The Fargo forum and daily republican., 1918-12-16
Loss OF BILLION
TO UNITED STATES
Seen BY CROWELL
'ON WHEAT PRICE

Washington, Dec. 14.-There is Va
possibility OF the government sus-
tanning a loss of $1,000, 100000 on the
1919 wheat crop, in the opinion of
Frank G. Crowell, vice president or
the United States food administra-
ton grain corporation.
Next years crop is estimated AZ
1900, 100000 bushels. Farmers VIII
receive the guaranteed price of $2.26
a bushel even though the world mar
ket price falls far below that figure.
Mr.. Croswell fears surplus OF
wheat in 1919 which would mean a
big loss to the United States.
In letter to Representative
George M. Young of North Dakota,
Mr.. Crowell proposes that a new
grain corporation be organized to
handle the 1919 crop. He would have
the present corporation wind up its
affairs next August, after all OF the
1918 crop has been marketed.
Further Litigation Seen.
To carry out the guarantee con-
gress must enact additional legisla-
tion, Mr.. CroWell informed Mr..
Young.
Mr.. Crowel1's letter follows:
"On September 2, 1918, the Presi-
dent, as provided by act of congress,
fixed the guaranteed price of wheat
to be harvested in the United States
| sale by the first OF June, 1920, pro-
vided the producer complied with all
the regulations which might be
thereafter promulged in regard to
the said guarantee by the President.
"The President by executive order,
provided on August IA, 1917, for the
7 creation Of the food administration
grain corporation, in order to enable
| the United States food administra-
ton, acting under the direction Of the
President, to purchase, provide stor-
age facilities for and sell at reason
able prices for cash, certain COM
modities, o-wit-wheat, -four, meal,
beans and potatoes; and designated
Herbert Hoover of Washington, Ju-
| Illus III. Barnes Of Duluth, Gates w.
| McGarragh of New York city, and
Frank G. Crowell of Kansas City,
No. as directors of corporation to
| be formed and to have a capital
stock of $50,000,000 all the stock to
be owned by the United States, and
/ to be paid for out of the appropria-
/ ton Of $3.50, 0,000,090 made by con-
gress for the food, fuel and other
lagencies created by the congress
sional act
1918 Price Protected.
"The food administration grain
corporation was not ordered, or re-
quested, to protect the 1918 crop
guarantee by congress, which was a
congressional matter and not food
administration matter; but inasmuch
as congress had not passed any
lspecific appropriation to protect its
Town guarantee, the President issued
an executive order on June 81, 1918,
increasing the capital stock OF the
food administration grain corpora
tion to $150,000,000. and ordered 1t to
protect the 1913 price guarantee, in
taddition to performing its other
functions.
"This the food administration
grain corporation is now doing, and
will continue to do until 1T has full
filled it's obligations, as provided by
| the congressional act, even although
| it may necessitate its continuing in
business until August or September
of 1919; for it must continue to exist
| for this purpose, that is, protecting
the 1918 guarantee, and protecting
! its outside obligations, although the
United States food administration
ceases, under the food control act,
on the issuance of a peace proclama-
| tion by the President.
when the food administration
grain corporation was formed it was
Required that the president, vice
president, the thirteen second vice