o n , t h e r e m n a n t s o f t h e O f f i c e o f A g r i c u l t u r a l War R e l a t i o n s w h i c h h a d s e r v e d i n a s i m i l a r c a p a c i t y t o t h e Food R e q u i r e m e n t s Committee were i n c o r p o r a t e d w i t h i n the R e q u i r e ments and A l l o c a t i o n s C o n t r o l B r a n c h . F i n a l l y , i n r e s p o n s e t o a s e c r e t a r i a l r e q u e s t t h a t a u n i t be e s t a b l i s h e d " t o r e p r e s e n t and p r o t e c t " t h e i n t e r e s t s o f t h e c i v i l i a n p o p u l a t i o n , a C i v i l i a n F o o d s R e q u i r e m e n t s B r a n c h was d e s i g n a t e d t o p r o t e c t

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WARTIME FOOD PROCUREMENT AND PRODUCTION

t h e c i v i l i a n by t h e f o r m u l a t i o n o f minimum c i v i l i a n requirem e n t s b a s e d upon n u t r i t i o n a l l e v e l s a n d by a d v o c a t i n g s u c h needs b e f o r e the v a r i o u s i n t e r - a g e n c y c o m m i t t e e s . 17 In t h e m o n t h s w h i c h f o l l o w e d two a d d i t i o n a l l y significant s t e p s w e r e t a k e n t o make t h e a l l o c a t i o n s p r o c e s s m o r e e f f e c t i v e . Formal s u p p l y e s t i m a t e s c o m m i t t e e s under the l e a d e r s h i p o f the commodity branch c h i e f s f o r e a c h o f the c o m m o d i t i e s u n d e r a l l o c a t i o n were e n t r u s t e d w i t h t a s k o f d e v e l o p i n g o f f i c i a l s u p p l y e s t i m a t e s which were t o form t h e b a s i s upon which t h e a p p o r t i o n m e n t s t o t h e c l a i m a n t s w o u l d t a k e p l a c e . To m a r s h a l the e n t i r e r e s o u r c e s of the Department the D i r e c t o r of Food P r o d u c t i o n and t h e C h i e f o f t h e B u r e a u o f A g r i c u l t u r a l E c o n o m i c s w e r e a s k e d t o n o m i n a t e r e p r e s e n t a t i v e s t o s e r v e on t h e s e c o m m i t t e e s . S t i l l l a t e r the f u n c t i o n of t h e s e c o m m i t t e r s w a s b r o a d e n e d t o i n c l u d e f o r e c a s t s o f p r o d u c t i o n , i m p o r t s and s t o c k s on h a n d . ' " S e c o n d l y , in o r d e r t o b r i n g a b o u t a f u l l e r i n t e g r a t i o n o f t h e work o f t h e Food P r o d u c t i o n A d m i n i s t r a t i o n in p l a n n i n g p r o d u c t i o n in r e l a t i o n to a l l o c a t i o n s , a J o i n t P l a n n i n g S t a f f on R e q u i r e m e n t s and P r o d u c t i o n was s e t u p w i t h i n t h e D e p a r t m e n t . The D i r e c t o r o f t h e P r o d u c t i o n P r o g r a m s I r a n c h o f t h e Food P r o d u c t i o n A d m i n i s t r a t i o n and the C h i e f o f t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l P r a n c h o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n w e r e g i v e n j o i n t l e a d e r s h i p in p l a n n i n g t h e r e l a t i o n o f wartime p r o d u c t i o n n e e d s . Thus the o r g a n i z a t i o n a l s e p a r a t i o n b e t w e e n p r o d u c t i o n a n d d i s t r i b u t i o n was closed. In M a r c h 1943 t h e p o w e r s , d u t i e s , a n d f u n c t i o n s c o n f e r r e d upon t h e S e c r e t a r y by t h e f o o d o r d e r o f D e c e m b e r 5, 1 9 4 2 , w e r e t r a n s f e r r e d t o an A d m i n i s t r a t o r o f P r o d u c t i o n and D i s t r i b u t i o n who was made d i r e c t l y r e s p o n s i b l e t o t h e P r e s i d e n t . T h e S e c r e t a r y o f A g r i c u l t u r e c o n t i n u e d a s h e a d o f t h e F o o d Adv i s o r y C o m m i t t e e b u t the A d m i n i s t r a t o r was a l s o g i v e n memberThe f o r m e r c o n s h i p on t h e i n t e r - d e p a r tme n t a 1 c o m m i t t e e . t i n u e d a s A m e r i c a n r e p r e s e n t a t i v e on t h e C o m b i n e d F o o d B o a r d . L e s s t h a n a month l a t e r t h e p o w e r s a n d d u t i e s v e s t e d i n t h e A d m i n i s t r a t o r w e r e l o d g e d in t h e War F o o d A d m i n i s t r a t i o n . In s o f a r a s a l l o c a t i o n s w e r e c o n c e r n e d , t h e War F o o d A d m i n i s t r a t o r w a s g i v e n t h e p o w e r t o make a l l o c a t i o n s a n d b e c o m e an a l t e r n a t e A m e r i c a n r e p r e s e n t a t i v e on t h e C o m b i n e d F o o d B o a r d . The D i r e c t o r o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n r e m a i n e d a s h e a d o f t h e I n t e r - A g e n c y C o m m i t t e e on A l l o c a t i o n s and o c c u p i e d a p o s i t i o n in r e l a t i o n t o t h e War F o o d A d m i n i s t r a t o r t h a t was a n a l o g o u s t o t h e p o s t he had e a r l i e r f i l l e d f o r t h e S e c r e t a ry .

THE REQUIREMENTS AND ALLOCATIONS CONTROL PROCESS Later

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T h i s r a t h e r cumbersome m a c h i n e r y , w i t h two i n t e r - a g e n c y comm i t t e e s , t h e Food A d v i s o r y C o m m i t t e e and t h e I n t e r - A g e n c y Comm i t t e e on A l l o c a t i o n s , c r e a k e d a l o n g u n t i l O c t o b e r 1 9 4 3 . In t h a t month a c o n t r o v e r s i a l r e p o r t o f t h e f o r m e r c o m m i t t e e had been b r o u g h t t o p u b l i c a t t e n t i o n by p r e m a t u r e p u b l i c i t y . In a r a t h e r f r a n k s t a t e m e n t , i t c r i t i c i z e d t h e e x i s t i n g f o o d p r o g r a m s . " T h e m o s t i m m e d i a t e and i m p r e s s i v e g a i n s , " i t s a i d , " c a n be made t h r o u g h t h e b e t t e r u s e o f e x i s t i n g r e s o u r c e s o f l a n d , l a b o r a n d e q u i p m e n t , and t h r o u g h s h i f t i n g r e s o u r c e s f r o m c e r t a i n c r o p s and l i v e s t o c k e n t e r p r i s e s t o o t h e r s . " ^ ' A l a r g e n u t r i e n t i n c r e a s e , i t a s s e r t e d , was p o s s i b l e by a more e f f i c i e n t u s e o f m i l k , c e r e a l s , s o y b e a n s , p e a n u t s and c o t t o n m e a l . L a r g e i n c r e a s e s i n v e g e t a b l e p r o d u c t i o n w i t h a s h i f t from t h e l e s s n u t r i t i o u s t o t h e more n u t r i t i o u s v e g e t a b l e s w e r e r e c o m mended a s w e l l a s a s h a r p r e d u c t i o n in t h e h o g and p o u l t r y p o p u l a t i o n t o b r i n g them i n t o l i n e w i t h p r o s p e c t i v e f e e d s u p p l i e s . C o n c e r n was a l s o e x p r e s s e d a b o u t t h e a b i l i t y o f t h e p a r i t y f o r m u l a t o a c t a s a p r o d u c t i o n i n c e n t i v e . More i m p o r t a n t than a l l o f t h e s e , h o w e v e r , was t h e r e c o m m e n d a t i o n t h a t t h e r e be a s h i f t in f o o d p r o d u c t i o n from l i v e s t o c k and c e r t a i n c r o p s t o d i r e c t c o n s u m p t i o n f o o d s s u c h a s c e r e a l s and d a i r y produc t s . The r e p o r t was e m b a r r a s s i n g , n o t o n l y b e c a u s e it. went c o u n t e r t o many e x i s t i n g p o l i c i e s o f t h e War Food A d m i n i s t r a t i o n , b u t a l s o b e c a u s e t h e S e c r e t a r y o f A g r i c u l t u r e was no l o n g e r a t t h e helm o f t h e f o o d p r o g r a m . A l t h o u g h t h e S e c r e t a r y p r o m p t l y d i s a v o w e d t h e f i n d i n g s o f t h e Food A d v i s o r y C o m m i t t e e and d e p l o r e d the p u b l i c i t y g i v e n t o i t , t h e i n c i d e n t d i d s e r v e t o e m p h a s i z e the need f o r a r e v i s i o n of the a l l o c a t i o n s m a c h i n e r y . H e r e a s in many o t h e r a s p e c t s o f t h e f o o d p r o g r a m a s i n g l e head t o c o n t r o l a l l o c a t i o n p o l i c y was n e e d e d . The d e s i g n a t i o n o f t h e War Food A d m i n i s t r a t o r a s t h e U n i t e d S t a t e s r e p r e s e n t a t i v e t o t h e Combined Food B o a r d p r o v i d e d t h e o c c a s i o n f o r f u r t h e r revamping the a l l o c a t i o n s m a c h i n e r y . Ost e n s i b l y t h e p u r p o s e o f t h e r e a r r a n g e m e n t was t o s t r e n g t h e n t h e p o s i t i o n o f t h e U n i t e d S t a t e s in i t s d e a l i n g w i t h t h e i n t e r n a t i o n a l a g e n c y b u t a c t u a l l y t o do s o , i t was n e c e s s a r y t o c h a n g e t h e n a t i o n a l f o o d a l l o c a t i o n f u n c t i o n . The Food A d v i s o r y C o m m i t t e e and t h e I n t e r - A g e n c y C o m m i t t e e on A l l o c a t i o n s were b o t h a b o l i s h e d by a d m i n i s t r a t i v e o r d e r and in t h e i r s t e a d t h e r e was c r e a t e d a s i n g l e Food R e q u i r e m e n t s and A l l o c a t i o n s C o m m i t t e e w i t h a m e m b e r s h i p s i m i l a r in c o m p o s i t i o n t o i t s i n t e r - a g e n c y p r e d e c e s s o r s . F u l l a u t h o r i t y t o p a s s on a l l d o m e s t i c and f o r e i g n c l a i m s f o r f o o d s from t h e A m e r i c a n s t o c k p i l e was v e s t e d in t h e new c o m m i t t e e . The D i r e c t o r o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n was c o n t i n u e d a s c h a i r m a n o f t h e new committee with f u l l powers t o o r g a n i z e i t s work. The l a t t e r i n c a r r y i n g o u t h i s new a s s i g n m e n t , a p p o i n t e d a v i c e c h a i r m a n , an e x e c u t i v e , and d e p u t y e x e c u t i v e o f f i c e r s .

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T h e s e t o g e t h e r w i t h t h e s t a f f of t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l Branch s e r v e d as the S e c r e t a r i a t f o r t h e f u l l c o m m i t t e e . I n s u p p o r t of t h e f u l l c o m m i t t e e w e r e a s e r i e s o f c o m m o d i t y c o m m i t t e e s f o r m a l l y t i t l e d Food R e q u i r e m e n t s and A l l o c a t i o n s s u b - c o m m i t t e e s w i t h an i n t e r - a g e n c y m e m b e r s h i p s i m i l a r t o t h a t of t h e p a r e n t c o m m i t t e e . L i k e t h e i n t e r - a g e n c y s u b - c o m m i t t e e s w h i c h h a d p r e c e d e d i t , e a c h of t h e new c o m m i t t e e s were p l a c e d u n d e r t h e c h a i r m a n s h i p of a commodity b r a n c h c h i e f o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n w i t h a s e c r e t a r y f r o m t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l B r a n c h . ^ The w o r k o f t h e s e s u b - c o m m i t t e e s i n a n a l y z i n g and r e c o m m e n d i n g a l l o c a t i o n s was s u b m i t t e d t h r o u g h t h e e x e c u t i v e o f f i c e r f o r r e v i e w and f i n a l c o n s i d e r a t i o n by t h e f u l l c o m m i t t e e . ® T h e s e s t e p s r e s u l t e d i n a s i m p l i f i c a t i o n of t h e n a t i o n a l food a l l o c a t i o n p r o c e s s . T h e r e a f t e r , a s i n g l e i n t e r - d e p a r t m e n t a l c o m m i t t e e i n s t e a d o f t h e two w h i c h h a d p r e v i o u s l y e x i s t e d a l l o c a t e d A m e r i c a n f o o d s u p p l i e s among d o m e s t i c and f o r e i g n c l a i m a n t s . M o r e o v e r , t h e u n c e r t a i n a u t h o r i t y w i t h i n t h e Food A d v i s o r y Committee b e c a u s e of t h e j o i n t m e m b e r s h i p of t h e S e c r e t a r y and t h e War Food A d m i n i s t r a t o r was r e m o v e d . The a d m i n i s t r a t i v e a r r a n g e m e n t s d e s c r i b e d a b o v e w e r e c o n t i n u e d w i t h minor m o d i f i c a t i o n s f o r t h e b a l a n c e of t h e war. I n J a n u a r y 1 9 4 4 , t h e O f f i c e o f D i s t r i b u t i o n r e p l a c e d t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n a n d i t s D i r e c t o r became t h e new C h a i r m a n of t h e Food R e q u i r e m e n t s a n d A l l o c a t i o n s C o m m i t t e e . H i s Deputy D i r e c t o r f o r S u p p l y became t h e V i c e Chairman of t h e C o m m i t t e e a n d t h e e x e c u t i v e o f f i c e r o f t h e C o m b i n e d Food B o a r d . A p p r o x i m a t e l y a y e a r l a t e r , as a r e s u l t of f u r t h e r o r g a n i z a t i o n a l c h a n g e t h e V i c e P r e s i d e n t o f t h e Commodity C r e d i t C o r p o r a t i o n in Charge of S u p p l y r e c e i v e d a l l of t h e a l l o c a t i o n s f u n c t i o n s by b e i n g made t h e C h a i r m a n o f t h e Food R e q u i r e m e n t s and A l l o c a t i o n s C o m m i t t e e and t h e Deputy U n i t e d S t a t e s member of t h e C o m b i n e d Food B o a r d . ConsoIidation

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O r i g i n a l l y U n i t e d S t a t e s r e p r e s e n t a t i o n on t h e i n t e r n a t i o n a l c o m m o d i t y c o m m i t t e e s o f t h e C o m b i n e d Food R o a r d w a s o b t a i n e d by i n v i t a t i o n s i s s u e d by t h e S e c r e t a r i a t of t h a t a g e n c y . E a c h f e d e r a l a g e n c y g i v e n m e m b e r s h i p on t h e s e c o m m i t t e e s h a d i t s own p o i n t o f v i e w , and t o s a y t h e l e a s t , a c o o r d i n a t e d A m e r i c a n v i e w p o i n t was o f t e n l a c k i n g on i m p o r t a n t p r o b l e m s b r o u g h t b e f o r e t h e C o m b i n e d Food B o a r d f o r d e c i s i o n . As t h e s t a f f group f o r the Foods R e q u i r e m e n t s Committee the O f f i c e o f A g r i c u l t u r a l War R e l a t i o n s had s o u g h t t o b r i n g a b o u t a u n i f i e d U n i t e d S t a t e s d e l e g a t i o n , b u t i t had f a i l e d . I n d e e d , i t s e f f o r t s w e r e bound t o b e i n c o n c l u s i v e b e c a u s e t h e d i s p e r s i o n of f o o d a u t h o r i t y among f e d e r a l a g e n c i e s p r e v e n t e d c o o r d i n a t i o n . A u n i t e d s t a n d by t h e A m e r i c a n G o v e r n m e n t on i n t e r n a t i o n a l food a l l o c a t i o n s would have t o a w a i t the c e n t r a l i z a t i o n o f t h e f o o d a u t h o r i t y i n a s i n g l e a g e n c y and t h e

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c r e a t i o n o f an a d e q u a t e c l e a r a n c e m e c h a n i s m . I n t h e m e a n t i m e , t h e B r i t i s h G o v e r n m e n t by v i r t u e o f t h e f a c t t h a t a l l of i t s p r o p o s a l s w e r e c l e a r e d t h r o u g h t h e London Food C o m m i t t e e was in a s u p e r i o r b a r g a i n i n g p o s i t i o n in i t s d e a l i n g w i t h American agencies. O f c o u r s e t h i s l a c k o f u n i t y w a s known t o t h e m a k e r s o f A m e r i c a n food p o l i c y a n d , a s a c o n s e q u e n c e , t h e y e a r 1943 saw m a n y s t e p s t a k e n t o i n t e g r a t e t h e A m e r i c a n v i e w s on m a t t e r s c o n s i d e r e d b y t h e C o m b i n e d F o o d B o a r d . As t h a t y e a r b e g a n , the n e c e s s a r y f i r s t s t e p , t h e v e s t i n g of c e n t r a l responsibility f o r t h e a l l o c a t i o n of a l l f o o d from d o m e s t i c s o u r c e s had a l r e a d y b e e n t a k e n . From t h e n o n , f o r t h e b a l a n c e o f t h e y e a r , a d m i n i s t r a t i v e changes were concerned with o b t a i n i n g a u n i f i e d viewpoint w i t h i n the American agency charged with the l e a d e r s h i p o f o u r f o o d p r o g r a m . T h i s m e a n t t h a t an A m e r i c a n c l e a r a n c e m e c h a n i s m s i m i l a r t o t h e London Food C o m m i t t e e w o u l d have t o be c r e a t e d . The a t t e m p t of t h e D e p a r t m e n t of A g r i c u l t u r e t o a c h i e v e t h i s o b j e c t i v e b r o u g h t t o l i g h t a s t r u g g l e between t h e O f f i c e of F o r e i g n A g r i c u l t u r a l R e l a t i o n s a n d t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n , two o f i t s c o n s t i t u e n t a g e n c i e s , f o r c o n t r o l o f t h e A m e r i c a n r e p r e s e n t a t i v e s on t h e i n t e r n a t i o n a l c o m m o d i t y c o m m i t t e e s o f t h e C o m b i n e d F o o d B o a r d . The d i f f i c u l t y a r o s e i n t h i s way. The f o r m e r b e c a u s e of i t s k n o w l e d g e of f o r e i g n f o o d s u p p l i e s had r e c e i v e d t h e c h a i r m a n s h i p s of m o s t of t h e s e comm i t t e e s . I t had a l s o g a i n e d c o n t r o l of t h e American s e c t i o n of t h e C o m b i n e d Food B o a r d S e c r e t a r i a t , w h i c h m e a n t t h a t , i n p r a c t i c e , a l l i n f o r m a t i o n r e g a r d i n g Board a c t i v i t i e s flowed t h r o u g h i t s o f f i c e t o t h e American a g e n c i e s and r e p r e s e n t a t i v e s . M o r e o v e r , A m e r i c a n s on c o m m o d i t y c o m m i t t e e s s i t t i n g i n London w e r e a p p o i n t e d by t h e O f f i c e of F o r e i g n A g r i c u l t u r a l Relations. Here a g a i n American a g e n c i e s were d e p e n d e n t upon t h e l a t t e r a g e n c y f o r i n f o r m a t i o n n e e d e d t o a n a l y z e and a p praise British requirements. On t h e o t h e r h a n d , t h e F o o d D i s t r i b u t i o n A d m i n i s t r a t i o n by s e c r e t a r i a l d e l e g a t i o n h a d b e e n made r e s p o n s i b l e f o r b o t h t h e a l l o c a t i o n of A m e r i c a n f o o d s u p p l i e s and f o r i n s u r i n g t h a t r e c o m m e n d a t i o n s and a g r e e m e n t s r e s u l t i n g from t h e Combined Food B o a r d c o m m o d i t y c o m m i t t e e s , a t l e a s t i n s o f a r a s t h e American members, were c o n s i s t e n t w i t h the o v e r - a l l allocations o f t h i s G o v e r n m e n t . In a c c o m p l i s h i n g t h e s e c o n d of t h e s e two o b j e c t i v e s i t w a s h a n d i c a p p e d by t h e f a c t t h a t i t w a s f o r c e d t o r e l y upon o u t s i d e r e s o u r c e s . From t h e s t a n d p o i n t o f t h e F o o d D i s t r i b u t i o n A d m i n i s t r a t i o n t h i s was a w h o l l y u n s a t i s f a c t o r y s i t u a t i o n . The D i r e c t o r , aided by h i s a b l e a s s i s t a n t , t h e C h i e f o f t h e R e q u i r e m e n t s a n d A l l o c a t i o n s C o n t r o l B r a n c h , made r e p e a t e d a p p e a l s t o t h e S e c r e t a r y f o r g r e a t e r a u t h o r i t y over i n t e r n a t i o n a l food a l l o c a t i o n s . In J a n u a r y 1943, t h e C h i e f of t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l B r a n c h u r g e d t h a t a f u n d a m e n t a l d e c i s i o n b e made o n t h e f o o d a l l o c a t i o n o r g a n i z a t i o n . He p o i n t e d o u t t h a t t h e

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s i m u l t a n e o u s p r e s e n t a t i o n of n a t i o n a l r e q u i r e m e n t s d a t a t o t h e Combined Food H o a r d and h i s own u n i t m e a n t t h a t d o m e s t i c a l l o c a t i o n s p o l i c i e s w e r e b e i n g c o n s i d e r e d by t h e i n t e r n a t i o n a l body b e f o r e t h e U n i t e d S t a t e s G o v e r n m e n t h a d had an o p p o r t u n i t y t o c l a r i f y i t s own p o s i t i o n . He a r g u e d t h a t t h e A m e r i c a n g o v e r n m e n t s h o u l d f i r s t make i t s own j u d g m e n t s on w h a t i t w o u l d do w i t h i t s s u p p l i e s and t h e n d e a l w i t h t h e C o m b i n e d Food B o a r d t h r o u g h i t s r e p r e s e n t a t i v e s on t h e i n t e r n a t i o n a l commodity c o m m i t t e e s . 3 " T h i s p o i n t o f v i e w was a c c e p t e d by t h e S e c r e t a r y o f A g r i c u l t u r e . S t e p s were t a k e n t o s u b o r d i n a t e t h e a c t i o n s of t h e Ameri c a n s on t h e i n t e r n a t i o n a l c o m m o d i t y c o m m i t t e e s t o t h e n a t i o n a l f o o d a l l o c a t i o n s m a c h i n e r y . The Food D i s t r i b u t i o n Admini s t r a t i o n was e m p o w e r e d t o s e l e c t t h e p r i n c i p a l U n i t e d S t a t e s d e l e g a t e s f o r each of t h e commodity c o m m i t t e e s d e a l i n g w i t h f o o d and f o o d p r o c e s s i n g , i n c l u d i n g t o b a c c o a n d p r o c e s s i n g . In t h e m o n t h a f t e r t h i s c h a n g e , t h e e f f e c t o f t h e " t i g h t e n i n g u p " was r e f l e c t e d i n t h e c h a r g e by t h e B r i t i s h d e l e g a t i o n t h a t when Food D i s t r i b u t i o n r e p r e s e n t a t i v e s t o o k " f i g u r e s " t o t h e C o m b i n e d Food B o a r d C o m m o d i t y c o m m i t t e e m e e t i n g s , t h e y were so i n f l e x i b l e as t o p r e c l u d e n e g o t i a t i o n s . ' ^ B r i t i s h c o n c e r n w i t h t h e c h a n g e d A m e r i c a n a t t i t u d e was a l s o d e m o n s t r a t e d by an e v e n t t h a t t o o k p l a c e i n m i d - M a r c h 1 9 4 3 . At t h a t t i m e Mr. R. H. B r a n d , t h e B r i t i s h r e p r e s e n t a t i v e t o t h e Combined Food B o a r d , h a d l e a r n e d t h r o u g h t h e n e w s p a p e r s o f o f f i c i a l U n i t e d S t a t e s r a t i o n i n g p l a n s b a s e d on new a l l o c a t i o n s w i t h r e g a r d t o m e a t s , c h e e s e and f a t s . Knowing t h a t s u c h r a t i o n i n g p r o g r a m s , i f a d o p t e d , w o u l d r e s u l t i n an i n c r e a s e i n A m e r i c a n c o n s u m p t i o n and a c o n s e q u e n t r e d u c t i o n i n t h e a m o u n t s a v a i l a b l e f o r t h e p e o p l e o f h i s c o u n t r y , he w r o t e t o h i s A m e r i c a n c o u n t e r p a r t , t h e S e c r e t a r y of A g r i c u l t u r e , a n d p r o t e s t e d a g a i n s t t h e i r a d o p t i o n . B r a n d was p a r t i c u l a r l y i r k e d by t h e f a c t t h a t h e had n o t b e e n g i v e n an a d e q u a t e o p p o r t u n i t y t o p r e s e n t t h e c a s e f o r h i s c o u n t r y . He c o m p l a i n e d t h a t " d e s p i t e t h e f a c t t h a t we h a v e b e e n i n c o r r e s p o n d e n c e f o r some w e e k s a b o u t t h e s e a l l o c a t i o n s , there has been no opportunity for me as the U.K. member of the Combined Food Board to consider and bring to y o u r notice the consequences on them of your proposed new rations [my i t a l i c s ] . " 3 3 I f such u n i l a t e r a l a c t i o n were c o n t i n u e d , argued Brand, i t w o u l d d e s t r o y much o f t h e e f f e c t i v e n e s s of t h e C o m b i n e d Food B o a r d . He c o n c l u d e d h i s l e t t e r w i t h a d e s c r i p t i o n o f h i s c o n c e p t i o n of the manner in which the Board should f u n c t i o n . In h i s w o r d s : " T h e C . F . B . i s e s s e n t i a l l y a c o o r d i n a t i n g and r e c o m m e n d i n g b o d y a n d , o f c o u r s e , t h e r i g h t of t h e U . S . G o v e r n m e n t , a s of t h e U . K . , t o d e t e r m i n e i t s p o l i c y , a s i t seems r i g h t r e m a i n s u n a f f e c t e d . N e v e r t h e l e s s , h o w e v e r , t h e y may b e i n t e r p r e t e d , t h e t e r m s o f r e f e r e n c e of t h e C o m b i n e d Food B o a r d a s l a i d down by t h e P r e s i d e n t and t h e P r i m e M i n i s t e r m o s t c e r t a i n l y c o n t e m p l a t e d t h a t t h e r e w o u l d b e t h e f u l l e s t and f r a n k e s t d i s c u s s i o n in a l l m a t t e r s of m a j o r p o l i c y a f f e c t i n g

THE REQUIREMENTS AND ALLOCATIONS OONTROL

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a l l o c a t i o n s o f f o o d s t u f f s in s h o r t s u p p l y a m o n g the U n i t e d N a t i o n s , n o t e x c l u d i n g the U . K . I n d e e d , as y o u k n o w , we h a v e a l w a y s a g r e e d and p u b l i c l y s t a t e d t h a t this is the B o a r d ' s m a j o r function. If, w h i l e c o n c e r n i n g i t s e l f w i t h m i n o r m a t t e r s , d e c i s i o n s a f f e c t i n g b o t h p a r t i e s are u n d e r t a k e n w i t h o u t its h a v i n g the o p p o r t u n i t y of j o i n t c o n s i d e r a t i o n , it s e e m s to me that the p r i m a r y p u r p o s e o f the B o a r d m u s t be p r o f o u n d ly prejudi ced . . . . In his reply the S e c r e t a r y s o u g h t to m o l l i f y h i s B r i t i s h c o l l e a g u e . P r e c i p i t a t e a c t i o n by the A m e r i c a n G o v e r n m e n t w a s j u s t i f i e d on the g r o u n d s o f e x p e d i e n c y . He e x p r e s s e d the b e lief that the s u p p l y s i t u a t i o n w i t h r e s p e c t to m e a t s , c h e e s e and fats w a s s t e a d i l y d e t e r i o r a t i n g and in v i e w of this it b e c a m e i m p e r a t i v e t h a t t h e s e i t e m s s h o u l d be b r o u g h t u n d e r i m m e d i a t e c o n t r o l . " I f t h e i r e c o n o m i c a l use w a s to b e ins u r e d , " he a s s e r t e d , " I felt o b l i g e d to e s t a b l i s h a l l o c a t i o n s for the s e c o n d q u a r t e r o f the y e a r w i t h o u t w a i t i n g for a g r e e m e n t to be reached t h r o u g h the f o r m a l C o m b i n e d Food B o a r d p r o c e d u r e s . " In his c o n c l u s i o n the S e c r e t a r y s o u g h t to p o u r oil on troubled w a t e r s by s a y i n g that the d e c i s i o n o f the A m e r i c a n G o v e r n m e n t " s t i l l leaves the q u e s t i o n o p e n as to the a l l o c a t i o n s that c a n be m a d e to y o u r G o v e r n m e n t in s u b s e q u e n t quarters."" D e s p i t e the p r o m i s e o f further c o n s u l t a t i o n s , h o w e v e r , the p r a c t i c a l i m p l i c a t i o n s of the h a r d e n e d A m e r i c a n a t t i t u d e w e r e n o t lost on the B r i t i s h G o v e r n m e n t . It w a s e v i d e n t to them that a l l o c a t i o n d e c i s i o n s a f f e c t i n g t h e i r i n t e r e s t s could b e m a d e w i t h o u t an a d e q u a t e o p p o r t u n i t y for them to p r e s e n t t h e i r c a s e . In the m o n t h s and y e a r s w h i c h f o l l o w e d they c o n tinued to press for m o r e e f f e c t i v e c o n s u l t a t i o n . M e a n w h i l e , even as t h i s d i s c u s s i o n w a s t a k i n g p l a c e , the Food D i s t r i b u t i o n A d m i n i s t r a t i o n on a lower a d m i n i s t r a t i v e level c o n t i n u e d to s t r e n g t h e n the b o n d s b e t w e e n the n a t i o n a l food a l l o c a t i o n s m a c h i n e r y and the i n t e r n a t i o n a l c o m m o d i t y c o m m i t t e e s by a p p o i n t i n g a s s o c i a t e A m e r i c a n s p o k e s m e n to the l a t t e r from the s t a f f o f the R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l B r a n c h . T h i s w a s a c c o m p a n i e d by an i m p o r t a n t i n j u n c tion from the D i r e c t o r . " I t is i m p o r t a n t that these r e p r e s e n t a t i v e s u n d e r s t a n d c l e a r l y that it is to m e t h a t they a r e r e s p o n s i b l e in c a r r y i n g on these i n t e r n a t i o n a l n e g o t i a t i o n s . " ^ ® In the s a m e o r d e r , the D i r e c t o r of F o r e i g n A g r i c u l t u r a l R e l a tions w a s a s k e d to r e m i n d the I n t e r n a t i o n a l C h a i r m e n that a p p o i n t m e n t s w e r e no l o n g e r to be m a d e by i n v i t a t i o n from thè S e c r e t a r i a t , but r a t h e r by the F o o d D i s t r i b u t i o n A d m i n i s t r a tion. T h e c o n t r o l of the A m e r i c a n s e c t i o n o f the S e c r e t a r i a t by the O f f ice of F o r e i g n A g r i c u 1 tu ra 1 Re la t i o n s w a s a n o t h e r s o u r c e o f f r i c t i o n . For the Food D i s t r i b u t i o n A d m i n i s t r a t i o n to get i n f o r m a t i o n on B r i t i s h p r o d u c t i o n , it w a s n e c e s s a r y to a p p l y to the S e c r e t a r i a t . In M a r c h 1943, the C h i e f of the R e q u i r e -

44

WARTIME FOOD PROCUREMENT AND PRODUCTION

merits and A l l o c a t i o n s C o n t r o l B r a n c h r e q u e s t e d t h a t i t s u p p l y him w i t h t h e m i n u t e s of t h e B r i t i s h A g r i c u l t u r a l P r o d u c t i o n C o m m i t t e e . He r e c e i v e d t h e m i n u t e s b u t w i t h o u t t h e a t t a c h m e n t s w h i c h c o n t a i n e d t h e b a s i c d a t a on E n g l i s h a g r i c u l t u r a l p r o d u c t i o n . So i n c e n s e d was he a t t h i s t r e a t m e n t t h a t he u r g e d t h e D i r e c t o r o f Food D i s t r i b u t i o n t o r e q u e s t t h e S e c r e t a r y of A g r i c u l t u r e t o compel t h e American e x e c u t i v e o f f i c e r o f t h e C o m b i n e d Food B o a r d S e c r e t a r i a t t o t u r n o v e r t h e comp l e t e r e c o r d t o h i m . " A g a i n , when t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n was a s k e d t o t a k e t h e l e a d i n a C o m b i n e d Food Board s t u d y of i n t e r n a t i o n a l c o n s u m p t i o n c o m p a r i s o n s , t h e h e a d o f t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l B r a n c h i n a t t e m p t i n g t o g e t b a s i c d a t a found h i m s e l f o n c e more hampered by t h e u n - c o o p e r a t i v e a t t i t u d e of t h e O f f i c e o f F o r e i g n A g r i c u l t u r a l R e l a t i o n s . In e x a s p e r a t i o n h e o n c e m o r e a d d r e s s e d a memorandum t o t h e D i r e c t o r o f Food D i s t r i b u t i o n u r g i n g t h a t a c l e a n - c u t d e c i s i o n be made on t h e s e c r e t a r i a l l e v e l a s t o w h e t h e r h i s u n i t or t h a t of t h e O f f i c e of F o r e i g n A g r i c u l t u r a l R e l a t i o n s should have primary r e s p o n s i b i l i t y for the a n a l ysis.3® T h e c a m p a i g n by memorandum w h i c h t h e C h i e f o f t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l B r a n c h c a r r i e d on r e a c h e d a h i g h p o i n t i n May 1943 when i n a t l e a s t t h r e e s e p a r a t e memor a n d a he u r g e d : ( 1 ) t h a t t h e U n i t e d S t a t e s s p e a k w i t h a s i n g l e v o i c e i n i t s d e a l i n g w i t h t h e C o m b i n e d Food B o a r d ; ( 2 ) t h a t t h i s i n t e g r a t i o n c o u l d b e s t be a c h i e v e d t h r o u g h one s t a f f ; and ( 3 ) t h a t t h e A m e r i c a n s e c t i o n of t h e C o m b i n e d Food B o a r d S e c r e t a r i a t b e made p a r t o f t h e Food D i s t r i b u t i o n Adm i n i s t r a t i o n . " U n l e s s t h i s w e r e d o n e , he w a r n e d , t h e s h a r i n g o f f o o d s u p p l i e s m i g h t be made i n t h e O f f i c e o f F o r e i g n A g r i c u l t u r a l R e l a t i o n s . T h e s e memoranda were f r u i t f u l , f o r a p p a r e n t l y i n r e s p o n s e t o t h e m , t h e D i r e c t o r of Food D i s t r i b u t i o n o r d e r e d a l l United S t a t e s r e p r e s e n t a t i v e s to the i n t e r n a t i o n a l c o m m o d i t y c o m m i t t e e s t o c l e a r a l l r e c o m m e n d a t i o n s and a g r e e m e n t s w i t h t h e a s s o c i a t e member f r o m t h e s t a f f o f t h e R e q u i r e m e n t s and C o n t r o l B r a n c h . * ® As a r e s u l t o f t h i s c h a n g e t h e A m e r i c a n s on t h e C o m b i n e d Food B o a r d w e r e b r o u g h t t o g e t h e r in a u n i f i e d d e l e g a t i o n . T h e r e a f t e r , t h e d e c i s i o n s of t h e n a t i o n a l f o o d a l l o c a t i o n s m a c h i n e r y w o u l d g u i d e them i n t h e i r n e g o t i a t i o n s w i t h t h e i r B r i t i s h c o u n t e r p a r t s on t h e Comb i n e d Food B o a r d . C o n t r o l o f t h e A m e r i c a n s e c t i o n o f t h e C o m b i n e d Food R o a r d S e c r e t a r i a t , t h e s e c o n d o b j e c t i v e o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n was n o t a c h i e v e d u n t i l a few m o n t h s l a t e r . In O c t o b e r 1943 t h e P r e s i d e n t o f t h e U n i t e d S t a t e s a n d t h e P r i m e M i n i s t e r o f E n g l a n d a n n o u n c e d t h e r e a r r a n g e m e n t o f t h e Combined Food B o a r d w h e r e b y t h e S e c r e t a r y o f A g r i c u l t u r e b e c a m e t h e n e u t r a l chairman, Canada as a m a j o r food s u p p l i e r to the U n i t e d Kingdom was a s k e d t o become an a d d i t i o n a l m e m b e r , and t h e War Food A d m i n i s t r a t o r b e c a m e t h e U n i t e d S t a t e s member. T h e l a t t e r was g i v e n t h e p o w e r t o name h i s d e p u t y on t h e r e c o n s t i t u t e d B o a r d . **

