The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-08-28
WILL ORGANIZE
GRAIN COMPANY
In Which Stock Shall be
Owned by Farmers.
D. A. WILSON PROMOTER
He Offers to Subscribe $751;
900 to $4,000.
D. A. WILSON PROMOTER

.. A. Wilson is planning to organize
a grain handling company with a capital
Of $4,000. which win build a number Of
bins along the Missouri Pacific and Wich-
tia q Western tracks in sodgwici-. sum
ner Reno. and Kingman counties. and
market the grain for the farmer who
takes stock IN the company. A1r. Wilson
stated to the Eagle that ne had been
urged for some time by farmers along
the railroads mentioned to promote such
= concern and that he would subscribe
from $4,000 to $500 Of the stock him
self If hs can. find a large number of
farmers 10 take but few shares each.
the company VIII be organized this fail in
time TO handle This years corn crop.
If the plan proposed by Mr.. Wilson is
carried out those who have stock ia the
company win store their corn in the com
pany's bins which viii be located at prac-
tically every railroad station. In case
they desire 10 get some money on their
grain, but 90 not want 70 sell the cereal
at then prevailing prices, the company
VIII issue them receipts for the grain
stored Arrangements wiz be made by
which the holders Of the receipts can Dor
rev money from the banks on them to
the amount oe two-thirds the value Of
the grain for which the receipts are
issued. The BANKS. il is believed. viii be
willing to loan money on the receipts.
for they would be secured by grain valued
at al one and half times the amount Of
the loan There would be slight prob
ability or even possibility that the grain
would decline in value so much that it
would no longer be more than full Sc
curity Tor receipts and there is the chance
that it would rise in value.
After farmer had borrowed money on |
his grain receipts TO the amount of two
thirds the value Of the grain, he would I
rot be deprived of an opportunity TO sell |
his grain at full value whenever he 50 de- |
sired
II is the plan that the grain shall be
held in storage until the owner OF it |
desires il sold. whereupon the company |
will find market for it at the highest |
price obtainable. The practical workings
of the scheme win be that the farmer can
borrow money on his grain receipts to The
amount Of two-thirds of the then market
value Of the grain. and then afterwards
can sell the grain at It's fUll value The
company which VIII redeem the receipts
will reserve enough out of the sale Of the
grain to pay the debt leaving the farmer
the balance.
The company VIII reap some profit in
the handling Of the srain in the way of
commissions, but these profits viii be
divided among tho men who store grain
with the company for they VIII an be
stockholders and VIII receive dividends
according to The amount of stock they
subscribe.
Ia speaking of the matter. Mr.. wilson
said.
The organization of the company win
prove Of great benefit TO the farmer this
fan for many of them need money al
once By being members OF che company
they cam set money on their grain and
at the same time mold it for a higher
market.
For the handling of wheat it would be
advisable 70 build an elevator and il seems
IS though Wichita would be the place
for the elevator to be located"