Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-06-01
WHEAT CONTROL
COMES TO END
Federal Director of Lead
ing Cereal Ceases to
Function.
GUARANTEE OF
PRICE PASSES
Limitation of Law Ends Federal Con-
troll of Wheat and Wheat Products
Food Administration Control
Ends by Virtue Of PRECIPITATION by
President-Grain Corporation to
Wind Up Its Affairs.

Wind Up Its Affairs.
BY Associated Press.
Washington June 1.-Federal con-
troll Of wheat and wheat products
ended today, the wheat director
ceasing to function under the limita-
ton Of the law creating his office
and the food administration control
ending by proclamation of President
Wilson.
This means the passing of the gov
ernment guarantee Of $3.50 bushel
for wheat established during the war
as a means Of stimulating produc-
ton. Some existing contracts re-
main to be carried out by the United
States Grain Corporation. and ms
soon as these contracts have been
executed the corporation will wind
up it's affairs and turn over It's
finances to the treasury department.
Officials of the grain corporation
here said the grain corporation had
operated at q, slight profit, but the
exact figures would not be known
until the corporation wound up its
affairs.
The United States grain corpora
ton, headed by julius III. Barnes and
with fourteen vice presidents, In
charge Of as many zones covering the
country, expects 1t will take from
thirty to sixty days to wind up its
affairs and close its offices. Handling
the wheat crop, without a speculative
market did not seem possible up to
the time OF the war, but 1t has been
demonstrated that It can be done
with tho government back OF ilt.
Altho Mr. Rarnea has reported q
profit Of $25,000.0o0 In the operation
OF the corporation for the first two
years, nothing is known Of the profits
for the year just closing. The vice
presidents donated their services for
two years and have received $4,000
for the last year. Wheat Director
Barnes, however. has worked gratu-'
itously, while a number of his vice
presidents have drawn their salaries
and donated them to charities, all
being men OF independent means.
Handle O,00o, 900 Bushels.
In its three years of wheat opera
tions the grain corporation has
handled more than 00,o00,OOO bush
els, of which Chicago had more than
one-sixth, or little more than 12o,-
100000 bushels. That so much wheat
was handled with disputes on only
twenty-five cars shows the high
standard of the grain inspection de-
partment of Chicago.
In addition to the large volume of
wheat handled in the Chicago office,
$4,000 barrels of flour were bought
and sold in an effort to educate the
people to the increased use Of winter
wheat flours at a greatly decreased
price as compared with spring wheat,
and to lower the cost of food. The
latter project, however, did not sue
ceed in its entirety, as prices of
bread have advanced of late The
grain corporation, as a whole, bought
more than 100000 barrels Of flour.
which have been sold to starving
Europe on credit. More than 3,000,-
900 barrels already have been ex-
ported.
Keep to Basic Price.
All the wheat that the grain cor
poration has held at different times
was bought on basis of 1925 for
No. northern spring, No. 1 red, and
No. hard winter at Chicago, with
a freight differential at other mar
kets. At no time did the govern
ment pay ovefits basic price. There
were no restrictions to prevent mill
ers and exporters from bidding more
than the government basic, and they
bid prices UP IS cents to $1.so above
the government level, spring wheat
leading in the premium.
In addition to the wheat handled
here at Chicago, there were also H..
100000 pounds of beans and 14,500,-
600 pounds of substitutes. Other Of
fices also handled large quantity
of substitutes.
The grain corporation has disposed
Of all its wheat and flour. At Chi
cago there are only about $500. 900
bushels that have been aold and not
shipped. owing to inadequate trans
portation facilities. There are about
100000 bushels Of unshipped wheat
at Kansas City and fair quantities
at other markets
Trading Still Delayed.
All wheat licenses have been can
celed and the wheat market has been
returned to private interest. It Ia
now a merchandising proposition,
with no hedging facilities. and none
can be had until there is q resump-
ton of trading in wheat futures,
which at present does not seem pos
sible within a month or two. IL not
longer period.
Various suggestions are made for 4
reopening of the wheat market with
speculative trading. which has been
eliminated for three years. One plan
is for trading in a sixty day future,
which would give operators more
latitude and pIossibly prevent conges-
tion thru heavy operations by export.
ers. With poorer transportation. the
wheat market might easily be con-
gested by moderate operations on the
part Of foreign countries. There are
many important factors to be work
ed out by the exchanges before trad