118 FARMERS' UNION AND FEDERATION 



"Now then, as to the necessity of organization. Have we any 

 grievances? Is there any just cause for complaint? My friends, if 

 anybody is in doubt, if he will turn to the Federal Trade Commission's 

 reports, I believe he will find food for thought. If he will look over 

 the reports, he will find, for instance, that the Steel Trust was per- 

 mitted to increase its profits from $47,000,000 in 1914 to $478,000,000 

 in 1918, or about 1,000 per cent, much of it at the expense of the gov- 

 ernment. They were given the benefit of the natural law of supply 

 and demand largely stiumlated by the government. 



"The millers increased their operating profits 175 per cent, and on 

 the capital invested 100 per cent ; he would find that four packers in- 

 creased their profits $121,000,000 above their prewar profits. He will 

 also find in those reports that the meat producers the live-stock men 

 are at the mercy of, say, five packers, killing 70 per cent of the live 

 stock, by reason of their control of the market facilities and pooling 

 and splitting shipments and dividing purchases, the little black book 

 and various other combinations and conspiracies. 



"As you know the railroads were on the verge of bankruptcy. They 

 were about to go into the hands of receivers. Their stock had been 

 watered and mortgaged to the limit. They were unable to renew their 

 obligations or to borrow money. They were taken over. Nobody 

 objected to that. They were guaranteed $175,000,000 to $200,000,000 

 compensation above the amount estimated by the Interstate Commerce 

 Commission. They were guaranteed an annual compensation running 

 as high as 647.22 per cent. We are paying compensation to one road 

 the Bessemer & Lake Erie Railroad several times over every year. 



"So, my friends, we might go along, but I believe this is sufficient. 

 Now, on the other hand, the farmers. As you know, Hoover told us 

 that wheat would go to $7 a bushel and that that should not be done. 

 The price then was $3.45 per bushel. Neutral nations offered $1 

 premium, or $4.45 per bushel. He stated his task would be to furnish 

 flour at $6.60 per barrel. That would have netted the farmer about 

 $1 per bushel. Later he said he might concede $1.50 per bushel. Con- 

 gress fixed the price at $2, and provided for a commission which fixed 

 it at $2.20 and later at $2.26. Italy fixed the price at $3.60 ; France, 

 $3.96; Canada, $2.24^; Switzerland, $3.36; Norway, $4.38. The 

 price of wheat was fixed not at the price it would have been under the 

 natural law of supply and demand, but was arbitrarily fixed by the 

 government. As a result the wheat grower suffered a loss of approxi- 

 mately a billion dollars. The farmers did not object. Their repre- 

 sentative told the committee to carry out the plan; that what they 

 were interested in was winning the war. They accepted the price. 



