AGRICULTURAL RELIEF

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culture, on March 29, 1926, showing cash closing prices at Minneapolis
and Winnipeg, during the year 1923-24 with a domestic production
of 792,000,000 bushels, and net export of 128,000,000 bushels, and a
shortage of high protein wheat, the tariff was effective to an extent
ranging from 11 to 39 cents per bushel on the best grades of spring
wheat, that is, the Minneapolis price was 11 to 39 cents above the
Winnipeg price. It was not equally effective on low grades of wheat.
In 1924-25 with a production of 863,000,000 bushels, and net exports
of 251,915,000 bushels, the tariff was not effective except in the
month of July, 1924, when it was effective to the extent of 8 cents.
In 1925-26, with a production of only 669,000,000 bushels, the
Winnipeg price was from 4 to 29 cents below the Minneapolis price,
except during the month of Aguust, when the price at both points
was the same. As a result of the short crop, we got the benefit of
the tariff to the extent ranging from 4 to 29 cents per bushel on the
high protein wheat.

Mr. ANDERSON. Yes; more than that.

The CaairMaN. But where we are short of a particular grade?

Mr. ANDERSON. You get more benefit.

The CuairmaN. We sometimes lose part or all of it and get no
benefit of it. We get no benefit on the lower grades of wheat, because
we have a surplus all the time. But in the case of high protein
wheat, when we are short we use the Canadian wheat we import
and occasionally get the benefit. But there is where the millers
step in and where the farmer, in a large extent, is left out. The
millers import the high-grade Canadian wheat, grind, substitute, and
export lower grade domestic wheat, and occasionally rye, and receive
the drawback. As I understand, the millers grind the high-grade
Canadian wheat and export the lower grade domestic and the Gov-
ernment gets no benefit of the tariff. You are a miller. Maybe
you can enlighten us on that point.

Mr. AxpeErsoN. I never heard of any miller importing Canadian
wheat and mixing it with rye.

The CuairMAN. I am referring to the Trade Commission’s report
where it reports that Canadian exporters ship wheat in bond, and
where American rye was substituted for wheat while in transit, thus
avoiding the tariff on wheat where American rye was substituted.

Mr. ANDERSON. I do not know how that could be done under the
provisions of the tariff act.

Mr. KincHELOE. Of course, the tariff act provides that when you
import, say, a hundred thousand bushels of Canadian wheat in here,
the miller——

The CrairMAN. Shipped in under bond.

Mr. KincaeLoe. Well, shipped in, it pays 42 cents tariff. Then
if he turns around and mixes as much as 30,000 bushels of American
wheat with the 100,000 bushels of Canadian wheat and grinds it
into flour and its by-products and exports that flour and by-prod-
ucts, when that process is over that miller goes to the customhouse
and draws down 99 cents on every dollar of tariff he paid on the
wheat coming in from Canada?

Mr. AxpERsoN. That is correct.

Mr. KincuiELoE. Like Mr. Anderson, I do not know anything
about mixing rye with wheat.

Mr. AxpeErsoN. I never heard about that.