TOE REQUIREMENTS AND ALLOCATIONS CONTROL PROCESS

45

S i m u l t a n e o u s l y w i t h t h i s announcement, the War Food Admini s t r a t o r a p p o i n t e d the D i r e c t o r of Food D i s t r i b u t i o n as h i s d e p u t y to the Combined Food B o a r d and g a v e him the a u t h o r i t y t o name the American e x e c u t i v e o f f i c e r of the B o a r d . The change marked the f i n a l e x i t o f the O f f i c e of F o r e i g n A g r i c u l t u r a l R e l a t i o n s from the i n t e r n a t i o n a l a l l o c a t i o n s p i c t u r e . T h e r e a f t e r , the Food D i s t r i b u t i o n A d m i n i s t r a t i o n and i t s s u c c e s s o r s h e l d a t i g h t r e i n o v e r both the n a t i o n a l and i n t e r n a tional allocations. In the l o n g s t r u g g l e f o r ascendancy between the two a g e n c i e s , t h e r e w e r e many c l a s h e s o f p e r s o n a l i t y . T h e s e , t o be s u r e , c o u l d h a v e been r e m e d i e d by more d e c i s i v e a c t i o n on t h e p a r t o f the head o f t h e f o o d o r g a n i z a t i o n . Rut t h a t such s t e p s w e r e n o t r e a d i l y t a k e n can be u n d e r s t o o d f r o m t h e f a c t t h a t w i t h i n t h e s h o r t s p a c e o f s i x months t h e r e w e r e t h r e e d i f f e r e n t p e r s o n s a t t h e head o f t h e n a t i o n ' s f o o d p r o g r a m . ^ M o r e f u n d a m e n t a l than t h e e x i s t e n c e o f p e r s o n a l i t y d i f f e r e n c e s , h o w e v e r , was t h e q u e s t i o n o f f o o d p o l i c y . I f t h e a l l o c a t i o n o f A m e r i c a n s u p p l i e s w e r e d i s c u s s e d a t Combined Food B o a r d m e e t i n g s b e f o r e t h e A m e r i c a n G o v e r n m e n t had made up i t s mind as t o what i t w o u l d do w i t h i t s f o o d s t o c k s , t h e n t h e B r i t i s h G o v e r n m e n t t h r o u g h t h e Combined Food B o a r d w o u l d h a v e a s t r o n g hand i n t h e d i s p o s i t i o n o f U n i t e d S t a t e s f o o d s u p p l i e s t o f o r e i g n c l a i m a n t s . S i n c e i t was l a r g e l y o u r f o o d t h a t was b e i n g c o n t r i b u t e d t o t h e t o t a l f o o d s t o c k p i l e , the a t t e m p t by t h e P r i t i s h t o d i c t a t e o r a t l e a s t i n f l u e n c e i n l a r g e m e a s u r e , the a p p o r t i o n m e n t o f our f o o d s t o c k s , w o u l d h a v e been a c a s e w h e r e t h e t a i l w a g g e d t h e d o g . T h i s t h e B r i t i s h may h a v e had in m i n d , but i f t h e y d i d , t h e i r i n t e n t was f r u s t r a t e d by the a d o p t i o n o f a u n i f i e d A m e r i c a n c o n t r o l mechanism. A m e r i c a n r e p r e s e n t a t i v e s i n t h e i r n e g o t i a t i o n s w e r e bound h e n c e f o r t h by t h e d e c i s i o n s o f t h e D i r e c t o r o f Food P i s t r i b u t i o n . In the months t h a t f o l l o w e d t h e O c t o b e r r e o r g a n i z a t i o n o f the Combined Food B o a r d , t h e a d m i n i s t r a t i v e a c t i v i t i e s o f t h a t a g e n c y w e r e s t r e a m l i n e d . I t s o r g a n i z a t i o n r e g a i n e d an e v e n k e e l and by m i d - 1 9 4 4 became s t a b l e . Each member n a t i o n had i t s m e m b e r s h i p on t h e B o a r d , and in a d d i t i o n was p e r m i t ted t o s e l e c t an e x e c u t i v e and d e p u t y e x e c u t i v e o f f i c e r . The e x e c u t i v e o f f i c e r s , s a i d one memorandum, " j o i n t l y constitute t h e e x e c u t i v e o r g a n o f t h e B o a r d . "43 A s e c r e t a r y and an a s s i s t a n t s e c r e t a r y c h a r g e d w i t h k e e p i n g t h e m i n u t e s and d o c u ments c o m p l e t e d the c e n t r a l S e c r e t a r i a t o f t h e B o a r d . B e p r e s e n ta t i on on t h e c o m m o d i t y c o m m i t t e e s was f o r m a l i z e d . Each c o m m i t t e e c o n s i s t e d o f a c h a i r m a n , t h r e e members a p p o i n t e d by t h e i r r e s p e c t i v e g o v e r n m e n t s , and a s e c r e t a r y and a s s i s t a n t s e c r e t a r y a p p o i n t e d by t h e e x e c u t i v e o f f i c e r s . C a n a d a , the U n i t e d Kingdom and t h e U n i t e d S t a t e s , respectivel y , t h r o u g h t h e I n t e r - d e p a r t m e n t a l C o m m i t t e e on Food A c q u i r e m e n t s , the London Food C o u n c i l and t h e Food B e q u i r e m e n t s and A l l o c a t i o n s C o m m i t t e e , had c e n t r a l mechanisms f o r the r e v i e w

46

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THE REQUIREMENTS AND ALLOCATIONS CONTROL PROCESS

47

p u r p o s e o f p r o v i d i n g a w o r k i n g b a s i s f o r t h e g u i d a n c e of t h e C o m b i n e d Food R o a r d . . . i n t h e a l l o c a t i o n o f f o o d s i n s h o r t s u p p l y . " 4 ' Not o n l y was t h e b u r d e n t o be s h a r e d , b u t a l s o w h e r e v e r p o s s i b l e c o m p e t i t i v e b u y i n g w a s t o be a v o i d e d by t h e d e v e l o p m e n t of i n t e r - n a t i o n a g r e e m e n t s . I n s h o r t , t h e B o a r d i n i t s a d v i s o r y and p l a n n i n g c a p a c i t y t o member g o v e r n m e n t s d i d much t o b r i n g a b o u t a m o r e c o n c e r t e d e f f o r t . Allocation

Procedure

The a l l o c a t i o n r e p r e s e n t e d a p o l i c y d e c i s i o n on how a v a i l a b l e s u p p l i e s o f f o o d s t u f f s w o u l d b e d i v i d e d among t h e v a r i o u s c l a i m a n t s . Two p r i n c i p a l k i n d s of a l l o c a t i o n s e x i s t e d : ( 1 ) t h e i n t e r n a t i o n a l a l l o c a t i o n which recommended t h e d i s t r i b u t i o n o f w o r l d s u p p l i e s among t h e v a r i o u s n a t i o n s , a n d (2) the n a t i o n a l a l l o c a t i o n which d i v i d e d U n i t e d S t a t e s s u p p l i e s among c l a i m a n t s in p r o p o r t i o n t o t h e i r r e l a t i v e c o n t r i b u t i o n t o t h e w a r e f f o r t . ' ® A l l o c a t i o n s p o l i c y was d e v e l oped t h r o u g h the f o l l o w i n g s t e p s : ( ! ) a s s e m b l y of food r e q u e s t s ; ( 2 ) a d j u s t m e n t of t h e s e in terms of s u p p l i e s ; (3) r e s o l u t i o n o f c o n f l i c t s among a g e n c i e s and n a t i o n s ; ( 4 ) f o r m u l a t i o n of a l l o c a t i o n s ; and ( 5 ) f i n a l l y , t h e a u d i t o f t h e a l l o c a t i o n a g a i n s t t h e a c t u a l p r o c u r e m e n t by t h e c l a i m a n t agency. A l l c l a i m a n t a g e n c i e s p r e s e n t e d t h e i r r e q u i r e m e n t s i n two w a y s : f i r s t , f o r a s e r i e s of f o u r t h r e e - m o n t h p e r i o d s , a n d s e c o n d , on an a n n u a l b a s i s f o r two y e a r s i n a d v a n c e . T h e s e r e q u i r e m e n t s w e r e of two m a i n k i n d s : t h o s e w h i c h w e r e g l o b a l in c h a r a c t e r , r e p r e s e n t i n g t h e food n e e d s of c l a i m a n t s from w o r l d s o u r c e s ; and t h o s e which s t a t e d t h e n e e d s of U n i t e d S t a t e s a g e n c i e s f o r s u p p l i e s f r o m d o m e s t i c s o u r c e s . The f o r mer w e r e s u b m i t t e d t o t h e C o m b i n e d Food R o a r d a n d t h e l a t t e r were s e n t t o t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l B r a n c h . 152 When a l l t h e r e q u i r e m e n t s w e r e s u b m i t t e d , t h e t o t a l d r a i n on U n i t e d S t a t e s a n d w o r l d s u p p l i e s w e r e a s c e r t a i n e d . T h e n the Supply E s t i m a t e s C o m m i t t e e s f o r each commodity p r o c e e d e d t o c h e c k on a l l a v a i l a b l e s o u r c e s o f i n f o r m a t i o n on s u p p l i e s e i t h e r a v a i l a b l e or in p r o s p e c t . E s t i m a t e s of c r o p p r o d u c t i o n , i m p o r t s , food s t o c k s in s t o r a g e were c a l c u l a t e d . A f t e r t h i s a t r i a l b a l a n c e was m a d e , t h a t i s , t h e r e q u i r e m e n t s f o r e a c h c o m m o d i t y was b a l a n c e d a g a i n s t t h e p r o b a b l e s u p p l y . Where s u p p l i e s w e r e i n e x c e s s o f d e m a n d , n o a l l o c a t i o n w a s m a d e . Rut i f s u p p l i e s w e r e s h o r t , t h e c l a i m a n t s w e r e a s k e d t o r e e x a m i n e t h e i r n e e d s a n d make a d j u s t m e n t s . A s i m i l a r p r o c e d u r e was f o l l o w e d by t h e c o m m o d i t y c o m m i t t e e s o f t h e Comb i n e d Food B o a r d w i t h r e s p e c t t o c o m m o d i t i e s f r o m w o r l d supplies. Following t h i s i n i t i a l d e t e r m i n a t i o n , the t r i a l balance s h e e t s and a d j u s t m e n t s w e r e r e v i e w e d by Food R e q u i r e m e n t s a n d A l l o c a t i o n s s u b - c o m m i t t e e s w h i c h , a s we h a v e i n d i c a t e d , in-

48

WARTIME FOOD PROCUREMENT AND PRODUCTION

e l u d e d in t h e i r membership not o n l y commodity s p e c i a l i s t s but a l s o r e p r e s e n t a t i v e s of the v a r i o u s c l a i m a n t a g e n c i e s . A t t h i s p o i n t the r e l a t i v e need o f the v a r i o u s c l a i m a n t s w a s once more r e v i e w e d and a g r e e m e n t was s o u g h t among them a s t o the d i v i s i o n of e x i s t i n g s t o c k s of f o o d . A t t h i s s t a g e the Food R e q u i r e m e n t s and A l l o c a t i o n s s u b - c o m m i t t e e s a l s o c o n s i d e r e d in d e t a i l the g l o b a l r e q u i r e m e n t s . C o n s u l t a t i o n s w e r e h e l d w i t h the i n t e r n a t i o n a l commodity c o m m i t t e e s of the Comb i n e d Food B o a r d . The n e t r e s u l t s of t h e s e c o n f e r e n c e s was a " U . S . P o s i t i o n , " t h a t i s a d e c i s i o n a s to the amounts o f U n i t e d S t a t e s food t h a t was t o be a p p o r t i o n e d among both d o m e s t i c and f o r e i g n c l a i m a n t s . U n i t e d S t a t e s members of the Combined Food Board commodity c o m m i t t e e s were a l s o i n s t r u c t e d a s t o what the p o s i t i o n of t h i s c o u n t r y w a s t o be in r e g a r d t o the a p p o r t i o n m e n t o f w o r l d s u p p l i e s . ^ ' T h e s e t e n t a t i v e a l l o c a t i o n s by t h e s u b - c o m m i t t e e s w e r e t h e n s u b m i t t e d t o t h e f u l l Food R e q u i r e m e n t s and A l l o c a t i o n s Comm i t t e e w h i c h e i t h e r recommended t h e a p p r o v a l o f t h e a l l o c a t i o n and t h e U n i t e d S t a t e s p o s i t i o n o r r e t u r n e d i t t o t h e s u b c o m m i t t e e f o r f u r t h e r c o n s i d e r a t i o n . Upon a p p r o v a l by t h e f u l l c o m m i t t e e , t h e U n i t e d S t a t e s member was t h e n e m p o w e r e d t o n e g o t i a t e a c c o r d i n g t o i t s terms w i t h the Combined Food P o a r d c o m m o d i t y c o m m i t t e e s . When t h e l a t t e r came t o an a g r e e m e n t , t h e i r r e c o m m e n d a t i o n was s u b m i t t e d t o t h e C o m b i n e d Food P o a r d w h i c h i n t u r n s e n t t h e r e c o m m e n d a t i o n t o t h e member governments for concurrence. F i n a l l y , a f t e r a l l o f t h e s e n e g o t i a t i o n s had r e s u l t e d i n a g r e e m e n t , b o t h t h e n a t i o n a l a l l o c a t i o n and t h e i n t e r n a t i o n a l a l l o c a t i o n recommended by t h e C o m b i n e d F o o d P o a r d w e r e s u b m i t t e d to the Foods R e q u i r e m e n t s Committee f o r f i n a l a p p r o v a l . When t h i s l a t t e r b o d y p a v e i t s a s s e n t , t h e a l l o c a t i o n w a s s e n t t o t h e W a r Food A d m i n i s t r a t o r and when s i g n e d by him i t b e c a m e t h e e s t a b l i s h e d p o l i c y o f t h i s G o v e r n m e n t and member g o v e r n m e n t s of t h e C o m b i n e d Food P o a r d . F o o d s f r o m b o t h d o m e s t i c and f o r e i g n s o u r c e s w e r e t h e n d i v i d e d among a l l o f t h e c l a i m a n t s . C o p i e s of the approved a l l o c a t i o n s were forwarded t o e a c h a g e n c y and n a t i o n , and c o n s t i t u t e d a f o o d c r e d i t a g a i n s t w h i c h p u r c h a s e s c o u l d be made to t h e e x t e n t o f t h e f o o d a l l o t m e n t . ' * A l l o c a t i o n s w e r e made f o r a t w e l v e - m o n t h a d v a n c e p e r i o d , b u t s i n c e t h e y w e r e d e t e r m i n e d on t h e b a s i s o f e s t i m a t e d p r o d u c t i o n and s u p p l i e s , t h e y w e r e made f i r m f o r o n l y one q u a r t e r . A l l f i r m a l l o c a t i o n s had t o be met w h i c h , i n o t h e r w o r d s , m e a n t t h a t the c l a i m a n t c o u l d e x p e c t , barring u n f o r e s e e n e v e n t u a l i t i e s , the f o o d s a s s i g n e d to i t . Allocat i o n f o r each food was a c o n t i n u a l p r o c e s s . E v e r y t h r e e m o n t h s t h e s u p p l y w a s r e e s t i m a t e d and a l l o t m e n t s w e r e r e a p p o r t i o n e d in l i n e w i t h e x p e c t e d food s u p p l y . " A l l o c a t i o n s were c l o s e l y r e l a t e d to the procurement p r o c e s s . As t h e d i v i s i o n o f f o o d t o o k p l a c e p r o c u r e m e n t p l a n s w e r e b u i l t a r o u n d t h e a l l o c a t i o n f o r e a c h c o m m o d i t y . No p u r c h a s e i n e x c e s s o f an a l l o c a t i o n was p e r m i t t e d u n l e s s an e m e r g e n c y

THE REQUIREMENTS AND ALLOCATIONS CONTROL PROCESS

49

a u t h o r i z a t i o n was o b t a i n e d . F i n a l l y , a s a c t u a l p u r c h a s e s w e r e made, a l l o c a t i o n a u d i t s r e l a t e d each c l a i m a n t ' s a c t u a l p r o curement to his a l l o c a t i o n . ^ A l l o c a t i o n s «ere a l s o c l o s e l y concerned with the production a n d d i s t r i b u t i o n p r o c e s s . E a c h m a j o r f o o d i t e m when a l l o c a t e d r e q u i r e d p r o d u c t i o n programs which began a t the farm. Once t h e f o o d w a s p r o d u c e d , i t was g u i d e d t h r o u g h t h e e n t i r e d i s t r i b u t i v e p r o c e s s by m e a n s o f w a r f o o d a n d r a t i o n i n g o r d e r s . T h e c i v i l i a n a l l o c a t i o n - - t h a t i s , i t s s h a r e of t h e t o t a l food s t o c k p i l e - - w a s e n s u r e d through the i s s u a n c e of r a t i o n ing d i r e c t i v e s t o the O f f i c e of P r i c e A d m i n i s t r a t i o n . With t h e s e as a f r a m e of r e f e r e n c e the l a t t e r agency p r o c e e d e d , e i t h e r t o a d j u s t p o i n t v a l u e s o r t o f o r m u l a t e new r a t i o n i n g orders as r e q u i r e d . To a c h i e v e t h i s i n t e g r a t i o n o f p o l i c y d u r i n g t h e f i s c a l y e a r 1944 a b o u t 1 , 2 0 0 r e q u i r e m e n t s d o c u m e n t s from v a r i o u s claimants were considered; s e v e n t y - f i v e a l l o c a t i o n s c o v e r i n g o v e r 2 0 0 c o m m o d i t i e s w e r e s i g n e d by t h e War Food A d m i n i s t r a t o r ; t h e U n i t e d S t a t e s F o o d R e q u i r e m e n t s a n d A l l o c a t i o n s Comm i t t e e and i t s p r e d e c e s s o r o r g a n i z a t i o n s met t h i r t y times; t h e Combined Food H o a r d met t w e n t y t i m e s ; and t h e n u m b e r o f Combined Food B o a r d r e c o m m e n d a t i o n s i n w h i c h t h i s G o v e r n m e n t c o n c u r r e d was t w e n t y - f i v e . For e a c h a l l o c a t i o n d i s c u s s e d d u r i n g t h e y e a r b o t h a t t h e n a t i o n a l and i n t e r n a t i o n a l l e v e l t h e commodity c o m m i t t e e s and s u b - c o m m i t t e e s h e l d from two t o t e n p r e l i m i n a r y m e e t i n g s f o r the p u r p o s e of f o r m u l a t i n g recommended a l l o c a t i o n s . ^ Achievements

and

Accomplishments

The a l l o c a t i o n r e p r e s e n t e d t h e p l a n n i n g p h a s e o f t h e f o o d program. Most of the i m p o r t a n t war food o p e r a t i o n s were b a s e d i n l a r g e m e a s u r e upon t h i s d i v i s i o n of f o o d s t u f f s . The t o t a l of a l l t h e r e q u i r e m e n t s s u b m i t t e d by c l a i m a n t s was t h e f o u n d a t i o n o f p r o d u c t i o n p r o g r a m s . F i n a l a l l o c a t i o n s s i g n e d by t h e War Food A d m i n i s t r a t o r f o r m e d t h e b a s i s o f p r o c u r e m e n t , food o r d e r s , s t o r a g e and o t h e r c o n t r o l s . Both t h e l i m i t s and t h e g o a l s o f f o o d p r o c u r e m e n t w e r e s e t by t h i s War F o o d A d m i n i s t r a t i o n p o l i c y d e c i s i o n with r e s p e c t to the a p p o r t i o n m e n t of f o o d s tu i f s . I n e s s e n c e t h e a l l o c a t i o n was a s t a t i s t i c a l g u i d e t o f o o d p o l i c y . To b e e f f e c t i v e , i t w a s e s s e n t i a l t h a t a l l claimants g i v e t o t h e War F o o d A d m i n i s t r a t i o n f u l l i n f o r m a t i o n on t h e i r food s t o c k s . O t h e r w i s e t h e d i f f e r e n c e b e t w e e n t h e a m o u n t s a l l o c a t e d a n d u s e d c o u l d n o t be g a u g e d . T h e r e c o r d s h o w s t h a t a l l of the c l a i m a n t s except the m i l i t a r y s e r v i c e s complied w i t h t h e i n f o r m a t i o n r e q u e s t s o f t h e War Food A d m i n i s t r a t i o n . T h e a r m e d s e r v i c e s , h o w e v e r , r e f u s e d t o g i v e d a t a on t h e f o o d s t o c k s w h i c h i t h e l d . ' ® I t e s t a b l i s h e d i t s own r e q u i r e m e n t s a n d r a r e l y a c c e p t e d l e s s t h a n i t a s k e d f o r . T h e A n d e r s o n Comm i t t e e c h a r g e d t h a t t h e armed s e r v i c e s had f a i l e d by a b o u t

50

WARTIME POOD PROCUREMENT A N D PRODUCTION

800 million pounds in utilizing the allocations made to it by the War Food Administration. As a result food was diverted from other essential services to the military despite the fact that the latter did not need it.^' Throughout the war the armed services consistently refused to change its practices. Only a congressional investigation could have induced it to change. Such investigations were rare, often taking place after maldistribution had occurred. Despite the increased demand and the rigid action on the part of the military, the civilian fared rather well. His average level of consumption of the pre-war years was maintained during the war. The civilian consumption of major food items is shown in Table 1. When international allocations became necessary, the War Food Administration, through its Food Requirements and Allocations Committee, cleared the proposed international recommendation with interested American agencies before reaching a final decision. The majority of the international shortages, necessitating international allocation, resulted from the loss of Allied sources of supply to Axis nations. Thus countries normally supplying 9 5 per cent of the rice entering world trade channels were overrun by the Japanese, leaving only the United States, Brazil and Egypt as major suppliers. But the Combined Food Board through its rice committee, was able to formulate plans for the channelling of rice to the most essential users. Production and distribution based on international allocations were also undertaken for other food items in short supply. Fish production, for example, was hampered by both a shortage of manpower and the obstacle of naval warfare. But under a program developed by a Combined Food Board allocation, this food staple was channelled to the low-income countries. By its terms the principal producing countries pledged to keep their exports flowing to the countries normally requiring the product. Importing countries likewise agreed to keep their allocations and pledged themselves to prohibit reexport to other countries. Again, the acute shortage of commercial and edible fats and oils resulting from the fall of the Philippines and the Netherlands East Indies led to measures for dividing the remaining supplies and for increasing production in other areas. Consumption was restricted and huge increases in the production of oil-bearing materials wore undertaken. Finally to prevent inflationary competition, Combined Food Board allocations sought to achieve agreement among nations on the coordination of purchases. In the buying of canned meats, for example, the British Ministry of Food was designated as the exclusive purchaser of canned beef in South America. Allocations of this product were then made to the United Kingdom, the United States, the Soviet Union, Canada and the Union of South Africa.

Table APPROXIMATE

CONSUMPTION

EQUIVALENT 1945

Commodity

BY

AS

Dairy products, excluding butter Eggs

F a t s and o i l s , cluding fats bu t t e r

sweet

Citrus fruit toma t o e s

and

L e a f y g r e e n and vegetables

products

in

tea,

1935-39

THE

THE

1935-1939

RETAIL YEARS

WEIGHT

1941-

AVERAGE

A v e r a g e Lbs. 1942 1941 1943

1944

1945

386

401

419

448

458

471

36

38

38

42

42

48

137

154

153

164

168

166

66

70

66

67

66

60

16

16

19

18

16

17

140

139

140

145

140

138

90

99

101

104

115

118

99

104

119

116

121

133

225

238

230

208

226

239

197

194

199

209

197

198

110

116

106

99

108

92

16

18

15

13

16

17

yellow

Other vegetables f ru i t s

Coffee, cocoa

WITH

CAPITA. FDR

inand

P o t a t o e s and pota toes

S u g a r s and

PER

and

Dry b e a n s and p e a s , nuts, soya p r o d u c t s

Grain

FOOD

FOOD G R O U P S

COMPARED

Group

Meats, p o u l t r y , fish

OF

MAJOR

1

syrups

and

and

S o u r c e : U . S . D e p a r t m e n t of A g r i c u l t u r e , the United States, 120.

Consumption

of

Food

52

WARTIME FOOD PROCUREMENT AND PRODUCTION

Many more e x a m p l e s c o u l d be c i t e d . Hut the a l l o c a t i o n s p r o c e s s , h o w e v e r cumbersome i t m i g h t a p p e a r , was v a l u a b l e a t l e a s t i n one r e s p e c t . I t p r o v i d e d a common forum f o r the a p p o r t i o n m e n t o f b o t h n a t i o n a l and i n t e r n a t i o n a l s t o c k s o f f o o d . I t p r o v i d e d a p l a n o f a c t i o n . Based upon t h i s d i v i s i o n the f o o d s u p p l i e s o f the U n i t e d N a t i o n s became a common p o o l from which each drew in a c c o r d a n c e w i t h i t s need and i t s r e l a t i v e c o n t r i b u t i o n t o the war e f f o r t . ® 0

CHAPTER

FOOD Beginnings

of

IV

PROCUREMENT

Procurement

CONTROLS

Controls

S h o r t l y a f t e r t h e E u r o p e a n war b e g a n , t h e P r e s i d e n t established a liaison committee within the Treasury Department c o n s i s t i n g of t h e D i r e c t o r of t h e P r o c u r e m e n t D i v i s i o n of t h a t a g e n c y a n d t h e p u r c h a s i n g h e a d s o f t h e Army a n d N a v y . I t s p u r p o s e was t w o f o l d : t o a i d f o r e i g n g o v e r n m e n t s in obtaini n g n e e d e d s u p p l i e s , a n d t o m i n i m i z e compe t i t i on a m o n g t h e m a n d t h e Ame r i c a n a g e n c i e s f o r t h e w a r ma t e r i a l s a v a i l a b l e in th i s coun t r y . To t h e commi t t e e c a m e a c c r e d i t e d r e p r e s e n t a t i v e s o f foreign g o v e r n m e n t s w i t h s t a t e m e n t s of t h e i r r e q u i r e m e n t s and lists of c o n t r a c t s t h a t t h e y d e s i r e d t o l e t in the U n i t e d States. B e f o r e c o m m i t t e e a p p r o v a l was g r a n t e d , h o w e v e r , a r e v i e w was made in o r d e r t o d e t e r m i n e w h e t h e r o r n o t t h e p r o p o s e d purc h a s e s w o u l d i n t e r f e r e w i t h o u r own r e a r m a m e n t p r o g r a m . * T h e c o m m i t t e e f u n c t i o n e d s o s u c c e s s f u l l y t h a t by t h e e n d o f 1 9 4 0 i t s head was a b l e t o r e p o r t t o t h e P r e s i d e n t t h a t i t had d e v e l o p e d " a n i m p o r t a n t s y s t e m of c o n t r o l s o v e r f o r e i g n purchasi n g . 1,2 S i m i l a r e f f o r t s t o o b t a i n t h e c o o r d i n a t i on o f f e d e r a l pu r c h a s i n g a l s o took p l a c e . The r e c o n s t i t u t i o n of t h e A d v i s o r y Commission to the C o u n c i l of N a t i o n a l Defense in the spring o f 1 9 4 0 was f o l l o w e d a f e w m o n t h s l a t e r by t h e a d d i t i o n o f a n o f f i c e f o r the C o o r d i n a t i o n of N a t i o n a l D e f e n s e P u r c h a s e s . ^ A C o o r d i n a t o r w a s p l a c e d i n c h a r g e o f t h e new o f f i c e a n d armed w i t h a u t h o r i t y to f o r m u l a t e recommendations f o r the improvement of t h e p r o c u r e m e n t p r a c t i c e s of f e d e r a l agencies. T h r o u g h o u t t h e b a l a n c e of the y e a r 1940 t h e C o o r d i n a t o r worked h a r d t o e s t a b l i s h b e t t e r p u r c h a s e p r a c t i c e s among g o v e r n m e n t a l a g e n c i e s . E a r l y i n S e p t e m b e r , he was g i v e n t h e power t o r e v i e w c o n t r a c t s l e t by f e d e r a l d e p a r t m e n t s in a c c o r d a n c e w i t h p r i n c i p l e s f o r m u l a t e d by t h e Advi s o r y Commiss i on. The u s e of t h i s a u t h o r i t y e n a b l e d t h e C o o r d i n a t o r t o make a v e r y real impact upon p r o c u r e m e n t p r o c e d u r e s , e s p e c i a l l y t h o s e employed by t h e Army a n d N a v y . * P e r h a p s t h e m o s t s i g n a l s u c c e s s e n j o y e d by t h e C o o r d i n a t o r was h i s a c h i e v e m e n t i n m o d e r n i z i n g t h e f o o d - b u y i n g practices of t h e Q u a r t e r m a s t e r C o r p s . U n t i l t h e war had g o t t e n i n t o full

54

WARTIME FOOD PROCUREMENT AND PRODUCTION

swing, the Army's food procurement problem had been a relatively simple matter. Food purchases for the approximately 150,000 men were made in local markets by the 130 quartermaster depots scattered throughout the country. Only general attention had been paid to standardization and the development of food specifications. However, in July 1940, with the advent of a protective force of well over a million men, the Army's food purchasing changed radically almost overnight. Food had to be bought in tremendous quantities and on the basis of well-developed standards. T o this problem the Coordinator of National Defense Purchases, with the cooperation of the War Department, addressed his efforts. Centralized buying was set up through zone purchasing offices located throughout the country in strategic areas with due regard for adequate markets and center^ of troop population.^ In addition a Food Procurement Advisory Committee was set up consisting of representatives of the industry and the Quartermaster General. As a result of the meetings of this committee, the Army agreed to observe the following practice: (1) competitive bidding would be followed; (2) any responsible vendor would be eligible to submit bids; (3) purchases of supplies in so far as possible would be made f.o.b. destination point; and (4) inspection of all goods would be made at the point of origin.** Later the Office of Production Management through its Division of Defense Purchases assisted the Army in a similar fashion. In June 1941 it submitted an analysis of the major weaknesses of the Army's dairy products procurement program showing that: (1) there was a lack of buying coordination between principal buying points which had created a competitive situation; (2) post quartermasters were unable to select grades; (3) in the absence of a uniform system of inspection, shippers tended to substitute inferior grades.^ T o remedy this state of affairs, it was proposed that the Army establish twenty-nine market centers with Chicago as the headquarters. In each of the centers other than Chicago, a marketing specialist served as a buyer-inspector and kept in constant touch with the sales offices of the camps in his area. Sub-headquarters were to be located in San Francisco and New York to buy on instructions from the central office. The plan was inaugurated during the first weeks in July for the 5th and 6th Corps Areas.® Coordination of national defense purchases was continued by the War Production Board through its Procurement Policy Division. When the Secretary of Agriculture received responsibility for food management, the burden of improving food purchasing methods was assumed by the Inter-Agency Committee for Procurement Coordination. The principles for the review of purchase contracts and the use of industry advisory committees furnished valuable precedents for the new inter-departmental commi ttee.

