Evening star., 1955-03-25

anu It's pdTeIlJ OIgdnlZdLlCN. Gne
Commodity Sterilization Serv-
ice. bore the brunt of the COM
mittee's wrath. Mr.. Benson is
chairman of the Board of Di-
rectors of the CCC. which han
dies the Government farm price
support program.
Sees WOrsening Outlook
Noting a steady drop IN farm
income and a steady rise in Ear n
costs in recent years, the COM
mittee said 1.-The outlook is for
still further declines in net farm
income in 1885"
Since 1945, it said, the farm
ers' share of the consumers food
dollar has dropped from 81 to
43 per cent and prospects are
that this trend will continue"
In the South particularly, it
added, the situation is "deplor-
able" because of Government
curtailment of cotton acreage.
More than $1,000 farm facilities
IN the South "have been put off
their farms. with no homes and
limited employment possibilities.
the committee said. and 10000
farm families with gross cash
income of ST 900 or less annually
will suffer further losses of $l00
/ 0r moro fLic voor
Raps Failure to Sell Surplus
The committee accused the CCC
| of having largely overlooked" its
responsibility to protect the Gov
ernment's investment in food
surpluses.
The CCC has invested more
than 81 billion to support farm
prices. the committee said, but
up to February of this year near
ly $3.7 billion worth of COM
modities had never been offered
for sale abroad at competitive
prices.
There is reason to believe
that such products could be sold
in world markets through normal
channels if an effort were made
to do so on a competitive basis"
the committee commented.
Many countries are ready and
anxious to buy, the committee
said, but do not because the CCC
makes the American support
price substantially the offering
price in world markets.
The committee said the CCC
has authority to sell in world
trade "at such price as it might
take to move these commodi-
| ties"
But the agency has no sales
policy or sales program worthy
of the name" it added.
Orders Sales and Cutback
1t directed the CCC to get a
sales manager at once and to
develop program under which
surplus commodities will be sold
for the best price the Govern
ment can get.
The committee directed the |
CCC to reduce it's storage costs |
at least 20 per cent during the |
coming year, eventually holding
only one years security reserve.
The SurpluSeS held by the CCC |
were acquired under price-sup-
port laws adopted by Congress.
Mr.. Benson has contended that |
past price-support laws were un- |
realistic and encouraged surplus
production.
Sees Politics Prevailing
The committee report con-
tinued:
Evidently, with the Depart
ment of Agriculture, a branch of |
the executive department, polit-
ical and other considerations |
predominant to the point of |
preventing dCLlOl.
Proper actions by the cor
poration are made subservient to
host of other considerations,
many OF which are unsound. |
These actions by the Secretary of |
Agriculture and others about him
appear to be part of a plan to |
use CCC costs and losses to
support their determined efforts
to change the price-support pro-
gram"
The committee said its investi- |
gators found numerous exam
pies of administrative def1cien-
cies. excessive operating costs, |
lack of personnel training and |
supervision, and inadequate sales
policies" as well as questionable
practices" in the Commodity |
Sterilization Service.
Evidence was developed" it |
said. indicating that the same
operating negligence and admin
istrative responsibility resulting
in the widespread grain scandals
revealed :. "a few years ago are
still in existence. Information
was also presented indicating ,
that grain bins have been re-
Gently purchased from some of
the same concerns which de-
livered poor quality structures
under similar contracts on previ-
GUS occasions"
Acts on Various Funds
The committee ordered re-
stored a cut proposed by the
administration of $18.359.447 in
action" programs, which include
disease and pest control, soil
conservation operations, flood
prevention, and the school lunch
program.
1t approved lending authority
of $160 million as requested for
the Rural Identification Admin
istration and SIS million for
rural telephone installations. The
Farmers Home Administration
was given $153 million, a boost
of $l1 million, in loan authori-
zation.
For regular departmental ac-
tivities. the committee voted the