Daily capital journal. (Salem, Oregon) 1903-1919, 1914-11-19
FINANCIAL PHASE
OF ORGANIZATION
IS DELCARED GOOD
Sessions Of Tri-State COnven-
lion Are Spirited and
Careful

That the hop growers Of Washington,
California and Oregon will unite in the
organization of the Pacific Coast Hop
Growers association as a result Of the
convention of delegates from the asso-
ciations representing each state is a
foregone conclusion, and either one Of
two plans of organization will be adopt
ed: A separate association for each
state to be controlled and managed by
the growers of each state, with prob
able capital stock of 100000, or one
organization to represent all three
states, with a capital stock Of about
$2,O00,0O0. The delegates from Wash
ington, President Ker, Of the North
Yakima association, and two others, ar
rived this morning and are in attend
ance at the meeting today.
The Financial End.
One very important phase Of the
plans Of organization which was dis
eussed both at yesterdays informal
meeting Of the Oregon and California
growers and at an adjourned meeting
which was neld at the Hotel Marion
last night, was the financial end OF
the movement. 1t is proposed to have
the growers corporation borrow the
money from the local banks and to
loan 1t to the farmers, that is those
who are in need of il to cultivate and
harvest their crops. and to take the
growers note in security, and the cor
poraton will reserve tine right to hy-
pothecate such notes. In this respect,
II is understood, as the growers Of hops
have credit ratings with banks as well
as any other class of business men,
these notes win be classified and real
lied upon to the best advantage.
Banker Indorses It,
At last night informal meeting a
representative Of one of Salem 8 banks
was in attedance, and at the request
Of the delegates, went over the financial
phases Of the proposed organization in
detail, and pronounced the plan perfect
ly bankable and legitimate in every re-
spect Furthermore, he stated that he
felt certain that the bank which he rep
resented would be only too glad to co
operate with the corporation in the fin
ancing Of the weaker growers. The
bank, as well as the corporation and it's
membership as whole, will be fully
protected in that, it is understood the
grower contracts to sell his hops to the
corporation, which has the right to
ihypothecate the hops, and this contract
applies as lien upon the land and
not the hops, hence it will be impossible
for an unserupulous grower to defraud
the corporation, the bank or his fellow
grower
Law Not in Way.
/ The delegates present have also re
ceived synopsis of the Clayton bill, bet
/ ter known as the "trade commission
act, which was enacted by congress
on October 10 Of this year, which oper.
ates as an amendment or modification
Of the Sherman antitrust act In that
I IL exempts the farmer and the hbore
from the operation Of the antitrust Law
so long as he keeps within legitimat,
/ grounds and does not try TO establish ,
monopoly or trust in restraint Of trade
Under this act the president will ap
point q district commissioner who will
inspect the method Of operation Of cv
cry corporation which comes within the
jurisdiction of the act, and all sucl
corporations must stand or fall by his
report and recommendation.
Urges All TO Attend,
The tri.state delegations are composed
Of both practical and experienced hoI
growers and business men, and every
one of them Is utra.eonservatiye In his
views bs to how such corporation
should be conducted TO keep within tn,
limit Of the law, and every detail Of
the proposed organization will be gon,
into thoroughly so as to be certain OF
their ground before arriving az def
mite decision.
Saturday morning there will be !
meeting Of the mop growers Of Oregon
at the commercial club assembly room
when complete set Of bylaws will b,
submitted for amendment, rejection o
approval, and II IL expected that th
meeting will be attended by grower
from every hop growing section of III,
state. President l.. II. McMahan /
anxious that as full representation o
Oregon growers be made as possible
and he urges every grower that cal
possibly get away to come TO this meet
ing
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