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road property only, no value being assigned the prosecution of those guilty had been ments can be made to reinsert in its approto waterline facilities.
severely handicapped by the refusal of priation acts the language customarily used For the fixed assets which include 22 tugthe Treasury Department to recognize
in them before the passage of Public Law boats, 268 barges (82 of which are in whole
79 to authorize the Secret Service to perform or in part uninsurable), the railroad (18 the right of the Department of Justice
its traditional functions. miles in length), docks, terminal facilities, to investigate or prosecute employees of
The Department of Justice prefers to have etc., we are receiving $9 million, payable over the Treasury Department without first
this entire problem disposed of by legislaa 10-year period. The Government retains obtaining the consent of the Secretary of
tive action of the Congress and fully apthe present net working capital totaling ap- the Treasury. That consent was refused. proves S. 2308 for that purpose. It is now proximately $2,700,000, and the buyer con
To prevent a recurrence of such arbi willing to have any action on this bill held tracts to provide new working capital in the
trary action by a future Cabinet officer, over by the Congress until its next session amount of $1 million. 20 Senators joined with me in the intro
and to try, during the interval, by agreeThe Government takes a mortgage on all
ment with the Treasury Department to have the property and equipment and there is duction of S. 2308, and hearings were
a working understanding that will fully profurther provision for a continuation of sub- scheduled.
vide for the proper functioning of the FBI in stantially the services offered by Inland Yesterday the Attorney General sug
investigating any case of suspected criminal Waterways Corporation.
gested that the bill be held over until misconduct on the part of Treasury personIn connection with the services, it is im the next session, on the ground that the nel. portant to note that there are adequate de- Department of Justice and the Treasury The Treasury Department believes that, fault provisions enforceable in case this Department might be able to compose
within the broad agreement of principle that service is not maintained. These default a slight difference of opinion regarding
exists between the two Departments conprovisions involve a penalty of $2,500 for each trip not made (and the number we call the application of the law.
cerning the proper function of the FBI in With his
investigating any such case of suspected upon the purchaser to make is spelled out letter the Attorney General enclosed a
criminal misconduct on the part of Treasury in the contract). If 50 percent of the trips memorandum, outlining the present
memorandum, outlining the present personnel, the exact details can best be are not made, then there is total default agreement between the two departments, worked out on a case by case basis, and that under terms of the contract.
and also reaffirming their position, that it might be unwise to attempt to define the There is further provision that less than
while agreeing to the postponement, they relationships by statute. barge load service be provided and penalties
still thought the bill should be considered Accordingly, the Department of Justice for failure to provide it. This is of tremendous importance to small shippers in at the next session of Congress.
and the Treasury Department are placing the area served by the lines.
I was very much interested in having
in effect immediately a working agreement the bill enacted at this session. How
concerning this matter with the underAdditionally, security for the performance of the contract is provided by provisions as
standing that consideration will be given ever, in light of the apparent effort of
during the next session of the Congress as to the disposal of net income after taxes. the two Departments to work out an
to whether and to what extent legislation This may be used-in the order named-to
agreement, I shall defer to their request may be necessary or desirable. The Treaskeep up working capital, make payments on
to withhold consideration of the bill ury Department and the Department of the purchase contract, on such loans as may
Justice are therefore recommending the be outstanding and on rehabilitation of the until the next session of the Congress. property and facilities, and it is further
I ask unanimous consent to have postponement of consideration of S. 2308 dur
ing this session of the Congress. The Deprovided that no dividends shall be paid printed at this point in the RECORD the until the contract payments have been fully letter of the Attorney General, dated
partment of Justice expressly reserves the
position that legislative action as provided in completed.
July 23, 1953, together with the memoThis has been a difficult contract to work randum attached thereto.
this bill should be enacted by the next Con
gress. out largely because of the statutory provi
There being no objection, the letter sions about the continuation of service. Obligations under this provision have handi- and memorandum were ordered to be
ORDER FOR CONSIDERATION OF capped the sale heretofore, but the pur- printed in the RECORD, as follows:
THE CALENDAR TOMORROW chaser, as outlined above, has by the terms OFFICE OF THE ATTORNEY GENERAL, of the contract indicated his readiness to
Washington, D. C., July 23, 1953. Mr. KNOWLAND. Mr. President, I carry on the service and give the shippers Hon. JOHN J. WILLIAMS,
ask unanimous consent that on tomorwho have used the line the same facilities United States Senate,
row the calendar be called from the bewhich have been offered by the Government
Washington, D. C.
ginning for the consideration of bills to up to this time.
