The Humboldt Journal

February 21, 1929 Volume 24, No.13 $2.00 Per Year in Advance

THE ROYAL GRAIN INQUIRY COMMISSION AT HUMBOLDT

When the Royal Grain Inquiry Commission held its sittings in Humboldt last Wednesday and Thursday, the farmers of this district took full advantage of the opportunity to present their grievances in connection with the present system of handling, mixing and marketing grain. That keen interest is being taken in the question here was evident by the large numbers who gave evidence before the commission and by the attendance by the public.

Radical Changes Proposed
Complete abolition of the government grain inspection department, the board of grain commissioners, and the Winnipeg grain exchange; was one ambitious adventure presented for the consideration of the commission. It was the latest new thing advanced by Saskatchewan farmers in the process of finding some solution of their serious condition following the low prices obtained for their frosted grain. But this gesture for complete annihilation of the machinery that has so long functioned in the grain inquiry is the most radical of all changes suggested.

The resolution was presented by Frank J. Kaller and the importance attached to it may be imagined from the fact that he is the secretary-treasurer of the United Farmers of Canada local here. The resolution, however, it was disclosed in the course of the elaboration, had not been adopted by the local. It was merely the idea of Mr. Kaller. It provides "that whereas the present grading system is fairly unfair, and wheat cannot be justly graded according to weight because some feed wheat weighs more than number one, and whereas grading according to color is absolutely unfair, and European millers buy on the milling values, therefore be it resolved that we abolish all grades, government grain inspectors, broad of grain commission and the Winnipeg grain exchange."

"That the wheat pool establish a mill at some central point where the farmers could have their wheat tested or analyzed for its milling and baking value.

"The grower would deliver his wheat to the elevator and the agent, in the presence of the grower, would obtain an average sample from each load. This would be placed on the regulation box and preserved and forwarded to the pool mill for analysis for protein and baking values. Upon this test would be based the price of that shipment."

Mr. Kaller was not very clear on how the industry could function in the absence of a market for selling and buying like the Winnipeg exchange and how the rules of the game would be lived up to in the absence of the board of grain commissioners, but he was clear in the exposition of the farmers' ills when they find their wheat weighing as much as sixty-five pounds going into feed for which a price of forty cents is obtained. He presented the commission with a loaf of bread he said was baked from this wheat that had been graded as feed. The chairman remarked that while it was not as appetizing as required by the buyers of the best flour it would sustain life and was probably nutritious.

However radical the plan suggested may appear on examination, there was no doubt that the author of the idea was in earnest.

Say Payment Made On Milling Value
"If our grain went out of the terminals to the world markets as good as when it goes into these mixing houses farmers would be satisfied with present grades," declared Joseph Burton, in presenting the resolution of the U.F.C. local branch. He added:

"Prices would be higher to the producer because the overseas buyers would be satisfied to pay more. World buyers will only pay for grain what its milling value it, no matter what you call the grade."

The witness said these views were representative of 79 farmers of the district. He urged that the protein content be marked on each grading certificate.

Blame Companies For Grain Prices
Private elevator operators were charged with keeping their elevators full so that they could force farmers who had hauled their grain long distances to sell their wheat at reduced grades and the resulting lower price. One witness told the Commission that he had known several instances where farmers after hauling their grain for miles, had been informed that the elevator space for high grades was filled , but that it could be purchased as number four and placed in the number four bins.

M. C. McKinnie, of Pilger, declared that a farmer who had hauled his grain for miles was willing to strike a bargain with the result that many of the grain growers received very low prices for their product.

"The commission informed witnesses that it was considering recommending a license for each country elevator.

"If anything was found wrong," the chairman said, "they would lose the right to do business."

Inspector "Tightening Up"
The oft repeated charge that country elevator operators reduce grades during rush season of shipments as results of suggestion from head office that inspection department was "tightening up on the grades," received definite confirmation at Thursday's session of the Commission. Witnesses who had strongly complained against the degrading process in vogue at their local elevators laughed loudly when counsel read the admission of the general manager of Canada West Grain Company Limited, in a letter to J. L. Patterson, manager of McNab Flour Mills, Humboldt, that "there is a good deal of psychology in the inspection of grain." In September last, Mr. Patterson complained that car 43243 had been graded feed, as of similar samples sent to Winnipeg not one had graded so low. We cannot see, he wrote, where the inspector is entitled to get more severe every day. There should be some standard for him to work to. What has a fellow got to go