FOOD PROCUREMENT CONTROLS Food

as a Defense

55

Article

G e r m a n y ' s m i l i t a r y s u c c e s s e s in the spring and s u m m e r of 1940 made B r i t a i n ' s s t r a t e g i c p o s i t i o n p r e c a r i o u s . C u t off from her E u r o p e a n s o u r c e s of food supplies, faced w i t h the threat of i n v a s i o n , and with her armies still feeling the blows suffered at D u n k e r q u e , B r i t a i n was d a n g e r o u s l y w e a k e n e d By late 1940 it w a s e v i d e n t that she would require m o n e t a r y , and perhaps m i l i t a r y a s s i s t a n c e , if she were- to survive.® In J a n u a r y 1941 the P r e s i d e n t in a S t a t e of the U n i o n m e s sage appealed to C o n g r e s s for more aid to Britain. In respons to the p r e s i d e n t i a l plea, identical d e f e n s e - a i d bills were in troduced into b o t h h o u s e s of C o n g r e s s . For the a g r i c u l t u r a l i n t e r e s t s this w a s a chance to press for the i n c l u s i o n of food and fibers as part of the defense a r t i c l e s that w e would send to E n g l a n d . In this e n d e a v o r the farm interests were greatly aided by C h e s t e r D a v i s , A g r i c u l t u r a l A d v i s e r of the N a t i o n a l D e f e n s e A d v i s o r y C o m m i s s i o n . W h i l e debate in C o n g r e s s on the LendL e a s e m e a s u r e w a s b e i n g c o n d u c t e d , D a v i s p r i v a t e l y u r g e d the P r e s i d e n t to m a k e sure that food and fiber items were included w i t h i n the m e a n i n g of the term " d e f e n s e a r t i c l e " as defined in the bill.10 Later he w r o t e to an A m e r i c a n official in close touch w i t h the B r i t i s h , d e s c r i b i n g the r e a s o n why a g r i c u l t u r a l s u r p l u s e s were c a u s i n g so much grief for the A m e r i c a n f a r m e r . H Still later D a v i s , in an a d d r e s s to a farm group, proposed that the L e n d - L e a s e bill be used to e n a b l e th U n i t e d K i n g d o m to take its " n o r m a l p r o p o r t i o n of a g r i c u l t u r a l c o m m o d i t i e s from this country. A similar c o n c e r n a b o u t the problem of a g r i c u l t u r a l surpluses was e x p r e s s e d in C o n g r e s s . Farm S e n a t o r s and R e p r e s e n t a t i v e s m a d e repeated e f f o r t s to define the term " d e f e n s e arti c l e " to include a s p e c i f i c reference to a g r i c u l t u r a l c o m m o d i ties. A fairly good e x a m p l e of this s e n t i m e n t can be gleaned from the following e x c h a n g e b e t w e e n R e p r e s e n t a t i v e C a n n o n of M i s s o u r i and the C h a i r m a n of the H o u s e Foreign R e l a t i o n s C o m mittee : Mr. C a n n o n : I am w o n d e r i n g if the p r o v i s i o n s of the bill are to be i n t e r p r e t e d as including a l s o the p r o d u c t s of agricul ture as well as those of labor or industry. M r . B l o o m : T h e g e n t l e m a n is c o r r e c t in so u n d e r s t a n d i n g . It does so p r o v i d e in the bill. Mr. C a n n o n : ... it is certain then that the G o v e r n m e n t u n d e r this a u t h o r i z a t i o n w i l l send abroad not only the p r o d u c t s o our p l a n t s and factories, but vast q u a n t i t i e s of food, feed and fiber grown on the A m e r i c a n f a r m s . ^ The H o u s e and S e n a t e m a n a g e r s of the bill took the p o s i t i o n that n o t h i n g w o u l d be added to it by the specific m e n t i o n of a g r i c u l t u r a l c o m m o d i t i e s . S e n a t o r Parkley e x p r e s s e d the opinion that it w a s " u t t e r l y r i d i c u l o u s to a s s u m e that the P r e s i dent of the U n i t e d S t a t e s is going outside of the U n i t e d

56

WARTIME

F O O D PPOCi;RFVENT A N D

PRODUCTION

S t a t e s to buy a g r i c u l t u r a l p r o d u c t s to s u p p l y as d e f e n s e a r t i c l e s . " ^ But the farm a d h e r e n t s p e r s i s t e d and f i n a l l y a d m i n i s t r a t i o n l e a d e r s w e a k e n e d . T h e term " d e f e n s e a r t i c l e " w a s d e fined to m e a n " a n y a g r i c u l t u r a l , i n d u s t r i a l or o t h e r c o m m o d i t y or a r t i c l e for d e f e n s e . " 1 ^ T h e d e f e n s e - a i d m e a s u r e c o n t a i n i n g this a m e n d m e n t w a s a p p r o v e d by both h o u s e s and s e n t to the President.K Location

of

the Food

Purchase

Function

P r o s p e c t i v e p a s s a g e of the L e n d - l e a s e m e a s u r e r a i s e d the p r o b l e m of a g e n c y r e s p o n s i b i l i t y for the food p u r c h a s e funct i o n . T h e d e b a t e in C o n g r e s s w a s a c c o m p a n i e d by a p r i v a t e c a m p a i g n by the A g r i c u l t u r a l A d v i s e r to a s s u m e m o r e d i r e c t s u p e r v i s i o n o v e r food m a n a g e m e n t . In p a r t this s t e p may h a v e r e p r e s e n t e d a d e s i r e to a s s i s t f u r t h e r the A m e r i c a n f a r m e r and the d e f e n s e e f f o r t . In p a r t it may h a v e r e s u l t e d from the p r e s s u r e s of his a i d e s for m o r e o p e r a t i n g p o w e r s . H o w m u c h o t h e r m o t i v e s p l a y e d a part is d i f f i c u l t to s a y . W e d o k n o w , h o w e v e r , that the A g r i c u l t u r a l A d v i s e r did press for an enl a r g e m e n t of his p o w e r s . T h e b a s i s for the later r e q u e s t of the A g r i c u l t u r a l A d v i s e r for a d d i t i o n a l food p o w e r s can be traced to a m e m o r a n d u m add r e s s e d to D a v i s by one of his a i d e s . It n o t e d the L e n d - L e a s e bill was u n d e r c o n s i d e r a t i o n by C o n g r e s s and p r o p o s e d that all " i t e m s of food w h i c h are c o v e r e d by this l e g i s l a t i o n [[.end-Lease] s h o u l d be a d m i n i s t e r e d by an O f f i c e of Food S u p p l y . " 1 7 It u r g e d , f u r t h e r , that D a v i s b e g i v e n c h a r g e o f the new office. T h e p r o p o s e d O f f i c e of Food S u p p l y w a s to p e r f o r m the foll o w i n g tasks: ( 1 ) the r e v i e w of all food p u r c h a s e c o n t r a c t s ; ( 2 ) the f o r m u l a t i o n o f all p o l i c i e s on the p r o d u c t i o n and dist r i b u t i o n of food; ( 3 ) the m a i n t e n a n c e of s t a t i s t i c s on fore i g n and d o m e s t i c d e m a n d and s u p p l y ; and ( 4 ) the p u r c h a s e of all food items for L e n d - L e a s e . In a d d i t i o n , " t h e O f f i c e of F o o d S u p p l y s h o u l d g i v e c o n s i d e r a t i o n to the ' b e n e f i t s ' w h i c h m i g h t be o b t a i n e d in e x c h a n g e for food. T h i s w o u l d i n v o l v e c l o s e c o r r e l a t i o n o f the a c t i v i t i e s of O F S w i t h the a g e n c y e s t a b l i s h e d to h a n d l e L e n d - L e a s e o p e r a t i o n s . " 1 ® It w a s o b v i o u s to the w r i t e r of the m e m o r a n d u m that many of the f u n c t i o n s o u t l i n e d for the n e w o f f i c e w e r e a l r e a d y b e i n g p e r f o r m e d by the D e p a r t m e n t o f A g r i c u l t u r e . He c o n c e d e d that it w o u l d h a v e b e e n p o s s i b l e to obtain u n i f i e d e f f o r t by the e s t a b l i s h m e n t of a s e p a r a t e d i v i s i o n w i t h i n the D e p a r t m e n t of A g r i c u l t u r e . B u t to be e f f e c t i v e " s u c h a d i v i s i o n w o u l d need the wholehearted support of the Secre tary of Agriculture [my i t a l i c s ] . " 1 ® S u c h s u p p o r t , by i m p l i c a t i o n at l e a s t , did not e x i s t for the m e m o r a n d u m c o n c l u d e d w i t h a r e c o m m e n d a t i o n for a separate office. T h e fact that t h e p r o p o s a l m i g h t b r i n g a b o u t a c l a s h w i t h the D e p a r t m e n t of A g r i c u l t u r e and thus e n d a n g e r its s u c c e s s

FOOD PROCUREMENT

CONTROLS

57

led to a m o d i f i c a t i o n o f the original m e m o r a n d u m . N o w it was a d m i t t e d that an O f f i c e of Food Supply could c o n c e i v a b l y function w i t h i n the D e p a r t m e n t o f A g r i c u l t u r e , but this concession w a s h e d g e d by n e w requirements. If the new o f f i c e were located in the latter d e p a r t m e n t , it should b e granted a l m o s t c o m p l e t e a u t o n o m y . An A d m i n i s t r a t o r aided by an advisory c o m m i t t e e c o m p o s e d of the heads of the principal b u r e a u s w i t h i n the D e p a r t m e n t w a s to a d m i n i s t e r food o p e r a t i o n s . The powers of the S e c r e t a r y of A g r i c u l t u r e with respect to the new o f f i c e were limited by the r e q u i r e m e n t " t h a t the recomm e n d a t i o n s of the A d m i n i s t r a t o r (which are approved by a maj o r i t y o f the A d v i s o r y C o m m i t t e e ) will be carried out by the D e p a r t m e n t . " In m a t t e r s relating to d e f e n s e the new office w a s to b e e m p o w e r e d to act for the S e c r e t a r y . ® A c t u a l l y the new c h a n g e s r e p r e s e n t e d little m o r e than a s t r a t e g i c r e t r e a t from the initial p r o p o s a l since the new office m e r e l y would be incorporated w i t h i n the D e p a r t m e n t of A g r i c u l t u r e for housekeeping purposes. Even in this form the i m p l i c a t i o n s of a clash with the Dep a r t m e n t of A g r i c u l t u r e did not escape Davis. To soften the impact of the p r o p o s a l for the new office, he s u g g e s t e d that it be presented in the form of a series of a l t e r n a t i v e s . T h e handling of the new food r e s p o n s i b i l i t i e s a r i s i n g from the p a s s a g e of the d e f e n s e - a i d m e a s u r e , m i g h t be a c c o m p l i s h e d e i t h e r by the e x i s t i n g defense o r g a n i z a t i o n in close collaboration w i t h the D e p a r t m e n t of A g r i c u l t u r e , or by an agency located w i t h i n the D e p a r t m e n t or finally by an office w i t h i n the D e p a r t m e n t but w i t h a close and official r e l a t i o n s h i p with the A g r i c u l t u r e D i v i s i o n of the N a t i o n a l D e f e n s e A d v i s o ry C o m m i s s i o n . Early in M a r c h a letter in s u b s t a n t i a l l y this form, except for the added a d m o n i t i o n that a s t r o n g e r A d m i n i s t r a t o r should be c h o s e n if the D e p a r t m e n t of A g r i c u l t u r e w e r e s e l e c t e d to perform the food function, was sent by D a v i s to the P r e s i d e n t . A week later the latter replied s t a t i n g that he had c a r e f u l l y c o n s i d e r e d the a l t e r n a t i v e s p r e s e n t e d by the A g r i c u l t u r a l Adviser and had come to the conclusion that the w a y to avoid d u p l i c a t i o n was to m a k e the D e p a r t m e n t of A g r i c u l t u r e responsible for L e n d - L e a s e food p u r c h a s i n g . T o this he added the i n f o r m a t i o n that he had already requested the S e c r e t a r y of A g r i c u l t u r e to take all the n e c e s s a r y steps to see that England r e c e i v e all the a g r i c u l t u r a l c o m m o d i t i e s that it needed. ^ Over-all

Organization

for

Lend-Lease

The foreign aid p r o g r a m adopted in the s p r i n g of 1941 resulted in the d i s p l a c e m e n t of the cash and carry p h i l o s o p h y by one of L e n d - L e a s e . T h e latter approach m e a n t p u r c h a s i n g would be done c e n t r a l l y by this G o v e r n m e n t instead of by ind i v i d u a l foreign p u r c h a s i n g m i s s i o n s .

5R

WARTIME FOOD PROCUREMENT AND PRODUCTION

This was a tremendous task. The Congress that had approved the new policy also was concerned about the manner in which it would be carried out. A House Appropriations Sub-committee before approving the expenditure of money for defense-aid inquired as to whether any new administrative machinery would be needed. Throughout their testimony before the sub-committee, Administration spokesmen were repeatedly queried on this point, either by Representative Woodrum or Representative Cannon. The Director of the Bureau of Rudget who bore the brunt of such questioning assured the sub-committee that no new overhead organization was contemplated. A policy committee of cabinet officers would be set up. Except for this, he said, " I do not see very much in the way of an organization that is necessary beyond the use of established a g e n c i e s . M o r e o v e r , asserted this official, not only would no large-scale organization be established, but also no executive department would be permitted to set up any special staff without the prior consent of the Bureau of Pudget. At the time these hearings were taking place no decision had been made as to the assignment of the food purchase function. Committee members with agricultural constituencies attempted to- ascertain whether the Department of Agriculture would be given the responsibility for food procurement but the head of the Bureau of Budget refused to commit himself. At first he expressed the opinion that all requests for agricultural commodities under the defense-aid program would have to be processed jointly by the Department of Agriculture and the Defense Commission " t o determine what effect the release of particular sorts of food products or agricultural products would have upon our e c o n o m y . " Later a direct question by one of the committee members was parried by him with the remark that "Under the Act, the President would indicate what would be the appropriate agency to procure that product."^ 3 Still later the same point was raised once more in the following exchange : Mr. Cannon: Procurement will be under control of the Department of Agriculture? Mr. Smith: I would say the Department of Agriculture would have a big hand in this -- in the processing of these i t e m s . ^ Although the Director of the Bureau of Budget refused to be pinned down in the matter, the decision as to which agency would buy agricultural products for Lend-Lease was settled to the satisfaction of the agricultural i n t e r e s t s . The administrative arrangements to handle the foreign aid program may be summarized in the following fashion: a cabinet committee developed policy on Lend-Lease requests; the Bureau of Budget prescribed the procedures for the routing of money requests by the executive departments, and the President made the allocations to the various federal agencies. At the outset the President not only directed the policy of aid to foreign

FOOD PROCUREMENT CONTROLS

59

governments, but also signed all allocations for funds and orders for the transfers of war materials. In this he was assisted by Harry Hopkins who processed Lend-Lease requisitions and conducted discussions with foreign governments and federal a g e n c i e s . ^ Gradually as the number of Lend-Lease transactions increased more delegation took place. On May 2, 1941, a Division of Defense-Aid Reports was set up in the Office of Emergency Management under the direction of Major General James Burns, with the primary function of providing a central channel for the clearance of transactions and the coordination of the processing of requisitions for assistance. Tt carried on the book work, so to speak, maintaining summary accounts for administrative and fiscal purposes and prepared quarterly reports which were sent to the President, informing him of the progress under the Lend-Lease Act.27 This arrangement continued until the fall of the year when, first a special assistant to the President on Lend-Lease matters was appointed and later, a Lend-Lease Administration was created. The Division of Defense-Aid Reports was abolished and the Administrator of the new agency was given the authority to exercise all the powers with respect of defense-aid which had previously been conferred by statute on the President. The new order marked the end of the President's personal supervision of Land-Lease activities. By the end of the third quarter of 1941 a well-defined procedure for the processing of requisitions and the allocation of funds among the various procurement agencies had been developed. A Lend-Lease Inter-departmental Committee consisting of representatives from the War, Navy, Treasury, and Agriculture Departments, the Maritime Commission and the Office for Production Management, and a Chairman designated by LendLease considered all requisitions and decided which procurement agency should receive the requisition. Within the Office of Production Management, a Clearance Committee considered the request once more, after which it was sent to the appropriate procurement agency where the latter, in turn, was to proceed to buy the needed items much in the same manner as if it were to fill its own needs. The purchasing agency then prepared a certified requisition which it submitted to the Office of Lend-Lease Administration with the request that it supply the funds needed to complete the t r a n s a c t i o n . I n general the allocation of Lend-Lease funds to procuring agencies was made in one of two ways: either on a program basis to cover the cost of items which were readily obtainable or on a blanket basis for those materials not so easy to prorn rp . 30

WARTIME FOOD PROCUREMENT AND PRODUCTION

60 The

Surplus

Marketing

Administration

T h e D e p a r t m e n t of A g r i c u l t u r e was well q u a l i f i e d to a c t a s the p u r c h a s i n g a g e n t for L e n d - L e a s e foodstuffs. Its p e r s o n n e l had had e x p e r i e n c e w i t h surplus removal p r o g r a m s and for a y e a r prior to the p a s s a g e of the foreign aid p r o g r a m it had been w o r k i n g with B r i t i s h r e p r e s e n t a t i v e s in c o n n e c t i o n w i t h the latter's food needs. In June 1940, S e c t i o n 5 of the Presidential R e o r g a n i z a t i o n P l a n No. Ill became e f f e c t i v e a f t e r the required legal i n t e r val of sixty days. It combined the D i v i s i o n o f M a r k e t i n g and M a r k e t i n g A g r e e m e n t s of the A g r i c u l t u r a l A d j u s t m e n t A d m i n i s tration and the Federal Surplus C o m m o d i t i e s C o r p o r a t i o n into a S u r p l u s M a r k e t i n g A d m i n i s t r a t i o n . The new a g e n c y t o g e t h e r w i t h its corporate a f f i l i a t e was given the power to p u r c h a s e , e x c h a n g e , process, d i s t r i b u t e , d i s p o s e , t r a n s p o r t , s t o r e and h a n d l e a g r i c u l t u r a l commodities.'^ T h i s considerable grant of a u t h o r i t y , h o w e v e r , w a s m o d i f i e d by the requirement that the institution of new p r o g r a m s , the t e r m i n a t i o n of e x i s t i n g p r o g r a m s , the a m e n d m e n t of p r o g r a m s , or the allocation o f funds, had to be approved by the A d m i n i s t r a t o r of the S u r p l u s M a r k e t i n g A d m i n i s t r a t i o n , the D i r e c tor of F i n a n c e , the S o l i c i t o r of the D e p a r t m e n t , the D i r e c t o r of M a r k e t i n g and R e g u l a t o r y W o r k , and finally, the S e c r e t a r y of A g r i c u l t u r e . ' ^ Not only was the c o o r d i n a t i o n of SMA programs with the rest of the D e p a r t m e n t assured by this requirem e n t , but a l s o the Secretary of A g r i c u l t u r e , if he so d e s i r e d , w a s given veto power over such programs. T h i s a r r a n g e m e n t worked reasonably well. D u r i n g the s p r i n g , summer, and fall of 1940 the S u r p l u s M a r k e t i n g A d m i n i s t r a t i o n acted as the domestic p u r c h a s e r of foodstuffs for E n g l a n d . H o w e v e r , as the B r i t i s h dollar supply became s h o r t , a c h a n g e in the p r o c u r e m e n t procedure was forecast. The

General

Commodities

Purchase

Program

T h e shortage of British dollars was met as w e have seen by the passage of the L e n d - L e a s e Act. Under the n e w p r o c e d u r e s m o n e y s were advanced to the D e p a r t m e n t of A g r i c u l t u r e by the T r e a s u r y only after specific requisitions were a p p r o v e d . T h e D e p a r t m e n t foresaw certain u n d e s i r a b l e results if it w a i t e d until specific a u t h o r i z a t i o n s were o b t a i n e d . U n l e s s a forward buying program were i n s t i t u t e d , the f u l f i l l m e n t of the food n e e d s of c o u n t r i e s r e s i s t i n g a g g r e s s i o n w o u l d have a d i s r u p t i v e effect upon the orderly m a r k e t i n g of a g r i c u l t u r a l c o m m o d i t i e s . Sudden food purchases might d i s t u r b m a r k e t prices. M o r e o v e r , by failing to stockpile food in a d v a n c e of n e e d , it m i g h t have to pay h i g h e r prices for the foods n e e d e d in its p r o c u r e m e n t program, and these increases would not n e c e s s a r i l y be reflected in the p r i c e s received by the p r o d u c e r . It was the s p e c u l a t o r rather than the farmer who would r e c e i v e the b e n e f i t s resulting from improved demand. The p r o d u c e r would

FOOD PROCUREMENT CONTROLS

61

o b t a i n an a d v a n t a g e o n l y i f t h e f o o d s t u f f s w e r e b o u g h t a t a t i m e when s e a s o n a l s u r p l u s e s c a u s e d p r i c e d e c l i n e s . I t was t h e s e c o n s i d e r a t i o n s which weighed h e a v i l y i n t h e d e p a r t m e n t a l d e c i s i o n to i n s t i t u t e the General Commodities P u r c h a s e p r o g r a m , commonly t e r m e d t h e GCP. In i t s b a r e s t e s s e n t i a l s i t was a r e s o l u t i o n t o s t o c k p i l e f o o d s i n a d v a n c e o f anticipated need.3' Legal

D i f f i c u l t i e s i n Regard

to

Stockpiling

O n c e t h e l a t t e r c o u r s e had b e e n a d o p t e d , t h e D e p a r t m e n t f a c e d the f o l l o w i n g dilemma. I t s S u r p l u s Marketing A d m i n i s t r a t i o n p o s s e s s e d p e r s o n n e l e x p e r i e n c e d in the conduct o f l a r g e s c a l e b u y i n g a c t i v i t i e s , b u t i t had no money t o s t o c k p i l e f o o d s . I n d e e d , i t was q u e s t i o n a b l e w h e t h e r i t s f u n d s , e v e n i f a v a i l a b l e , c o u l d be e m p l o y e d f o r s t o c k p i l i n g p u r p o s e s . 3 * Howe v e r , i t s c o r p o r a t e a f f i l i a t e , the F e d e r a l S u r p l u s Commodit i e s C o r p o r a t i o n , d i d have the a u t h o r i t y to s t o c k p i l e f o o d s t u f f s , b u t i t h a d no money f o r t h i s p u r p o s e . B u t i f i t w e r e s u c c e s s f u l in o b t a i n i n g t h e n e c e s s a r y f i n a n c e s , t h e s e c o u l d b e made a v a i l a b l e t o t h e S u r p l u s M a r k e t i n g A d m i n i s t r a t i o n s i n c e t h e A d m i n i s t r a t o r o f t h e l a t t e r a g e n c y had t h e p o w e r t o v o t e i t s f u n d s f o r w h a t e v e r he m i g h t c o n s i d e r l e g i t i m a t e p u r pcses. JJ A n o t h e r d e p a r t m e n t a l a g e n c y , t h e Commodity C r e d i t C o r p o r a t i o n , p o s s e s s e d t h e power t o b o r r o w upon t h e c r e d i t o f t h e U n i t e d S t a t e s i f s u c h w e r e a u t h o r i z e d by t h e P r e s i d e n t o f t h e U n i t e d S t a t e s . But t h i s agency did not have the a d m i n i s t r a t i v e e x p e r i e n c e e s s e n t i a l f o r the conduct of a L e n d - L e a s e p u r c h a s e o p e r a t i o n . For i t to have c a r r i e d out the s t o c k p i l i n g o p e r a t i o n would h a v e meant b o t h the a d d i t i o n and t h e t r a i n i n g o f new p e r s o n n e l , g r e a t e r e x p e n s e and t h e a t t e n d a n t p o s s i b i l i t y of f u n c t i o n a l o v e r l a p p i n g with o t h e r a g e n c i e s o f the Dep a r tmen t . T h e d i l e m m a w a s r e s o l v e d by t h e m a r r i a g e o f money t o a d m i n i s t r a t i v e e x p e r i e n c e . On March 8 , 1 9 4 1 , t h e C o m m o d i t y C r e d i t C o r p o r a t i o n a g r e e d t o a d v a n c e money f o r s t o c k p i l i n g p u r p o s e s t o the F e d e r a l S u r p l u s Commodities C o r p o r a t i o n . The l a t t e r a s an a g e n c y o f t h e C o r p o r a t i o n was empowered t o s t o c k p i l e thirt e e n f o o d p r o d u c t s . ^ I n i t i a l l y a sum o f 8 0 m i l l i o n d o l l a r s was s e t a s i d e f o r t h i s p u r p o s e . In May 1 9 4 1 , t h e o r i g i n a l a m o u n t w a s i n c r e a s e d by an a d d i t i o n a l 10 m i l l i o n s . L a t e r , i n J a n u a r y 1 9 4 2 , i t was r a i s e d t o 150 m i l l i o n s a n d f i n a l l y , in A p r i l o f t h a t y e a r , a l l l i m i t a t i o n s w e r e r e m o v e d on t h e money t h a t the Commodity C r e d i t C o r p o r a t i o n c o u l d a d v a n c e t o t h e Federal S u r p l u s Commodities C o r p o r a t i o n for s t o c k p i l i n g purposes . The money a d v a n c e d by t h e Commodity C r e d i t C o r p o r a t i o n t o t h e F e d e r a l S u r p l u s C o m m o d i t i e s C o r p o r a t i o n b e c a m e known a s t h e GCP R e v o l v i n g F u n d . T h r o u g h t h e u s e o f t h e f a c i l i t i e s o f the l a t t e r c o r p o r a t i o n , the Department of A g r i c u l t u r e and

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WARTIME POOD PROCUREMENT AND PRODUCTION

later the War Food Administration bought food in anticipation of the needs of Lend-Lease countries. As specific requisitions were received transfers were made out of accumulated food stocks. The Federal Surplus Commodities Corporation was reimbursed by the Treasury Department for the quantities of foodstuffs that it delivered to the foreign claimants. It in turn deposited the money it received to the account of the Commodity Credit Corporation. In this manner the revolving fund was continually replenished. Statutory Basis

of Food

Procurement

Federal agencies in their procurement activities were governed by two main requirements: observance of the open and competitive bid method and adherence to the labor provisions of the Walsh-Healey A c t . J n its conduct of surplus removal programs, however, the Department of Agriculture was exempted from these provisions, since it was commonly recognized that prompt action was needed to prevent irreparable l o s s . ® Subsequently by legislation and delegation this authority to buy agricultural supplies without reference to either the bid procedure or the labor provisions of federal statutes was transferred to the Federal Surplus Commodities Corporation. 41 Since the Presidential Reorganization Plan No. Ill permitted the Surplus Marketing Administration to exercise the powers of the Corporation, it, too, became the beneficiary of the exemptions originally granted to the Secretary of Agriculture. 4 2 Thus the latter could direct the Federal Surplus Commodities Corporation to enter into contracts for the processing of agricultural commodities without regard to the provisions of federal statutes. Thus prior to the passage of the Lend-Lease Act the Department of Agriculture was free to purchase domestic food surpluses without regard to the statutory limitations governing procurement by federal agencies. But when the Department was assigned the function of purchasing for foreign claimants, it was not certain whether these exemptions applied with equal force to Lend-Lease procurement. Indeed, at the outset it hardly mattered, since most of the agricultural supplies sent overseas were in the surplus category. Foods for this purpose could be acquired in accordance with the usual procedures governing domestic purchases. However, it was uncertain whether the same freedom of action would apply to foods in short supply. The way out was pointed by both legislative and executive action. Shortly after Pearl Harbor Congress recognized the restrictive effect of existing purchase procedures on war procurement and sought to remedy the situation by the passage of the First War Powers Act. By its terms the President of the United States was empowered to authorize any department or agency of the Government to enter into contracts without re-

FOOD PROCUREMENT CONTROLS

63

gard to the provisions of law relating to the letting and performance of contracts. 4 3 On December 27, 1941, the Chief Executive granted the Maritime Commission and the War and Navy Departments the authority to dispense with advertising, competitive bidding, and the posting of bonds for performance of contracts by vendors.* 4 Paragraph eight of the same Executive Order further stated that " n o contract, or modification or amendment thereof, shall be exempt from the provisions of the Walsh-Healey Act because of being entered into without advertising or competitive bidding. " The provision of that Act and other designated acts " i f otherwise applicable shall apply to contracts made and performed under the authority of this order. " 4 5 \ few weeks later similar freedom of action was granted to the Secretary of Agriculture. 4 " In making LendLease purchases, therefore, the Secretary could buy without regard to the provisions of existing law. Moreover, since paragraph eight of the Executive Order referred to above was interpreted by the Solicitor of the Department of Agriculture to mean that the President had not intended to eliminate the requirements of existing statutes where such requirements were not "otherwise applicable," and since exemptions for agricultural commodities were already made in the Walsh-Healey Act, the conditions of the latter statute did not apply to Lend-Lease food buying.*^ Thus in war food procurement the Secretary of Agriculture was granted a wide latitude of action similar to that exercised by him over surplus removal programs. Purchase

Ope rat ions of the Surplus

Marketing

Administration

Equipped with both money and the authority, the Surplus Marketing Administration was in an excellent position to service the requests of foreign governments, particularly the British. A day after the passage of the Lend-Lease Act and while the General Commodities Program had not as yet been approved by the President, its Administrator approved nine program dockets authorizing the purchase of the following quantities of agricultural products: 100,000 pounds of dry beans; 700,000 cases of canned grapefruit juice, and a similar quantity of canned grapefruit; 43,000 tons of fresh grapefruit which would be processed into grapefruit juice; 320,000 pounds lard; 4,000,000 cases of shell eggs; 3,000,000 cases of evaporated milk; 50,000,000 pounds of dry skim milk; and, finally, 10,000,000 pounds of cheese. 4 8 Quick action followed the initial adoption of the program dockets. A month after their passage, the food requirements of the British Government were made known through its purchasing agents. It requested the following quantities of foodstuffs: 100,000 cases of evaporated milk; 11,000 tons of shell eggs; a similar tonnage of cheese; 15,000 tons of raisins; and 6,000 hogsheads of tobacco. 4 9 A week later, following approval

64

WARTIME FOOD PROCUREMENT AND

PRODUCTION

by the P r e s i d e n t , the d e s i g n a t e d a m o u n t s of a g r i c u l t u r a l produ c t s were transferred to the accredited r e p r e s e n t a t i v e s of the B r i t i s h G o v e r n m e n t . ® In M a y , 1941, a more formal m a c h i n e r y for the d i s c u s s i o n of B r i t i s h food n e e d s replaced the informal p l a n n i n g that had been g o i n g on d u r i n g the p r e v i o u s m o n t h s . An A n g l o - A m e r i c a n Food C o m m i t t e e was e s t a b l i s h e d c o n s i s t i n g of three B r i t i s h and an e q u i v a l e n t n u m b e r of A m e r i c a n r e p r e s e n t a t i v e s , and in addition, the S e c r e t a r y of A g r i c u l t u r e w h o served as C h a i r m a n . T h u s the B r i t i s h were able e f f e c t i v e l y to o u t l i n e their entire s u p p l y program and, at the same time, w e r e given an indication of how this c o u n t r y could meet their needs. By the end of A u g u s t 1941, the D e p a r t m e n t of A g r i c u l t u r e had d e l i v e r e d the following q u a n t i t i e s of foodstuffs to Britain: cheese, 45 million pounds; dried eggs, 2.9 m i l l i o n pounds; frozen eggs, 23.1 million pounds; dry skim m i l k , 12.5 million p o u n d s ; e v a p o r a t e d m i l k , 2.9 million pounds; and dried beans, 110.9 million p o u n d s . 5 2 A l t h o u g h B r i t i s h s h i p p i n g was short, the D e p a r t m e n t of Agric u l t u r e continued to purchase in advance of a n t i c i p a t e d n e e d s , regardless of w h e t h e r or not the B r i t i s h had submitted r e q u i s i t i o n s . By the end of the year the $ 3 5 0 , 0 0 0 , 0 0 0 initially allocated out of L e n d - L e a s e funds for the p u r c h a s e of agric u l t u r a l s u p p l i e s had been increased to $ 5 0 2 , 0 0 0 , 0 0 0 . All of the money had been spent on open m a r k e t p u r c h a s e s and over 100 d i f f e r e n t items had been stored pending L e n d - L e a s e requests. 5 '' D u r i n g the latter part of 1941 the crucial f a c t o r in supplying British w i t h food involved shipping rather than supply. It w a s here that the value of s t o c k p i l i n g was d e m o n s t r a t e d for r e q u i s i t i o n s were tendered by the E n g l i s h G o v e r n m e n t only when boats were a v a i l a b l e . By m e a n s of the r e v o l v i n g fund food b o u g h t in the open m a r k e t was located at s t r a t e g i c port areas to await the arrival of a vessel from England. Had the Departm e n t been forced to withhold its p u r c h a s e o p e r a t i o n s until its r e q u i s i t i o n s had been honored by the Treasury D e p a r t m e n t much v a l u a b l e time would have been lost. B u t with the food stockpiled, transfer to English ships could be made with relative ease and d i s p a t c h . The Agricultural

Marketing

Administration

The Surplus M a r k e t i n g A d m i n i s t r a t i o n functioned until a week after Pearl H a r b o r when it was supplanted by the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n . In a n n o u n c i n g the c h a n g e the Secretary of A g r i c u l t u r e emphasized the fact that it w a s designed to k n i t together more e f f e c t i v e l y the p r o c u r e m e n t and distrib u t i o n functions of the D e p a r t m e n t . W i t h i n the new agency proc u r e m e n t was organized on a functional basis. All of this a c t i v i t y w a s divided between a Purchase Branch, which did the a c t u a l buying, and a Custody and D i s p o s i t i o n D i v i s i o n , which a r r a n g e d for storage and transportation to port a r e a s . 5 *

FOOD PROCUREMENT CONTROLS

65

In c o n d u c t i n g i t s p u r c h a s e o p e r a t i o n s , the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n e m p l o y e d two b u y i n g p l a n s : t h e o f f e r and a c c e p t a n c e method and t h e s p e c i f i e d p r i c e m e t h o d . In e a c h c a s e the p u r c h a s e p r o g r a m was i n i t i a t e d by t h e i s s u a n c e o f an a n n o u n c e m e n t s t a t i n g t h e d e t a i l s o f when and how p u r c h a s e s w e r e t o be m a d e , t h e p e r i o d o f t i m e d u r i n g which o f f e r s would be r e c e i v e d , t h e minimum q u a n t i t y t h a t m i g h t be o f f e r e d , t h e q u a l i t y s p e c i f i c a t i o n s , and t h e t y p e o f p a c k a g i n g r e q u i r e d . The s p e c i f i e d p r i c e method s t a t e d t h e t o p p r i c e t h a t t h e Gove r n m e n t w o u l d b e w i l l i n g t o p a y . ^ 5 Of t h e two, t h e o f f e r and a c c e p t a n c e m e t h o d was m o s t o f t e n u s e d , s i n c e i t was more r e a d i l y adapted to l a r g e - s c a l e buying. The o f f e r and a c c e p t a n c e p l a n o p e r a t e d in t h e f o l l o w i n g mann e r . The f o o d t r a d e was a s k e d t o s u b m i t o f f e r s on d e s i g n a t e d p r o d u c t s d u r i n g a s p e c i f i e d p u r c h a s i n g p e r i o d . The v e n d o r s t h e n r e p l i e d t o t h e P u r c h a s e B r a n c h by e i t h e r t e l e g r a m o r l e t t e r w i t h o f f e r s t h a t s t a t e d how much t h e y c o u l d s e l l , t h e p r i c e which t h e y a s k e d , t h e p o i n t o f d e l i v e r y , t h e d a t e o f d e l i v e r y , and o t h e r p e r t i n e n t i n f o r m a t i o n . O f f e r s a c c e p t e d by t h e A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n then became c o n t r a c t s on t h e b a s i s o f t h e t e r m s and c o n d i t i o n s s e t f o r t h in t h e p u r c h a s e a n n o u n c e m e n t . 5® U n d e r t h e s p e c i f i e d p r i c e p l a n much t h e same p r o c e d u r e was f o l l o w e d , e x c e p t t h a t t h e a n n o u n c e m e n t l i s t e d the h i g h e s t p r i c e t h a t t h e A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n would pay f o r a p r o d u c t of s p e c i f i e d g r a d e . I f a vendor making the o f f e r t o s e l l had t h e i t e m s in the r e q u i r e d q u a l i t y and m i n i mum q u a n t i t y , and w a n t e d t o s e l l a t or below t h e a n n o u n c e d g o v e r n m e n t a l p r i c e , h i s o f f e r t o s e l l by e i t h e r l e t t e r o r t e l e g r a m c o n s t i t u t e d a c o n t r a c t on t h e b a s i s o f t h e t e r m s and c o n d i t i o n s s t a t e d in t h e a n n o u n c e m e n t . ^ I f t h e s u p p l y o f a g i v e n f o o d i t e m was s h o r t , t h e b u y i n g m e t h o d s d e s c r i b e d a b o v e were s u p p l e m e n t e d by r e s e r v a t i o n r e q u e s t s a s k i n g t h a t the food trade v o l u n t a r i l y s e t a s i d e s u f f i c i e n t q u a n t i t i e s o f f o o d t o meet t h e n e e d . Where v o l u n t a r y a c t i o n was i n s u f f i c i e n t , c o m p u l s o r y o r d e r s i s s u e d by t h e War P r o d u c t i o n Board under i t s p r i o r i t y powers d i r e c t e d the i n d u s t r y to r e s e r v e d e s i g n a t e d p e r c e n t a g e s of the t o t a l p r o d u c t i o n . Such o r d e r s u s u a l l y s p e c i f i e d f u r t h e r t h a t the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n s h o u l d a c t a s the p u r c h a s i n g a g e n t to a c q u i r e the foods r e s e r v e d for e x c l u s i v e governmental u s e . ^ " L a t e r , a s f o o d s u p p l i e s became i n c r e a s i n g l y s h o r t , t h i s t y p e o f c o m p u l s o r y o r d e r b e c a m e t h e a c c e p t e d method f o r t h e i m p l e m e n t a t i o n of g o v e r n m e n t a l p u r c h a s e s . ^ L e n d - L e a s e p u r c h a s e s were made on t h e b a s i s o f U . S . g r a d e s i n a l l t h o s e i n s t a n c e s where s t a n d a r d s had been e s t a b l i s h e d by t h e D e p a r t m e n t o f A g r i c u l t u r e . I n s p e c t i o n s o f c o m m o d i t i e s w e r e made a t t h e v e n d o r ' s p l a n t o r w a r e h o u s e e i t h e r by emp l o y e e s o f t h e A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n or by i n s p e c t o r s working under c o o p e r a t i v e agreements between the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n and t h e s t a t e g o v e r n -

