Omaha daily bee., 1918-11-01
CORN EMBARGO
HUR1SFARMERS.
SAYS M'KELv|E
Republican Candidate Believes
Regulation of Prices Of 49,
riCuIturaI Products Has
Been Impractical.

QOuS losses ana Omana, as gram
ma rket, has been placed at a dis
advantage. as a result of new reg
ulatIons, according to information
obtained by S. R. McKelvr, repub-
licar. candidate for governor, who
explains how the farmer has been
rn5ustly hampered by recent rul-
ings.~
His explanation of the situation
follows:
THE fixing of a price on wheat
and other northern products With
10 corresponding action with ref
erence to southern agricultural pro-
ducts was bad enough, but
when price fixing and federal con-
troll cause the farmer to sustain
heavy losses he feels that h. is be-
ing greatly hampered in helping to
win the war. --
Mole serious than any of the
earlier price fixing methods has
been the action of the federal food
administration which has resulted
IN a DROP OF 50 cents per bushel in
the price OF corn.
Results in Embargo. d
"a practical embargo on grain
shipments has been effected through
= a system of permits for shipping
which was authorized by the feder-
al food administration. The federal
administration of railroads disclaims
any Responsibility for instituting
this. embargo and says that it is
acting wholly under the instructions
OF the federal food administration
IN helping to carry it into effect.
1t is generally recognized that
the embargo was not necessitated
by foreign shipping conditions. for
the export OF coarse grain at this
time is minor matter. The de
mand for such grain is largely for
home consumption.
The permit system with the new
regulations incident to it, has
created most disturbed condition
in the market, for, and the handling
OF the coarse grain.
1T has produced an unprecedent-
ed decline in the price for corn, open
competition among primary markets
has been restricted and limited. the
customary channels of distribution
have been rendered inefficient and
the law of supply and demand as
factor in regulating prices has been
rendered weak and impotent
Corn Begins Decline.
at is apparent from all angles of
investigation that the purpose of this
embargo was Ito reduce the price
of corn, and this was quite clearly
illustrated by the fact that corn
promptly began to decline after the
embargo was instituted until, Octo-
Der II, the price of corn on the Chi
cago market had declined to the low
level OF $1,09 per bushel.
AT the country stations the ef-
feet of~the permit system has been
especially vexing. When the ship
per puts in his application for a per-
init to ship, he is without any de-
gree of certainty as to the number
of days it will take to get it. and in
the, meantime he cannot order cars
with safety for he has no way of
knowing how long he will have to
pay denrurrage on the cars before
'he will obtain the necessary permit.
No Relief Afforded.
The Jesuit of thisS permit system
has been to accumulate grain at GER
tain points, while the needs at other
points would have justified prompt
movement of grain; and farmers,
farmers shipping associations, and
the many necessary agencies for dis
tribution have been obliged to sustain
heavy losses that would not have
obtained under normal c$ndition.
Had the federal food administra-
ton not been DESTROYS of bringing
about a very great depreciation in
prices it could Nhave> avoided it, even
with the embargo, had it fixed a
price at the time the. embargo went
into effect. i
These matters have been
brought to the attention Of the fed
eral food administration by the
farmers and others of influence but
no relief has been given up to this
time. And in spite of the fact that
the corn crop for the nation this
year is 500,000,000 bushels less than
it was last year, the price OF cornJ
now is practically 50 cents per bush
ell less than the average price dur
ing the past II months.
Heavy Losses to Bear.
This condition still further IL
illustrates the truthfulness of the
statement which | have been max
ing that in the administration OF
the great problems that confront
the country at this time there have
not been enough men in places OF
Importance and responsibility who
are acquainted with the economic
problems of the farmers.
while the federal administration
of railroads may have had nothing
to do with instituting these regula-
tons. it has been the agency through
which the execution has been made
possible. The people accepted with
unusual equanimity the increased
cost of shipping, but they will
promptly criticise the use of the
railroads to effect control over
the prices for commodities.
Nebraska is especially interested
in the subject, for it not only means
that farmers have sustained ire
mendous losses as a result of the
new regulations, but Omaha as a
primary grain market has been
placed at great disadvantage in
: competition with primary markets