The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1920-11-04
COOPERATIVE MARKETING

The object of this article is to
rot interest and thought along
lines of real cooperation, co-opera-
ton in a greater sense of the word
than are the present so-caled Coop
Grating marketing associations. This
discussion is based on the California
Fruit Growers Association and in
formation brought out at a conference
of Farmers Cooperative Associations
held at Chicago July 23rd and oath.
We often hear the remark: IF the
farmers could only control the price
of their wheat, then etc" with prop
er cooperation they can. This may
seem like a preposterous statement,
but it is not.
Supposing that each state organized
a wheat marketing association for
the purpose of selling their wheat,
it would have no capital stock because
it would need non as its function is
merely that of marketing the product
delivered by it's members GALL mem
bers would have to be wheat growers).
These associations could again COM
bine into a national association on the
same principle. As the success of this
movement would depend on having
the wheat to sell, the farmers would
sign a contract to market their wheat,
thru this organization, say, for a per-
iod of S years. "Well," you say, 1--WE
couldn't sign up enough wheat to con-
troll the market" The Armour Grain
Co. of Chicago which is n Of the
largest factors in making the price on
wheat controlled during their most ac-
tive year only % per cent of the wheat
handled in this country.
The average consumption of wheat
in the United States is approximately
$50, 600, 900 bushels. Of this the mills
of. the country have to grind at least
$50 million bushels. The average
wheat crop of the U. S. is approx
mately $50 million bushels. Why
couldn't the farmers thru their mar
keting association control $50 or 400
million bushels? Deducting what
would be necessary for seed would
leave about 300 or $50 million bushels
in the hands of the spectators.
The mills might refuse to deal with
you at first but before spring would
need at least another hundred million
bushels of wheat to make up the $50
millions necessary to keep them run
ming. Who would they get it from?
Now if they would finally have to
purchase a part of their wheat from
your organization and knowing that
this organization controlled a certain
per cent Of the crop for a number of
years-isn't it logical to suppose that
they would do an active business with
a concern that was in a large way Of
absolutely controlling the market
within a few years? AS the case has
proven with the California Fruit
Growers association; in 1916 .specu-
lators controlled 100 per cent of the
raisin crop. In 1919 they hardly con-
trolled II per cent and by 1923 specu-
lators in raisins will be a thing of the
past in California.
You possibly wonder how an organ
ization can be run without capital
stock. Remember this organization is
merely to market the produce. Sup
posing we had this organization in
North Dakota and every other wheat
growing state besides a national or
%ganization we would then organize
State w~arehousing Corporation with
capital stock enough to buy whatever
elevators and other warehousing ia
%cilities necessary in the State. This
corporation would buy existing eleva'
tors and put them all under one gen
eral These warehouses
would do only storing; would do NJ
selling or marketing.
Now we have on n hand the sell
ing organization and on the other hant
the Warehousing Corporation. How
about paying for the wheat if the ele
vators cannot sell it? AS you operate
the elevators you cannot have a
house receipts issued to poursef 81
thew are issued to the Association
who borrows money on them ant
makes partial payment on the whea
stored and graded. The balance is pai'
as the wheat is sold.
The present system of c~o-operativ
marketing is not truly cooperative
One farmer sells his wheat for sa!
$2.10 per bushel another at $2.15 etc
while under the other system tn
wheat would be sold in large quaint
ties by grades and ~sub-grades and tn
proceeds pro-rated, minus the hand
ling expenses. The selling Association
would pay the Warehousing Corpora
alton, say, a certain dividend on tn
stock besides handling charges an
the warehousing corporation woul
store and handle the grain under con
troll, however, Of the selling 'associa
ton. Isn't this true cooperation? VIII
should the present cooperative maj
keting associations want to get on tn
Board of Trade? The Board OF Trad
is absolutely non-essential. Instead
49, La ~nnrVrAfIn