66

WARTIME FOOD PROCUREMENT AND PRODUCTION

m e n t a . The e x t e n s i v e work d o n e b e f o r e t h e war by t h e D e p a r t ment o f A g r i c u l t u r e on g r a d e s a n d s t a n d a r d s p r o v e d i n v a l u a b l e in the conduct of i t s f a r - f l u n g purchase o p e r a t i o n s . 6 0 T h e b u y i n g m e t h o d s e m p l o y e d by t h e A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n v a r i e d w i t h the kind of commodities p u r c h a s e d , b u t t h e g e n e r a l p r o c e d u r e c a n b e s t b e i l l u s t r a t e d by r e f e r r i n g t o f o u r m a i n c o m m o d i t y g r o u p s . F r e s h and p r e p a r e d m e a t s w e r e u s u a l l y b o u g h t f r o m t h e p a c k e r s on an o f f e r and a c c e p t a n c e b a s i s . However, w i t h the g r a d u a l i n s t i t u t i o n of p r i c e c e i l i n g s which r e s u l t e d in only a s l i g h t d i f f e r e n c e in the v a r i o u s bid o f f e r i n g s , the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n soon r e s o r t e d t o t h e p r a c t i c e o f a n n o u n c i n g t h e p r i c e s i t was w i l l i n g t o p a y a n d t h e n a c c e p t i n g o f f e r s t o s e l l from p a c k e r s a t t h e s e l e v e l s . Egg a n d p o u l t r y p r o d u c t s w e r e a c q u i r e d f r o m c o m m e r c i a l p r o c e s s o r s , d i s t r i b u t o r s , and p r o d u c e r s , l a r g e l y on t h e o f f e r and a c c e p t a n c e b a s i s , a l t h o u g h t h e s p e c i f i e d p r i c e p l a n was a l s o e m p l o y e d . B o t h p l a n s of p u r c h a s e w e r e u t i l i z e d t o p r o c u r e f r u i t s and v e g e t a b l e s . D a i r y p r o d u c t s w e r e b o u g h t on an o f f e r and a c c e p t a n c e b a s i s . The Dairy

Products

Marketing

Associât

ion

S p e c i a l m e n t i o n s h o u l d b e made o f t h e m a n n e r i n w h i c h t h e Government p u r c h a s e d d a i r y p r o d u c t s , f o r i t i l l u s t r a t e s the i n g e n i o u s u s e o f p r i v a t e r e s o u r c e s by t h e G o v e r n m e n t t o c a r r y o u t an e x t r e m e l y d i v e r s e and v a r i e d o p e r a t i o n . To buy d a i r y p r o d u c t s t h e G o v e r n m e n t u t i l i z e d t h e s e r v i c e s of t h e D a i r y P r o d u c t s M a r k e t i n g A s s o c i a t i o n , a n o n - p r o f i t , n o n - c a p i t a l s t o c k c o r p o r a t i o n w h i c h had b e e n o r g a n i z e d u n d e r t h e l a w s o f t h e S t a t e of D e l a w a r e . The A s s o c i a t i o n was comp o s e d of e i g h t r e g i o n a l c o o p e r a t i v e s , e a c h of w h i c h was owned by l o c a l , f a r m e r - o w n e d c o o p e r a t i v e s i n t h e p r i n c i p a l d a i r y p r o d u c i n g a r e a s . E a c h of t h e s e l o c a l u n i t s was t i e d i n t o t h e p a r e n t o r g a n i z a t i o n t h r o u g h r e p r e s e n t a t i o n on t h e B o a r d of D i r e c t o r s of t h e A s s o c i a t i o n . ® ^ R e l a t i o n s b e t w e e n t h e D e p a r t m e n t of A g r i c u l t u r e and t h e Ass o c i a t i o n h a d b e g u n i n 1938 when t h e f o r m e r had d e c i d e d t o a p p l y t h e l o a n p r o v i s i o n s of S e c t i o n 302 of t h e A g r i c u l t u r a l A d j u s t m e n t A c t t o t h e s t a b i l i z a t i o n o f b u t t e r p r i c e s . To c o n d u c t an o p e r a t i o n w h i c h i n v o l v e d a k n o w l e d g e o f p u r c h a s e c o n d i t i o n s , t h e a c t u a l p u r c h a s i n g , w a r e h o u s i n g and h a n d l i n g of a h i g h l y p e r i s h a b l e i t e m , t h e D e p a r t m e n t of A g r i c u l t u r e d e c i d e d t o employ t h e s e r v i c e s of t h e D a i r y P r o d u c t s M a r k e t i n g A s s o c i a t i o n . At t h a t t i m e t h e A s s o c i a t i o n was a l r e a d y e n g a g e d i n t h e t a s k o f m a r k e t i n g t h e b u t t e r o f many l o c a l l y owned p r o d u c e r c o o p e r a t i v e s . Thus t h e D e p a r t m e n t h a d a t h a n d a r e a d y - m a d e i n s t r u m e n t t o a s s i s t i t in t h e a d m i n i s t r a t i o n of t h e law. In 1 9 3 8 , a memorandum o f u n d e r s t a n d i n g was c o n c l u d e d b e t w e e n t h e A s s o c i a t i o n and t h e Commodity C r e d i t C o r p o r a t i o n a c t i n g f o r t h e D e p a r t m e n t of A g r i c u l t u r e , whereby t h e f o r m e r , a t t h e d i r e c t i o n o f t h e D e p a r t m e n t would p u r c h a s e b u t t e r w h e n e v e r i t

POOD PROCUREMENT CONTROLS

67

was n e c e s s a r y t o s u p p o r t p r i c e s , and would s t o r e t h e commodit y p e n d i n g f u r t h e r d e c i s i o n by t h e p u b l i c a g e n c y . The C o r p o r a t i o n a d v a n c e d f u n d s t o t h e A s s o c i a t i o n and r e i m b u r s e d i t f o r i t s a d m i n i s t r a t i v e e x p e n s e s . The D a i r y P r o d u c t s M a r k e t i n g A s s o c i a t i o n , i n o t h e r w o r d a , became an a g e n t o f t h e D e p a r t m e n t o f A g r i c u l t u r e w i t h the l a t t e r s u p p l y i n g t h e f i n a n c i a l r e s o u r c e s but b e i n g r e l i e v e d of almost the e n t i r e a d m i n i s t r a tive burden.63 For t h r e e y e a r s the A s s o c i a t i o n c o n d u c t e d b u t t e r s t a b i l i z a t i o n o p e r a t i o n s under t h i s a d m i n i s t r a t i v e p l a n . W h e n the D e p a r t m e n t of A g r i c u l t u r e i n May 1 9 4 1 was f a c e d w i t h t h e n e e d f o r s p e e d i n g i t s a c q u i s i t i o n s o f d a i r y p r o d u c t s , i t had on hand an e x i s t i n g p u r c h a s e a r r a n g e m e n t t e s t e d by e x p e r i e n c e . Only a r e o r i e n t a t i o n o f p u r p o s e i n t h e d i r e c t i o n o f e j t p o r t r a t h e r than d o m e s t i c s u p p l y was n e e d e d . When b u t t e r was a d d e d t o the l i s t o f c o m m o d i t i e s t o be p u r c h a s e d by money s u p p l i e d from t h e G e n e r a l C o m m o d i t i e s P u r c h a s e P r o g r a m , a new a g r e e m e n t was c o n c l u d e d w i t h t h e A a s o c i t i o n . I t a g r e e d t o buy and h a n d l e d a i r y p r o d u c t s a t t h e d i r e c t i o n of the S u r p l u s Marketing A d m i n i s t r a t i o n . j n December 1942, the D a i r y P r o d u c t s M a r k e t i n g A s s o c i a t i o n was a s k e d t o c a r r y o u t a c h e e s e s u b s i d y p r o g r a m , an o p e r a t i o n t h a t i n v o l v e d t h e p r o c e s s i n g o f s u b s i d y c l a i m s from c h e e s e f a c t o r i e s . For the b a l a n c e o f t h e 1 9 4 1 - 1 9 4 2 s e a s o n 17 m i l l i o n p o u n d s o f b u t t e r a t a c o s t o f 1 5 , 8 1 4 , 0 0 0 were b o u g h t by t h e A s s o c i a t i o n f o r the D e p a r t m e n t o f A g r i c u l t u r e . By May 1 9 4 3 , i t had o b t a i n e d an a d d i t i o n a l 41 m i l l i o n p o u n d s o f t h e same commodity f o r the a c c o u n t o f the G o v e r n m e n t . In March and A p r i l 1943 i t a c q u i r e d 10 m i l l i o n pounds o f c h e e s e on t h e open m a r k e t by means o f the o f f e r and a c c e p t a n c e m e t h o d . 6 7 Toward t h e end o f A p r i l 1 9 4 3 , a new a g r e e m e n t was n e g o t i a t e d between t h e A s s o c i a t i o n and t h e D e p a r t m e n t . Food D i s t r i b u t i o n O r d e r s No. 2 and 15 had b e e n i s s u e d d i r e c t i n g t h e p r o d u c e r s o f b u t t e r and c h e e s e t o s e t a s i d e s p e c i f i c q u a n t i t i e s o f t h e s e i t e m s f o r t h e e x c l u s i v e u s e o f t h e G o v e r n m e n t . The A s s o c i a t i o n was t o a c t a s the p u r c h a s i n g a g e n t f o r t h e War Food A d m i n i s t r a t i o n . 68 The work o f the A s s o c i a t i o n can be j u d g e d by a b r i e f summary of i t s o p e r a t i o n s d u r i n g a r e p r e s e n t a t i v e y e a r . During the y e a r 1 9 4 3 - 1 9 4 4 i t e m p l o y e d e i g h t y - e i g h t p e r s o n s t o c a r r y on i t s p u r c h a s e , c l e r i c a l and a c c o u n t i n g a c t i v i t i e s . F o r t h a t p e r i o d i t s o p e r a t i n g e x p e n s e s were a p p r o x i m a t e l y $ 3 1 3 , 0 0 0 . F o r same p e r i o d o f t i m e i t b o u g h t 2 0 0 m i l l i o n p o u n d s o f b u t t e r and a s i m i l a r amount o f c h e e s e . T h i s r e p r e s e n t e d an o p e r a t i n g c o s t of . 0 8 o f a c e n t p e r p o u n d . The a d m i n i s t r a t i v e e x p e n d i t u r e was l e s s than one f o u r t h o f 1 p e r c e n t o f t h e t o t a l c o s t o f the commodities purchased. The manner i n which the D e p a r t m e n t o f A g r i c u l t u r e and i t s s u c c e s s o r a g e n c i e s conducted i t s purchases of d a i r y p r o d u c t s f u r n i s h e s an e x c e l l e n t e x a m p l e o f how a g o v e r n m e n t a l a g e n c y can a d m i n i s t e r a f a r - f l u n g and v a r i e d p r o g r a m w i t h a minimum

68

WARTIME

POOD PROCUREMENT AND

PRODUCTION

of a d m i n i a t r a t i v e e x p e n s e and e f f o r t . T h e c o m m o d i t y b r a n c h of the W a r Food A d m i n i s t r a t i o n c o n c e r n e d w i t h this a c t i v i t y w a s located in W a s h i n g t o n , w h i l e the c o m m o d i t y m a r k e t w a s in C h i c a g o and the M i d - W e s t , a p p r o x i m a t e l y 1 , 0 0 0 m i l e s d i s tant. T h e A s s o c i a t i o n n o t only b r i d g e d the g a p of d i s t a n c e , but it a l s o c o n c e n t r a t e d a d m i n i s t r a t i v e r e s p o n s i b i l i t y and c o m m o d i t y k n o w l e d g e at a s i n g l e p o i n t in c l o s e p r o x i m i t y to the c o m m e r c i a l m a r k e t . First

Year

of Lend-Lease

Operations

U s i n g the m e t h o d s d e s c r i b e d a b o v e , the a g e n c i e s o f the D e p a r t m e n t of A g r i c u l t u r e d u r i n g the first y e a r of L e n d - L e a s e o p e r a t i o n s s e n t the f o l l o w i n g q u a n t i t i e s of a g r i c u l t u r a l suppi ies o v e r s e a s : Commodity M e a t and fish p r o d u c t s Milk products Egg products F r u i t s and v e g e t a b l e s G r a i n and c e r e a l p r o d u c t s S u g a r and related p r o d u c t s Cotton linters

Pounds 814,756,776 663,718,085 128,652,685 814,006,538 1,018,659,678 22,932,331 35,479,581

In a d d i t i o n , d u r i n g the same period 4 ^ 8 , 8 9 5 b a l e s of raw cotton and a b o u t 4 5 , 0 0 0 , 0 0 0 h o g s h e a d s of t o b a c c o w e r e a l s o sent overseas. T h r o u g h o u t the s u m m e r and fall of 1942, the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n c o n t i n u e d to s t e p up the p a c e of its p u r c h a s e o p e r a t i o n s . By A u g u s t of that y e a r its p u r c h a s e s had g o n e w e l l b e y o n d the b i l l i o n and a h a l f d o l l a r ma r k . 7 1 By m i d O c t o b e r the a g e n c y w a s b u y i n g s e v e n t e e n key f o o d s t u f f s every w e e k , eleven foods every two w e e k s , and at g r e a t e r i n t e r v a l s m a n y o t h e r food i t e m s . All in all, m o r e than two h u n d r e d a g r i c u l t u r a l c o m m o d i t i e s w e r e p r o c u r e d , e i t h e r to m a i n t a i n invent o r i e s or to fill s p e c i f i c n e e d s . F o r the first e i g h t e e n m o n t h s of its o p e r a t i o n s u n d e r the L e n d - L e a s e A c t , the D e p a r t m e n t o f A g r i c u l t u r e and its c o n s t i t u e n t a g e n c i e s a c q u i r e d $1.7 b i l l i o n s w o r t h of f o o d s t u f f s , of w h i c h m o r e than t w o - t h i r d s w e n t to B r i t a i n , R u s s i a and o t h e r L e n d - L e a s e c o u n t r i e s . ^ In f i g u r a t i v e t e r m s , the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a tion r e p r e s e n t e d a h u g e g r o c e r y s t o r e . Its c u s t o m e r s w e r e the U n i t e d N a t i o n s . As these c o u n t r i e s p r e s e n t e d t h e i r r e q u e s t s for food, the A d m i n i s t r a t i o n m a d e s a l e s e i t h e r from its s t o c k p i l e o f a c c u m u l a t e d g o o d s or, w h e r e n e c e s s a r y , from special p u r c h a s e s to s a t i s f y the d e m a n d .

CHAPTER

V

COORDINATION OF FOOD The

Food

Distribution

PROCUREMENT

Administration

The A g r i c u l t u r a l M a r k e t i n g Administration functioned u n t i l D e c e m b e r 5, 1942, w h e n it w a s replaced by the Food D i s t r i b u tion A d m i n i s t r a t i o n . In a d d i t i o n to the f u n c t i o n s of its p r e d e c e s s o r , the n e w a g e n c y a b s o r b e d the S u g a r A g e n c y of the A g r i c u l t u r a l C o n s e r v a t i o n and A d j u s t m e n t A d m i n i s t r a t i o n , t h o s e p o r t i o n s of the O f f i c e of A g r i c u l t u r a l War R e l a t i o n s d e a l i n g w i t h food d i s t r i b u t i o n , u n i t s of the War P r o d u c t i o n B o a r d t h a t had p e r f o r m e d s i m i l a r d u t i e s , and the r e g u l a t o r y a c t i v i t i e s of the B u r e a u of A n i m a l I n d u s t r y . ^ The p r e s i d e n t i a l o r d e r that led to the c r e a t i o n of the Food D i s t r i b u t i o n A d m i n i s t r a t i o n also gave the S e c r e t a r y o f A g r i c u l t u r e full a u t h o r i t y o v e r food p r o c u r e m e n t by federal a g e n cies. A m a j o r p o r t i o n of this v e s t g r a n t of p o w e r w a s s u b s e q u e n t l y t r a n s f e r r e d by s e c r e t a r i a l d i r e c t i v e to the D i r e c t o r of F o o d D i s t r i b u t i o n . As a r e s u l t , the Food D i s t r i b u t i o n A d m i n i s t r a t i o n b e c a m e the L e n d - L e a s e p u r c h a s i n g a g e n t for the D e p a r t m e n t of A g r i c u l t u r e . ^ The

Commodity

Branches

M o s t o f the w o r k of the Food D i s t r i b u t i o n A d m i n i s t r a t i o n w a s p e r f o r m e d by its c o m m o d i t y b r a n c h e s . In all there w e r e e i g h t such u n i t s . E a c h o f t h e s e for their a s s i g n e d c o m m o d i t i e s w a s g i v e n full r e s p o n s i b i l i t y for the f o l l o w i n g tasks: to d r a w u p c o m m o d i t y and c o n t a i n e d s p e c i f i c a t i o n s ; to d e v e l o p i m p r o v e d m e t h o d s of p r o c e s s i n g , p a c k a g i n g and d i s t r i b u t i o n ; to p r e p a r e p r i c e s u p p o r t r e c o m m e n d a t i o n s and p r o g r a m s ; to a s s i s t p r o c e s sors and d i s t r i b u t o r s w i t h their p r o b l e m s ; to f o r m u l a t e and a d m i n i s t e r food o r d e r s ; and to i n i t i a t e and e x e c u t e food s u p ply p r o g r a m s to m e e t the r e q u i r e m e n t s of c l a i m a n t g r o u p s . T h u s the c o m m o d i t y b a s i s of o p e r a t i o n e s t a b l i s h e d in the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n and its p r e d e c e s s o r a g e n c i e s was c o n t i n u e d , but it was s t r e n g t h e n e d by v i r t u e of the fact that all f u n c t i o n s r e l a t i n g to a given c o m m o d i t y w e r e located w i t h i n a s i n g l e o r g a n i z a t i o n a l unit.''

70

W A R T I M E FOOD PROCUREMENT A N D PRODUCTION

The Program

Liaison

Div is ion

To speed the purchase activity, a Program Liaison Division •as given the role of expediter. It received all food requisitions from foreign governments and forwarded these to the commodity branches. It also maintained current information on the extent to which these requests were being met. On the basis of its knowledge of the progress of procurement programs it made c o m m i t m e n t s to foreign governments stating the time and place where foodstuffs would be delivered. In addition this arrangement meant that foreign claimants were given a single place to which they might go to find out why their needs were not being met. By working closely with the latter the Program Liaison Division was able to ascertain their advance requirements and thus assist the commodity branches in the development of forward buying programs.*

Other

FDA

Units

The work of the commodity branches and the Program Liaison Division was supplemented by the Requirements and Allocations Control Branch. This unit assisted the Director of Food Distribution in the formulation of recommended allocations of foodstuffs. Once these were approved by the War Food Administrator, they formed the basis for procurement action.' The Transportation and Warehousing Branch assumed the custody and disposition of foods upon the completion of the purchase operation. If one excludes the addition of research on m a r k e t i n g facilities, its functions were analogous to those of the Custody and Disposition Division of the Agricultural M a r k e t i n g Administration. Briefly, it performed four main tasks: ( 1 ) moving commodities from processors' plants; (2) certifying and selecting adequate warehousing for the storage of commodities; (3) delivering designated quantities of foodstuffs to boatside; and finally, (4) storing the difference between the production and shipping requirements in such a way that foods were in a proper position for subsequent movement to ports. In a sense its purpose was similar to that of a commercial warehouse which shipped in accordance with instructions issued by its sales department, except that in this instance sales or transfers were made by the commodity branches.®

Procurement

Procedures

The manner in which the various units of the Food Distribution Administration w e r e keyed together for the conduct of procurement can be gathered from a brief review of the purchase procedures. The foundation stone of all purchases was an allocation approved for each claimant for a twe 1 ve-month advance period.

COORDINATION OF POOD PROCUREMENT

71

The allocation constituted a notification of a firm commitment from the American Government for any current quarter and for two-thirds of the succeeding quarter. In other words, for this period, the claimant was entitled to expect delivery on all commodities for foods allotted to him. Allocations beyond the first five months, however, could only be considered tentative since they were subject to change. 7 Purchase operations, therefore, were designed to obtain for the claimant promised quantities of foodstuffs from the nation's stockpile. Because of the seasonal nature of agricultural production and the lag between purchase and actual delivery, it was necessary to do a great deal of forward buying. Otherwise, allocations would be meaningless. The efforts of the commodity branches were devoted to the building of inventories and then, as a sufficient backlog was accumulated, commodities for claimants could be drawn from stocks in accordance with the allocation. For each food item for which a buying program was contemplated, the commodity branch was required to prepare a purchase plan describing the amount of the allocation, the quantity it proposed to buy, the prospective division of such purchases among claimants and finally, the purchase techniques. The development and "modification of Purchase Plans, as well as the acquisition of commodities in the quantities and the manner set forth in such plans [was] the full responsibility of the Chiefs of the commodity branches." 8 Copies of the purchase plan were sent to the Transportation and Warehousing Branch, the Program Liaison Division and the Deputy Director for Procurement Coordination. The Transportation and Warehousing Branch was asked to state its ability to handle the warehousing and the delivery of the commodities contained in the buying plan. The Program Liaison Division by receiving advance notice of contemplated purchases was in a position because of its close contact with claimants to offer criticism about whether or not the needs of the latter were being met. The Deputy Director was responsible for approving, disapproving or modifying all such plans. Once purchases were made, the next step in the process was delivery to claimants. These presented their requisitions to the Program Liaison Division where they were screened against allocations in order to ascertain, first, whether or not any allocation existed, and, second, whether the claimant had exceeded his allocation. In only exceptional cases were shipments made in excess of a firm allocation and when this did happen, shipments during the ensuing allocation period were correspondingly reduced. But even where this was done, emergency allocations were issued to cover the difference between the shipment and the original allocation.' Once the Program Liaison Division had made a determination, either that the allocation was sufficient to meet the request or that an exception should be made; the requisition was

72

WARTIME

POOD PROCUREMENT AND

PRODUCTION

t r a n s m i t t e d to the a p p r o p r i a t e c o m m o d i t y b r a n c h and to the T r a n s p o r t a t i o n and W a r e h o u s i n g B r a n c h for a p p r o p r i a t e a c t i o n . D e l i v e r y was then m a d e to the foreign c l a i m a n t on the b a s i s of the terms and c o n d i t i o n s c o n t a i n e d in the r e q u i s i t i o n . W h e n e v e r the s u p p l y w a s i n s u f f i c i e n t to m e e t the r e q u e s t s o f all the c l a i m a n t s , the P r o g r a m L i a i s o n D i v i s i o n w a s p e r m i t t e d to d i v i d e the e x i s t i n g s u p p l i e s a m o n g the v a r i o u s c l a i m a n t s . H o w e v e r , b e f o r e t a k i n g final a c t i o n , the D i v i s i o n c o n s u l t e d the C h i e f of the a p p r o p r i a t e C o m m o d i t y B r a n c h on the p r o b a b l e e f f e c t that such a c t i o n w o u l d h a v e on the p r o g ress of his p u r c h a s e p l a n s . It i n q u i r e d a b o u t the a v a i l a b i l ity o f rail and o t h e r t r a n s p o r t a t i o n f a c i l i t i e s . A n d f i n a l l y , it a s k e d the r e c i p i e n t s t h e m s e l v e s a b o u t the m a n n e r in w h i r h the d i v i s i o n of the a v a i l a b l e s u p p l i e s should be a c c o m plished. 10 T h r o u g h its c o n t r o l over the r e q u i s i t i o n s s u b m i t t e d by the c l a i m a n t s , the P r o g r a m Liaison D i v i s i o n , as w e h a v e p r e v i o u s ly n o t e d , w a s able b o t h to p r o g r a m and to e x p e d i t e the d i s p o s i t i o n of f o o d s t u f f s a c q u i r e d by the Food D i s t r i b u t i o n A d m i n i s tra ti on. Changes

in Procurement

Organization

A f t e r a y e a r of o p e r a t i o n s u n d e r these p r o c e d u r e s , the F o o d D i s t r i b u t i o n A d m i n i s t r a t i o n w a s s u p e r s e d e d by the O f f i c e of D i s t r i b u t i o n . E x i s t i n g m e t h o d s w e r e c o n t i n u e d but the o r g a n i z a t i o n a l c h a n g e s i g n i f i e d a still g r e a t e r e m p h a s i s on p r o c u r e m e n t . D u p l i c a t i o n s in r e s p o n s i b i l i t y w e r e e l i m i n a t e d , and the p r o c u r e m e n t a p p a r a t u s was s t r e a m l i n e d . F o r m e r l y in the Food D i s t r i b u t i o n A d m i n i s t r a t i o n c o m m o d i t y b r a n c h c h i e f s w e r e s u b j e c t to the s u p e r v i s i o n of two d e p u t i e s , one in c h a r g e of the c o m m o d i t y b r a n c h e s and the o t h e r w i t h s t a f f r e s p o n s i b i l i t y for p r o c u r e m e n t c o o r d i n a t i o n . In g e n e r a l , the b r a n c h d i r e c t o r s tended to follow the lead of the f o r m e r , s i n c e they had b e e n a s s o c i a t e d w i t h him for a l m o s t a q u a r t e r of a c e n t u r y in the e n f o r c e m e n t and r e g u l a t o r y work of the Dep a r t m e n t of A g r i c u l t u r e , l'ut in the p e r f o r m a n c e of t h e i r b u y ing f u n c t i o n s they w e r e bound by the d e c i s i o n s of the latter. U n d e r the O f f i c e of D i s t r i b u t i o n all d i v i d e d l o y a l t i e s w e r e d o n e a w a y . T h e c o m m o d i t y b r a n c h e s w e r e r e s t r i c t e d in t h e i r a c t i v i t i e s to m a r k e t i n g and r e g u l a t o r y w o r k . A l l o f their p r o c u r e m e n t f u n c t i o n s w e r e t r a n s f e r r e d to a P r o c u r e m e n t and P r i c e S u p p o r t P r a n c h and the latter was m a d e d i r e c t l y r e s p o n s i b l e to a D e p u t y D i r e c t o r for S u p p l y . T h e r e a f t e r all d o u b t s as to w h e r e final c o n t r o l over p r o c u r e m e n t rested w e r e resolved. ^ T h u s the r e o r g a n i z a t i o n in the s p r i n g of 1 9 4 4 r e s u l t e d in the c e n t r a l i z a t i o n of p r o c u r e m e n t a u t h o r i t y . T h e c r e a t i o n of the P r o c u r e m e n t and P r i c e S u p p o r t B r a n c h r e p r e s e n t e d a r e t u r n to the p a t t e r n of p r o c u r e m e n t i n i t i a l l y i n s t i t u t e d by the A g r i c u l t u r a l M a r k e t i n g A d m i n i s t r a t i o n . W i t h m i n o r c h a n g e s , it p r e v a i l e d for the b a l a n c e of the w a r .

COORDINATION OF FOOD PROCUREMENT Fiscal

Procedure

s for

Lend-Lease

Food

73

Transfers

The O f f i c e o f L e n d - L e a s e A d m i n i s t r a t i o n p a i d f o r f o o d t r a n s f e r s t o L e n d - L e a s e c o u n t r i e s by a d v a n c i n g f u n d s t o t h e F o o d D i s t r i b u t i o n A d m i n i s t r a t i o n on t h e b a s i s o f b u y i n g p l a n s w h i c h i t h a d a p p r o v e d . A f t e r a c l a i m a n t had o b t a i n e d s u c h a p proval, i t f i l e d a purchase r e q u i s i t i o n with the buying agency a n d u l t i m a t e l y t h i s s e r v e d a s t h e a u t h o r i z a t i o n f o r t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n t o a c q u i r e t h e f o o d s n e e d e d by t h e f o r e i g n G o v e r n m e n t . When f o o d d e l i v e r i e s w e r e made t o a c l a i m a n t , s u c h t r a n s f e r s w e r e f u r t h e r d o c u m e n t e d by a c o n t r a c t . On t h e b a s i s o f t h i s p a p e r , c h a r g e s w e r e made a g a i n s t t h e f u n d s o r i g i n a l l y a s s i g n e d t o t h e Food D i s t r i b u t i o n A d m i n istration. I t w i l l be r e c a l l e d t h a t d i r e c t l y a f t e r t h e p a s s a g e o f t h e L e n d - L e a s e A c t , t h e D e p a r t m e n t of A g r i c u l t u r e in a n t i c i p a t i o n of f o r e i g n n e e d e m b a r k e d upon an e x t e n s i v e p r o g r a m o f s t o c k p i l i n g in o r d e r t o d i s c h a r g e i t s f o o d p u r c h a s e f u n c t i o n m o r e e f f e c t i v e l y . F u n d s f o r t h i s p u r p o s e came o u t o f a r e v o l v i n g f u n d known a s t h e G e n e r a l C o m m o d i t i e s P u r c h a s e P r o g r a m . P u t f o o d s t o c k p i l i n g p r o v e d t o be an e x p e n s i v e o p e r a t i o n . Food was a p e r i s h a b l e i t e m and t h e r e was a l w a y s t h e p r o s p e c t of damage, s p o i l a g e and o t h e r l o s s e s . P u r c h a s i n g , transporti n g a n d w a r e h o u s i n g f o o d i t e m s c o n s t i t u t e d an a d d i t i o n a l c o s t . I f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n had n o t b e e n f u l l y r e i m b u r s e d f o r b o t h i t s c o m m o d i t y and o p e r a t i n g e x p e n d i t u r e s , the r e v o l v i n g fund would have been d e p l e t e d . To p r e v e n t t h i s , t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n o r i g i n a l l y c h a r g e d t h e c l a i m a n t s t h e p u r c h a s e p r i c e o f t h e commodi t i e s t r a n s f e r r e d plus a l l expenses o t h e r than a d m i n i s t r a t i v e . A m a r k - u p o f 2 p e r c e n t was a l s o made t o c o v e r a d m i n i s t r a t i v e e x p e n s e , i n t e r e s t a n d p r o s p e c t i v e l o s s . On May 1, 1 9 4 2 , b e c a u s e of t h e h u g e p r o f i t s , t h e 2 p e r c e n t c h a r g e was r e d u c e d to 1 p e r c e n t . 13 This procedure d e s i g n e d to p r o t e c t the r e v o l v i n g fund g r a d u a l l y c r y s t a l l i z e d i n t o a w o r k a b l e o p e r a t i n g s y s t e m . Py m i d 1943 s a l e s t o f o r e i g n g o v e r n m e n t s w e r e made i n t h e f o l l o w i n g f a s h i o n . P r i c e l i s t s f o r a l l i t e m s h e l d i n i n v e n t o r y by t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n w e r e e s t a b l i s h e d . T h e p r e p a r a t i o n o f s u c h a l i s t and i t s r e v i s i o n i n a c c o r d a n c e w i t h p r i c e c h a n g e s was a s s i g n e d t o t h e F i n a n c e and A c c o u n t s D i v i s i o n o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n , s u b j e c t t o t h e p r o v i s o t h a t no s a l e s p r i c e c o u l d become f i n a l u n l e s s i t h a d f i r s t r e c e i v e d t h e a p p r o v a l of t h e D i r e c t o r o r t h e A c t i n g D i r e c t o r o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n . C o p i e s of t h e s e l i s t s were g i v e n to the f o r e i g n governments and s e r v e d a s a c a t a l o g u e f o r them when t h e y d i d t h e i r s h o p p i n g f o r t h e i r foods tu f f s . A f t e r a r e q u i s i t i o n had b e e n s u b m i t t e d t o t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n , t h e a c t u a l s a l e s t r a n s f e r was d o c u m e n t e d by a s a l e s c o n t r a c t p r e p a r e d by t h e P r o g r a m L i a i s o n D i v i s i o n in c o n s u l t a t i o n w i t h t h e a p p r o p r i a t e commodity b r a n c h . C o p i e s

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o f the c o n t r a c t w e r e then furnished to the T r a n s p o r t a t i o n a n d W a r e h o u s i n g B r a n c h and the P r o g r a m A c c o u n t i n g S e c t i o n of the F i n a n c e and A c c o u n t s D i v i s i o n . A s food items moved out o f s t o r a g e to the c l a i m a n t , c o p i e s o f the commodity r e c e i p t s w e r e s u p p l i e d by the T r a n s p o r t a t i o n and W a r e h o u s i n g B r a n c h to the r e c i p i e n t and to the F i n a n c e and A c c o u n t D i v i s i o n . O n t h e b a s i s of this d o c u m e n t , c h a r g e s w e r e m a d e by the latter D i v i sion a g a i n s t the foreign g o v e r n m e n t . B e i n b u r s e m e n t w a s m a d e by the L e n d - L e a s e A d m i n i s t r a t i o n on the basis of these charges.** A l t h o u g h a d m i n i s t r a t i v e c h a n g e s were to take p l a c e in s u c c e e d i n g y e a r s , the p r o c e d u r e for making sales and t r a n s fers remained the same except for the fact that an o r g a n i z a tional unit w i t h a d i f f e r e n t name w a s given the r e s p o n s i b i l ity for L e n d - L e a s e a c c o u n t i n g o p e r a t i o n s . " Food

Procurement

Coordinat

ion

C o o r d i n a t i o n w a s basic to the e n t i r e job of food p r o c u r e m e n t . T h e c o m m o d i t y b r a n c h e s of the Food D i s t r i b u t i o n A d m i n istration p u r c h a s e d f o o d s t u f f s at the rate of 2 b i l l i o n d o l l a r s a y e a r . T h e a r m e d s e r v i c e s w e r e also b u y i n g food on an equally large s c a l e . If these a c t i v i t i e s had n o t been geared w i t h one a n o t h e r , each of the a g e n c i e s in the food p i c ture would have had an a d v e r s e e f f e c t on the food s u p p l y a v a i l a b l e to the p u b l i c . T h e first real e f f o r t to o b t a i n c o o r d i n a t i o n o c c u r r e d a f t e r the S e c r e t a r y of A g r i c u l t u r e received h i s food p r o c u r e m e n t a u t h o r i t y . ^ A s h o r t tiae a f t e r w a r d , h e delegated his p o w e r to the D i r e c t o r o f F o o d D i s t r i b u t i o n . W i t h i n the Food D i s t r i b u t i o n A d m i n i s t r a t i o n , the first s t e p in the d i r e c t i o n of p r o c u r e m e n t c o n t r o l w a s the a s s i g n m e n t to the D e p u t y D i r e c t o r for P r o c u r e m e n t C o o r d i n a t i o n of the " a u t h o r i t y for c o o r d i n a tion and d i r e c t i o n of all p r o c u r e m e n t m a t t e r s at the s t a f f level."" A s a result of this a s s i g n m e n t , the a c t i v i t i e s of the v a r i o u s p u r c h a s i n g u n i t s w i t h i n the Food D i s t r i b u t i o n A d m i n i s t r a tion were to be b r o u g h t into p r o p e r focus in order that a s i n g l e u n i f i e d a p p r o a c h to the p r o c u r e m e n t problem m i g h t be o b t a i n e d . C o m m o d i t y b r a n c h chiefs or their r e p r e s e n t a t i v e s w e r e expected to p r e p a r e p u r c h a s e p l a n s for each c o m m o d i t y to be bought. M o r e o v e r , at least once a w e e k they were r e q u i r e d to submit a report on the p r o g r e s s u n d e r the various p u r c h a s e p l a n s . This review e n a b l e d the D e p u t y to recommend s u c h a c t i o n as he t h o u g h t n e c e s s a r y to insure the effective d i s c h a r g e of the p r o c u r e m e n t o p e r a t i o n . F i n a l l y , the Deputy, as the p e r s o n al r e p r e s e n t a t i v e of the D i r e c t o r of Food D i s t r i b u t i o n , w a s to report to the latter at least once a month on the c u r r e n t s t a tus of all p r o c u r e m e n t p r o g r a m s . "

