Durant weekly news. (Durant, Choctaw Nation, Indian Territory [Okla.]) 190?-1944, 1914-01-02

The Kidding bale brought 11.25 cents
per pound, which by the comparison
with the prices at the ports we must
assume to be fair price, Shawnee
being recognized as premium mar
ket. or the 3 strict middling bales,
2 brought 11.25 and brought 11.S5
cents per pound each.
Now, assuming that one farmer pro
duced all these bales. he actually lost
on the strict middling bales $135. as
compared with what the local differ
ences would have allowed him. On
the 3 bales of strict good middling,
which by local custom would be grad
ed only as good middling, he received
$3.05 less than he was entitled to even
under local differences. He actually
received total of $1.50 in premium
above middllng price on the whole 6
bales of high grade cotton. II the
New York difference sheet had beer
applied. allowing the premiums pre-
sumably paid by the mills for such
cotton. this farmer should have re-
ceived $3.50 in premium on his thres
strict middling bales and 5000 in
premium on the strict good middling
bales, or total of $3.50 above the
price of middling for his bales, in
stead Of the $3.50 which he actually
received.
Summing up this whole matter OF
premiums and penalties the report
continues, we may say that the farm-
er sells his cotton to comparatively
in price in consequence of variation
in grade, but that he is subjected to
process of averaging to which he
is not consciously party, which Is
based upon no definite consideration
of his rights or interests and which
must inevitably be so adjusted as to
leave a hidden profit for the buyer
This system OF averages is arrived at
by rule of thumb. is never reduced to
WI lAAubt 10 buDJCCl W ouDtl
vision or adjudication.
Averaging prices on the original
purchase OF cotton is vicious prac-
tice because it is impossible to distri-
butte equitably its benefits and bur-
dens. BY this system the careful and
progressive ate regularly penalised
for the benefit of the Indifferent and
thriftless.
Growers Lost $4,000 in Premiums on
One Grade
For some reason not satisfactorily
explained, the cotton trade in Oklaho-
ma recognizes no grade above mid
ding. All strict good middling and
middling fair bales are expected to be-
graded and sold as good middling. The
reaoin for this practice is alleged to be
that the higher grades are not pro-
duced in sufficient volume to permit
full carlots to be concentrated for
shipment. Consequently small dealers
or farmers cannot get cent above
good middling price for strict good
middling bales, even when their grade
is admitted by the cotton merchant.
AS result of the sampling, the
investigators estimate that the crop
of Oklahoma for 1912 contained some
10000 bales of strict good midding
cotton ON which the New York diff
ferences would entitle someone to
total of over $4,000 in premiums a.
bove the price of good middling.
No one in the state who was utter
viewed Admitted having received
cent above this premium.
Competition Among Buyers Does
Not Affect the Primary Market
Cotton Growers, according to the
bulletin, "very generally measure
the desirability of market by the
number of cotton buyers therein. Our
work gives us no ground for accepting
this view"
The bulletin then cites investiga-
uons at nineteen points in which the
average price per pound paid for GER
tain higher grades of cotton on the
same day This condition was found
in about one fourth of the markets in
which extensive sampling was under
taken.
In speaking of the effects OF com
petition the bulletin states:
Mountain Park has only two buy
ers, but Mangum has twenty-seven
street buyers and we must assume
that everything that competition can
do to force proper respect for quality
is done in Mangum. By what opera
ton of the comparative principles
does it happen that low middling
bale can be bought for s1.55 less than
the average price of four ordinary
bales. when by the published differ