MY DEAR SENATOR: Attached is a joint In addition to the approval of the Presi- statement of the Treasury Department and
which there is no objection. dent, the sale has also been reviewed and ap- the Department of Justice suggesting that
The PRESIDING OFFICER. Without proved in the usual manner by the Bureau consideration of S. 2308 be postponed until
objection, it is so ordered. of the Budget, the Department of Justice, the next session of the Congress. If this is
Mr. KNOWLAND. For the informaand other agencies which have a collateral satisfactory to you, will you see that it is tion of the Senate, we would not coninterest however remote.
submitted to Senator LANGER, chairman of template, in calling the calendar, going In summary we believe those who use the
the Senate Judiciary Committee, and made beyond the last number shown on the line will be well taken care of by the pura part of the record.
calendar. We would begin at the beginchaser and we think the Government is well Thanking you in advance, I am, protected and well out of the business.
ning, starting with Order No. 19, and
Sincerely yours, Trusting the above will be of interest
run through Order No. 632.
HERBERT BROWNELL, Jr., and helpful to you.
I wish to thank the Senate. I think Most sincerely yours,
I have exceeded my time approximately SINCLAIR WEEKS,
Secretary of the Treasury and the Attorney ACTIVITIES OF ADVISORY COUNCIL
TO THE SENATE COMMITTEE ON to effectuate the desire of both of them that, EMPLOYEES BY THE DEPART- in any case where reasonable suspicion might
POST OFFICE AND CIVIL SERVICE MENT OF JUSTICE
develop that any Treasury employee was Mr. CARLSON. Mr. President, I ask Mr. WILLIAMS. Mr. President, on guilty of crimes such as receipt of a bribe, unanimous consent that I may speak for July 7, 1953, I introduced Senate bill nal investigation would be made by the Fed
not to exceed 5 minutes. 2308, the purpose of which was to spell eral Bureau of Investigation. The instruc
The PRESIDING OFFICER. Is there out affirmatively that the Department of tions required to accomplish this result have
objection to the request of the Senator Justice would have the right and respon- been agreed upon and are awaiting issuance
from Kansas? The Chair hears none, sibility to investigate alleged criminal by both Departments.
and the Senator may proceed. violations on the part of any Govern One of the questions discussed was Mr. CARLSON. Mr. President, much ment employee in any Government whether legislation was required for this
concern and a great deal of interest is agency. I emphasized, when I intro- purpose and whether Public Law 79 passed
currently being expressed regarding the duced the bill, that I did not intend tion of the Secret Service in any way interby the 82d Congress relating to the jurisdic
activities of the Advisory Council to the to cast any reflection on the integrity fered with its accomplishment. The Departof the heads of any of these agencies, ment of Justice is advised that the Treasury fered with its accomplishment. The Depart. Senate Post Office and Civil Service Com
mittee on postal matters appointed April but I pointed out how, during the past is agreeable to the repeal of the provision of
is agreeable to the repeal of the provision of 1, 1953, pursuant to Senate Resolution 2 years, the exposure of corruption and Public Law 79 in question as soon as arrange
Public Law 79 in question as soon as arrange- 49, approved by the Senate March 6, 1953.
Senate Resolution 49, which is similar education. Does the value to the Nation of tary of Agriculture Benson, urging him to the language contained in the postal- this education use justify a decision that a
to do everything possible to provide rate bill of the 82d Congress, which auportion of this cost should be regarded as
storage. thorized the appointment of a joint com
Government service to its citizens as is the
There being no objection, the letter mittee and received the unanimous en
was ordered to be printed in the RECORD, dorsement of both Houses of Congress, We are also negotiating for a study to as follows: provides that the Senate Committee on be made by the National Industrial Con
JULY 21, 1953. Post Office and Civil Service report on ference Board to explore the relationship Hon. EZRA TAFT BENSON, January 31, 1954, on the results of the of the Post Office Department to our na Secretary of Agriculture, studies and recommendations of this tional economic structure, particularly
Department of Agriculture,
DEAR MR. SERCETARY: I am greatly congroup. However, because of the interest its contribution to American business.
cerned about the adequacy of storage faciliin the activities of this Advisory Council, In addition the committee has been able
ties for the coming wheat harvest in MonI desire to now give a short statement in to secure the services of one of the out
tana. I have a number of communications the nature of an interim progress report standing cost accounting firms of this
from growers telling me the situation looks in an attempt to outline some of the Nation to assist it in its accounting very serious, that there will be a considerathings this group has done and some of surveys.
ble shortage of space which might be the objectives during the next 6 months.
