The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1919-09-09
FARM MEET TO
DEBATE WHEAT
PRICE CHANGE
Unfair Grading Claimed by
Manager of International
Congress, in Kansas City.

KANSAS CITY, Sept 9.-The prob
ability that delegates to the Internal
ional Farm congress, which meets
here September 1927, will take def
mite action in the controversy over
wheat prices fixed by the United
States Grain corporation, was indicat.
ed in a statement made by w. l. Drum.
mond, general manager OF the con
gress, which accompanied the an
nouncement that julius H. Barnes
president Of the grain corporation, had
accepted an invitation to speak here
Following a round table discussion
of wheat prices, in which farmers and
others attending the congress will be
given an opportunity to question Mr.
Barnes at length, 1.-The congress may
take action in the form of passing res
olutions either in approval, in disap
proval, or suggesting changes" in
the corporations price-fixing policy
according to Mr.. Drummond.
Opposition Developed.
The controversy developed in the
Mississippi valley at a critical time
when it seemed the much-heraldet
bumper yield of wheat this year would
not grade better than No. 2. Oppose
ton to the grain corporations policy
of price-fixing, which although more
than double the pre-war price on No
1 wheat, has also made a difference
Of more than double the pre-war mar
! gin between each grade of wheat
came particularly from official quar-
tiers in Missouri and Kansas and from
some of the leading farm papers in the
| two states. Dr. H. ]. Walters, former
ly dean of the Kansas State Agricul
| tural schools, led the opposition tt
| what he termed an overturning o.
customs set by years of marketing ex
perience between producer and buyer
The contention of DR.. Walters ant
other opponents was along this line
Under the usual system of marketing
! practiced before the war, it had be
come customary to make a difference
of about one cent a bushel between
each grade Of wheat. When a stan
| dard price on No. l wheat, now more
! than double the average price Of pre-
war days, was set by President viii
| son, the fixing of relative prices wa
/ left to the discretion of the United
! States Grain corporation, which fiXe(
| prices for those grades in the same
ratio Of increase which determined thu
increase in price of No. / wheat.
This system of establishing stan
dard prices, however, made a differ
| ence Of about three cents a bushe
! between each grade of grain, whereas
the opponents of that policy asserted
that, in determining the prices of tn,
| lower grades of wheat, the grain cor
poration should have followed custom
! and marked the down scale of price,
| by one-cent differences in each grade
| The grain corporation, it is said
contend that the ratio Of increase
| should be maintained for each grade
| 1t was contended, for illustration, tina
! if pre-war prices on No. l wheat Were
$1.00 and on No. wheat, SO cents
and the price of No. l should havt
! been doubled to $500, then the No.
price also should be doubled, maxim,
it $1.98. Leaders of the opposition
are contending that the one-cent diff
! ference should be maintained, which
on that basis, would put No. l whea
| at S199.
Loss Of 4 Cents.
The reason for this opposition, &C
| cording to DR. Waters, was apparent
In the critical days just before tn
| harvest, it seemed to farmers AM
farm leaders that weather condition
would lower the grade of the bulk O
the grain harvested in Kansas an,
Missouri to No. and 4 grades
when a No. 2 grading had been ar
! ticipated.
Under the grain corporations po
icy, No. wheat would have sold a
nearly six cents a bushel under tn
price of No. 2, a loss of PRACTICAL
four cents a bushel in the difference
in prices fixed by the corporation an
prices declared to be fair and in keeI
ing with market custom by those VIII
opposed the government price star
dard 1t would according to DR.. Wa
ers, have meant a loss of millions Q
dollars to farmers in the middle wes1
These fears of wheat being of 10,
grade fortunately were unfounded be
cause of improved weather conditions
and something of a lull in the cor
troversy followed but, according t
Dr. Waters, the principle of the col
poration's price fixing policy is wrong
and when the opportunity is given t
question Mr.. Barnes, he declares tn
leaders of the opposition will put Mi!
souri, and Kansas farmers clearly o
record as to their position in the ma
ter of fixing prices on lower grade
Of what