New-York tribune., 1920-03-06
Barnes Plans
To Sell Europe
Flour on Credit
Tells House Committee 5
Million Bbls. Will Be So
Disposed OF Unless $780,
100000 Loan Is Voted
Spokane Charges Denied
Work of Houser ON Pacific
Coast Commended by
u. S. Grain Corp. Head

WASHINGTON, March 5.--Fvc mill
ion barrels of Federal Grain Corpora
tion soft wheat flour will be sold on
credit in Europe soon unless Congress
authorizes the $50,000,00O loans to
finance the sales, julius Barnes, head
of the corporation, told the House
Rules Committee. He said he now had
authority to make the sales on credit,
but hoped the loans would be author
lied.
The flour, now held at American
ports and for whicn the corporation
asks SLOTS barrel, is "the cheapest
in the world" Mr. Barnes told the COM
mittee. He added that "every effort
had been exhausted to sell it for cash."
but that American housewives would
pay higher prices for the hard wheat
flour.
"Why are prices of -four going up?"
asked Representative Fess, Republican,
of Ohio
"The last year crop yield was a Pc
culiar one," answered Mr.. Barnes.
"There was a small yield Of hard wheat
and a big yield Of soft wheat. Flour
made of soft wheat could be obtained
for domestic use at all times at the
exact reflection of the government
guaranteed price Of wheat.
Millers Bid Up Prices
"The pressure for different kind of
flour by the housewives led the millers
to bid up the prices, and in North
Dakota in five months the hard wheat
price was increased 60 cents bushel
above tho guarantee"
In connection with the flour stocks
of the Grain Corporation, Mr.. Barnes
said that the advertising campaign to
promote domestic sale of the soft wheat
product had "failed" and that the
stocks arc blocking" many American
deteriorate rapidly, he added.
The fifty million dollar appropria-
tion for food relief, he continued,
"would not put us in the market for
a single barrel Of flour" and the en-
tire fund would be used for sale Of
the product. Legislation in such a
form would encourage other countries
to contribute to the relief fund, he said.
Failing, the appropriating measure,
Mr.. Barnes asked Congressional in
dorsement of sales on credit, adding
that he might have to act without such
sanction.
Poland and Austria each need 100000
tons of flour, Mr.. Barnes said he had
been advised. Other countries, includ-
ing Armenia, Hungary and Czecho-Slo
vakia, need more than $4,000 tons, he
said.
Charges of the Spokane (Wash. J
grand jury, alleging wheat price manip-
ulation by grain corporation agents
were mentioned. Mr.. Barnes said he
had asked the Department of Justice to
make thorough inquiry. The grand
jury report was a statement on eco
nomic conditions in the Pacific North
west, Mr.. Barnes said, and recommend
do not exist" He added that the cor
poration had not bought wheat or flour
at more than the guarantee price.
Max H. Houser, vice-president of the
corporation and in charge of its work
in the Pacific Northwest, named in the
Spokane report as interested financially
in several grain companies, was de-
clared by Mr.. Barnes to be "an honest
man." Houser, he said, had dissociated
himself voluntarily from the com
panies in which he was interested as
far as possible, but "could not with
draw his capital investment from the
companies" Being thus unable to with
draw completely from these companies
Mr.. Barnes said, Houser kept out OF
their conduct and gave all earnings
above per cent on his investment te
charity. This was fine exhibition
Mr. Rarnes declared