The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1920-09-01
The Farmers
Cooperative Plan

In Chicago, recently, there was held
a meeting, continuing two days, of the
representatives of the leading coop
erative grain-marketing companies of
the Mississippi valley, the purpose be-
ing to unite these companies into one
marketing organization. The effort
viii be, in perfecting the plans for
this organization, it is announced, to
eliminate the middleman. Primarily,
the under taking is one in which the
public, if sufficiently credulous, might
be expected to manifest an absorbing
interest. The public has been taught
to believe that the elimination of the
middleman is greatly to be desired.
He is looked upon as one who takes,
sometimes, an unfair and an unjust
percentage of profit without benefit
ing either producer or consumer, and
recently he has been charged with re-
sponsibility for the constantly increas-
ing cost of many of the so-called nee
essary foodstuffs.
But those who are at first inclined
to applaud the efforts of the farmers
and stock men to eliminate the takers
of alleged unearned and possibly ex-
cessive profits, regarded as an unjust
tax upon producer and consumer alike,
look in vain, so far as the published
record of the proceedings OF the re-
cent Chicago conference is concerned,
for any announcement of the purpose
of the producers to cooperate with
the consumers in a plan under which
mutual benefits may be assured. That
the enjoyment of such mutual bene-
fits, both in increased returns to the
producers and in lowered costs to the
consumers, is possible, would seem to
be perfectly apparent from the argu-
ment of the producers alone. But 1t
does not appear, either theoretically
or otherwise, that it is the ambition
of the producer to place the commodl-
ties which he offers for sale in the
hands of the consumer at lower
price. Apparently, the price paid by
the consumer under compulsion OF ev-
en- a profiteering middleman, is just
about the price the farmer would ike
to receive. Anyone who has had occa-
sion to deal with the roadside vendors
of vegetables and berries, for instance
can testify that he almost invariably
been compelled to pay to the farmer
merchant the top price charged by cl-
tv dealers, even in the higher-class
markets. Thus the farmer IS willing
to collect, not only the price he would
receive for his product if it were sold
to a iobber or retailer, but in addition
the iobber's or retailers profit, nc
matter how great, as we'll as the deal
er's rightful added percentage of oV,
erhead expense including license fees
and taxes. The ultimate consumer
may be forced to the conclusion thai
the farmer seeks to eliminate the pro
fiteer, but not the system OF protlteer
| ing in its entirety.
| Even the consumer, as we'll as th'
consumer co-operatives, may perhap
be charged with practices not alto
gether altruistic. While it may be sal
that the farmer seeks to exact a max
imum profit, even when selling direct
/ ly to the consumer, it is no doubt tru
that the effort of consumer co-opera
tives is to buy where they can bu.
cheapest. Indeed, where the system
has been more thoroughly developed
it is reported that the practice ha
| been to produce many commodities Il
direct competition with the farmer
! This is, of course, as fragrant viola
ton of the fundamentals of co-opera
ton as could be charged against tn
farmers, collectively or otherwise
The conclusion must be that the RICH
basis has not been reached. Their
can be no genuine cooperation whel
there is competition. That is a plain
statement of patent fact.
There is surely to be, in the Unite,
States and elsewhere, before long,
readjustment of economic conditions
There are unmistakable indication
that this process is already well unde
way. If the effort of the farmer, b,
cooperative marketing, is only t
postpone or to delay this period o
readjustment, rather than to shar
with the ultimate consumer any posi-
BILE benefits which actual co-opera
ton might bring, he may fail to enlis
the support without which he vii
finding himself waging an unequa
battle-Christian Science Monitor.