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Mr. GILLETT. There is no act of Congress that has authorized any food administrator, is there?

Secretary REDFIELD. As far as I know, there is not.

Mr. GILLETT. Is that council having meetings?

Secretary REDFIELD. Oh, yes. That question of law, I presume, will be covered by the Attorney General. It has not come up to me at all.

Mr. GILLETT. I wondered where he got this title of food administrator?

Secretary REDFIELD. That is in the executive order.

Mr. GILLETT. So I noticed.

Secretary REDFIELD. And we simply followed that out.

Mr. GILLETT. He meets with you regularly, does he?
Secretary REDFIELD. Oh, yes.

The CHAIRMAN. Suppose you tell what has been done so far and what is being done, so as to give us an idea of the scope of the work. Mr. RICHARDS. The first proclamation came out last Sunday night and was printed in Monday morning's paper, and covered a very limited list of articles, primarily those they wanted to begin to watch immediately. We began on Wednesday to receive applications for licenses from all over the country. We are also receiving them, of course, through our branch offices, of which there are seven-in New York, New Orleans, Boston, Seattle, St. Louis, Chicago, and other places. We granted every day last week and every day this week every single license that was applied for that could be granted: that is to say, there was none refused. There have only been two or three recommended to be refused so far. There is a regular system for these applications when they come in, and of course the underlying principle behind this whole thing is to keep stuff out of enemy country and conserve our resources here. Those are the two primary factors we have in mind, and that is the theory on which the whole plan and scope of this work is based. When the applications come in they go ultimately before an expert in the particular commodity, a man who has made a particular study of that commodity, and we hope to have about 20 or 30 of those men classified according to the tariffs, taking that as a basis.

Mr. GILLETT. From whom do those applications come?

Mr. RICHARDS. From the shippers. We have not as yet made any ruling as to who must make the application. That has got to be done later. At the present minute we simply say that a license must be procured in accordance with the proclamation, and it is immaterial whether the shipper or the receiver or the middleman gets it. He applies for a license to ship a certain stipulated quantity during the next 60 days. That is the length of time for which the license is valid. If it is going to South America or to the allies it is granted immediately; in fact, we are giving blanket licenses to the allies temporarily until we can get some idea from them as to what it is they are buying. We asked them yesterday for a statement of all their purchases, which they promised by the 25th of the month, which will cover their August shipments. The present licenses apply only until the 1st of August. Then to South America we have of course granted licenses very freely.

Mr. GILLETT. Do you give a license to an individual or do you give a license for a certain shipment?

Mr. RICHARDS. For a certain shipment. We have not as yet given any blanket licenses to any one shipper, but we may do that later on, and probably will as we get this work developed so that one man will not have to get individual licenses; but that is something that has to be gone into very carefully, because we would be giving a great deal of power to one man. We have arranged for shipments into Canada without any question. Things are going to Canada freely, and the collectors of customs have been notified, and there has been no stoppage of anything going into Canada. Coal, particularly, was very short in Canada, and I believe is to-day, and there was a good deal of worry on the part of Canadians about getting coal. Therefore steps had to be taken to get that arranged for quickly. Another good result which has immediately come about from this control which was not at all anticipated was the coordination of the shipping of the allies in this country. In other words, the French Government was bringing freight to New York. They could not always get tonnage for a part of that cargo. They were bringing stuff to New York regardless of whether they had a boat. The whole traffic arrangements of the allies have now been coordinated with an office at 120 Broadway, and there is a central committee known as the traffic executive, and that committee only allots the cars to the ally having a boat that is ready for them.

In other words, they will clean up all the French stuff before they bring any more there, and that will work in the same way back to the mills, so that the mills know that they can go ahead and roll a certain kind of steel and that a boat will be ready for it. That is going to mean a tremendous saving in the use of railroad cars for storage purposes and in saving of congestion on the railroads and will be a saving of actual storage space in New York.

The CHAIRMAN. I do not see how the administration of your work affects that.

Mr. RICHARDS. It only affects it indirectly, but it came about almost instantly. They came to us and said that they had shipments all over the country, and they suggested that we give them a blanket license covering these goods.

