Evening star., 1952-03-28

By Agriculture Hif
By Senate Republican,
Republican Senators today crit
icized the Agriculture Department
Tor lax controls over the farm stor-
age program.
Some also hit the department
for failing to prosecute more per-
sons who embezzle Government
commodities.
The Republicans spoke out as
the Senate Agriculture Committee
turned up detailed evidence OF
irregularities in the farm storage
program in South Dakota.
The Senators heard testimony
that there were so many Short
ages that high-ranking Agri-
culture Department official rec
commended against criminal prose
cutions for fear of hurting the
farm program.
Senator Aiken, Republican, OF
Vermont said "This is a standing
invitation for people to see how
much they can get away with a
Senator Mundt. Republican OF
South Dakota and Senator Thye,
Republican, of Minnesota, both
called for tighter control of the
storage program.
Some Pocket Money.
The Agriculture Department buys
commodities or offers loans against
the products and puts them in
storage to keep farm prices up
Some persons storing the COM
modities, however, have sold them
and pocketed the money. Most
persons turning UP short of these
commodities have escaped prose-
cution, if they have been able to
make up any financial loss the
Government suffered.
The Agriculture Department has
heSitated to acknowledge this
policy, but the committee yester-
day received direct evidence that
at least the departments regional
Office in Minneapolis went easy
on violatorS.
Committee Counsel Paul Cotter
introduced a letter which James
A. Cole, director of the Mime
apolis commodity Office, write to
the Agriculture Departments at
torney in Chicago April II, 1851.
Mr.. Coles letter asked for civil
action against farmer who failed
to pay of his storage loan or sur
render the commodities, despite
five Cummings from the depart
ment.
Text Of Letter.
Mr.. Cole wrote:
Although it appears that there
has been conversion (of Govern
ment commodities to private use)
and that conversion continues, we
prefer that the matter be ham
died as a civil case unless your
Office wishes to make a recon-
mendation for criminal action.
There are so many cases of
conversion of mortgaged collateral
(commoditieS) in our area that
we feel it not only impractical but
actually damaging to the farm
programs to bring criminal action
in every case of known conver-
sion.
I'VE hope you can proceed to
get the file into the. hands Of the
United States district attorney
at an early date, inasmuch as we
have been advised that this is the
only way to make the borrower
understand that the Commodity
Credit Corporation must be
paid" -sa&
Mr.. Cole. in his oral testimony,
admitted only that his Minneap-
oils region had some shortage
cases. Under persistent question
ing from Committee Chairman
Ellender, Mr.. Cole said a strong
central enforcement policy would
help prevent these shortages.
Request Brought Action.
Mr.. Cole said his Office never
sought court action in a case
unless a county committee and
State committee of the Agri-
culture Departments Production
and Marketing Administration
asked for legal moves.
The county committeeman are
part-time Agriculture Department
workers elected by local farmers
These committeeman exercise vast
control over distribution of money
and other benefits the Agricul-
ture Department offers farmers
The committee heard yester-
day about a breakdown of this
system in Edmunds County. S.
Oak. There, the three county
committeeman got Government
loans and agreed not to check up
on each other. The chairman
of the county committee turned
up short of $40, 600 worth of COM
modities. This was discovered by
inspectors from the State head
quarters.
County committeeman may
apply for loans as private farmers.
Then, acting as county committee
men, they may approve the loans
to themselves. If any shortages
develop, they are supposed to re-
port themSelvse to State head
quarters.
For their work as committee
men, they get SO a day from the
Agriculture Department.
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