Evening star., 1927-02-25

in view OF its wide clrcumtl0n III
the farming communities of the
country can be only because the
proponents of the bill are unwill-
ing that the farmers of the Nation
shall learn that it is proposed that
the equa liZation fee principle shall
he utilized to ass sure to The pack
ers what they have not been able
to gain for themselves certain
profit from every years operation.
The proponents of the bin at
the hearings conceded that ii could
not oDerate as to animals except
under contract with the packers.
1t incidentally follows that no
packer without Il contract could
operate with the board The bin
nowhere protects the independent
packer. 1t does provide that there
shall be no discrimination between
cooperative associa tons II con
tains no like provisions as to
professors.
Sees No Gain to Farmers.
The bill would impose the burden
of lts support to large degree upon
farmers who would not benefit by 1t.
The products embraced in the plan
are only about one third Of the total
farmers who grow these commodities
are themselves large consumers of
them. and every farmer consumes
some of them. There are several mil
ION farmers who do not produce any
OF the designated products. or very
tittie OF them. and they must nav the
premiums upon the products desig-
mated IN the bill. In some camnnfi
itleS Such as corn and mill feed the
farmers are practically the sole ron.
Sumers.
IL is proposed to increase the price
OF corn and mill feed to Americ, n
farmers. and therefore the casts to
the dairy and cattle feeding ind,ist rios
whose products are omitted frdn, the
OH. Beyond this. it means that hv
jumping OF American feeds abrnad a.
IoWer prices than those charged Under
tnis plan to the American swine cat.
ne ana dairy farmer. we should he Al.
rectiN subsidizing foreign productiop
ol PORK, dairy, beef and other animal
- =, ouucts IN competition with our own
,ai w. 'is,s III the markets of the world.
ora am sen" cheap cotton abroad
The effect of this plan will he con.
',,y 10 stimulate American bro
u,. uuetloti ana 10 pile up increa sing sur
p.uses = beyond the world demand. We
aie areauE oVerproducing 1t has been
eiai5ieu mat the plan would only be
used in the emergency of ooo, a;s.,.i
surplus. which iindulv depresses tha
price. No such limitations are nlaced
IN the bill But. on the other hand
the Ge1nition of surplus is the .ssur.
lhus over domestic requirements.
ana. as we have had such a sufnlus in
most or the commodities covered in
the Dill for so years and will have fo,.
years to come. it means continents
action.
Effect Of Fee System.
1T iss said that by the automatic in
crease OF the equalization fee to meet
lhe increasing losses on enlarged
cumping of increasing surplus
there would be restraint on produc.
non. This can prove effective only
after SO great an increase in produc-
ton as viii greatly enlarge our ex-
ports on all the commodities except
cotton. With such increased surpluses
dumped from the United States on to
foreign markets the world prices will
be broken down, and with them Amer
lean prices. upon which the premium
is based. will likewise be lowered to
the point of complete disaster to
farmers. 1t IL impossible
to see how this hill can work.
Several Of our foreign markets
have agriculture of their own to pro.
teot. and they have laws in force
which may be applied to dumping. and
we may expect reprisais from them
against dumping agricultural products
which will even more diminish our
foreign markets.
THE bill is essentially price.fixing
bill, because in practical working the
board must arrive in some way at the
premium price which will be demand
ed from the American consumer, and
1t must fix these prices in the con-
tracts at which 1t will authorize ptir
chases by -four millers, packers, other
and such co.0peratives
as may be used, for the board mtist
formulate basis upon which the
board will pay losses or the export of
their surplus.
Warns of Bureaucracy.
"The present volume Of exports Of
the commodities designated in the bill
Is one and one-half billion dollars per
A multitude Of contracts in
scores of different grades and
qualities and varieties OF products
with thousands of individuals, both
for raw and manufactured materials,
must be entered into-praetically cost
plus contracts. The monetary volume
of these contracts will be further ex.
panded beyond even this stin. because
In hogs. for instance, the exports are
in the main lard and bacon. while
other. parts of the animal are con-
sumed at home, and thus contracting
must apparently need cover all hogs,
not the export surplus alone. There
fore the bill means an enormous build.
ing up of Government bureaucracy to
let and inspect these billions Of dollars
of contracts with all their infinite va
riety of terms covering different goods
and their different grades and qual.
tiles. In turn, all of the contracts Of
reSales by these institutions must be
examined and checked to determine
the losses made.
Parallel with it another bureau
cracy must be built up to collect and
distribute the equalization fee. 1t all
calls for an aggregation Of bt1reau.
cracy dominating the fortunes Of
American farmers. intruding into
their affairs and offering infinite op-
portunities to fraud and incapacity. 1t
does not replace any middlemen or
manufacturers; It means that tnou.
sands of officials are set to watch
them and the farmers to see that
they do not evade the requirements.
One of our difficulties today Is the
great spread between the farmer and
the consumer. All these increased
professors profit and this cost Of
bureaucracy must simply add to this
spread without bringing to the farmer
any return on such items In fact,
as he Is a large consumer he also
pays this.
Government in Business.
While the Government is not
directly buying or selling these COM
modities, 1t must under this bill let
contracts for others to do SO and name
therein the terms upon which they
shall buy and SELL No matter how
disguised, this in plain terms Is Gov.