The CHAIRMAN. Who came to you--the allied representatives? Mr. RICHARDS. Yes; their shipping representative, a man named Conop Guthrie, a traffic expert; and in the course of the conversa

tion

in trying to work out some scheme which would permit the free as to the method that was being employed by the different allies flow of goods to the allies and not cause any stoppage, the suggestion was made that they coordinate their shipping arrangements. a blanket license under the condition that they would adopt that plan. Now, of course, if that does not work out satisfactorily in the

course of two or

three weeks, we can change it because it is only good

ntil the 1st of August.

Secretary REDFIELD. They are issued for 10 days, are they not? Mr. RICHARDS, Yes. I think these are about the only blanket forses we now have. We are now trying to arrange blanket licenses

for small shipments going into Mexico. For instance, if a man wants to drive his bread wagon over into Mexico, we have got to have an arrangement for handling it. Under the present arrangement a man can not take gasoline into Mexico in his automobile. He has to

drain the gasoline out of his car and push it over the border and then fill it up again. Such things as that we are getting straightened out as fast as we can. We are also arranging to have licenses issued at as many of the other ports as possible so there will not be any delay in having to send them to Washington. At the present time, of course, we are using the quarters of the foreign and domestic commerce, but those quarters were engaged for peace work and not for war work, and every one of them is crowded. In one day in the New York office they had 1.700 visitors in a room not as big as this one, and the quarters are very inadequate.

Secretary REDFIELD. You are speaking of the offices outside of Washington?

Mr. RICHARDS. Yes; the various branch offices which are normally used for the peace work of the bureau.

The CHAIRMAN. I thought you had all this work here.

Mr. RICHARDS. Yes: that is nothing compared with what we have here. We have had so far. I suppose, about 10,000 applications in about one week.

Mr. GILLETT. Of course, the great rush will come at first, and after you once get it established on a regular system of course the work will diminish tremendously.

Mr. RICHARDS. Of course, we suspect some of these people are getting licenses for shipments that are unnecessary, and that they are simply getting them with the idea that they will find out about them so they can get them later if they need them. Those are the things we have to learn by experience.

Secretary REDFIELD. I might say in regard to Mr. Gillett's statement that if other goods are put under control that will increase the work by a much larger percentage.

Mr. GILLETT. What do you mean by other goods?

Secretary REDFIELD. A larger variety of goods, as, for example. cotton goods or wool or tin plate. The nearest possible estimate we can make to the total export business of the country is that the total export business averages about 8,000 individual items every day, and. of course, we have at present only a relatively small proportion of them; but it seems quite certain that it will be increased; that is, that the goods put under control will be increased.

Mr. GILLETT. Did you state what you have now?

Secretary REDFIELD. It is in the President's proclamation: Coal, coke, fuel oils, kerosene, and gasoline, including bunkers. food grains, flour and meal therefrom, fodder and feeds, meats and fats, pig iron. steel billets, ship plates and structural shapes, scrap iron and scrap steel, ferromanganese, fertilizer, arms, ammunition, and explosives. The CHAIRMAN. I did not understand your statement, Mr. Richards, that you think some people are applying now for licenses not because they need them but just to see whether they could get them when they do need them?

Mr. RICHARDS. You mean why they should do that?

The CHAIRMAN. No; I do not understand whether a person applies for a license when he is about to make a shipment or applies for a blanket license without any restriction?

Mr. RICHARDS. Oh, no; he applies for a license for a specific quantity of a specific commodity, and he has to tell us where the stuff is going.

The CHAIRMAN. And also for a definite or specified ship? Mr. RICHARDS. No; that is what we have not done as yet. Eventually, we will have to narrow the thing down so we will have some idea as to whether he has a firm order for the goods. Of course, these licenses are worth something to a man to get and they could be traded in possibly. We have got to prevent the possibility of anyone getting a license and selling it to some one else.

The CHAIRMAN. If he was given a license to ship certain goods to a designated place upon a specified ship

Mr. RICHARDS (interposing). Then we could hold him.

The CHAIRMAN. And there would not be any trouble about it?

Mr. RICHARDS. No; none whatever.

The CHAIRMAN. Do you mean that you issue a license that he may export certain commodities without limiting it?

Mr. RICHARDS. No; we give him a license for a specific quantity to be shipped within 60 days.

