Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-05-30
Cooperative Associations Send
ing Out Literature Attack
ing State Association
NOT AlTN BY sT'LLMAN ACT
Attorney General 5yers Gives Opinion
Favorable to Farmers Cooperative
Comp - New Law Not Aimed
at Them, But at Iowa's Elevator
trust.
Special to Times-Republican.

Special to Times Republican.
Des Moines. May S0.-The contro-
versy being swaged between the Iowa
State Grain Dealers Association and
the state organization representing the
farmers cooperative elevator compan-
les has attained the stage where per-
sonalities are being hurled back and
forth apd questionable tactics are be-.
ing resorted to by both sides to the
fight. The latest attack comes from
the farmers cooperative society.
which is sending broadcast thru the
malls a vicious attack on Secretary
George A. Wells, of the Iowa Grain
Dealers Association. and the organ
ization he represents.
Wells and his organization, which IS
known as the elevator trust. ana
which sought to and did fix the prices
of grain in Iowa. was hard hit by the
late legislature, which enacted the
stillman bill declaring the acts OF the
y
man law was timely and the legisla-
ture did the wise thing in enaettng II.
The Iowa Grain Dealers Association
recently raised the point that the CO.
operative companies also came under
the provisions of the law, and cor
respondent at Spencer, where one Of
the officers of the association resides,
sent out to the leading papers Of the
state statement covering the claims
thus made. This was widely pub
lished, and moved the cooperative
to secure legal opinion
from Attorney General Byers. The at.
torney's ruling was in favor OF the
farmers companies, and this is sup
plemented by personal statement
from Representative Stillman, author
of the law, in which he declares that
the bill was not aimed at the cooper
ative concerns and does not affect
them, unless they attempt to fix
prices. 1t was pointed out that the
farmers companies, like that at Rock
well, fined it's members If they sold
outside the association but this has
been. held as not contrary to law.
Circulars have now been sent broad
cast by the state association repre-
senting the farmers companies, in
which the newspapers are falsely ac-
cused Of publishing the Spencer story
for money, and an uncalled for attack
is made upon Secretary Wells, in that
1t calls him and his associates an or
ganized gang OF thieves who have
plundered and robbed the grain grow
ers for years.
AS far as the legal status Of the con-
troversy is concerned, the cooperative
concerns have the best Of the fight,
altho the methods of its officers are
open to severe criticism because Of the
personal nature of the campaign which
is being waged against Wells and his
This probably grew out
of the personal feeling engendered by
a statement issued by Secretary Wells
in which he pointed out that farmers
elevators were being organized by paid
agents of Chicago commission houses
In their own selfish interests.
The opinion of Attorney General
Byers relative to the legal status of the
farmers cooperative companies is as
follows:
'Des Moines, May %, 1907 G, G..
Messerole, ESQ, GYwrie, Iowa: Ny
Dear sir-I beg toJ acknowledge re-
ceipt of your favor of recent date re-
questing my opinion as to whether the
provisions Of the Stillman antitrust
grain law passed by the thirty second
general assembly will prevent the
farmers elevator companies from OPP
Grating under Article VII. Of the by
laws enclosed in your letter, or in other
words. whether the so-called 'protec-
ton clause in the bylaws of such
companies is contrary to the provisions
of said act.
I'm response thereto / have to say
that 1 have carefully examined both
the bylaws under which the farmers
elevator companies operate sapd the
Stillman act, and have been unable to
find anything in the so-called 'protec-
ton. clause that Is out of harmony
with or contrary to the spirit or pur-
pose Of said act.
'"The protection clause or penalty
clause as it is termed by some.
to no more than an agreement
by the members to contribute their
share toward the expenses Of managing
and operating the business.
"The fact that each members con-
tribution is measured by the amount Of
his sales, not only thru the companies
agent, but to other dealers, does not
affect the validity of the arrangement
in the least.
"The purpose Of the Stillman act is
to make it unlawful in Iowa for any
person, company, partnership, associa-
tion or corporation dealing in grain to
enter into any agreement, contract,
trust, or pool for the purpose of fixing
the price to be paid for grain, or to in
any smanner prevent competition in the
buying and selling of grain.
LAS I read the articles and bylaws
of the farmers elevator companies the
purpose of their organization is to pro-
tect their members from the operation
of the so-called grain combine in
Iowa, and to furnish them facilities