The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-10-09
FARM CREDIT
OFFICIAL RAPS
NEWS REPORT
Says New Finance System
Is Due TO Cooperation
and Not Pressure.
BIZ Times Special

/ BY 1tmeS Special
CHICAGO, Oct. 9.-Garbled re-
ports in Chicago newspapers con-
corning the refunding Of the fifteen
million dollar Indebtedness Of Farm
ers National Grain Corporation to
the farm credit administration drew
a sharp reply today from C. E. Huff,
president of the national grain CO.
operative.
Washington dispatches, as quot
ed" said Mr.. Huff, announced that
under pressure from the farm credit
administration the national grain
cooperative had agreed to refund
its debt at interest rates of and
Az per cent as compared to Is of
per cent in the agreement made
with the federal farm board.
ALSO it had severely reduced the
salaries of its executive officials and
had submitted to complete DONNA
ton of it's affairs by the federal
government. All of these interpre-
tations of the new funding agree
ment misrepresent the facts.
Meet Ideas of Morgenthau
1.-THE new financing arrangements
represent the results of an effort
on the part of the grain corporation
to meet the ideas of Governor Nor
genthau of the Farm Credit Adj
ministration, that co-operatives
should compete with private bust
ness as to interest rates, as well as
to all other factors, and do not re-
suit from pressure.
THE present note of the corpora
ton in an amount somewhat over
$4,000,0O0 and due May 81, 1884, is
Cancelled under the new arrange
ment. There will be no heavy ma
turtles on the capital obligation
until 1914.
Significant in the new agreement
is the definite commitment on the
part of the Farm Credit Admins
tration to lend the corporation such
additional funds as will be made
necessary if there is any consider
able advance in grain prices.
Utilize Present Capital
"This arrangement will enable the
corporation to utilize fully it's pres
ent capital, quite part of which
it has necessarily held in reserve
heretofore against the possibility Of
higher prices.
THE new agreement strengthens
the position of the grain corpora
ton and broadens it's opportunities.
The provision that the general
manager and the business policies
of the corporation must be salts
factory to the federal govern
ment has been in effect from our
first relationship with the federal
farm board, and is unchanged in
effect in the new agreement.
This provision does not imply
that the affairs of the corporation
will be directed from Washington
We have had no difficulties under it
in the past and anticipate none in
the future.
Directors Reduce Salaries
Economies in operation always
have been matter of concern to
the corporation board OF directors,
and the salary reductions presently
in effect were largely accomplished
by action of the board prior to
March 4, 1888.
Mr.. Huff said the new agreement
had the full approval of all Of the
directors before its acceptance. He
pointed to his recent reelection as
president of the corporation for the
fourth consecutive time, without OPP
position, as indicating the unity of
the directors and their approval of
the manner in which the policies
which they have adopted have been
executed.
He stated it as his purpose to
carry forward the program of the
corporation, as outlined by it's board
of directors, through the present
fiscal wear