The Bismarck tribune., 1929-03-15
SHAFER VEYOES BILL
CUTTING GLECALRATE
FOR STORING GRAIN
Governor Agrees With Principle
but Believes It Would
Hurt Farmers Here

Veto of the bill reducing legal rates
for storing grain In elevators was an
nounced today by Governor George
F. Shafer. who also vetoed two bills
making minor changes in the game
and fish laws.
The grain storage bill occasioned
bitter arguments In the legislature
and hundreds Of protests against it
had been received at the governors
office since the legislature closed.
Although agreeing with the princi-
pie that the farmer should have 20
days free storage. AZ provided In the
bill, the governor expressed the opin-
Ion that reduction OF the storaIe rate
below the rate charged in netRhbor-
ing states and at northwestern grim
terminals would work q hardship on
many farmers. Pointing out that
North Dakota elevators would have to
store grain at the terminals at a
loss, the governor stated that such
loss would have to be made up at the
expense Of those patrons who are
obliged to sell their grain at time Of
delivery" In other words that gen.
eral reduction in the card prices for
grain at elevators might result.
The present law provides 20 days
free storage, provided the farmer sells
his grain within the 20 days. Other
wise he pays storage from the time
the grain is delivered to the elevator.
The storage rate Is one-thirtieth Of q
cent bushel per day.
Granted Free Storage
The vetoed bill would have granted
20 days free storage outright and the
storage rate would have been one
fortieth of cent q bushel per day
the charge to begin at the expiration
Of the 20-day free storage period.
If the charge made by this bill
was limited to the 20-days' free stor-
age feature, 1t would merit approval,
but do not feel that the reduction
IN the storage rate Is justifiable un.
der present conditions" the veto mes
sage said.
Pointing out that the storage rates
IN neighboring states and at termin-
ais are the same as now In force here,
the governor said he has no knowl-
edge Of what fair rate would be but
that 1t is clear to me that it is un-
fair to compel our elevators to re-
ceive grain In storage at rate which
is less than the rate which they are
obliged to pay to restore such grain
IN Minnesota terminal warehouses.
Discourages Elevators
Pointing out that North Dakota ell
cvators had $4,000. 900 bushels Of grain
IN storage at terminals at one time
last year. the executive said that re-
duction of the rate below that
charged at terminals would "discour-
age North Dakota elevators from stor-
ing grain in terminals and encourage
them to follow the old practice Of i'm
medtately selling al grain stored with
them and buying options on the fu-
tufe market to protect their liability
on outstanding storage tickets.
! believe that actual storage on
the farms and In terminal ware
houses should, BY all means, be en-
couraged wherever possible and that
fictitious storage be discouraged. It
Is well known that adequate storage
OF our surplus grain crops Is one Of
the important elements OF orderly
marketing, and that such principle
will be Incorporated In any federal
market stabilization program that
may be adopted BY the special ses-
sion Of congress which is being called
Continued on page uine)