The Omaha morning bee., 1922-10-29
Wallace Explains
Farm Laws Enacted

\ ttOut1Hued From IhRe Vbe'J
practices or unfair treatment and be
sure that their complaints will receive
prompt attention. We are making
alidlts OF the books of commission
merchants and before long Will know
whether the rates they are charging
are fair. We are also looking into the
charges made by stockyards com.
paniea, az well as the manner In
which they are handling the livestock
We are studying the packing bust
ness and how 1t Is conducted.
ALREADY we have stopped many un'
fair practices. We have put an end
TO boycotts by commission firms and
stockyards traders Farmers coop.
eratiye commission companies properly
organized, can now go into any Of the
livestock markets and handle live.
stock for their members with the as
suranco that they will have n square
deal. That was not possible before.
Reforms have been made in the way
livestock Is handled at some Of these
markets. Considerable improvement
has been made In the prices paid for
animals which have reacted to the
tuberculin test. In due time we will
have complete information concern.
ing the livestock and packing busi-
ness In all of its details and will be
able to correct and prevent any
abuses.
Along the same line the depart.
ment has been studying the retail
distribution OF meat. The margin be-
tween tho price the farmer gets for
the live animal and the price the con-
sumer pays for the meat seems to be
too great. We are trying to find why,
and how TO reduce this margin. When
the price OF livestock falls, the price
Of meat should fall also, and thus In.
crease consumption. We are making
systematic studies Of thos whole bus
iness, especially in the larger cities OF
the east.
"rhere was opposition to the pro.
posal to bring the packers and stock
yards agencies under the control OF
the government. Many people felt
that 1t was an uDwarranted interfer.
ence with private business. Some of
these people still object, but many
who objected before the law was
passed have changed their views.
They are beginning TO see that the
law IL a good thing for them, as well
as for the general public, and they
are co.operating with us.
Control Grain Exchanges.
"Another law similar to the Pack.
ers and Stockyards law is known a.
the Grain Futures act. This law
brings the various grain exchanges
under the supervision OF the secre-
tary Of agriculture. 1t gives him au'
thority to inquire into the manner IN
which grain is bought and sold ana
future contracts made upon che prin-
cipal grain exchanges OF the country.
It gives authority to make a careful
study of our entire system OF grain
and especially Of the prac'
tlce by which grain prices are regis
tered on these markets.
This law does not prevent hedging
or legitimate trading, but 1t does car
ry the power to prevent unfair manip-
ulation and correct improper prac-
tices by those who deal in grain fu-
lures. When this law was passed last
summer an appeal was made to the
courts and II was held unconstitu-
tionai. 1t was redrafted and again
passed promptly by congress Some OF
the grain exchanges have again APP
pealed 10 the courts. They think the
law is an interference with private
business. They object especially 20
the provision that they must allow
farmers cooperative associations 10
become members OF boards of trade.
We hope that the supreme court viii
find the law constitutional this
time.
Neither Of these laws win hurt any
honest business. Ths whole purpose
10 20 help honest business, and 30
make s,ae that farmers have free,
onen aud competitive markets for
their grain and livestock"