For the first time in many years all of
worsened if commercial elevators hold space On April 1, 1953, I appointed a group the organizations representing the post
for their own purchases, or if the railroads
are unable to move wheat either as a result of 10 outstanding citizens comprised of office employees have been given the op
of shortage of cars or blocked terminal facilindustrial, labor, and civic leaders, and portunity to sit down around the table
ities. They advise me that they are unaware widely known representative large users and pool their resources in one common
of anything being done in the area to meet of the various mail services with a vast objective, that of improving the effi the situation. amount of valuable experience to assist ciency of the Post Office Department at As you know, the intent of Congress and the Senate committee in this very com less cost to the taxpayer. Many meet of the price support laws is nullified if farm
ers are forced to dispose of their grain below plicated problem of trying to improve the ings of this personnel group have been efficiency and the service of the Post held and much progress made. I am support levels for lack of space to store their
crop. I understand that there is already a Office Department to the American pub- confident from this reservoir of knowl
record spread between cash wheat prices and lic and to reduce the deficit that has edge gained through many active years support in many areas. been steadily mounting in recent years. of postal service and representing the
This is written to urge your Department, Many meetings of this Advisory Council postal employee before the committees if it has not already done so, to take every have been held in Washington and a of Congress that recommendations will possible step to assure availability of adenumber of subcouncils have been estab- be made which will result in far greater quate storage for the northern wheat harvest. lished in an attempt to break the study efficiency and economy to the Depart. I understand that you have some bins on
order, but they are for corn. I urge that as down into different segments considered ment and to the people of this Nation.
many as necessary be diverted and erected important in arriving at a solution in Mr. President, I feel confident that
immediately in the northern wheat States, the short period of time allotted to the when the work of this study group has
including my own, where storage shortage committee to complete its study.
been completed there will be made rec is likely. One of the subgroups composed of out. ommendations which, if approved, will I also urge that steps be taken now to asstanding businessmen is currently presave the Post Office Department and the sure the construction of adequate, perma
nent elevator facilities to handle our crops, paring recommendations to be presented taxpayers of the Nation several hundred
Wheat farmers tell me there is major need through the Senate committee which, if million dollars. I am firmly convinced adopted, might well save approximately that we are proceeding along the correct for elevator space, preferably on rail sidings,
where wheat can be efficiently handled, kept $100 million annually in transportation path.
in condition, and moved to market regardcosts alone. Another subgroup is busily
less of storms which sometimes make haulengaged in a study of the cost ascertain INADEQUACY OF GRAIN STORAGE ing over farm roads impossible for weeks and ment system now being used by the Post
even months at a time in the northern areas. Office Department. As most Members of
While it is too late to provide such permathis body well know, when the Senate
Mr. MURRAY. Mr. President, I ask nent type storage for the current harvest has had to consider postal-rate increases unanimous consent that I may speak for season, it is not too soon to start work to see
that there are adequate facilities in 1954. in the past many charges have been made 10 minutes on the subject of grain stor
Sincerely yours, concerning the validity of the cost ascer
niveas siater senator. tainment system when used for rate
United States Senator. objection? The Chair hears none, and making purposes. One of the things we
Mr. MURRAY. Mr. President, I have hope to do is to establish a postal rate- the Senator from Montana may proceed. making formula which will be more
Mr. MURRAY. Mr. President, earlier been in communication with farmers and equitable and acceptable to all mail
this week I wrote the Secretary of Agri- elevator men in the area since the letter users and which may be used by the
culture urging him to take immediate was dispatched. They tell me they have Congress as a sound basis when consid
action to prepare for storing the wheat been waiting days for some relief, but harvest in the northern States.
there are no signs either of the Comering future proposals in mail rates.
An extremely critical situation exists modity Credit Corporation moving its When the Post Office Department was in the area, although the harvest has not grain out of the terminals or of providing established, Congress delegated itself the authority to set and adjust rates. This yet started. I am advised that last year's new storage facilities to relieve the disproblem has become so complicated that
wheat is being delivered to Commodity tress that now appears inevitable when the Congress must now establish the
Credit Corporation from farm bins, in the harvest starts.
preparation for the harvest, and that necessary machinery to guide it in es
Sometime ago the Montana Commistablishing such rates.
elevators are right now plugged all the sion of Agriculture made an effort to get
way from country points to the big ter- responsible agencies at work on the storThe Advisory Council has initiated,
minals. with the approval of the Senate Com
The Commodity Credit Cor age emergency. He called a meeting at mittee on Rules and Administration, a
poration is not moving its wheat out of Helena of Federal officials, the grain contract with the National Education
terminals to other areas or into export. trade, and railroads to consider what Association for a special study to ascer
An embargo against shipments from might be done. tain the value to the Nation of the nu
country elevators to many terminals is I ask unanimous consent to have merous educational provisions of the
in effect. The preparation of farm stor- printed at this point in my remarks an United States postal service. This study therefore at a standstill in a tremendous Chronicle relative to this meeting,
age space to receive the 1953 crop is editorial from the Bozeman (Mont.). will proceed on this thesis: area.
