Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-29
FARMBOARDPROBE
| SEEN AS QUIZ ENDS
Norris and Others Predict
/ Further Senate Inquiry.
"ETors" Are Found.

ny WIG AsoOClaNCQ ETCSS.
Public hearings to determine the fu-
sure status of the Farm Board we're
completed by the Senate Agriculture
Committee yesterday. but it left the way
open for further investigation.
A new inquiry into the boards oper-
atoms, which have resulted in a paper
less Of E;s5, 100000, was predicted by
Of the hearings. on which legislation
Will be based to strengthen or modify
the agricultural marketing act
Chairman McNary, who called the
hearings said they had determined the
usefulness of the marketing act" but
had also disclosed some errors in ad-
miniStration."
He added that while these were not
"deltnQuencieS, the question of further
hearings into the boards activities
would be placed before the committee
Norris Predicts Senate Probe.
Senator Norris of Nebraska. Repub-
kican independent member of the COM
mittee, predicted a further investigation
of the board by subcommittee en-
powered to subpoena witnesses and rec
ords.
dictions privately.
McNary said the committee generally
seemed to "disapprove of some Of the
exceedingly high salaries paid to en-
ployeS Of the various subsidiaries OF the
board"
The chairman said he would call a
meeting of the committee soon to con-
slider any modification of the market
ing act
Hearings Bare Huge Losses.
The hearings, which lasted four days.
developed a united recommendation
from farm organizations for legislation
to strengthen the board and inSiStent
demands from wholesalers and cotton
dealers for modification of its powers.
Fighting for the life of the board, its
members and operating agents barred
the secrets of its operations. Admitting
mistakes, and testifying to paper losses
of $185, 100000 in its sterilization oper-
ationS they commended it had benefited
the farmers.
At the close of the hearing today,
Carl Williams, cotton member, took the
stand again and said the estimates of
the boards sterilization losses had been
given exaggerated Importance.
He said 13-cent cotton would wipe
out the paper losses of the board and
the co-operatives and said they were
making their plans on that basis.
Boards Value Disputed.
The hearing today developed conflict
ing testimony regarding the boards
value. u. B. Blalock, president Of the
American Cotton Cooperative Associa-
ton, defended the board, and charged
the American Cotton Shippers Associa-
ton had solicited fund of 100000 to
seek repeal of the act. The board also
was upheld by Charles c. Hulet. master
of the Oregon Grange who asked for
the debenture to strengthen it.
Three witnesses, j. Earle Roberts,
representing the National League of
Commission Merchants; F. M. Mcintyre
of the Eastern Federation of Feed Mer-
chants, and G. l.. Poole, president of the
New York Mercantile Exchange, de-
nanded abolition of the board or nodi-
flcation Of its powers.
Seibel c. Harris, representing the
grain exchanges, defended the value of
shcrt selling and commended the ex-
changes had benefited the farmer.
Secs Profit on 17-Cent Cotton.
lie said existing law gave the Agri-
culture Department authority to pro
vide against any abuses which might
conceivably creep into the present sys-
TEN" and added that the exchanges
themselves had committees to cooper
ate with the Government
To depart from the practice of short
selling, he said, would be "prejudicial
not only to the trade itself, but to the
interests of the farmers"
The interests of the grain exchanges
are necessarily those of the farmer"
he added.
williams testified that a cotton price
- 17.S5 would clear the Farm Board
ION its sterilization operations; that
@ne cooperative would break even
E,Wf&3N n FRFfPa IF little 1oec
EoentS and that losses of both would be
forased by price of 'trifie over IS
eents."
Two Groups Owe $193,872,5S3.
sThat Is about twice its present
kHalue." McNary remarked.
That's true" Williams replied. but
kH3-cent cotton is in no sense an i'm
POSSIBILITY and the board and the CO.
Operatives intend to go ahead until it
lean be worked on some such basis"
Williams testified that the Cotton
STERILIZATION Corporation and the Co
operative Association owed an aggre-
banks on November "a, against which
could be balanced their holdings of
100000 bales of cotton.
or this total, he said, $157 GOO, 900
was owed the Farm Board; $14 685, 900
to intermediate credit banks, and $2l,-
UUU,UUU 10 primary DankS.
Defends $4,000 Paid Head.
Blalock defended the contract under
which E. F. Creekmore, general mana
ger of the Cotton Cooperative AsSoci=
alton. is allowed $4,000 year in SAL
airy and commission.
He said Creekmore was making that
much before he was employed by the
association and a man of his caliber
was needed to direct the organizations
operations.
Blalock also refused to concede the
board had lost money on its cotton
sterilization operations, pending final
conclusion of those efforts.
1T Is our opinion" he said. that
the agricultural marketing act has not
had a fair tryout. Regardless OF what
ever mistakes the Farm Board may
have in the administration OF this act,
we believe they have accomplished far
more good than they have done harm'
Says Act Buys Political Support.
Roberts contended that tie act TO-
mcnted economic warfare between
r-r.uccrs and distributors
He raid loan OF Government money TO
producers of pcriShaole commodities was
unnecessary because 40 to 60 per cent
of their credit has been supplied by
dealers and handlers and this could
have been increased by embarrassment.
Roberts said no scheme to buy with
Government funds the political support
of a substantial bloc of citizens" could
be better than the finance provisions OF
the act.
Those who receive from the hands
of the Farm Board bountiful sums OF
Government money naturally will be
grateful" he added.
Basic Rights Held Violated.