Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1920-06-18

lmsn value OF the WHEAT
wheat of the association IS
AN merchandised, that is sold to
US brokers and others. For this
&C has been explained, experts
no engaged by the association.
old when and where the best
- can be obtained. At the end
lEho year the amount received by
.ociation for the wheat of each
.,,de is determined, and after the
.ssary deductions for handling
erop and financing the associa-
J w. are made, it is pro-rated back to
( srowers according to the amount
- delivered to each specific pool.
~ receives the average net price
1 ,red for him by the association,
ording to the grade of the wheat
has delivered to 1t. Speculation
4 .horefore eliminated and the man
~ has been forced to deliver his
| .soat early to meet pressing obliga-
,,.na sells on even terms with the
nan who would, under ordinary mar
,sting conditions, be able to hold
~ favorable turn of the market.
IAN have had the benefit of the ex-
vert salesmanship which the associa-
ion has afforded.
IN the article on producers CO.
o0eration, published last week, men
IN, was made of the Clayton law,
vbieh exempts nOn-capital organiza-
inns of growers formed for mutual
/ holn from the provisions of the anti
4 ,rust laws. The form of organiza-
noO which has been devised to COM
4 NV with the Clayton law, at the
1 same time allowing them to provide
/ themselves with capital for carrying
4 on their business as outlined. The
1 wheat growers association is a good
4 example of this form of organization.
1 II is proposed to organize a corpora
ton known as the Washington Grow
4 ers Warehousing corporation. It's
\ work will be to provide facilities for
4 tie physical handling of the wheat,
such as warehouses and elevators,
and do the actual handling. 1t will be
4 Incorporated with sufficient capital
to erect the new warehouses and ele-
Tators necessary, or the purchase OF
them where they are already erected.
Common stock to a nominal amount
will be issued. This will carry with
1t the full voting power in the cor
poration and will be issued to the
Washington Wheat Growers associa-
ton in consideration of a contract
} entered into by the association to
deliver all the wheat of it's mem
bers to the corporation to be stored
and handled at the usual rate
charged for work of this kind.
Through the common stock the asso-
cation will have absolute control
over the affairs of the corporation.
The directorates of the two bodies
will be identical
referred stock, carrying no vot-
ing power will be issued to the
/ amount napaccorv +o f;,,o,,.. IL. 49,
pOfation 1t will be in six classes
ID D. c, q, e, -. 1t will be offered
! 70 growers or others, and will yield
&aeflnlte rate of interest. Arrange
ments will be made by which the
'@ue OF the preferred stock will be
guaranteed by the contracts with the
growers to deliver all their wheat to
'ne association. Leading bankers
ana other financial men of Spokane
nave stated that this stock will be
.OOAeu upon as gilt edge security by
,uanclal institutions, and that there
no question but that it will be
''auiiy taken up, as has been the ex-
erlence with similar stock in the
auit growers organizations of Cali
fornia.
one class of the preferred stock
'nl De retired annually. 1t will be
sOusnt IN by the association out Of
'le proceeds of the years business.
V'aSs a. stock, for example, will be
.0ught in out of the money received
" the 1920 crop; enough of the
nOCeeds of the crop being set aside
" mat purpose before the final re-
aus are made to the growers Glass
VIII be bought in from the pro-
Ssos of the 1921 crop, class &C."
aOm the 1922 crop, and SO on, until
OK classes of preferred stock out
q Auing have all been bought in by
'le association.
as each class of preferred stock is
eu Its value goes automatically
~ o The common stock. When it has
- Oeen retired the common stock of
'"V cOrDOrn tiop u,h;aL 4; II tuI5 L.,