COORDINATION OF FOOD PROCUREMENT The

Inter-Agency

Food

Procurement

75

Commi t tee

T h u s , in i t s i n t e r n a l p r o c u r e m e n t o p e r a t i o n s , t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n o b t a i n e d an i n t e g r a t e d d i r e c t i o n o f p r o c u r e m e n t t h r o u g h t h e s u p e r v i s i o n o f s u c h o p e r a t i o n s by o n e o f i t s Deputy D i r e c t o r s . P u t , of c o u r s e , t h i s »as only h a l f o f t h e p r o b l e m . What w a s t o be d o n e a b o u t t h e p u r c h a s e s o f o u t s i d e a g e n c i e s , s u c h a s t h e armed s e r v i c e s ? T o a c c o m p l i s h t h e l a t t e r t a s k an i n t e r - a g e n c y c o m m i t t e e , known a s t h e I n t e r - A g e n c y Food P r o c u r e m e n t C o m m i t t e e , w a s e s t a b l i s h e d . I t s membership c o n s i s t e d o f the D i r e c t o r o f Food D i s t r i b u t i o n , h i s Deputy f o r Procurement C o o r d i n a t i o n as v i c e c h a i r m a n , an e x e c u t i v e s e c r e t a r y , and r e p r e s e n t a t i v e s f r o m t h e War and N a v y D e p a r t m e n t , t h e War P r o d u c t i o n B o a r d , t h e O f f i c e of P r i c e A d m i n i s t r a t i o n , the Board o f Economic W a r f a r e and t h e Commodity C r e d i t C o r p o r a t i o n . I n s h o r t , a l l o f t h e f o o d p u r c h a s i n g a g e n c i e s « e r e g i v e n s e a t s on t h e new c o m m i t tee.» T h e s c o p e o f t h e new c o m m i t t e e ' s a c t i v i t y c a n b e g l e a n e d from the agenda o f i t s f i r s t m e e t i n g . I t « a s t o c o n s i d e r t h e f o l l o w i n g f o o d p r o c u r e m e n t p r o b l e m s : p u r c h a s e m e t h o d s and p r o cedures, price p o l i c i e s , inter-agency transfers, transportat i o n , packaging, warehousing, s t o c k p i l i n g , food s p e c i f i c a t i o n s , t h e t i m e s o f p u r c h a s e s by t h e v a r i o u s g o v e r n m e n t a l a g e n c i e s , food o r d e r s d e s i g n e d t o c o n t r o l the volume o f f o o d s t u f f s bought, a s s o c i a t e d problems r e l a t e d to the e f f e c t i v e and e f f i c i e n t f u n c t i o n i n g o f f o o d p r o c u r e m e n t a s i t i n v o l v e d i n t e r - a g e n c y p r o c u r e m e n t r e l a t i o n s h i p s . Thus a l l m a t t e r s i n v o l v i n g more t h a n one a g e n c y w e r e t o b e b r o u g h t b e f o r e t h i s Committee f o r c o n s i d e r a t i o n b e f o r e they were c o n s i d e r e d fin a l l y by t h e Food A d v i s o r y C o m m i t t e e , a b o d y w h i c h a c t e d a s t h e a d v i s o r t o t h e S e c r e t a r y o f A g r i c u l t u r e a n d l a t e r t h e War Food A d m i n i s t r a t o r . In f u r t h e r a m p l i f i c a t i o n o f t h e work o f t h e C o m m i t t e e , t h e C h a i r m a n w e n t on t o s t a t e : " W e , a s a c o m m i t t e e , n e e d t o know t h e c u r r e n t s t a t i s t i c a l p o s i t i o n on a c c o m p l i s h m e n t , t h e r e a s o n f o r f a i l u r e t o m e e t c u r r e n t r e q u i r e m e n t s , and t h e s t o c k p o s i t i o n b e f o r e we c a n g e t a t t h e r o o t o f t h e p r o b l e m s a r i s i n g i n p r o c u r e m e n t and t o r e s o l v e them on an i n t e r - a g e n c y b a s i s . We s h o u l d , h o w e v e r , d e v e l o p a s y s t e m o f r e p o r t i n g from e a c h a g e n cy to the Committee which would d i s c l o s e the r e l e v a n t facts. I t was t h e g a t h e r i n g o f r e l e v a n t f a c t s i n r e g a r d t o p r o c u r e ment w h i c h was t h e k e y n o t e o f c o m m i t t e e a c t i o n . U n f o r t u n a t e l y t h e s e c u r i t y n e e d s o f t h e armed f o r c e s s o m e t i m e s p r e v e n t e d the a t t a i n m e n t of t h i s g o a l . D e s p i t e the b r o a d l y s t a t e d p u r p o s e , the committee took a r a t h e r modest view of i t s f u n c t i o n s . I t held weekly m e e t i n g s and w h e n e v e r d i s c u s s i o n s r e q u i r e d f u r t h e r s t u d y , i t a p p o i n t e d s u b - c o m m i t t e e s t o d e v e l o p f u r t h e r b a c k g r o u n d and r e c o m m e n d a t i o n s on s p e c i f i c p r o b l e m s . One o f t h e f i r s t q u e s t i o n s c o n s i d e r e d by i t w a s t h e d e s i g n a t i o n o f a g e n c i e s f o r w h i c h s e p a r a t e a l l o c a t i o n s w e r e t o b e e s t a b l i s h e d . T h i s was i m p o r t a n t ,

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s i n c e not o n l y was t h e a l l o c a t i o n the b a s i s o f p r o c u r e m e n t but a l s o t h o s e a g e n c i e s r e c e i v i n g a l l o c a t i o n s were by v i r t u e o f t h a t f a c t exempt from the q u o t a r e s t r i c t i o n s c o n t a i n e d in f o o d p r o c u r e m e n t o r d e r s . Thus i f a m a n u f a c t u r e r were r e s t r i c t e d in h i s p r o d u c t i o n o f a f o o d i t e m t o , l e t us s a y , 60 p e r c e n t o f h i s 1941 p r o d u c t i o n , he c o u l d m a n u f a c t u r e o v e r and a b o v e t h i s amount f o r an a g e n c y r e c e i v i n g an a l l o c a t i o n . D e t e r m i n a t i o n o f w h e t h e r or n o t an a g e n c y was e n t i t l e d t o a s e p a r a t e a l l o c a t i o n h i n g e d on the e x t e n t t o which i t c o n t r i b u t e d t o the war e f f o r t . The e x t r e m e c a s e s w e r e e a s i l y a s c e r t a i n a b l e . But t h e r e w e r e b o r d e r l i n e c a s e s such as the P o s t Exchanges, the Red C r o s s , and s i m i l a r a g e n c i e s , and on t h e s e t h e d e c i s i o n t o be made was n o t so e a s y . A f t e r c o n s i d e r a b l e d i s c u s s i o n , it. was d e c i d e d t h a t s e p a r a t e a l l o c a t i o n would be s e t up f o r the f o l l o w i n g g r o u p s : ( 1 ) the armed f o r c e s , i n c l u d i n g the P o s t E x c h a n g e s ; ( 2 ) L e n d - I . e a s e and o t h e r f o r e i g n g o v e r n m e n t s s p e c i f i c a l l y p r o v i d e d f o r under p r o t o c o l s , such as R u s s i a ; ( 3 ) r e l i e f a g e n c i e s such as the Red C r o s s and the O f f i c e o f F o r e i g n R e l i e f and R e h a b i l i t a t i o n O p e r a t i o n s ; ( 4 ) the V e t e r a n s A d m i n i s t r a t i o n ; ( 5 ) t e r r i t o r i e s ; ( 6 ) the M a r i t i m e Commission and the War S h i p p i n g A d m i n i s t r a t i o n ; and f i n a l l y , ( 7 ) the Board o f Economic W a r f a r e . ^ A n o t h e r and e q u a l l y i m p o r t a n t p r o b l e m r e q u i r i n g some s o l u t i o n was the manner i n which g o v e r n m e n t a l a g e n c i e s a c q u i r e d f o o d s s e t a s i d e f o r t h e i r e x c l u s i v e use under v a r i o u s f o o d r e s e r v a t i o n o r d e r s . S i n c e most f o o d s w e r e bought under such o r d e r s , i t meant t h a t d e t e r m i n a t i o n s o f t h e committee would r e s u l t in b o t h a c l a r i f i c a t i o n and a r e v i s i o n o f e x i s t i n g procurement p r o c e d u r e s . A s u b - c o m m i t t e e was g i v e n the task o f s t u d y i n g the problem and p r e p a r i n g s u i t a b l e recommendations f o r the c o n s i d e r a t i o n o f the f u l l c o m m i t t e e . As a r e s u l t o f the r e p o r t o f the s u b - c o m m i t t e e , i t was a g r e e d by the f u l l c o m m i t t e e t h a t o n l y the War Department and the Food D i s t r i b u t i o n A d m i n i s t r a t i o n would p u r c h a s e f o o d s s e t a s i d e by r e s e r v a t i o n o r d e r s . Each o f t h e s e a g e n c i e s would then make sub-a 11 o c a t i o i l s t o the o t h e r c l a i m a n t s . ^ T h i s recommendation was b u t t r e s s e d by the f o o d o r d e r i s s u i n g power o f the Food D i s t r i b u t i o n A d m i n i s t r a t i o n . T h e r e a f t e r , a l l f o o d o r d e r s c o n t a i n e d a s t a n d a r d c l a u s e d e s i g n a t i n g the War Department or the Food D i s t r i b u t i o n A d m i n i s t r a t i o n , or b o t h , as e x c l u s i v e g o v e r n m e n t a l p u r c h a s e r s . Each r e s e r v a t i o n o r d e r was accompanied by a memorandum o f u n d e r s t a n d i n g o u t l i n i n g in g r e a t d e t a i l the s p e c i f i c p u r c h a s e methods t o be e m p l o y e d . Each f o o d o r d e r b e f o r e f i n a l i s s u a n c e was a l s o subm i t t e d to the I n t e r - A g e n c y Food P r o c u r e m e n t Committee f o r r e v i e w and c o n c u r r e n c e by member a g e n c i e s . The e f f e c t o f p r i c e c e i l i n g s on g o v e r n m e n t a l procurement was a l s o c o n s i d e r e d by the i n t e r - a g e n c y c o m m i t t e e . F e d e r a l a g e n c i e s a t t e m p t i n g t o buy i t e m s in s h o r t s u p p l y r e p o r t e d t h a t the v e n d o r s p r e f e r r e d t o s e l l t o the c i v i l i a n m a r k e t . T h i s tendency was a t t r i b u t e d t o the f a c t t h a t p r i c e c e i l i n g s

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77

a l l o w e d a g r e a t e r p r o f i t m a r g i n on s a l e s t o c o m m e r c i a l c h a n n e l s . I t was r e c o g n i z e d t h a t t h e G o v e r n m e n t h a d t h e p o w e r through i t s r e s e r v a t i o n o r d e r s t o compel the commercial s u p p l i e r t o make h i s p r o d u c t a v a i l a b l e t o f e d e r a l a g e n c i e s b u t i t was f e l t t h a t t o do s o w o u l d n o t b e a w i s e p o l i c y . I n s t e a d a sub-committee recommendation s u g g e s t i n g t h a t the government p r i c e c e i l i n g be a d j u s t e d upward t o m e e t t h e c o m p e t i t i o n of t h e e s t a b l i s h e d c o m m e r c i a l m a r k e t p r i c e was a d o p t e d . L a t e r t h i s became t h e g o v e r n i n g p r a c t i c e of a l l f e d e r a l a g e n c i e s . These examples i l l u s t r a t e the manner in which the I n t e r A g e n c y Food P r o c u r e m e n t C o m m i t t e e f u n c t i o n e d . I t d i d n o t p e r h a p s e n t i r e l y f u l f i l l t h e w i s h e s of i t s s p o n s o r s . But t o do s o would have r e q u i r e d t h e e x e r c i s e of powers t h a t i t c l e a r l y d i d not have. I t was, however, a s t e p in the r i g h t d i r e c t i o n . I t p r o v i d e d a forum f o r t h e r a t h e r f r e e and e a s y e x c h a n g e of i n f o r m a t i o n on p r o c u r e m e n t p r a c t i c e a n d p e r f o r m a n c e . I t s d e t e r m i n a t i o n s were i n c o r p o r a t e d in i n t e r - a g e n c y memoranda of u n d e r s t a n d i n g a n d , when t h e s e w e r e l i n k e d w i t h f o o d p r o c u r e m e n t o r d e r s , an i m p o r t a n t c o n t r i b u t i o n was made t o t h e c o o r d i n a t i o n of f e d e r a l food b u y i n g . ^ The

Ifar Meat

Board

I n t h e y e a r 1 9 4 3 t h e demand o f m e a t a t p r e v a i l i n g p r i c e s w a s f a r i n e x c e s s of s u p p l y . M i l i t a r y a n d a l l i e d n e e d s w e r e w e l l o v e r 7 b i l l i o n p o u n d s . C i v i l i a n c o n s u m p t i o n was e s t i m a t e d a t an a n n u a l r a t e o f 2 0 b i l l i o n p o u n d s . The t o t a l o f b o t h d e m a n d s was c o n s i d e r a b l y i n e x c e s s o f t h e 23 b i l l i o n pounds of meat and m e a t p r o d u c t s t h e n a v a i l a b l e . Through t h e u s e of meat r e s t r i c t i o n o r d e r s c i v i l i a n u s a g e was r e d u c e d t o 7 5 p e r c e n t o f t h e b a s e y e a r 1 9 4 1 . Food o r d e r s No. 26 and 27 s o u g h t t o s p r e a d t h e s l a u g h t e r o f l i v e s t o c k more e q u i t a b l y among d i f f e r e n t a r e a s o f t h e c o u n t r y . N o n e t h e l e s s , b o t h t h e Army a n d t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n e x p e r i e n c e d d i f f i c u l t y in m e e t i n g t h e i r procurement schedules.2^ In May 1 9 4 3 t h e War M e a t B o a r d , an i n t e r - d e p a r t m e n t a 1 c o m m i t t e e , was e s t a b l i s h e d w i t h t h e C h i e f o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n ' s L i v e s t o c k and M e a t s B r a n c h a s C h a i r m a n . I t s m a i n p u r p o s e was t o e x a m i n e t h e o p e r a t i o n of e x i s t i n g m e a t procurement programs and, where b u y i n g s c h e d u l e s were n o t bei n g m e t , t o recommend c o r r e c t i v e m e a s u r e s . In d o i n g t h i s i t was t o t a k e s u c h a c t i o n a s i t r e g a r d e d a s " n e c e s s a r y o r a d v i s a b l e in d i v i d i n g and d i s t r i b u t i n g t h e n a t i o n a l meat s u p p l y , in a c c o r d a n c e w i t h t h e p o l i c i e s of t h e a l l o c a t i n g a g e n c y i n W a s h i n g t o n : ( 1 ) t o a s s u r e t h e p r o p e r d i s t r i b u t i o n of m e a t ; ( 2 ) to p r o v i d e the armed f o r c e s w i t h i t s a l l o c a t e d q u a n t i t i e s of meat; (3) to p r o v i d e o t h e r exempt g o v e r n m e n t a l a g e n c i e s w i t h t h e i r r e q u i r e m e n t s . " I t s main o b j e c t i v e , i n o t h e r w o r d s , was " t o t r a n s l a t e t h i s a l l o c a t i o n i n t e r m s o f a c t u a l s u p p l i e s . " 2 " L a t e r t h e o r g a n i z a t i o n of t h e War M e a t B o a r d was

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e n l a r g e d by the appointment of managers in charge of pork s u p p l i e s , beef s u p p l i e s , v e a l , lamb and mutton s u p p l i e s , and canned meats. To a c h i e v e adequate management of the a v a i l a b l e meat s u p p l i e s , i n d u s t r y c o o p e r a t i o n was needed. I t « a s the i n t e n t of the o r i g i n a l c h a r t e r of o p e r a t i o n t h a t r e p r e s e n t a t i v e s of the p a c k e r s , producers and other segments of i n d u s t r y would a s s i s t the War Meat Board. These, grouped i n t o an i n d u s t r y a d v i s o r y committee, not only gave the government o f f i c i a l s t h e i r a d v i c e and counsel but a l s o c a r r i e d out the p o l i c y dec i s i o n s of the Board » i t h r e s p e c t to the d i v i s i o n of m e a t s . " The War Meat Board, of c o u r s e , could only make s u g g e s t i o n s in t h i s r e s p e c t but behind these r e q u e s t s was the i m p l i c a tion t h a t the Government could r e s o r t to s a n c t i o n s . The War Meat Board functioned much in the same manner a s the Inter-Agency Food Procurement Committee except t h a t i t s work was r e l a t e d to a s i n g l e commodity. I t s a c t i o n s were des i g n e d to find out why meat animals were not r e a c h i n g the market f a s t enough and to recommend measures to s t i m u l a t e more r a p i d m a r k e t i n g . Once the meat had been p r o c e s s e d , i t sought to d i s c o v e r where meat and meat products were g o i n g . On the b a s i s of the f a c t s g a t h e r e d , i t was in a p o s i t i o n to recommend p o l i c y which, when accepted by the member a g e n c i e s , served as a uniform governmental procurement p l a n . Such p o l i c y « a s u s u a l l y c r y s t a l l i z e d in the form of a food order and f e d e r a l a g e n c i e s « e r e then bound by i t s p r o v i s i o n s . The War Meat Board soon became the " n e r v e c e n t e r " of the meat i n d u s t r y . Through v e e k l y and monthly r e p o r t s from the packing i n d u s t r y i t « a s a b l e to m a i n t a i n a c u r r e n t p i c t u r e of the p r o g r e s s of meat production. At i t s weekly m e e t i n g s the Board « a s a b l e to p r e s e n t i t s members « i t h a c c u r a t e s t a t i s t i c s on the t o t a l amount of meat t h a t « o u l d be made a v a i l a b l e for t h e i r u s e . Member a g e n c i e s s t a t e d t h e i r needs and, «hen supply and demand were not in b a l a n c e , the Board could recommend to p a c k e r s through the i n d u s t r y a d v i s o r y committee t h a t f u r t h e r q u a n t i t i e s be d i v e r t e d from normal commercial c h a n n e l s to meet the buying s c h e d u l e s of the f e d e r a l a g e n c i e s . At the same time c u r r e n t data on meat s t o c k s enabled the Board to gauge the t o t a l impact of governmental p u r c h a s i n g on c i v i l i a n supply and placed i t in a p o s i t i o n to propose changes in consumer r a t i o n i n g programs in order to m i n i mize the impact of s h o r t a g e s . " I t must be remembered, however, t h a t d e s p i t e the e x e r c i s e of t h e s e powers, the Board had no d i r e c t i n g pover of i t s own. Whatever a u t h o r i t y i t had d e r i v e d from an i n i t i a l agreement e n t e r e d i n t o by the governmental a g e n c i e s engaged in the buyi n g of meat. P o l i c y d e c i s i o n s had to be implemented by the p a r t i c i p a t i n g a c t i o n a g e n c i e s a t the Washington l e v e l . Thus a d e c i s i o n to make more meat a v a i l a b l e to the armed f o r c e s • e a n t t h a t the Army would have to a g r e e to s t e p up i t s procurement, w h i l e the O f f i c e of P r i c e A d m i n i s t r a t i o n would

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promise to increase point values on meat and thus decrease the amount of the commodity available to the civilian population. Action agencies could, if they chose, ignore the policies of the War Meat Board and operate independently. In general, however, it might be said that agencies worked together in desirable harmony, for it was recognized that they could not function effectively on an independent basis. Much of the Board's moral authority over its members stemmed from this belief. If there was any hesitation to cooperate, it was tempered by a general realization that the food order of December 5, 1942, gave the Secretary of Agriculture and later the War Food Administrator the right to assume complete control over all federal food procurement. None of the member agencies could fail to recall the events that had led to the transfer of the food authority to the Department of Agriculture, and this served as a constant reminder of the need for cooperation. 3 ' Moreover, this realization was buttressed by the fact that the Chairman of the War Meat Board was also a member of the Inter-Agency Food Procurement Committee. Through this hierarchy of command he could bring his problems to the attention of the Director of Food Distribution and ultimately the War Food Administrator. 3 * The War Meat Board continued to function until the end of the war, when it was reorganized as the United States Department of Agriculture Meat Board. 3 3 It did not entirely fulfill the hopes of the War Food Administrator, who had expressed the view that its successful operation would serve as a prototype for the handling of procurement problems for other major agricultural products. Although the general acceptance of the " c z a r " approach with respect to the procurement of other commodities did not materialize, the War Meat Board did supply the War Food Administration with an accurate statistical basis for making competent decisions as to the distribution of supplies of meat and meat products. The Dairy

Procurement

Board

Despite increased governmental purchasing, the supply of dairy products remained plentiful until the last quarter of 1942. Until then few controls had been instituted and the industry as a whole had been relatively free from governmental regulation. But during the last quarter of that year reports of temporary shortages and maldistribution made it evident that more governmental action would have to be undertaken to avoid a more serious situation. 3 * In the fourth quarter of 1942, however, steps were taken to spread the available supply of dairy products in order that the needs of both civilian and claimant groups might be more adequately met. These measures took three forms: the issuance of limitation orders to restrict the use of milk for various products, the controlled distribution of limited supplies of

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p a r t i c u l a r k i n d s o f d a i r y p r o d u c t s to c i v i l i a n s , and f i n a l l y , the u s e o f s e t - a s i d e o r d e r s w h i c h d i r e c t e d the p r o c e s s o r s of d a i r y p r o d u c t s to r e s e r v e a s p e c i f i c p o r t i o n o f their p r o d u c tion for the e x c l u s i v e u s e of g o v e r n m e n t a l a g e n c i e s . T h i s a l m o s t c o m p l e t e c h a n g e from r e l i a n c e u p o n the a u t o m a t i c laws of s u p p l y and d e m a n d to e f f e c t the p r o p e r d i s t r i b u t i o n of s u p p l i e s in the m a r k e t p l a c e to a s t r o n g p r o g r a m of g o v e r n m e n t a l r e g u l a t i o n i n v o l v e d the a s s u m p t i o n of g o v e r n m e n t a l res p o n s i b i l i t y for an i n f i n i t e v a r i e t y of p r o b l e m s , for the o r g a n i z a t i o n of the d a i r y i n d u s t r y was m o s t c o m p l e x . Its u n i t s , b o t h large and s m a l l , w e r e s c a t t e r e d t h r o u g h o u t the land. I n d u s t r y b e h a v i o r , m o r e o v e r , on b o t h the p r o d u c t i o n and e n d - u s e s o f m i l k , w a s e x t r e m e l y s e n s i t i v e to c h a n g e s in the price structure. Dairy products, moreover, were either perisha b l e or s e m i - p e r i s h a b 1 e . T h e d e c i s i o n to i n s t i t u t e c o n t r o l s w a s u n d e r t a k e n r e l u c t a n t l y and only b e c a u s e o f t e n the d a i r y item p r o d u c e d in r e s p o n s e to the p r o f i t factor w a s not the p r o d u c t n e e d e d by the G o v e r n m e n t . ® In a d d i t i o n to the c o m p l e x i t y of the i n d u s t r y and the p e r i s h a b i l i t y of d a i r y p r o d u c t s , further c o m p l i c a t i o n s e x i s t e d in the d i v i s i o n of a u t h o r i t y for the p u r c h a s e of s u c h p r o d u c t s . T h e l a r g e s t b u y e r s of dairy p r o d u c t s w e r e the armed f o r c e s , and the W a r Food A d m i n i s t r a t i o n . M o r e o v e r , the latter a g e n c y w a s r e s p o n s i b l e for the a l l o c a t i o n of dairy p r o d u c t s to c l a i m ant a g e n c i e s , and, f u r t h e r for the i m p l e m e n t a t i o n of such a l l o t m e n t s . It faced the fact that if the a c t i v i t i e s of the a r m e d f o r c e s w e r e u n c o n t r o l l e d , s u c h large a m o u n t s of d a i r y p r o d u c t s c o u l d be a c q u i r e d by the latter that in the e v e n t of s h o r t a g e s the a l l o c a t i o n s would b e c o m e m e a n i n g l e s s . F i n a l l y , p r i c e , the b a r o m e t e r of industry b e h a v i o r , w a s by law the p r o v i n c e o f the O f f i c e o f P r i c e A d m i n i s t r a t i o n . In b r i e f , the W a r Food A d m i n i s t r a t i o n had to r e g u l a t e the d a i r y i n d u s t r y in the i n t e r e s t of d e s i r e d war p r o d u c t i o n and d i s t r i b u t i o n , but to a c h i e v e p r o p e r f u l f i l l m e n t of this p r o g r a m it had to w a i t u p o n the a c t i v i t i e s o f a g e n c i e s o u t s i d e of its j u r i s d i c t i o n . T h e r e was the p o s s i b i l i t y that the l a t t e r by their a c t i o n s m i g h t d i s t u r b the d e l i c a t e b a l a n c e of i n d u s t r y g o v e r n m e n t r e l a t i o n s so e s s e n t i a l to the s u c c e s s of the d a i r y p r o g r a m for w h i c h the W a r Food A d m i n i s t r a t i o n w a s u l t i m a t e l y responsible. T h e War Food A d m i n i s t r a t i o n r e c o g n i z e d the e x i s t e n c e of these b a s i c factors. In m i d - 1 9 4 3 its I n t e r - A g e n c y Food P r o c u r e m e n t C o m m i t t e e a p p o i n t e d a s u b - c o m m i 1 1 e e to survey the p r o b l e m and to m a k e r e c o m m e n d a t i o n s for m o r e e f f e c t i v e c o o r d i n a t i o n . A f t e r c o n s i d e r a b l e study the s u b - c o m m i t t e e r e c o m m e n d e d the c r e a t i o n of an i n t e r - a g e n c y p r o c u r e m e n t b o a r d p a t t e r n e d a f t e r the W a r M e a t B o a r d with e f f e c t i v e p o w e r s of s u p e r v i s i o n o v e r the d a i r y p r o c u r e m e n t a c t i v i t i e s of the v a r i o u s federal a g e n c i e s . A c c e p t a n c e of this p r o p o s a l by the full c o m m i t t e e , the D i r e c t o r of the Food D i s t r i b u t i o n A d m i n i s t r a t i o n , and the W a r Food A d m i n i s t r a t o r was followed by the e s t a b l i s h m e n t in N o v e m b e r 1943 of the D a i r y P r o c u r e m e n t H o a r d . ^

COORDINATION OF FOOD PROCUREMENT

81

A g a i n , an i n t e r - d e p a r t m e n t a 1 memorandum o f u n d e r s t a n d i n g was t h e b a s i s f o r g a i n i n g i n t e r - a g e n c y c o o p e r a t i o n . The a g r e e ment s e r v e d a s t h e B o a r d ' s c h a r t e r of o p e r a t i o n , i t b e i n g a s sumed t h a t t h e p a r t i c i p a t i n g a g e n c i e s w o u l d be bound by i t s p r o v i s i o n s . I n v i e w o f i t s o r i g i n , i t was n o t s u r p r i s i n g t h a t t h e D a i r y P r o c u r e m e n t B o a r d was t o f u n c t i o n a s a " c o n t i n u o u s l y o p e r a t i n g a g e n c y o f t h e I n t e r - A g e n c y Food P r o c u r e m e n t Comm i t t e e a n d when n e c e s s a r y i t w o u l d b r i n g p r o b l e m s t o t h a t Committee f o r c o n s i d e r a t i o n . The a u t h o r i t y of t h e D a i r y P r o c u r e m e n t Board c o v e r e d t h e whole range of d a i r y p r o c u r e m e n t . I t was: (1) t o c o o r d i n a t e e x i s t i n g d a i r y procurement programs, but the a c t u a l " e x t e n t of t h e c o o r d i n a t i o n w i l l be a l t e r e d from time t o time i n a c c o r d a n c e w i t h t h e e x i g e n c i e s of t h e c u r r e n t and p r o s p e c t i v e s i t u a t i o n " ; ( 2 ) t o s t u d y t h e s u p p l y and p r i c e c o n d i t i o n s a f f e c t i n g d a i r y p r o d u c t s a n d t o recommend a c t i o n t o t h e a p p r o p r i a t e member a g e n c y ; ( 3 ) t o d e v e l o p c i v i l i a n r a t i o n i n g a n d a g a i n t o recommend a p p r o p r i a t e a c t i o n t o be t a k e n ; and ( 4 ) t o m a i n t a i n a c o n t i n u o u s s u r v e y of t h e " o p e r a t i o n s of s e t - a s i d e orders, seasonal purchase schedules, grading, packaging, f l u i d m i l k s u p p l i e s and o t h e r m a t t e r s n e e d i n g c l o s e c o o r d i n a t i o n among G o v e r n m e n t a g e n c i e s . " " A l l o f t h e a g e n c i e s who w e r e p a r t i e s t o t h e a g r e e m e n t w e r e a w a r e o f t h e f a c t t h a t t h e i r p r o c u r e m e n t p r o b l e m s would n o t be c o m p l e t e l y s o l v e d t h e r e b y . B u t i t was f e l t t h a t t h e D a i r y P r o c u r e m e n t P o a r d was a t l e a s t a s t e p i n t h e r i g h t d i r e c t i o n . I f n o t h i n g e l s e w e r e a c c o m p l i s h e d , t h e m e r e m e e t i n g of r e s p o n s i b l e r e p r e s e n t a t i v e s of t h e p u r c h a s i n g a g e n c i e s would c o n t r i b u t e to a f u l l e r u n d e r s t a n d i n g of the problems e n c o u n t e r e d . M o r e o v e r , a n y d e c i s i o n s t h a t t h e B o a r d w o u l d make w o u l d c a r r y g r e a t e r w e i g h t t h a n i n d i v i d u a l r e c o m m e n d a t i o n s by t h e v a r i o u s a g e n c i e s . A common m e e t i n g g r o u n d , i t was h o p e d , w o u l d f a c i l i tate administrative action. To i n s u r e t h a t t h e D a i r y P r o c u r e m e n t B o a r d w o u l d b e m o r e t h a n j u s t a m e r e t a l k i n g s h o p , t h e memorandum o f u n d e r s t a n d i n g p r o v i d e d t h a t a l l of t h e agency r e p r e s e n t a t i v e s s h o u l d be c l o a k e d w i t h r e a l a u t h o r i t y . Each member was g i v e n f u l l p o w e r t o a c t f o r h i s a g e n c y a n d when d e c i s i o n s w e r e a r r i v e d a t by t h e B o a r d , h e was t o h a v e t h e r e s p o n s i b i l i t y f o r t a k i n g s u c h s t e p s as were n e c e s s a r y " t o put the recommendation i n t o e f f e c t , a c t i n g u n d e r t h e a u t h o r i t y d e l e g a t e d t o him by t h e a g e n c y w h i c h he r e p r e s e n t s . " 4 0 Each g o v e r n m e n t a g e n t k e p t t h e f u l l Board i n f o r m e d of t h e a c t i v i t i e s of h i s a g e n c y , p a r t i c i p a t e d i n i t s d e l i b e r a t i o n s , and when d e c i s i o n s w e r e a r r i v e d a t , u n d e r t o o k t h e t a s k of i n t e r p r e t i n g the B o a r d ' s a c t i o n t o h i s a g e n c y . T h u s , by b r i n g i n g t o g e t h e r key and a u t h o r i t a t i v e p e r s o n n e l o f t h e a g e n c i e s , e f f e c t i v e a c t i o n was t o be a c h i e v e d . /Activities

of

the

Dairy

Procurement

Board

The k i n d s o f a c t i o n s u n d e r t a k e n by t h e D a i r y P r o c u r e m e n t Board were r e v e a l e d in i t s r e p o r t s . In i t s e a r l y m e e t i n g s i t

82

W A R T I M E POOD P R O C U R E M E N T AND

PRODUCTION

noted that milk was being diverted from more to less essential uses. It, therefore, addressed itself to the general problem of formulating a program to channel the commodity back to its more important uses. Later the Board recommended a limitation order restricting the production of all non-cheddar type cheeses, an increase in the price of roller process dry skim milk, and the establishment of dollar and cents ceiling prices for four bulk condensed milk products. Such action concerned both the Food Distribution Administration of the War Food Administration and the Office of Price A d m i n i s t r a t i o n , and designees of both agencies on the Board were requested to ask to implement Board recommendations. The Board vas also successful in solving the difficulties arising from the different purchase practices of the armed services and the War Food Administration. The former paid all assembly plants an allowance of one-half cent per pound on dry skim milk, w h i l e the latter paid the allowance only to certain plants. Such a condition led to confusion and protest upon the part of the trade. In the main the situation arose because the Office of Price Administration had not made a decision on the adoption of a uniform price policy. The Board recommended the issuance of a uniform price ceiling and the Office of Price Administration representative promised that his agency would implement the d e c i s i o n . ^ Steps were also taken to obtain a current picture of dairy supplies. Each member agreed to make weekly reports showing the amounts of evaporated and powdered milk his agency had acquired. This data when compared with production statistics gave the Board a measure of the drain on the national supply and enabled it more adequately to formulate its policies. 4 ® Governmental policy on butter purchases under set-aside orders was also considered and approved. Each procurement agency agreed to buy only to the extent of its requirements but not in excess of its needs. Each member agency further promised that it would obtain the bulk of its butter needs duriiig the heavy producing months of April through September for the succeeding twelve months. " T h e purpose of the set-aside order," said the statement, " w i l l be primarily to aid in procurement by assuring availability of the major part of the principal government requirements."** Price support programs of the War Food Administration were to be carried out by a policy of being ready to accept any or all of the butter offered to the War Food Administration at the support price. A working procedure was also formulated in regard to packaging, grades, and limitations on the amounts of butter which could be held by r e c e i v e r s . ^ In March of 1944 the Board recommended to its participating agencies that the set-aside percentage for butter for the month of April be set at 10 per cent of the production. For its part, the armed forces agreed to modify their procurement schedules in conformance with this recommendation.

