Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1920-03-19
FALSE ALARMS

themselves are trying to deter farm
ers from signing up contracts with
the wheat growers associations by
springing all kinds of false alarms.
One of the false alarms most fire.
quently used is that the farmer is
surrendering his rights by agreeing
to deliver his wheat for six years 10
the association to be marketed by it
for him, What rights does he sur
render? The right to dump his
wheat himself as soon as it is bar
vested for whatever price the buyer
says it is worth. and the right of
holding 1t, if he guesses the market
will go higher. 1t is purely guess
work on his part, because he has no
adequate information on which to
base an opinion as to future prices.
He is working in the dark and his
guess is as likely to be wrong as
right. The association agrees to Sc
cure the best possible price for the
wheat by employing an expert sales
manager and securing for him reli-
able information regarding crop con-
ditions and the supply and demand
for wheat in all parts of the world.
Certainly no sensible man will deny
that an expert, versed in the selling
of wheat and supplied with complete
information regarding the conditions
governing the market, can handle it
TO better advantage than the indi-
vidual farmer who does not have the
benefit of such information.
Another false alarm frequently
used is that under the contract the
association could divert a very large
percent of the selling price of the
wheat to its own uses instead of
paying 1t over to the grower. This
alarm can be dispelled by the use of
a little common sense. Under the
terms of the contract the association
binds itself to pay over to the grow
er the net amounts from the sale of
the wheat of the same variety and
grade delivered by him, after de-
Quoting therefrom the costs of main
tanning the association and of trans
porting, handling, grading, storing,
selling and marketing such wheat
nf OIL
also reserves for advertising, credits
and other general commercial pur-
poses, said reserves not to exceed
one per cent of the gross resale
price" 1t is self-evident that the
growers now pay the costs of main
tanning the buying and selling or
CARNATIONS of the spectators, they
pay the cost of transporting, han
ding, grading, storing, selling and
marketing their grain. The only
other item which can be deducted
under the contract is an amount not
to exceed one per cent of the selling
price, for advertising, credits and
other general commercial purposes.
One per cent, if wheat is selling at
$500 per bushel, would mean two
cents. Does any farmer believe that
the spectators have not made a
good deal more than two cents a
bushel out of his wheat?
But" someone may argue, the
cost of maintaining the association
may be made exorbitant." Use your
common sense, The board of direct
ors will be composed of wheat grow
ers, their wheat is in the pool with
the wheat of all the other growers.
If they run the association on an ex-
travagant basis, they will suffer fin
ancially with all the members, will
impair their reputation as business
men and will lose the confidence of
their fellow farmers. Is there even
q remote possibility that IA men of
the type who will be chosen by the
wheat growers of the different sec
tions of the state to represent them
would be guilty of such folly?
Another false alarm is that by
signing up his wheat with the asso-
citation a farmer will impair his
credit at his local bank. The rec
ord in California proves the exact
contrary. There, membership in a
cooperative marketing association
has strengthened the credit Of grow
ers instead of impairing it. A large
majority of the country bankers in
this state. to whom the plan
has been explained, have heartily
endorsed 1t. Signing up one.
wheat with the association does not
prevent a grower from giving a cror
mortgage to his bank. IL he does Il
In good faith because he need,
money. He would be debarred from
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