There being no objection, the editorial A segment of postal service concerns activities having to do with education and par
The harvest is only 2 to 3 weeks away was ordered to be printed in the RECORD,
as follows: ticularly adult education. Books, magazines, in most of the Northwest areas. newspapers, films handled through the mail,
I ask unanimous consent, Mr. Presi THE STATE'S WHEAT STORAGE PROBLEM correspondence instruction, and mail of all dent, to have printed at this point in
Heavy wheat crops, such as that presently classes has to do in the broadest way with the RECORD the text of my letter to Secre- in prospect in Montana, cause transportation
and storage problems and irritations that stubbornly resist solutions at the time. This matter was discussed in Helena at a meeting called by Albert H. Kruse, State commissioner of agriculture. Mr. Kruse invited in Federal officials and representatives of the grain trade and railroads to consider what could be done if the harvest this year should exceed the facilities now available to handle it.
The consensus was that the only practical answer was for the farmers themselves to provide the additional storage on their farms. These experts said that commercial storage at terminals is already being clogged as wheat pours in from areas already harvesting and as some of the carryover from last year moves to market. As to the matter of providing the necessary number of cars to move the crop · out of Montana elevators to the terminals, railroad men contended that it does no good to get cars if there is no place to unload them. Also in the picture is the Federal price support situation and the effects it will have on the marketing of the grain.
As a final desperate alternative it was suggested at the Helena gathering that farmers could dump their wheat on the ground. It was said that, contrary to the prevailing opinion, dumping grain on the ground does no substantial damage to the cereal if the weather is not too wet. This is a point on which we do not feel competent to comment, except to say that dumping wheat on the ground has been generally considered an unsafe procedure.
Conclusions at the Helena conference might be summed up in the assertion that an abnormal wheat crop is like water backing up behind a dam. For obvious reasons, commercial facilities do not exceed much more than normal demands, and when an emergency comes and the elevators are filled to the brim, the answer has to be sought elsewhere. On their part, the railroads do not feel justified in having a reserve of grain cars that normally would be idle.
The storage situation which may confront Montana this year is not novel. It has long been recognized that farm storage is a desirable solution. But the farmer can hardly be blamed if he objects being not only the one who grows the wheat but also the one expected to keep the grain, free from spoilage or deterioration, until the grain trade is able to absorb it. And yet whether the farmers like it or not, many of them have recognized for quite a while that is largely up to them.
There was a Federal farm-storage program a few years back which did produce some good results and would have been even more satisfactory if it had not been dragged into politics. This should not be a political issue, for raising grain, be it wheat in Montana or corn in Iowa, is vital in feeding the Nation and some other parts of the world.
Mr. Kruse deserves commendation for acting as he did in anticipation of a not improbable emergency. It is unfortunate that the experts called in to consider the outlook seemed so helpless in proposing a solution other than tossing the problem into the laps of the farmers.
Mr. MURRAY. Mr. President, the important point in the editorial is that the officials attending that meeting offered no solution, except possibly for farmers to dump their grain on the ground.
Department of Agriculture officials took the same position at the Montana meeting they took in a Des Moines, Iowa, storage meeting recently, namely, that "this is the farmers' problem; let them solve it."
I ask unanimous consent to have printed at this point in the RECORD an
account of the Des Moines meeting,
LOANS AVAILABLE which was published in the Des Moines "If we team up and succeed,” Morse said, Register.
"it will be a service to everyone, but first to I also ask unanimous consent to have
the farmers who produce." printed in the RECORD an article about
How to get the program into effect?
Morse said it would take the cooperation the Des Moines meeting, written by a
of farm organizations, the agricultural exstaff correspondent of the Wall Street
tension service, the PMA, bankers, farm Journal.
managers, bin material companies, the press, There being no objection, the articles and radio. were ordered to be printed in the RECORD, Eighty percent loans for constructing new as follows:
storage facilities are available to farmers,
who have 4 years in which to pay off the [From the Des Moines Register of June 3,
loans at 4 percent interest. 1953]
If banks will not make such loans, the CCC UNITED STATES TO QUIT STORING GRAIN— will, Morse said. WOULD LEAVE IT TO FARMERS—PLAN DIS
OFFER FEES CLOSED HERE IN SIX-STATE MEETING (By B. G. Thrailkill)
To encourage farmers to reseal corn on
their own farms, the CCC is offering a storThe Federal Government plans to get out
age fee of 13 cents a bushel for keeping it of the grain-storage business.
another year. That was made known Wednesday by Un During Wednesday's meeting, PMA repreder Secretary of Agriculture True D. Morse
sentatives from the six States, were to give who, with other Government officials, was
reports detailing how much corn there is in Des Moines to consider critical problems and how much storage space is available. connected with corn loans and corn storage.
