Food Controller Given Powers to Requisition Stocks, 30th June 1917

“REQUISITIONING STOCKS.

“SWEEPING POWERS OF FOOD CONTROLLER.

“DOOM OF THE SPECULATOR.

“By an Order in Council under the Defence of the Realm Act, published in last night’s [29th June 1917] London Gazette, the same powers are conferred on the Food Controller as the Admiralty, Army Council, and Ministry of Munitions already possess for requisitioning and controlling prices. Lord Rhondda is now empowered to requisition the whole part of the output of any factory, and to pay a price based on the cost of production, with the addition of a reasonable pre-war rate of profit with regard to the price ruling the open market. For this purpose he is authorised to examine books, and to ascertain such particulars as to output, cost, and rate of profit, as may be required for fixing a reasonable price.

“Similar powers have been taken to deal with goods requisitioned from growers or other producers. Where goods are requisitioned from bona fida merchant or dealer the price is determined by the price paid by him for the goods, provided that such price is not unreasonable, and the rate of profit which he would normally earn under pre-war conditions, provided that such profit was not excessive. Where, however, any middleman or speculator has acquired foodstuffs or other commodities otherwise than in the usual course of his business no profit at all or a profit less than pre-war rates, may be allowed.

“These powers have for some time been exercised by the Admiralty, Army Council, and Ministry of Munitions and have enabled those Departments to purchase their supplies at reasonable prices without regard to market fluctuations.

“TEXT OF REGULATIONS.

“Among the powers set forth in the regulations, which under the Order in Council, are now to be exercised by the Food Controller (so far as they are applicable to food supplies) are the following:

“It shall be lawful for the Admiralty, Army Council or the Minister of Munitions to take possession of any war material, food, forage, and stores of any description, and of any articles required for or in connection with the production thereof.

“If, after the Admiralty or Army Council or the Minister of Munitions have issued a notice that they have taken or intend to take possession of any war material, food, forage, stores, or article in pursuance of this regulation, any person having control of such material, food, forage, stores, article (without the consent of the Admiralty or Army Council or the Minister of Munitions) sells, removes, or secretes it, deals with it in any way contrary to any conditions imposed in any licence, permit, or order that may have been granted in respect thereof, shall be guilty of an offence against these regulations.

“The Admiralty or Army Council or the Minister of Munitions may by order require the occupier of any factory or workshop in which arms, ammunition, food forage, clothing, equipment, or stores of any description, or any articles required for the production thereof, are or may be manufactured, or in which any operation or process required in the production, alteration, renovation, or repair thereof, is or may be carried on, to place at their disposal the whole or any part of the output of the factory or workshop, as may be specified in the order, and to deliver to them, or to any person persons named by them, the output or such part thereof as aforesaid in such quantities and at such times as specified in the order; and the price to be paid for the output so requisitioned shall, in default of agreement, be determined by the arbitration of a judge of the High Court.

“In determining such price regard need not be had to the market price, but shall be had to the cost of production of the output requisitioned and the rate of profit usually earned in respect of the output of such factory or workshop before the war, and to whether such rate of profit was unreasonable or excessive, and to any other circumstances of the case.

“If the occupier of the factory or workshop fails to comply with the order, or, without the leave of the Admiralty or Army Council or Minister of Munitions, delivers to any other person any part of the output of the factory workshop to which the order relates, he shall be guilty of an offence against these regulations.

“For the purpose of ascertaining the amount of the output of any factory or workshop, or any plant therein, and the cost of production of such output, and the rate of profit usually earned in respect of the output of such factory or workshop before the war, the Admiralty or Army Council or the Minister of Munitions may require the occupier of any such factory or workshop, or any officer or servant of the occupier, or where the occupier is a company any director of the company, to furnish such particulars as to such output, cost, and rate of profit they may direct, and may require any such particulars to be verified in such manner as they may direct, and if any such person fails to comply with any such requirement he shall be guilty of an offence against these regulations.”

'Nottingham Evening Post', 30th June 1917.