List of employees, the Grain Stabilization Corporation, October 31, 1931 Roy Brown. Richard Franks.. C. P. Flanagan. J. H. Taylor. Hayes H. Miller. Thomas E. Hogan. Margaret E. Schrader. E. O. Smith. Harry O. Koch. W. P. Little. Harold McClintock.. R. F. Storch. W. J. Peterson. N. L. Grotheim. Betty Jackobi. Naomi C. Zatarain. Lorna E. Metz.. Thomas O'Meara, jr. Effie Simons. Joseph J. Banks. Emmanuel Lundmann.. Florence Smith.. Walter Kominske. S. W. Van Tassel. D. Q. Holsing.. V. W. Lovejoy. Jack Kramer.. William Ternes. Junior clerk, collateral department. 75.00 Mary G. O'Connor.. Stenographer, Traffic department... 109.00 List of employees, the Grain Stabilization Corporation, October 31, 1931Continued CHICAGO OFFICE-Continued Name Position Salary per month George J. Huber.. A. R. McClintock. Andrew E. Swenson.. Total_ The CHAIRMAN. Mr. Milnor, can you from memory give the number of employees of the Grain Stabilization Corporation? Mr. MILNOR. The Grain Stabilization Corporation at the present time has 177 employees. The CHAIRMAN. Where are they located? Mr. MILNOR. They are at least the most of them-in Chicago. I have a list of them here, Mr. Chairman, by groups. We have 138 at Chicago, 12 at Minneapolis, and 27 on the Pacific coast. The CHAIRMAN. Who is the president of that corporation? Mr. MILNOR. I am. The CHAIRMAN. What salary at such do you receive? Mr. MILNOR. None at the present time. The CHAIRMAN. Who receives the highest salary from the Grain Stabilization Corporation? Mr. MILNOR. Our export manager, I believe-Mr. Monkres. Mr. MILNOR. I will see, but I think it is $12,000 or $13,000. No; I find that I am wrong about that; he is with the Farmers National Grain Corporation. The highest salary paid on the Grain Stabilization Corporation list is that of Mr. A. T. Sawyers, the comptroller, whose salary is $650 per month. The CHAIRMAN. Have you a number of vice presidents of that organization? Mr. MILNOR. We have, Mr. Chairman. The CHAIRMAN. Do they receive stated salaries? Mr. MILNOR. None of them are on salary at the present time. Senator GORE. Have they been on salary at any time in the past? Mr. MILNOR. Yes, Senator Gore. And in that connection I should like to amplify my answer to this extent: At the time the Grain Stabilization Corporation asked me to become associated with it, Mr. W. G. Kellogg was the president and general manager. I was selected for the position of vice president and general manager. My salary was arranged and agreed upon at $36,000 per year. That was in March of 1930. In April of 1930, Mr. Kellogg resigned as president and I was elected to the position of president and general manager, at the same salary, $36,000 per year. During the same month, and I think the latter part of April of 1930, the Farmers National Grain Corporation, of which Mr. Kellogg had also been general manager, received Mr. Kellogg's resignation from that position, and I was elected as vice president and general manager of the Farmers National Grain Corporation, and the agreement and arrangement was that my combined salary should be $50,000 per year, $14,000 of which would be paid by the Farmers National Grain Corporation and $36,000 by the Grain Stabilization Corporation. That arrangement was continued until July 1, 1931. On July 1, 1931, the Grain Stabilization Corporation's purchasing policy under the stabilization plan had been completed. It seemed, at least to some of us, that from that time on the stabilization operation became to some extent a question of handling and controlling the wheat that had been purchased, and also the ultimate sale thereof. It was not felt that the Stabilization Corporation should expand its organization, nor that it should continue it on any more expensive basis than was absolutely necessary to properly handle and safeguard the stocks of wheat accumulated and to ultimately dispose of them to the best possible advantage. And furthermore, on account of the fact that the Grain Stabilization Corporation activity was with the idea of the temporary operation of the present