The Washington herald., 1920-02-18
Milers Predict Financial
Panic if Grain Control
Is Lost BY Gouernment

agency of the government, could not
have pursued any other method that
would have been so beneficial to
the public as the plan adopted and
put into effect for the handling of
the 1919 wheat crop. To summarize
our reasons for protesting against
the passage of this bill we ask you
to consider:
1. The President, through author
ity granted by Congress, guaran-
teed a wheat price to the farmer to
June j. 1920. The legislation pro-
vided that certain instrumen entalities
could be set up. SO that the wheat
buying, wheat handling, the storage
OF wheat, the manufacture of wheat
INTO wheat products. and the distri-
button of the wheat products
through the dealers and bakers
could be carried OUT in a manner
that would be practical, and would
safeguard the public interests.
Trades Dependent.
2. The trades from the farmer to
the baker and grocer, have. for
eight months. placed absolute de-
pendence upon the agreements as
entered into with the government,
through its agency, the United
States Grain Corporation, and II
these agreements should be modi-
fed or disturbed at this late date,
most disastrous effect would al
most inevitably follow.
3. II the machinery. as created
by the Wheat Director, is inter-
ferred with, 1t would, of necessity
compel Congress to provide other
instrumentalities to take its place,
so that the provisions Of the con-
tracts made under the Congress.
stonal legislation could be fulfilled.
We believe all who are familiar
with the magnitude and intricacies
OF the present machinery agree that
II would be impossible for any other
agency to be set up In time to pre-
vent a chaotic condition in the
trades, regardless Of any intent or
desire to do so.
Bankers Worried.
4. Banking interests are already
uneasy because OF the introduction
or this bill and the favorable re-
port on same from this committee.
We therefore take the liberty of
urging that this committee now re-
~~oANSA Ahio ana SllCn
action as may be necessary TO
again establish confidence in wheat
values. by giving public notice that
the present wheat price guarantee,
and the agency now established TO
carry out that guarantee, will be
continued to May 81, 1920.
The statement of Moore is endorsed
by Thomas l.. Brooke of the Virginia
Millers' As citation; l. Z. Moses, pres
ldent OF the Southwestern Millers
League. George Pease. OF the Mime
apolis Milltrs; ]. B. McLemey, of the
southeastern Millers' Association: X.
s. Humphrey. Of the Oklahoma MilIers'
association: w. B. Campbell, OF the
Michigan Millers' Association; w. v.
Hamilton OF the New York State Mil
lers' Asss citation. and L. H. Hall, of
the West Michigan Millers' Club.
Southern Opposition.
L. II. Haney. of jacksonville, Fla.
representing the Southern Wholesale
Grocers' Association. said that the
wholesale and retail grocers were abb
solutely opposed to the Gronna bill.
In this critical time" he said, the
passage of such a bill would be espe-
cially dangerous" D
rs it not that you wholesalers and
jobbers fear the loss of some profits ?"
asked Senator Gronna
Yes" replied Mr.. Haney, "and also
as members of the business community
we do not want to become a radiating
point for financial disaster"
Another witness, Harry Upton, a
New York baker, urged the rejection
of the Gronna bill. Bakers, he said,
were obliged to make their contracts
from sixty to ninety days ahead in
order to be assured OF an adequate
Low Price Impossible.
Speaking of the present price of
bread. he asserted that even II tho
bakers could get flour free they
could no longer sell the old scent
loaf on account of the increase of
the cost of labor and materials other
than flour necessary for bread
making. Under controlled prices. he
said, the margin of profits for both
large and small bakers had been
heavily cut. and as feared the ef-
feet of the Gronna bill would be to
increase the public resentment
against bakers, who, as the agents
in the chain of what production and
distribution nearest the consumer,
were blamed for the present price of
bread.
Last night Senator Gronna told a
Representative of The Herald that
he was in nowise moved by the
numerous objections to his bill to
abolish the United States Grain Cor
poration.
Il believe that the law is on my
side and that the facts are on my
SIDE" he said. 1t is the milling men
rather than the farmers who wish
to see the Grain Corporation con-
tinued. / intend to fight for my bill
to a finish