Evening star., 1936-09-22
CROP INSURANCE
GROUP IN SESSION
Black Calls Special Commit.
tee Named by Roosevelt to
Plan Legislation.
ey the Associated Press.

ey the Associated Press
The special committee selected by
President Roosevelt to work out crop
insurance plan for suggestion to Con-
sress was called together today. despite
the fact Secretary Wallace. chairman
of the group, was at Hyde Park. sum-
inoned last night by Mr. Roosevelt.
A. G. Black. former Agricultural Ad-
justment Administration official and
now chief of the Bureau of Agricul-
tural Economics. called the special
committee together after an assistant
to Wallace had announced earlier the
initial meeting would be delayed until
the Secretary's return.
To Call Farm Leaders.
A. A. A. spokesmen said one of the
first moves by the committee would
be TO call representative farm leaders
TO Washington for general confer
ence on crop insurance. They said
leaders Of national farm .organiza-
tions as we'll as leaders in past Gov
ernment farm programs would be in
Nted.
All members of the committee ex-
eept Wallace were reported at the
closed session in Blacks Office at the
Agriculture Department. These in
cluded H. r. Tollev, A. A. A. head As
sistant Secretary Taylor of the Treas
nry and Assistant Secretary Draper Of
the Commerce Department.
The first thing to do" Wallace told
q press conference late yesterday
will be to determine reserves neces-
sary for insurance-or the maximum
reserve stock OF wheat. cotton or corn
needed to meet the country's demands
from year to year.
After that. the Secretary said, some
form of production control" would
have to be considered.
Program Worked Out.
Agriculture Department officials
have been working on an insurance
plan under which both premiums and
insurance would be paid in kind. Ir
good crop years. farmer would turn
. certain portion OF his crop over
70 the Government. which would hold
the commodity in reserve When crops
failed. the farmer would receive or
insurance payment In the form ol
the commodity.
At his press conference, Wallace
SAID President Roosevelt's action Sun
dsy in setting up the Crop Insurance
Committee WAS not timed to 'steal
the show" from Gov. ALI NJ. Landon
Wallace asserted ne did not know
that Landon planned to discuss crop
insurance in a speech tonight at De,
Noines.
The Agriculture Secretary said il
would be up to the committee to de-
termine how much wheat, cotton ano
corn should be held In reserve tc
protect farmers and consumers from
drought years.
However. he said the i2o. 900 900.
bushel carry-over Of wheat regarded
as sufficient during the decade Of the
1e2os' probably would be considered
too small now.
Too Big for Private Firms.
The crop insurance plan was tot
big thing for private companies.
Wallace asserted. because they mus
plan to make a profit.
The Government could .xe q los
and still be ahead" he contendet
because crop insurance would Gu
the costs OF relief in drought areas
The Government has . responsibilit
for people in smitten areas anyway
Questioned about methods OF de
veloping the ever normal granar!
plan" Wallace said it could be don,
either by paying premiums and lossel
in commodities or by making loan
on ware housed grain and cotton.
Technical" problems OF storini
these commodities and transporting
them will be worked out by the com.
mittee, he added.
The Secretary said corn could b
stored without damage for ''probabl,
Ave years" and wheat and cotton fol
many years under modern varehous,
conditions
However, he said 1t might not b.
necessary to store the identical farm
product year after year because new
crops could be exchanged for the
stored stocks.