Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1920-11-18
COOPERATION in
MARKETING FARM
PRODUCE ADVISED
Hugh. J. Hughes, Director Of
MINI. Agriculture, Also
Advocates State Supervis-
ion Of Marketing Enterpris~
II.

sion of marking organizations ana
cooperative ownership of retail
agencies by farmers are recommend
ed in report by Hugh J. Hughes,
director of the Minnesota depart
ment of agriculture, made public to-
day. The report deals with the re-
suits of an investigation by the de-
partment into conditions affecting
the marketing of farm products, or
dered by the 1919 legislature.
Cooperative ownership by the
farmers of the machinery of mar
keting, at least as far as point
where the farm products loses its
identity or where it reaches retail
distribution, is offered as the best
available solution Of the farmers
marketing problem, says the report.
Cooperative ownership of retail
agencies such as grocery stores,
meat markets, milk depots and sim
liar places is suggested by Mr..
Hughes as practical solution OF the
unnecessary expenses Of living
borne by the consumer."
State supervision for the purpose
of establishment for barter and ex-
change is held essential.
0dr. Hughes recommends that To-
cal cooperative elevators create O
central selling agency. Such agen-
cies would hold membership In any
grain exchange to which they can
find q marketing outlet, continues
the report. and the board of direc-
tors OF ,. the central organization
should be empowered to constitute
itself corporation to deal in grain
to comply with rules of various
boards Of trade, In order to obtain
membership in them. AS an alter
native plan the report suggests crea-
ton Of a central association, to act
in dependently OF existing grain ex-
changes and in connection with like
sale agencies in other states.
Discussing the proposition as to
the farmer becoming q middle man,
Mr.. Hughes writes: =
'aThe substitution of federated CO.
operation for services rendered by
the 1obber or wholesaler is matter
that must be determined in each
line OF farm production, strictly on
the huslness merits, Of the proposi-
ton. The normal sales period OF
wheat was only a generation ago but
little more than a month. Condt'
tions today, including car shortage
and greater ability of the farmer to
finance his crop, have spread this
period of wheat sale to practically
the entire year. 1t has been the
function of the middle man to hand
le tho crop. This is highly specu-
lhtive undertaking involving risk
that necessitates q somewhat wide
margin of profit, to protect the buy
or against losses due to price fluc-
tuations. II the farmer takes over
this phase of distribution he auto
matically assumes the risk inherent
to the middle man. These risks can
be best absorbed and insured again
ct by adopting the cooperative pria'
ciple of marketing.
"a comparison of private business
and cooperative business helps to
make clear why cooperative organ
ixatio6s not infrequently find diff
Guilty in securing needed banking
assistance. In private business the
basis of credit is the character OF
the individual and the performance
Of his business, his tangible assets
and his volume. The bank loans ap-
perently on the basis of tangible as
sets. In cooperative business the
aamo eaSontial reuuirementS hold"