stabilization program, which had been undertaken the preceding November, it had not established elaborate selling offices either in Chicago or elsewhere and had no branches in foreign countries; therefore it was felt, that rather than go to the expense of establishing those offices, that as a policy it would be preferable, more efficient, and possibly more economical to sell the grain, such grain as it was determined then to sell, 5,000,000 bushels per month plus foreign-government sales, through existing organizations in the grain business, particularly the Farmers National Grain Corporation, consisting of cooperative associations which, as you gentlemen know, had been organized under the same law and which had sales offices in this country and also representatives in foreign countries. The CHAIRMAN. Just pardon me for a moment. I think it would be better understood if I asked a question to clear it up: I think there is a little chaos existing regarding this step up of the so-called Farmers National Grain Corporation, and you are launching into a statement involving it without giving the detail of the workings; if you would tell us when and where it was organized, and what are its constituent elements, and how you distinguish it from the Grain Stabilization Corporation, and tell us if they are competitive or noncompetitive, and how is it that you occupy a dual position in both 90613-31- -14 organizations. Make that clear to the committee, and then you may proceed with your statement. Mr. MILNOR. I will do so, Mr. Chairman, and gladly, but with the fear of reiterating things that all of you Senators and many others know and are familiar with, but in order to make a continuous story of it I may have to repeat. The CHAIRMAN. We should like to have it, and others on this committee will read the record. Mr. MILNOR. Under the agricultural marketing act provision is made for encouraging cooperative associations for the marketing of agricultural commodities. And it further provides that under certain emergencies stabilization corporations may be formed. The first step taken, so far as grain was concerned and to which all my remarks are now confined, was the formation of the Farmers National Grain Corporation. And prior to the formation of this corporation the cooperative grain representatives from all over the country were invited to meet at Chicago. As a result of that meeting it was determined to form the Farmers National Grain Corporation to act as a national and international marketing organization for the grain cooperatives. Senator GORE. And what date was that? Mr. MILNOR. That was in November of 1929. The corporation was formed under the laws of the State of Delaware, with an authorized capital stock of $10,000,000. Under the by-laws of the corporation only cooperative associations might become stockholders. There are no individual stockholders in the Farmers National Grain Corporation, and neither Mr. Huff, myself, nor any officer or director owns stock. There are at the present time approximately 27 stockholding members, largely of grain cooperative associations located throughout the country, and Senator GORE (interposing). Will you put a list of those in the record? Mr. MILNOR. Yes; I will be very glad to do so. I will have a memorandum made of that so it will not be overlooked. STOCKHOLDERS, FARMERS NATIONAL GRAIN CORPORATION As of October 31, 1931 The Agricultural Corporation of Maryland, Sherwood Building, Baltimore. Md.; James W. Davis, president, John A. Englar, secretary. American Wheat Growers, Associated (Inc.), Aberdeen, S. Dak.; also at Minneapolis, Minn.; C. W. Croes, secretary. Central States Grain Association, Lemcke Building, Indianapolis, Ind.: Frank H. Arn, president, B. B. Benner, secretary, William H. Settle, general manager. Colorado Grain Growers (Inc.), 810 Fourteenth Street Building, Denver, Colo.; C. F. Scarsfield, secretary, Harry C. Stephens, general manger. Eastern Grain Growers, Hagerstown, Md.; Gray Silver, president, A. E. Bowman, secretary. Equity Union Grain Co., Board of