Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1913-06-06
THE MARKETING PROBLEM

kvsrketing and Farm credits at Chi
Eago:
gwbile some progress has been
~ IN teaching the farmer how to
80 many crops, little has yet been
.,s TO aid him in securing fair
..es for his produce. To illustrate
4. gross injustice of our present
~srketing system, l may point out
4 N fact that at Laredo, Texas, in our
.,on growing district, one day a
hort time ago, onions were sold for
- tents a pound; the next day La
..ao onions were sold in the open
+ nsrket at Austin, Texas, at Is cents
round. In this transaction, as you
4 IN see, the commission man, the
Smblic carrier, and the retail dealer
Eavided among themselves $50 per
+ ,sut Of the price paid to the grower.
Elgain. tomatoes were sold one day
N tWo-thirds cents each in Pales-
4 fine. Texas, and the next morning
T rsre sold in the markets of Austin at
\ NE cents each. In each of the in
+ sances cited the producer received
only 13 per cent of the final selling
Fmice while 81 per cent of the selling
knce was divided among the rail-
loads and the sellers of the produce
the glaring injustice of such a sys-
liam is made more apparent by COM
harrison with the results of co-opera-
HdOp in marketing farm products in
EDenmark. In that country, for ex-
ample, the cooperation society han
Kdles sorts according to size and
BACKS eggs for three and one-half per
Esnt; the shipping and selling cost
-four per cent, leaving the farmer
EsgR per cent of the final purchase
price paid by the consumer. In
ETexas, without cooperation, the
farmer receives 13 per cent of the
final selling price of his produce; in
Denmark, through cooperation, the
farmer receives 921a per cent
! The need of cooperation in secur-
ling cheap money for the farmers in
Ehe southwest is as great as the need
EOf aid in obtaining larger returns for
EhiS produce. In many places in
Texas and Oklahoma the farmer is
yet obliged to pay rates of interest
that range from 10 to 25 per cent,
land even these rates are better than
buying on time from the country
merchant. In some sections without
Banking facilities, credit from the
country merchant is the only re-
source. Side by side with the farm
EF is the cattle man, who is able to
kacure money at interest of from six
% eight per cent, and the railroads
which have little trouble in finding
capital at much lower rates. The
E@ttle men and the railroad men have
Eienbe and efficient organizations;
Eney work together. The farmers, on
he other hand with loose organiza-
aons or no organization at all,
enough possessing in the aggregate
nuch greater wealth, continue to pay
plnous rates of interest.
\ such condition of affairs is
aousing the interest of leading
altors, bankers, philanthropists,
Farmers Union officials, and stu
uents. throughout the entire South
'est. AT the University of Texas one
nan is at present employed who is
give his entire time to the study OF
EHVplems of marketing. The result |
y tnese studies will be distributed in |
9nietns, and SO far as possible lee
'afes VIII be delivered to farm or
SITUATIONS suggesting plans for
-setlng the situation. A course on
N'sncuitural economics is given in the
'su0oi OF economics, where the prob
sms Of modern agriculture are stud
~ Inc University of Texas has the
a'lnction of supplying a constitu
avn and bylaws for the first credit |
~ion TO be organized in the South
''a'' IN fact, the first credit union,
'ar as is known, that has been or
Sauized In the United States, except |
-0se IN Massachusetts,. Responding
.ne interest aroused by the publ
.-uou Oh this constitution and by the
'Inlents in the leading newspapers
~ farm journals in the state, the
h. a"S legislature has just passed a
- authorizing the organization of
s'aN unions similar to those in Mas
N4usetts. Another bill has been
A'iuefed authorizing the organiza-
- VI central credit union similar
e central union for Landshaften
uefmany. Still another bill has
- considered in Texas providing
,psnses for commission which is
oe sent to Europe to study the
~ union system of France and