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

a
rha wheat of the association IS
- merchandised, that is, sold to
~,lIers, brokers and others. For this
* as has been explained, experts
ri he engaged by the association.
I Is sold when and where the best
III .,oos can be obtained. At the end
III !, the year the amount received by
II ~ association for the wheat of each
u.ode is determined, and after the
socessary deductions for handling
ne crop and financing the associa-
Won are made, it is pro-rated back, to
NE growers according to the amount
..ch delivered to each specific pool.
r.eb receives the average net price
.ocured for him by the association,
.scording to the grade of the wheat
80 has delivered to it. Speculation
n therefore eliminated and the man
vho has been forced to deliver his
! cheat early to meet pressing obliga-
aims sells on even terms with the
1 man who would, under ordinary mar
4 tating conditions, be able to hold
I ,or favorable turn of the market.
4 All have had the benefit of the ex-
,art craftsmanship which the associa-
! ton has afforded.
In the article on producers CO.
oaeration, published last week, men
ton was made of the Clayton law,
which exempts non-capital organiza-
tions of growers formed for mutual
help from the provisions of the anti
trust laws. The form of organiza-
ton which has been devised to COM
4 ply with the Clayton law, at the
themselves with capital for carrying
on their business as outlined. The
wheat growers association is a good
example of this form of organization.
4 It is proposed to organize corpora
h ers Warehousing corporation. It's
\ work will be to provide facilities for
4 the physical handling of the wheat,
4 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-
Vators necessary, or the purchase OF
/ them where they are already erected
Common stock to a nominal amount
will be issued. This will carry with
it 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 its mem
bers to the corporation to be stored
an0 handled at the usual rate
charged for work of this kind.
1 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 necessary to finance the cor
pOration 1t will be in six classes
a. b, C, d, e, ~. 1t will be offered
\ 10 growers or others, and will yield
definite rate of interest. Arrange
ments will be made by which the
value OF the preferred stool, will be
guaranteed by the contracts with the
growers to deliver all their wheat to
INC association. Leading bankers
and other financial men of Spokane
nave stated that this stock will be
looked upon as gilt edge security by
financial institutions, and that there
Is no question but that it will be
readily taken up, as has been the ex-
perience with similar stock in the
nut growers organizations of Cali
iornia.
one class of the preferred stock
Will be retired annually. 1t will be
Oought in by the association out Of
me proceeds of the years business.
ViaSs "a stock, for example, will be
DOught in out of the money received
'Of the 1920 crop; enough of the
uoceeds of the crop being set aside
tOr that purpose before the final re-
'urns are made to the growers. Glass
Will be bought in from the pro-
seeus of the 1921 crop, class &C."
nOm the 1922 crop, and SO on, until
'ne SIX classes of preferred stock out
sanding have all been bought in by
Tue association.
As each class of preferred stock is
.e'ired its value goes automatically
-u'o The common stock. When it has
~ been retired the common stock of