Evening star., 1932-03-08
FIRST FREE,W WHEAT .
ASSIGNMENT MADE
President Approves Sending
5000, 600 Bushels Into South
Dakota Drought Area.
BY the Associated Press.

bushels Of Government wheat. destined
for the South Dakota drough. area
This is the first application for wheat
under the legislation signed yesterday
by the President making 100000
bushels available for relief
Within a few hours IA carloads Of
wheat will leave Omaha for the drought
section.
The wheat will be milled into -four
and then distributed to local relief
agencies.
Red Cross representatives In Chicago
are arranging for milling.
Conditions for Distribution.
Chairman Payne Of the Red Cross
said local agencies may have the nour
under the following conditions:
/. Applications will be made to the
Red Cross chapter upon requls.tlon
forms furnished by 1t.
2 Applications will state approximate
number of families the agency Is no"
feeding or expects to feed and tne eS
timated amount Of -four which II Will
require. ~.
). The agency will agree to use the
Corporation.
fiour in accordance with the law.
AS the wheat is needed, tne REQ
Cross will apply to President Hoover
for his approval before the grain Is
obtained from the Grain Sterilization
Preparing List Of Counties.
The Agriculture Department Is pre-
nsrinp a list of counties in the north
west eligible to receive aid through
Red Cross organizations functloning
there.
The first actual shipment will be
two cars each to these seven South
Dakota cities: Platte, Plsnkinton,
Armour, Yankton, washington Springs,
Rapid City and Mitchell.
Most of this wheat will be cracked
locally for livestock food, but part OF 1t
will be milled into -four for family
feeding.
The Chicagos 81 Northwestern and
the Chicago, Milwaukee 81 st. Paul
railroads are handling the IA cars With
out freight charges. The Red Cross
is consulting with railroads and rep
resentatives of the grain stabillzation
corporation so that wheat can be turned
into -four at the point nearest the need
to effect speedier distribution.
Forty million bushels Of wheat are
available for distribution.
The wheat comes from the Farm
Board stocks. The measure authorizing
the donation was signed late yesterday
Prior to signing the bill, however, Mr..
Hoover held conferences with Attorney
General Mitchell and John Barton
Payne, chairman of the Red Cross.
Baking Is Opposed.
Payne raised strenuous objection
to a clause of the measure permitting
the Red Cross to bake the grain into
bread after milling. He asserted cate
gorically his organization would not
undertake this and suggested the Presi-
dent might want a legal ruling upon 1t.
A few minutes later Mitchell was
summoned, but neither he nor the
President would comment upon either
the subject or result Of their confer
ence The measure was signed Just
after the Attorney General left.
Here is the section to which Payne
objected:
In cities of over $4,000 population
the American National Red Cross or
any other organization designated by It
may have the flour. baked into bread,
provided that no part Of the expense
incident to such baking or processing
shall be paid out of said wheat or -four
and no part of the expense shall be
borne by the United States or the Fed
eral Farm Board
AS Payne interpreted the section, 1t
would require the Red Cross to pay for
the baking unless this could be obtained
gratis from bakeries. In his testimony
before congressional committees, the
Red Cross head indicated willingness
to undertake distribution provided his
organization was freed of the expense.
He indicated satisfaction with the body
of the measure, which he construed as
permitting the Red Cross to have the
wheat milled into flour and delivered
to the needy-with the cost to come out
Of the wheat"
President Acts Quickly.
The President acted with considerable
Swiftness after the free wheat bill
reached his desk at mid-afternoon. It
was pushed through Congress late last
week by overwhelming ma iorities in
both House and Senate, and was en-
larged to provide at least 100000
bushels of the total as feed for live
stock
In response TO questions whether he
considered contribution of wheat TO the
needy as different from dole" Payne
asserted that so far as the Red Cross
was concerned there was the greatest
difference in the world"
He added:
Whenever the Red Cross has a great
work to do 1t must ask the country for
money. If we ask the Government for
it at a time like this. the usual con-
tributors will say in future cases that
we should go TO the same source"
Secretary HYDE and Chairman Stone
of the Farm Board were present with
Payne yesterday afternoon during his
uy-vI.
had no comment upon the bill. but
Stone reported the wheat was ready for
to the Red Cross whenever
the President gave the word.
Survey Already Made.
Stone said a survey already had been
made in various sections of the coun-
try where the stabilization wheat Is
stored and that 1t could be sent from
these scattered depots Immediately.
At the same time, Chairman Stone
said the Farm Board is certain that its
credit will not be impaired with the
40 900, 900 bushels Of its wheat given to
the needy.
While the 10000, 900 required to
discharge loans and obligations against
this wheat would dig deep into It's $780,
900 900 balance. he did not believe
banks would call other loans which fap
due this Spring.
The board obtained $4,000, 900 from
q group of New York banks to aid
financing StabiliZation operations,
pledging the wheat as security.
Stone understands the Grain Stabtl-
Zation Corporation already has ar
ranged for renewal of these loans. And
II not, he said. ne is certain other
banks will handle them.
IF the banks do call the loans" he
said. eve have other resources and we