The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-03-10
STORED GRAIN HIT
WHEN FARM BOARD
DESERTED MARKET.
Shafer Says Action in Dropping
Sterilization Purchases
Hurts Dakota
PENALTIES STORAGE PLAN
Calls Attention to Possibility Of
Restoring Old Policy When
Terminals Clear
PENALTIES STORAGE PLAN

Governor George F.. Sllafe- CT
North Dakota. late Saturday asked
Chairman Alexander Leggc of the
federal farm board to restore the for
mer cash price for wheat by making
better use of the governments grain
sterilization corporation.
In a telegram sent to Legge and
Samuel r. McKelvie. representing
wheat interests on the farm board.
the governor said that removal Of the
governments support from the cash
wheat market has worked a grave in
justice upon North Dakota farmers
and business men whose grain still Is
unso1d and who had relied on aSslIr-
ances that the governments price
would be maintained.
tIc suggested that the farm board
relieve the situation. caused by it's
withdrawal from the market. by an
nouncing that the former price will
be restored as soon as congestion at
terminals is relieved. and by pur-
chasing for future delivery wheat
now stored on farms and in country
elevators.
The governors statement was the
first official reaction apparent in
North Dakota to the governments
withdrawal OF its guaranteed wheat
price.
The governors telegram to Legge
and McKelvic follows:
The recen. action Of the farm
board. withdrawing the minimum
cash price for wheat at the terminals.
was followed by a slump of from 10
to IL cents in the cash grain market.
.as Serious Fer Grain Storers
sst'EAis has created a serious finan-
E4Al emergency for all farmers in the
Northwest who still hold unsold wheat
md, if continued. will cause distress
saoV all farmers and business men who
srelied On assurances that such mini
mum price would be continued until
July l.
~ 1T would be a grave injustice to
thousands of farmers and business
.inen in the country to permit this un-
iorseen condition to prevail if it can
possibly be remedied.
x'Hundreds of farmers in North Da-
kota who stored their wheat in coun-
try elevators and on the farms in a
spirit of cooperation with the orderly
marketing program OF the farm board
are thus unjustly Disseminated
against and greatly injured.
Proposes Stabilizing Relief
Press dispatches state that with
GraWl action was necessary to relieve
congestion in the terminals. Can not
the farm board relieve the situation
in this way:
Il. Announce the purpose to re-
store the former minimum price as
soon as storage conditions in the ter j..
.minal5 will permit.
%. Authorize the sterilization cor
poration to conditionally purchase for
future delivery sufficient farmer
owned wheat stored in country ele-
yato-s and on farms at former cash
prices to restore the cash market to
its previous level.
North Dakota has a workable
.farm-storage law under which 1885,
600 bushels of wheat have been stored.
Farm storage certificates representing
such grain could also be purchased, as
well as warehouse receipts.
cooperative organizations spon-
sored by the farm board can not pos
Sibly be set up in time to relieve the
present emergency. Therefore, I re-
specially Urge that the board expand
the functions Of the sterilization COR
sporation to meet this condition"
Virtually Penalty on Storers
In affect. the governor said. remova.
of the governments support from the
cash grain market has acted as a pen.
atty on those farmers who showed tht
most willingness to cooperate with
the farm board by holding their grair
off the market. These persons, h,
said, relied on assurances that tn,
price would be supported until July
and refrained from adding their grair
to the glut already in the market.
BY purchasing grain in storage. a.
represented by warehouse receipts ant
farm storage certificates. the farm
board can maintain the cash price Il
farmers and at the same time guar,
against additional congestion at tn
terminals. the governor said. Will
the sterilization corporation in con
troll OF grain on the farms and a
country shipping points. it will be fl
position to order shipment wheneve
1t pleases and thus control the flo,
OF grain to market, he said.
Time When Farmers Need Lift
The governor pointed out that man
farmers with wheat in storage 500
will need money to finance sprin
Operations and will be forced to sell
efa loss. unless the government acts.
Highways throughout North Dakot
have been in poor condition sine
early December and few farmers hav
been able to haul grain to market thi
winter. These, also. will be seriousl
injured by withdrawal Of the govern
ggMopt price from the cash market, tn
33overnor said.
McKELVIE AWARE OF
NORTH DAKOTA TROUBLE
Statement he was aware of the sit
uatiOn created in North Dakota b
the withdrawal Of the federal farr
hpqrd's minimum price from the cas-
wheat market was contained in q tel
egran received today by Governo
Oecrge +. .Shafer from Samuel r. Nc
Eelvie, representing wheat Interest
. the farm board.
ncKelvto said the board had hope
11lak = return to the loan basis, an