Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1919-09-07
WHEAT PRICES WILL
BE FOUGHT OUT AT
FARM CONFERENCE
julius Barnes, Head of Grain
Corporation, to Make
Talk.

Kansas Clty, Mos, oepI. u nv
probability that delegates to the
international farm congress, which
meets here September 1921, will take
definite action in the controversy
over wheat prices fixed by the United
States grain corporation, was ndl-
Gated in statement made by w. /.
Drummond general manager OF the
congress, which accompanied the an
nouncement that Julius H. Barnes,
president of the grain corporation,
had accepted an invitation to speak
Mere.
Following round table discussion
of wheat prices, in which farmers
and others attending the congress
will be given an opportunity to ques-
ton Mr.. Barnes at length, "the con-
gress may take action in the form
of passing resolutions either in ap-
proval, in disapproval, or suggesting
changes" in the corporations price
fixing policy, according to Mr.. Drum
mond.
The controversy developed in the
Mississippi valley at a critical time
when it seemed the much-heralded
bumper yield of wheat this year
would grade lower than No. 2. OPP
position to the grain corporations
policy of price fixing, which, although
more than doubling the pre-war price
on No. / wheat, had also made diff
ference of more than double the pre-
war margin between each grade Of
wheat, came particularly from Off
cial quarters in Missouri and Kansas
and from some of the leading farm
papers in the two states. DIR. II. D..
Waters, formerly dean of the Kansas
state agricultural school, led the OPP
position to what he termed an over
turning of customs set by years OF
marketing experience between pro-
Queer and buyer.
The contention Of DIR. Waters and
of other opponents was along this
line: Under the usual system of
marketing practiced before the war,
it had become customary to make
difference of about one cent a pound
between each grade of wheat When
a standard price on No. wheat, now
more than double the average price
of pre-war days, was set by Presi-
dent Wilson, the fixing of relative
prices on lower grades was left to the
discretion of the United States Grain
corporation, which fixed prices for
those grades in the same ratio of
increase which determined the in
crease in price of No. l wheat. This
system of establishing standard
prices, however, made difference
of about three cents a pound between
each grade of grain, whereas the OPP
ponents Of that policy asserted that,
i'm determining the prices for lower
grades of wheat, the grain corpora
ton should have followed custom and
market down scale Of prices by one
cent differences in each grade.
The grain corporation, it is said.
contended that the ratio of increase
should be maintained for each grade.
1t was contended for illustration that
if pre-war prices on No. wheat were
$1.0O and on No. wheat 80 cents
and the price of No. / should have
been doubled to $500, then the No. 2
price also should be doubled, making
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. 2 wheat
at $199.
The reason for this opposition, ac-
cording to DIR. Waters, was appar
ent. In the critical days just before
the harvest, it seemed to farmers and
farm leaders that weather conditions
would lower the grade of the big bulk
of grain harvested in Kansas and
Missouri to No. 3 and No. grades,
when No. grading had been anti
cipated. Under the grain corpora
TONS policy, No. a wheat would have
sold at nearly six cents pound
under the No. 2 price, loss of prac-
tically four cents pound in the diff
ference in prices fixed by the corpora
ton and prices declared to be fair
and in keeping with market custom