COORDINATION OF POOD PROCUREMENT

83

Gradually the Dairy Procurement Board became the recognized instrument which formulated government-wide policy for the procurement of dairy products. Its membership prepared analyses of the problems faced by the Board. When a determination was made by the Board, its decision was referred to the InterAgency Food Procurement Committee for further action. Food orders regulating the distribution of dairy products were submitted to the Board by the parent committee for review and analysis, and its comments were carefully considered before a proposed order affecting dairy products was adopted. Moreover, since the Chairman of the Dairy Procurement Board was also the head of the Dairy and Poultry Branch of the Food Distribution Administration, it was kept constantly advised of incipient action taken by the War Food Administration. The work of the Dairy Procurement Board did much to restore the unity among the federal agencies engaged in dairy products procurement. Thus again by providing a forum for the discussion of common problems a unified approach was made to a commodity problem which in its varied aspects cut across the jurisdictional lines of several federal agencies. The Dairy Procurement Board's authority was derived mainly from the memorandum of understanding which created it. Yet by consent, persuasion, and implied appeal to a higher level authority, it was able to bring about a singleness of approach to a many-sided problem. Summary Food procurement was a complex administrative operation involving such matters as price, processing, packaging, storage, warehousing, the distribution of available supplies among competing users, and finally, utilization of proper purchase methods. An additional complication existed in the form of divided authority. Although the Executive Order of December 5, 1942, had directed the War Food Administration to assume control of the food program, large areas were placed beyond its power. Price, an extremely important factor, was by law assigned to the Office of Price Administration. The armed forces from their very beginnings had maintained their own purchase organization and during the war became one of the largest users of food. Only Lend-Lease food purchasing was assigned to the War Food Administration. The activities of these two large units were bound almost inevitably to have their effect upon the supplies available to the civilian population, and here again the Office of Price Administration had an interest, since by means of rationing it had sought to distribute equitably the remainder of the food supply after the military and Lend-Lease needs had been satisfied. To assure its primacy over the food function and at the same time to achieve the coordination essential to an effective food effort, the War Food Administration first put its own

84

WARTIME FOOD PROCUREMENT AND PRODUCTION

h o u s e i n o r d e r by t h e d e v e l o p m e n t o f i t s p u r c h a s e p r o c e d u r e s . I t t h e n s o u g h t t o o b t a i n a more u n i t e d a p p r o a c h f o r a l l i n t e r e s t e d a g e n c i e s t h r o u g h t h e u s e o f i n t e r - d e p a r t m e n t a 1 comm i t t e e s . T h e f i r s t o f t h e s e was t h e I n t e r - A g e n c y Food P r o c u r e m e n t C o m m i t t e e . T h i s w a s f o l l o w e d by t h e War M e a t B o a r d and t h e D a i r y P r o c u r e m e n t B o a r d . T h e s e a c h i e v e d a c o n s i d e r a b l e m e a s u r e o f s u c c e s s a n d h a d t h e f i r s t War Food A d m i n i s t r a t o r c o n t i n u e d i n o f f i c e a g r e a t e r a n d more c o n s i s t e n t u s e o f t h i s d e v i c e would have u n d o u b t e d l y o c c u r r e d . N o n e t h e l e s s , in t h e a r e a s w h e r e i t was e m p l o y e d , t h e i n t e r - a g e n c y c o m m i t t e e d i d make an i m p o r t a n t c o n t r i b u t i o n t o t h e p r o b l e m o f c o o r d i nation . The a d m i n i s t r a t i v e m a c h i n e r y w h i c h d e a l t w i t h f o o d p r o c u r e m e n t h a d t o b e a s s e m b l e d h u r r i e d l y . Many m i s t a k e s w e r e made u n d e r t h e s t r e s s o f i m p e l l i n g n e e d . E r r o r s i n j u d g m e n t and a d m i n i s t r a t i o n o c c u r r e d b u t by a n d l a r g e t h e j o b was w e l l d o n e a n d i t s s u c c e s s was a t r i b u t e t o t h e a b i l i t y o f t h e o f f i c i a l s in charge of the procurement program.*'

CHAPTER

VI

FOOD ORDERS: THEIR FORMULATION, ISSUANCE AND ADMINISTRATION Int

roduction

The food n e e d s of this n a t i o n and its allies w e r e e n o r m o u s . In part, the e f f o r t to m e e t this need took the form of W a r Food A d m i n i s t r a t i o n m e a s u r e s to increase a g r i c u l t u r a l p r o d u c tion. In part, too, the almost i n s a t i a b l e demand w a s lightened by the use of an a l l o c a t i o n p r o c e d u r e w h i c h sought to divide a v a i l a b l e food stocks in a c c o r d a n c e with the r e l a t i v e c o n t r i b u t i o n s o f v a r i o u s c l a i m a n t s to the war p r o g r a m . U l t i m a t e l y , h o w e v e r , the su-ccess of such m e a s u r e s d e p e n d e d on the extent to which the armed forces and o t h e r g o v e r n m e n tal a g e n c i e s were a c t u a l l y able to obtain the foods allotted to them. It was soon e v i d e n t that these a g e n c i e s w e r e not g e t t i n g their a l l o t m e n t s of foodstuffs and u n l e s s more effective action were e m p l o y e d , there w a s the p r o s p e c t of the food p r o g r a m b o g g i n g down. The d e v i c e h i t upon to obtain more e f f e c t i v e d i s t r i b u t i o n of a v a i l a b l e food s u p p l i e s w a s the food order, a g o v e r n m e n t a l r e g u l a t i o n w h i c h , when i s s u e d , had the full force and e f f e c t of law, even though p r o m u l g a t e d by an a d m i n i s t r a t i v e a g e n c y . How large a part the food order played in the food p r o g r a m can be gathered from the fact that the W a r Food A d m i n i s t r a tion issued n i n e t y - s i x g e n e r a l o r d e r s i m p o s i n g a w i d e variety of r e s t r i c t i o n s on a l m o s t every aspect of the food i n d u s t r i e s . C o n t r o l s were placed on food d e l i v e r i e s , i n v e n t o r i e s , sales, p u r c h a s e s , d i s t r i b u t i o n , and u s e . T h e s e r e g u l a t i o n s were in turn s u p p l e m e n t e d by 227 " p o i n t o r d e r s " w h i c h spelled out in g r e a t e r detail the s a n c t i o n s contained in the general o r d e r s . For the fiscal y e a r 1943 the p l a n n i n g , p r e p a r a t i o n , s u p e r v i s i o n and d i r e c t i o n of food orders cost the War Food A d m i n i s t r a t i o n $415,128- As the tempo of the war increased the same agency proposed to spend $2,330,867 and $ 3 , 1 7 0 , 3 5 5 r e s p e c t i v e l y , for the two s u c c e e d ing fiscal years. In other w o r d s , a l m o s t 6 m i l l i o n d o l l a r s were to be spent for food o r d e r s . 1

86 Origins

W A R T I M E FOOD P R O C U R E M E N T A N D PRODUCTION of Food

Order

Authority

Early in the history of war Congress recognized that, «here shortages of critical materials or facilities existed, voluntary nethods to obtain these items would not suffice. As a consequence it gave the chief executive the authority to allocate materials in short supply "in such manner ... and to such extent as he shall deem necessary or appropriate in the public interest and to promote the national defense."^ Provision was also made for the delegation of this power to appropriate officers and government agencies. Public interest and national defense were the broad standards under which items in short supply were allotted among conpeting users. The presidential authority was delegated to the Chairman of the War Production Board. The latter issued regulatory orders of all sorts, a small proportion of which dealt with food items. Later by executive order the powers under the Second War Powers Act as they applied to food were transferred to the Secretary of Agriculture and still later to the War Food Administrator.^ Within the War Food Administration the power to issue orders relating to the procurement and distribution of foods was delegated to the Food Distribution Administration. When the Office of Distribution succeeded to the functions of the latter organization, it, in turn, received similar power with respect to food orders.* Types

and Uses

of Food

Orders

The food orders promulgated by the War Food Administration were of five main types: distribution economy orders, limitation orders, allocation orders, licensing orders, and setaside orders. The extent and nature of the controls contained in these regulatory measures can be gathered from a brief description of such orders.' Distribution economy orders sought to conserve those materials essential to the war effort. Illustrative of this type of regulation was the bakery order which fixed the maximum amounts of critical items such as sugar, shortening and milk to be used in bakery goods; banned the prevailing practice of returning stale bread, one of the most wasteful practices of the baking industry; and limited the kinds of bread and rolls that could be manufactured. Considerable savings in these substances and in manpower resulted from the issuance of this order.6 A s their name implied, limitation orders regulated the production and sale of commodities in accordance with either designated contracts or specified purposes. To assure an adequate supply of canned citrus products for the filling of government contracts, an order was promulgated prohibiting the production and sale of citrus juice, other than unconcentrated juice, by canners unless such action was taken pursuant

FOOD ORDERS

87

to a government contract. The sale of grapefruit juice during stated periods was also banned, thus forcing a large portion of the abundant citrus crop to the narket in fresh form.^ In some instances limitation orders were alao used to restrict the size of inventories and thus assist the Government in its procurement operations. In March 1943 »hen the provisions of a meat set-aside order were temporarily suspended, the possibility existed that some packers might decide to hold appreciable q u a n t i t i e s of meat for speculative purposes rather than sell them to the Government. T o prevent this situation from arising, restrictions were placed upon the amounts of meat products that a packer could withhold from the market. Since civilian sales were already covered by other orders, this action meant that the packer was forced to continue his sales to the Government to stay within his assigned quota." In the interest of obtaining a better distribution of food items in short supply, some limitation orders compelled businesses to maintain a required rate of sales or to curb their rate of use to a given percentage of a base period. T h u s the sale of packaged chicory by processors was limited to 25 per cent of the total amount of bulk chicory normally delivered by them to persons other than processors during a given period. Blenders and manufacturers of molasses were prohibited from purchasing and accepting more than 100 per cent of their 1941 supply during any one m a r k e t i n g year, unless specifically permitted by the Director of the Food Distribution Administration.' Finally, the manufacture of some items, such as chocolate, novelty and decorative candy, was stopped completely, regardless of the economic loss to persons affected by the order. Allocation orders were usually employed to insure the equitable distribution of a limited supply of a given commodity. Thus in December 1942 demand for burley tobacco so far exceeded the supply that many manufacturers and dealers were unable to obtain their accustomed share of tobacco. To remedy this situation, the Food Distribution Administration assumed control over the entire production of the tobacco crop and then through an allocation order set up a system of apportioning the supply. Before making a contract with a producer for the purchase of tobacco each dealer and manufacturer had to obtain an allocation from the Government.'® Licensing orders represented still another form of restraint. These were similar to limitation orders in the sense that restrictions were placed upon the economic activity of a food industry. But they were also dissimilar in that the regulatory method employed was different. Licensing orders forbade persons under the threat of both civil and criminal penalties from engaging in a given form of activity unless they had received a permit from the Government. Before such authorization was granted, however, conformance with a given standard of conduct was required of the applicant.

88

WARTIME POOD PROCUREMENT AND PRODUCTION

L i c e n s e o r d e r s were employed t o r e g u l a t e t h e meat i n d u s t r y . D e a l e r s w e r e p r o h i b i t e d f r o m b u y i n g and s e l l i n g l i v e s t o c k w i t h o u t f i r s t o b t a i n i n g p r i o r a u t h o r i z a t i o n from the Governm e n t . S l a u g h t e r e r s were f o r b i d d e n t o c o n d u c t t h e i r b u s i n e s s e s w i t h o u t a l i c e n s e , and t h e l a t t e r was g r a n t e d o n l y i f t h e y agreed to l i m i t t h e i r k i l l to a predetermined portion of t h e i r 1941 v o l u m e of o p e r a t i o n s . 1 1 The u s e o f t h i s l i c e n s i n g p o w e r e n a b l e d t h e War Food A d m i n i s t r a t i o n to p r e v e n t the i n t e r s t a t e shipment of d e s i g n a t e d foods unless prospective shippers f i r s t obtained a shipping p e r m i t . P e r m i s s i o n t o s h i p i n i n t e r s t a t e c o m m e r c e was d e n i e d u n l e s s t h e p r o j e c t e d i n t e r s t a t e movement was i n t h e i n t e r e s t of t h e food program. The m a n n e r i n w h i c h t h e l i c e n s i n g o r d e r f u n c t i o n e d i s p e r h a p s b e s t i l l u s t r a t e d by t h e p o t a t o p u r c h a s e p r o g r a m . In t h e s p r i n g of 1943 a s h o r t a g e of p o t a t o e s o c c u r r e d . The a r m e d s e r v i c e s , i n p a r t i c u l a r , f o u n d i t d i f f i c u l t t o buy s u f f i c i e n t q u a n t i t i e s o f t h i s i t e m t o m e e t i t s p r o c u r e m e n t s c h e d u l e s . To a s s i s t t h e a r m e d s e r v i c e s , t h e War Food A d m i n i s t r a t i o n i s s u e d a l i c e n s i n g o r d e r w h i c h f o r b a d e s h i p p e r s of p o t a t o e s i n M a i n e and o t h e r p o t a t o g r o w i n g a r e a s from making e i t h e r r a i l o r t r u c k s h i p m e n t s i n i n t e r s t a t e commerce u n l e s s t h e y had f i r s t o b t a i n e d a s h i p p i n g p e r m i t . To o b t a i n s u c h p e r m i s s i o n s h i p p e r s were compelled to o f f e r f o r s a l e t o the Government t h e e n t i r e q u a n t i t y o f t h e p r o d u c t w h i c h t h e y p r o p o s e d t o move i n t o t r a d e c h a n n e l s . T h i s a c t i o n e n a b l e d t h e armed s e r v i c e s t o s a t i s f y t h e i r p r o c u r e m e n t n e e d s . Once t h e i r r e q u i r e m e n t s w e r e m e t , s h i p p i n g p e r m i t s w e r e g r a n t e d and t h e b a l a n c e o f t h e p o t a t o e s was t h e n r e l e a s e d f o r d i s t r i b u t i o n t o c i v i l i a n s through commercial c h a n n e l s . ^ From t h e s t a n d p o i n t of d i r e c t c o n t r i b u t i o n t o t h e p r o c u r e m e n t p r o g r a m , t h e s e t - a s i d e o r d e r was o n e o f t h e m o s t i m p o r t a n t t y p e s . " T h e p r o c u r e m e n t by t h e armed s e r v i c e s and o t h e r Government a g e n c i e s of t h e i r r e q u i r e m e n t s , " s a i d a t o p - r a n k i n g o f f i c i a l o f t h e War Food A d m i n i s t r a t i o n " w o u l d n o t be p o s s i b l e w i t h o u t such o r d e r s . T y p i c a l of t h i s c a t e g o r y were o r d e r s d i r e c t i n g m a n u f a c t u r e r s , p r o c e s s o r s and o t h e r s p r o d u c i n g p r o c e s s e d f o o d s t o r e s e r v e a d e s i g n a t e d p e r c e n t a g e of t h e i r p r o d u c t i o n f o r war p u r c h a s e o r d e r s . Approximately twenty-three s e t - a s i d e orders t o g e t h e r with n u m e r o u s a m e n d m e n t s w e r e i s s u e d by t h e War Food A d m i n i s t r a t i o n . ' ^ Whenever t h e s h o r t s u p p l y of a g i v e n food i t e m p r e v e n t e d the Government from m e e t i n g i t s program n e e d s , i t i s sued a food o r d e r d i r e c t i n g a food p r o c e s s o r to s e t a s i d e a g i v e n p o r t i o n of h i s p r o d u c t i o n f o r the e x c l u s i v e u s e of t h e War Food A d m i n i s t r a t i o n o r i t s a g e n t s . W i t h o u t s u c h a c o e r c i v e w e a p o n many p u r c h a s e p r o g r a m s w o u l d h a v e b e e n p u t u n d e r a s e v e r e h a n d i c a p and i n f a c t m i g h t n e v e r h a v e b e e n f u l f i l l e d . T h a t s u c h o r d e r s were of m a t e r i a l a s s i s t a n c e t o g o v e r n m e n t a l p r o c u r e m e n t c a n b e b r i e f l y d e m o n s t r a t e d by a g l a n c e a t some o f t h e m o r e i m p o r t a n t b u y i n g p r o g r a m s . In t h e f a l l o f 1 9 4 2 b u t t e r

89

FOOD ORDERS

s h o r t a g e s made i t d i f f i c u l t f o r g o v e r n m e n t a l a g e n c i e s t o a c q u i r e b u t t e r s o r e l y n e e d e d by t h e a r m e d f o r c e s a n d t h e L e n d L e a s e c o u n t r i e s . T h e War F o o d A d m i n i s t r a t i o n i s s u e d a b u t t e r s e t - a s i d e order forcing every b u t t e r manufacturer producing more t h a n 1 2 , 0 0 0 p o u n d s of b u t t e r i n any one month t o w i t h h o l d a t l e a s t 30 p e r c e n t of h i s m o n t h l y p r o d u c t i o n f o r t h e e x c l u s i v e u s e o f t h e Army, Navy, C o a s t G u a r d , t h e M a r i n e C o r p s , and t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n . W i t h o u t s u c h an o r d e r t h e g o v e r n m e n t a l p r o c u r e m e n t p r o g r a m w o u l d h a v e f a i l e d . With i t , e a c h g o v e r n m e n t a l a g e n c y was a b l e t o f u l f i l l i t s procurement schedule.^ S i m i l a r l y the passage of a r e s e r v a t i o n o r d e r b o l s t e r e d the G o v e r n m e n t ' s m e a t b u y i n g p r o g r a m . I n May a n d J u n e o f 1 9 4 3 when t h e a r m e d s e r v i c e s f o u n d t h e m s e l v e s u n a b l e t o o b t a i n t h e i r meat r e q u i r e m e n t s , a food o r d e r d i r e c t e d f e d e r a l l y i n s p e c t e d s l a u g h t e r e r s n o t o n l y t o r e s e r v e 45 p e r c e n t of their weekly production for governmental use, but a l s o to d e l i v e r the p o r t i o n s e t a s i d e t o the armed s e r v i c e s in the form of b o n e l e s s and c a r c a s s b e e f m e e t i n g f e d e r a l s p e c i f i c a t i o n s . The r e g u l a t i o n , when c o u p l e d w i t h t h e s e a s o n a l movement o f b e e f o f f t h e r a n g e s d u r i n g J u n e and J u l y , made i n c r e a s e d quantit i e s of meat a v a i l a b l e t o the f e d e r a l a g e n c y . D i s r u p t i o n of t h e meat p r o c u r e m e n t p r o g r a m of t h e m i l i t a r y s e r v i c e s was thus prevented . T h u s t h e f o o d o r d e r r e p r e s e n t e d g o v e r n m e n t a l r e g u l a t i o n s o f an e n t i r e i n d u s t r y . As a s y s t e m o f a d m i n i s t r a t i v e c o n t r o l s , it con t r o l l e d a t t h e s o u r c e t h r o u g h t h e u s e of q u o t a s a n d r e s t r i c t i o n s on d e l i v e r i e s , p u r c h a s e a n d u s e b a s e d u p o n s u c h q u o t a s . S u c h r e g u l a t i o n s w e r e an i m p o r t a n t a d j u n c t t o t h e w a r food program s i n c e they r e p r e s e n t e d the i m p l e m e n t a t i o n of a l location policy. Procedure

for

the

Issuance

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Food

Orders

F o i l owing t h e t r a n s f e r of food a u t h o r i t y , t h e D e p a r t m e n t of A g r i c u l t u r e began i m m e d i a t e l y t o o r g a n i z e i t s work f o r t h e p e r f o r m a n c e of t h e food o r d e r f u n c t i o n . In d o i n g t h i s i t was b r o u g h t f a c e t o f a c e w i t h a most d i f f i c u l t p r o b l e m . I t had n e i t h e r a t r a i n e d s t a f f n o r a b a c k g r o u n d of e x p e r i e n c e in f o o d o r d e r w o r k . Y e t t h e j o b h a d t o b e d o n e . As a f i r s t s t e p t h e War P r o d u c t i o n B o a r d w a s a s k e d t o c o n t i n u e t o i s s u e a n d a d m i n i s t e r o r d e r s u n t i l such time as the Department of A g r i c u l t u r e l n d i c a t e d i t s r e a d i n e s s t o a s s u m e i t s new r e s p o n s i b i l i t i e s . '' Assured f o r the time being at l e a s t t h a t the f u n c t i o n would c o n t i n u e , t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n b e g a n t o p r e p a r e a p r o c e d u r e f o r t h e a d m i n i s t r a t i o n of food o r d e r s . In t h i s t a s k i t w a s a i d e d m a t e r i a l l y by t h e a c q u a i n t a n c e o f t h e War P r o d u c t i o n B o a r d w i t h t h e p r o b l e m . T h e l a t t e r h a d n o t o n l y i s s u e d a s e r i e s of r e s t r i c t i v e o r d e r s , some r e l a t i n g t o f o o d but i t had a l s o d e v e l o p e d a w e l l - d e f i n e d method f o r a d m i n i s t e r i n g s u c h r e g u l a t i o n s . M o r e o v e r , when t h e f o o d o r d e r o f

90

WARTIME FOOD PROCUREMENT AND PRODUCTION

D e c e m b e r 5, 1 9 4 2 t r a n s f e r r e d i t s p e r s o n n e l e n g a g e d i n s u c h work t o t h e D e p a r t m e n t of A g r i c u l t u r e , i t p r o v i d e d t h e l a t t e r w i t h a v a l u a b l e n u c l e u s of e x p e r i e n c e . By F e b r u a r y 1 9 4 3 , t h e c o m b i n e d e f f o r t s o f t h e s e p e o p l e a n d d e p a r t m e n t a l p e r s o n n e l e n a b l e d t h e D i r e c t o r o f Food D i s t r i b u t i o n t o a n n o u n c e t h e body of r u l e s g o v e r n i n g f o o d r e g u l a t i o n s . The s t e p s r e q u i r e d f o r t h e i s s u a n c e o f a g o o d o r d e r w e r e o u t l i n e d and t h e m a j o r r e s p o n s i b i l i t y f o r t h i s t a s k was a s s i g n e d t o t h e commodity b r a n c h e s . " A p p r o v a l o f a f o o d o r d e r was o b t a i n e d i n t h e f o l l o w i n g m a n n e r . F i r s t , a c o m m o d i t y b r a n c h a d d r e s s e d a Memorandum o f I n t e n t i o n t o t h e D i r e c t o r o f Food D i s t r i b u t i o n . T h i s d o c u m e n t c o n t a i n e d a summary o f t h e c o n t e n t s o f t h e p r o p o s e d r e g u l a t i o n , t h e r e a s o n why t h e p r o p o s e d a c t i o n w a s n e c e s s a r y , and a f o r e c a s t o f t h e p r o b a b l e e f f e c t o f i t s m a j o r p r o v i s i o n s . Then t h e memorandum w a s c i r c u l a t e d by t h e D e p u t y D i r e c t o r i n c h a r g e of t h e commodity b r a n c h e s t o a l l i n t e r e s t e d p a r t i e s w i t h t h e r e q u e s t t h a t t h e y a d v i s e him a s t o t h e a d v i s a b i l i t y o f t h e p r o p o s e d a c t i o n . On t h e b a s i s o f t h e s e c o m m e n t s and h i s own k n o w l e d g e of t h e s i t u a t i o n , t h e Deputy D i r e c t o r t h e n c o u n s e l l e d t h e D i r e c t o r on t h e n e e d f o r t h e o r d e r . A d e c i s i o n by t h e D i r e c t o r t h a t a f o o d o r d e r was n e c e s s a r y w a s f o l l o w e d by t h e c o m p i l a t i o n of a d e t a i l e d r e c o r d by t h e commodity b r a n c h . I t p r e p a r e d a s t a t e m e n t of the c u r r e n t s u p p l y - d e m a n d s t a t u s of t h e commodity t o be r e g u l a t e d . A f t e r r e q u e s t i n g t h e l e g a l o f f i c e t o s u p p l y i t w i t h an o p i n i o n on t h e l e g a l a s p e c t s of the o r d e r , i t c o l l a b o r a t e d w i t h t h a t o f f i c e i n w r i t i n g a d r a f t of t h e o r d e r . T h e c o m m o d i t y b r a n c h a l s o a s s i s t e d in the p r e p a r a t i o n of a p r e s s r e l e a s e e x p l a i n i n g the need f o r the o r d e r . W h e r e an o r d e r i n v o l v e d i n t e r - a g e n c y r e l a t i o n s h i p s , the b r a n c h p r e p a r e d a d r a f t of a p r o p o s e d a g r e e m e n t t o be s i g n e d by t h e i n t e r e s t e d a g e n c i e s . F i n a l l y , i t w r o t e a l e t t e r t o t h e War Food A d m i n i s t r a t o r f o r t h e s i g n a t u r e o f t h e D i r e c t o r of Food D i s t r i b u t i o n r e c o m m e n d i n g t h e f o r m e r ' s c o n c u r r e n c e i n t h e p r o p o s e d o r d e r . The e n t i r e s e t o f d o c u m e n t s w a s t h e n i n c o r p o r a t e d i n a m a s t e r f i l e known a s t h e d o c k e t . T h i s f o r m e d t h e b a s i s of a n y f u r t h e r a c t i o n . The c o m p l e t e d d o c k e t w a s a g a i n s u b m i t t e d t o t h e D e p u t y D i r e c t o r i n c h a r g e o f t h e c o m m o d i t y b r a n c h e s and i t t h e n b e c a m e his r e s p o n s i b i l i t y to c l e a r the d r a f t with i n t e r e s t e d agencies, w i t h i n and w i t h o u t t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n . Where o u t s i d e a g e n c i e s , p a r t i c u l a r l y t h e armed f o r c e s were i n v o l v e d , t h i s c l e a r a n c e w a s u s u a l l y a c c o m p l i s h e d by r e f e r r i n g t h e d o c k e t t o t h e I n t e r - A g e n c y Food P r o c u r e m e n t C o m m i t t e e . I n s u b s t a n c e , t h i s r e p l a c e d t h e k i n d o f r e v i e w " w h i c h t h e Army f o r m e r l y h a d t h r o u g h t h e medium o f t h e A r m y - N a v y M u n i t i o n B o a r d when t h e War P r o d u c t i o n B o a r d was i s s u i n g f o o d o r d e r s .

FOOD ORDERS The Order

Clearance

91

Committee

W i t h i n t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n , c l e a r a n c e was a c c o m p l i s h e d t h r o u g h t h e O r d e r C l e a r a n c e C o m m i t t e e , an a g e n c y w i d e g r o u p w i t h t h e f o l l o w i n g m e m b e r s h i p : two a s s i s t a n t s t o t h e Deputy D i r e c t o r i n c h a r g e of the commodity b r a n c h e s , t h e A s s i s t a n t Deputy D i r e c t o r f o r C i v i l i a n A c t i v i t i e s , the Ass i s t a n t D e p u t y D i r e c t o r f o r P r o c u r e m e n t , and t h e C h i e f o f t h e R e q u i r e m e n t s and A l l o c a t i o n s C o n t r o l Branch. A l l p r o p o s e d o r d e r s i n d o c k e t form had t o be s u b m i t t e d t o t h i s c o m m i t t e e f o r p r i o r r e v i e w and r e c o m m e n d a t i o n b e f o r e f i n a l a c t i o n was t a k e n by t h e D i r e c t o r o f Food D i s t r i b u t i o n . I n t h i s c a p a c i t y t h e committee s e r v e d " a s the a d m i n i s t r a t i v e c l e a r a n c e mechanism at the s t a f f l e v e l . " I t cleared " a l l l i m i t a t i o n , a l l o c a t i o n , r e s t r i c t i o n , and s e t - a s i d e o r d e r s i s s u e d p u r s u a n t t o t h e a u t h o r i t y c o n f e r r e d u p o n t h e S e c r e t a r y by E x e c u t i v e O r d e r No. 928 0 . " 3 I n p r a c t i c e t h e c o m m i t t e e a c t e d i n an a d v i s o r y c a p a c i t y t o t h e Deputy D i r e c t o r i n c h a r g e of t h e commodity b r a n c h e s , r e v i e w i n g b o t h t h e Memorandum o f I n t e n t i o n and t h e d o c k e t f i l e of t h e o r d e r p r i o r t o i t s f i n a l p a s s a g e . Committee a p p r o v a l , e x c e p t i n e x t r a o r d i n a r y c a s e s , was t a n t a m o u n t t o t h e i s s u a n c e of an o r d e r . When i t r e g i s t e r e d o b j e c t i o n s t o a p r o p o s e d p o l i c y c o n t a i n e d i n an o r d e r , h o w e v e r , i t s p o w e r o f d i s a p p r o v a l was l i m i t e d . I t c o u l d o n l y a s k t h e c o m m o d i t y b r a n c h i n i t i a t i n g an o r d e r t o w i t h h o l d f u r t h e r a c t i o n p e n d i n g f i n a l r e s o l u t i o n o f t h e i s s u e by t h e D i r e c t o r o f Food D i s t r i b u t i o n and his deputies. Even t h i s a d v i s o r y c a p a c i t y was s o o n m o d i f i e d . E a r l y i n 1944 t h e p r o c u r e m e n t f u n c t i o n s o f t h e c o m m o d i t y b r a n c h e s w e r e t r a n s f e r r e d t o a P r o c u r e m e n t and P r i c e S u p p o r t B r a n c h . The new u n i t was e m p o w e r e d t o i n i t i a t e a l l p r o c u r e m e n t o r d e r s and was made r e s p o n s i b l e t o a s e p a r a t e D e p u t y D i r e c t o r f o r S u p p l y . ® Although the Order C l e a r a n c e Committee r e t a i n e d i t s review f u n c t i o n o v e r a l l o r d e r s , i t s power o v e r p r o c u r e m e n t o r d e r s was m i n i m i z e d by t h e f a c t t h a t , i n c a s e s o f d i s a g r e e m e n t , t h e P r o c u r e m e n t and P r i c e S u p p o r t Branch c o u l d a p p e a l o v e r i t s head t o the Deputy D i r e c t o r f o r Supply. The O r d e r C l e a r a n c e C o m m i t t e e p e r f o r m e d a u s e f u l t a s k i n imp r e s s i n g u p o n t h e c o n s t i t u e n t p a r t s o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n t h e n e e d f o r a r e c o n c i l i a t i o n of d i v e r s e v i e w p o i n t s b e f o r e t h e f i n a l i s s u a n c e of a f o o d o r d e r . B u t i n t h e f i n a l a n a l y s i s i t was m e r e l y a p r o c e s s i n g m a c h i n e . I t d i d n o t h a v e t h e c o m m o d i t y i n f o r m a t i o n f o r t h e d e t e r m i n a t i o n of t h e e s s e n t i a l i t y o f an o r d e r , f o r t h i s was p o s s e s s e d by t h e b r a n c h i n i t i a t i n g the o r d e r . Presumably the committee could o b j e c t to t h e i s s u a n c e o f an o r d e r on p o l i c y g r o u n d s b u t t h i s was t h e p r o v i n c e of t h e D i r e c t o r and h i s D e p u t i e s . A b r a n c h r e b u f f e d by a d e c i s i o n o f t h e c o m m i t t e e m e r e l y had t o p e r s i s t a n d t h e m a t t e r was c a r r i e d b e y o n d t h e O r d e r C l e a r a n c e C o m m i t t e e t o a higher level for decision.

