The Washington herald., 1920-02-19
10000 Grain Dealers Voice
Protest against Gronna Bill

contracts with terminal and local
elevators and dealers of wheat. with
millers and flour jobbers and bakers
throughout the United States covering
price quotations where applicable and
the movement and distribution OF
wheat and wheat products. To these
contracts the Grain Corporation is a
party.
Under the contracts, the govern
mental power to be exercised must be
exercised by the Grain. Corporation.
The contracts cannot be properly per-
formed, and the purpose for which
they were made carried out ursless
the Grain Corporation Is continued as
an effective body until the end of the
time of the final performance of the
contracts, which will not be, as to
wheat, until thirty days after June l,
and, as to flour. until forty-five days
after June l. All contracts above men,
toned are subject to cancellation only
upon forty-five days notice.
Prevented Protneering.
"It has purchased and sold enormous
quantities of wheat and flour. and
through such purchase and sale has
controlled the distribution and final
destination of such products. always
preserving and protecting In such pur-
chases and sales the guaranteed mini
mum price, but preventing profiteer-
ing, unfair prices, hardship to and
deprivation of consumers, both in this
country and among exhausted peoples
in Europe. At the present time the
Grain Corporation has on hand and
under contract large quantities of
flour destined, in part, to be exported
and. In part, to be diverted back to
consumers within this country. and
extensive commitments for the export
of wheat.
Depends on Cooperation.
! "As a necessary incident of this
| activity of the Grain Corporation,
the usual methods and facilities
through private purchase and sale
| of wheat and wheat products in ex-
| changes would otherwise have been
to large degree suspended or
modified. The entire wheat and
wheat product industry is now
| functioning about and is dependent
| upon the activities of and its con-
tracts with the Grain Corporation.
| Should the activity of the Grain
| Corporation terminate suddenly, or
| at any time before the end of the
| spring movement of the present
wheat crop. about June ]. and its
obligation to provide for free and
| open market for wheat and wheat
products be unfulfilled, a partial and
very disastrous paralysis of the sale
i and distribution of wheat and wheat
products would necessarily result, so
| interfering with 4 continuous flow
of wheat and wheat -four in the
| channels of trade.
| while we believe and state that
the Grain Corporation is and has
\ been a highly efficient organiza-
tion and has performed great serv-
ice alike to producers and con-
| sumers of wheat in stalilizing
prices, and controlling and ef-
fectuating transportation and dis
| tribution of wheat and wheat
products. for the purpose of the
| present argument and to sustain the
view presented herein, 1t is not nee
essary that the work of the Grain
Corporation be discussed, or even
that the plan of price guarantee,
| governmental control of distribu-
tion and governmental purchase and
sale of grain be approved.
In Middle Of Work.
| THE significant and controlling
factors now are: That the Grain
Corporation is in existence and is
in the middle of an enormous un-
\ dertaking with an organization far
| reaching and adequate to fully meet
the situation; that if the hands of
| the Grain Corporation are stricken
down. no other governmental agen-
cy can possibly be organized to take
its place or fill the resulting gap
within the few months of the re-
! naming term of the act of March
4, 1919.
Indeed, by section of the 1919
act. in recognition of this sitIs-
tion. it is provided:
The President shall take sea-
sonable steps to provide for and
to permit the establishment OF a
| free and open market for the pur-
chase. sale and handling of wheat
and wheat products upon the ex-
piration Of this act
No Provision Made.
NO such provision has been made,
nor can any such provision be inn
mediately made. For even with full
| corporation of various government
al agencies, several months will be
required to accumulate and dissem-
mate such authentic information
in regard to world conditions as
might reasonably form the basis
for open trading in wheat. Any
attempt to establish an open- mar
ket without such information would
inevitably lead to the widest range
of prices and to general dissatis-
faction.
In the absence of a guaranteed
government minimum and without
the normal operation of free and
open markets. financial istitutions
would unquestionably show great
reluctance to supply funds for the
handling of wheat and wheat prod |
ucts.
Demand Completion.
we submit that we are unalter- |
ably committed to the completion |
of the program provided for in the !
act of March 4, 1919; that the re-
peal of that act and the suspension |
of the activities of the Grain Cor |
poration would bring uncertainty |
and disaster to all the wheat and |
wheat product industries; that the |
best interests of grain producers. |
consumers and the government |
alike would be sacrificed. and that |
no possible compensating advan-
tages could accrue therefrom."
The statement of McHugh was
indorsed by the following trade
representatives L. F. Richards, Bal
timore Chamber of Commerce; L.
F. Gates. Chicago Board of Trade;
n,,I,