“We are moving forward on the premise that grain storage should not be run by the [From the Wall Street Journal of June 4, Government,” Morse said.
1953] "It should be stored by farmers on the CORN STORAGE CONFERENCE~MIDWEST'S 65 farm and when it leaves the farm it should MILLION BUSHELS OF 1952 CROP FACE EVICbe handled by commercial people.”
TION, BUT FARMERS ARE LUKEWARM TO PROHow this program will be put into effect POSAL THEY BUILD BINS is the $64 question.
(By John S. Cooper) Iowa, one of the six States represented at
DES the meeting at Hotel Savery, is considered
MOINES, IOWA.—About 65 million the critical State as far as corn storage is
bushels of 1952 crop corn now stored on Midconcerned.
western farms will be homeless this fall BUMPER CROP?
when the new crop comes in unless emer
gency facilities are built either by the farmers Marvin L. McLain, chairman of the Iowa
or by the Government. Production and Marketing Administration This was the conclusion reached yesterday (PMA), reported to Morse that under the
at an emergency conference on storage probbest conditions 42 million bushels of corn
lems of more than 200 farm leaders of 6 can be stored on Iowa farms.
corn-belt States, sponsored by the DepartAn additional 80 million bushels can be
ment of Agriculture. stored in bins and elevators. This leaves 47
About 45 million bushels of the surplus million bushels for which storage space must corn is in Iowa, 15 million in Minnesota and be found this fall.
5 million in South Dakota. This makes a total of some 169 million Under Secretary of Agriculture, True D. bushels, the amount of corn now under loan Morse, suggested to the meeting that it or purchase agreement in Iowa.
would be "good business” if the farmers Another bumper corn crop this year—and themselves built the storage facilities on prospects for it are good-would further their own farms to handle the surplus corn complicate the storage problem.
with the aid of Government 4-year 4 percent It means that officials must provide more loans covering 80 percent of the cost. storage space than ever before has been He warned: “This is not apt to be a temavailable.
porary situation. We have 90 percent of COMMERCIAL ELEVATORS
parity loans scheduled for the 1953 and 1954 Morse said the storage problem will be crops. And I don't see much evidence of taken up with commercial elevator operators either party in Congress lowering this rate Thursday in Omaha, Neb.
very much. The added problem of farm John H. Davis, president of the Commod
mechanization has put farmers in the grain ity Credit Corporation (CCC), and Elwood storage business for good. Chase, special assistant to Davis, will attend
“We have been offered the quick and easy the Omaha meeting. They were with Morse
suggestion that John Davis (president of in Des Moines.
Commodity Credit Corporation) go out and Morse said the storage problem is tremen- buy bins for 50 million or 60 million bushels dously important.
and put them up out here. That would be “The quick and easy suggestion would be
the quick and easy way, with the Treasury more CCC bins,” he said, “but this is not
and all the money of the Federal Government good business for farmers. We shouldn't put behind us. But we don't believe that is the
constructive approach." the Government deeper in the grain business.
He then added: "I fear that if the Gov
ernment must resort to buying bins and "A prosperous Iowa was not build on selling corn. The basis of Iowa's prosperity is
putting them up to store corn, we will have
to look at them in the future as monuments hogs, beef, and poultry. So, corn should be
to the failure of free enterprise. held on the farm where it is used."
The Under Secretary's remarks got a luke. SHOULD BE INTERESTED
warm response from the farm leaders. Be. He added that Nebraska, Missouri, Illinois, fore the session was over even some GovernSouth Dakota, and Minnesota—the other ment Production and Marketing AdminisStates represented at the meeting-would tration officials indicated they thought the have their economics upset if the basis of Government would have to go into the bin income were grain.
building business again to take care of the Morse said every farmer, businessman, surplus grain. banker, and anyone who has a stake in the Howard Hill of the Iowa Farm Bureau State's economy should be interested in Federation told Mr. Morse: “I think your seeing that farm storage is provided.
program is ideal. But I have reservations
that you will be able to persuade farmers find nothing whatever that has been Our farm price-support programs and to do the job. If all this surplus corn is go done to provide one additional bushel the loan programs were designed, among ing to be taken care of in Iowa this year, I of new storage space for wheat.
other things, to make it unnecessary for think you Federal fellows had better be let
Mr. President, it matters little whether farmers to sell their grain at harvestting the orders for bins, and right now. As for Federal bins being new monuments, they the farmer is forced to sell at far below time when markets are lowest. It was more likely will be monuments too high to support level because some elevator man intended that the grain might go into support prices.”
is withholding available space from him, storage and loans taken out on it so the Charles Schumann of the Illinois Agricul- or because the Commodity Credit Cor- farmer could sell it on a more favorable tural Association said that the Government poration has the elevators filled up and market later or let the Government take would have difficulty selling its farm-storage plugged tight with its wheat, a situa- it at the support loan. program to farmers, particularly in cash
The whole purpose of the program is grain areas, where more corn is produced tion which is general in the northwestern wheat area right now.
nullified if storage is not available. The than is needed for livestock feeding. Most of these areas already have facilities for The Department of Agriculture and whole intent of this Congress is defeated storing a year's crop now, and are not inter- the Commodity Credit Corporation have if the storage end of the program is not ested in building more storage, he said. the necessary authority—and they have sustained on an adequate basis.