The CHAIRMAN. Does he specify the place?

Mr. RICHARDS. He has to specify the place; yes. This [indicating] is the form of the license which we expect to use.

Mr. GILLETT. Have you any information as to what proportion of the shipments has gone to neutral nations? I do not know whether the thing has been working long enough for you to have any information along that line or not.

Mr. RICHARDS. No. When you speak of neutral nations, I assume you mean the neutral nations of Europe contiguous to Germany. Mr. GILLETT. Yes.

Mr. RICHARDS. I do not think we have issued any such licenses, with possibly one or two exceptions.

Mr. GILLETT. Have you refused any?

Mr. RICHARDS. No; they are just being considered and gone over and tabulated.

Mr. GILLETT. But there have been applications?

Mr. RICHARDS. Oh, thousands and thousands and thousands of them, for every conceivable thing, in enormous quantities.

Secretary REDFIELD. I think we could cover this table with the pending applications to the neutral nations of Europe.

Mr. RICHARDS. They include fodders and feed and grain of all kinds, foodstuffs, unlimited quantities of fats and lards, etc.

Secretary REDFIELD. This subject touches the most delicate and difficult and important international relations at every hour and at almost every place, and is a means which may be used for good or for ill. It is one that has got to be safeguarded with the utmost discretion and care. And I want to say to the committee that in securing the services of Mr. Richards to take charge of this work. e have secured them through his patriotic kindness and through the kindness of a large New York firm, which allowed him to come to us after many years of experience in handling export business of this character.

Mr. RICHARDS. I would like to call attention to this stub. The bject of that is to prevent fraud. That is filled out by the collector. that if the quantity in the license should be raised the collector fills this out from the bill of lading and then it is returned to us and hecked up with our original records, and in that way we would catch him. It might be too late, but we would know who did it and stop

him from getting other licenses, and we also might be able to catch the boat by wireless.

Mr. GILLETT. I would suppose that the shipowner would not take a shipment which exceeded the amount which was licensed?

Mr. RICHARDS. No; but the shipper gets this license and he might raise it and the steamship company would not know it. Then the collector checks this off with the bill of lading and sends it back

to us.

The CHAIRMAN. What is your present organization?

Secretary REDFIELD. We have at present 29 clerks, 35 stenographers. 8 advisers and trade experts. They are the men who are expert on the particular lines of goods that are being controlled. The total force at present is 72, but we are adding to that every day, and made additional appointments only this morning. At present we are only able to keep even with the work by working until after 11 o'clock every night. They were there last night until that time because I saw them there. Our thought is that we may need for this work as high as 230 persons, but we have managed to save a good deal by getting these men who are willing to work for $60 a month. These are men who are getting in their private business many, many times that amount, and they are coming here and serving voluntarily.

Mr. SHERLEY. To what extent?

Mr. RICHARDS. They are all volunteers except the clerks and stenographers. Everyone else there is a volunteer.

Mr. SHERLEY. From what source are they taken?

Mr. RICHARDS. They are men who have been drafted in or men that we know and have written for or have appealed to to come down to help us in this work. They have given up their businesses and resigned from their old connections for the period of the war. They have simply given up everything to come down here and work, the mest of them receiving $60 per month.

There is just one other item I want to call attention to in reference to this work. The British Government, as you know, controls a great many raw products which we have to have, such as a part of our rubber, practically all of the jute, a good portion of the tin, etc. The British Government controls a great many of those products through capital control or otherwise, as in the case of pyrites, from which we make sulphuric acid, and in order to prevent those products from getting into the hands of her enemies it has been her practice to bring them to America and sell them to merchants here through her consuls general in the various ports, who have executed agreements with the buyers of the raw products that they would not reexport the finished products. In some cases they have exclusive control over their export to any other countries, or they limit it subject to the supervision of the consuls. Now they are willing to do away with all of that control and to turn the whole thing over to us, permitting us to bring in those controlled things provided we will supervise the exports, doing just what she through her consuls has been doing in the past.

The CHAIRMAN. Will they continue their practice of insisting upon certificates of assurance?

Mr. RICHARDS. They are perfectly willing to discontinue it when we are ready to act.

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