The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-11-17
BUSINESS MUST
RULE FARMERS
COOP AGENCIES
Character of Men in Private
Business Makes Success,
Minnesotan Says
is FOR COOPERATION
g
Would Have Farmers Establish
Own Agencies and Operate
in Grain Exchanges
is FOR COOPERATION

ST. Paul, Nov. 17.--State supervision
OF marketing organizations and CO.
operative ownership of retail ageu-
fles by farmers are recommended in
a report by Hugh ]. Hughes, director
Of the Minnesota department of agri-
culture, made public today The re-
port deals with the results of an in
|estlgation by the department into
conditions affecting the marketing Of
iarm products, ordered by the 1919
legislature. ~
Cooperative ownership by the farm
ers OF the machinery of marketing. 1t
cast as far as a point where the
arm product loses its identity or
where it reached retail distribution. is
offered as the best available solution
Of the farmers marketing problem,
says the report.
D. Cooperative ownership of retail
agencies, such as grocery stores, feed
markets, milk depots and similar
places is suggested by Mr.. Hughes AS
4 practical solution Of the "unneces-
sary expenses of living. borne by the
consumer"
State supervision for the purpose
OF establishing fair barter and eX-
change is held essential. ~
Central Selling Agency
Mr. Hughes recommends that local
cooperative elevators create central
selling agency. Such agencies should
hold membership in any grain eX-
change through which they can find
I marketing outlet, continues the re-
port, and the board of directors of
the central organization should be EN-
powered to constitute itself a corpora
ton to deal in grain to comply with
rules of various boards of trades in
order to obtain memberships in them
AS an alternative plan the report sug-
gests creation Of central assOcia
ton to act independently of existin,!
grain exchanges and in connection
with like sales agencies in Other
states. .. ..sa
..4 Farmer a Middle Nan ....
! Discussing the proposition as to the
farmer becoming middle-man Mr.
Hughes writes:
"The substitution of federal coop.
Grafton for the services rendered by
the jobber or wholesaler is a mat
ter that must be determined in each
line of farm production strictly on thf
business merits of the proposition
The normal sales period of wheat was
only generation ago a little mOre
than month. Conditions today, in
Guiding car shortage and greater abi!'
ity of the farmer to finance the crop
has extended the season to practically
the entire year., 1t has been the func'
ton of the middle man to handle the
crop. This is a highly speculative
undertaking involving risks that
necessitate a somewhat wide margin
of profit to protect the buyer agains;
losses due to price fluctuation. ii
the farmer takes over this phase OF
distribution he automatically assumes
the risk inherent to the middleman
These risks can be best absorbed and
insured against by adopting the CO.
operative principle of marketing1
"a comparison of private business
and cooperative business helps tn
make clear why cooperative organ
.zations not infrequently find difficul
ties in securing needed banking as
sistance. 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 apparently on
the basis of tangible assets. % ~.
"In cooperative business the samt
essential credit requirement holds