Joe Rimdahl, Production and Marketing had it during the past 6 months of in We gave the Department of AgriculAdministration county chairman from
activity—to provide storage facilities. ture authority to provide storage beBoone County, Iowa, said:
I have requested in my letter that they cause it is essential to make the farm "Our problem is that most of the Gov
divert as many of the 90 million bushels programs work. ernment corn on farms is sealed by tenants. of grain as possible, and immediately
I am informed the spread between the They don't know whether they will be working on the farm next year and so aren't in erect bins in the wheat area, to meet the wheat price-support level and cash prices clined to put up more storage, and, besides, current crisis. I am advised bins can be is already running from 50 to 75 cents it is the landlords who have all the money supplied and erected in 6 weeks, or less, a bushel. and they don't want to spend any more of if a real effort is made.
When a farmer is unable to find cover it than they have to."
I do not want to take advantage of for his wheat, he has no alternative but Ralph Hanks, State PMA chairman for
the Midwest corn producers. Commod- to sell at what he can get. The DepartNebraska, said his State has a property tax
ity Credit Corporation should order more ment of Agriculture has authorized loans on grain that discourages construction of facilities for carrying over crops from one
bins, and order them at once, to meet for wheat on the ground for 90 days in year to the other.
the corn storage problem. There is some areas, but they are below normal Richard Phillips of Iowa State College re time, if there is no more holding back support, and they do nothing to meet the marked that farmers are concerned with de at the Department of Agriculture.
need for storage-they only postpone the terioration of corn stored on their farms. At the same time, the Department of emergency a little and incur the risk of and are afraid of their corn ending up as No. Agriculture should 'drop its doctrinaire serious damage from wet and humid 5 grade instead of No. 1 or No. 2. opposition to Federal storage and get
weather. George Bradley, CCC director for the Chiunder way an adequate program for per- Eisenhower has by Executive order
I observe in the press that President cago area, who has been assigned the re
manent-type storage for our agriculsponsibility of disposing of old corn in Govtural products.
established a permanent Agricultural ernment-owned bins dating back to 1948, gave a discouraging report about the clear These products can be of incalculable Commission to study farm problems.
We have had an interim committee ing space there for new-crop corn.
value to us as weapons either for defense He told the State PMA officials: “I don't or for peace. It is shameful that they or commission in existence for about believe there is any hope for you for more should be dumped on the ground at great There are at least a dozen commodity
6 months studying farm problems. space from us. The only answer seems to be risk. I would like to see this Nation committees studying special problems. for the Government to build additional
with a great stockpile of wheat, and a space." great stockpile of corn, insuring us and ing areas that we have had about enough
There is a growing belief in the farmMr. Bradley said he is marketing about a million bushels of 4- and 5-year-old corn a
our allies throughout the world against study, enough committees and commisweek through the Chicago office, and that 25
flood, drought, and disaster. I would sions, and that it is time to quit studymillion to 30 million bushels of additional like to see an international food reserve, ing and do something. There is an idea old corn is deteriorating so rapidly that it of which our supplies would be a partprevalent that when men take over should be put on the market as soon as which would become the foundation of national programs they are supposed possible.
freedom from want, one of the essential already to know something about them, "If corn is not deteriorating, there is noth
freedoms if there is to be peace in the not just to be starting to study. ing we can do about moving it out of Goy
world. ernment-owned space. There is no private
It is no consolation to a farmer facing space available and we can't unload it on the
It is shocking that there are men in bankruptcy to be told that a national market as we're committed not to depress these days and times who, confronted commission will hold an autopsy over the the market. Therefore, for the big corn with a storage problem, shrug and say,
corpse of his farming enterprise, that his areas of Illinois and Iowa, I can give no as "Let the farmers worry about it. Let
case will be studied by such commission. surance at all of any extra space this fall."
them dump it on the ground.” Wheat Finally, Mr. MORSE returned to the speak- is the “staff of life,” figuratively and autopsy, why they went broke. What
Farmers will know, without benefit of ers' stand and said: "I don't want to be a party to any Government effort to overequip wasted away, nor should corn or any storage bins, and have Commodity Credit literally. It should not be gambled or
they want is not more study but more any of your farms with unnecessary storage space. If it develops that we still will have other food product.