92 Industry

WARTIME FOOD PROCUREMENT AND PRODUCTION Consultation

in

the

Formulation

of

Food

Orders

I n i t s a d m i n i s t r a t i o n of r e g u l a t o r y s t a t u t e s b e f o r e t h e w a r , t h e D e p a r t m e n t of A g r i c u l t u r e had f o l l o w e d t h e p r a c t i c e o f a f f o r d i n g i n t e r e s t e d p e r s o n s a n o p p o r t u n i t y t o be h e a r d b e f o r e p r o p o s e d r e g u l a t i o n s were i s s u e d . In t h o s e i n s t a n c e s w h e r e a p r o p o s e d o r d e r was e n t i r e l y new, h e a r i n g s w e r e h e l d throughout the c o u n t r y a t c o n v e n i e n t p l a c e s a f f e c t e d . A publ i c c o n f e r e n c e w a s h e l d u n d e r t h e c h a i r m a n s h i p o f an a d m i n i s t r a t i v e o f f i c i a l of a r a n k s u f f i c i e n t l y h i g h t o be a b l e t o a n s w e r a u t h o r i t a t i v e l y q u e s t i o n s on a d m i n i s t r a t i v e p o l i c y . No f o r m a l h e a r i n g s p r o c e d u r e was e m p l o y e d e x c e p t f o r t h e f a c t t h a t t h e p r o p o s e d r e g u l a t i o n w a s u s u a l l y r e a d s e c t i o n by s e c t i o n . Whenever p o s s i b l e t h e v i e w p o i n t of t h o s e e f f e c t e d was s o l i c i t e d a n d i n a few c a s e s t i m e w a s a l l o w e d f o l l o w i n g t h e m e e t i n g f o r t h o s e d e s i r i n g t o s u b m i t more d e t a i l e d comments i n w r i t i n g . I n many r e s p e c t s t h e p r o c e e d i n g s c l o s e l y r e s e m b l e d t h e t r a d e p r a c t i c e c o n f e r e n c e s o f t h e F e d e r a l T r a d e Commission. S i n c e food o r d e r s w e r e q u a s i - l e g i s 1 a t i ve i n c h a r a c t e r , it would have been d e s i r a b l e to f o l l o w a s i m i l a r p r o c e d u r e duri n g t h e war p e r i o d . But t h e D e p a r t m e n t and i t s s u c c e s s o r , the War F o o d A d m i n i s t r a t i o n , f o u n d t h e m s e l v e s f a c e t o f a c e w i t h an e m e r g e n c y s i t u a t i o n . R a p i d and e f f e c t i v e a c t i o n was n e c e s s a r y . P u r e l y f r o m t h e s t a n d p o i n t of t i m e , i t was i m p o s s i b l e t o follow the r a t h e r l e i s u r e l y p r o c e s s of the p r e - w a r p e r i o d . M o r e o v e r , in t h e c a s e of s e t - a s i d e o r d e r s t h e r e s u l t s s o u g h t b y t h e r e g u l a t i o n m i g h t h a v e b e e n s e r i o u s l y p r e j u d g e d by a d v a n c e n o t i c e o f i n t e n t i o n t o i s s u e s u c h a n o r d e r , f o r some i n t e r e s t s m i g h t h a v e g a i n e d a t t h e e x p e n s e o f o t h e r s by r e a son of h a v i n g s u c h i n f o r m a t i o n . Faced w i t h t h e c h o i c e b e t w e e n a d m i n i s t r a t i v e need and i t s own o b v i o u s d e s i r e t o g i v e t h e i n t e r e s t s a f f e c t e d by i s s u a n c e o f an o r d e r a d e q u a t e n o t i c e a n d h e a r i n g , t h e D e p a r t m e n t o f A g r i c u l t u r e a n d i t s s u c c e s s o r a g e n c y a d o p t e d t h e p o l i c y of c o n s u l t i n g w i t h i n d u s t r y on a l l f o o d o r d e r s a n d a m e n d m e n t s e x c e p t t h o s e w i t h s e t - a s i d e p r o v i s i o n s . To p r o v i d e a f f e c t e d i n t e r e s t s w i t h r e p r e s e n t a t i o n d u r i n g t h e w a r , t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n , a n d i t s s u c c e s s o r , t h e O f f i c e of D i s t r i b u t i o n , e s t a b l i s h e d a s e r i e s o f I n d u s t r y A d v i s o r y Comm i t t e e s . Each c o m m i t t e e c o n s i s t e d of r e p r e s e n t a t i v e s of l a r g e , medium and s m a l l u n i t s i n t h e i n d u s t r y s e l e c t e d g e o g r a p h i c a l l y s o a s t o f u r n i s h an a d e q u a t e c r o s s s e c t i o n o f t h e i n d u s t r y . Such c o m m i t t e e a p p r o v e d as t o c o m p o s i t i o n and p u r p o s e s f r o m t h e s t a n d p o i n t o f p o s s i b l e a n t i - t r u s t v i o l a t i o n by t h e A t t o r n e y G e n e r a l w e r e u s e d r a t h e r e x t e n s i v e l y . At v a r i o u s s t a g e s of t h e war t h e number o f s u c h c o m m i t t e e s r a n g e d from e i g h t y t o 1 0 7 . 27 E a c h c o m m i t t e e was p l a c e d i n c h a r g e o f a G o v e r n m e n t C h a i r man who p r e s i d e d a t a l l s e s s i o n s o f t h e C o m m i t t e e . M e e t i n g s were h e l d a t t h e c a l l of t h e Chairman to d i s c u s s a l l problems a f f e c t i n g the i n d u s t r y . Proposed food o r d e r s were p r e s e n t e d

FOOD ORDERS

93

t o t h e c o m m i t t e e and t h e i r a d v i c e « a s s o l i c i t e d a s t o w h e t h e r t h e o r d e r o r some o t h e r f o r m o f a c t i o n t o m e e t t h e t h r e a t e n e d s u p p l y d i s t r i b u t i o n p r o b l e m was n e e d e d . T h i s p r o c e d u r e e n a b l e d t h e War Food A d m i n i s t r a t i o n t o f o r m u l a t e r e g u l a t o r y o r d e r s in the l i g h t o f the e x p e r i e n c e o f the i n d u s t r y concerned and a t t h e same t i m e i t g a v e t o t h e i n d u s t r y representatives a f u l l e r a p p r e c i a t i o n o f the w a r t i m e problems c o n f r o n t i n g the Government. In g e n e r a l t h e g u i d i n g p r i n c i p l e b e h i n d t h i s c o n c e p t o f i n d u s t r y c o o p e r a t i o n w a s w e l l e x p r e s s e d by t h e a d m i n i s t r a t i v e o f f i c i a l who t h r o u g h o u t t h e w a r was c h a r g e d w i t h t h e d u t y o f a d m i n i s t e r i n g war f o o d o r d e r s . I t was h i s f e e l i n g t h a t t h o u g h : " a l a w c a n be o f g r e a t e s t s e r v i c e when t h o s e who m u s t l i v e w i t h i t and a b i d e by i t h a v e h a d an o p p o r t u n i t y t o a s s i s t i n i t s d e v e l o p m e n t . . . an e v e n l a r g e r o p p o r t u n i t y and v o i c e i n the formulation of r e g u l a t i o n s . . . [ s h o u l d b e g i v e n ] by t h e a d m i n i s t r a t i v e a g e n c y , and a f u l l and f a i r o p p o r t u n i t y t o p r e s e n t t h e i r s i d e o f a d i s p u t e in any a d m i n i s t r a t i v e p r o c e e d ing. Food

Order

Administration

F o l l o w i n g the a d o p t i o n o f the food o r d e r , the commodity b r a n c h assumed a p r i m e r o l e i n i t s a d m i n i s t r a t i o n . I t was t h e p o l i c y o f t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n and i t s s u c c e s sor a g e n c i e s , s i n c e each o r d e r concerned a s p e c i f i c commodity, t o v e s t the d i r e c t i o n o f o p e r a t i o n s under the o r d e r in e i t h e r t h e c o m m o d i t y b r a n c h c h i e f o r a p e r s o n d e s i g n a t e d by h i m and under h i s immediate s u p e r v i s i o n . ' 0 Such p e r s o n s were c a l l e d order administrators. Order a d m i n i s t r a t i o n a r o s e l a r g e l y as a r e s u l t of the need t o i n t e r p r e t the v a r i o u s p r o v i s i o n s o f food o r d e r s . Each o r der contained a standard p r o v i s i o n p e r m i t t i n g a g g r i e v e d persons to r e q u e s t r e l i e f whenever c o m p l i a n c e would c a u s e " a n e x c e p t i o n a l and u n r e a s o n a b l e h a r d s h i p . " The D i r e c t o r o f Food D i s t r i b u t i o n w a s e m p o w e r e d t o t a k e s u c h a c t i o n a s he deemed a p p r o p r i a t e and h i s d e c i s i o n s on a p p e a l s f o r r e l i e f w e r e f i n a l . I t was t h i s p r o c e s s i n g o f p e t i t i o n s f o r e x e m p t i o n f r o m food r e g u l a t i o n s t h a t c o n s t i t u t e d order a d m i n i s t r a t i o n . W h e n e v e r a p e t i t i o n f o r e x e m p t i o n w a s r e c e i v e d by t h e D i r e c t o r o f Food D i s t r i b u t i o n , i t w a s r e f e r r e d t o t h e a p p r o p r i a t e o r d e r a d m i n i s t r a t o r . I t was t h e t a s k o f t h e l a t t e r t o a s s e m b l e a l l o f the p e r t i n e n t f a c t s in o r d e r t o b u i l d a c a s e r e c o r d f o r t h e a p p e a l . A s a f i r s t s t e p , he was r e q u i r e d t o a s c e r t a i n w h e t h e r t h e p e t i t i o n e r was u n d e r i n v e s t i g a t i o n f o r v i o l a t i o n o f t h e o r d e r and w h e t h e r s a n c t i o n s w e r e c o n t e m p l a t e d b e c a u s e of non-compliance with i t s p r o v i s i o n s . Having gathered the p e r t i n e n t d a t a , the order a d m i n i s t r a t o r t h e n made a r e c o m m e n d a t i o n g r a n t i n g o r d e n y i n g t h e r e q u e s t f o r r e l i e f . In t h i s he w a s g o v e r n e d by s e v e r a l p o l i c y d e c i s i o n s . H a r d s h i p s or d i f f i c u l t i e s a r i s i n g d u r i n g the normal

94

W A R T I M E FOOD PROCUREMENT A N D PRODUCTION

course of business operations, or which were " a natural consequence of an o r d e r " were not to be accepted as the basis for granting an exception to the order. Again, the order administrator, before advising exemptions, had to consider whether he would be willing, and whether it would be wise, to make similar dispensations to all persons affected in a like manner by the order. Finally, on the basis of the number and kinds of applications received, he was to render judgment on whether it would be more feasible to amend the order rather than to act on individual a p p l i c a t i o n s . ^ The disposition of each petition by the order administrator was subject to further review by an Order Appeals Committee and the Deputy Director in charge of the commodity branches. 3 3 Both of these worked closely together, with the former acting as an agent of the latter. The Order Appeals Committee not only advised the Deputy Director on new policies in connection with specific provisions of the order but it also served as an intermediate appeals body. In this capacity it passed on all petitions for relief either because of an appeal by a petitioner who still felt aggrieved at the decision of the Order Administrator or as a result of referral by the Order Administrator or the Deputy Director.'* Proceedings before the Order Appeals Committee were informal and administrative in character, unhampered by the rules of evidence or other legal technicalities. Hearings were intended to give the appellant a full and fair opportunity to air his grievances. The petitioner and the order administrator were brought face to face, discussion was guided by the chairman of the committee in such a fashion as to elicit all of the facts having a bearing on the decision by the committee. When the presentation of testimony had been completed, the committee in executive session voted either to affirm or rescind the decision of the order administrator.'^ The order administrator was then advised of the action taken by the committ ee. Where petitions were denied, a letter was sent to the petitioner informing him of this fact. In routine cases, such a letter was signed either by the secretary of the O r d e r Appeals Committee or the order administrator. Where important issues were involved, however, letters of denial were prepared for the signature of the Deputy Director as the Acting Direc tor. When an appeal was granted, however, a somewhat different procedure was employed, since an exemption had the effect of amending the order at least in so far as the petitioner was concerned. Because the Director of Food Distribution approved all food orders, his concurrence was also required in those instance where special dispensation from the provisions of food regulations were made. The power of approval was delegated by the Director to the Deputy Director in charge of the commodity branches. Letters granting exemptions, therefore,

POOD ORDERS

95

were p r e p a r e d f o r t h e s i g n a t u r e o f t h e l a t t e r a s A c t i n g D i r e c t o r but b e f o r e r e l e a s e t h e s e were c l o s e l y c h e c k e d by t h e S o l i c i t o r ' s o f f i c e f o r b o t h form and wording in o r d e r t o avoid legal c o m p l i c a t i o n s . ^ One may w e l l q u e s t i o n t h e need f o r such an e l a b o r a t e a p p e a l s p r o c e d u r e s . Y e t t h e f a c t r e m a i n s t h a t t h e r e were c o g e n t r e a s o n s f o r i t s u s e . One i m p o r t a n t c o n s i d e r a t i o n was t h e l a r g e volume o f a p p e a l s and e x e m p t i o n s made. By F e b r u a r y 1 9 4 4 , 1 8 , 1 7 3 p e t i t i o n s f o r r e l i e f from t h e h a r d s h i p p r o v i s i o n s o f food r e g u l a t i o n s had been r e c e i v e d by t h e War Food A d m i n i s t r a t i o n . More than h a l f o f t h e s e a p p e a l s were d e c i d e d i n f a v o r o f t h e a p p e l l a n t s . ^ Had such a c t i o n s been t a k e n s o l e l y by o r d e r a d m i n i s t r a t o r s , i t would have been d i f f i c u l t t o a v o i d t h e a c c u s a t i o n o f e x c e s s i v e l e n i e n c y . By t h e employment o f a h i g h e r and more d i s i n t e r e s t e d a p p e a l s body, h o w e v e r , t h e p r e s s u r e was taken o f f t h e o r d e r a d m i n i s t r a t o r s . They were t h u s a b l e t o do a more e f f e c t i v e j o b . M o r e o v e r , food o r d e r s were q u a s i - l e g i s 1 a t i v e i n c h a r a c t e r , w i t h t h e f u l l f o r c e and e f f e c t o f law and by t h e i r o p e r a t i o n c o u l d have an a d v e r s e e f f e c t upon a b u s i n e s s o r e c o n o m i c i n t e r e s t . While s u c h a c t i o n m i g h t be j u s t i f i e d in t h e l i g h t o f war n e e d , i t was c e r t a i n l y w i t h i n t h e s p i r i t o f " d u e p r o c e s s " t o a c c o r d an i n d i v i d u a l who f e l t a g g r i e v e d an o p p o r t u n i t y t o present his side o f the c a s e . Previous e x p e r i e n c e with r e g u l a t o r y a c t s had c r e a t e d i n t h e D e p a r t m e n t and in t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n a d i s p o s i t i o n to give the i n d i v i d u a l t h e b e n e f i t o f e v e r y d o u b t . A c e n t r a l a p p e a l s body which p r o v i d e d an e l e m e n t o f i m p a r t i a l i t y b l u n t e d any a c c u s a t i o n s o f u n f a i r n e s s which m i g h t have a r i s e n . Food

Order

Enforcement

The c o n t r o l s in food o r d e r s were e f f e c t i v e o n l y t o t h e e x t e n t t h a t t h e y were o b s e r v e d by t h e p e r s o n s whom t h e y a f f e c t e d . F o r food o r d e r s t o be o f maximum a s s i s t a n c e a s t r o n g e n f o r c e ment program was n e e d e d . To a c h i e v e t h i s o b j e c t i v e War Food A d m i n i s t r a t i o n a c t e d a l o n g t h r e e main l i n e s : e d u c a t i o n , admini s t r a t i v e a c t i o n and, f i n a l l y , in the c a s e o f the p e r s i s t e n t and w i l l f u l v i o l a t o r , c i v i l and c r i m i n a l p r o s e c u t i o n . Much o f t h e War Food A d m i n i s t r a t i o n ' s e n f o r c e m e n t p o l i c y was b a s e d upon the c o n v i c t i o n t h a t many o f t h e minor i n f r a c t i o n s r e s u l t e d from an i n a d e q u a t e u n d e r s t a n d i n g o f t h e p r o v i s i o n s and p u r p o s e s o f t h e v a r i o u s food o r d e r s . From t h i s f o l l o w e d t h e c o n c l u s i o n t h a t o b s e r v a n c e o f t h e o r d e r c o u l d be improved by a program o f e d u c a t i o n which s o u g h t t h e v o l u n t a r y c o o p e r a t i o n o f a f f e c t e d i n d u s t r y and t r a d e g r o u p s . " I t i s our f i r s t d u t y , " s a i d one d i r e c t i v e , " t o make c e r t a i n t h a t t h o s e d i r e c t ly a f f e c t e d by food d i s t r i b u t i o n o r d e r s u n d e r s t a n d t h e need f o r such o r d e r s a s w e l l a s t h e i r p u r p o s e s and p r o v i s i o n s . " ' ® I n d e e d , the g e n e r a l p h i l o s o p h y u n d e r l y i n g t h i s p h a s e o f t h e work was t h a t c o m p l i a n c e was more i m p o r t a n t than t h e i m p o s i tion of p e n a l t i e s .

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E d u c a t i o n f o r compliance «as the m a j o r theme. D i r e c t l y a f t e r t h e p a s s a g e of a f o o d o r d e r , t h e o r d e r and e x p l a n a t o r y m a t e r i a l c o n c e r n i n g i t were g i v e n wide c o v e r a g e t o t h e p e r s o n s a f f e c t e d by i t . The r e s o u r c e s o f t h e same i n d u s t r y a d v i s o r y c o m m i t t e e s w h i c h had a s s i s t e d i n t h e f o r m u l a t i o n of t h e o r d e r were once more e n l i s t e d t o " e d u c a t e " t h e i r members r e g a r d i n g t h e o r d e r ' s p r o v i s i o n s . Meetings were h e l d a t conveni e n t p o i n t s t h r o u g h o u t t h e c o u n t r y and c r i t i c i s m and comment c o n c e r n i n g c o n t r o v e r s i a l p r o v i s i o n s were s o l i c i t e d . ® C o n c u r r e n t l y w i t h t h i s p r o g r a m of e d u c a t i o n a s y s t e m o f s p o t c h e c k s was i n s t i t u t e d t o d e t e r m i n e t h e e x t e n t t o w h i c h t h e p r o v i s i o n s o f f o o d o r d e r s were b e i n g o b s e r v e d . F i e l d o f f i c e e m p l o y e e s i n t h e l a s t s i x months o f t h e f i s c a l y e a r 1944 made a b o u t 2 5 , 0 0 0 p r e l i m i n a r y i n v e s t i g a t i o n s of t h i s s o r t . D i s c l o s u r e of m i n o r v i o l a t i o n s was u s u a l l y f o l l o w e d by a p e r s o n a l c a l l on t h e v i o l a t o r . In most i n s t a n c e s i m m e d i a t e c o o p e r a t i o n was o b t a i n e d . W i t h i n t h e War Food A d m i n i s t r a t i o n , a s in t h e c a s e of o r d e r f o r m u l a t i o n , t h e b u r d e n o f f o o d o r d e r e d u c a t i o n was s h o u l d e r e d by t h e commodity b r a n c h e s . ^ U n f o r t u n a t e l y , n o m e a s u r e o f t h e e f f e c t i v e n e s s of t h e i r work o r of t h e g e n e r a l p r o g r a m of food o r d e r e d u c a t i o n e x i s t s . However, t h e f a c t t h a t t h e War Food A d m i n i s t r a t i o n c o n t i n u e d food o r d e r e d u c a t i o n t h r o u g h o u t t h e war i n d i c a t e d t h e g o v e r n m e n t a l hope t h a t t h e food t r a d e s , o n c e a p p r i s e d of t h e f f t c t s , would of t h e i r own a c c o r d comply i n l a r g e m e a s u r e w i t h t h e m a n d a t o r y p r o v i s i o n s of t h e v a r i o u s f o o d r e g u l a t i o n s . When e d u c a t i o n a l m e t h o d s f a i l e d , v a r i o u s a d m i n i s t r a t i v e s a n c t i o n s were imposed by t h e War Food A d m i n i s t r a t i o n . I t s c o n s t i t u e n t a g e n c i e s , t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n and t h e l a t e r O f f i c e of D i s t r i b u t i o n w e r e e n t r u s t e d w i t h t h e t a s k of m a k i n g f o r m a l i n v e s t i g a t i o n s , of i s s u i n g w a r n i n g l e t t e r s , and i n s t i t u t i n g f o r m a l p r o c e e d i n g s which m i g h t l e a d t o e i t h e r c i v i l o r c r i m i n a l p e n a l t i e s . In t h e r e p r e s e n t a t i v e y e a r of 1944 t h e War Food A d m i n i s t r a t i o n t h r o u g h i t s f i e l d f o r c e i n v e s t i g a t e d a p p r o x i m a t e l y 7 , 5 0 0 c o m p l a i n t s of v i o l a t i o n s which i t had r e c e i v e d . D u r i n g t h a t same y e a r i t s i n v e s t i g a t o r s and a c c o u n t a n t s made 5 , 3 5 3 i n v e s t i g a t i o n s i n c o n n e c t i o n w i t h s i x t y - t w o b a s i c war food o r d e r s . Formal i n v e s t i g a t i o n s were of two s o r t s , t h o s e r e l a t i n g t o v i o l a t i o n s of f o o d o r d e r s c o n t a i n i n g s e t - a s i d e p r o v i s i o n s and t h o s e c o n c e r n e d p r i m a r i l y w i t h r e s t r i c t i v e p r o v i s i o n s on t h e t h e u s e and d e l i v e r y o f f o o d s t u f f s . The f o r m e r w e r e c a l l e d " a c c o u n t a n t " c a s e s , s i n c e t h e y u s u a l l y i n v o l v e d an a u d i t of t h e books of a f i r m i n o r d e r t o d e t e r m i n e w h e t h e r o r n o t d e s i g n a t e d q u a n t i t i e s o f f o o d s had b e e n r e s e r v e d f o r g o v e r n m e n t a l p u r c h a s e a s r e q u i r e d by t h e o r d e r . The l a t t e r were t e r m e d " i n v e s t i g a t o r " c a s e s . Of t h e t o t a l number of a d m i n i s t r a t i v e r e v i e w s made i n c o n n e c t i o n w i t h t h e s e b a s i c f o o d o r d e r s , a maj o r i t y , 4 , 1 8 2 , w e r e " i n v e s t i g a t o r " c a s e s and t h e b a l a n c e were "accountant" cases.

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The formal administrative machinery for the imposition of administrative sanctions, including the institution of formal complaints, consisted of the Deputy Director for Commodity and Industry R e g u l a t i o n , the C h i e f of the Compliance Branch u n d e r his immediate supervision, and the Order Administrators, who, as »e have previously noted, were in charge of the dayto-day administration of the various food regulations. In the field, there were seven (later five) regional offices each under the direction of a Regional Director. In each of these regional offices there »as a Compliance Division in which the enforcement function was lodged and to which all of the investigators were attached. This unit was under the immediate supervision of the Regional Director, but it received technical direction from the Washington office since all such units received policy compliance directives from central h e a d q u a r t e r s . ^ Reports of investigations made by field offices were forwarded periodically to the central office for recommendation as to appropriate action. O n c e a decision had been reached to proceed against the alleged violator, formal administrative proceedings were begun. In carrying this out the W a r Food Administration drew heavily on the previous experience of the Department of Agriculture under such regulatory statutes as the Perishable Commodities Act, and the Packers and Stockyards Act.** Briefly, this meant that those accused of infractions of existing law or regulations made pursuant to the law were to be given adequate notice and hearing. Disobedience of food order provisions was handled in accordance with Procedural Regulation No. 1, which provided that the hearings and the preparation of formal complaints were the responsibility of the Regional Director in the field office where the alleged violation had occurred. Proceedings were initiated by a formal letter to the violator stating the basis of the action and requesting a reply from the accused person within five days. If the latter did not request a hearing, the Regional Director had one of three alternative courses of action; he could dismiss complaint, he could issue a letter of warning against the continuation of the violation, or, finally, he could refer the entire matter to the Washington office for further a c t i o n . ^ Formal hearings machinery was established for those desiring to be heard. A hearings officer, usually an attorney from the Solicitor's office, was selected and notice was sent to the violator of the hearing date accompanied by the warning that failure to appear would constitute a waiver of his right to appeal. In some instances to expedite proceedings, prehearing conferences were held which were designed either to obtain a simplification of the issues or to g e t stipulations of fact and agreement with respect to the various documents to be presented as evidence.*® At the hearings, parties to the proceedings were permitted

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the r i g h t of c o u n s e l . A r e p r e s e n t a t i v e o f the War Food Admini s t r a t i o n p r e s e n t e d the c a s e f o r the Government and the p e r son a c c u s e d r e s p o n d e d w i t h documents and f a c t s i n s u p p o r t o f h i s argument. A l l t e s t i m o n y and e v i d e n c e was s u b m i t t e d under o a t h , but the r u l e s o f e v i d e n c e which p r e v a i l e d in c o u r t s o f law and e q u i t y w e r e n o t c o n t r o l l i n g . I n s t e a d , an i n f o r m a l p r o c e d u r e was a d o p t e d , the t e s t of a d m i s s i b i l i t y b e i n g " t h e r e l i a b i l i t y , r e l e v a n c y and p r o b a t i v e f o r c e o f the e v i d e n c e o f f e r e d . " * 7 A s t e n o g r a p h i c r e c o r d was k e p t of the e n t i r e p r o c e e d i n g and t h i s f o r m a l l y t i t l e d , the d o c k e t , s e r v e d as the b a s i s f o r recommended a c t i o n by the R e g i o n a l D i r e c t o r . H i s powers were l i m i t e d t o e i t h e r the d i s m i s s a l o f the c o m p l a i n t o r the i s s u a n c e o f a l e t t e r o f w a r n i n g o r d e r i n g the v i o l a t o r to c e a s e and d e s i s t from a g i v e n c o u r s e of a c t i o n . I f t h e R e g i o n a l D i r e c t o r f e l t t h a t more d r a s t i c s a n c t i o n s w e r e n e e d e d t o o b t a i n c o m p l i a n c e , t h e d o c k e t was t h e n f o r w a r d e d t o t h e D i r e c t o r o f Food D i s t r i b u t i o n . The l a t t e r would then i s s u e a f i n a l o r d e r w h i c h m i g h t e i t h e r t a k e t h e f o r m o f a s u s p e n s i o n o r d e r o r t h e r e f e r r a l o f t h e e n t i r e c a s e t o the Department o f J u s t i c e f o r c r i m i n a l p r o c e e d i n g s . S u s p e n s i o n p e n a l t i e s w e r e f o u n d i n a l l f o o d o r d e r s . Such p u n i s h m e n t meant t h a t a v i o l a t o r w o u l d be d e n i e d t h e p r i v i l e g e o f r e c e i v i n g , u s i n g o r d e l i v e r i n g any m a t e r i a l s u b j e c t t o p r i o r i t y o r a l l o c a t i o n c o n t r o l . 4 ® B e f o r e any f i n a l o r d e r was i s s u e d , h o w e v e r , t h e a c c u s e d was e n t i t l e d t o be n o t i f i e d o f t h e i m p e n d i n g d e c i s i o n and t o be g i v e n f i v e d a y s w i t h i n w h i c h t o ask the D i r e c t o r o f Food D i s t r i b u t i o n f o r e i t h e r a r e c o n s i d e r a t i o n or m o d i f i c a t i o n o f the o r d e r . * ' F o r t h e f i s c a l y e a r 1944, such p r o c e e d i n g s r e s u l t e d i n t h e issuance of a dozen suspension o r d e r s denying to v i o l a t o r s of f o o d r e g u l a t i o n s t h e use o f c r i t i c a l m a t e r i a l s f o r p e r i o d s r a n g i n g from f i f t e e n d a y s t o s i x m o n t h s . F o r v i o l a t i o n s o f meat o r d e r s , d u r i n g t h e same p e r i o d , 223 l i c e n s e s w e r e r e voked. When such a c t i o n f a i l e d , t h e a i d o f t h e c o u r t s was s o u g h t through i n j u n c t i o n or c r i m i n a l p r o s e c u t i o n . The p e r s i s t e n t v i o l a t o r found h i m s e l f s u b j e c t t o p r o s e c u t i o n u n d e r S e c t i o n 35a o f t h e C r i m i n a l C o d e , 5 1 p a r a g r a p h 5 o f S e c t i o n 301 o f the S e c o n d War P o w e r s A c t , and " u n d e r any and a l l o t h e r a p p l i c a b l e l a w s . " A g a i n t h e d o c k e t was made t h e b a s i s o f p r o s e c u t i o n . If a d d i t i o n a l f a c t s w e r e n e e d e d , t h e C o m p l i a n c e B r a n c h was d i r e c t e d t o o b t a i n them t h r o u g h i t s i n v e s t i g a t o r s and a c c o u n t ants. The e v i d e n c e was p r e p a r e d by t h e S o l i c i t o r ' s O f f i c e o f the War Food A d m i n i s t r a t i o n f o r t r a n s m i s s i o n t o t h e D e p a r t m e n t o f J u s t i c e . The l a t t e r , t h r o u g h i t s D i s t r i c t A t t o r n e y s , handled t h e c a s e i n t h e f e d e r a l c o u r t s . 5 2 F o r t h e f i s c a l y e a r 1944 c r i m i n a l c o n v i c t i o n s o r i n j u n c t i o n s w e r e handed down by the f e d e r a l c o u r t s in e i g h t y - s i x c a s e s . About h a l f o f t h e s e were c o n c e r n e d w i t h i n j u n c t i o n s w h i c h r e s t r a i n e d i n d i v i d u a l s from c o n t i n u e d v i o l a t i o n o f f o o d o r d e r p r o v i s i o n s . A t t h e end o f

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ORDERS

the y e a r an a d d i t i o n a l 125 cases » e r e still p e n d i n g in the c o u r t s . 53 O n the w h o l e , h o w e v e r , resort to s a n c t i o n s , e i t h e r in the form o f s u s p e n s i o n o r d e r s or c o u r t a c t i o n , took p l a c e in relatively few i n s t a n c e s , such a c t i o n b e i n g reserved for the p e r s i s t e n t e v a d e r . L e s s than 10 per c e n t of the a c t i o n s w e r e o f this n a t u r e and s u c h p e n a l t i e s as were imposed had m e r e l y a n u i s a n c e v a l u e . E v e n w h e r e s e n t e n c e s for v i o l a t i o n w e r e m e t e d out, s e n t e n c e w a s s u s p e n d e d , p e n d i n g a p r o m i s e to c o m p l y w i t h the o r d e r . T h e r e l a t i v e use of s a n c t i o n s as c o m p a r e d w i t h the a t t e m p t to obtain v o l u n t a r y c o m p l i a n c e w i t h the p r o v i s i o n s o f the food o r d e r can be g a t h e r e d from the f o l l o w i n g table for the fiscal y e a r 1944. 5 5 Kind of Action Number of Cases C o n v i c t i o n s and c o u r t o r d e r s 86 Suspension orders 12 L i c e n s e and permit r e v o c a t i o n s 223 Warning letters 1,044 Total

1,365

O n l y a s m a l l p r o p o r t i o n of the cases were c o n c e r n e d w i t h court a c t i o n s and even if s u s p e n s i o n o r d e r s and license revoc a t i o n s were added to this figure, the total r e p r e s e n t e d a m i n o r p e r c e n t a g e of the voluntary a c t i o n s taken t h r o u g h the use of w a r n i n g l e t t e r s . •Summary and

Cone lus ion

For the fiscal y e a r 1943 the W a r Food A d m i n i s t r a t i o n s p e n t a total of $ 1 , 3 6 7 , 5 4 7 for the p r e p a r a t i o n , s u p e r v i s i o n , and e n f o r c e m e n t of w a r food o r d e r s . For the next two s u c c e e d i n g fiscal years it told a C o n g r e s s i o n a l A p p r o p r i a t i o n s s u b c o m m i t t e e that it desired to spend $ 8 , 7 2 2 , 1 5 3 and $ 9 , 6 9 1 , 2 5 0 , r e s p e c t i v e l y . ^ T h e s e s t a t i s t i c s show how large the food orders loomed in the food p i c t u r e . M e r e g o v e r n m e n t a l e x p e n d i t u r e , by itself, p r o v i d e s no real m e a s u r e of the i m p o r t a n c e of the food order. From an a d m i n i s trative s t a n d p o i n t , h o w e v e r , the s i g n i f i c a n c e of the food order lies in the fact that it represented a s i m p l i f i e d form of g o v e r n m e n t a l c o n t r o l . Primary p o i n t s in the d i s t r i b u t i v e process -- the w h o l e s a l e r , r e t a i l e r and p r o c e s s o r -- w e r e regulated in the i n t e r e s t of the w a r e f f o r t . In m a n y i n s t a n c e s the a p p l i c a t i o n of food o r d e r s to r e l a t i v e l y few p e o p l e brought a b o u t a m o r e e q u i t a b l e d i s t r i b u t i o n and e l i m i n a t e d the necessity for r a t i o n i n g , a more complex and e x p e n s i v e adm i n i s t r a t i v e p r o c e s s . Thus in 1944, for e x a m p l e , the u p w a r d trend in the c o n s u m p t i o n of fluid milk was c h e c k e d by a food order w h i c h p r o v i d e d that the sales of milk by h a n d l e r s should not exceed that of J u n e 1943. As a result a r a t i o n i n g program was u n n e c e s s a r y . In a d d i t i o n , as we have noted in p r e v i o u s

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pages, food o r d e r s were o f d i r e c t b e n e f i t t o governmental procurement programs.®^ I t i s not u n f a i r t o say that w i t h o u t the a s s i s t a n c e of food o r d e r s many food programs would have foundered. The war food o r d e r s c o n t r i b u t e d in l a r g e measure t o the e f f e c t i v e n e s s and u n i t y of the o v e r - a l l food program.

CHAPTER

VII

PRIORITIES, REQUISITIONS AND EXPORT CONTROLS Introduction Whenever existing purchase programs bogged down, the Government was able to use priority orders and requisitions as additional instruments to implement its buying activities. These methods, however, were only employed as a last resort. Through a series of executive orders the priority and requisitioning authority was lodged in the War Production Board. Late in 1942, the power was divided between the War Production Board and the Department of Agriculture, with the former retaining its preeminence over industrial materials, and the latter receiving primary power over food.* Food

Prior ities Regulation

No.

1

As a result of the executive order of December 5, 1942, the Secretary of Agriculture, and later the War Food Administrator, could issue priorities on governmental contracts for the purchase of food whenever such ratings were considered to be necessary for the defense of the United States. More specifically it was within their power to "assign priorities with respect to deliveries under any such contract, order, subcontract or suborder in preference to other contracts or orders for the purpose of assuring,such p r i o r i t y . " ^ Vendors receiving such rated orders from federal agencies were compelled to fill them in preference to orders of a lower rating or those with no priority rating " e v e n though such deferment may cause defaults under other contracts or purchase o r d e r s . " Thus governmental agencies with purchase orders for food were assured that their orders would be given p r e f e r e n c e . 3 The administration of food priorities was m a d e the responsibility of the Food Distribution Administration. Its head was empowered to assign priority ratings " t o contracts, purchase orders or deliveries concerning food by means of priority rating certificates or at his discretion by other m e a n s . T h e " o t h e r m e a n s " meant that he could also issue specific orders on particular deliveries and that such were to take precedence over all priority ratings.

