Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-15
STONE MAINTAINS STERILIZATION
NETS u. S. INTERESTS $18O,OOOOOO
Farm Board Head Answers
Its Critics, Estimating
Price-Pegging Results.
Trading in Wheat and Cotton
Gave Profit to Farmers
and Sellers, He Says.

Wheat and cotton sterilization has
put at least $3.50 900 900 into the pockets
OF American agricultural interests for
distribution into other channels Of
trade
This is the answer to stabuizat ton
critics by James C. Stone chairman Of
the Federal Farm Board, which. under
the provisions Of the agricultural mar
keting act, authorized sterilization of
wheat and cotton and paved the way
for heated. controversy.
One hundred million dollars is Mr..
Stones estimate Of the profit to owners
of wheat as the result Of the Govern
ments efforts to bolster prices in the
face Of declining market.
Says Men Who Sold Gained.
Not all of this gain went to the
farmers. Mr.. Stone explains. as the
Grain Sterilization Corporation. formed
through co-operatives to handle the
grain, bought wheat from any one who
had 1t for sale to maintain the price.
But" he adds. every farmer who
sold his wheat during this sterilization
period got the benefit Of the increased
price"
In cotton the profit to producer alone
is estimated at $4,000, 900 to $l00. 000,-
600 on the 1929 crop, to say nothing OF
additional millions he said were repre-
scented In better values for the 1880
crop because the holdings of the previ-
Gus year were kept of the market.
Cotton Holding Began In 1889.
While the extent of Farm Board ac-
Invites in wheat never has been re-
vealed. there has never been any secret
concerning cotton trading.
In June, 1880. the board took over,
through the Cotton Sterilization Cor
poration, formed through co-operatives
like the grain group, 1900 900 bales on
which it had made loans to co-opera-
tives from the previous october, on
basis OF Is cents pound, or $50 q
bale Added charges brought this hg-
ure to about $85, and since June, 1880,
an additional carrying charge OF 50 or
81 bale has accrued. bringing the
total investment to something ever
$3.50. 900 900. Today this cotton Is not
worth much more than half that. 1t
seems certain there will be q loss. -.
But to counterbalance this VIII
be the $So,o0o,0o0 TO 100000, 900 to
the growers because the boards action
enabled the price Of cotton 10 De
maintained while the farmers marketed
about 10000, 900 bales Of the 1929 and
1880 crop, 1t is claimed.
Silent on Wheat Holdings.
Mr.. Stone has steadfastly refused to
saw how much the board has invested
in wheat. At the proper time, he says,
there will be an accounting. In the
meantime Mr. Stone asserts that from
the time Sterilization was resumed last
November until 1t was discontinued
when the new crop started to move
last month those who owned wheat
netted 500 0o0, 900 above what they
ordinarily would have received, He
comedies that the cost TO the govern
ment may have been 10000, 900.
Stabilizati ton goes back two years,
when the board first went TO the renel
of the cotton growers.
In mid-August, 1929. with spot
around Is cents, the board announced
its initial loan policy Of lending to
al. Allied cotton co-operatives enough 10
bring the total advances to 30 per cent
of the market value on cotton, on
which value had been fixed by sale
or hedging.
Cotton Pegged Around IL Cents.
There was some recovery. and on
September the board announced that
supplemental loans would be made on
cotton on which the value had not been
fixed, suficient to bring the total up
to rs per cent of the market value ut
time OF delivery.
In the FIRST half of October average
prices in the 10 spot markets were
nearing the 17-cent mark. On October
II the board expressed It's belief that
prices were too low and announced a
policy of advancing tc all qualified CO.
operative associations such sums rs