to get its wheat out of the normal to buy Government bins, then I am going to I sometimes wonder if the present storage facilities of the Northwest wheat vote for buying them.” "team” at the Department of Agricul
farmers. Mr. MURRAY. These stories make it ture realizes the seriousness—the poten
There is a feeling that the Departclear, Mr. President, that the new team tial human tragedies-involved in their
ment should get out fewer questiondecisions, their actions, or their lack of naires and more storage bins. at Agriculture are doctrinaire foes of an
action. adequate Federal storage program. It
Mr. HUMPHREY. Mr. President, I is clear that they are opposed to and
The newspapers reported some time
am glad the Senator from Montana have resisted provision of adequate ago, and some Senators then discussed
[Mr. MURRAY] has brought up a subject space, and that, even when confronted on the floor, the fact that Under Secre
of the most critical importance to farmwith the insistence of farmers on protary Morse and Assistant Secretary
ers of the Midwest at the present time. vision of more adequate
capacity, they Davis; head of commodity, Credit Cor- I concur most emphatically in what he have shaved and trimmed.
poration, felt that it would be good to has said. The Department has now ordered just squeeze some of the farmers off the land
Our storage situation in Minnesota is under 90 million bushels of new storage because there are too many.
serious. We are going to have trouble bin capacity, and that is for corn, not
That is precisely what they will do if taking care of the corn harvest, because wheat. It happens to be the amount they continue to pursue their present adequate preparations have not been estimated to be needed in Iowa alone course on storage, either deliberately or made. this fall, but it is being distributed to for lack of ability and initiative to meet Minnesota has a total Government eight States. Up to this moment, I can the crisis.
storage capacity of about 43 million
bushels at this time. We now have 23 shameful example of neglect, a sad case Chicago the loan rate is $2.53 a bushel and million bushels of corn in Government of “too little, too late."
the market is $2.02. * * * Usually the drop bins—from the 1948 and 1949 crops. I know that career employees in the
occurs after the new crop has started to There are about 43 million bushels of Department of Agriculture endeavored
come in, but this year the decline took place
in advance. A most unusual situation.” 1952 corn under crop loan on the farms to impress the new Secretary with the
(Richard Uhlmann, president, Uhlmann or under purchase agreements. These serious nature of the problem ever since Grain Co., Chicago.) loans run out on July 31; with 60 days' he took over last January.
"Here in the Midwest we are going to have grace to the Government, it means this Yet the administration delayed any a big crop * and our red wheat is proycorn must be moved by September 30. action until harvest was on top of many
ing strictly a dog on the market. Nobody That is only about 2 weeks prior to corn farmers, and their prices were already
wants to buy it and you just can't find any picking. depressed. I have kept close track of
storage around here for loan wheat.” (E. J.
Kazmarek, Illinois Grain Corp., Chicago.) Yet as the situation now stands, we this storage story this year, and I know
“Our crop looks big * * but everyone is have room for taking care of only 20 mil- that the complaint from the Senator concerned about the storage problem. Terlion more bushels in the Government from Montana is well founded. As evi minal elevator space in Ohio suitable for bins. I understand that the Department dence supporting that protest, I should wheat is not estimated over 4 million of Agriculture is hoping to get 10 mil- like to have appear in the RECORD a
bushels, and the millers, who have their lion bushels resealed by farmers, and chronology of just what has taken
own space, won't bother with Government then intends providing about 10 million place—the whole story to date, taken
storage. It naturally is to their interest to bushel capacity in new bins to take care
buy at the depressed market prices, far befrom grain trade reports and official De
low loan.” (Walter See, Ohio Farm Bureau of the rest.
partment of Agriculture press releases. Federation.) I must warn that I do not think that I ask unanimous consent that these re
To these quotes from grain experts, the even last-minute expansion of storage ports in their chronological order, be Journal added: facilities is going to be adequate. I do
I do printed in the RECORD at this point as a "If and when the Commodity Credit not think Minnesota farmers are going part of my remarks.
Corp. specialists are able to solve the aweto reseal 10 million bushels of 1952 crop There being no objection, the matter
inspiring problem in wheat storage logistics,
they face the prospect of an even worse corn. Interest rates on the 1952 crop referred to was ordered to be printed in
problem in corn. loans have been raised from 3 to 312 the RECORD, as follows:
“With Midwest wheat on a semi-distress percent; it will be 4 percent on the 1953
CHRONOLOGY OF THE GRAIN SHORTACE basis, the price decline here has dragged crop. The 13-cent-per-bushel storage
(All dates are in 1953)
down prices all over the national producing fee simply will not cover this higher in
APRIL 24 terest and the possible loss from spoilage.
