The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-05-26
Grain Trade and
C0-Ops in Battle
Death Struggle Looms as Chi.
cago Board of Trade Sus-
ponds Trading Firm
IS OWNED BY GOVERNMENT
Effect is to Bar Farmers Ma.
tional Grain Corporation
From Chicago Market

SiiNoSo, WAY Io.-HJ-fTlctlOn be-
tween the Chicago board of trade and
the federal farm board forces devel-
oped into open hostllities Thursday
with the decision of board of trade
directors to suspend the trading
privileges of the government-own
Updike Grain company.
George s. Minor, president of the
grain sterilization corporation and
general manager of the Farmers Ma.
tlonal Grain corporation said he was
sure the government would be asked
at once to invoke the grain futures
act against the board of trade. Sec
Rotary of Agriculture Hyde had pre-
viously been urged to remove the ex-
changes license. He said he would
withhold consideration until the Up.
dixie matter was decided.
The decision. reached by the board
Of trade directors Wednesday night.
was based on charges that rules of the
exchange we're violated in the trans
fer Of the grain company to the gov
eminent a year and half ago. The
directors also suspended two officers
of the Updike company.
Regardless of the fact that these
men were officers of the farm board
subsidiary. financed by the govern
ment, we had no other recourse if the
integrity of the exchange is to be
said a statement which
accompanied the decision.
Conceaiment Charged
at developed that officers of the
Updike company. presumably with
the knowledge of officers Of the
Farmers National, concealed in their
statements that the Farmers Ma
tional was actually owner Of their
stock when registering their new
Commenting on the suspension
Minor declared it hardly seems pos
'ible that prejudice against the fed
sral farm board. Farmers Nationa!
Grain corporation and the coopera-
i've movement in general could in
luence the Judgment of business mel
n rendering such an important de-
,ision."
Enforcement of the decision, Minor i
aid. would cost grain producers many
thousands of dollars in actual DAM !
lges and II do not believe they will !
mildly submit without testing out just |
What the grain futures act means.
There Is no doubt In my mind but |
hat immediate steps will be taken.
If the act is not sufficiently broad
o enable producers to have full board |
# trade and clearing house privileges.
possibly congress will see fit to amend
he law so as to fully protect farmers
interests in the marketing of grain
hey produce"
Revocation Of the board of trades
license under the grain futures act
or alleged discrimination against
was asked of the gov
rnment last April by farmers ma
ional, but at that time Secretary of
agriculture Hyde said he would with
lold expression until the disposal of
he Updike case.
Purchased Year Ago
Farmers national purchased the
Jpdike Grain company last year to
cquire through 1t clearing privileges
Which the board of trade denied to
he cooperative itself under a rule
airing corporations. The purchase
,as not made public for some time
nd this was the basis of the board
I trade charges against Updike.
The company itself was suspended
on charges that its pres
lent, Fred Thatcher. and its secre-
ary and treasurer, J. Fletcher Flor
ntine, presumably with the knwol-
dge Of officers of the farmers ma
onal. concealed in their statements
hat the farmers national was actual
, owner Of their stock when register
lg their ownership
Thatcher was denied privileges for
I've years and F1orentine for two
ears, under the suspension ruling.
Chairman Stone Of the farm board
lid at Washington Thursday night
ne decision looked to him like "a
ear case of discrimination against :,
Re cooperatives' and that 1T is APP ,
aren't that Peter Carey president Of
ne board Of trade) and his asso-
ateS are getting DESPERATE"