Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1919-12-19
A PLAN FOR THE COOPER
ALIVE MARKETING or WHEAT
Continued On page four

CONTINUED On page tour)
10 the various member of each pool,
by grade the loan margin allowed
on the commodity by the bankers,
and particularly the members of the
Federal Reserve system.
The credit will be standardized
through this method. The associa-
tions will be able TO merchandise
wheat instead of being compelled to
dump in on the market at the low
ebb, to the advantage of the specu-
lator and the loss of the farmer.
merely because OF temporary needs
on the part of the farmer groups.
(C) No grower will become a
member of the association without
at the same time. becoming a stock
holder in the corporation.
The corporation will have pre-
ferred and common stock As a
basis for capitalization, suggest for
the purpose of getting a definite fig
ure before us, the sum of ten cents
per bushel of wheat produced in any
state in the year 1918.
II a state produced 100000
bushels, the capital of the elevator
corporation in that state would be
100000, divided into 100000
preferred stock and 100000 COM
mon stock.
On a proportionate basis, either
OF acreage or yield, the grower-mem-
Der will have to subscribe to COM
mon stock, payable in five equal
promissory notes. supported by or
ders on the association, to be deduct
ed from the proceeds of the crops
sold by him through the association;
or if no crop be so sold, then pay
able out of his personal funds.
The corporation will provide that
the amount of preferred stock to be
issued at any time must be less than
the amount of outstanding common
stock; in addition. if the laws of the
state permit, certain amount of
the common stock will be issued di-
rectly to the association in return
for the cross-contract.
These provisions will insure COM
plete control of the corporation in
all its activities, by the association,
as such, or through its identity of
members and interests. The Off
GERS and directors of the association
and corporation in each state should
be identical, wherever the laws per-
nit
CD The preferred stock will be
in ten classes. a, b, C, d, e, f, g, h,
j, and j. all bearing identical prefer
ences, including seven per cent cumu-
lative dividends, differing only in
the date of retirement each class
being subject to compulsory retire
ment annually, beginning with De-
cember 1920, or December, 1921.
at par plus a bonus of $500 per
share and accumulated dividends
This preferred stock will he sold
or issued in exchange for cash or
elevators or warehouses or such
other physical properties as the cor
poration may require
Where there are existing cooper
ative associations conducting eleyat-
ors or warehouses, there will be no
practical difficulty in making such
an exchange.
AS a matter of fact, 16 different
prune packing plants in California
were acquired from independent
packers for the Growers Packing e
Warehousing Association, Inc,
subsidiary of the California Prune
& Apricot Growers. Inc, primarily
by the issuance of preferred stock,
along the plan here indicated
Each year one class or one-tenth
OF the preferred stock will be retired,
thus reducing the amount of posi-
until, at the end of ten years. there
will be no outside capital whatso-
ever represented therein and all of
the physical value will be absorbed
into the common stock owned by
growers only.
You may wonder why a corpora
ton is formed separate from the as
ISOLATION.
AS basis for collective credit,
the association must be able to use
warehouse receipts as legal collater-
al It cannot issue the warehouse
receipts to itself on its own products
and therefore must establish the cor
poration as separate legal entity.
with power to issue warehouse re-
ceipts TO the association for the
wheat of the association.
incidentally, the corporation will
conduct a large public warehouse