Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-17
BARNES OPPOSES
BOARDS PLANS
Tells Lobby Body Activities
Tend to 0verStimuIate
Wheat Production.
Continued From First pasel

Let's get back TO the simple language
of the West
Senator Nye, Republican, North Da-
kota, who recently said on the floor OF
the Senate that independent grain deal
ers were fighting the Farm Board, sat
with the committee.
In answer to questioning by Chair
man Caraway of the committee, Barnes
asserted that he favored policy that
would let the producers of wheat live"
but he also said he wished to pre-
serve the independent grain dealer. He
said he favored control by the producer
of 40 per cent of the crop.
The Chamber Of Commerce official
was at times questioned sharply by
committee members, Senator Caraway
at one time describing him as "un-
candid" after Barnes held it Was un-
fair to read letter written by another
and then ask him if the views eX-
pressed against the board were his own.
This letter was written by Ben G.
McCabe of Duluth and as read by Cara
way it predicted failure for the Farm
Board
Barnes said he believed the board
would be successful, but he added that
he believed it should change its policy
to eliminate discrimination. He assert
ed the boards policies placed the indie
pendent buyer at a disadvantage. He
amplided this statement by saying that
loaning the co-operatives money at 312
per cent, while private dealers had to
pay per cent, was unfair and un-
sound"
Questioned by Senator Blaine, Re-
publican, of Wisconsin whether he OBJ
jected to loaning money to shipbuilders
at 81 per cent, Barnes said he did not
object II it were loaned on those terms
to all shipbuilders. but that he would
| If it were loaned only to cooperative
shipbuilding organization.
Activities Cover "a Years.
Barnes, chairman of the business
advisory council formed at the Presl-
dents suggestion to promote economic
| progress, said he was resident OF Du-
| luth. MINI, and that his activities on
grain exchanges had been very extensive
| and had covered a period of 81 years.
Chairman Caraway of the lobby COM
mittee referred to reports that Barnes
had interfered with the policy OF the
Farm Board.
What truth is there to it?"
| Remember I have not dollar OF in
terest affected by the Farm Board pol
| icy" Barnes began.
Caraway then recalled his $3,00O.00O
| investment, but Barnes said this was In
export trade.
There was a growing bitterness in
the grain trade" continued Barnes, "and
I thought it best to try and find out the
| trouble. I arranged to have the grain
interests meet Chairman Legge and this
was done. I found Mr.. Legge very fair
and business man."
/ Fair to whonl-business or the
farmer" broke in Caraway.
81 don't consider to either one neces-
sarily. Fair to both"
Legge Denies Antagonism.
Barnes said at the conference between
Legge and the grain interests the Farm
| Board chairman was asked if the board
had ANY deep-seated antagonism
J toward established grain facilities" He
said Legge denied that there was such
| antagonisn.
Among those at the conference,
Barnes said, were a Mr.. Wells, a Mi.
Goddell and Mr. Carey, all of Mime
apolis.
Barnes then explained the set-up of
the National Grain Marketing Corpora
ton of the board as he understood it
after the conference with Chairman
Legge.
Barnes said that after the confer
ence the board announced policy
whereby loans would be extended to
| local elevators at the same rate as to
| farm cooperative members.
THAT was the purpose of the con-
| ference?" asked Caraway.
That was the purpose" the witness
replied.
Barnes added that Chairman Legge
| volunteered such a program.
do you think farm cooperative
members should be burdened with the
higher rates of interests per cent
applied to those outside of the co-opera-
| tive agencies? Whose suggestion was
it?" asked Senator Blaine Republican,
Wisconsin.
objects to Question.
"I cannot answer that question in
the form given" replied Barnes.
THAT is a fair question, and 1t is up
to you to answer it?" persisted Blaine.
1T is not fair" returned Barnes.
Chairman Caraway broke in and told
Barnes to answer the question. Barnes
then reiterated that Chairman Legge
had volunteered such policy in his
talk with the commission men.
Barnes insisted that the farmers
should pay the same interest rate on
loans as those with whom they are in
competition.
DO I understand that you suggested
and Chairman Legge concurred that
the farmer should sell his wheat on
the basis of s per cent loans?" con-
tinued Blaine. Answer yes or no."
Yes"
Barnes then proceeded to tell of the
conference with Chairman Legge.
Caraway asked how much Barnes
had invested in his grain export busi-
ness. He said the company he con-
trolled had an investment of about
$4,000 000
Recalling an old complaint by Ital-
ian purchasers of grain from his cor
poration, Senator Caraway asked about
it and Barnes said the Federal Trade
Commissions had practically apollo
gized to me on it."
Barnes said he had objected at the
meeting with Legge to the Farm
Boards plan of loaning money to wheat
co-operatives at the current grain price
with the understanding that the pro-
ducers were to share in any subsequent
increase.
Told It Was Emergency Measure.
The witness testified Legge told him
this was put into effect as an emer-
gency measure and that he thought it
would attract attention to the facilities
of cooperative organizations.
Barnes said protest was made against
setting an arbitrary figure to stabilize
grain prices.
Then you parted in disagreement"
he was asked.
mo. Chairman Legge gave aSsur-
ance that before promulgating a major
policy hereafter, he would confer with
representatives of the trade