The Washington herald., 1920-02-18
PREDICT PANIC
IF CONTROL OF
RAIN is LOST
!, .rs Foresee Trouble II
Government Supervision
Is Not Continued.
MIST FULFILL PLEDGE.
w stern Exchanges Pro
test as Gronna Maintains
He Will Force Bill.

- stimony that the passage of the
r1reI ma bill providing for the i'm
Rsa ate abolition of the United
STATS Grain Corporation might pre-
q .ate a panic in the wheat mar
;k-t hat would be felt throughout
she entire industrial structure. was
is D before the Senate Agriculture
csa nittee yesterday. The wit
~ sss without exception urged the
oUsr rnittee to reconsider its favor
soia- report on the Gronna bill.
Dealers to Enter Protest.
The most formidable array Of tes-
tinnony against the bill that has yet
teea presented will be laid before
hhe committee today in a joint
brief signed by heads OF eleven OF
the principal grain exchanges. Fol-
=. Elg the brief four grain men.
presenting all wheat producing
sect ons OF the country will speak
aEsiast the Gronna bill. They are:
h. Wells. of Minneapolis. repre-
sssnt ng the wheat producers of the
-s."rrr invest: Fred c. Vincent. of Kan
yI- cIty, representing the South
-ls L. F. Gates, president of the
Cr5. go board of trade, represent
f=r ne Central States. and William
II award. president of the Sal
rinore Grain Exchange, represent
ing wheat producers of the seaboard.
They will urge that a guarantee has
been made to the wheat producers
that must be made good or the
financial structure Of the country
win be endangered.
The principal witness at the hearing
yesterday was Thomas T.. Moore. of
Richmond. Va. chairman of the
Legislative Committee OF the Millers'
National Federation. who asserted
that the milIers of the country we're
a unit in emsnding that the Grain
Corporation continue to function
during, the net three and half
months. He said:
MIlIers Want Control
We. the millers of the country.
desire to protest against the discon-
tinuance OF the established agency
created to carry out the provisions
Of the Congressional acts OF August
10. 1917, and March 4, 1919. Your COM
mittee is in charge of legislation af-
fecting the agricultural interests of
the nation. and must give careful con-
may affect the public interest.
Government statistics show that
the grain and milling industries have
handled their turnover on a per-
centage basis far below that of other
industries. The milling industry has
kept pace with the production of
wheat in the United States. which at
the present time produces . per cent
Of the worlds crop. against having
only s or per cent of the worlds
population. \ market must be Gre
sted for surplus wheat production.
since without such a market the far
mer would be compelled to reduce his
crop Of wheat to the point where
production would only equal domestic
consumption.
FuIhI Pledge.
During the war the President,
Of h.
guaranteed the farmers of the
United States a minimum price for
the wheat crops of 1918 and 1919.
The wheat guarantee bill, approx
ed March {. 1919. provided the
means of fulfilment of this govern
ment pledge as made by the Presi-
dent The President appointed
julius II. Barnes as wheat director
TO carry out the provisions OF this
act. and those who are familiar
with the purchasing and marketing
of a wheat crop realize the delicate
commission with which Barnes was
intrusted.
We realized that IL would be i'm
possible for us to function finan-
ciaIIy as heretofore in the purchase
of grain from the farmer or in the
distribution of products of wheat
to the people. At the request of
the wheat director the various
trades interested held a conference
in May and June of last year. As
a result the following methods of
procedure we're suggested:
Methods of Procedure.
"First-To create governmental
machinery for the direct purchase
of wheat from the producers and
the sale of the wheat to millers.
and possibly the purchase and sale
of wheat products.
"Second-To make trade agree
ments with the various branches of
the wheat handling milling and
flour distributing industries in a
way that would make 1t safe for
these Industries to continue to
function.
Protected Farmers
The wheat director decided tnst
the Government could not uader-
take the direct purchase of wheat
from the farmer because ( this pro
cedure were followed the guaran-
teed price would of necessity be-
come the maximum price. We
trealized that In entering into this
agreement that we were dealing