by? General manager in reply asserted that samples referred to were most of them on line between five and six, and that during last few days inspector had tightened up very much, that wheat which a week ago would have graded five now grades six. The day following they wired that car referred to grades feed and that inspector getting more severe on low grades daily. On September the he wrote, "We do not think any samples you sent down had quite as big percentage of this gray stuff as car 43243. It is also the fact that inspectors is tightening up. The quality of this frozen low grades stuff is increasing every day and it is much worse than anticipated earlier, with the inevitable result that the grade is getting more severe, and it is much better to have hi jump on to it now than a few weeks hence when the country elevators will all be filled with the stuff. You fellows in the country do not always realize as much as we do what the inspector is up against. If he is too easy on the grading the exporter and the terminal elevator get after, him, and we know for a fact that there was quite a row a few days ago because he was grading some of the stuff too high, and after it went through the terminal elevator at the lake front into the vessels the inspector there was grading it down and the terminal elevator was holding the sack. There was quite a row about it, and the results has been that the inspector has tightened up and will not give us a pleasant look for the time being." This is good material, commented the chairman, and the council stated that the matter would be further investigated. Mr. Peterson disclaimed all liking for the lower grades in his mill mixed, but mentioned that he had given the price of No. 2 for some wheat form the Lake Lenore district which received no better that a 4 at the local elevators.

Attacks Trading System
Attacks on the grading system were vigorously renewed at afternoon session. Aldon Duke, Humboldt farmer, with twenty seven years' experience as stock dealer and farmer, branded as radically wrong the practice of certain Western milling companies in opening up with permission of consignee cars enroute to terminals and selecting such as suited their requirements. Farmers, he said, had brains enough to form a Pool. They should have brains enough to sample wheat and mill it, and so determine its actual value and sell in on that value.

A. T. Proctor, assistant counsel to Commission, pointed out that nothing to Grain Act presents selling an sample; but witness remarked that so far Pool had been unable to preserve the identity of grain shipped to European markets. If this difficulty could be overcome, he said, before cargoes were dispatched samples of carlots could be sent to a laboratory to be attached to a Pool central mill, where experts would test the milling value of the wheat, its protein and gluten, and in return a certificate would be sent to the elevator where the grain was stored. This certificate would be attached to bill of lading and the wheat graded and sold on its own merits. In support of his opinion that to send wheat to Winnipeg to be tested was an absolute joke, because "you are not testing your own wheat;" witness instanced experiences of his own with envelope sample of wheat off breaking which was graded three percent pigweed.

On behalf of Plunkett Local United Farmers of Canada, Aurthur B. Pearce presented a resolution, "that in event of embargo being placed on grain the resulting charge should be borne by elevator in which grain was held."

Wm. Tonn, who has been farming in this district since 1907, stressed a view general in this locality that grades are unreasonably high, but after some discussion and explanation agreed with Commissioner Rutherford that to improve the quality of No. 4 would probably increase the price of that grade.

Gregor J. Roles, of Bruno recommended that when the Pool attains a sixty or seventy per cent sign up it should introduce its own grading system.

An informal exchange of views occurred at the close of the session. J. W. Belford insisted that dissatisfaction of both farmers and old country purchasers with present system had been proved, that therefore it benefitted nobody but grain dealers and mixing houses and that remedy would be found in Pool getting into negotiation with importers in Europe, and China, or anywhere else, and trying to evolve a grading system that is beneficial to them as importers and we as producers. Leave the Government alone, was his advice. If the line men wish to buy on our system they can do so. We can't crowd them out.

"I do not think, remarked the chairman, Chief Justice Brown, "that the Government would care at all. I would say that the grading system that would be most in interests of the producers would satisfy the Government and would be the one thing that would satisfy the Government.

Mr. Belford expressed the hope that Commission would visit Great Britain learn the viewpoint of the importer as to fixing grades, and so provide for a grading system that would be away above the one now existing. It would be more satisfactory, he added and anyway it would dispel this suspicion.

Another suggestion which receives strong support was that no new grades of wheat should be put on the market until they had been approved by Department of Agriculture, Board of Grain Commissioners, or other competent authority.

Other witnesses who appeared before the Commission were: Nick Engele, Carmel; Frank Bolster, Humboldt; Arnold Schmitt, Humboldt,; W. Ostrom, Humboldt.


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