Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-28
GRAIN BEARS HELD
HELP TO FARMERS
Exchange Head Tells Senate
Committee Short Sales
Benefit.
BY the Associated Press.

BY the Associated Press.
Short selling was defended before the
Senate Agricultural Committee today
by the grain exchanges
Siedel C. Harris, chairman of the
Committee on National Affairs Of the
Grain Exchange, also contended the
exchanges have benefited the farmer
and the Agricultural Department has
authority to provide fully against any
abuses which might conceivably creep
into the present system"
He pointed out the exchanges them
selves have committees which cooper
ate with the Government to prevent
abuses.
ITO depart from the long and settled
practice of short selling of grain at
this time. when the amount of short
selling of grain is negligible, would IN
the judgment of the exchanges be
greatly prejudicial not only to trade
itself, but to the interests OF the
farmers.
Speculation Curb Hit.
Anything which tends to curtail or
eliminate the speculative market cor
reSpondingly interferes with the ability
Of the merchandise to shift his risk, :"
the witness put it,
Senator Frazier, Republican. of North
Dakota, contended short selling is
pure gambling that kills the law of
supply and demand and does away with
a fair market"
Harris replied he did not think so,
because the Grain Sterilization Cor
poration-armed with 100000, 600
had been unable to maintain the price
and it was illogical to believe that a
few individuals without any such sum
could control the prices. Speculation,
he said, shifts the risk from the pro-
ducer to those who want to bear 1t.
Act Repeal Asked.
The Senate committee Is investi-
eating the Farm Board. with a more
searching inquiry in the future looming
If developments warrant.
Repeal of the agricultural marketing
act was demanded by F. M Mcintyre.
representing the Eastern Federation of
Feed Merchants.
j. Earle Roberts, representing the
National League of Commission Mer-
chants, testified economic warfare be-
tween producers and distributors is
fomented by the farm act. He said
dealers and handlers of perishable
products had furnished from 40 to so
per cent of the credit needed by pro-
ducers of these commodities.
"Unalterable opposition" to the agri-
cultural marketing act, which set up
the Farm Board, was expressed by C.
S. Poole. president of the New York
Mercantile Exchange Members of his
organization feel the act has over
looked the constitutional fundamentals
liberty and justice-he added
Two field generals Of the Farm Board
defended their tactics on the wheat and
cotton battlefrontS in testimony yes
terday before the committee.
E. F. Creekmore, SITS ,000-a-year gen.
eral manager of the Cotton Stabiliza-
ton Corporation and the American
Cotton Cooperative Association, told
the committee the farmers benefit from
was worth its cost.
George S. Minor, $50,000-a-year gen.
eral manager of the Grain Sterilization
Corporation and the Farmers National
Grain Corporation, testified to the
financial success of the cooperative
Boards Removal Asked.
Meanwhile another demand for aboli-
ton of the board came from Senator
Democrat, of Ohio. On his re-
turn to the Capital yesterday he de-
Scribed the boards sterilization opera
tons as dismal failure" He added
he would like to see the cooperative
activities continued, but said that func-
ton of the board could be transferred
to the Agriculture Department
Creekmore not only defended the cot
ton sterilization operations, but said
losses sustained in them-now estimated
on paper at $l85, ,00o-may have
been recovered quickly had the Farm
Board had the financial strength to
take advantage of the present situation.
He also welcomed the investigation Of
the Farm Board proposed by the Amer
lean Cotton Shippers Association We'd
nesday and urged that it include the
cooperative association and the cotton
shippers.
The boot and shoe industry Of the
Irish Free State has a shortage OF
I'LL