Trade, Kansas City, Mo.; Edward Travis, president, C. C. Douglas, vice president, J. J. Knight, general manager. Farmers Co-op. Commission Co., Hutchinson, Kans.; H. G. Tharp, president, H. C. Morton, general manager. Farmers Educational & Co-op. Union, Kankakee, Ill.; Joe Callahan, president. Farmer Union Co-op. Grain Corporation, Zell, S. Dak.; W. H. Preston, secretary, Joe Atkins, president. Farmers Union Central Co-op., Kankakee, Ill. Farmers Union Terminal Association, Minnesota Building, St. Paul, Minn.; Paul B. Moore, president, Geo. C. Lambert, secretary, M. W. Thatcher, general manager. Farmers Westcentral Grain Co., 501 Grain Exchange, Omaha, Nebr.; C. B. Steward, president, J. W. Shorthill, secretary, 210 Hillcrest Building, L. L. Quinby, general manager. Illinois Grain Corporation, 608 South Dearborn Street, Chicago, Ill.; J. C. Johnstone, president, Harrison Fahrnkopf, manager. Inter-Mountain Grain Growers (Inc.), box 712, Ogden, Utah; J. W. Webster, president, Jess W. Wade, secretary. Indiana Farmers Co-op. Elevator Co., 516 Board of Trade, Indianapolis, Ind.; M. P. Hill, president, E. G. McCollum, secretary, William F. Hagen, treasurer. The Jobbing Association of the Kansas Branch of National Education & Co-op. Union, 337 Board of Trade, Kansas City, Mo.; W. J. Spencer, vice president, H. E. Witham, general manager. Kansas Co-op. Wheat Marketing Association, 540 Board of Trade, Kansas City, Mo.; John Vesecky, president, Ernest R. Downie, secretary. Michigan Elevator Exchange, Lansing, Mich.; C. J. Martin, president, H. D. Horton, secretary-treasurer. Missouri Grain Growers (Inc.), Manufacturers Exchange Building, Kansas City, Mo.; M. R. Brown, president, W. S. Miller, secretary. North Dakota-Montana Wheat Growers' Association, Grand Forks, N. Dak.; George E. Duis, president, A. J. Scott, secretary, R. L. Taft, cashier. North Pacific Grain Growers (Inc.), Spokane, Wash.; F. J. Wilmer, president, H. E. Goldsworthy, secretary. Northwest Grain Association, 600 Flour Exchange, Minneapolis, Minn.; A. E. Berg, president, Baltic, N. Dak., G. W. Connell, secretary and general manager. The Ohio Equity Exchange Co., Lima, Ohio; Lucy Hennen, secretary. The Ohio Farmers Grain & Supply Association, Fostoria, Ohio; W. C. Horn, president, Oscar Slosser, secretary. Oklahoma Wheat Growers' Association, Enid, Okla.; C. R. Roberts, president. Producers Grain Commission Co., Merchants Exchange Building, St. Louis, Mo.; W. L. Steiner, president, Julius Schuermann, secretary-treasurer. Union Equity Co-op. Exchange, Enid, Okla.; Glenn Draper, president, Percy Gheen, secretary, E. N. Puckett, manager. The CHAIRMAN. You may proceed. Mr. MILNOR. The Farmers National Grain Corporation started business probably early in January, 1930, or late in December of 1929. The principal offices are in Chicago, and it was formed solely for the purpose of acting as a national marketing agency and the national representative of cooperative grain associations. Senator GORE. Do you mean 1929 or 1930? Mr. MILNOR. I mean 1929. The CHAIRMAN. Senator Gore, please speak a little louder. I do not hear your questions. Senator GORE. Mr. Chairman, he said 1930, and I thought he had made a mistake and I just wanted to get that corrected. The CHAIRMAN. All right. You may proceed, Mr. Milnor. Mr. MILNOR. In the following February, 1930, conditions arose which caused the wheat advisory committee, which had been appointed as provided for in the law, to meet and determine that in their opinion an emergency had arisen in the form of a surplus of wheat. On recommendation of the wheat advisory committee the Federal Farm Board caused to be formed the Grain Stabilization Corporation in February of 1930. I feel sure that is the date. The Grain Stabilization Corporation is also a Delaware corporation, with no capital stock, the control being by memberships. The memberships of the Grain Stabilization Corporation are all grain cooperative associations or representatives of them. Senator WHEELER. I did not hear that. Would you mind repeating it for my benefit? |