Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-25
FIGHT TO CONTROL
GRAIN PRICES SEEN
Farmers of Northwest Con-
fused by Problems in
Marketing Product.
BY J. c. RoYLE.

Farmers of the Northwest, with op-
posing influences bearing heavily upon
them, are proceeding cautiously in de-
Gliding what program they will follow
From Northwestern market centerS
came reports today that struggle for
control of the grain markets OF that
section was impending.
n. M. Thatcher, general manager OF
the Farmers Union Terminal AsSocia-
ton of st; Paul, and the Federal
Farm Board are launching vigorous
campaign 40 induce farmers to arrange
loans on their wheat on the basis of
$1.25 for No. ! Northern Spring wheat
in Minneapolis and SLIP for No. /
durum at Duluth. Appeals have been
sent out through every available chan
mel t. all holders of grain announcing
that the Farmers Union plans to APP
point grain elevator in every grain
town in Minnesota, North and South
Dakota and Montana to represent the
association in making loans to farm
ers based on Government Farm Board
loan prices, less transportation costs and
handling expenses.
National Grain Corporation.
The Federal Farm Board is working
through the National Grain Corpora
ton, and the boards program is being
sharply attacked by the part of grain
dealers and commission men in the
milling centers who charge that the
Federal program Is one of price-f1xing.
j. H. Macmillan, president of the Car
gill Elevator Co. of Minneapolis. after
a conference with other grain trade
leaders, issued a statement in which he
declared;
"The Farm Board has adopted a poll
icy of attempting to fix a minimum
price for wheat by making loans di-
rectly to farmers. Price-hxing has
been condemned by all economists of
standing for years and has always
ended in disaster. The Farm Board
policy means imitation, with all its at
tending evils. 1t threatens to destroy
all the. existing agencies and markets,
and while it is possible that with the
unlimited amount of money which is
available to the Farm Board 1t may be
able to keep farm values above a world
parity for a short period, I do not see
how it can be anything but disastrous
in the end.
Cooperative Concerns.
at means that all farmers shall be
forced into cooperative concerns. This
could only lead to pools and monopolies.
Monopoly always means waste and In
efficiency and I cannot too strongly
condemn these policies, and I warn
business men OF the lneVlJdple result.
Samuel r. McKelvie, grain represent
alive on the Federal Farm Board, said
today that his organization had no idea
of attempting to create a detrimental
monopoly.
"Co-operatives will ultimately con-
troll grain" he added, "aS the board
will continue making loans enabling
them to feed grain into the market ac-
cording to the demand for 1t"
Mr. McKelvie explained that all OF
the grain co-operatives are not yet
qualified to receive loans from the board,
since to do so cooperative must COM
ply with the regulations of the Capper-
Volstead act A regional organization
for Minnesota, North and South Dakota
and Montana he said, was being set up
similar to the North Pacific Grain
Growers Cooperative Association, re-
Gently organized from the ground up
with the assistance of the board. He
made it plain that the loans on grain
by the board are supplemental and are
made in addition to the credit CO.
operatives are able to secure from other
sources. From the point of view Of the
board, its action is not an initiating in
f1uence of one capable establishing q
nnonoply,