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W i t h i n t h e Food D i s t r i b u t i o n A d m i n i s t r a t i o n t h e power t o a d m i n i s t e r p r i o r i t y r e g u l a t i o n s »as d i v i d e d between the Deputy D i r e c t o r in c h a r g e of t h e c i v i l i a n b r a n c h e s and t h e Deputy D i r e c t o r f o r P r o c u r e m e n t C o o r d i n a t i o n . The f i r s t named o f f i c i a l d i r e c t e d t h e i s s u a n c e of p r i o r i t i e s f o r a l l b a s i c c i v i l ian uses while the l a t t e r granted p r i o r i t i e s to federal agenc i e s in o r d e r t o b o l s t e r t h e i r p r o c u r e m e n t p r o g r a m s . ^ Food p r i o r i t y r a t i n g s g r a n t e d u n d e r Food D i s t r i b u t i o n Regul a t i o n No. 1 r a n g e d in o r d e r of p r e c e d e n c e from t h e h i g h e s t r a t i n g FR-1 t o t h e l o w e s t r a t i n g FR-10. A l l g o v e r n m e n t food o r d e r s , e x c e p t t h o s e f o r s e t - a s i d e or r a t i o n e d f o o d , were a u t o m a t i c a l l y g i v e n the FR-10 r a t i n g . P r o c u r e m e n t a g e n c i e s , however, agreed not to use the r a t i n g without f i r s t o b t a i n i n g t h e a p p r o v a l of t h e Deputy D i r e c t o r f o r P r o c u r e m e n t C o o r d i n a t i o n . A f o r m a l a p p l i c a t i o n t o t h e same o f f i c i a l was r e q u i r e d f o r r a t i n g s h i g h e r t h a n FR-10. The q u a n t i t y of food f o r w h i c h a r a t i n g was r e q u e s t e d h a d t o be w i t h i n t h e l i m i t s o f an a p p r o v e d a l l o c a t i o n . In a d m i n i s t e r i n g p r i o r i t i e s f o r p r o c u r e m e n t , t h e Deputy Dir e c t o r f o r P r o c u r e m e n t C o o r d i n a t i o n w a s a s s i s t e d b y an a d v i s o r y c o m m i t t e e c o n s i s t i n g o f r e p r e s e n t a t i v e s o f t h e Army, N a v y , I . e n d - L e a s e A d m i n i s t r a t i o n , and t h e D e p u t y D i r e c t o r i n c h a r g e of the c i v i l i a n b r a n c h e s . ^ F e d e r a l a g e n c i e s which were unable to f i l l t h e i r purchase orders brought t h a t f a c t to the a t t e n t i o n of t h e D e p u t y D i r e c t o r f o r P r o c u r e m e n t C o o r d i n a t i o n and r e q u e s t e d a f o o d p r i o r i t y r a t i n g . The l a t t e r , a f t e r c o n s u l t a t i o n w i t h c o m m i t t e e members, a c t e d upon t h e r e q u e s t . ^ A f t e r a p r i o r i t y r a t i n g w a s o b t a i n e d , i t w a s a p p l i e d by e i t h e r t h e c l a i m a n t agency or the commodity b r a n c h of the Food D i s t r i b u t i o n A d m i n i s t r a t i o n i n t h e f o l l o w i n g f a s h i o n . Where t h e v e n d o r v o l u n t a r i l y a g r e e d t o f u r n i s h t h e r e q u i r e d a m o u n t s of f o o d , t h e u s e of t h e p r i o r i t y r a t i n g was l i m i t e d t o t h e g u a r a n t e e o f d e l i v e r y o f f o o d on a d e s i r e d d a t e . B u t w h e r e t h e v e n d o r was u n w i l l i n g t o f i l l t h e p u r c h a s e o r d e r s i n t h e n e e d e d a m o u n t s , a r e g i s t e r e d l e t t e r was s e n t t o him s p e c i f y i n g t h e f o l l o w i n g i n f o r m a t i o n : t h e amount of t h e commodity o r d e r , t h e d e l i v e r y d a t e , t h e d e l i v e r y and p a c k a g i n g i n s t r u c t i o n s , t h e o r d e r n u m b e r , an o f f e r t o p a y t h e c e i l i n g p r i c e , a n d a d e f i n i t e s t a t e m e n t t o t h e e f f e c t t h a t t h e l e t t e r was a p u r c h a s e o r d e r and n o t a r e q u i s i t i o n . The v e n d o r was t h e n r e q u i r e d t o f i l l t h e o r d e r in p r e f e r e n c e to a l l h i s o t h e r o r d e r s w i t h no a s s i g n e d p r i o r i t y r a t i n g . I f t h e v e n d o r s t i l l p r o v e d r e c a l c i t r a n t , t h e m a t t e r was b r o u g h t t o t h e a t t e n t i o n of t h e Deputy D i r e c t o r f o r P r o c u r e ment C o o r d i n a t i o n and a p p r o p r i a t e a c t i o n was t a k e n t o compel t h e d e l i v e r y of t h e n e c e s s a r y food i t e m s . S t e p s w e r e t a k e n e i t h e r t o d e p r i v e t h e v e n d o r o f h i s r i g h t s t o War P r o d u c t i o n Board p r i o r i t i e s f o r c r i t i c a l m a t e r i a l s , or t o compel d e l i v ery t h r o u g h the use of i n j u n c t i o n , or t o r e q u i s i t i o n the q u a n t i t i e s of f o o d s d e s c r i b e d in t h e r a t e d o r d e r , o r f i n a l l y , to employ t h e c r i m i n a l p e n a l t i e s n o r m a l l y u s e d in t h e e n f o r c e ment of food o r d e r s . "

PRIORITIES, REQUISITIONS A N D EXPORT CONTROLS

103

It was not contemplated originally that food priority certificates would be applied by federal agencies to foodstocks covered by set-aside orders. Presumably these were already reserved for exclusive governmental use. Indeed, for the first year of operation under Food Distribution Regulation No. 1 the use of priorities to acquire set-aside foods was regarded as an emergency procedure. Where requests of this sort were granted, the rating could only be employed by the agencies named in the food reservation order. Gradually, however, a relaxation of this policy took place. This resulted largely from the fact that the reservation clauses of the set-aside orders were rather ambiguous. Some merely announced that the processors had been asked to keep designated amounts for exclusive governmental use. Others, more explicit, stated that allocations of food from the amounts set aside would be made by the Director of Food Distribution in the form of general orders or written notices. As a result of this laxity, some vendors offered their food to the Government and others did not.' Put whether the foods were offered or whether they were not, the important fact was that the food order merely asked the seller to set aside certain quantities of food. It did not require him to either sell or make an offer to sell. Recause of this uncertainty, the Government toward the beginning of 1944 began to experience difficulty in persuading vendors to sell the foods that had been withheld pursuant to a food order. To speed the offerings of such stocks, the Deputy Director for Procurement Coordination directed that letters be sent to vendors advising them to make such food available to the Government. Where such foodstuffs were not offered within fifteen days after the mailing of the letter, priority rated orders calling for the immediate delivery of all set-aside foods were to be served on the vendor as a means of forcing him to release the food to the Government. " Despite the instructions of the Deputy Director, the widespread employment of the food priority power did not occur for it was recognized that indiscriminate use of the power would undermine the authority of other controls which the Administration had adopted. This philosophy, plus the existence of an administrative check requiring all agencies within and without the War Administration to justify each request for a priority rating, acted as effective brake on the temptation to exercise the power more widely. In most instance the fact that the Government could use such power was sufficient to compel the vendor to make delivery of needed quantities of food. 11 Food

Rcquis

it

ions

Food requisitions, like priorities, were regarded as a weapon of last resort being employed by the War Food Adminis-

104

WARTIME FOOD PROCUREMENT AND

PRODUCTION

tration only w h e n all other m e t h o d s had failed to provide g o v e r n m e n t b u y i n g p r o g r a m s w i t h s u f f i c i e n t q u a n t i t i e s of food. B u t u n l i k e its c o u n t e r p a r t , the food r e q u i s i t i o n w a s an actual s e i z u r e of p r o p e r t y for g o v e r n m e n t a l use. T h e power of the c h i e f e x e c u t i v e to c o m m a n d e e r s u p p l i e s and d e f e n s e a r t i c l e s for the p r o t e c t i o n of the U n i t e d S t a t e s was delegated by him to the C h a i r m a n of the W a r P r o d u c t i o n Board. ^ Late in 1942, the S e c r e t a r y o f A g r i c u l t u r e received the a u t h o r i t y to r e q u i s i t i o n food for human and animal consumption . Since many p r o d u c t s had b o t h food and i n d u s t r i a l uses, howe v e r , c o l l a b o r a t i o n in the e x e r c i s e of the r e q u i s i t i o n i n g authority c o n t i n u e d . As a result of n e g o t i a t i o n s between the two a g e n c i e s , it w a s agreed that the p o w e r w o u l d be shared in regard to those foods w i t h a dual p u r p o s e . T o avoid possible c o n f l i c t s , e a c h agency promised that it w o u l d clear requisitions with the o t h e r before any final a c t i o n was taken. Moreover, n o r e q u i s i t i o n s w o u l d be issued by the War Production Board for foods w h i c h were e x c l u s i v e l y for human or animal c o n s u m p t i o n . T h e a g r e e m e n t was limited to the two parties. All other a g e n c i e s were required to s u b m i t their requests for food r e q u i s i t i o n s to the D e p a r t m e n t of A g r i c u l t u r e for certification as to their c o n s i s t e n c y w i t h the l a t t e r ' s supply and a l l o c a t i o n program.** Requisition

Procedure

A s a result of o r g a n i z a t i o n a l c h a n g e s , the p o w e r to requisition food b e c a m e the p r o v i n c e of the W a r Food A d m i n i s t r a tion. W i t h i n that agency the Food D i s t r i b u t i o n A d m i n i s t r a t i o n was given the task of r e v i e w i n g such a c t i o n s , or in case a proposal was issued by one of its commodity b r a n c h e s , to grant its a p p r o v a l . ^ Each c o m m o d i t y branch in the d i s c h a r g e of its p r o c u r e m e n t functions could ask for the use of the food r e q u i s i t i o n . H o w ever, the p r o c e d u r e s p e c i f i e d that a m e m o r a n d u m should be sent to the D e p u t y D i r e c t o r for P r o c u r e m e n t C o o r d i n a t i o n s t a t i n g that all o t h e r m e t h o d s to o b t a i n the n e e d e d foodstuffs had failed. W h e r e the r e q u e s t of the commodity b r a n c h w a s a p p r o v e d , a formal docket w a s prepared c o n t a i n i n g the f o l l o w i n g information: (1) a m e m o r a n d u m from the c o m m o d i t y branch to the Director of the Food D i s t r i b u t i o n A d m i n i s t r a t i o n d e s i g n e d to explain w h y the a c t i o n w a s b e i n g taken, t o g e t h e r with copies of the c o r r e s p o n d e n c e with the firm a g a i n s t whom the requisition was to be s e r v e d and any other p e r t i n e n t d a t a needed by the D i r e c t o r to make a d e c i s i o n ; ( 2 ) a d e t e r m i n a t i o n of the facts w i t h r e s p e c t to the a c t i o n prepared for the signature of the D i r e c t o r ; (3) a copy of the r e q u i s i t i o n filled in for the s i g n a t u r e of the D i r e c t o r ; (4) a copy of the receipt for the d e l i v e r y of the r e q u i s i t i o n e d goods; ( 5 ) a s t a t e m e n t

PRIORITIES, REQUISITIONS A N D EXPORT CONTROLS

105

fro» the Deputy Director for Procurement Coordination recommending the approval of the docket; (6) a certification from the Solicitor of the Department to the effect that the legal papers for the requisition were in order; and (7) finally, a Bet of instructions to *be used by the United States Marshal for serving of the papers. The formal docket was then forwarded to the commodity branch making the request to the Solicitor, and to the Deputy Director for Procurement Coordination, before being sent to the Director of Food Distribution. The latter either approved or disapproved the action to be taken. 1 6 After the requisition »as signed by the Director, it was served by the United States Marshal on the persons having possession of the food products. T o facilitate the service of the requisition, the offices of the Food Distribution Administration in the city in which the food was located received copies of both the requisition and receipts for delivery. Commodity branch representatives then identified the commodities to be seized and the Transportation and Warehousing Branch which had the custodial function over all foods, removed the products from the premises and arranged for storage in a suitable warehouse. After the requisition had been served, a copy signed by the United States Marshal was returned to the Washington office as official notice that the requisitioning action "had been completed.*' After the food was commandeered, the government agency exercising the power of requisition was required to make a pre* liminary determination of its value. The owner was entitled to file a written objection to such valuation. 1 " In June 1943, the Associate War Food Administrator was officially designated as the Requisitioning Officer and assigned the task of reviewing all requisitioning proposals whether initiated within the agency or by other departments of the Government. All pertinent papers were forwarded to him and he acted for the War Food Administrator in all such cases. All determinations made by the Requisitioning Officer were transmitted "in writing to the Government Department or agency, or the agency within the War Food Administration initiating the proposal. The shift made no substantial change in the procedure of the requisitioning agencies, merely transferring the decisionmaking authority to a higher level. This arrangement continued only for a short while. The resignation of the Associate War Food Administrator and the redesignstion of the Director of Food Distribution as the requisitioning officer resulted in a return to the former procedure. 2 0 Although the power to requisition was vast, its exercise by the Government for food purposes was limited. For the period October 16, 1942, through April IS, 1944, when shortages occurred, only eleven requisitions were approved and served by the Department of Agriculture and the War Food Administration. Two others were approved for service by the War Department.

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W A R T I M E F O O D PROCUREMENT A N D PRODUCTION

These covered 720,000 pounds of beef, 1,097,000 pounds of frozen pork, and 264,000 pounds of poultry for the former agency, and 6 5 5 , 0 0 0 pounds of beef and 35 cars of potatoes for the latter. For the period October 16, 1943, through April 15, 1944, also a time of stringency in food supplies, eleven requisitions were approved of which nine were served by the War Food Administration and twelve others were approved for service by the War Department, of which only three were actually used.21 Control

over

the Foreign

Purchase

and Importation

of

Food

Programs for the importation of foods from sources outside of continental United States were generally initiated whenever domestic supplies were inadequate, either in quantity or variety to meet the needs of various claimant groups. To supplement such deficiencies in our supply, purchases were undertaken either by the Government or by private persons. The importation of such foods was then regulated through the use of shipping controls which assigned boat space to food and non-food materials in accordance with their relative contribution to the war effort. Since import controls covered both food and non-food items, it is worth while to digress for a moment in order to describe the general evolution of such regulations. By the end of 1940 purchases for import had grown so large in proportion to the available boat space that the Government was faced with the necessity for instituting some system of preferential treatment for the more essential u s e r s . ® In 1941 a system of voluntary coordination under the direction of the Maritime Commission was established. The Office of Production Management advised the shipping agency as to the quantities and kinds of items to be imported. Early in the year this advisory aspect was amplified. The Maritime Commission promised to be guided in its loadings by the ratings assigned to each critical material by the Office of Production Management. Commodity committees of the latter were instructed to prepare tonnage and rating requirements. Later a more formal and effective means of liaison was created in the form of the Inter-Departmental Shipping Priorities Advisory Committee. It assumed the function of developing import quotas for transmission to the M a r i t i m e Commission for the letter's guidance.23 When the War Shipping Administration was established by executive order on February 7, 1942, the whole arrangement for the transmittal of import schedules and quotas as a guide to the shipping agencies in their loading of vessels was formalized. With minor nodifications in its procedure, the inter-departmental committee continued this function for both food and non-food m a t e r i a l s throughout the war.2*

PRIORITIES, REQUISITIONS A N D EXPORT C O N T R O L S Control

over

Food

107

Purchases

The strengthening of import controls was accompanied by the vesting of general supervision over economic relations with other countries in the Board of Economic W a r f a r e . ^ Governmental purchase of commodities produced outside of the United States was therefore placed within the scope of the powers granted to this agency. A later executive order qualified this authority by delegating to the Chairman of the War Production Board general supervision and direction of the procurement and production programs related to the war effort. To resolve this apparent conflict in functions another executive order w a s issued which confirmed the presidential grant of power to the War Production Board. The latter was to issue directives to the Board of Economic Warfare for the purchase of materials outside of the United States, but upon receipt and execution of such directives, the latter could " d e t e r m i n e the policies, plans, procedures and method of the several Federal departments, establishments and agencies with respect to the procurement and production of such materials and commodities...."^ Within the War Production Board, the determination of the amounts of food to be imported was made by the Foods Requirements Committee. On the basis of such decisions War Production Board directives were prepared for execution by the Board of Economic W a r f a r e . ^ By Directive No. 2 of the latter agency the Commodity Credit Corporation of the Department of Agriculture was made after May 20, 1942, the " s o l e and exclusive a g e n c y " for the negotiation of contracts for the importation of all agricultural commodities.^" This directive was later supplemented by an agreement between the Commodity Credit Corporation and the Agricultural Marketing Administration, whereby the latter promised that, whenever its Lend-Lease purchases required that it make purchases of foodstuffs in foreign countries, it would request the Commodity Credit Corporation to buy such foods for its account. Thus in all instances food purchases overseas would be made by the Commodity Credit Corporation at the request of the Board of Economic Warfare. The food order of December 5, 1942, modified the powers of the Chairman of the War Production Board to issue food directives to the Board of Economic Warfare. T h e r e a f t e r , the Secretary of Agriculture prepared instructions relating to the importation of food for human and animal consumption. Directives for foods with industrial uses were issued jointly by both agencies to the Board of Economic Warfare. On all other items relating to the importation of materials and supplies required for the war effort, the power of the Chairman of the War Production Board remained unimpaired.^® The presidential food order, however, did not clarify relationships between the Department of Agriculture and the Board of Economic Warfare in regard to the manner in which food

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directives were executed. It had assigned to the Secretary of Agriculture the power to " p r o m u l g a t e policies to govern the purchase and procurement of food by all other [my italics] Federal a g e n c i e s . " 3 1 But by Executive Order No. 9128, issued approximately three-quarters of a year earlier, the Board of Economic Warfare was responsible for the execution of directives relating to materials and commodities "required to be imported for the war production e f f o r t . " Furthermore, it was to "determine the policies, procedures and methods of the several departments ... with respect to the foreign procurement and production of such c o m m o d i t i e s . " ® Clearly, the two executive orders were in conflict with one another. The Secretary of Agriculture could have argued that his powers over foreign food procurement were superior to those of the Board of Economic Warfare. Moreover, this assertion could have been buttressed by a provision in ExecuOrder No. 9280 which stated that " a n y provision of any Executive Order or proclamation conflicting with this Executive Order is superseded to the extent of such c o n f l i c t . " ® But he did not choose to do so. Instead, in February 1943, he concluded a memorandum of understanding with the Board of Economic Warfare to clarify the point at issue. The power of the latter agency to execute purchase directives was confirmed but it was forced to share its policy-making powers in connection with such directives with the Commodity Credit Corporation. All contracts for the purchase of foodstuffs were to be negotiated by the Board of Economic Warfare but the Corporation was to be consulted whenever the terms and policies of such contracts affected domestic procurement. 3 * Thus, except for a slight modification in the policy-making powers of the Board of Economic Warfare, the status quo was maintained on the foreign purchase of foodstuffs. Departmental

Coordinat

ion of Foreign

Food

Purchases

In January 1943, the Commodity Credit Corporation became the virtual czar over the Department's import programs. It was made responsible for all foreign purchases of food and food facilities. 3 ' In addition, its head was made Chairman of the important departmental Committee on Foreign Purchase and Importation. The functions of this committee gave it a paramount position on imports. While each member was required to submit the foreign food requirements of his agency to the full committee, it was the Chairman, in consultation with other committee members who made recommendations to the Secretary of Agriculture on the departmental "requirements for foreign purchase and importations of food and food facilities." 3 ® Finally, on the a 11-important matter of securing shipping space for commodities bought overseas, the Chairman was the liaison officer between the Department and the War Production

PRIORITIES,

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B o a r d . As the s e c r e t a r i a l r e p r e s e n t a t i v e , he p r e p a r e d s c h e d u l e s o f p r i o r i t i e s f o r v a r i o u s commodities to be b r o u g h t i n t o the country and a r r a n g e d f o r the i n t e g r a t i o n o f t h e s e with s i m i l a r s c h e d u l e s p r e p a r e d by the War P r o d u c t i o n Board for industrial materials.^ In the l i g h t o f l a t e r d e v e l o p m e n t s , i t i s i m p o r t a n t t o d e s c r i b e the r e l a t i o n s h i p o f the Food D i s t r i b u t i o n A d m i n i s t r a t i o n t o t h e Committee on F o r e i g n P u r c h a s e and I m p o r t a t i o n . The D i r e c t o r o f Food D i s t r i b u t i o n was a member o f t h a t comm i t t e e and in o r d e r t o c o r r e l a t e the work o f h i s a g e n c y w i t h t h a t o f t h e c o m m i t t e e , he e s t a b l i s h e d a FDA s u b - c o m m i t t e e on F o r e i g n P u r c h a s e and I m p o r t a t i o n . A l l o f the b u y i n g u n i t s o f the Food D i s t r i b u t i o n A d m i n i s t r a t i o n w e r e r e p r e s e n t e d on t h e s u b - c o m m i t t e e . Each commodity branch d e s i r i n g t o i m p o r t f o o d s was r e q u i r e d t o p r e p a r e a s t a t e m e n t o f i t s p r o p o s e d program f o r t h e c o n s i d e r a t i o n o f the s u b - c o m m i t t e e . Upon a p p r o v a l by t h e l a t t e r , a p r o p o s e d d i r e c t i v e was d r a f t e d f o r t h e c o n s i d e r a t i o n o f the Committee on F o r e i g n P u r c h a s e and I m p o r t a t i o n . " As a g e n e r a l i z a t i o n one may say t h a t t h e s u b - c o m m i t t e e w i t h i n the Food D i s t r i b u t i o n A d m i n i s t r a t i o n b o r e t h e same r e l a t i o n s h i p to i t s p u r c h a s i n g u n i t s as d i d the o v e r a l l d e p a r t m e n t a l c o m m i t t e e t o i t s member a g e n c i e s . The Commodity C r e d i t C o r p o r a t i o n , as an a g e n t o f the War Food A d m i n i s t r a t i o n , c o n t i n u e d t o p u r c h a s e f o o d from f o r e i g n s o u r c e s u n t i l S e p t e m b e r 25, 1943, when the F o r e i g n Economic A d m i n i s t r a t i o n was c r e a t e d by e x e c u t i v e o r d e r . A month l a t e r che f o r e i g n f o o d p r o c u r e m e n t f u n c t i o n s o f the W&r Food Admini s t r a t i o n w e r e a s s i g n e d t o the n e w l y c r e a t e d a g e n c y . O n l y the p r o c u r e m e n t o f f o o d s in Canada and s u g a r i n the C a r r i b e a n a r e a were exempted b e c a u s e o f the c l o s e r e l a t i o n s h i p t h a t t h e s e b o r e t o d o m e s t i c p r o c u r e m e n t p r o g r a m s . The War Food Adm i n i s t r a t i o n was l e f t w i t h the p o l i c y - m a k i n g f u n c t i o n o v e r a l l o c a t i o n s and the power t o i s s u e d i r e c t i v e s t o the F o r e i g n Economic A d m i n i s t r a t i o n , a l o n e o r in c o n j u n c t i o n w i t h t h e War P r o d u c t i o n Board where f o o d m a t e r i a l s had i n d u s t r i a l u s e s . " In January 1944, when the O f f i c e o f D i s t r i b u t i o n r e p l a c e d the Food D i s t r i b u t i o n A d m i n i s t r a t i o n i t r e c e i v e d the l a t t e r ' s powers o v e r i m p o r t s . The C o m m i t t e e on F o r e i g n P u r c h a s e and I m p o r t a t i o n c o n t i n u e d t o recommend t o the War Food A d m i n i s t r a t o r the q u a n t i t i e s o f f o o d s t o be i m p o r t e d i n t o the U n i t e d S t a t e s , the s o u r c e s o f s u p p l y and the methods o f p u r c h a s e . I t a l s o i s s u e d d i r e c t i v e s to the F o r e i g n Economic A d m i n i s t r a tion.40 Two months l a t e r the F o r e i g n Economic A d m i n i s t r a t i o n began t o q u e s t i o n the d i r e c t i v e s i s s u e d by the Committee on F o r e i g n P u r c h a s e and I m p o r t a t i o n . The m o t i v e s b e h i n d t h i s a c t i o n a r e not e n t i r e l y c l e a r . In p a r t i t might have been due t o t h e d e s i r e o f t h e F o r e i g n Economic A d m i n i s t r a t i o n f o r more l e e w a y in the e x e c u t i o n o f the p u r c h a s e d i r e c t i v e s . In p a r t i t m i g h t have been caused by a d i s p u t e between the two a g e n c i e s o v e r t h e i r r e s p e c t i v e powers in t h e a l l o c a t i o n o f f o o d to f o r e i g n claimants.

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WARTIME FOOD PROCUREMENT AND PRODUCTION

Whatever the r e a l r e a s o n , the f a c t remained t h a t the Fore i g n Economic A d m i n i s t r a t i o n s t a t e d f l a t l y t h a t i t would n o t b e b o u n d by t h e d i r e c t i v e s i s s u e d t o i t by t h e C o m m i t t e e on F o r e i g n P u r c h a s e a n d I m p o r t a t i o n . I t s D i r e c t o r of Food P r o g r a m s w r o t e t h e D i r e c t o r of t h e O f f i c e o f D i s t r i b u t i o n t o t h i s e f f e c t , b u t e x p r e s s e d i n s t e a d h i s w i l l i n g n e s s t o be b o u n d by t h e d i r e c t i v e s of t h e O f f i c e o f D i s t r i b u t i o n . ^ T h e D i r e c t o r o f t h e l a t t e r o f f i c e r e p l i e d t h a t he r e g r e t t e d t h a t s u c h a d e c i s i o n h a d b e e n m a d e , f o r a s he saw i t , s u c h a c t i o n would only i s o l a t e t h e F o r e i g n Economic A d m i n i s t r a t i o n from t h e a c t u a l s t e p s l e a d i n g t o t h e p r e p a r a t i o n of t h e d i r e c t i v e . He c l o s e d by i n d i c a t i n g t h a t a new i n t e r - a g e n c y c o m m i t t e e on f o o d i m p o r t s was b e i n g c o n s i d e r e d . * ' In A p r i l 1 9 4 4 , t h e Comm i t t e e on F o r e i g n P u r c h a s e a n d I m p o r t a t i o n was a b o l i s h e d . In i t s s t e a d an I n t e r - A g e n c y Food I m p o r t a t i o n C o m m i t t e e was b r o u g h t i n t o b e i n g c o n s i s t i n g o f t h e D i r e c t o r of D i s t r i b u t i o n a s C h a i r m a n , t h e D i r e c t o r s of T r a n s p o r t a t i o n , P r o d u c t i o n , and F o r e i g n A g r i c u l t u r a l R e l a t i o n s , t h e P r e s i d e n t of t h e Commodit y C r e d i t C o r p o r a t i o n a n d t h e r e p r e s e n t a t i v e s of s u c h a g e n c i e s as the Chairman might i n v i t e . * * The new c o m m i t t e e ' s p o w e r s w e r e much t h e same a s i t s p r e d e c e s s o r e x c e p t f o r t h e f a c t t h a t i t s C h a i r m a n was f o r c e d t o s h a r e h i s power o v e r t h e s c h e d u l i n g o f i m p o r t s w i t h t h e D i r e c t o r o f T r a n s p o r t a t i o n . The c o m m i t t e e c o n t i n u e d t o i s s u e d i r e c t i v e s t o the F o r e i g n Economic A d m i n i s t r a t i o n f o r the b a l a n c e of t h e war. Import

Priorities

C l o s e l y a l l i e d t o t h e p r o b l e m o f f o r m u l a t i n g and i s s u i n g p u r c h a s e d i r e c t i v e s was t h e n e e d f o r a c l a r i f i c a t i o n o f a d m i n i s t r a t i v e a u t h o r i t y o v e r t h e i s s u a n c e of s h i p p i n g p r i o r i t i e s . P r i o r t o D e c e m b e r 5, 1 9 4 2 , t h e power of t h e C h a i r m a n o f t h e War P r o d u c t i o n B o a r d o v e r i m p o r t p r i o r i t i e s was e x c l u s i v e . The A d m i n i s t r a t o r o f t h e War S h i p p i n g A d m i n i s t r a t i o n u n d e r t h e e x e c u t i v e o r d e r c r e a t i n g t h a t a g e n c y was d i r e c t e d by t h e P r e s i d e n t t o load v e s s e l s in a c c o r d a n c e w i t h " s c h e d u l e s t r a n s m i t t e d by t h e C h a i r m a n of t h e War P r o d u c t i o n B o a r d p r e s c r i b i n g t h e p r i o r i t y o f movement . . . o f c o m m o d i t i e s and m a t e r i a l s . " * 5 The t r a n s f e r of f o o d j u r i s d i c t i o n t o t h e D e p a r t m e n t of A g r i c u l t u r e , h o w e v e r , i n t r o d u c e d a d u a l i t y in t h e e x e r c i s e of the s h i p p i n g f u n c t i o n . W h i l e d u p l i c a t i o n e x i s t e d on p a p e r , u n i t y of p u r p o s e was n e e d e d i n p r a c t i c e . T h i s r e s u l t e d f r o m a n u m b e r of c o n s i d e r a t i o n s . F i r s t , i t was o b v i o u s t h a t t h e s u c c e s s or f a i l u r e of t h e f o r e i g n food p r o c u r e m e n t p r o g r a m f o r which t h e S e c r e t a r y o f A g r i c u l t u r e was r e s p o n s i b l e h i n g e d on t h e e x t e n t t o w h i c h b o a t s p a c e was made a v a i l a b l e f o r t h e t r a n s p o r t a t i o n o f f o o d s t u f f s t o t h e U n i t e d S t a t e s . C o n v e r s e l y , t h e g r a n t i n g of too much s p a c e t o f o o d s t u f f s m i g h t h a v e an a d v e r s e e f f e c t u p o n t h e q u a n t i t i e s of n o n - f o o d m a t e r i a l s i m p o r t e d f o r t h e w a r p r o -

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111

gram. The War P r o d u c t i o n Board, t h e r e f o r e , had a s t a k e i n the r a t i n g s a s s i g n e d to f o o d as compared v i t h n o n - f o o d ma t e r i a I s . S e c o n d , many c o m m o d i t i e s had b o t h f o o d and i n d u s t r i a l u s e s . The f o o d o r d e r had r e c o g n i z e d t h i s by s t a t i n g t h a t i t e m s in t h i s c a t e g o r y should be s u b j e c t t o the j o i n t d e t e r m i n a t i o n o f b o t h the S e c r e t a r y o f A g r i c u l t u r e and the War P r o d u c t i o n Board Chairman. But i f both a g e n c i e s had e q u a l i t y o f power i n t h i s r e g a r d , ho* would d i f f e r e n c e s between the two be r e c o n c i l e d ? M o r e o v e r , i f each a g e n c y m a i n t a i n e d i t s own system o f s h i p p i n g c o n t r o l s , then d u p l i c a t i o n would e x i s t . U l t i m a t e l y the s i t u a t i o n b o i l e d down t o t h i s : how c o u l d a u n i t y o f c o n t r o l be m a i n t a i n e d and y e t t h e primacy o f each a g e n c y ' s i n t e r e s t be p r o t e c t e d ? To e l i m i n a t e t h e u n c e r t a i n t y in j u r i s d i c t i o n o c c a s i o n e d by the p r e s i d e n t i a l f o o d o r d e r , an i n f o r m a l memorandum o f und e r s t a n d i n g was c o n c l u d e d between the D i r e c t o r o f the D i v i s i o n o f S t o c k p i l i n g and T r a n s p o r t a t i o n D i v i s i o n o f the War P r o d u c t i o n Board and the P r e s i d e n t o f the Commodity C r e d i t C o r p o r a t i o n . Both o f t h e s e o f f i c i a l s as the r e s p e c t i v e heads o f t h e I n t e r - D e p a r t m e n t a 1 S h i p p i n g P r i o r i t i e s A d v i s o r y Comm i t t e e and the Committee on F o r e i g n P u r c h a s e and I m p o r t a t i o n w e r e in a p o s i t i o n t o make an a u t h o r i t a t i v e s t a t e m e n t . Both p a r t i e s a g r e e d t h a t the e x i s t i n g s y s t e m o f c l e a r i n g i m p o r t q u o t a s t h r o u g h the I n t e r - D e p a r t m e n t a l S h i p p i n g A d v i s o r y P r i o r i t i e s Committee should be c o n t i n u e d and t h a t the r a t i n g s on f o o d s t u f f s p r e v i o u s l y a s s i g n e d by t h i s c o m m i t t e e s h o u l d be a c c e p t e d by the Department o f A g r i c u l t u r e p e n d i n g f u r t h e r s t u d y . Through the use o f an e l a b o r a t e system o f i n t e r - r e l a t e d j o i n t s u b - c o m m i t t e e , t h e f o o d i n t e r e s t was g i v e n c o o r d i n a t e s t a t u s w i t h t h a t o f the n o n - f o o d i n t e r e s t . The head o f each f o o d s u b - c o m m i t t e e was n o m i n a t e d by the Chairman o f the Committee on F o r e i g n P u r c h a s e and I m p o r t a t i o n . As a minimum, membership o f t h e s e s u b - c o m m i t t e e s was t o c o n s i s t o f r e p r e s e n t a t i v e s o f the Food D i s t r i b u t i o n Admini s t r a t i o n , the Food P r o d u c t i o n A d m i n i s t r a t i o n , the O f f i c e o f F o r e i g n A g r i c u l t u r a l B e l a t i o n s , the Commodity C r e d i t C o r p o r a t i o n , and t h e S t o c k p i l i n g and T r a n s p o r t a t i o n D i v i s i o n . As a maximum, where c i r c u m s t a n c e s made i t a p p r o p r i a t e , a d d i t i o n a l members were added r e p r e s e n t i n g the Board o f Economic Warf a r e , the O f f i c e o f P r i c e A d m i n i s t r a t i o n , the Department o f S t a t e , and the O f f i c e o f C i v i l i a n Supply o f the War P r o d u c t i o n Boa r d . I t was the t a s k o f each s u b - c o m m i t t e e t o p r e p a r e t e n t a t i v e s c h e d u l e s o f i m p o r t r a t i n g s and q u o t a s . T h e s e w e r e then r e v i e w e d by the Chairmen o f the two s o - c a l l e d " s e n i o r comm i t t e e s , " t h a t i s , t h o s e t h a t had e x i s t e d p r i o r to the c o n c l u s i o n o f the memorandum o f u n d e r s t a n d i n g b e t w e e n t h e two a g e n c i e s . T h e s e i n d i v i d u a l s had e i t h e r the r i g h t t o a c c e p t or r e j e c t the c o n c l u s i o n s o f the s u b - c o m m i t t e e s . But a g a i n the a u t h o r i t y o f the Department o f A g r i c u l t u r e o v e r f o o d

112

WARTIME POOD PROCUREMENT AND PRODUCTION

c o m m o d i t i e s w a s p r o t e c t e d by a r a t h e r e l a b o r a t e a p p e a l s p r o cedu re. If the s e n i o r c o m m i t t e e and the s u b - c o m m i t t e e failed to a g r e e , the i s s u e in d i s p u t e w o u l d b e r e f e r r e d to a p a n e l of t h r e e c o n s i s t i n g o f the C h a i r m a n o f the I n t e r - D e p a r t m e n t a l S h i p p i n g P r i o r i t i e s A d v i s o r y C o m m i t t e e and the C o m m i t t e e on F o r e i g n P u r c h a s e and I m p o r t a t i o n t o g e t h e r w i t h a r e p r e s e n t a tive of the W a r S h i p p i n g A d m i n i s t r a t i o n o f t h e i r j o i n t s e l e c tion. In the u n l i k e l y e v e n t that the p a n e l f a i l e d to a r r i v e at an a c c e p t a b l e d e c i s i o n , the e n t i r e m a t t e r w a s referred to the D i r e c t o r of E c o n o m i c S t a b i l i z a t i o n for final j u d g m e n t . ^ The j o i n t m e m o r a n d u m also b r o u g h t the D e p a r t m e n t of Agric u l t u r e a n d l a t e r the W a r F o o d A d m i n i s t r a t i o n i n t o the m o n t h ly p r o g r a m m i n g of i m p o r t t o n n a g e from v a r i o u s a r e a s of the w o r l d . S u c h s c h e d u l i n g w a s c a r r i e d out by a t h r e e - m a n c o m m i t tee c o m p o s e d of r e p r e s e n t a t i v e s from the C o m m i t t e e on F o r e i g n P u r c h a s e and I m p o r t a t i o n , the I n t e r - D e p a r t m e n t a 1 S h i p p i n g P r i o r i t i e s A d v i s o r y C o m m i t t e e , and the W a r S h i p p i n g A d m i n i s t r a t i o n . S h i p p i n g q u o t a s w e r e m a d e b i n d i n g b e c a u s e the War P r o d u c t i o n B o a r d w a s a b l e to r e l a t e i m p o r t s to s h i p p i n g s p a c e by r e a s o n of its r e q u i r e m e n t that all f e d e r a l a g e n c i e s m u s t n o t i f y it of c o n t e m p l a t e d p u b l i c p u r c h a s e s . * " T h e m o n t h s f o l l o w i n g the c o n c l u s i o n o f the i n t e r - a g e n c y a g r e e m e n t saw the d e v e l o p m e n t of a c o m m e n d a b l e s p i r i t of h a r m o n y b e t w e e n the W a r P r o d u c t i o n B o a r d a n d the W a r Food A d m i n i s t r a t i o n . M u c h of this s u c c e s s w a s due to the f a c t that both a g e n c i e s w e r e r e p r e s e n t e d by men w h o had had c o n s i d e r a b l e exp e r i e n c e in the g i v e and take of i n t e r - a g e n c y r e l a t i o n s h i p s and w e r e i n c l i n e d to c o m p r o m i s e r a t h e r than to s t i c k s t u b b o r n ly to a s i n g l e p o s i t i o n . In a d d i t i o n the first c h a i r m a n of the C o m m i t t e e on F o r e i g n P u r c h a s e and I m p o r t a t i o n w a s favorably d i s p o s e d toward the I n t e r - D e p a r t m e n t a 1 S h i p p i n g P r i o r i ties A d v i s o r y C o m m i t t e e by r e a s o n o f h i s h a v i n g w o r k e d p r e v i o u s l y w i t h it as a m e m b e r of the D e p a r t m e n t of S t a t e . * ' P e r h a p s j u s t as i m p o r t a n t w a s the f a c t that the s h i p p i n g s i t u a t i o n c o r r e s p o n d e d w i t h the a c t u a l n e e d s of b o t h o r g a n i z a t i o n s . E a c h a g e n c y was a b l e to o b t a i n s h i p p i n g s p a c e w i t h out u n d u e i n t e r f e r e n c e w i t h the o t h e r . By early 1943 m a n y c r i t i c a l m a t e r i a l s w e r e in m o r e p l e n t i f u l s u p p l y and in m i d y e a r the a l m o s t c o m p l e t e d e f e a t of the enemy s u b m a r i n e camp a i g n m a d e g r e a t e r q u a n t i t i e s of b o a t s p a c e a v a i l a b l e for i m p o r t s . D u r i n g the same p e r i o d m a n y food items w e r e b e c o m i n g s h o r t and i n c r e a s e d food i m p o r t s could be j u s t i f i e d . The combination of these fortuitous c i r c u m s t a n c e s enabled the W a r P r o d u c t i o n Board to i n c r e a s e its own i m p o r t s and at the s a m e t i m e a l l o t i n c r e a s e d a m o u n t s o f b o a t s p a c e to the W a r Food A d m i n i s t r a t i o n . S h i p p i n g q u o t a s for W a r P r o d u c t i o n B o a r d i t e m s , for e x a m p l e , i n c r e a s e d from 12.7 m i l l i o n long tons in J a n u a r y 1-H

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