The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-02-18

CHICAGO, Feb. 18.-Millions Of
American farmers will market their
grain through national sales agency,
according to skeleton plans announced
last night by the sfarmers' grain mar
keting ccmmitteeof seventeen now in
session atgKansassCity. AThe public 10,
being considered In the building Of the
new distributing machine, which is
designed to cut the price of bread, re-
move waste between the farmer and
consumer, and eliminate speculation.
The national sales agency will COM
prise hundreds of thousands OF grain
growers, who will agree to market
their grain exclusively through the
new system. Growers Of all organize
tions will be eligible 10 membership.
The central idea 10 that the farmer.
shall control and manage the machin-t
cry Of Distribution sslsrsSa, II
scoop" Elevators Ready.
Elevator facilities now IN existence
will be used; nothing will be junked or
discarded. An attempt will be made
to convert all into cooperative insti-
tutions and wherever it is necessary
new ones will be built. Many cooper
ative elevators owned by farmers are
ready for use. &. -.--.~i,.z. s,..e
"io"OiS VIM Jolh CAC SttCS d6CnSy
will go into contract with the local CO
operative elevator association to sell
grain according to the new plan.
The farmer will have the option of
selling his grain through a pooling
system or on consignment. Where the
grain is pooled it will be transported
to a national warehouse and later dis
posed OF, and. each man will get his
share according to the quantity and
grade of his grain. This is the Cali
fornia cooperative plan. now being
successfully operated by the prune and
orange growers. Where the grain is
sold on consignment. the farmer will
be paid cash at the local elevator, the
amount being. based on the market
price. 49, a
Seek Exchange Seats.
The national sales agency will dis
pose of the grain with its own facili-
ties. To do this. the cooperative farm
er believes it will be necessary for
him to hold seat on the various grain
exchanges, whether he wishes to use
it or not. AS now constituted, how
ever, he is not eligible to a seat. Bills
are before the legislatures of Mis-
souri, and Minnesota and will soon be
introduced in Illinois and other states
to permit farmers cooperative mar
keting organizations to hold seats 0a
the boards of trade.
At present the laws forbid any CON-
mission firms which give rebates"
from holding seats on grain eX-
changes. 1t is the practice of coop
erative companies to refund all sur
plus profits, over the cost of opera
ton, to customers on the basis of the
amount of business done. Technical
ly, this is called rebate. Besides this
legal restriction there is great hostil'
ity to cooperative firms on the part
of the old line firms. The cause for
this was very frankly stated by Presi-
dent Gates, Of the Chicago board of
trade, when, questioned why the board
Of trade would not admit a .co-opera-
tive commission firm, he replied, Be
cause it would soon have all the bus
mess"
Solve Difficulties.
Indiana farmers have not had the
same opposition in selling their grain
through their own agency at Indianap-
oils, and have solved their difficulties
by purchasing commission firm
which works for them. On account of
the law, it can not be cooperative,
but it is able to secure much better
prices and already has a large per
centage of the business, being the
selling agent for cooperative eleva-
tors of Indiana This firm has found
hostility among the other firms, but
with the volume of grain handled,
found itself able to ignore that atti-
tude.
The new plan provides for farmer
control of the warehouses at the great
terminal markets. The grain will be
graded in government licensed ware
houses. By issuing warehouse re-
ceipts, which will be the basis of credit
money can be borrowed on the grain.
Instead of the grain growers products
being dumped onto the market within
q short period, it will be possible to
distribute 1t over longer period.
Plan Finance Corporation.
a finance corporation will be set up
in order that farmers may provide
their own adequate credit for the fin
ancing of their crop through local
elevators. In addition an export cor