Evening star., 1942-10-25
THE SUNDAY STAR, WASHING TON, D. c. OCTOBER 25 1912
Statutes 10 Project
arm Prices Ignored,
Senator'S Charge
Agriculture Committee
To Question OfficioIs on
Complaints Tomorrow
BY the Assocjated Press.

BY the Associated Press.
The Senate Agriculture Com
mittee yesterday summoned the
top command of the administra-
tons economic Stabilization pro-
gram to appear tomorrow and
answer complaints that statu-
tory provisions to protect farm
prices were being ignored.
The committee called Stabiliza-
ton Director Byrnes, Price Admin
istrator Henderson and Secretary of
Agriculture Wickard to testify after
Senator Reed, Republican, Of Kan
sas voiced strenuous complaints
against policies being pursued. Other
committee members joined in Sen
ator Reeds protest.
Farm price ceilings being estab-
lished by the price administrator
under the Presidents executive Or
der, Senator Reed told the commit
tee, "are contrary to the plain
provision OF the law"
The act stipulated that farm
price ceilings should not be set
below parity or below the highest
levels prevailing between January
l and September IS, whichever was
higher, and that they take account
of any increases in farm labor costs
since January l.
"ThOroughly Outraged"
Declaring that he was thoroughly
outraged by the lack of faith" in
the administration of the program,
Senator Reed said he was aware the
dictatorship idea had made a lot
OF progress, but III be damned if I
thought it had progressed to the
point where the plain language Of
law passed by Congress could
be ignored"
Chairman Smith commented, You
remember what Bismarck said-'You
can pass the laws, but let me ad-
minister them, and Ill fix YOU"
Senator Brewster, Republican, of
Maine, complained that the price
Of Maine potatoes had been frozen
at 65 per cent of parity and farmers
were being forced to sell because
Of lack OF storage facilities.
We of the minority he said
were under the illusion that a law
was a law"
Senator Reed said he had sought
to obtain some modification of the
farm price sterilization order from
Mr.. Byrnes but that the director
maintained that the President had
discretionary authority under the
act for the steps taken. Senator
Reed contended, however, that the
Presidents discretionary authority
was limited by the act itself in
regard to farm prices.
Attacks Wheat Release Plan.
Senator Reed also attacked an.
nounced plans to induce farmers tc
liquidate their wheat loans which
he said involved a subsidy, al.
though no such subsidy has beer
authorized by Congress-
AT the present market" he added
approximately 20 to Is cents Del
bushel loss Subsidy would be in.
volved if the proposed release plar
were in effect, plus whatever bonus
might be necessary to induce the
farmers to redeem. 1t is estimated
that 450,00000O bushels will be
placed under loan this year.
The expensive subsidy now
planned would be ostensiblv sub
sldy to the farmer-actually j. would
be a subsidy to protect r1;llers
s@ain1t rice soueezes. Onl" : smp \
traction y'ou'i inure to - l,~neft
OF the feimcr. and c~l~ to tlose
havln" T-?e2t under lccN.
To buy goods de!ibcra ely at one
price and sell item back at a lower
price, as is being done with SOW
beans and coffee. is subsidy in
perversion of the purpose of the
Commodity Credit corporation
In the same way. to reduce loans
to the Government and forgive the
accumulated charges as a form OF
subsidy is perversion."