JUNE 3 “The Department of Agriculture anMinnesota farmers have built some
"United States to quit storing grain-would nounced a 1-year extension of price support additional storage space this summer, loans on corn and oats grown in 1952, having
leave it to farmers-plan disclosed here
in 6-State meeting but it is mainly to meet 1953 crop needs. the effect of resealing that grain in farm bins
“The Federal Government plans to get out Faribault County alone needs 1 mil- to keep it from moving into the crowded
of the grain storage business.” (Des Moines lion bushels additional storage space market.” (Press release.)
Register news story about the Department's This is typical of the southern NOTE.—The resealing did not add a single
storage meeting in that city.) Minnesota counties. bushel to the total storage capacity of the
"I [Under Secretary Morse] fear that if country. Unfortunately, the handwriting is on
the Government must resort to buying bins
MAY 12 the wall as to what will happen under
and putting them up to store corn, we will
"Secretary Benson Asks Farmers and Othsuch circumstances. The corn will be
have to look at them in the future as monu
To Anticipate Wheat Storage Needs." ments to the failure of free enterprise.” dumped on the market. We have seen (Press release.)
(Wall Street Journal story about the same that happen before, and know that price
The announcement stated that "farmers meeting.) support is useless protection without themselves can do much to see that this
JUNE 4 adequate storage. year's big wheat supply is properly housed”
"I wish to take this opportunity to proFailure to anticipate and provide for and that private agencies have handled most
test the lack of storage facilities for grain storage needs can wipe out effectiveness of this in the past and are expected to be
that will be harvested during the next few of price protection just as surely as readequate this year."
weeks in my area. The lack of storage facilipealing the price-support laws now on
ties creates a decided hardship for the small the books.
"The Department of Agriculture an
farmers in that they have no place to store
their grain. * * * In other words, they find The most vital part of our program nounced a 1-year extension (through June to get fair prices for grain farmers is build storage on their farms.”
of 1954) for farmers to borrow from CCC to it necessary to sell their grain on the market
for the market price thus losing the difference adequate storage facilities. lease.)
between the guaranteed price and the market If there is enough storage space, farmNOTE.—It also reported that 34,263 loans of
price. ers do not have to sell their grain crops, more than $40,500,000 had been granted by
“This problem has been known for several such as wheat, barley, oats, and corn CCC for more than 142 million bushels of
months and no action has been taken by the
Kansas City office until just recently. immediately after harvesting them, this kind of storage since 1949, when Demo
I feel that our small farmers are entitled to when prices are at their lowest point of crats started this program.
the same benefits that others who can secure the year.
storage facilities are entitled.” (Letter to A shortage of storage always causes a Secretary Benson called a conference at the Department of Agriculture from Conspread between the support level and the Des Moines a week later to "consider the gressman JEFFREY P. HILLELSON, the Repubmarket level, with the farmer taking a threatened shortage of storage to handle corn lican who represents Harry S. Truman's dis
trict in Missouri.) licking. As of June, with harvest in full supplies this fall, and develop plans to increase farm storage facilities.” (Press re
JUNE 6 swing, the market price in many areas
lease.) was reported running 50 to 75 cents a
“Delay on CCC bins
MAY 29 bushel, a half or a third below the sup
“As this issue * * * goes to press, the
“The Department of Agriculture arranged Commodity Credit Corporation Board has port price, adding up to millions and
to use surplus merchant ships on the Atmillions of dollars lost by all farmers on
not yet ordered the purchase of the new lantic seaboard for grain storage.” (Press re
bins needed. * * * Why the delay? Most of all grain crops during the year. lease.)
the PMA and CCC officials see the problem. That is why we must fight for ade NOTE.—This was also done in 1949.
But there are other folks in the Department quate storage just as vigilantly as we
of Agriculture who dislike the corn loan, fight for price support laws. One is of
The Wall Street Journal rounded up the
object to Government handling of storage, little use without the other. situation from Chicago, under the following
and who keep hoping that something will The Senator from Montana has done headline: “Storage Trouble-Hefty Grain
happen to get them off the hook without
their actually buying more bins." (Wallace's a service to agriculture in focussing the Surpluses Threaten Side-Splitting Strain on
Farmer and Iowa Homestead.) spotlight on the seriousness of this situ
“Worst Grain Storage Squeeze LoomsI have been watching the situation “Never in all my years in the grain busi United States To Require Space for a Billion closely and hopefully, but I regret to say ness have I seen the disparity between the Bushels of Wheat and Corn.” (Headline in the administration's record has been a loan price and market price so great. In the New York Times.)